Goodwill and Purchased Intangible Assets, Net

3 Months Ended

Jul. 30, 2021

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 30, 2021	$	2,039
Additions		11
Balance as of July 30, 2021	$	2,050

Beginning with the first quarter of fiscal 2022, the Company has two reportable segments: Public Cloud and Hybrid Cloud. As a result, goodwill was allocated to the segments using a relative fair value approach.

Goodwill by reportable segment as of July 30, 2021 is as follows (in millions):

	Amount
Public Cloud	$	336
Hybrid Cloud		1,714
Total goodwill	$	2,050

As a result of the realignment, the Company performed an interim quantitative goodwill impairment test for its reporting units as of July 30, 2021, which did not result in any goodwill impairment charges. The Company will continue to evaluate the recoverability of goodwill on an annual basis in the fourth fiscal quarter and whenever events or changes in circumstances indicate there may be a potential impairment.

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

	July 30, 2021							April 30, 2021
	Gross		Accumulated			Net		Gross		Accumulated			Net
	Assets		Amortization			Assets		Assets		Amortization			Assets
Developed technology	$	106	$	(40	)	$	66	$	215	$	(147	)	$	68
Customer contracts/relationships		38		(9	)		29		38		(8	)		30
Other purchased intangibles		3		(1	)		2		3		—			3
Total purchased intangible assets	$	147	$	(50	)	$	97	$	256	$	(155	)	$	101

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

	Three Months Ended				Statements of
	July 30, 2021		July 31, 2020		Income Classification
Developed technology	$	7	$	10	Cost of revenues
Customer contracts/relationships		1		—	Operating expenses
Other purchased intangibles		1		—	Operating expenses
Total	$	9	$	10

As of July 30, 2021, future amortization expense related to purchased intangible assets is as follows (in millions):

Fiscal Year	Amount
Remainder of 2022	$	29
2023		30
2024		19
2025		16
2026		3
Total	$	97