| INTANGIBLE ASSETS AND GOODWILL |
|
6. |
INTANGIBLE ASSETS AND GOODWILL |
The changes in intangible assets for fiscal 2022 and the net book value of intangible assets as of May 31, 2022 and 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) |
|
|
Retirements |
|
|
May 31,
2022 |
|
|
May 31,
2021 |
|
|
Expense |
|
|
Retirements |
|
|
May 31,
2022 |
|
|
May 31,
2021 |
|
|
May 31,
2022 |
|
|
|
|
Developed technology |
|
$ |
4,237 |
|
|
$ |
165 |
|
|
$ |
(436 |
) |
|
$ |
3,966 |
|
|
$ |
(3,621 |
) |
|
$ |
(475 |
) |
|
$ |
436 |
|
|
$ |
(3,660 |
) |
|
$ |
616 |
|
|
$ |
306 |
|
|
|
3 |
|
|
Cloud services and license support agreements and related relationships |
|
|
5,497 |
|
|
|
(5 |
) |
|
|
(232 |
) |
|
|
5,260 |
|
|
|
(3,834 |
) |
|
|
(592 |
) |
|
|
232 |
|
|
|
(4,194 |
) |
|
|
1,663 |
|
|
|
1,066 |
|
|
N/A |
|
|
Other |
|
|
1,269 |
|
|
|
— |
|
|
|
(48 |
) |
|
|
1,221 |
|
|
|
(1,118 |
) |
|
|
(83 |
) |
|
|
48 |
|
|
|
(1,153 |
) |
|
|
151 |
|
|
|
68 |
|
|
N/A |
|
|
Total intangible assets, net |
|
$ |
11,003 |
|
|
$ |
160 |
|
|
$ |
(716 |
) |
|
$ |
10,447 |
|
|
$ |
(8,573 |
) |
|
$ |
(1,150 |
) |
|
$ |
716 |
|
|
$ |
(9,007 |
) |
|
$ |
2,430 |
|
|
$ |
1,440 |
|
|
|
|
|
|
(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 May 31, 2022, estimated future amortization expenses related to intangible assets were as follows (in millions):
|
Fiscal 2023 |
|
$ |
750 |
|
|
Fiscal 2024 |
|
|
508 |
|
|
Fiscal 2025 |
|
|
148 |
|
|
Fiscal 2026 |
|
|
24 |
|
|
Fiscal 2027 |
|
|
6 |
|
|
Thereafter |
|
|
4 |
|
|
Total intangible assets, net |
|
$ |
1,440 |
|
The changes in the carrying amounts of goodwill, net, which is generally not deductible for tax purposes, for our operating segments for fiscal 2022 and 2021 were as follows:
|
(in millions) |
|
Cloud and License |
|
|
Hardware |
|
|
Services |
|
|
Total Goodwill, net |
|
|
Balances as of May 31, 2020 |
|
$ |
39,637 |
|
|
$ |
2,367 |
|
|
$ |
1,765 |
|
|
$ |
43,769 |
|
|
Goodwill adjustments, net(1) |
|
|
149 |
|
|
|
— |
|
|
|
17 |
|
|
|
166 |
|
|
Balances as of May 31, 2021 |
|
|
39,786 |
|
|
|
2,367 |
|
|
|
1,782 |
|
|
|
43,935 |
|
|
Goodwill adjustments, net(1) |
|
|
152 |
|
|
|
— |
|
|
|
(276 |
) |
|
|
(124 |
) |
|
Balances as of May 31, 2022 |
|
$ |
39,938 |
|
|
$ |
2,367 |
|
|
$ |
1,506 |
|
|
$ |
43,811 |
|
|
(1) |
Amounts include any changes in goodwill balances for the period presented that substantially resulted from foreign currency translations and, during fiscal 2022, the realignment of an operating segment component. |
|