Goodwill and Other Intangibles

6 Months Ended

Jun. 02, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill as of June 2, 2023 and December 2, 2022 was $12.80 billion and $12.79 billion, respectively. During the second quarter of fiscal 2023, we completed our annual goodwill impairment test associated with our reporting units and determined there was no impairment of goodwill.

Other intangible assets subject to amortization as of June 2, 2023 and December 2, 2022 were as follows:


(in millions)	2023						2022
	Gross Carrying Amount		Accumulated Amortization		Net		Gross Carrying Amount		Accumulated Amortization		Net
Customer contracts and relationships	$	1,203	$	(557)	$	646	$	1,204	$	(495)	$	709
Purchased technology	1,060		(636)		424		1,060		(530)		530
Trademarks	376		(194)		182		375		(172)		203


Other	20		(14)		6		61		(54)		7
Other intangibles, net	$	2,659	$	(1,401)	$	1,258	$	2,700	$	(1,251)	$	1,449

Amortization expense related to other intangibles was $96 million and $192 million for the three and six months ended June 2, 2023, respectively. Comparatively, amortization expense related to other intangibles was $101 million and $202 million for the three and six months ended June 3, 2022, respectively. Of these amounts, $54 million and $108 million were included in cost of revenue for the three and six months ended June 2, 2023, respectively, and $59 million and $118 million were included in cost of revenue for the three and six months ended June 3, 2022, respectively.

As of June 2, 2023, the estimated aggregate amortization expense in future periods was as follows:


(in millions)
Fiscal Year	Other Intangibles (1)
Remainder of 2023	$	185
2024	331
2025	295
2026	142
2027	104
Thereafter	182
Total expected amortization expense	$	1,239

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(1)Excludes capitalized in-process research and development which is considered indefinite lived until the completion or abandonment of the associated research and development efforts.