Note 6 — Long-Lived Assets

Property and Equipment: A summary of property and equipment is as follows:



	At March 31.
(in millions)	2013			2012
Land and buildings	$	210		$	224
Equipment, software developed for internal use, furniture and leasehold improvements	887			869
	1,097			1,093
Accumulated depreciation and amortization	(786		)	(707		)
Property and equipment, net	$	311		$	386

Capitalized Software and Other Intangible Assets: The gross carrying amounts and accumulated amortization for capitalized software and other intangible assets at March 31, 2013 were as follows:



	At March 31, 2013
(in millions)	Gross Amortizable Assets		Less: Fully Amortized Assets		Remaining Amortizable Assets		Accumulated Amortization on Remaining Amortizable Assets		Net Assets
Purchased software products	$	5,597	$	4,735	$	862	$	309	$	553
Internally developed software products	1,528		661		867		327		540
Other intangible assets	816		429		387		249		138
Total capitalized software and other intangible assets	$	7,941	$	5,825	$	2,116	$	885	$	1,231

The gross carrying amounts and accumulated amortization for capitalized software and other intangible assets at March 31, 2012 were as follows:



	At March 31, 2012
(in millions)	Gross Amortizable Assets		Less: Fully Amortized Assets		Remaining Amortizable Assets		Accumulated Amortization on Remaining Amortizable Assets		Net Assets
Purchased software products	$	5,628	$	4,733	$	895	$	228	$	667
Internally developed software products	1,366		574		792		258		534
Other intangible assets	814		412		402		214		188
Total capitalized software and other intangible assets	$	7,808	$	5,719	$	2,089	$	700	$	1,389

In the fourth quarter of fiscal 2013, the Company recorded an impairment of $55 million relating to purchased software products within the Enterprise Solutions segment. This impairment was determined through the use of the discounted cash flow model and reflects lower expectations about future cash flows to be generated from these assets. The impairment is included in “Amortization of capitalized software costs” in the Consolidated Statement of Operations. Amortization of capitalized software costs is not included in segment expenses (see Note 17, “Segment and Geographic Information,” for additional information). No impairments for purchased software products were recorded during fiscal years 2012 and 2011.

During fiscal years 2013 and 2012, the Company recorded impairments of approximately $3 million and $9 million, respectively, for internally developed software products. No impairment was recorded for internally developed software products during fiscal year 2011.

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 is as follows:



	Year Ended March 31,
(in millions)	2013		2012		2011
Depreciation	$	104	$	111	$	114
Amortization of purchased software products	163		103		88
Amortization of internally developed software products	156		122		104
Amortization of other intangible assets	54		65		73
Total	$	477	$	401	$	379

Based on the capitalized software and other intangible assets recognized at March 31, 2013, the annual amortization expense over the next five fiscal years is expected to be as follows:



	Year Ended March 31,
(in millions)	2014		2015		2016		2017		2018
Purchased software products	$	100	$	89	$	88	$	86	$	83
Internally developed software products	164		144		113		80		33
Other intangible assets	49		41		27		10		5
Total	$	313	$	274	$	228	$	176	$	121

Goodwill: The accumulated goodwill impairment losses previously recognized by the Company totaled approximately $111 million at March 31, 2013 and 2012. These losses were recognized in fiscal years 2003 and 2002. There were no impairments recognized for fiscal years 2013, 2012 and 2011.

Goodwill activity for fiscal years 2013 and 2012 was as follows:



	At March 31,
(in millions)	2013			2012
Balance at beginning of year	$	5,856		5,686
Amounts allocated to loss on discontinued operations	—			(7	)
Acquisitions	17			179
Foreign currency translation adjustment	(2		)	(2	)
Balance at end of year	$	5,871		5,856