Goodwill and Purchased Intangible Assets, Net

12 Months Ended

Apr. 29, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Purchased Intangible Assets, Net

5. Goodwill and Purchased Intangible Assets, Net

Goodwill activity is summarized as follows (in millions):


	Amount
Balance as of April 24, 2020	$	1,778
Additions		261
Balance as of April 30, 2021		2,039
Additions		307
Balance as of April 29, 2022	$	2,346

Beginning with the first quarter of fiscal 2022, the Company has two reportable segments: Hybrid Cloud and Public Cloud. As a result, goodwill was allocated to the segments using a relative fair value approach. Goodwill additions of $307 million related to the acquisitions of Fylamynt, CloudCheckr and Data Mechanics have been allocated to our Public Cloud segment.

Goodwill by reportable segment as of April 29, 2022 is as follows (in millions):


	Amount
Hybrid Cloud	$	1,714
Public Cloud		632
Total goodwill	$	2,346

As a result of the realignment, the Company performed an interim quantitative goodwill impairment test for its reporting units as of July 30, 2021, which did not result in any goodwill impairment charges.

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


	April 29, 2022							April 30, 2021
	Gross		Accumulated			Net		Gross		Accumulated			Net
	Assets		Amortization			Assets		Assets		Amortization			Assets
Developed technology	$	157	$	(65	)	$	92	$	215	$	(147	)	$	68
Customer contracts/relationships		68		(20	)		48		38		(8	)		30
Other purchased intangibles		4		(2	)		2		3		—			3
Total purchased intangible assets	$	229	$	(87	)	$	142	$	256	$	(155	)	$	101

During fiscal 2022, we retired approximately $114 million of fully amortized developed technology intangible assets.

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


	Year Ended						Statements of
	April 29, 2022		April 30, 2021		April 24, 2020		Income Classifications
Developed technology	$	33	$	41	$	39	Cost of revenues
Customer contracts/relationships		11		8		—	Operating expenses
Other purchased intangibles		2		—		—	Operating expenses
Total	$	46	$	49	$	39

As of April 29, 2022, future amortization expense related to purchased intangible assets is as follows (in millions):


Fiscal Year	Amount
2023	$	47
2024		36
2025		33
2026		18
2027		8
Total	$	142