BALANCE SHEET ITEMS

6 Months Ended

Sep. 25, 2020

Balance Sheet Related Disclosures [Abstract]

Inventories

The components of inventories, net of applicable lower of cost and net realizable value write-downs, were as follows:


	As of September 25, 2020		As of March 31, 2020
	(In millions)
Raw materials	$	2,662	$	2,836
Work-in-progress	433		373
Finished goods	516		576
	$	3,611	$	3,785

Goodwill and Other Intangible Assets

In accordance with accounting guidance on goodwill and other intangible assets, the Company evaluates goodwill for impairment at the reporting unit level annually, and in certain circumstances such as a change in reporting units or whenever there are indications that goodwill might be impaired. As described in note 1, the Company made certain changes in its organizational structure during the first quarter of fiscal year 2021 as part of its strategy to further drive growth and productivity through two separate delivery models that represent reportable segments, FAS and FRS. With these changes, the Company also revised its reporting units. Accordingly, the Company completed an interim test as of April 1, 2020. Recoverability of goodwill is measured at the reporting unit level by comparing the reporting unit's carrying amount, including goodwill, to the fair value of the reporting unit, which typically is measured based upon, among other factors, market multiples for comparable companies as well as a discounted cash flow analysis. These approaches use significant unobservable inputs, or Level 3 inputs, as defined by the fair value hierarchy and require management to make various judgmental assumptions about sales, operating margins, growth rates and discount rates which consider the Company's budgets, business plans and economic projections, and are believed to reflect market participant views. Some of the inherent estimates and assumptions used in determining fair value of the reporting units are outside the control of management, including interest rates, cost of capital, tax rates, market EBITDA comparables and credit ratings. While the Company believes it has made reasonable estimates and assumptions to calculate the fair value of the reporting units, it is possible a material change could occur. If the actual results are not consistent with management's estimates and assumptions used to calculate fair value, it could result in material impairments of the Company's goodwill.

Based on the latest assessment of its goodwill as of April 1, 2020, the Company determined that no impairment existed as of the date of the impairment test, because the fair value of each one of its reporting units exceeds its respective carrying value. In addition, goodwill was reallocated among each of the Company's six reporting units based on each reporting unit’s relative fair value as of April 1, 2020. The Company considered whether an interim impairment test should be performed as of September 25, 2020 and concluded that there were no events or changes in circumstances that indicated the carrying amount of goodwill may not be recoverable. It will perform its next annual impairment test on January 1, 2021. The following table summarizes the goodwill allocation as of April 1, 2020 and the activity during the six-month period ended September 25, 2020:


	FAS						FRS
	Communications, Enterprise and Cloud		Lifestyle		Consumer Devices		Automotive		Health Solutions		Industrial		Total
	(In millions)
Balance at April 1, 2020	$	188	$	131	$	51	$	174	$	192	$	329	$	1,065



Foreign currency translation adjustments	—		—		—		21		2		—		23
Balance at September 25, 2020	$	188	$	131	$	51	$	195	$	194	$	329	$	1,088

The components of acquired intangible assets are as follows:


	As of September 25, 2020						As of March 31, 2020
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
	(In millions)
Intangible assets:
Customer-related intangibles	$	282	$	(146)	$	136	$	275	$	(128)	$	147
Licenses and other intangibles	255		(150)		105		245		(130)		115
Total	$	537	$	(296)	$	241	$	520	$	(258)	$	262

The gross carrying amounts of intangible assets are removed when fully amortized. The estimated future annual amortization expense for intangible assets is as follows:


Fiscal Year Ending March 31,	Amount
	(In millions)
2021 (1)	$	31
2022	53
2023	45
2024	44
2025	39
Thereafter	29
Total amortization expense	$	241

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(1)Represents estimated amortization for the remaining fiscal six-month period ending March 31, 2021.

Other Current Liabilities

Other current liabilities include customer working capital advances of $356.1 million and $264.2 million, customer-related accruals of $203.3 million and $195.1 million, and current operating lease liabilities of $119.0 million and $114.1 million as of September 25, 2020 and March 31, 2020, respectively. The customer working capital advances are not interest-bearing, do not have fixed repayment dates and are generally reduced as the underlying working capital is consumed in production.