Note 5 — Long-Lived Assets

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



	At March 31.
(in millions)	2018			2017
Land and buildings	$	190		$	172
Equipment, software developed for internal use, furniture and leasehold improvements	912			906
Total property and equipment	$	1,102		$	1,078
Accumulated depreciation	(865		)	(841		)
Property and equipment, net	$	237		$	237

Capitalized Software and Other Intangible Assets: The gross carrying amounts and accumulated amortization for capitalized software and other intangible assets at March 31, 2018 were as follows:



	At March 31, 2018
(in millions)	Gross Amortizable Assets		Less: Fully Amortized Assets		Remaining Amortizable Assets		Accumulated Amortization on Remaining Amortizable Assets		Net Assets
Purchased software products	$	6,572	$	4,961	$	1,611	$	845	$	766
Internally developed software products	1,467		1,347		120		109		11
Other intangible assets	1,226		823		403		69		334
Total capitalized software and other intangible assets	$	9,265	$	7,131	$	2,134	$	1,023	$	1,111

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

There were no impairments recorded for internally developed software products or purchased software products during fiscal years 2018 and 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 16, “Segment and Geographic Information,” for additional information). There were no impairments recorded for internally developed software products during fiscal year 2016.

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)	2018		2017		2016
Depreciation	$	66	$	58	$	62
Amortization of purchased software products	235		164		146
Amortization of internally developed software products	36		79		110
Amortization of other intangible assets	41		19		44
Total depreciation and amortization expense	$	378	$	320	$	362

Based on the capitalized software and other intangible assets recognized at March 31, 2018, the annual amortization expense over the next five fiscal years is expected to be as follows:



	Year Ended March 31,
(in millions)	2019		2020		2021		2022		2023
Purchased software products	$	186	$	163	$	119	$	110	$	83
Internally developed software products	9		2		—		—		—
Other intangible assets	41		37		37		36		32
Total	$	236	$	202	$	156	$	146	$	115

Goodwill: The accumulated goodwill impairment losses previously recognized by the Company totaled approximately $111 million at March 31, 2018 and 2017. These losses were recognized in fiscal years 2003 and 2002. There were no impairments recognized in fiscal years 2018, 2017 and 2016.

Goodwill activity by segment for fiscal years 2018 and 2017 was as follows:



(in millions)	Mainframe Solutions		Enterprise Solutions			Services		Total
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
Acquisitions ⁽¹⁾	—		(105		)	—		(105		)
Foreign currency translation adjustment	—		52			—		52
Balance at March 31, 2018	$	4,178	$	2,545		$	81	$	6,804


(1)	Acquisitions amount relates to purchase price allocation adjustments that occurred during fiscal year 2018.