Goodwill And Acquisition-Related Intangibles, Net

12 Months Ended

Mar. 31, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill And Acquisition-Related Intangibles, Net

GOODWILL AND ACQUISITION-RELATED INTANGIBLES, NET

The changes in the carrying amount of goodwill for the fiscal year ended March 31, 2023 are as follows (in millions):


	As of March 31, 2022		Activity		Effects of Foreign Currency Translation		As of March 31, 2023
Goodwill	$	5,755	$	—	$	(7)	$	5,748
Accumulated impairment	(368)		—		—		(368)
Total	$	5,387	$	—	$	(7)	$	5,380

The changes in the carrying amount of goodwill for the fiscal year ended March 31, 2022 are as follows (in millions):


	As of March 31, 2021		Activity		Effects of Foreign Currency Translation		As of March 31, 2022
Goodwill	$	3,236	$	2,519	$	—	$	5,755
Accumulated impairment	(368)		—		—		(368)
Total	$	2,868	$	2,519	$	—	$	5,387

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


	As of March 31, 2023						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	$	1,051	$	(754)	$	297	$	1,102	$	(643)	$	459
Trade names and trademarks	596		(285)		311		609		(212)		397
Registered user base and other intangibles	56		(50)		6		56		(30)		26

Total finite-lived acquisition-related intangibles	$	1,703	$	(1,089)	$	614	$	1,767	$	(885)	$	882
Indefinite-lived acquisition-related intangibles
In-process research and development	$	4	$	—	$	4	$	80	$	—	$	80
Total acquisition-related intangibles, net	$	1,707	$	(1,089)	$	618	$	1,847	$	(885)	$	962

Amortization of intangibles, including impairments, for the fiscal years ended March 31, 2023, 2022 and 2021 are classified in the Consolidated Statements of Operations as follows (in millions):


	Year Ended March 31,
	2023		2022		2021
Cost of revenue	$	120	$	133	$	4

Operating expenses	158		183		30
Restructuring	66		—		—
Total	$	344	$	316	$	34

During fiscal year 2023, we recorded impairment charges of $106 million for acquisition-related intangible assets, of which $66 million was recorded within restructuring, $28 million was recorded within operating expenses, and $12 million was recorded within cost of revenue. See Note 8 — Restructuring Activities for additional information on the impairment charge related to our 2023 Restructuring Plan.

During fiscal year 2022, we recorded impairment charges of $45 million for acquisition-related intangible assets, of which $34 million was recorded within operating expenses and $11 million was recorded within cost of revenue. During fiscal year 2021, there were no impairment charges for acquisition-related intangible assets.

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 2 to 7 years. As of March 31, 2023 and 2022, the weighted-average remaining useful life for acquisition-related intangible assets was approximately 4.8 and 5.2 years years, respectively.

As of March 31, 2023, future amortization of finite-lived acquisition-related intangibles that will be recorded in the Consolidated Statements of Operations is estimated as follows (in millions):


Fiscal Year Ending March 31,
2024	$	150
2025	122
2026	118
2027	99
2028	96
Thereafter	29
Total	$	614