Goodwill and Acquired Intangible Assets

12 Months Ended

Jul. 31, 2023

Goodwill and Intangible Assets Disclosure [Abstract]


6. Goodwill and Acquired Intangible Assets


Goodwill

Changes in the carrying value of goodwill by reportable segment during the twelve months ended July 31, 2023 and July 31, 2022 were as shown in the following table. Our reportable segments are described in Note 15, “Segment Information.”


(In millions)	Balance July 31, 2021		Goodwill Acquired/ Adjusted		Foreign Currency Translation		Balance July 31, 2022		Goodwill Acquired/ Adjusted		Foreign Currency Translation		Balance July 31, 2023
Small Business & Self-Employed	$	1,578	$	8,115	$	(4)	$	9,689	$	1	$	1	$	9,691
Consumer	42		10		(1)		51		—		—		51
Credit Karma	3,898		5		(4)		3,899		40		2		3,941
ProTax	95		2		—		97		—		—		97
Totals	$	5,613	$	8,132	$	(9)	$	13,736	$	41	$	3	$	13,780

Goodwill is net of accumulated impairment losses of $114 million, which were recorded prior to July 31, 2021 and are included in our Consumer segment. The increase in goodwill during the twelve months ended July 31, 2022 was primarily due to the acquisition of Mailchimp.


Acquired Intangible Assets

The following table shows the cost, accumulated amortization, and weighted-average life in years for our acquired intangible assets at the dates indicated. 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 July 31, 2023:
Cost	$	6,197	$	1,616	$	680	$	42	$	8,535
Accumulated amortization	(1,178)		(756)		(140)		(42)		(2,116)
Acquired intangible assets, net	$	5,019	$	860	$	540	$	—	$	6,419
Weighted-average life in years	14		8		13		0		13

At July 31, 2022:
Cost	$	6,197	$	1,612	$	680	$	42	$	8,531
Accumulated amortization	(748)		(593)		(87)		(42)		(1,470)
Acquired intangible assets, net	$	5,449	$	1,019	$	593	$	—	$	7,061
Weighted-average life in years	14		8		13		0		13

The following table shows the expected future amortization expense for our acquired intangible assets at July 31, 2023. 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,
2024	$	626
2025	624
2026	620
2027	594
2028	581
Thereafter	3,374
Total expected future amortization expense	$	6,419