Intangible Assets Acquired Through Business Combinations and Goodwill

6 Months Ended

Jul. 31, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets Acquired Through Business Combinations and Goodwill

Intangible Assets Acquired Through Business Combinations and Goodwill

Intangible assets acquired through business combinations

Intangible assets acquired through business combinations are as follows (in millions):

	Intangible Assets, Gross						Accumulated Amortization									Intangible Assets, Net				Weighted Average Remaining Useful Life (Years)
	Jan 31, 2019		Additions and retirements, net		July 31, 2019		Jan 31, 2019			Expense and retirements, net			July 31, 2019			Jan 31, 2019		July 31, 2019
Acquired developed technology	$	1,429	$	33	$	1,462	$	(889	)	$	(123	)	$	(1,012	)	$	540	$	450	2.6
Customer relationships	1,938		25		1,963		(560		)	(129		)	(689		)	1,378		1,274		5.9
Other (1)	52		0		52		(47		)	(4		)	(51		)	5		1		1.0
Total	$	3,419	$	58	$	3,477	$	(1,496	)	$	(256	)	$	(1,752	)	$	1,923	$	1,725	5.0

(1)Included in other are trade names, trademarks and territory rights.

Amortization of intangible assets resulting from business combinations for the three months ended July 31, 2019 and 2018 was $127 million and $119 million, respectively, and for the six months ended July 31, 2019 and 2018 was $256 million and $188 million, respectively.

The expected future amortization expense for intangible assets as of July 31, 2019 is as follows (in millions):

Fiscal Period:
Remaining six months of Fiscal 2020	$	228
Fiscal 2021	429
Fiscal 2022	366
Fiscal 2023	218
Fiscal 2024	152
Thereafter	332
Total amortization expense	$	1,725

Customer contract assets acquired through business combinations

Customer contract assets resulting from business combinations reflects the fair value of future billings of amounts that are contractually committed by acquired companies' existing customers as of the acquisition date. Customer contract assets are amortized over the corresponding contract terms. Customer contract assets resulting from business combinations at July 31, 2019 and January 31, 2019 were $81 million and $121 million, respectively, and are included in other assets on the condensed consolidated balance sheets.

Goodwill

Goodwill represents the excess of the purchase price in a business combination over the fair value of net assets acquired. Goodwill amounts are not amortized, but rather tested for impairment at least annually during the fourth quarter.

The changes in the carrying amounts of goodwill, which is generally not deductible for tax purposes, were as follows (in millions):

Balance as of January 31, 2019	$	12,851
Salesforce.org	164
MapAnything	152
Other acquisitions and adjustments (1)	32
Balance as of July 31, 2019	$	13,199

(1)Adjustments include adjustments of acquisition date fair value, including the effect of foreign currency translation.