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SEGMENT INFORMATION (Tables)
 3 Months Ended
Aug. 31, 2018
Segment Reporting [Abstract]  
Summary of Businesses Results

 

 

Three Months Ended

August 31,

 

(in millions)

 

2018

 

 

2017

 

Cloud and license:

 

 

 

 

 

 

 

 

Revenues(1)

 

$

7,484

 

 

$

7,326

 

Cloud services and license support expenses

 

 

867

 

 

 

819

 

Sales and marketing expenses

 

 

1,744

 

 

 

1,677

 

Margin(2)

 

$

4,873

 

 

$

4,830

 

Hardware:

 

 

 

 

 

 

 

 

Revenues

 

$

904

 

 

$

943

 

Hardware products and support expenses

 

 

317

 

 

 

365

 

Sales and marketing expenses

 

 

139

 

 

 

174

 

Margin(2)

 

$

448

 

 

$

404

 

Services:

 

 

 

 

 

 

 

 

Revenues

 

$

813

 

 

$

860

 

Services expenses

 

 

676

 

 

 

662

 

Margin(2)

 

$

137

 

 

$

198

 

Totals:

 

 

 

 

 

 

 

 

Revenues(1)

 

$

9,201

 

 

$

9,129

 

Expenses

 

 

3,743

 

 

 

3,697

 

Margin(2)

 

$

5,458

 

 

$

5,432

 

 

(1)

Cloud and license revenues for management reporting included revenues related to cloud and license 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 6 for an explanation of these adjustments and the table below for a reconciliation of our total operating segment revenues to our total consolidated revenues as reported in our condensed 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, net. 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.
Reconciliation of Total Operating Segment Revenues to Total Revenues

 

 

 

Three Months Ended

August 31,

 

(in millions)

 

2018

 

 

2017

 

Total revenues for operating segments

 

$

9,201

 

 

$

9,129

 

Cloud and license revenues(1)

 

 

(8

)

 

 

(25

)

Total revenues

 

$

9,193

 

 

$

9,104

 

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

Total margin for operating segments

 

$

5,458

 

 

$

5,432

 

Cloud and license revenues(1)

 

 

(8

)

 

 

(25

)

Research and development

 

 

(1,564

)

 

 

(1,572

)

General and administrative

 

 

(321

)

 

 

(319

)

Amortization of intangible assets

 

 

(434

)

 

 

(411

)

Acquisition related and other

 

 

(14

)

 

 

(12

)

Restructuring

 

 

(90

)

 

 

(124

)

Stock-based compensation for operating segments

 

 

(134

)

 

 

(124

)

Expense allocations and other, net

 

 

(115

)

 

 

(96

)

Interest expense

 

 

(529

)

 

 

(469

)

Non-operating income, net

 

 

291

 

 

 

220

 

Income before provision for income taxes

 

$

2,540

 

 

$

2,500

 

 

(1)

Cloud and license revenues presented for management reporting included revenues related to cloud and license obligations that would have otherwise been recorded by the acquired businesses as independent entities but were not recognized in our condensed consolidated statements of operations for the periods presented due to business combination accounting requirements. See Note 6 for an explanation of these adjustments and this table for a reconciliation of our total operating segment revenues to our total consolidated revenues as reported in our condensed consolidated statements of operations.
Disaggregation of Revenue by Geography and Ecosystem

 

 

Three Months Ended

August 31,

 

(in millions)

 

2018

 

 

2017

 

Americas

 

$

5,161

 

 

$

5,098

 

EMEA(1)

 

 

2,576

 

 

 

2,535

 

Asia Pacific(2)

 

 

1,456

 

 

 

1,471

 

Total revenues

 

$

9,193

 

 

$

9,104

 

 

(1)

Comprised of Europe, the Middle East and Africa

(2)

The Asia Pacific region includes Japan

 

 

Three Months Ended

August 31,

 

(in millions)

 

2018

 

 

2017

 

Applications revenues

 

$

2,761

 

 

$

2,616

 

Platform and infrastructure revenues

 

 

4,715

 

 

 

4,685

 

Total cloud and license revenues

 

$

7,476

 

 

$

7,301