| INTANGIBLE ASSETS AND GOODWILL |
|
4. |
INTANGIBLE ASSETS AND GOODWILL |
The changes in intangible assets for fiscal 2020 and the net book value of intangible assets as of November 30, 2019 and May 31, 2019 were as follows:
|
|
|
Intangible Assets, Gross |
|
|
Accumulated Amortization |
|
|
Intangible Assets, Net |
|
|
Weighted
Average
Useful
Life(2) |
|
|
(Dollars in millions) |
|
May 31,
2019 |
|
|
Additions &
Adjustments, net(1) |
|
|
November 30,
2019 |
|
|
May 31,
2019 |
|
|
Expense |
|
|
November 30,
2019 |
|
|
May 31,
2019 |
|
|
November 30,
2019 |
|
|
|
Developed technology |
|
$ |
5,406 |
|
|
$ |
17 |
|
|
$ |
5,423 |
|
|
$ |
(3,467 |
) |
|
$ |
(415 |
) |
|
$ |
(3,882 |
) |
|
$ |
1,939 |
|
|
$ |
1,541 |
|
|
|
5 |
|
|
Cloud services and license support agreements and related relationships |
|
|
5,693 |
|
|
|
15 |
|
|
|
5,708 |
|
|
|
(2,711 |
) |
|
|
(342 |
) |
|
|
(3,053 |
) |
|
|
2,982 |
|
|
|
2,655 |
|
|
|
4 |
|
|
Other |
|
|
1,589 |
|
|
|
2 |
|
|
|
1,591 |
|
|
|
(1,231 |
) |
|
|
(64 |
) |
|
|
(1,295 |
) |
|
|
358 |
|
|
|
296 |
|
|
|
4 |
|
|
Total intangible assets, net |
|
$ |
12,688 |
|
|
$ |
34 |
|
|
$ |
12,722 |
|
|
$ |
(7,409 |
) |
|
$ |
(821 |
) |
|
$ |
(8,230 |
) |
|
$ |
5,279 |
|
|
$ |
4,492 |
|
|
|
|
|
|
(1) |
Amounts also include any changes in intangible asset balances for the periods presented that resulted from foreign currency translations.
|
|
(2) |
Represents weighted-average useful lives (in years) of intangible assets acquired during fiscal 2020. |
As of November 30, 2019, estimated future amortization expenses related to intangible assets were as follows (in millions):
|
Remainder of fiscal 2020 |
|
$ |
766 |
|
|
Fiscal 2021 |
|
|
1,347 |
|
|
Fiscal 2022 |
|
|
1,098 |
|
|
Fiscal 2023 |
|
|
675 |
|
|
Fiscal 2024 |
|
|
445 |
|
|
Fiscal 2025 |
|
|
126 |
|
|
Thereafter |
|
|
35 |
|
|
Total intangible assets, net |
|
$ |
4,492 |
|
The changes in the carrying amounts of goodwill, net, which is generally not deductible for tax purposes, for our operating segments for the six months ended November 30, 2019 were as follows:
|
(in millions) |
|
Cloud and License |
|
|
Hardware |
|
|
Services |
|
|
Total Goodwill, net |
|
|
Balances as of May 31, 2019 |
|
$ |
39,633 |
|
|
$ |
2,367 |
|
|
$ |
1,779 |
|
|
$ |
43,779 |
|
|
Goodwill from acquisitions |
|
|
74 |
|
|
|
— |
|
|
|
— |
|
|
|
74 |
|
|
Goodwill adjustments, net(1) |
|
|
(38 |
) |
|
|
— |
|
|
|
(5 |
) |
|
|
(43 |
) |
|
Balances as of November 30, 2019 |
|
$ |
39,669 |
|
|
$ |
2,367 |
|
|
$ |
1,774 |
|
|
$ |
43,810 |
|
|
(1) |
Pursuant to our business combinations accounting policy, we recorded goodwill adjustments for the effects on goodwill of changes to net assets acquired during the period that such a change is identified, provided that any such change is within the measurement period (up to one year from the date of the acquisition). Amounts also include any changes in goodwill balances for the period presented that resulted from foreign currency translations. |
|