Total deferred sales commissions

  
Contract liabilities consist of deferred revenue. Deferred revenue was $23.3 billion as of July 30, 2022 compared to $22.2 billion as of July 31, 2021. We recognized approximately $12.0 billion of revenue during fiscal 2022 that was included in the deferred revenue balance at July 31, 2021.(c)Capitalized Contract Acquisition CostsWe capitalize direct and incremental costs incurred to acquire contracts, primarily sales commissions, for which the associated revenue is expected to be recognized in future periods. We incur these costs in connection with both initial contracts and renewals. These costs are initially deferred and typically amortized over the term of the customer contract which corresponds to the period of benefit. Deferred sales commissions were $1.0 billion as of each of July 30, 2022 and July 31, 2021, and were included in other current assets and other assets. The amortization expense associated with these costs was $679 million and $532 million for fiscal 2022 and 2021, respectively, and was included in sales and marketing expenses.  
4.Acquisitions and Divestitures (a)Acquisition SummaryWe completed three acquisitions during fiscal 2022. A summary of the allocation of the total purchase consideration is presented as follows (in millions):

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| Fiscal 2022 | Purchase Consideration |  | Net Tangible Assets Acquired (Liabilities Assumed) |  | Purchased Intangible Assets |  | Goodwill |
| Total acquisitions (three in total) | $ | 364  |  |  | $ | 12  |  |  | $ | 20  |  |  | $ | 332  |  |

The total purchase consideration related to our acquisitions completed during fiscal 2022 consisted of cash consideration and vested share-based awards assumed. The total cash and cash equivalents acquired from these acquisitions was approximately $7 million. Fiscal 2021 AcquisitionsAllocation of the purchase consideration for acquisitions completed in fiscal 2021 is summarized as follows (in millions):

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| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
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| Fiscal 2021 | Purchase Consideration |  | Net Tangible Assets Acquired (Liabilities Assumed) |  | Purchased Intangible Assets |  | Goodwill |
| Acacia | $ | 4,983  |  |  | $ | 442  |  |  | $ | 2,160  |  |  | $ | 2,381  |  |
| Others (12 in total) | 2,472  |  |  | (130) |  |  | 754  |  |  | 1,848  |  |
| Total | $ | 7,455  |  |  | $ | 312  |  |  | $ | 2,914  |  |  | $ | 4,229  |  |

On March 1, 2021, we completed our acquisition of Acacia Communications, Inc. (“Acacia”), a public fabless semiconductor company that develops, manufactures and sells high-speed coherent optical interconnect products that are designed to transform communications networks through improvements in performance, capacity and cost. Revenue from the Acacia acquisition has been included in our Internet for the Future product category.The total purchase consideration related to our acquisitions completed during fiscal 2021 consisted of cash consideration and vested share-based awards assumed. The total cash and cash equivalents acquired from these acquisitions was approximately $338 million. Fiscal 2020 AcquisitionsIn fiscal 2020, we completed six acquisitions for total purchase consideration of $359 million.(b) Other Acquisition and Divestiture Information Total transaction costs related to acquisition and divestiture activities during fiscal 2022, 2021, and 2020 were $50 million, $46 million, and $21 million, respectively. These transaction costs were expensed as incurred in G&A expenses in the Consolidated Statements of Operations. The goodwill generated from acquisitions completed during fiscal 2022 is primarily related to expected synergies. The goodwill is generally not deductible for income tax purposes.72
