Goodwill and Acquired Intangible Assets (Tables)

9 Months Ended

Apr. 30, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Goodwill By Reportable Segment

Changes in the carrying value of goodwill by reportable segment during the nine months ended April 30, 2022 were as shown in the following table. Our reportable segments are described in Note 12, “Segment Information.”

(In millions)	Balance  July 31, 2021		Goodwill Acquired		Foreign Currency Translation		Balance April 30, 2022
Small Business & Self-Employed	$	1,578	$	8,108	$	(3)	$	9,683
Consumer	42		10		(1)		51
Credit Karma	3,898		5		(3)		3,900
ProConnect	95		2		—		97
Totals	$	5,613	$	8,125	$	(7)	$	13,731

Schedule of Intangible Assets Acquired

The following table shows the cost, accumulated amortization and weighted average life in years for our acquired intangible assets at the dates indicated. The increases in intangible assets during the nine months ended April 30, 2022 were primarily due to the acquisition of Mailchimp. See Note 5, "Business Combinations." The weighted average lives are calculated for assets that are not fully amortized.

(Dollars in millions)	Customer Lists / User Relationships		Purchased Technology		Trade Names and Logos		Covenants Not to Compete or Sue		Total
At April 30, 2022:
Cost	$	6,198	$	1,612	$	680	$	42	$	8,532
Accumulated amortization	(640)		(552)		(74)		(42)		(1,308)
Acquired intangible assets, net	$	5,558	$	1,060	$	606	$	—	$	7,224
Weighted average life in years	14		8		13		0		13
At July 31, 2021:
Cost	$	3,038	$	686	$	400	$	42	$	4,166
Accumulated amortization	(377)		(455)		(41)		(41)		(914)
Acquired intangible assets, net	$	2,661	$	231	$	359	$	1	$	3,252
Weighted average life in years	15		5		15		3		14

Schedule of Future Amortization Expense

The following table shows the expected future amortization expense for our acquired intangible assets at April 30, 2022. Amortization of purchased technology is charged to amortization of acquired technology in our consolidated statements of operations. Amortization of other acquired intangible assets such as customer lists is charged to amortization of other acquired intangible assets in our consolidated statements of operations. If impairment events occur, they could accelerate the timing of acquired intangible asset charges.

(In millions)	Expected Future Amortization Expense
Twelve months ending July 31,
2022 (excluding the nine months ended April 30, 2022)	$	163
2023	646
2024	624
2025	622
2026	620
Thereafter	4,549
Total expected future amortization expense	$	7,224