NetApp, Inc. Goodwill & Intangibles Disclosure
5. Goodwill and Purchased Intangible Assets, Net
Goodwill activity is summarized as follows (in millions):
|
|
Amount |
|
|
Balance as of April 28, 2023 |
|
$ |
2,759 |
|
Additions |
|
|
— |
|
Balance as of April 26, 2024 |
|
|
2,759 |
|
Additions |
|
|
— |
|
Derecognition |
|
|
(36 |
) |
Balance as of April 25, 2025 |
|
$ |
2,723 |
|
During fiscal 2025, we derecognized a portion of the Public Cloud goodwill in connection with the sale of our cloud optimization and management software business known as Spot by NetApp, which formed part of our Public Cloud reportable segment. See "Gains/losses on the sale or derecognition of assets" section contained in Note 6 – Supplemental Financial Information for additional information related to this derecognition.
Goodwill by reportable segment as of April 25, 2025 is as follows (in millions):
|
|
Amount |
|
|
Hybrid Cloud |
|
$ |
1,714 |
|
Public Cloud |
|
|
1,009 |
|
Total goodwill |
|
$ |
2,723 |
|
Purchased intangible assets, net are summarized below (in millions):
|
|
April 25, 2025 |
|
|
April 26, 2024 |
|
||||||||||||||||||
|
|
Gross |
|
|
Accumulated |
|
|
Net |
|
|
Gross |
|
|
Accumulated |
|
|
Net |
|
||||||
|
|
Assets |
|
|
Amortization |
|
|
Assets |
|
|
Assets |
|
|
Amortization |
|
|
Assets |
|
||||||
Developed technology |
|
$ |
55 |
|
|
$ |
(33 |
) |
|
$ |
22 |
|
|
$ |
179 |
|
|
$ |
(108 |
) |
|
$ |
71 |
|
Customer contracts/relationships |
|
|
50 |
|
|
|
(29 |
) |
|
|
21 |
|
|
|
114 |
|
|
|
(62 |
) |
|
|
52 |
|
Other purchased intangibles |
|
|
2 |
|
|
|
(2 |
) |
|
|
— |
|
|
|
6 |
|
|
|
(5 |
) |
|
|
1 |
|
Total purchased intangible assets |
|
$ |
107 |
|
|
$ |
(64 |
) |
|
$ |
43 |
|
|
$ |
299 |
|
|
$ |
(175 |
) |
|
$ |
124 |
|
During fiscal 2025, we retired $25 million of fully amortized intangible assets. We also derecognized certain intangible assets, net in connection with the sale of our Spot by NetApp business. See "Gains/losses on the sale or derecognition of assets" section contained in Note 6 – Supplemental Financial Information for additional information related to this derecognition.
Amortization expense for purchased intangible assets is summarized below (in millions):
|
|
Year Ended |
|
|
Statements of |
|||||||||
|
|
April 25, 2025 |
|
|
April 26, 2024 |
|
|
April 28, 2023 |
|
|
Income |
|||
Developed technology |
|
$ |
28 |
|
|
$ |
34 |
|
|
$ |
42 |
|
|
Cost of revenues |
Customer contracts/relationships |
|
|
19 |
|
|
|
22 |
|
|
|
24 |
|
|
Operating expenses |
Other purchased intangibles |
|
|
— |
|
|
|
1 |
|
|
|
2 |
|
|
Operating expenses |
Total |
|
$ |
47 |
|
|
$ |
57 |
|
|
$ |
68 |
|
|
|
As of April 25, 2025, future amortization expense related to purchased intangible assets is as follows (in millions):
Fiscal Year |
|
Amount |
|
|
2026 |
|
$ |
21 |
|
2027 |
|
|
21 |
|
2028 |
|
|
1 |
|
2029 |
|
|
— |
|
Total |
|
$ |
43 |
|
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Jun 9, 2025 | Showing above |
| 2024 | Jun 10, 2024 | |
| 2023 | Jun 14, 2023 | |
| 2022 | Jun 16, 2022 | |
| 2021 | Jun 21, 2021 | |
| 2020 | Jun 15, 2020 | |
| 2019 | Jun 18, 2019 | |
| 2018 | Jun 19, 2018 | |
| 2017 | Jun 20, 2017 | |
| 2016 | Jun 22, 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.