INTANGIBLE ASSETS INCLUDING GOODWILL

3 Months Ended

Jun. 30, 2025

INTANGIBLE ASSETS INCLUDING GOODWILL

NOTE 8. INTANGIBLE ASSETS INCLUDING GOODWILL

Intangible Assets

The following table presents the Company’s intangible asset balances by major asset class.


	At June 30, 2025						At March 31, 2025
	Gross Carrying		Accumulated		Net Carrying		Gross Carrying		Accumulated		Net Carrying
(Dollars in millions)	Amount		Amortization		Amount		Amount		Amortization		Amount
Capitalized software	$	134	$	(38)	$	96	$	216	$	(76)	$	141
Customer relationships*		124		(67)		57		121		(60)		61
Completed technology		13		(3)		10		13		(2)		11
Patents and trademarks*		16		(11)		5		15		(10)		5
Total	$	287	$	(119)	$	168	$	365	$	(148)	$	218

*	Amounts include effects from foreign currency translation.

The net carrying amount of intangible assets decreased by $50 million during the three months ended June 30, 2025, primarily due to the reclassification of certain capitalized software intangibles to prepaid assets and other noncurrent assets resulting from the migration of on-premises software to a cloud-based solution. Aggregate intangible asset amortization expense was $15 million and $19 million for the three months ended June 30, 2025 and 2024, respectively. This included amortization of capitalized software of $8 million and $12 million for the three months ended June 30, 2025, and 2024, respectively, which was reported in “Depreciation of property, equipment and capitalized software” on the Consolidated Statement of Cash Flows.

The future amortization expense relating to intangible assets currently recorded in the Consolidated Balance Sheet was estimated to be the following at June 30, 2025:


	Capitalized		Customer		Completed		Patents and
(Dollars in millions)	Software		Relationships		Technology		Trademarks		Total
Year ending March 31:
2026 (remaining nine months)	$	19	$	17	$	2	$	2	$	40
2027		25		19		3		3		50
2028		25		5		3		—		32
2029		19		5		3		—		26
2030		8		4		—		—		12
Thereafter		—		8		—		—		8

Goodwill

The changes in the goodwill balances by segment for the three months ended June 30, 2025 were as follows:



			Foreign Currency
(Dollars in millions)	Balance at		Translation		Balance at
Segment	March 31, 2025		Adjustments		June 30, 2025
United States	$	11	$	—	$	11
Japan		489		3		491
Principal Markets		92		—		92
Strategic Markets		198		—		198
Total	$	790	$	3	$	793

There were no goodwill impairment losses recorded for the three months ended June 30, 2025 and 2024. Management reviews goodwill for impairment annually and whenever events or changes in circumstances indicate the carrying value of goodwill may not be recoverable by first assessing qualitative factors to determine if it is more likely than not that fair value is less than carrying value.