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Goodwill and Purchased Intangible Assets, Net | 9 Months Ended
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Jan. 28, 2022
Goodwill and Intangible Assets Disclosure [Abstract] |
Goodwill and Purchased Intangible Assets, Net | 4. Goodwill and Purchased Intangible Assets, Net Goodwill activity is summarized as follows (in millions):
|  | Amount |
Balance as of April 30, 2021 |  | $ | 2,039 |
Additions |  |  | 291 |
Balance as of January 28, 2022 |  | $ | 2,330 |
Beginning with the first quarter of fiscal 2022, the Company has two reportable segments: Public Cloud and Hybrid Cloud. As a result, goodwill was allocated to the segments using a relative fair value approach. Goodwill additions of $291 million related to the acquisition of CloudCheckr and Data Mechanics have been allocated to our Public Cloud segment. Goodwill by reportable segment as of January 28, 2022 is as follows (in millions):
|  | Amount |
Public Cloud |  | $ | 616 |
Hybrid Cloud |  |  | 1,714 |
Total goodwill |  | $ | 2,330 |
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 no t result in any goodwill impairment charges. The Company will continue to evaluate the recoverability of goodwill on an annual basis in the fourth fiscal quarter and whenever events or changes in circumstances indicate there may be a potential impairment. Purchased intangible assets, net are summarized below (in millions):
|  | January 28, 2022 |  |  | April 30, 2021 |
|  | Gross |  |  | Accumulated |  |  | Net |  |  | Gross |  |  | Accumulated |  |  | Net |
|  | Assets |  |  | Amortization |  |  | Assets |  |  | Assets |  |  | Amortization |  |  | Assets |
Developed technology |  | $ | 151 |  |  | $ | (56 | ) |  | $ | 95 |  |  | $ | 215 |  |  | $ | (147 | ) |  | $ | 68 |
Customer contracts/relationships |  |  | 68 |  |  |  | (15 | ) |  |  | 53 |  |  |  | 38 |  |  |  | (8 | ) |  |  | 30 |
Other purchased intangibles |  |  | 4 |  |  |  | (2 | ) |  |  | 2 |  |  |  | 3 |  |  |  | — |  |  |  | 3 |
Total purchased intangible assets |  | $ | 223 |  |  | $ | (73 | ) |  | $ | 150 |  |  | $ | 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):
|  | Three Months Ended |  |  | Nine Months Ended |  |  | Statements of
|  | January 28, 2022 |  |  | January 29, 2021 |  |  | January 28, 2022 |  |  | January 29, 2021 |  |  | Income Classification
Developed technology |  | $ | 9 |  |  | $ | 12 |  |  | $ | 23 |  |  | $ | 34 |  |  | Cost of revenues
Customer contracts/relationships |  |  | 4 |  |  |  | 3 |  |  |  | 7 |  |  |  | 6 |  |  | Operating expenses
Other purchased intangibles |  |  | — |  |  |  | — |  |  |  | 2 |  |  |  | — |  |  | Operating expenses
Total |  | $ | 13 |  |  | $ | 15 |  |  | $ | 32 |  |  | $ | 40 |  |  |
As of January 28, 2022, future amortization expense related to purchased intangible assets is as follows (in millions):
Fiscal Year |  | Amount |
2022 (remainder) |  | $ | 14 |
2023 |  |  | 45 |
2024 |  |  | 34 |
2025 |  |  | 35 |
2026 |  |  | 18 |
2027 |  |  | 4 |
Total |  | $ | 150 |

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- Definition The entire disclosure for goodwill and intangible assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -URI http://asc.fasb.org/topic&trid=2144416 + Details
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