Asset Impairment Charges

Table of Contents(6) GOODWILL AND ACQUISITION-RELATED INTANGIBLES, NETThe changes in the carrying amount of goodwill for the three months ended June 30, 2022 are as follows (in millions):

|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | As of March 31, 2022 |  | Activity |  | Effects of Foreign Currency Translation |  | As of June 30, 2022 |
| Goodwill | $ | 5,755  |  |  | $ | —  |  |  | $ | (5) |  |  | $ | 5,750  |  |
| Accumulated impairment | (368) |  |  | —  |  |  | —  |  |  | (368) |  |
| Total | $ | 5,387  |  |  | $ | —  |  |  | $ | (5) |  |  | $ | 5,382  |  |

Acquisition-related intangibles consisted of the following (in millions):

|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|   | As of June 30, 2022 |  | As of March 31, 2022 |
|   | GrossCarryingAmount |  | AccumulatedAmortization and Impairments |  | Acquisition-RelatedIntangibles, Net |  | GrossCarryingAmount |  | AccumulatedAmortization and Impairments |  | Acquisition-RelatedIntangibles, Net |
| Finite-lived acquisition-related intangibles |  |  |  |  |  |  |  |  |  |  |  |
| Developed and core technology | $ | 1,102  |  |  | $ | (683) |  |  | $ | 419  |  |  | $ | 1,102  |  |  | $ | (643) |  |  | $ | 459  |  |
| Trade names and trademarks | 609  |  |  | (234) |  |  | 375  |  |  | 609  |  |  | (212) |  |  | 397  |  |
| Registered user base and other intangibles | 56  |  |  | (37) |  |  | 19  |  |  | 56  |  |  | (30) |  |  | 26  |  |
|  |  |  |  |  |  |  |  |  |  |  |  |
| Total finite-lived acquisition-related intangibles | $ | 1,767  |  |  | $ | (954) |  |  | $ | 813  |  |  | $ | 1,767  |  |  | $ | (885) |  |  | $ | 882  |  |
| Indefinite-lived acquisition-related intangibles |  |  |  |  |  |  |  |  |  |  |  |
| In-process research and development | $ | 80  |  |  | $ | —  |  |  | $ | 80  |  |  | $ | 80  |  |  | $ | —  |  |  | $ | 80  |  |
| Total acquisition-related intangibles, net | $ | 1,847  |  |  | $ | (954) |  |  | $ | 893  |  |  | $ | 1,847  |  |  | $ | (885) |  |  | $ | 962  |  |

Amortization of intangibles, including impairments for the three months ended June 30, 2022 and 2021 are classified in the Condensed Consolidated Statements of Operations as follows (in millions):

|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | Three Months Ended June 30, |  |  |
|  | 2022 |  | 2021 |  |  |  |  |
| Cost of revenue | $ | 30  |  |  | $ | 22  |  |  |  |  |  |
| Operating expenses | 39  |  |  | 40  |  |  |  |  |  |
| Total | $ | 69  |  |  | $ | 62  |  |  |  |  |  |

During the three months ended June 30, 2022, there were no impairment charges for acquisition-related intangible assets. During the three months ended June 30, 2021, we recorded a $12 million impairment charge for acquisition-related intangible assets, which was recorded within operating expenses.Acquisition-related intangible assets are generally amortized using the straight-line method over the lesser of their estimated useful lives or the agreement terms, currently ranging from 1 to 7 years. As of June 30, 2022 and March 31, 2022, the weighted-average remaining useful life for acquisition-related intangible assets was approximately 5.1 and 5.2 years, respectively.14  

