Impairment charges related to purchased intangible assets

  
The following tables present details of our purchased intangible assets (in millions): 

|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| July 30, 2022 |  | Gross |  | Accumulated Amortization |  | Net |
| Purchased intangible assets with finite lives: |  |  |  |  |  |  |
| Technology |  | $ | 2,631  |  |  | $ | (1,102) |  |  | $ | 1,529  |  |
| Customer relationships |  | 1,354  |  |  | (769) |  |  | 585  |  |
| Other |  | 41  |  |  | (16) |  |  | 25  |  |
| Total purchased intangible assets with finite lives |  | 4,026  |  |  | (1,887) |  |  | 2,139  |  |
| In-process research and development, with indefinite lives |  | 430  |  |  | —  |  |  | 430  |  |
| Total |  | $ | 4,456  |  |  | $ | (1,887) |  |  | $ | 2,569  |  |



|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| July 31, 2021 |  | Gross |  | Accumulated Amortization |  | Net |
| Purchased intangible assets with finite lives: |  |  |  |  |  |  |
| Technology |  | $ | 3,629  |  |  | $ | (1,437) |  |  | $ | 2,192  |  |
| Customer relationships |  | 1,387  |  |  | (523) |  |  | 864  |  |
| Other |  | 71  |  |  | (13) |  |  | 58  |  |
| Total purchased intangible assets with finite lives |  | 5,087  |  |  | (1,973) |  |  | 3,114  |  |
| In-process research and development, with indefinite lives |  | 505  |  |  | —  |  |  | 505  |  |
| Total |  | $ | 5,592  |  |  | $ | (1,973) |  |  | $ | 3,619  |  |

Purchased intangible assets include intangible assets acquired through acquisitions as well as through direct purchases or licenses.Impairment charges related to purchased intangible assets were $15 million for fiscal 2022, and were included in research and development expenses. Impairment charges are primarily a result of declines in estimated fair values of certain purchased intangible assets resulting from the reduction or elimination of expected future cash flows associated with certain of our technology and IPR&D intangible assets.The following table presents the amortization of purchased intangible assets, including impairment charges (in millions):

|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Years Ended |  | July 30, 2022 |  | July 31, 2021 |  | July 25, 2020 |
| Amortization of purchased intangible assets: |  |  |  |  |  |  |
| Cost of sales |  | $ | 749  |  |  | $ | 716  |  |  | $ | 659  |  |
| Operating expenses |  | 328  |  |  | 215  |  |  | 141  |  |
| Total |  | $ | 1,077  |  |  | $ | 931  |  |  | $ | 800  |  |

The estimated future amortization expense of purchased intangible assets with finite lives as of July 30, 2022 is as follows (in millions):

|  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |
| Fiscal Year | Amount |
| 2023 | $ | 900  |  |
| 2024 | $ | 773  |  |
| 2025 | $ | 403  |  |
| 2026 | $ | 61  |  |
| 2027 | $ | 2  |  |

  
6.Restructuring and Other ChargesWe initiated a restructuring plan in fiscal 2021 (the “Fiscal 2021 Plan”), which included a voluntary early retirement program, in order to realign the organization and enable further investment in key priority areas. The total pretax charges were estimated to be approximately $900 million. In connection with the Fiscal 2021 Plan, we incurred cumulative charges of $892 million and completed the Fiscal 2021 Plan in fiscal 2022.We initiated a restructuring plan in fiscal 2020 (the “Fiscal 2020 Plan”) in order to realign the organization and enable further investment in key priority areas. In connection with the Fiscal 2020 Plan, we incurred cumulative charges of $254 million. We completed the Fiscal 2020 Plan in fiscal 2021.74
