Goodwill, Capitalized Software and Other Intangible Assets

3 Months Ended

Jun. 30, 2011

Goodwill, Capitalized Software and Other Intangible Assets [Abstract]

GOODWILL, CAPITALIZED SOFTWARE AND OTHER INTANGIBLE ASSETS

NOTE G — GOODWILL, CAPITALIZED SOFTWARE AND OTHER INTANGIBLE ASSETS

The gross carrying amounts and accumulated amortization for capitalized software and other intangible assets at June 30, 2011 were approximately $7,471 million and $6,196 million, respectively. These amounts include fully amortized intangible assets of approximately $5,592 million, which was composed of purchased software of approximately $4,662 million, internally developed software of approximately $527 million and other identified intangible assets subject to amortization of approximately $403 million. The gross carrying amounts and accumulated amortization for identified intangible assets that were not fully amortized were as follows:


	At June 30, 2011
	Gross
	Amortizable		Accumulated		Net
	Assets		Amortization		Assets
			(in millions)
Purchased software products	$	770	$	221	$	549
Capitalized development cost and other intangibles:
Internally developed software products		715		207		508
Other identified intangible assets subject to amortization		394		176		218

Total capitalized software and other intangible assets	$	1,879	$	604	$	1,275

The gross carrying amounts and accumulated amortization for capitalized software and other intangible assets at March 31, 2011 were approximately $7,417 million and $6,133 million, respectively. These amounts included fully amortized assets of approximately $5,290 million, which was composed of purchased software of approximately $4,662 million, internally developed software products of approximately $508 million and other intangible assets subject to amortization of approximately $120 million. The gross carrying amounts and accumulated amortization for identified intangible assets that were not fully amortized were as follows:


	At March 31, 2011
	Gross
	Amortizable		Accumulated		Net
	Assets		Amortization		Assets
			(in millions)
Purchased software products	$	768	$	198	$	570
Capitalized development cost and other intangibles:
Internally developed software products		693		205		488
Other intangible assets subject to amortization		652		440		212
Other intangible assets not subject to amortization		14		—		14

Total capitalized software costs and other intangible assets	$	2,127	$	843	$	1,284

Based on the capitalized software and other intangible assets recorded through June 30, 2011, the annual amortization expense over the next five fiscal years is expected to be as follows:


	Year Ended March 31,
	2012		2013		2014		2015		2016
	(in millions)
Capitalized software:
Purchased	$	85	$	78	$	70	$	59	$	57
Internally developed		117		130		112		87		56
Other identified intangible assets subject to amortization		63		51		45		38		24

Total	$	265	$	259	$	227	$	184	$	137

Goodwill activity for the first quarter of fiscal year 2012 was as follows:


	Amounts
	(in millions)
Balance at March 31, 2011	$	5,688
Revisions to purchase price allocation of prior year acquisitions		(3	)

Balance at March 31, 2011 as revised		5,685
Amounts allocated to loss on discontinued operations		(7	)
Acquisitions		16
Foreign currency translation adjustment		1

Balance at June 30, 2011	$	5,695

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

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