Goodwill and Purchased Intangible Assets, Net

9 Months Ended

Jan. 25, 2019

Goodwill And Intangible Assets Disclosure [Abstract]

Goodwill and Purchased Intangible Assets, Net

3. Goodwill and Purchased Intangible Assets, Net

Goodwill activity is summarized as follows (in millions):

Balance as of April 27, 2018	$	1,739
Additions		3
Balance as of January 25, 2019	$	1,742

On September 17, 2018, we acquired all of the outstanding shares of a privately-held software company for $3 million in cash. Substantially all of the purchase price was recorded to goodwill.

Purchased intangible assets, net are summarized below (in millions):

	January 25, 2019							April 27, 2018
	Gross		Accumulated			Net		Gross		Accumulated			Net
	Assets		Amortization			Assets		Assets		Amortization			Assets
Developed technology	$	160	$	(104	)	$	56	$	164	$	(80	)	$	84
Customer contracts/relationships		41		(41	)		—		43		(33	)		10
Other purchased intangibles		—		—			—		9		(9	)		—
Total purchased intangible assets	$	201	$	(145	)	$	56	$	216	$	(122	)	$	94

Amortization expense for purchased intangible assets is summarized below (in millions):

	Three Months Ended				Nine Months Ended				Statements of
	January 25, 2019		January 26, 2018		January 25, 2019		January 26, 2018		Operations Classification
Developed technology	$	10	$	10	$	28	$	27	Cost of revenues
Customer contracts/relationships		3		3		10		11	Operating expenses
Other purchased intangibles		—		1		—		3	Operating expenses
Total	$	13	$	14	$	38	$	41

As of January 25, 2019, future amortization expense related to purchased intangible assets is as follows (in millions):

Fiscal Year	Amount
Remainder of 2019	$	9
2020		31
2021		16
Total	$	56