INTANGIBLE ASSETS AND GOODWILL

3 Months Ended

Aug. 31, 2012

Intangible Assets and Goodwill [Abstract]

INTANGIBLE ASSETS AND GOODWILL

5. INTANGIBLE ASSETS AND GOODWILL

The changes in intangible assets for fiscal 2013 and the net book value of intangible assets at August 31, 2012 and May 31, 2012 were as follows:

		Intangible Assets, Gross			Accumulated Amortization			Intangible Assets, Net		Weighted
		May 31,		August 31,	May 31,		August 31,	May 31,	August 31,	Average
(Dollars in millions)		2012	Additions	2012	2012	Expense	2012	2012	2012	Useful Life(1)
Software support agreements and related relationships		$ 5,294	$ —	$5,294	$ (3,330)	$ (147)	$ (3,477)	$ 1,964	$1,817	N.A.
Hardware systems support agreements and related relationships		768	—	768	(266)	(29)	(295)	502	473	N.A.
Developed technology		6,908	34	6,942	(4,651)	(220)	(4,871)	2,257	2,071	5 years
Core technology		2,549	7	2,556	(1,609)	(82)	(1,691)	940	865	5 years
Customer relationships and contract backlog		2,260	4	2,264	(1,287)	(100)	(1,387)	973	877	1 year
Cloud software subscriptions and related relationships		989	48	1,037	(42)	(25)	(67)	947	970	6 years
Trademarks		597	3	600	(292)	(16)	(308)	305	292	6 years
Total intangible assets subject to amortization		19,365	96	19,461	(11,477)	(619)	(12,096)	7,888	7,365	6 years
In-process research and development		11	—	11	—	—	—	11	11	N.A.
Total intangible assets, net		$ 19,376	$  96	$19,472	$ (11,477)	$ (619)	$ (12,096)	$       7,899	$ 7,376
(1)	Represents weighted average useful lives of intangible assets acquired during fiscal 2013.

Total amortization expense related to our intangible assets was $619 million and $592 million for the three months ended August 31, 2012 and 2011, respectively. As of August 31, 2012, estimated future amortization expenses related to intangible assets were as follows (in millions):

Remainder of Fiscal 2013	$      1,712
Fiscal 2014	1,955
Fiscal 2015	1,505
Fiscal 2016	955
Fiscal 2017	398
Fiscal 2018	278
Thereafter	562
Total intangible assets subject to amortization	7,365
In-process research and development	11
Total intangible assets, net	$       7,376

The changes in the carrying amounts of goodwill, which is generally not deductible for tax purposes, for our operating segments for the three months ended August 31, 2012 were as follows:

(in millions)	New Software Licenses and Cloud Software Subscriptions	Software License Updates and Product Support	Hardware Systems Support	Other(3)	Total
Balances as of May 31, 2012	$ 7,367	$ 12,479	$ 1,193	$ 4,080	$ 25,119
Allocation of goodwill (1)	2,346	—	—	(2,346)	—
Goodwill from acquisitions	270	—	—	—	270
Goodwill adjustments(2)	(91)	(19)	4	5	(101)
Balances as of August 31, 2012	$ 9,892	$ 12,460	$ 1,197	$ 1,739	$ 25,288

(1)	Represents the allocation of goodwill to our operating segments upon completion of our intangible asset valuations.
(2)	Pursuant to our business combinations accounting policy, we recorded goodwill adjustments for the effect on goodwill of changes to net assets acquired during the measurement period (up to one year from the date of an acquisition). Goodwill adjustments were not significant to our previously reported operating results or financial position.
(3)	Represents goodwill allocated to our other operating segments and goodwill to be allocated to our operating segments upon completion of our intangible asset valuations, if any.