SEGMENT INFORMATION (Tables)

12 Months Ended

May 31, 2013

Segment Information [Abstract]

Summary of Businesses and Operating Segments Results

	Year Ended May 31,
(in millions)	2013		2012		2011
New software licenses and cloud software subscriptions:
Revenues(1)	$	10,350	$	9,910	$	9,220
Sales and distribution expenses		5,536		5,198		4,746
Margin(2)	$	4,814	$	4,712	$	4,474
Software license updates and product support:
Revenues(1)	$	17,156	$	16,258	$	14,876
Software license updates and product support expenses		1,080		1,116		1,144
Margin(2)	$	16,076	$	15,142	$	13,732
Total software business:
Revenues(1)	$	27,506	$	26,168	$	24,096
Expenses		6,616		6,314		5,890
Margin(2)	$	20,890	$	19,854	$	18,206
Hardware systems products:
Revenues	$	3,033	$	3,827	$	4,382
Hardware systems products expenses		1,498		1,841		2,061
Sales and distribution expenses		885		1,050		960
Margin(2)	$	650	$	936	$	1,361
Hardware systems support:
Revenues(1)	$	2,327	$	2,505	$	2,710
Hardware systems support expenses		857		1,006		1,221
Margin(2)	$	1,470	$	1,499	$	1,489
Total hardware systems business:
Revenues(1)	$	5,360	$	6,332	$	7,092
Expenses		3,240		3,897		4,242
Margin(2)	$	2,120	$	2,435	$	2,850
Total services business:
Revenues(1)	$	4,387	$	4,721	$	4,662
Services expenses		3,416		3,605		3,674
Margin(2)	$	971	$	1,116	$	988
Totals:
Revenues(1)	$	37,253	$	37,221	$	35,850
Expenses		13,272		13,816		13,806
Margin(2)	$	23,981	$	23,405	$	22,044

(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 consolidated statements of operations in the amounts of $45 million and $22 million for fiscal 2013 and 2012, 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 consolidated statements of operations in the amounts of $14 million, $48 million and $80 million for fiscal 2013, 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 $14 million, $30 million and $148 million for fiscal 2013, 2012 and 2011, respectively. See Note 10 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

	Year Ended May 31,
(in millions)	2013		2012		2011
Total revenues for operating segments	$	37,253	$	37,221	$	35,850
New software licenses and cloud software subscriptions revenues(1)		(45)		(22)		—
Software license updates and product support revenues(1)		(14)		(48)		(80)
Hardware systems support revenues(1)		(14)		(30)		(148)
Total revenues	$	37,180	$	37,121	$	35,622

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

Total margin for operating segments	$	23,981	$	23,405	$	22,044
New software licenses and cloud software subscriptions revenues(1)		(45)		(22)		—
Software license updates and product support revenues(1)		(14)		(48)		(80)
Hardware systems support revenues(1)		(14)		(30)		(148)
Product development		(4,321)		(4,050)		(4,089)
Marketing and partner program expenses		(591)		(581)		(601)
Corporate, general and administrative and information technology expenses		(1,417)		(1,491)		(1,404)
Amortization of intangible assets		(2,385)		(2,430)		(2,428)
Acquisition related and other		604		(56)		(208)
Restructuring		(352)		(295)		(487)
Stock-based compensation		(722)		(626)		(500)
Interest expense		(797)		(766)		(808)
Other, net		(29)		(48)		120
Income before provision for income taxes	$	13,898	$	12,962	$	11,411

(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 consolidated statements of operations in the amounts of $45 million and $22 million for fiscal 2013 and 2012, 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 consolidated statements of operations in the amounts of $14 million, $48 million and $80 million for fiscal 2013, 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 $14 million, $30 million and $148 million for fiscal 2013, 2012 and 2011, respectively. See Note 10 for an explanation of these adjustments.

Geographic Information

	As of and for the Year Ended May 31,
	2013				2012				2011
(in millions)	Revenues		Long Lived Assets(1)		Revenues		Long Lived Assets(1)		Revenues		Long Lived Assets(1)
United States	$	16,003	$	2,921	$	15,767	$	2,468	$	15,274	$	2,359
United Kingdom		2,165		203		2,302		171		2,200		168
Japan		1,770		428		1,865		550		1,731		551
Germany		1,308		44		1,484		47		1,475		29
Canada		1,232		34		1,234		37		1,174		16
Australia		1,084		54		1,163		38		1,041		34
France		1,054		17		1,162		16		1,145		15
Other countries		12,564		814		12,144		741		11,582		661
Total	$	37,180	$	4,515	$	37,121	$	4,068	$	35,622	$	3,833

(1) Long-lived assets exclude goodwill, intangible assets, equity investments and deferred taxes, which are not allocated to specific geographic locations as it is impracticable to do so.