Computer Associates 2015 Annual Report Download - page 80

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The gross carrying amounts and accumulated amortization for capitalized software and other intangible assets at March 31,
2014 were as follows:
AT MARCH 31, 2014
ACCUMULATED
LESS: AMORTIZATION
GROSS FULLY REMAINING ON REMAINING
AMORTIZABLE AMORTIZED AMORTIZABLE AMORTIZABLE NET
(in millions) ASSETS ASSETS ASSETS ASSETS ASSETS
Purchased software products $ 5,706 $ 4,849 $ 857 $ 309 $ 548
Internally developed software products 1,561 757 804 397 407
Other intangible assets 846 489 357 249 108
Total capitalized software and other intangible assets $ 8,113 $ 6,095 $ 2,018 $ 955 $ 1,063
During fiscal year 2015, the Company recorded impairments of approximately $21 million within the Enterprise Solutions
segment relating to internally developed software products and purchased software products of approximately $9 million and
$12 million, respectively. These impairments were a result of the Company’s continued effort to rationalize its product
portfolio. The impairments were included in ‘‘Amortization of capitalized software costs’’ in the Consolidated Statement of
Operations for fiscal year 2015. Amortization of capitalized software costs was not included in segment expenses (see
Note 17, ‘‘Segment and Geographic Information,’’ for additional information).
During fiscal year 2014, the Company recorded an impairment of approximately $6 million within the Enterprise Solutions
segment relating to internally developed software products. No impairments for purchased software products were recorded
during fiscal year 2014.
During fiscal year 2013, the Company recorded an impairment of $55 million within the Enterprise Solutions segment
relating to purchased software products. This impairment was determined through the use of the discounted cash flow
model and reflected lower expectations about future cash flows to be generated from these assets. The impairment was
included in ‘‘Amortization of capitalized software costs’’ in the Consolidated Statement of Operations for fiscal year 2013.
Amortization of capitalized software costs was not included in segment expenses (see Note 17, ‘‘Segment and Geographic
Information,’’ for additional information). During fiscal year 2013, the Company recorded an impairment of approximately
$2 million within the Enterprise Solutions segment relating to internally developed software products.
The Company evaluates the useful lives and recoverability of capitalized software and other intangible assets when events or
changes in circumstances indicate that an impairment may exist. These evaluations require complex assumptions about key
factors such as future customer demand, technology trends and the impact of those factors on the technology the Company
acquires and develops for its products. Impairments or revisions to useful lives could result from the use of alternative
assumptions that reflect reasonably possible outcomes related to future customer demand or technology trends for assets
within the Enterprise Solutions segment.
Depreciation and Amortization Expense: A summary of depreciation and amortization expense was as follows:
YEAR ENDED MARCH 31,
(in millions) 2015 2014 2013
Depreciation $ 71 $ 84 $ 104
Amortization of purchased software products 124 116 162
Amortization of internally developed software products 149 155 143
Amortization of other intangible assets 58 60 54
Total depreciation and amortization expense $ 402 $ 415 $ 463
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