| INTANGIBLE ASSETS AND GOODWILL |
4.INTANGIBLE ASSETS AND GOODWILL The changes in intangible assets for fiscal 2024 and the net book value of intangible assets as of February 29, 2024 and May 31, 2023 were as follows:
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Intangible Assets, Gross |
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Accumulated Amortization |
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Intangible Assets, Net |
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Weighted
Average |
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(Dollars in millions) |
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May 31,
2023 |
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Additions |
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February 29,
2024 |
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May 31,
2023 |
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Expense |
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February 29,
2024 |
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May 31,
2023 |
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February 29,
2024 |
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Useful
Life(1) |
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Developed technology |
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$ |
4,300 |
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$ |
59 |
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$ |
4,359 |
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$ |
(2,407 |
) |
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$ |
(507 |
) |
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$ |
(2,914 |
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$ |
1,893 |
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$ |
1,445 |
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3 |
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Cloud services and license support agreements and related relationships |
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9,456 |
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— |
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9,456 |
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(5,579 |
) |
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(781 |
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(6,360 |
) |
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3,877 |
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3,096 |
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N.A. |
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Cloud license and on-premise license agreements and related relationships |
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2,688 |
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— |
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2,688 |
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(697 |
) |
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(350 |
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(1,047 |
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1,991 |
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1,641 |
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N.A. |
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Other |
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3,582 |
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— |
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3,582 |
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(1,506 |
) |
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(629 |
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(2,135 |
) |
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2,076 |
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1,447 |
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N.A. |
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Total intangible assets, net |
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$ |
20,026 |
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$ |
59 |
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$ |
20,085 |
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$ |
(10,189 |
) |
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$ |
(2,267 |
) |
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$ |
(12,456 |
) |
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$ |
9,837 |
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$ |
7,629 |
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(1)Represents weighted-average useful lives (in years) of intangible assets acquired during fiscal 2024. As of February 29, 2024, estimated future amortization expenses related to intangible assets were as follows (in millions):
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Remainder of fiscal 2024 |
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$ |
739 |
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Fiscal 2025 |
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2,303 |
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Fiscal 2026 |
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1,639 |
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Fiscal 2027 |
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672 |
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Fiscal 2028 |
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635 |
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Fiscal 2029 |
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561 |
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Thereafter |
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1,080 |
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Total intangible assets, net |
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$ |
7,629 |
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The changes in the carrying amounts of goodwill, net, which is generally not deductible for tax purposes, for our operating segments for the nine months ended February 29, 2024 were as follows:
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(in millions) |
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Cloud and License |
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Hardware |
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Services |
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Total Goodwill, net |
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Balances as of May 31, 2023 |
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$ |
57,060 |
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$ |
2,732 |
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$ |
2,469 |
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$ |
62,261 |
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Goodwill adjustments, net(1) |
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3 |
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— |
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(42 |
) |
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(39 |
) |
Balances as of February 29, 2024 |
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$ |
57,063 |
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$ |
2,732 |
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$ |
2,427 |
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$ |
62,222 |
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(1)Amounts include any changes in goodwill balances for the period presented that resulted from foreign currency translations and certain other adjustments.
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