Goodwill and Other Intangibles

6 Months Ended

Jun. 03, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill as of June 3, 2022 and December 3, 2021 was $12.80 billion and $12.67 billion, respectively. The increase was primarily due to the completion of business acquisitions during the six months ended June 3, 2022.

During the second quarter of fiscal 2022, we completed our annual goodwill impairment test associated with our reporting units and determined there was no impairment of goodwill. 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.

Other intangible assets subject to amortization as of June 3, 2022 and December 3, 2021 were as follows:


(in millions)	2022						2021
	Gross Carrying Amount		Accumulated Amortization		Net		Gross Carrying Amount		Accumulated Amortization		Net
Customer contracts and relationships	$	1,205	$	(434)	$	771	$	1,213	$	(379)	$	834
Purchased technology	1,074		(438)		636		1,053		(344)		709
Trademarks	376		(150)		226		376		(128)		248


Other	60		(43)		17		60		(31)		29
Other intangibles, net	$	2,715	$	(1,065)	$	1,650	$	2,702	$	(882)	$	1,820

Amortization expense related to other intangibles was $101 million and $202 million for the three and six months ended June 3, 2022, respectively. Comparatively, amortization expense related to other intangibles was $88 million and $178 million for the three and six months ended June 4, 2021, respectively. Of these amounts, $59 million and $118 million were included in cost of revenue for the three and six months ended June 3, 2022, respectively, and $44 million and $89 million were included in cost of revenue for the three and six months ended June 4, 2021, respectively.

As of June 3, 2022, the estimated aggregate amortization expense in future periods was as follows:


(in millions)	Other Intangibles (1)
Remainder of 2022	$	203
2023	376
2024	331
2025	293
2026	142
Thereafter	286
Total expected amortization expense	$	1,631

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(1)Excludes capitalized in-process research and development which is considered indefinite lived until the completion or abandonment of the associated research and development efforts.