Goodwill and Acquired Intangible Assets

12 Months Ended

Jul. 31, 2022

Goodwill and Intangible Assets Disclosure [Abstract]


6. Goodwill and Acquired Intangible Assets


Goodwill

Changes in the carrying value of goodwill by reportable segment during the twelve months ended July 31, 2022 and July 31, 2021 were as shown in the following table. Our reportable segments are described in Note 15, “Segment Information.”


(In millions)	Balance July 31, 2020		Goodwill Acquired		Foreign Currency Translation		Balance July 31, 2021		Goodwill Acquired		Foreign Currency Translation		Balance July 31, 2022
Small Business & Self-Employed	$	1,518	$	59	$	1	$	1,578	$	8,115	$	(4)	$	9,689
Consumer	42		—		—		42		10		(1)		51
Credit Karma	—		3,898		—		3,898		5		(4)		3,899
ProConnect	94		—		1		95		2		—		97
Totals	$	1,654	$	3,957	$	2	$	5,613	$	8,132	$	(9)	$	13,736

Goodwill is net of accumulated impairment losses of $114 million, which were recorded prior to July 31, 2020 and are included in our Consumer segment. The increase in goodwill during the twelve months ended July 31, 2022 was primarily due to the acquisition of Mailchimp. The increase in goodwill during the twelve months ended July 31, 2021 was primarily due to the acquisition of Credit Karma.


Acquired Intangible Assets

The following table shows the cost, accumulated amortization and weighted average life in years for our acquired intangible assets at the dates indicated. The increases in intangible assets during the twelve months ended July 31, 2022 were primarily related to the acquisition of Mailchimp. See Note 7, “Business Combinations.” The weighted average lives are calculated for assets that are not fully amortized.


(Dollars in millions)	Customer Lists / User Relationships		Purchased Technology		Trade Names and Logos		Covenants Not to Compete or Sue		Total

At July 31, 2022:
Cost	$	6,197	$	1,612	$	680	$	42	$	8,531
Accumulated amortization	(748)		(593)		(87)		(42)		(1,470)
Acquired intangible assets, net	$	5,449	$	1,019	$	593	$	—	$	7,061
Weighted average life in years	14		8		13		0		13

At July 31, 2021:
Cost	$	3,038	$	686	$	400	$	42	$	4,166
Accumulated amortization	(377)		(455)		(41)		(41)		(914)
Acquired intangible assets, net	$	2,661	$	231	$	359	$	1	$	3,252
Weighted average life in years	15		5		15		3		14

The following table shows the expected future amortization expense for our acquired intangible assets at July 31, 2022. Amortization of purchased technology is charged to amortization of acquired technology in our consolidated statements of operations. Amortization of other acquired intangible assets such as customer lists is charged to amortization of other acquired intangible assets in our consolidated statements of operations. If impairment events occur, they could accelerate the timing of acquired intangible asset charges.


(In millions)	Expected Future Amortization Expense

Twelve months ending July 31,
2023	$	646
2024	624
2025	622
2026	620
2027	594
Thereafter	3,955
Total expected future amortization expense	$	7,061