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INTANGIBLE ASSETS AND GOODWILL
3 Months Ended
Aug. 31, 2018
Goodwill And Intangible Assets Disclosure [Abstract]  
INTANGIBLE ASSETS AND GOODWILL

4.

INTANGIBLE ASSETS AND GOODWILL

The changes in intangible assets for fiscal 2019 and the net book value of intangible assets as of August 31, 2018 and May 31, 2018 were as follows:

 

 

 

Intangible Assets, Gross

 

 

Accumulated Amortization

 

 

Intangible Assets, Net

 

(Dollars in millions)

 

May 31,

2018

 

 

Additions &

Adjustments, net(1)

 

 

August 31,

2018

 

 

May 31,

2018

 

 

Expense

 

 

August 31,

2018

 

 

May 31,

2018

 

 

August 31,

2018

 

Developed technology

 

$

5,309

 

 

$

91

 

 

$

5,400

 

 

$

(2,814

)

 

$

(212

)

 

$

(3,026

)

 

$

2,495

 

 

$

2,374

 

Cloud services and license support

   agreements and related relationships

 

 

5,999

 

 

 

(29

)

 

 

5,970

 

 

 

(2,285

)

 

 

(192

)

 

 

(2,477

)

 

 

3,714

 

 

 

3,493

 

Other

 

 

1,622

 

 

 

(3

)

 

 

1,619

 

 

 

(1,161

)

 

 

(30

)

 

 

(1,191

)

 

 

461

 

 

 

428

 

Total intangible assets, net

 

$

12,930

 

 

$

59

 

 

$

12,989

 

 

$

(6,260

)

 

$

(434

)

 

$

(6,694

)

 

$

6,670

 

 

$

6,295

 

 

(1)

Amounts also include any changes in intangible asset balances for the periods presented that resulted from foreign currency translations.

Total amortization expense related to our intangible assets was $434 million and $411 million for the three months ended August 31, 2018 and 2017, respectively. As of August 31, 2018, estimated future amortization expenses related to intangible assets were as follows (in millions):

 

Remainder of fiscal 2019

 

$

1,190

 

Fiscal 2020

 

 

1,419

 

Fiscal 2021

 

 

1,198

 

Fiscal 2022

 

 

982

 

Fiscal 2023

 

 

629

 

Fiscal 2024

 

 

388

 

Thereafter

 

 

489

 

Total intangible assets, net

 

$

6,295

 

 

The changes in the carrying amounts of goodwill, net, which is generally not deductible for tax purposes, for our operating segments for the three months ended August 31, 2018 were as follows:

 

(in millions)

 

Cloud and License

 

 

Hardware

 

 

Services

 

 

Total Goodwill, net

 

Balances as of May 31, 2018

 

$

39,600

 

 

$

2,367

 

 

$

1,788

 

 

$

43,755

 

Goodwill adjustments, net(1)

 

 

(47

)

 

 

 

 

 

(6

)

 

 

(53

)

Balances as of August 31, 2018

 

$

39,553

 

 

$

2,367

 

 

$

1,782

 

 

$

43,702

 

 

(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). Amounts also include any changes in goodwill balances for the period presented that resulted from foreign currency translations.