Notes to Financial Statements

NOTE 9  INTANGIBLE ASSETS

The components of intangible assets, all of which are finite-lived, were as follows:

 

(In millions)

 

Gross
Carrying
Amount

 

 

Accumulated
Amortization

 

 

Net
Carrying
Amount

 

 

Gross
Carrying
Amount

 

Accumulated
Amortization

 

 

Net
Carrying
Amount

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31,

2018

 

 

June 30,

2018

 

 

 

 

 

 

 

 

Technology-based

 

$

7,548

 

 

$

(5,383

)

 

$

2,165

 

 

$

7,220

 

 

$

(5,018

)

 

$

2,202

 

Customer-related

 

 

4,741

 

 

 

(1,487

)

 

 

3,254

 

 

 

4,031

 

 

 

(1,205

)

 

 

2,826

 

Marketing-related

 

 

4,177

 

 

 

(1,197

)

 

 

2,980

 

 

 

4,006

 

 

 

(1,071

)

 

 

2,935

 

Contract-based

 

 

574

 

 

 

(491

)

 

 

83

 

 

 

679

 

 

 

(589

)

 

 

90

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

  17,040

(a)

 

$

  (8,558

)

 

$

 8,482

 

 

$

  15,936

 

 

$

  (7,883

)

 

$

 8,053

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(a)

Includes intangible assets of $1.3 billion related to GitHub. See Note 7 – Business Combinations for further information.

Intangible assets amortization expense was $530 million and $1.1 billion for the three and six months ended December 31, 2018, respectively, and $562 million and $1.1 billion for the three and six months ended December 31, 2017, respectively.

The following table outlines the estimated future amortization expense related to intangible assets held as of December 31, 2018:

 

(In millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ending June 30,

 

 

 

 

 

 

2019 (excluding the six months ended December 31, 2018)

 

$

871

 

2020

 

 

1,503

 

2021

 

 

1,282

 

2022

 

 

1,182

 

2023

 

 

1,009

 

Thereafter

 

 

2,635

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

8,482