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SEGMENT INFORMATION (Tables)
 9 Months Ended
Feb. 28, 2019
Segment Reporting [Abstract]  
Summary of Businesses Results

 

 

Three Months Ended

February 28,

 

 

Nine Months Ended

February 28,

 

(in millions)

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Cloud and license:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues(1)

 

$

7,917

 

 

$

7,891

 

 

$

23,259

 

 

$

23,018

 

Cloud services and license support expenses

 

 

890

 

 

 

854

 

 

 

2,668

 

 

 

2,526

 

Sales and marketing expenses

 

 

1,780

 

 

 

1,743

 

 

 

5,357

 

 

 

5,200

 

Margin(2)

 

$

5,247

 

 

$

5,294

 

 

$

15,234

 

 

$

15,292

 

Hardware:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

915

 

 

$

994

 

 

$

2,711

 

 

$

2,878

 

Hardware products and support expenses

 

 

331

 

 

 

387

 

 

 

973

 

 

 

1,094

 

Sales and marketing expenses

 

 

123

 

 

 

155

 

 

 

381

 

 

 

487

 

Margin(2)

 

$

461

 

 

$

452

 

 

$

1,357

 

 

$

1,297

 

Services:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

786

 

 

$

796

 

 

$

2,416

 

 

$

2,512

 

Services expenses

 

 

662

 

 

 

673

 

 

 

2,015

 

 

 

2,015

 

Margin(2)

 

$

124

 

 

$

123

 

 

$

401

 

 

$

497

 

Totals:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues(1)

 

$

9,618

 

 

$

9,681

 

 

$

28,386

 

 

$

28,408

 

Expenses

 

 

3,786

 

 

 

3,812

 

 

 

11,394

 

 

 

11,322

 

Margin(2)

 

$

5,832

 

 

$

5,869

 

 

$

16,992

 

 

$

17,086

 

 

(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 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 research and 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

February 28,

 

 

Nine Months Ended

February 28,

 

(in millions)

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Total revenues for operating segments

 

$

9,618

 

 

$

9,681

 

 

$

28,386

 

 

$

28,408

 

Cloud and license revenues(1)

 

 

(4

)

 

 

(5

)

 

 

(17

)

 

 

(39

)

Total revenues

 

$

9,614

 

 

$

9,676

 

 

$

28,369

 

 

$

28,369

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

Total margin for operating segments

 

$

5,832

 

 

$

5,869

 

 

$

16,992

 

 

$

17,086

 

Cloud and license revenues(1)

 

 

(4

)

 

 

(5

)

 

 

(17

)

 

 

(39

)

Research and development

 

 

(1,426

)

 

 

(1,496

)

 

 

(4,464

)

 

 

(4,541

)

General and administrative

 

 

(316

)

 

 

(339

)

 

 

(935

)

 

 

(977

)

Amortization of intangible assets

 

 

(407

)

 

 

(394

)

 

 

(1,265

)

 

 

(1,205

)

Acquisition related and other

 

 

4

 

 

 

(3

)

 

 

(29

)

 

 

(32

)

Restructuring

 

 

(43

)

 

 

(91

)

 

 

(275

)

 

 

(506

)

Stock-based compensation for operating segments

 

 

(129

)

 

 

(123

)

 

 

(396

)

 

 

(382

)

Expense allocations and other, net

 

 

(112

)

 

 

(103

)

 

 

(333

)

 

 

(301

)

Interest expense

 

 

(509

)

 

 

(533

)

 

 

(1,557

)

 

 

(1,477

)

Non-operating income, net

 

 

198

 

 

 

409

 

 

 

681

 

 

 

891

 

Income before provision for income taxes

 

$

3,088

 

 

$

3,191

 

 

$

8,402

 

 

$

8,517

 

 

(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

February 28,

 

 

Nine Months Ended

February 28,

 

(in millions)

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Americas

 

$

5,266

 

 

$

5,253

 

 

$

15,671

 

 

$

15,632

 

EMEA(1)

 

 

2,781

 

 

 

2,881

 

 

 

8,139

 

 

 

8,213

 

Asia Pacific(2)

 

 

1,567

 

 

 

1,542

 

 

 

4,559

 

 

 

4,524

 

Total revenues

 

$

9,614

 

 

$

9,676

 

 

$

28,369

 

 

$

28,369

 

 

(1)

Comprised of Europe, the Middle East and Africa

(2)

The Asia Pacific region includes Japan

 

 

Three Months Ended

February 28,

 

 

Nine Months Ended

February 28,

 

(in millions)

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Applications revenues

 

$

2,841

 

 

$

2,717

 

 

$

8,410

 

 

$

8,001

 

Infrastructure revenues

 

 

5,072

 

 

 

5,169

 

 

 

14,832

 

 

 

14,978

 

Total cloud and license revenues

 

$

7,913

 

 

$

7,886

 

 

$

23,242

 

 

$

22,979