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INTANGIBLE ASSETS AND GOODWILL
 12 Months Ended
May 31, 2023
Goodwill And Intangible Assets Disclosure [Abstract]  
INTANGIBLE ASSETS AND GOODWILL
6.
INTANGIBLE ASSETS AND GOODWILL

The changes in intangible assets for fiscal 2023 and the net book value of intangible assets as of May 31, 2023 and 2022 were as follows:

 

 

Intangible Assets, Gross

 

 

Accumulated Amortization

 

 

Intangible Assets, Net

 

 

Weighted
Average

 

(Dollars in millions)

 

May 31,
 2022

 

 

Additions &
Adjustments, net (1)

 

 

Retirements

 

 

May 31,
 2023

 

 

May 31,
 2022

 

 

Expense

 

 

Retirements

 

 

May 31,
 2023

 

 

May 31,
 2022

 

 

May 31,
 2023

 

 

Useful
Life(2)

 

Developed technology

 

$

3,966

 

 

$

2,379

 

 

$

(2,045

)

 

$

4,300

 

 

$

(3,660

)

 

$

(792

)

 

$

2,045

 

 

$

(2,407

)

 

$

306

 

 

$

1,893

 

 

 

4

 

Cloud services and license support agreements and related relationships

 

 

5,260

 

 

 

4,318

 

 

 

(122

)

 

 

9,456

 

 

 

(4,194

)

 

 

(1,507

)

 

 

122

 

 

 

(5,579

)

 

 

1,066

 

 

 

3,877

 

 

 

7

 

Cloud license and on-premise license agreements and related relationships

 

 

356

 

 

 

2,437

 

 

 

(105

)

 

 

2,688

 

 

 

(343

)

 

 

(459

)

 

 

105

 

 

 

(697

)

 

 

13

 

 

 

1,991

 

 

 

7

 

Other

 

 

865

 

 

 

2,845

 

 

 

(128

)

 

 

3,582

 

 

 

(810

)

 

 

(824

)

 

 

128

 

 

 

(1,506

)

 

 

55

 

 

 

2,076

 

 

 

4

 

Total intangible assets, net

 

$

10,447

 

 

$

11,979

 

 

$

(2,400

)

 

$

20,026

 

 

$

(9,007

)

 

$

(3,582

)

 

$

2,400

 

 

$

(10,189

)

 

$

1,440

 

 

$

9,837

 

 

 

 

 

(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 2023.

As of May 31, 2023, estimated future amortization expenses related to intangible assets were as follows (in millions):

Fiscal 2024

 

$

2,994

 

Fiscal 2025

 

 

2,283

 

Fiscal 2026

 

 

1,620

 

Fiscal 2027

 

 

664

 

Fiscal 2028

 

 

635

 

Thereafter

 

 

1,641

 

Total intangible assets, net

 

$

9,837

 

 

The changes in the carrying amounts of goodwill, net, which is generally not deductible for tax purposes, for our operating segments for fiscal 2023 and 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)

 

 

152

 

 

 

—

 

 

 

(276

)

 

 

(124

)

Balances as of May 31, 2022

 

 

39,938

 

 

 

2,367

 

 

 

1,506

 

 

 

43,811

 

Goodwill from acquisitions

 

 

17,203

 

 

 

365

 

 

 

1,050

 

 

 

18,618

 

Goodwill adjustments, net(1)

 

 

(81

)

 

 

—

 

 

 

(87

)

 

 

(168

)

Balances as of May 31, 2023

 

$

57,060

 

 

$

2,732

 

 

$

2,469

 

 

$

62,261

 

 

Amounts include any changes in goodwill balances for the period presented that resulted from foreign currency translations and certain other adjustments.