INTANGIBLE ASSETS AND GOODWILL

6 Months Ended

Nov. 30, 2017

Goodwill And Intangible Assets Disclosure [Abstract]

5.	INTANGIBLE ASSETS AND GOODWILL

The changes in intangible assets for fiscal 2018 and the net book value of intangible assets as of November 30, 2017 and May 31, 2017 were as follows:

	Intangible Assets, Gross							Accumulated Amortization									Intangible Assets, Net
(Dollars in millions)	May 31, 2017		Additions & Adjustments, net			November 30, 2017		May 31, 2017			Expense			November 30, 2017			May 31, 2017		November 30, 2017
Developed technology	$	5,397	$	(214	)	$	5,183	$	(2,295	)	$	(378	)	$	(2,673	)	$	3,102	$	2,510
SaaS, PaaS and IaaS agreements and related relationships		4,105		122			4,227		(1,089	)		(301	)		(1,390	)		3,016		2,837
Software support agreements and related relationships		1,565		—			1,565		(559	)		(62	)		(621	)		1,006		944
Other		1,998		18			2,016		(1,443	)		(70	)		(1,513	)		555		503
Total intangible assets, net	$	13,065	$	(74	)	$	12,991	$	(5,386	)	$	(811	)	$	(6,197	)	$	7,679	$	6,794

Total amortization expense related to our intangible assets was $400 million and $811 million for the three and six months ended November 30, 2017, respectively, and $302 million and $613 million for the three and six months ended November 30, 2016, respectively. As of November 30, 2017, estimated future amortization expenses related to intangible assets were as follows (in millions):

Remainder of fiscal 2018	$	781
Fiscal 2019		1,411
Fiscal 2020		1,210
Fiscal 2021		1,023
Fiscal 2022		918
Fiscal 2023		567
Thereafter		884
Total intangible assets, net	$	6,794

The changes in the carrying amounts of goodwill, net, which is generally not deductible for tax purposes, for our operating segments for the six months ended November 30, 2017 were as follows:

(in millions)	Cloud and On-Premise Software			Hardware		Services		Total Goodwill, net
Balances as of May 31, 2017	$	38,791		$	2,367	$	1,887	$	43,045
Goodwill adjustments, net⁽¹⁾		(81	)		—		—		(81	)
Balances as of November 30, 2017	$	38,710		$	2,367	$	1,887	$	42,964

⁽¹⁾

Pursuant to our business combinations accounting policy, we recorded goodwill adjustments for the effects on goodwill of changes to net assets acquired during the period that such a change is identified, provided that any such change is within the measurement period (up to one year from the date of the acquisition).

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

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