INTANGIBLE ASSETS INCLUDING GOODWILL

3 Months Ended

Jun. 30, 2026

INTANGIBLE ASSETS INCLUDING GOODWILL

INTANGIBLE ASSETS INCLUDING GOODWILL

NOTE 9. INTANGIBLE ASSETS INCLUDING GOODWILL

Intangible Assets

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


		At June 30, 2026									At March 31, 2026
		Gross Carrying			Accumulated			Net Carrying			Gross Carrying			Accumulated			Net Carrying
(Dollars in millions)		Amount			Amortization			Amount			Amount			Amortization			Amount
Capitalized software		$	186		$	(68)		$	118		$	175		$	(59)		$	116
Customer relationships*			115			(81)			34			116			(77)			39
Completed technology			13			(6)			7			13			(5)			8
Patents and trademarks*			14			(12)			2			14			(12)			2
Total		$	328		$	(167)		$	161		$	318		$	(153)		$	165

*	Amounts include effects from foreign currency translation.

The net carrying amount of intangible assets decreased by $4 million during the three months ended June 30, 2026, primarily due to amortization, partially offset by capitalized software added during the period. Aggregate intangible asset amortization expense was $15 million for the three months ended June 30, 2026 and 2025. This included amortization of capitalized software of $9 million and $8 million for the three months ended June 30, 2026, and 2025, 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, 2026:


		Capitalized			Customer			Completed			Patents and
(Dollars in millions)		Software			Relationships			Technology			Trademarks			Total
Year ending March 31:
2027 (remaining nine months)		$	29		$	13		$	2		$	2		$	45
2028			35			5			3			—			42
2029			29			5			3			—			36
2030			18			4			—			—			22
2031			8			4			—			—			11
Thereafter			—			4			—			—			4

Goodwill

The changes in the goodwill balances by segment for the three months ended June 30, 2026 were as follows:



					Foreign Currency
(Dollars in millions)		Balance at			Translation			Balance at
Segment		March 31, 2026			Adjustments			June 30, 2026
United States		$	11		$	—		$	11
Japan			484			(1)			483
Principal Markets			92			—			92
Strategic Markets			198			—			198
Total		$	786		$	(1)		$	784

There were no goodwill impairment losses recorded for the three months ended June 30, 2026 and 2025. 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.