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SEGMENT INFORMATION (Tables)
 9 Months Ended
Feb. 29, 2020
Segment Reporting [Abstract]  
Summary of Businesses Results

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

(in millions)

 

February 29,

2020

 

 

February 28,

2019

 

 

February 29,

2020

 

 

February 28,

2019

 

Cloud and license:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues(1)

 

$

8,162

 

 

$

7,917

 

 

$

23,718

 

 

$

23,259

 

Cloud services and license support expenses

 

 

943

 

 

 

890

 

 

 

2,844

 

 

 

2,668

 

Sales and marketing expenses

 

 

1,816

 

 

 

1,780

 

 

 

5,428

 

 

 

5,357

 

Margin(2)

 

$

5,403

 

 

$

5,247

 

 

$

15,446

 

 

$

15,234

 

Hardware:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

857

 

 

$

915

 

 

$

2,542

 

 

$

2,711

 

Hardware products and support expenses

 

 

262

 

 

 

331

 

 

 

803

 

 

 

973

 

Sales and marketing expenses

 

 

107

 

 

 

123

 

 

 

338

 

 

 

381

 

Margin(2)

 

$

488

 

 

$

461

 

 

$

1,401

 

 

$

1,357

 

Services:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

778

 

 

$

786

 

 

$

2,372

 

 

$

2,416

 

Services expenses

 

 

660

 

 

 

662

 

 

 

2,025

 

 

 

2,015

 

Margin(2)

 

$

118

 

 

$

124

 

 

$

347

 

 

$

401

 

Totals:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues(1)

 

$

9,797

 

 

$

9,618

 

 

$

28,632

 

 

$

28,386

 

Expenses

 

 

3,788

 

 

 

3,786

 

 

 

11,438

 

 

 

11,394

 

Margin(2)

 

$

6,009

 

 

$

5,832

 

 

$

17,194

 

 

$

16,992

 

 

(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

 

 

Nine Months Ended

 

(in millions)

 

February 29,

2020

 

 

February 28,

2019

 

 

February 29,

2020

 

 

February 28,

2019

 

Total revenues for operating segments

 

$

9,797

 

 

$

9,618

 

 

$

28,632

 

 

$

28,386

 

Cloud and license revenues(1)

 

 

(1

)

 

 

(4

)

 

 

(3

)

 

 

(17

)

Total revenues

 

$

9,796

 

 

$

9,614

 

 

$

28,629

 

 

$

28,369

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

 

Total margin for operating segments

 

$

6,009

 

 

$

5,832

 

 

$

17,194

 

 

$

16,992

 

Cloud and license revenues(1)

 

 

(1

)

 

 

(4

)

 

 

(3

)

 

 

(17

)

Research and development

 

 

(1,500

)

 

 

(1,426

)

 

 

(4,588

)

 

 

(4,464

)

General and administrative

 

 

(288

)

 

 

(316

)

 

 

(903

)

 

 

(935

)

Amortization of intangible assets

 

 

(400

)

 

 

(407

)

 

 

(1,221

)

 

 

(1,265

)

Acquisition related and other

 

 

(7

)

 

 

4

 

 

 

(44

)

 

 

(29

)

Restructuring

 

 

(60

)

 

 

(43

)

 

 

(181

)

 

 

(275

)

Stock-based compensation for operating segments

 

 

(106

)

 

 

(129

)

 

 

(325

)

 

 

(396

)

Expense allocations and other, net

 

 

(119

)

 

 

(112

)

 

 

(341

)

 

 

(333

)

Interest expense

 

 

(456

)

 

 

(509

)

 

 

(1,416

)

 

 

(1,557

)

Non-operating income, net

 

 

4

 

 

 

198

 

 

 

195

 

 

 

681

 

Income before provision for income taxes

 

$

3,076

 

 

$

3,088

 

 

$

8,367

 

 

$

8,402

 

 

(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

 

 

Nine Months Ended

 

(in millions)

 

February 29,

2020

 

 

February 28,

2019

 

 

February 29,

2020

 

 

February 28,

2019

 

Americas

 

$

5,363

 

 

$

5,266

 

 

$

15,817

 

 

$

15,671

 

EMEA(1)

 

 

2,835

 

 

 

2,781

 

 

 

8,083

 

 

 

8,139

 

Asia Pacific

 

 

1,598

 

 

 

1,567

 

 

 

4,729

 

 

 

4,559

 

Total revenues

 

$

9,796

 

 

$

9,614

 

 

$

28,629

 

 

$

28,369

 

 

(1)

Comprised of Europe, the Middle East and Africa

 

 

Three Months Ended

 

 

Nine Months Ended

 

(in millions)

 

February 29,

2020

 

 

February 28,

2019

 

 

February 29,

2020

 

 

February 28,

2019

 

Applications cloud services and license support

 

$

2,809

 

 

$

2,637

 

 

$

8,265

 

 

$

7,838

 

Infrastructure cloud services and license support

 

 

4,121

 

 

 

4,025

 

 

 

12,281

 

 

 

12,070

 

Total cloud services and license support revenues

 

$

6,930

 

 

$

6,662

 

 

$

20,546

 

 

$

19,908