Gen Digital Inc.GEN
Gen Digital Inc. Goodwill & Intangibles Disclosure
Goodwill and Intangible Assets
Goodwill
Subsequent to the completion of our acquisition of MoneyLion on April 17, 2025, our portfolio now spans two reportable segments, Cyber Safety Platform and Trust-Based Solutions. See Note 17 for additional information on our reportable segments and Note 4 for additional information on our acquisition of MoneyLion.
We perform an impairment assessment of goodwill at the reporting unit level at least annually in the fourth quarter of each fiscal year, or more frequently if events or changes in circumstances indicate that the asset may be impaired. As a result of the change in reportable segments, our reporting units also changed. We used the relative fair value method to allocate goodwill to the associated reporting units. In connection with the preparation of our Condensed Financial Statements for the fiscal quarter ended July 4, 2025, we tested goodwill for impairment immediately before and after the change. As a result of these analyses, we determined that goodwill was not impaired before or after the change.
To determine the fair value of a reporting unit, we utilized a combination of the income and market approaches, applying equal weighting to both. The income approach is estimated through discounted cash flow analysis, which requires us to use significant estimates and assumptions, including long-term growth rates, discount rates, and other inputs. The market approach estimates the fair value of the reporting unit by utilizing the market comparable method, which is based on various market-based valuation multiples.
The changes in the carrying amount of goodwill are as follows:
| (In millions) | Cyber Safety Platform | Trust-Based Solutions | Total | ||||||||||||||
| Balance as of March 29, 2024 | $ | 7,389 | $ | 2,821 | $ | 10,210 | |||||||||||
Acquisitions | — | 52 | 52 | ||||||||||||||
| Translation adjustments | (18) | (7) | (25) | ||||||||||||||
| Balance as of March 28, 2025 | 7,371 | 2,866 | 10,237 | ||||||||||||||
Acquisition | — | 731 | 731 | ||||||||||||||
| Translation adjustments | 20 | 8 | 28 | ||||||||||||||
| Balance as of April 3, 2026 | $ | 7,391 | $ | 3,605 | $ | 10,996 | |||||||||||
Intangible assets, net
The following table summarizes the components of our intangible assets, net:
| April 3, 2026 | March 28, 2025 | ||||||||||||||||||||||||||||||||||
| (In millions) | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | |||||||||||||||||||||||||||||
| Customer relationships | $ | 1,220 | $ | (620) | $ | 600 | $ | 1,159 | $ | (442) | $ | 717 | |||||||||||||||||||||||
| Developed technology | 1,450 | (825) | 625 | 1,332 | (595) | 737 | |||||||||||||||||||||||||||||
| Other | 179 | (47) | 132 | 98 | (24) | 74 | |||||||||||||||||||||||||||||
| Total finite-lived intangible assets | 2,849 | (1,492) | 1,357 | 2,589 | (1,061) | 1,528 | |||||||||||||||||||||||||||||
| Indefinite-lived trade names | 739 | — | 739 | 739 | — | 739 | |||||||||||||||||||||||||||||
| Total intangible assets | $ | 3,588 | $ | (1,492) | $ | 2,096 | $ | 3,328 | $ | (1,061) | $ | 2,267 | |||||||||||||||||||||||
Amortization expense for purchased intangible assets is summarized below:
| Year Ended | Consolidated Statements of Operations Classification | ||||||||||||||||||||||
| (In millions) | April 3, 2026 | March 28, 2025 | March 29, 2024 | ||||||||||||||||||||
| Customer relationships and other | $ | 218 | $ | 174 | $ | 233 | Operating expenses | ||||||||||||||||
Developed technology and other | 259 | 227 | 229 | Cost of revenues | |||||||||||||||||||
| Total | $ | 477 | $ | 401 | $ | 462 | |||||||||||||||||
As of April 3, 2026, future amortization expense related to intangible assets that have finite lives is as follows by fiscal year:
| (In millions) | April 3, 2026 | ||||
| 2027 | $ | 460 | |||
| 2028 | 455 | ||||
| 2029 | 281 | ||||
| 2030 | 110 | ||||
| 2031 | 16 | ||||
| Thereafter | 35 | ||||
| Total | $ | 1,357 | |||
Asset purchase agreement
In October 2025, we entered into a purchase agreement to sell certain developed technology and assets for $40 million plus the assumption of liabilities related to our digital identity offering to a third-party, who previously licensed the use of the intellectual property from us. We completed the transaction in November 2025. Pursuant to the sale, we derecognized developed technology and other assets, net of associated liabilities, with an aggregate carrying value of approximately $22 million. We accounted for the transaction as a sale of nonfinancial assets under ASC Topic 610-20, Gains and Losses from the Derecognition of Nonfinancial assets. We recognized a gain on sale of nonfinancial assets of approximately $15 million during fiscal 2026, which is included as part of Other income (expense), net in our Consolidated Statement of Operations.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2026 | May 21, 2026 | Showing above |
| 2025 | May 15, 2025 | |
| 2024 | May 16, 2024 | |
| 2023 | May 25, 2023 | |
| 2022 | May 20, 2022 | |
| 2021 | May 21, 2021 | |
| 2020 | May 28, 2020 | |
| 2019 | May 24, 2019 | |
| 2018 | Oct 26, 2018 | |
| 2017 | May 19, 2017 | |
| 2016 | May 20, 2016 | |
About Goodwill & Intangibles Disclosures
Goodwill and intangible asset disclosures reveal the premium paid in acquisitions and how management assesses whether that premium retains its value. Since goodwill is no longer amortized under US GAAP, the annual impairment test is the only mechanism that adjusts carrying values downward — making the assumptions behind that test critically important for investors.
Key signals: a history of goodwill impairments suggests management consistently overpays for acquisitions. Watch the gap between reporting unit fair value and carrying amount — when fair value exceeds carrying amount by less than 10-20%, a small decline in business performance could trigger a write-down. For finite-lived intangibles, examine useful life assumptions across customer relationships, technology, and trade names; aggressive estimates inflate near-term earnings. Compare total intangibles-to-total-assets ratios against peers to assess acquisition dependency. Rising goodwill as a percentage of equity can signal balance sheet fragility.