SEGMENT INFORMATION (Tables)

3 Months Ended

Aug. 31, 2012

Segment Information [Abstract]

Summary of Businesses and Operating Segments Results

		Three Months Ended  August 31,
(in millions)		2012		2011
New software licenses and cloud software subscriptions:
Revenues(1)	$	1,589	$	1,493
Sales and distribution expenses		1,078		1,144
Margin(2)	$	511	$	349
Software license updates and product support:
Revenues(1)	$	4,145	$	4,035
Software license updates and product support expenses		269		274
Margin(2)	$	3,876	$	3,761
Total software business:
Revenues(1)	$	5,734	$	5,528
Expenses		1,347		1,418
Margin(2)	$	4,387	$	4,110
Hardware systems products:
Revenues	$	779	$	1,029
Hardware systems products expenses		384		473
Sales and distribution expenses		218		266
Margin(2)	$	177	$	290
Hardware systems support:
Revenues(1)	$	578	$	656
Hardware systems support expenses		213		272
Margin(2)	$	365	$	384
Total hardware systems business:
Revenues(1)	$	1,357	$	1,685
Expenses		815		1,011
Margin(2)	$	542	$	674
Total services business:
Revenues(1)	$	1,118	$	1,185
Services expenses		862		914
Margin(2)	$	256	$	271
Totals:
Revenues(1)	$	8,209	$	8,398
Expenses		3,024		3,343
Margin(2)	$	5,185	$	5,055

(1)

Operating segment revenues generally differ from the external reporting classifications due to certain software license products that are classified as service revenues for management reporting purposes. New software licenses and cloud software subscriptions revenues for management reporting included revenues related to cloud software subscriptions contracts that would have otherwise been recorded by the acquired businesses as independent entities but were not recognized in the accompanying condensed consolidated statements of operations in the amount of $19 million for the three months ended August 31, 2012. Software license updates and product support revenues for management reporting included revenues related to software support contracts that would have otherwise been recorded by the acquired businesses as independent entities but were not recognized in the accompanying condensed consolidated statements of operations in the amounts of $5 million and $13 million for the three months ended August 31, 2012 and 2011, respectively. In addition, we did not recognize hardware systems support revenues related to hardware systems support contracts that would have otherwise been recorded by the acquired businesses as independent entities in the amounts of $4 million and $11 million for the three months ended August 31, 2012 and 2011, respectively. See Note 8 for an explanation of these adjustments and the table below for a reconciliation of our total operating segment revenues to our total revenues.

(2)

The margins reported reflect only the direct controllable costs of each line of business and do not include allocations of product development, information technology, marketing and partner programs and corporate and general and administrative expenses. Additionally, the margins do not reflect amortization of intangible assets, acquisition related and other expenses, restructuring expenses, stock-based compensation, interest expense or certain other expenses, net.

Reconciliation of Total Operating Segment Revenues to Total Revenues

		Three Months Ended August 31,
(in millions)		2012		2011
Total revenues for operating segments	$	8,209	$	8,398
New software licenses and cloud software subscriptions revenues(1)		(19)		—
Software license updates and product support revenues(1)		(5)		(13)
Hardware systems support revenues(1)		(4)		(11)
Total revenues	$	8,181	$	8,374

Reconciliation of Total Operating Segment Margin to Income before Provision for Income Taxes

Total margin for operating segments	$	5,185	$	5,055
New software licenses and cloud software subscriptions revenues(1)		(19)		—
Software license updates and product support revenues(1)		(5)		(13)
Hardware systems support revenues(1)		(4)		(11)
Product development and information technology expenses		(1,231)		(1,076)
Marketing and partner program expenses		(128)		(132)
Corporate and general and administrative expenses		(226)		(268)
Amortization of intangible assets		(619)		(592)
Acquisition related and other		258		(19)
Restructuring		(145)		(101)
Stock-based compensation		(176)		(147)
Interest expense		(188)		(192)
Other, net		—		(33)
Income before provision for income taxes	$	2,702	$	2,471

(1) New software licenses and cloud software subscriptions revenues for management reporting included revenues related to cloud software subscriptions contracts that would have otherwise been recorded by the acquired businesses as independent entities but were not recognized in the accompanying condensed consolidated statements of operations in the amount of $19 million for the three months ended August 31, 2012. Software license updates and product support revenues for management reporting included revenues related to software support contracts that would have otherwise been recorded by the acquired businesses as independent entities but were not recognized in the accompanying condensed consolidated statements of operations in the amounts of $5 million and $13 million for the three months ended August 31, 2012 and 2011, respectively. In addition, we did not recognize hardware systems support revenues related to hardware systems support contracts that would have otherwise been recorded by the acquired businesses as independent entities in the amounts of $4 million and $11 million for the three months ended August 31, 2012 and 2011, respectively.