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SEGMENT INFORMATION (Tables)
 12 Months Ended
May 31, 2017
Segment Reporting [Abstract]  
Summary of Businesses Results

 

 

 

Year Ended May 31,

 

(in millions)

 

2017

 

 

2016

 

 

2015

 

Cloud and on-premise software:

 

 

 

 

 

 

 

 

 

 

 

 

Revenues(1)

 

$

30,389

 

 

$

28,997

 

 

$

29,491

 

Cloud SaaS, PaaS and IaaS expenses

 

 

1,901

 

 

 

1,468

 

 

 

1,072

 

Software license updates and product support expenses

 

 

984

 

 

 

1,077

 

 

 

1,130

 

Sales and marketing expenses

 

 

6,886

 

 

 

6,570

 

 

 

6,398

 

Margin(2)

 

$

20,618

 

 

$

19,882

 

 

$

20,891

 

Hardware:

 

 

 

 

 

 

 

 

 

 

 

 

Revenues(1)

 

$

4,152

 

 

$

4,669

 

 

$

5,209

 

Hardware products and support expenses

 

 

1,623

 

 

 

2,031

 

 

 

2,249

 

Sales and marketing expenses

 

 

820

 

 

 

867

 

 

 

885

 

Margin(2)

 

$

1,709

 

 

$

1,771

 

 

$

2,075

 

Services:

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

3,358

 

 

$

3,391

 

 

$

3,553

 

Services expenses

 

 

2,668

 

 

 

2,634

 

 

 

2,810

 

Margin(2)

 

$

690

 

 

$

757

 

 

$

743

 

Totals:

 

 

 

 

 

 

 

 

 

 

 

 

Revenues(1)

 

$

37,899

 

 

$

37,057

 

 

$

38,253

 

Expenses

 

 

14,882

 

 

 

14,647

 

 

 

14,544

 

Margin(2)

 

$

23,017

 

 

$

22,410

 

 

$

23,709

 

 

(1)

Cloud and on-premise software and hardware revenues for management reporting included revenues related to cloud, 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 due to business combination accounting requirements. 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.

(2)

The margins reported reflect only the direct controllable costs of each line of business and do not include allocations of product development, general and administrative and certain other allocable expenses. Additionally, the margins reported above do not reflect amortization of intangible assets, acquisition related and other expenses, restructuring expenses, stock-based compensation, interest expense or certain other non-operating income, net. Certain fiscal 2016 and fiscal 2015 balances have been reclassified to conform to the current year presentation. Such reclassifications did not affect consolidated revenues or operating income.
Reconciliation of Total Operating Segment Revenues to Total Revenues

 

 

 

Year Ended May 31,

 

(in millions)

 

2017

 

 

2016

 

 

2015

 

Total revenues for operating segments

 

$

37,899

 

 

$

37,057

 

 

$

38,253

 

Cloud and on-premise software revenues(1)

 

 

(171

)

 

 

(9

)

 

 

(23

)

Hardware revenues(1)

 

 

—

 

 

 

(1

)

 

 

(4

)

Total revenues

 

$

37,728

 

 

$

37,047

 

 

$

38,226

 

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

 

Total margin for operating segments

 

$

23,017

 

 

$

22,410

 

 

$

23,709

 

Cloud and on-premise software revenues(1)

 

 

(171

)

 

 

(9

)

 

 

(23

)

Hardware revenues(1)

 

 

—

 

 

 

(1

)

 

 

(4

)

Research and development

 

 

(6,159

)

 

 

(5,787

)

 

 

(5,524

)

General and administrative

 

 

(1,176

)

 

 

(1,155

)

 

 

(1,077

)

Amortization of intangible assets

 

 

(1,451

)

 

 

(1,638

)

 

 

(2,149

)

Acquisition related and other

 

 

(103

)

 

 

(42

)

 

 

(211

)

Restructuring

 

 

(463

)

 

 

(458

)

 

 

(207

)

Stock-based compensation for operating segments

 

 

(415

)

 

 

(305

)

 

 

(258

)

Expense allocations and other, net

 

 

(369

)

 

 

(411

)

 

 

(385

)

Interest expense

 

 

(1,798

)

 

 

(1,467

)

 

 

(1,143

)

Non-operating income, net

 

 

605

 

 

 

305

 

 

 

106

 

Income before provision for income taxes

 

$

11,517

 

 

$

11,442

 

 

$

12,834

 

 

(1)

Cloud and on-premise software and hardware revenues for management reporting included revenues related to cloud, 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 due to business combination accounting requirements. See Note 10 for an explanation of these adjustments and this table for a reconciliation of our total operating segment revenues to our total revenues as reported in our consolidated statements of operations.

Geographic Information

 

 

 

As of and for the Year Ended May 31,

 

 

 

2017

 

 

2016

 

 

2015

 

(in millions)

 

Revenues

 

 

Long-Lived

Assets(1)

 

 

Revenues

 

 

Long-Lived

Assets(1)

 

 

Revenues

 

 

Long-Lived

Assets(1)

 

United States

 

$

17,770

 

 

$

4,680

 

 

$

17,264

 

 

$

3,646

 

 

$

17,325

 

 

$

3,341

 

United Kingdom

 

 

1,999

 

 

 

402

 

 

 

2,349

 

 

 

334

 

 

 

2,388

 

 

 

309

 

Japan

 

 

1,618

 

 

 

380

 

 

 

1,465

 

 

 

375

 

 

 

1,433

 

 

 

338

 

Germany

 

 

1,417

 

 

 

116

 

 

 

1,438

 

 

 

40

 

 

 

1,466

 

 

 

33

 

Canada

 

 

1,102

 

 

 

60

 

 

 

1,096

 

 

 

44

 

 

 

1,286

 

 

 

58

 

Other countries

 

 

13,822

 

 

 

1,090

 

 

 

13,435

 

 

 

989

 

 

 

14,328

 

 

 

1,040

 

Total

 

$

37,728

 

 

$

6,728

 

 

$

37,047

 

 

$

5,428

 

 

$

38,226

 

 

$

5,119

 

(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.