Goodwill and Purchased Intangible Assets, Net

9 Months Ended

Jan. 27, 2023

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 29, 2022	$	2,346
Additions		421
Balance as of January 27, 2023	$	2,767

The goodwill addition of $421 million related to the acquisition of Instaclustr has been allocated to our Public Cloud segment.

Goodwill by reportable segment as of January 27, 2023 is as follows (in millions):

	Amount
Hybrid Cloud	$	1,714
Public Cloud		1,053
Total goodwill	$	2,767

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

	January 27, 2023							April 29,  2022
	Gross		Accumulated			Net		Gross		Accumulated			Net
	Assets		Amortization			Assets		Assets		Amortization			Assets
Developed technology	$	212	$	(97	)	$	115	$	157	$	(65	)	$	92
Customer contracts/relationships		118		(38	)		80		68		(20	)		48
Other purchased intangibles		6		(3	)		3		4		(2	)		2
Total purchased intangible assets	$	336	$	(138	)	$	198	$	229	$	(87	)	$	142

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

	Three Months Ended				Nine Months Ended				Statements of
	January 27, 2023		January 28, 2022		January 27, 2023		January 28, 2022		Income Classification
Developed technology	$	10	$	9	$	31	$	23	Cost of revenues
Customer contracts/relationships		7		4		19		7	Operating expenses
Other purchased intangibles		—		—		1		2	Operating expenses
Total	$	17	$	13	$	51	$	32

As of January 27, 2023, future amortization expense related to purchased intangible assets is as follows (in millions):

Fiscal Year	Amount
2023 (remainder)	$	17
2024		57
2025		55
2026		39
2027		29
2028		1
Total	$	198