Note 6 — Long-Lived Assets

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



	At March 31.
(in millions)	2017			2016
Land and buildings	$	172		$	188
Equipment, software developed for internal use, furniture and leasehold improvements	906			886
Total property and equipment	$	1,078		$	1,074
Accumulated depreciation and amortization	(841		)	(832		)
Property and equipment, net	$	237		$	242

Capitalized Software and Other Intangible Assets: The gross carrying amounts and accumulated amortization for capitalized software and other intangible assets at March 31, 2017 were as follows:



	At March 31, 2017
(in millions)	Gross Amortizable Assets		Less: Fully Amortized Assets		Remaining Amortizable Assets		Accumulated Amortization on Remaining Amortizable Assets		Net Assets
Purchased software products	$	6,496	$	4,914	$	1,582	$	667	$	915
Internally developed software products	1,467		1,029		438		391		47
Other intangible assets	1,193		812		381		36		345
Total capitalized software and other intangible assets	$	9,156	$	6,755	$	2,401	$	1,094	$	1,307

The gross carrying amounts and accumulated amortization for capitalized software and other intangible assets at March 31, 2016 were as follows:



	At March 31, 2016
(in millions)	Gross Amortizable Assets		Less: Fully Amortized Assets		Remaining Amortizable Assets		Accumulated Amortization on Remaining Amortizable Assets		Net Assets
Purchased software products	$	5,990	$	4,865	$	1,125	$	552	$	573
Internally developed software products	1,467		1,009		458		333		125
Other intangible assets	927		728		199		102		97
Total capitalized software and other intangible assets	$	8,384	$	6,602	$	1,782	$	987	$	795

There were no impairments recorded for internally developed software products or purchased software products during fiscal year 2017.

During fiscal year 2016, the Company recorded impairments of approximately $3 million within the Enterprise Solutions segment relating to purchased software products. 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 2016. Amortization of capitalized software costs was not included in segment expenses (refer to Note 17, “Segment and Geographic Information,” for additional information). There were no impairments recorded for internally developed software products during fiscal year 2016.

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.

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)	2017		2016		2015
Depreciation	$	58	$	62	$	71
Amortization of purchased software products	164		146		124
Amortization of internally developed software products	79		110		149
Amortization of other intangible assets	19		44		58
Total depreciation and amortization expense	$	320	$	362	$	402

Based on the capitalized software and other intangible assets recognized at March 31, 2017, the annual amortization expense over the next five fiscal years is expected to be as follows:



	Year Ended March 31,
(in millions)	2018		2019		2020		2021		2022
Purchased software products	$	219	$	178	$	149	$	107	$	99
Internally developed software products	37		9		1		—		—
Other intangible assets	40		39		35		35		35
Total	$	296	$	226	$	185	$	142	$	134

Goodwill: The accumulated goodwill impairment losses previously recognized by the Company totaled approximately $111 million at March 31, 2017 and 2016. These losses were recognized in fiscal years 2003 and 2002. There were no impairments recognized in fiscal years 2017, 2016 and 2015.

Goodwill activity by segment for fiscal years 2017 and 2016 was as follows:



(in millions)	Mainframe Solutions		Enterprise Solutions			Services		Total
Balance at March 31, 2015	$	4,178	$	1,547		$	81	$	5,806
Acquisitions	—		316			—		316
Divestitures	—		(36		)	—		(36		)
Balance at March 31, 2016	$	4,178	$	1,827		$	81	$	6,086
Acquisitions	—		771			—		771
Balance at March 31, 2017	$	4,178	$	2,598		$	81	$	6,857