INTANGIBLE ASSETS AND GOODWILL

9 Months Ended

Feb. 28, 2013

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 February 28, 2013 and May 31, 2012 were as follows:

		Intangible Assets, Gross						Accumulated Amortization						Intangible Assets, Net				Weighted
		May 31,				February 28,		May 31,				February 28,		May 31,		February 28,		Average
(Dollars in millions)		2012		Additions		2013		2012		Expense		2013		2012		2013		Useful Life(1)
Software support agreements and related relationships		$	5,294	$	4	$	5,298	$	(3,330)	$	(437)	$	(3,767)	$	1,964	$	1,531	5 years
Hardware systems support agreements and related relationships			768		8		776		(266)		(90)		(356)		502		420	5 years
Developed technology			6,908		230		7,138		(4,651)		(626)		(5,277)		2,257		1,861	6 years
Core technology			2,549		30		2,579		(1,609)		(246)		(1,855)		940		724	3 years
Customer relationships and contract backlog			2,260		40		2,300		(1,287)		(262)		(1,549)		973		751	2 years
Cloud software subscriptions and related relationships			989		238		1,227		(42)		(81)		(123)		947		1,104	8 years
Trademarks			597		13		610		(292)		(47)		(339)		305		271	5 years
Total intangible assets subject to amortization			19,365		563		19,928		(11,477)		(1,789)		(13,266)		7,888		6,662	6 years
In-process research and development			11		(11)		—		—		—		—		11		—	N.A.
Total intangible assets, net		$	19,376	$	552	$	19,928	$	(11,477)	$	(1,789)	$	(13,266)	$	7,899	$	6,662
(1)	Represents weighted average useful lives of intangible assets acquired during fiscal 2013.

Total amortization expense related to our intangible assets was $586 million and $1.8 billion for the three and nine months ended February 28, 2013, respectively, and $606 million and $1.8 billion for the three and nine months ended February 29, 2012, respectively. As of February 28, 2013, estimated future amortization expenses related to intangible assets were as follows (in millions):

Remainder of Fiscal 2013	$	582
Fiscal 2014		2,043
Fiscal 2015		1,582
Fiscal 2016		1,020
Fiscal 2017		450
Fiscal 2018		324
Thereafter		661
Total intangible assets, net	$	6,662

The changes in the carrying amounts of goodwill, which is generally not deductible for tax purposes, for our operating segments for the nine months ended February 28, 2013 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			929			26			61			72			1,088
Goodwill adjustments(2)			(85)			(30)			4			6			(105)
Balances as of February 28, 2013	$		10,557	$		12,475		$	1,258		$	1,812		$	26,102

(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.