SEGMENT INFORMATION (Tables)

12 Months Ended

May 31, 2016

Segment Information [Abstract]

Summary of Businesses and Operating Segments Results

	Year Ended May 31,
(in millions)	2016		2015		2014
Cloud software and on-premise software:
Revenues(1)	$	9,488	$	10,025	$	10,542
Cloud software as a service and platform as a service expenses		1,116		742		437
Sales and distribution expenses		6,010		5,812		5,666
Margin(2)	$	2,362	$	3,471	$	4,439
Cloud infrastructure as a service:
Revenues	$	646	$	608	$	456
Cloud infrastructure as a service expenses		352		329		304
Sales and distribution expenses		74		89		61
Margin(2)	$	220	$	190	$	91
Software license updates and product support:
Revenues(1)	$	18,863	$	18,858	$	18,209
Software license updates and product support expenses		1,077		1,130		1,111
Margin(2)	$	17,786	$	17,728	$	17,098
Total cloud and on-premise software business:
Revenues(1)	$	28,997	$	29,491	$	29,207
Expenses		8,629		8,102		7,579
Margin(2)	$	20,368	$	21,389	$	21,628
Hardware products:
Revenues	$	2,471	$	2,825	$	2,976
Hardware products expenses		1,364		1,465		1,516
Sales and distribution expenses		850		864		940
Margin(2)	$	257	$	496	$	520
Hardware support:
Revenues(1)	$	2,198	$	2,384	$	2,407
Hardware support expenses		665		783		802
Margin(2)	$	1,533	$	1,601	$	1,605
Total hardware business:
Revenues(1)	$	4,669	$	5,209	$	5,383
Expenses		2,879		3,112		3,258
Margin(2)	$	1,790	$	2,097	$	2,125
Total services business:
Revenues(1)	$	3,391	$	3,553	$	3,716
Services expenses		2,645		2,818		2,822
Margin(2)	$	746	$	735	$	894
Totals:
Revenues(1)	$	37,057	$	38,253	$	38,306
Expenses	$	14,153		14,032		13,659
Margin(2)	$	22,904	$	24,221	$	24,647

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(1)

Cloud software and on-premise software, software license updates and product support and hardware support revenues for management reporting included revenues related to cloud SaaS and PaaS, software support and hardware support contracts that would have otherwise been recorded by the acquired businesses as independent entities but were not recognized in our consolidated statements of operations for the periods presented. 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 as reported in our consolidated statements of operations. Our cloud software and on-premise software and services revenues for management reporting also differ from amounts reported per our consolidated statements of operations for the periods presented due to certain insignificant reclassifications between these lines for management reporting purposes.

(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 IT expenses. Additionally, the margins reported do not reflect amortization of intangible assets, acquisition related and other expenses, restructuring expenses, stock-based compensation, interest expense or certain other income (expense), net.

Reconciliation of Total Operating Segment Revenues to Total Revenues

	Year Ended May 31,
(in millions)	2016		2015		2014
Total revenues for operating segments	$	37,057	$	38,253	$	38,306
Cloud software as a service and platform as a service revenues (1)		(7)		(12)		(17)
Software license updates and product support revenues(1)		(2)		(11)		(3)
Hardware support revenues(1)		(1)		(4)		(11)
Total revenues	$	37,047	$	38,226	$	38,275

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

Total margin for operating segments	$	22,904	$	24,221	$	24,647
Cloud software as a service and platform as a service revenues (1)		(7)		(12)		(17)
Software license updates and product support revenues(1)		(2)		(11)		(3)
Hardware support revenues(1)		(1)		(4)		(11)
Product development		(4,978)		(4,812)		(4,590)
Marketing and partner program expenses		(505)		(520)		(564)
Corporate, general and administrative and information technology expenses		(1,635)		(1,496)		(1,384)
Amortization of intangible assets		(1,638)		(2,149)		(2,300)
Acquisition related and other		(42)		(211)		(41)
Restructuring		(458)		(207)		(183)
Stock-based compensation		(1,034)		(928)		(795)
Interest expense		(1,467)		(1,143)		(914)
Non-operating income (expense), net		305		106		(141)
Income before provision for income taxes	$	11,442	$	12,834	$	13,704

__________

(1) Cloud SaaS and PaaS revenues, software license updates and product support revenues and hardware support revenues for management reporting included revenues that would have otherwise been recorded by our acquired businesses as independent entities but were not recognized in our consolidated statements of operations for the periods presented due to business combination accounting requirements.

Geographic Information

	As of and for the Year Ended May 31,
	2016				2015				2014
(in millions)	Revenues		Long Lived Assets(1)		Revenues		Long Lived Assets(1)		Revenues		Long Lived Assets(1)
United States	$	17,264	$	3,646	$	17,325	$	3,341	$	16,809	$	2,993
United Kingdom		2,349		334		2,388		309		2,309		236
Japan		1,465		375		1,433		338		1,558		414
Germany		1,438		40		1,466		33		1,483		35
Canada		1,096		44		1,286		58		1,190		31
France		1,039		26		1,044		33		1,148		28
Other countries		12,396		963		13,284		1,007		13,778		879
Total	$	37,047	$	5,428	$	38,226	$	5,119	$	38,275	$	4,616

__________

(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.