SEGMENT INFORMATION (Tables)

9 Months Ended

Feb. 28, 2013

Segment Information [Abstract]

Summary of Businesses and Operating Segments Results

	Three Months Ended				Nine Months Ended
(in millions)	February 28, 2013		February 29, 2012		February 28, 2013		February 29, 2012
New software licenses and cloud software subscriptions:
Revenues(1)	$	2,334	$	2,370	$	6,321	$	5,908
Sales and distribution expenses		1,379		1,239		3,812		3,595
Margin(2)	$	955	$	1,131	$	2,509	$	2,313
Software license updates and product support:
Revenues(1)	$	4,344	$	4,068	$	12,752	$	12,098
Software license updates and product support expenses		276		282		808		824
Margin(2)	$	4,068	$	3,786	$	11,944	$	11,274
Total software business:
Revenues(1)	$	6,678	$	6,438	$	19,073	$	18,006
Expenses		1,655		1,521		4,620		4,419
Margin(2)	$	5,023	$	4,917	$	14,453	$	13,587
Hardware systems products:
Revenues	$	671	$	869	$	2,185	$	2,851
Hardware systems products expenses		336		425		1,086		1,365
Sales and distribution expenses		212		250		643		788
Margin(2)	$	123	$	194	$	456	$	698
Hardware systems support:
Revenues(1)	$	572	$	610	$	1,740	$	1,900
Hardware systems support expenses		210		247		646		767
Margin(2)	$	362	$	363	$	1,094	$	1,133
Total hardware systems business:
Revenues(1)	$	1,243	$	1,479	$	3,925	$	4,751
Expenses		758		922		2,375		2,920
Margin(2)	$	485	$	557	$	1,550	$	1,831
Total services business:
Revenues(1)	$	1,049	$	1,145	$	3,294	$	3,514
Services expenses		826		893		2,579		2,700
Margin(2)	$	223	$	252	$	715	$	814
Totals:
Revenues(1)	$	8,970	$	9,062	$	26,292	$	26,271
Expenses		3,239		3,336		9,574		10,039
Margin(2)	$	5,731	$	5,726	$	16,718	$	16,232

(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 amounts of $6 million and $37 million for the three and nine months ended February 28, 2013, respectively. 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 $4 million and $17 million for the three months ended February 28, 2013 and February 29, 2012, respectively, and $12 million and $40 million for the nine months ended February 28, 2013 and February 29, 2012, 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 $2 million and $6 million for the three months ended February 28, 2013 and February 29, 2012, respectively, and $10 million and $26 million for the nine months ended February 28, 2013 and February 29, 2012, 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, marketing and partner programs, and corporate, general and administrative and information technology 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				Nine Months Ended
(in millions)	February 28, 2013		February 29, 2012		February 28, 2013		February 29, 2012
Total revenues for operating segments	$	8,970	$	9,062	$	26,292	$	26,271
New software licenses and cloud software subscriptions revenues(1)		(6)		—		(37)		—
Software license updates and product support revenues(1)		(4)		(17)		(12)		(40)
Hardware systems support revenues(1)		(2)		(6)		(10)		(26)
Total revenues	$	8,958	$	9,039	$	26,233	$	26,205

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

Total margin for operating segments	$	5,731	$	5,726	$	16,718	$	16,232
New software licenses and cloud software subscriptions revenues(1)		(6)		—		(37)		—
Software license updates and product support revenues(1)		(4)		(17)		(12)		(40)
Hardware systems support revenues(1)		(2)		(6)		(10)		(26)
Product development		(1,050)		(1,022)		(3,180)		(2,937)
Marketing and partner program expenses		(136)		(138)		(426)		(426)
Corporate, general and administrative and information technology expenses		(352)		(354)		(1,062)		(1,127)
Amortization of intangible assets		(586)		(606)		(1,789)		(1,790)
Acquisition related and other		(32)		(38)		347		(63)
Restructuring		(42)		(64)		(318)		(217)
Stock-based compensation		(172)		(157)		(536)		(453)
Interest expense		(205)		(190)		(588)		(574)
Other, net		(54)		14		(35)		—
Income before provision for income taxes	$	3,090	$	3,148	$	9,072	$	8,579

(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 amounts of $6 million and $37 million for the three and nine months ended February 28, 2013, respectively. 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 $4 million and $17 million for the three months ended February 28, 2013 and February 29, 2012, respectively, and $12 million and $40 million for the nine months ended February 28, 2013 and February 29, 2012, 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 $2 million and $6 million for the three months ended February 28, 2013 and February 29, 2012, respectively, and $10 million and $26 million for the nine months ended February 28, 2013 and February 29, 2012, respectively.