ORACLE CORP Goodwill & Intangibles Disclosure
The changes in intangible assets for fiscal 2025 and the net book value of intangible assets as of May 31, 2025 and 2024 were as follows:
|
|
Intangible Assets, Gross |
|
|
Accumulated Amortization |
|
|
Intangible Assets, Net |
|
|
|||||||||||||||||||||||||||
(in millions) |
|
May 31, |
|
|
Retirements |
|
|
May 31, |
|
|
May 31, |
|
|
Expense |
|
|
Retirements |
|
|
May 31, |
|
|
May 31, |
|
|
May 31, |
|
|
|||||||||
Developed technology |
|
$ |
4,235 |
|
|
$ |
(92 |
) |
|
$ |
4,143 |
|
|
$ |
(2,959 |
) |
|
$ |
(642 |
) |
|
$ |
92 |
|
|
$ |
(3,509 |
) |
|
$ |
1,276 |
|
|
$ |
634 |
|
|
Cloud services and license support agreements and related relationships |
|
|
8,460 |
|
|
|
(1,312 |
) |
|
|
7,148 |
|
|
|
(5,609 |
) |
|
|
(714 |
) |
|
|
1,312 |
|
|
|
(5,011 |
) |
|
|
2,851 |
|
|
|
2,137 |
|
|
Cloud license and on-premise license agreements and related relationships |
|
|
2,563 |
|
|
|
(41 |
) |
|
|
2,522 |
|
|
|
(1,039 |
) |
|
|
(462 |
) |
|
|
41 |
|
|
|
(1,460 |
) |
|
|
1,524 |
|
|
|
1,062 |
|
|
Other |
|
|
3,533 |
|
|
|
(710 |
) |
|
|
2,827 |
|
|
|
(2,294 |
) |
|
|
(489 |
) |
|
|
710 |
|
|
|
(2,073 |
) |
|
|
1,239 |
|
|
|
754 |
|
|
Total intangible assets, net |
|
$ |
18,791 |
|
|
$ |
(2,155 |
) |
|
$ |
16,640 |
|
|
$ |
(11,901 |
) |
|
$ |
(2,307 |
) |
|
$ |
2,155 |
|
|
$ |
(12,053 |
) |
|
$ |
6,890 |
|
|
$ |
4,587 |
|
|
As of May 31, 2025, estimated future amortization expenses related to intangible assets were as follows (in millions):
Fiscal 2026 |
|
$ |
1,639 |
|
Fiscal 2027 |
|
|
672 |
|
Fiscal 2028 |
|
|
635 |
|
Fiscal 2029 |
|
|
561 |
|
Fiscal 2030 |
|
|
522 |
|
Thereafter |
|
|
558 |
|
Total intangible assets, net |
|
$ |
4,587 |
|
The changes in the carrying amounts of goodwill, which is generally not deductible for tax purposes, for our operating segments for fiscal 2025 and 2024 were as follows:
(in millions) |
|
Cloud and License |
|
|
Hardware |
|
|
Services |
|
|
Total Goodwill |
|
||||
Balances as of May 31, 2023 |
|
$ |
57,060 |
|
|
$ |
2,732 |
|
|
$ |
2,469 |
|
|
$ |
62,261 |
|
Goodwill adjustments, net(1) |
|
|
12 |
|
|
|
— |
|
|
|
(43 |
) |
|
|
(31 |
) |
Balances as of May 31, 2024 |
|
|
57,072 |
|
|
|
2,732 |
|
|
|
2,426 |
|
|
|
62,230 |
|
Goodwill adjustments, net(1) |
|
|
(23 |
) |
|
|
— |
|
|
|
— |
|
|
|
(23 |
) |
Balances as of May 31, 2025 |
|
$ |
57,049 |
|
|
$ |
2,732 |
|
|
$ |
2,426 |
|
|
$ |
62,207 |
|
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Jun 18, 2025 | Showing above |
| 2024 | Jun 20, 2024 | |
| 2023 | Jun 20, 2023 | |
| 2022 | Jun 21, 2022 | |
| 2021 | Jun 21, 2021 | |
| 2020 | Jun 22, 2020 | |
| 2019 | Jun 21, 2019 | |
| 2018 | Jun 22, 2018 | |
| 2017 | Jun 27, 2017 | |
| 2016 | Jun 22, 2016 | |
About Goodwill & Intangibles Disclosures
Goodwill and intangible asset disclosures reveal the premium paid in acquisitions and how management assesses whether that premium retains its value. Since goodwill is no longer amortized under US GAAP, the annual impairment test is the only mechanism that adjusts carrying values downward — making the assumptions behind that test critically important for investors.
Key signals: a history of goodwill impairments suggests management consistently overpays for acquisitions. Watch the gap between reporting unit fair value and carrying amount — when fair value exceeds carrying amount by less than 10-20%, a small decline in business performance could trigger a write-down. For finite-lived intangibles, examine useful life assumptions across customer relationships, technology, and trade names; aggressive estimates inflate near-term earnings. Compare total intangibles-to-total-assets ratios against peers to assess acquisition dependency. Rising goodwill as a percentage of equity can signal balance sheet fragility.