Goodwill And Acquisition-Related Intangibles, Net

3 Months Ended

Dec. 31, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill And Acquisition-Related Intangibles, Net

GOODWILL AND ACQUISITION-RELATED INTANGIBLES, NET

The changes in the carrying amount of goodwill for the nine months ended December 31, 2023 are as follows (in millions):

	As of March 31, 2023		Activity		Effects of Foreign Currency Translation		As of December 31, 2023
Goodwill	$	5,748	$	—	$	2	$	5,750
Accumulated impairment	(368)		—		—		(368)
Total	$	5,380	$	—	$	2	$	5,382

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

	As of December 31, 2023						As of March 31, 2023
	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	$	1,055	$	(817)	$	238	$	1,051	$	(754)	$	297
Trade names and trademarks	596		(333)		263		596		(285)		311
Registered user base and other intangibles	56		(56)		—		56		(50)		6
Total finite-lived acquisition-related intangibles	$	1,707	$	(1,206)	$	501	$	1,703	$	(1,089)	$	614
Indefinite-lived acquisition-related intangibles
In-process research and development	$	—	$	—	$	—	$	4	$	—	$	4
Total acquisition-related intangibles, net	$	1,707	$	(1,206)	$	501	$	1,707	$	(1,089)	$	618

Amortization of intangibles, including impairments for the three and nine months ended December 31, 2023 and 2022 are classified in the Condensed Consolidated Statements of Operations as follows (in millions):

	Three Months Ended December 31,				Nine Months Ended December 31,
	2023		2022		2023		2022
Cost of revenue	$	16	$	26	$	47	$	95
Operating expenses	21		50		70		132
Total	$	37	$	76	$	117	$	227

During the three and nine months ended December 31, 2023, there were no impairment charges recorded for acquisition-related intangible assets.

During the three months ended December 31, 2022, we recorded impairment charges of $22 million for acquisition-related intangible assets within operating expenses. During the nine months ended December 31, 2022, we recorded impairment charges of $40 million for acquisition-related intangible assets, of which $12 million was recorded within cost of revenue and $28 million was 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 ranging from 2 to 7 years. As of December 31, 2023 and March 31, 2023, the weighted-average remaining useful life for acquisition-related intangible assets was approximately 4.3 years and 4.8 years, respectively.

As of December 31, 2023, 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,
2024 (remaining three months)	$	35
2025	123
2026	119
2027	99
2028	96
2029	29
Total	$	501

Subsequent to December 31, 2023, we impaired certain acquisition-related intangible assets totaling approximately $70 million that will be recorded in the fourth quarter of fiscal year 2024.