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SEGMENT INFORMATION (Tables)

12 Months Ended

May 31, 2019

	Year Ended May 31,
(in millions)	2019		2018		2017
Cloud and license:
Revenues⁽¹⁾	$	32,582	$	32,041	$	30,452
Cloud services and license support expenses		3,597		3,441		2,881
Sales and marketing expenses		7,398		7,213		6,770
Margin⁽²⁾	$	21,587	$	21,387	$	20,801
Hardware:
Revenues	$	3,704	$	3,994	$	4,152
Hardware products and support expenses		1,327		1,547		1,618
Sales and marketing expenses		520		643		825
Margin⁽²⁾	$	1,857	$	1,804	$	1,709
Services:
Revenues	$	3,240	$	3,395	$	3,359
Services expenses		2,703		2,729		2,661
Margin⁽²⁾	$	537	$	666	$	698
Totals:
Revenues⁽¹⁾	$	39,526	$	39,430	$	37,963
Expenses		15,545		15,573		14,755
Margin⁽²⁾	$	23,981	$	23,857	$	23,208

⁽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 9 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 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 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 per our consolidated statements of operations.

Reconciliation of Total Operating Segment Revenues to Total Revenues

	Year Ended May 31,
(in millions)	2019			2018			2017
Total revenues for operating segments	$	39,526		$	39,430		$	37,963
Cloud and license revenues⁽¹⁾		(20	)		(47	)		(171	)
Total revenues	$	39,506		$	39,383		$	37,792

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

Total margin for operating segments	$	23,981		$	23,857		$	23,208
Cloud and license revenues⁽¹⁾		(20	)		(47	)		(171	)
Research and development		(6,026	)		(6,084	)		(6,153	)
General and administrative		(1,265	)		(1,282	)		(1,172	)
Amortization of intangible assets		(1,689	)		(1,620	)		(1,451	)
Acquisition related and other		(44	)		(52	)		(103	)
Restructuring		(443	)		(588	)		(463	)
Stock-based compensation for operating segments		(518	)		(505	)		(415	)
Expense allocations and other, net		(441	)		(415	)		(367	)
Interest expense		(2,082	)		(2,025	)		(1,798	)
Non-operating income, net		815			1,185			565
Income before provision for income taxes	$	12,268		$	12,424		$	11,680

⁽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 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.

Disaggregation of Revenue by Geography and Ecosystem

	Year Ended May 31,
(in millions)	2019		2018		2017
Americas	$	21,856	$	21,648	$	21,121
EMEA⁽¹⁾		11,270		11,409		10,614
Asia Pacific		6,380		6,326		6,057
Total revenues	$	39,506	$	39,383	$	37,792

⁽¹⁾	Comprised of Europe, the Middle East and Africa

	Year Ended May 31,
(in millions)	2019		2018		2017
Applications revenues	$	11,491	$	11,023	$	9,933
Infrastructure revenues		21,071		20,971		20,348
Total cloud and license revenues	$	32,562	$	31,994	$	30,281

Geographic Information

	As of and for the Year Ended May 31,
	2019				2018				2017
(in millions)	Revenues		Long-Lived Assets⁽¹⁾		Revenues		Long-Lived Assets⁽¹⁾		Revenues		Long-Lived Assets⁽¹⁾
United States	$	18,596	$	5,318	$	18,330	$	4,976	$	17,856	$	4,680
United Kingdom		2,054		423		2,093		510		1,988		402
Japan		1,848		422		1,716		388		1,619		380
Germany		1,583		263		1,526		179		1,415		116
Canada		1,166		87		1,200		78		1,102		60
Other countries		14,259		1,356		14,518		1,223		13,812		1,090
Total	$	39,506	$	7,869	$	39,383	$	7,354	$	37,792	$	6,728

⁽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.