Intangible Assets and Goodwill Net amounts excluding fully amortized intangible assets, consist of the following (in millions):
| | | | | | | | | | | | | | | | | | |
| | March 31, 2026 |
| | Gross Amount | | Accumulated Amortization | | Net Amount |
| Core and developed technology | | $ | 7,039.6 | | | $ | (5,212.9) | | | $ | 1,826.7 | |
| Customer-related | | 202.5 | | | (165.3) | | | 37.2 | |
| | | | | | |
| | | | | | |
| In-process research and development | | 7.0 | | | — | | | 7.0 | |
| Software licenses | | 285.9 | | | (123.4) | | | 162.5 | |
| | | | | | |
| Total | | $ | 7,535.0 | | | $ | (5,501.6) | | | $ | 2,033.4 | |
| | | | | | | | | | | | | | | | | | |
| | March 31, 2025 |
| | Gross Amount | | Accumulated Amortization | | Net Amount |
| Core and developed technology | | $ | 7,149.9 | | | $ | (4,981.6) | | | $ | 2,168.3 | |
| Customer-related | | 199.5 | | | (152.8) | | | 46.7 | |
| | | | | | |
| | | | | | |
| In-process research and development | | 50.8 | | | — | | | 50.8 | |
| Software licenses | | 259.3 | | | (136.1) | | | 123.2 | |
| | | | | | |
| Total | | $ | 7,659.5 | | | $ | (5,270.5) | | | $ | 2,389.0 | |
During the twelve months ended March 31, 2025, due to acquisitions, the Company acquired $50.8 million of in-process research and development, $2.8 million of customer-related intangible assets, and $1.1 million of software license intangible assets. The $50.8 million of acquired in-process research and development was reclassified to core and developed technology during the twelve months ended March 31, 2026.
The following is an expected amortization schedule for the intangible assets for fiscal 2027 through fiscal 2031, absent any future acquisitions or impairment charges (in millions):
| | | | | | | | |
| Fiscal Year Ending March 31, | | Amortization Expense |
| 2027 | | $ | 454.8 | |
| 2028 | | $ | 344.0 | |
| 2029 | | $ | 270.2 | |
| 2030 | | $ | 258.1 | |
| 2031 | | $ | 231.3 | |
The Company amortizes intangible assets over their expected useful lives, which range between 1 and 15 years. Amortization expense attributed to intangible assets are assigned to cost of sales and operating expenses as follows (in millions):
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Fiscal Year Ended March 31, | | | | |
| 2026 | | 2025 | | 2024 | | | | | | | | |
| Amortization expense charged to cost of sales | $ | 20.7 | | | $ | 18.5 | | | $ | 12.2 | | | | | | | | | |
| Amortization expense charged to operating expense | 513.6 | | | 565.8 | | | 676.9 | | | | | | | | | |
| Total amortization expense | $ | 534.3 | | | $ | 584.3 | | | $ | 689.1 | | | | | | | | | |
Goodwill activity by segment was as follows (in millions):
| | | | | | | | | | | |
| | Semiconductor Products Reporting Unit | | Technology Licensing Reporting Unit |
| Balance at March 31, 2024 | $ | 6,656.2 | | | $ | 19.2 | |
| Additions | 9.4 | | | — | |
| Balance at March 31, 2025 | $ | 6,665.6 | | | $ | 19.2 | |
| Additions | 10.7 | | | — | |
| Balance at March 31, 2026 | $ | 6,676.3 | | | $ | 19.2 | |
At March 31, 2026, the Company applied a qualitative goodwill impairment test to its two reporting units, and concluded that goodwill was not impaired. Through March 31, 2026, the Company has never recorded a goodwill impairment charge.
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.