NOTE 10 — INTANGIBLE ASSETS
The components of intangible assets, all of which are finite-lived, were as follows:
|
(In millions) |
|
Gross |
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|
Accumulated |
|
|
Net Carrying |
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Gross |
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Accumulated |
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|
Net Carrying |
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June 30, |
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2020 |
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2019 |
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Technology-based |
|
$ |
8,160 |
|
|
$ |
(6,381 |
) |
|
$ |
1,779 |
|
|
$ |
7,691 |
|
|
$ |
(5,771 |
) |
|
$ |
1,920 |
|
|
Customer-related |
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|
4,967 |
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|
(2,320 |
) |
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|
2,647 |
|
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|
4,709 |
|
|
|
(1,785 |
) |
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|
2,924 |
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|
Marketing-related |
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|
4,158 |
|
|
|
(1,588 |
) |
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|
2,570 |
|
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|
4,165 |
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|
(1,327 |
) |
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|
2,838 |
|
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Contract-based |
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|
474 |
|
|
|
(432 |
) |
|
|
42 |
|
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|
574 |
|
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|
(506 |
) |
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|
68 |
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Total |
|
$ |
17,759 |
|
|
$ |
(10,721 |
) |
|
$ |
7,038 |
|
|
$ |
17,139 |
(a) |
|
$ |
(9,389 |
) |
|
$ |
7,750 |
|
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(a) |
Includes intangible assets of $1.3 billion related to GitHub. See Note 8 – Business Combinations for further information. |
No material impairments of intangible assets were identified during fiscal years 2020, 2019, or 2018. We estimate that we have no significant residual value related to our intangible assets.
The components of intangible assets acquired during the periods presented were as follows:
|
(In millions) |
|
Amount |
|
|
Weighted Average Life |
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|
Amount |
|
|
Weighted Average Life |
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Year Ended June 30, |
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2020 |
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2019 |
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Technology-based |
|
$ |
531 |
|
|
|
6 years |
|
|
$ |
814 |
|
|
|
5 years |
|
|
Customer-related |
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|
303 |
|
|
|
5 years |
|
|
|
710 |
|
|
|
8 years |
|
|
Marketing-related |
|
|
2 |
|
|
|
2 years |
|
|
|
177 |
|
|
|
10 years |
|
|
Contract-based |
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|
0 |
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|
0 years |
|
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|
7 |
|
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3 years |
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Total |
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$ |
836 |
|
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|
5 years |
|
|
$ |
1,708 |
|
|
|
7 years |
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Intangible assets amortization expense was $1.6 billion, $1.9 billion, and $2.2 billion for fiscal years 2020, 2019, and 2018, respectively.
The following table outlines the estimated future amortization expense related to intangible assets held as of June 30, 2020:
|
(In millions) |
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Year Ending June 30, |
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|
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|
2021 |
|
$ |
1,483 |
|
|
2022 |
|
|
1,399 |
|
|
2023 |
|
|
1,219 |
|
|
2024 |
|
|
851 |
|
|
2025 |
|
|
447 |
|
|
Thereafter |
|
|
1,639 |
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Total |
|
$ |
7,038 |
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