Goodwill And Acquisition-Related Intangibles, Net

3 Months Ended

Sep. 30, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill And Acquisition-Related Intangibles, Net

(6) GOODWILL AND ACQUISITION-RELATED INTANGIBLES, NET

The changes in the carrying amount of goodwill for the six months ended September 30, 2022 are as follows (in millions):


	As of March 31, 2022		Activity		Effects of Foreign Currency Translation		As of September 30, 2022
Goodwill	$	5,755	$	—	$	(12)	$	5,743
Accumulated impairment	(368)		—		—		(368)
Total	$	5,387	$	—	$	(12)	$	5,375

Acquisition-related intangibles consisted of the following (in millions):


	As of September 30, 2022						As of March 31, 2022
	Gross Carrying Amount		Accumulated Amortization		Acquisition- Related Intangibles, Net		Gross Carrying Amount		Accumulated Amortization		Acquisition- Related Intangibles, Net
Finite-lived acquisition-related intangibles
Developed and core technology	$	1,090	$	(720)	$	370	$	1,102	$	(643)	$	459
Trade names and trademarks	603		(255)		348		609		(212)		397
Registered user base and other intangibles	56		(43)		13		56		(30)		26

Total finite-lived acquisition-related intangibles	$	1,749	$	(1,018)	$	731	$	1,767	$	(885)	$	882
Indefinite-lived acquisition-related intangibles
In-process research and development	$	80	$	—	$	80	$	80	$	—	$	80
Total acquisition-related intangibles, net	$	1,829	$	(1,018)	$	811	$	1,847	$	(885)	$	962

Amortization of intangibles, including impairments for the three and six months ended September 30, 2022 and 2021 are classified in the Condensed Consolidated Statements of Operations as follows (in millions):


	Three Months Ended September 30,				Six Months Ended September 30,
	2022		2021		2022		2021
Cost of revenue	$	39	$	22	$	69	$	44
Operating expenses	43		30		82		70
Total	$	82	$	52	$	151	$	114

During the three months ended September 30, 2022, we recorded an $18 million impairment charge for acquisition-related intangible assets, of which $12 million was recorded within cost of revenue and $6 million was recorded in operating expenses.

During the six months ended September 30, 2021, we recorded a $12 million impairment charge for acquisition-related intangible assets within operating expenses.

Acquisition-related intangible assets are generally amortized using the straight-line method over the lesser of their estimated useful lives or the agreement terms, currently ranging from 1 to 7 years. As of September 30, 2022 and March 31, 2022, the weighted-average remaining useful life for acquisition-related intangible assets was approximately 5.0 and 5.2 years, respectively.

As of September 30, 2022, future amortization of finite-lived acquisition-related intangibles that will be recorded in the Condensed Consolidated Statements of Operations is estimated as follows (in millions):


Fiscal Year Ending March 31,
2023 (remaining six months)	$	111
2024	156
2025	122
2026	118
2027	99
2028	96
2029 and thereafter	29
Total	$	731