Note 6 — Long-Lived Assets

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



	At March 31.
(in millions)	2014			2013
Land and buildings	$	222		$	210
Equipment, software developed for internal use, furniture and leasehold improvements	901			887
	1,123			1,097
Accumulated depreciation and amortization	(828		)	(786		)
Property and equipment, net	$	295		$	311

Capitalized Software and Other Intangible Assets: 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
(in millions)	Gross Amortizable Assets		Less: Fully Amortized Assets		Remaining Amortizable Assets		Accumulated Amortization on Remaining Amortizable Assets		Net 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

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	$	5,604	$	4,735	$	869	$	309	$	560
Internally developed software products	1,528		661		867		327		540
Other intangible assets	820		429		391		249		142
Total capitalized software and other intangible assets	$	7,952	$	5,825	$	2,127	$	885	$	1,242

In the fourth quarter of fiscal year 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 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). No impairments for purchased software products were recorded during fiscal years 2014 or 2012.

During fiscal years 2014, 2013 and 2012, the Company recorded impairments of approximately $7 million, $3 million and $9 million, respectively, for 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)	2014		2013		2012
Depreciation	$	84	$	104	$	111
Amortization of purchased software products	117		163		103
Amortization of internally developed software products	165		154		120
Amortization of other intangible assets	60		54		65
Total depreciation and amortization expense	$	426	$	475	$	399

Based on the capitalized software and other intangible assets recognized at March 31, 2014, the annual amortization expense over the next five fiscal years is expected to be as follows:



	Year Ended March 31,
(in millions)	2015		2016		2017		2018		2019
Purchased software products	$	113	$	111	$	108	$	105	$	62
Internally developed software products	150		118		85		40		11
Other intangible assets	53		34		11		5		1
Total	$	316	$	263	$	204	$	150	$	74

Goodwill: The accumulated goodwill impairment losses previously recognized by the Company totaled approximately $111 million at March 31, 2014 and 2013. These losses were recognized in fiscal years 2003 and 2002. There were no impairments recognized in fiscal years 2014, 2013 and 2012.

Goodwill activity by segment for fiscal years 2014 and 2013 was as follows:



(in millions)	Mainframe Solutions			Enterprise Solutions			Services		Total
Balance at March 31, 2012	$	4,179		$	1,596		$	81	$	5,856
Acquisitions	—			10			—		10
Foreign currency translation adjustment	(1		)	(1		)	—		(2		)
Balance at March 31, 2013	$	4,178		$	1,605		$	81	$	5,864
Acquisitions	—			55			—		55
Foreign currency translation adjustment	—			3			—		3
Balance at March 31, 2014	$	4,178		$	1,663		$	81	$	5,922