Goodwill and Other Intangibles

6 Months Ended

Jun. 04, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill as of June 4, 2021 and November 27, 2020 was $11.86 billion and $10.74 billion, respectively. The increase was primarily due to our acquisition of Workfront in the first quarter of fiscal 2021.

During the second quarter of fiscal 2021, we completed our annual goodwill impairment test associated with our reporting units and determined there was no impairment of goodwill. We continually monitor events and changes in circumstances that could indicate that the fair value of any one of our reporting units may more likely than not have fallen below its respective carrying amount.

Other intangible assets subject to amortization as of June 4, 2021 and November 27, 2020 were as follows:


(in millions)	2021						2020
	Gross Carrying Amount		Accumulated Amortization		Net		Gross Carrying Amount		Accumulated Amortization		Net
Customer contracts and relationships	$	1,236	$	(341)	$	895	$	958	$	(289)	$	669
Purchased technology	771		(332)		439		756		(347)		409
Trademarks	393		(126)		267		384		(122)		262


Other	108		(68)		40		84		(65)		19
Other intangibles, net	$	2,508	$	(867)	$	1,641	$	2,182	$	(823)	$	1,359

During the six months ended June 4, 2021, other intangibles increased primarily due to identifiable intangible assets acquired through Workfront.

Amortization expense related to other intangibles was $88 million and $178 million for the three and six months ended June 4, 2021, respectively. Comparatively, amortization expense related other intangible assets was $92 million and $189 million for the three and six months ended May 29, 2020, respectively. Of these amounts, $44 million and $89 million were included in cost of revenue for the three and six months ended June 4, 2021, respectively, and $52 million and $107 million were included in cost of revenue for the three and six months ended May 29, 2020, respectively.

As of June 4, 2021, we expect amortization expense in future periods to be as follows:


(in millions)	Other Intangibles
Remainder of 2021	$	165
2022	313
2023	282
2024	238
2025	217
Thereafter	426
Total expected amortization expense	$	1,641