Goodwill and Other Intangibles

9 Months Ended

Sep. 03, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill as of September 3, 2021 and November 27, 2020 was $11.84 billion and $10.74 billion, respectively. The increase was primarily due to our acquisition of Workfront in the first quarter of fiscal 2021. We continually monitor events and changes in circumstances that could indicate that the fair value of any one of our reporting units may more likely than not have fallen below its respective carrying amount. We have not identified any such events or changes in circumstances since the performance of our annual goodwill impairment test during the second quarter of fiscal 2021 that would require us to perform another goodwill impairment test.

Other intangible assets subject to amortization as of September 3, 2021 and November 27, 2020 were as follows:


(in millions)	2021						2020
	Gross Carrying Amount		Accumulated Amortization		Net		Gross Carrying Amount		Accumulated Amortization		Net
Customer contracts and relationships	$	1,233	$	(370)	$	863	$	958	$	(289)	$	669
Purchased technology	730		(326)		404		756		(347)		409
Trademarks	372		(116)		256		384		(122)		262


Other	60		(26)		34		84		(65)		19
Other intangibles, net	$	2,395	$	(838)	$	1,557	$	2,182	$	(823)	$	1,359

During the nine months ended September 3, 2021, other intangibles increased primarily due to identifiable intangible assets acquired through Workfront, partially offset by certain other intangibles associated with our previous acquisitions that became fully amortized and were removed from the condensed consolidated balance sheets.

Amortization expense related to other intangibles was $83 million and $262 million for the three and nine months ended September 3, 2021, respectively. Comparatively, amortization expense related to other intangible assets was $92 million and $281 million for the three and nine months ended August 28, 2020, respectively. Of these amounts, $40 million and $130 million were included in cost of revenue for the three and nine months ended September 3, 2021, respectively, and $51 million and $158 million were included in cost of revenue for the three and nine months ended August 28, 2020, respectively.

As of September 3, 2021, we expect amortization expense in future periods to be as follows:


(in millions)	Other Intangibles
Remainder of 2021	$	82
2022	313
2023	282
2024	238
2025	216
Thereafter	426
Total expected amortization expense	$	1,557