Goodwill and Purchased Intangible Assets, Net

6 Months Ended

Oct. 27, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Purchased Intangible Assets, Net

4. Goodwill and Purchased Intangible Assets, Net

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

	Amount
Hybrid Cloud	$	1,714
Public Cloud		1,045
Total goodwill	$	2,759

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

	October 27,  2023							April 28,   2023
	Gross		Accumulated			Net		Gross		Accumulated			Net
	Assets		Amortization			Assets		Assets		Amortization			Assets
Developed technology	$	179	$	(91	)	$	88	$	212	$	(107	)	$	105
Customer contracts/relationships		114		(51	)		63		118		(44	)		74
Other purchased intangibles		6		(5	)		1		6		(4	)		2
Total purchased intangible assets	$	299	$	(147	)	$	152	$	336	$	(155	)	$	181

During the first six months of fiscal 2024, we retired approximately $37 million of fully amortized intangible assets.

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

	Three Months Ended				Six Months Ended				Statements of
	October 27,  2023		October 28, 2022		October 27,  2023		October 28, 2022		Income Classification
Developed technology	$	8	$	11	$	17	$	21	Cost of revenues
Customer contracts/relationships		6		6		11		12	Operating expenses
Other purchased intangibles		—		—		1		1	Operating expenses
Total	$	14	$	17	$	29	$	34

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

Fiscal Year	Amount
2024 (remainder)	$	28
2025		55
2026		39
2027		29
2028		1
Total	$	152