XML 10 R28.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2
SEGMENT INFORMATION (Tables)
 6 Months Ended
Nov. 30, 2019
Segment Reporting [Abstract]  
Summary of Businesses Results

 

 

 

Three Months Ended

November 30,

 

 

Six Months Ended

November 30,

 

(in millions)

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Cloud and license:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues(1)

 

$

7,938

 

 

$

7,859

 

 

$

15,556

 

 

$

15,342

 

Cloud services and license support expenses

 

 

970

 

 

 

912

 

 

 

1,901

 

 

 

1,779

 

Sales and marketing expenses

 

 

1,856

 

 

 

1,834

 

 

 

3,612

 

 

 

3,577

 

Margin(2)

 

$

5,112

 

 

$

5,113

 

 

$

10,043

 

 

$

9,986

 

Hardware:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

871

 

 

$

891

 

 

$

1,686

 

 

$

1,796

 

Hardware products and support expenses

 

 

277

 

 

 

325

 

 

 

541

 

 

 

642

 

Sales and marketing expenses

 

 

114

 

 

 

118

 

 

 

231

 

 

 

257

 

Margin(2)

 

$

480

 

 

$

448

 

 

$

914

 

 

$

897

 

Services:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

806

 

 

$

817

 

 

$

1,593

 

 

$

1,630

 

Services expenses

 

 

700

 

 

 

677

 

 

 

1,365

 

 

 

1,353

 

Margin(2)

 

$

106

 

 

$

140

 

 

$

228

 

 

$

277

 

Totals:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues(1)

 

$

9,615

 

 

$

9,567

 

 

$

18,835

 

 

$

18,768

 

Expenses

 

 

3,917

 

 

 

3,866

 

 

 

7,650

 

 

 

7,608

 

Margin(2)

 

$

5,698

 

 

$

5,701

 

 

$

11,185

 

 

$

11,160

 

 

(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 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

November 30,

 

 

Six Months Ended

November 30,

 

(in millions)

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Total revenues for operating segments

 

$

9,615

 

 

$

9,567

 

 

$

18,835

 

 

$

18,768

 

Cloud and license revenues(1)

 

 

(1

)

 

 

(5

)

 

 

(3

)

 

 

(13

)

Total revenues

 

$

9,614

 

 

$

9,562

 

 

$

18,832

 

 

$

18,755

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

 

Total margin for operating segments

 

$

5,698

 

 

$

5,701

 

 

$

11,185

 

 

$

11,160

 

Cloud and license revenues(1)

 

 

(1

)

 

 

(5

)

 

 

(3

)

 

 

(13

)

Research and development

 

 

(1,531

)

 

 

(1,475

)

 

 

(3,088

)

 

 

(3,039

)

General and administrative

 

 

(323

)

 

 

(299

)

 

 

(615

)

 

 

(619

)

Amortization of intangible assets

 

 

(407

)

 

 

(424

)

 

 

(821

)

 

 

(858

)

Acquisition related and other

 

 

(12

)

 

 

(18

)

 

 

(37

)

 

 

(32

)

Restructuring

 

 

(42

)

 

 

(143

)

 

 

(120

)

 

 

(233

)

Stock-based compensation for operating segments

 

 

(84

)

 

 

(131

)

 

 

(220

)

 

 

(266

)

Expense allocations and other, net

 

 

(115

)

 

 

(105

)

 

 

(221

)

 

 

(222

)

Interest expense

 

 

(465

)

 

 

(519

)

 

 

(959

)

 

 

(1,048

)

Non-operating income, net

 

 

92

 

 

 

192

 

 

 

191

 

 

 

484

 

Income before provision for income taxes

 

$

2,810

 

 

$

2,774

 

 

$

5,292

 

 

$

5,314

 

 

(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 revenues as reported in our condensed consolidated statements of operations.
Disaggregation of Revenue by Geography and Ecosystem

 

 

Three Months Ended

November 30,

 

 

Six Months Ended

November 30,

 

(in millions)

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Americas

 

$

5,304

 

 

$

5,243

 

 

$

10,454

 

 

$

10,404

 

EMEA(1)

 

 

2,695

 

 

 

2,782

 

 

 

5,248

 

 

 

5,358

 

Asia Pacific

 

 

1,615

 

 

 

1,537

 

 

 

3,130

 

 

 

2,993

 

Total revenues

 

$

9,614

 

 

$

9,562

 

 

$

18,832

 

 

$

18,755

 

 

(1)

Comprised of Europe, the Middle East and Africa

 

 

Three Months Ended

November 30,

 

 

Six Months Ended

November 30,

 

(in millions)

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Applications revenues

 

$

2,909

 

 

$

2,808

 

 

$

5,730

 

 

$

5,569

 

Infrastructure revenues

 

 

5,028

 

 

 

5,046

 

 

 

9,823

 

 

 

9,760

 

Total cloud and license revenues

 

$

7,937

 

 

$

7,854

 

 

$

15,553

 

 

$

15,329