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SEGMENT INFORMATION (Tables)
 12 Months Ended
May 31, 2018
Segment Reporting [Abstract]  
Summary of Businesses Results

 

 

 

Year Ended May 31,

 

(in millions)

 

2018

 

 

2017

 

 

2016

 

Cloud and license:

 

 

 

 

 

 

 

 

 

 

 

 

Revenues(1)

 

$

32,491

 

 

$

30,389

 

 

$

28,997

 

Cloud services and license support expenses

 

 

3,447

 

 

 

2,885

 

 

 

2,545

 

Sales and marketing expenses

 

 

7,219

 

 

 

6,886

 

 

 

6,570

 

Margin(2)

 

$

21,825

 

 

$

20,618

 

 

$

19,882

 

Hardware:

 

 

 

 

 

 

 

 

 

 

 

 

Revenues(1)

 

$

3,993

 

 

$

4,152

 

 

$

4,669

 

Hardware products and support expenses

 

 

1,551

 

 

 

1,623

 

 

 

2,031

 

Sales and marketing expenses

 

 

635

 

 

 

820

 

 

 

867

 

Margin(2)

 

$

1,807

 

 

$

1,709

 

 

$

1,771

 

Services:

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

3,394

 

 

$

3,358

 

 

$

3,391

 

Services expenses

 

 

2,739

 

 

 

2,668

 

 

 

2,634

 

Margin(2)

 

$

655

 

 

$

690

 

 

$

757

 

Totals:

 

 

 

 

 

 

 

 

 

 

 

 

Revenues(1)

 

$

39,878

 

 

$

37,899

 

 

$

37,057

 

Expenses

 

 

15,591

 

 

 

14,882

 

 

 

14,647

 

Margin(2)

 

$

24,287

 

 

$

23,017

 

 

$

22,410

 

 

(1)

Cloud and license revenues and hardware revenues presented for management reporting included revenues related to cloud and license obligations and hardware obligations 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 9 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. Refer to the table below for a reconciliation of our total margin for operating segments to our income before provision for income taxes as  reported in our consolidated statements of operations.
Reconciliation of Total Operating Segment Revenues to Total Revenues

 

 

 

Year Ended May 31,

 

(in millions)

 

2018

 

 

2017

 

 

2016

 

Total revenues for operating segments

 

$

39,878

 

 

$

37,899

 

 

$

37,057

 

Cloud and license revenues(1)

 

 

(47

)

 

 

(171

)

 

 

(9

)

Hardware revenues(1)

 

 

—

 

 

 

—

 

 

 

(1

)

Total revenues

 

$

39,831

 

 

$

37,728

 

 

$

37,047

 

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

 

Total margin for operating segments

 

$

24,287

 

 

$

23,017

 

 

$

22,410

 

Cloud and license revenues(1)

 

 

(47

)

 

 

(171

)

 

 

(9

)

Hardware revenues(1)

 

 

—

 

 

 

—

 

 

 

(1

)

Research and development

 

 

(6,091

)

 

 

(6,159

)

 

 

(5,787

)

General and administrative

 

 

(1,289

)

 

 

(1,176

)

 

 

(1,155

)

Amortization of intangible assets

 

 

(1,620

)

 

 

(1,451

)

 

 

(1,638

)

Acquisition related and other

 

 

(52

)

 

 

(103

)

 

 

(42

)

Restructuring

 

 

(588

)

 

 

(463

)

 

 

(458

)

Stock-based compensation for operating segments

 

 

(505

)

 

 

(415

)

 

 

(305

)

Expense allocations and other, net

 

 

(416

)

 

 

(369

)

 

 

(411

)

Interest expense

 

 

(2,025

)

 

 

(1,798

)

 

 

(1,467

)

Non-operating income, net

 

 

1,237

 

 

 

605

 

 

 

305

 

Income before provision for income taxes

 

$

12,891

 

 

$

11,517

 

 

$

11,442

 

 

(1)

Cloud and license revenues and hardware revenues presented for management reporting included revenues related to cloud and license obligations and hardware obligations 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 9 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,

 

 

 

2018

 

 

2017

 

 

2016

 

(in millions)

 

Revenues

 

 

Long-Lived

Assets(1)

 

 

Revenues

 

 

Long-Lived

Assets(1)

 

 

Revenues

 

 

Long-Lived

Assets(1)

 

United States

 

$

19,077

 

 

$

4,976

 

 

$

17,770

 

 

$

4,680

 

 

$

17,264

 

 

$

3,646

 

United Kingdom

 

 

2,172

 

 

 

510

 

 

 

1,999

 

 

 

402

 

 

 

2,349

 

 

 

334

 

Japan

 

 

1,693

 

 

 

388

 

 

 

1,618

 

 

 

380

 

 

 

1,465

 

 

 

375

 

Germany

 

 

1,375

 

 

 

179

 

 

 

1,417

 

 

 

116

 

 

 

1,438

 

 

 

40

 

Canada

 

 

1,143

 

 

 

78

 

 

 

1,102

 

 

 

60

 

 

 

1,096

 

 

 

44

 

Other countries

 

 

14,371

 

 

 

1,223

 

 

 

13,822

 

 

 

1,090

 

 

 

13,435

 

 

 

989

 

Total

 

$

39,831

 

 

$

7,354

 

 

$

37,728

 

 

$

6,728

 

 

$

37,047

 

 

$

5,428

 

(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.