| INTANGIBLE ASSETS AND GOODWILL |
|
4. |
INTANGIBLE ASSETS AND GOODWILL |
The changes in intangible assets for fiscal 2022 and the net book value of intangible assets as of February 28, 2022 and May 31, 2021 were as follows:
|
|
|
Intangible Assets, Gross |
|
|
Accumulated Amortization |
|
|
Intangible Assets, Net |
|
|
Weighted
Average
Useful
Life(2) |
|
|
(Dollars in millions) |
|
May 31,
2021 |
|
|
Additions &
Adjustments, net(1) |
|
|
February 28,
2022 |
|
|
May 31,
2021 |
|
|
Expense |
|
|
February 28,
2022 |
|
|
May 31,
2021 |
|
|
February 28,
2022 |
|
|
|
|
Developed technology |
|
$ |
4,237 |
|
|
$ |
145 |
|
|
$ |
4,382 |
|
|
$ |
(3,621 |
) |
|
$ |
(364 |
) |
|
$ |
(3,985 |
) |
|
$ |
616 |
|
|
$ |
397 |
|
|
|
3 |
|
|
Cloud services and license support agreements and related relationships |
|
|
5,497 |
|
|
|
(5 |
) |
|
|
5,492 |
|
|
|
(3,834 |
) |
|
|
(455 |
) |
|
|
(4,289 |
) |
|
|
1,663 |
|
|
|
1,203 |
|
|
N.A. |
|
|
Other |
|
|
1,269 |
|
|
|
— |
|
|
|
1,269 |
|
|
|
(1,118 |
) |
|
|
(63 |
) |
|
|
(1,181 |
) |
|
|
151 |
|
|
|
88 |
|
|
N.A. |
|
|
Total intangible assets, net |
|
$ |
11,003 |
|
|
$ |
140 |
|
|
$ |
11,143 |
|
|
$ |
(8,573 |
) |
|
$ |
(882 |
) |
|
$ |
(9,455 |
) |
|
$ |
2,430 |
|
|
$ |
1,688 |
|
|
|
|
|
|
(1) |
Amounts also included 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 2022. |
As of February 28, 2022, estimated future amortization expenses related to intangible assets were as follows (in millions):
|
Remainder of fiscal 2022 |
|
$ |
267 |
|
|
Fiscal 2023 |
|
|
744 |
|
|
Fiscal 2024 |
|
|
501 |
|
|
Fiscal 2025 |
|
|
142 |
|
|
Fiscal 2026 |
|
|
24 |
|
|
Fiscal 2027 |
|
|
6 |
|
|
Thereafter |
|
|
4 |
|
|
Total intangible assets, net |
|
$ |
1,688 |
|
The changes in the carrying amounts of goodwill, net, which is generally not deductible for tax purposes, for our operating segments for the nine months ended February 28, 2022 were as follows:
|
(in millions) |
|
Cloud and License |
|
|
Hardware |
|
|
Services |
|
|
Total Goodwill, net |
|
|
Balances as of May 31, 2021 |
|
$ |
39,786 |
|
|
$ |
2,367 |
|
|
$ |
1,782 |
|
|
$ |
43,935 |
|
|
Goodwill adjustments, net(1) |
|
|
165 |
|
|
|
— |
|
|
|
(267 |
) |
|
|
(102 |
) |
|
Balances as of February 28, 2022 |
|
$ |
39,951 |
|
|
$ |
2,367 |
|
|
$ |
1,515 |
|
|
$ |
43,833 |
|
|
(1) |
Amounts include any changes in goodwill balances for the period presented that resulted from foreign currency translations and the realignment of an operating segment component. |
|