INTANGIBLE ASSETS AND GOODWILL

6 Months Ended

Nov. 30, 2022

Goodwill And Intangible Assets Disclosure [Abstract]

4.	INTANGIBLE ASSETS AND GOODWILL

The changes in intangible assets for fiscal 2023 and the net book value of intangible assets as of November 30, 2022 and May 31, 2022 were as follows:

	Intangible Assets, Gross						Accumulated Amortization									Intangible Assets, Net				Weighted Average Useful Life⁽²⁾
(Dollars in millions)	May 31, 2022		Additions & Adjustments, net⁽¹⁾		November 30, 2022		May 31, 2022			Expense			November 30, 2022			May 31, 2022		November 30, 2022		Weighted Average Useful Life⁽²⁾
Developed technology	$	3,966	$	2,379	$	6,345	$	(3,660	)	$	(449	)	$	(4,109	)	$	306	$	2,236		4
Cloud services and license support agreements and related relationships		5,260		4,318		9,578		(4,194	)		(749	)		(4,943	)		1,066		4,635		7
Cloud license and on-premise license agreements and related relationships		356		2,437		2,793		(343	)		(225	)		(568	)		13		2,225		7
Other		865		2,845		3,710		(810	)		(403	)		(1,213	)		55		2,497		4
Total intangible assets, net	$	10,447	$	11,979	$	22,426	$	(9,007	)	$	(1,826	)	$	(10,833	)	$	1,440	$	11,593

⁽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 November 30, 2022, estimated future amortization expenses related to intangible assets were as follows (in millions):

Remainder of fiscal 2023	$	1,755
Fiscal 2024		2,995
Fiscal 2025		2,283
Fiscal 2026		1,620
Fiscal 2027		664
Fiscal 2028		635
Thereafter		1,641
Total intangible assets, net	$	11,593

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, 2022 were as follows:

(in millions)	Cloud and License			Hardware		Services			Total Goodwill, net
Balances as of May 31, 2022	$	39,938		$	2,367	$	1,506		$	43,811
Goodwill from acquisitions		16,460			346		1,065			17,871
Goodwill adjustments, net⁽¹⁾		(54	)		—		(115	)		(169	)
Balances as of November 30, 2022	$	56,344		$	2,713	$	2,456		$	61,513

⁽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.