Goodwill and Purchased Intangible Assets

9 Months Ended

Apr. 30, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Purchased Intangible Assets

(a)Goodwill

The following table presents the goodwill allocated to our reportable segments as of April 30, 2022 and during the first nine months of fiscal 2022 (in millions):



	Balance at July 31, 2021		Acquisitions & Divestitures		Other		Balance at April 30, 2022
Americas	$	23,673	$	222	$	79	$	23,974
EMEA	9,094		83		(80)		9,097
APJC	5,401		27		(47)		5,381
Total	$	38,168	$	332	$	(48)	$	38,452

“Other” in the table above consists of foreign currency translation as well as purchase accounting adjustments.

(b)Purchased Intangible Assets

The following table presents details of our intangible assets acquired through acquisitions completed during the first nine months of fiscal 2022 (in millions, except years):


	FINITE LIVES									INDEFINITE LIVES		TOTAL
	TECHNOLOGY			CUSTOMER RELATIONSHIPS			OTHER			IPR&D
	Weighted- Average Useful Life (in Years)	Amount		Weighted- Average Useful Life (in Years)	Amount		Weighted- Average Useful Life (in Years)	Amount		Amount		Amount
Total acquisitions (three in total)	2.7	$	16	2.0	$	4	—	$	—	$	—	$	20

The following tables present details of our purchased intangible assets (in millions):


April 30, 2022	Gross		Accumulated Amortization		Net
Purchased intangible assets with finite lives:
Technology	$	2,837	$	(1,140)	$	1,697
Customer relationships	1,355		(701)		654
Other	54		(24)		30
Total purchased intangible assets with finite lives	4,246		(1,865)		2,381
In-process research and development, with indefinite lives	430		—		430
Total	$	4,676	$	(1,865)	$	2,811


July 31, 2021	Gross		Accumulated Amortization		Net
Purchased intangible assets with finite lives:
Technology	$	3,629	$	(1,437)	$	2,192
Customer relationships	1,387		(523)		864
Other	71		(13)		58
Total purchased intangible assets with finite lives	5,087		(1,973)		3,114
In-process research and development, with indefinite lives	505		—		505
Total	$	5,592	$	(1,973)	$	3,619

Purchased intangible assets include intangible assets acquired through acquisitions as well as through direct purchases or licenses.

Impairment charges related to purchased intangible assets for the third quarter and first nine months of fiscal 2022 were $15 million. Impairment charges are primarily a result of declines in estimated fair values of certain purchased intangible assets resulting from the reduction or elimination of expected future cash flows associated with certain of our technology and in-process research and development (IPR&D) intangible assets.

The following table presents the amortization of purchased intangible assets, including impairment charges (in millions):


	Three Months Ended				Nine Months Ended
	April 30, 2022		May 1, 2021		April 30, 2022		May 1, 2021
Amortization of purchased intangible assets:
Cost of sales	$	180	$	187	$	583	$	513
Operating expenses	92		61		255		136
Total	$	272	$	248	$	838	$	649

The estimated future amortization expense of purchased intangible assets with finite lives as of April 30, 2022 is as follows (in millions):


Fiscal Year	Amount
2022 (remaining three months)	$	238
2023	$	902
2024	$	774
2025	$	404
2026	$	61
Thereafter	$	2