Goodwill And Acquisition-Related Intangibles, Net

9 Months Ended

Dec. 31, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill And Acquisition-Related Intangibles, Net

(7) GOODWILL AND ACQUISITION-RELATED INTANGIBLES, NET

The changes in the carrying amount of goodwill for the nine months ended December 31, 2021 are as follows (in millions):

	As of March 31, 2021		Activity		Effects of Foreign Currency Translation		As of December 31, 2021
Goodwill	$	3,236	$	2,522	$	(1)	$	5,757
Accumulated impairment	(368)		—		—		(368)
Total	$	2,868	$	2,522	$	(1)	$	5,389

Acquisition-related intangibles consisted of the following (in millions):

	As of December 31, 2021						As of March 31, 2021
	Gross Carrying Amount		Accumulated Amortization		Acquisition- Related Intangibles, Net		Gross Carrying Amount		Accumulated Amortization		Acquisition- Related Intangibles, Net
Finite-lived acquisition-related intangibles
Developed and core technology	$	1,107	$	(597)	$	510	$	691	$	(472)	$	219
Trade names and trademarks	607		(191)		416		188		(144)		44
Registered user base and other intangibles	56		(20)		36		5		(5)		—
Carrier contracts and related	85		(85)		—		85		(85)		—
Total finite-lived acquisition-related intangibles	$	1,855	$	(893)	$	962	$	969	$	(706)	$	263
Indefinite-lived acquisition-related intangibles
In-process research and development	$	90	$	—	$	90	$	46	$	—	$	46
Total acquisition-related intangibles, net	$	1,945	$	(893)	$	1,052	$	1,015	$	(706)	$	309

Amortization of intangibles for the three and nine months ended December 31, 2021 and 2020 are classified in the Condensed Consolidated Statements of Operations as follows (in millions):

	Three Months Ended December 31,				Nine Months Ended December 31,
	2021		2020		2021		2020
Cost of revenue	$	44	$	—	$	88	$	—
Operating expenses	61		5		131		16
Total	$	105	$	5	$	219	$	16

During the three and nine months ended December 31, 2021, as part of the amortization of intangibles we recorded impairment charges of $14 million and $26 million, respectively, for acquisition-related intangible assets, which were recorded within operating expenses.

Acquisition-related intangible assets are generally amortized using the straight-line method over the lesser of their estimated useful lives or the agreement terms, currently from 1 to 7 years. As of December 31, 2021 and March 31, 2021, the weighted-average remaining useful life for acquisition-related intangible assets was approximately 5.3 and 3.5 years, respectively.

As of December 31, 2021, future amortization of finite-lived acquisition-related intangibles that will be recorded in the Condensed Consolidated Statements of Operations is estimated as follows (in millions):

Fiscal Year Ending March 31,
2022 (remaining three months)	$	75
2023	236
2024	176
2025	126
2026	121
2027	101
2028 and thereafter	127
Total	$	962