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SEGMENT INFORMATION (Tables)
 12 Months Ended
May 31, 2020
Segment Reporting [Abstract]  
Summary of Businesses Results

 

 

 

Year Ended May 31,

 

(in millions)

 

2020

 

 

2019

 

 

2018

 

Cloud and license:

 

 

 

 

 

 

 

 

 

 

 

 

Revenues(1)

 

$

32,523

 

 

$

32,582

 

 

$

32,041

 

Cloud services and license support expenses

 

 

3,803

 

 

 

3,597

 

 

 

3,441

 

Sales and marketing expenses

 

 

7,159

 

 

 

7,398

 

 

 

7,213

 

Margin(2)

 

$

21,561

 

 

$

21,587

 

 

$

21,387

 

Hardware:

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

3,443

 

 

$

3,704

 

 

$

3,994

 

Hardware products and support expenses

 

 

1,084

 

 

 

1,327

 

 

 

1,547

 

Sales and marketing expenses

 

 

456

 

 

 

520

 

 

 

643

 

Margin(2)

 

$

1,903

 

 

$

1,857

 

 

$

1,804

 

Services:

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

3,106

 

 

$

3,240

 

 

$

3,395

 

Services expenses

 

 

2,656

 

 

 

2,703

 

 

 

2,729

 

Margin(2)

 

$

450

 

 

$

537

 

 

$

666

 

Totals:

 

 

 

 

 

 

 

 

 

 

 

 

Revenues(1)

 

$

39,072

 

 

$

39,526

 

 

$

39,430

 

Expenses

 

 

15,158

 

 

 

15,545

 

 

 

15,573

 

Margin(2)

 

$

23,914

 

 

$

23,981

 

 

$

23,857

 

 

(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)

 

2020

 

 

2019

 

 

2018

 

Total revenues for operating segments

 

$

39,072

 

 

$

39,526

 

 

$

39,430

 

Cloud and license revenues(1)

 

 

(4

)

 

 

(20

)

 

 

(47

)

Total revenues

 

$

39,068

 

 

$

39,506

 

 

$

39,383

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

 

Total margin for operating segments

 

$

23,914

 

 

$

23,981

 

 

$

23,857

 

Cloud and license revenues(1)

 

 

(4

)

 

 

(20

)

 

 

(47

)

Research and development

 

 

(6,067

)

 

 

(6,026

)

 

 

(6,084

)

General and administrative

 

 

(1,181

)

 

 

(1,265

)

 

 

(1,282

)

Amortization of intangible assets

 

 

(1,586

)

 

 

(1,689

)

 

 

(1,620

)

Acquisition related and other

 

 

(56

)

 

 

(44

)

 

 

(52

)

Restructuring

 

 

(250

)

 

 

(443

)

 

 

(588

)

Stock-based compensation for operating segments

 

 

(436

)

 

 

(518

)

 

 

(505

)

Expense allocations and other, net

 

 

(438

)

 

 

(441

)

 

 

(415

)

Interest expense

 

 

(1,995

)

 

 

(2,082

)

 

 

(2,025

)

Non-operating income, net

 

 

162

 

 

 

815

 

 

 

1,185

 

Income before provision for income taxes

 

$

12,063

 

 

$

12,268

 

 

$

12,424

 

 

(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)

 

2020

 

 

2019

 

 

2018

 

Americas

 

$

21,563

 

 

$

21,856

 

 

$

21,648

 

EMEA(1)

 

 

11,035

 

 

 

11,270

 

 

 

11,409

 

Asia Pacific

 

 

6,470

 

 

 

6,380

 

 

 

6,326

 

Total revenues

 

$

39,068

 

 

$

39,506

 

 

$

39,383

 

 

(1)

Comprised of Europe, the Middle East and Africa  

 

 

Year Ended May 31,

 

(in millions)

 

2020

 

 

2019

 

 

2018

 

Applications cloud services and license support

 

$

11,015

 

 

$

10,553

 

 

$

10,038

 

Infrastructure cloud services and license support

 

 

16,377

 

 

 

16,154

 

 

 

16,184

 

Total cloud services and license support revenues

 

$

27,392

 

 

$

26,707

 

 

$

26,222

 

 
Geographic Information

 

 

As of and for the Year Ended May 31,

 

 

 

2020

 

 

2019

 

 

2018

 

(in millions)

 

Revenues

 

 

Long-Lived

Assets(1)

 

 

Revenues

 

 

Long-Lived

Assets(1)

 

 

Revenues

 

 

Long-Lived

Assets(1)

 

United States

 

$

18,428

 

 

$

6,012

 

 

$

18,596

 

 

$

5,318

 

 

$

18,330

 

 

$

4,976

 

Japan

 

 

1,977

 

 

 

655

 

 

 

1,848

 

 

 

422

 

 

 

1,716

 

 

 

388

 

United Kingdom

 

 

1,904

 

 

 

472

 

 

 

2,054

 

 

 

423

 

 

 

2,093

 

 

 

510

 

Germany

 

 

1,510

 

 

 

418

 

 

 

1,583

 

 

 

263

 

 

 

1,526

 

 

 

179

 

Canada

 

 

1,162

 

 

 

169

 

 

 

1,166

 

 

 

87

 

 

 

1,200

 

 

 

78

 

Other countries

 

 

14,087

 

 

 

1,977

 

 

 

14,259

 

 

 

1,356

 

 

 

14,518

 

 

 

1,223

 

Total

 

$

39,068

 

 

$

9,703

 

 

$

39,506

 

 

$

7,869

 

 

$

39,383

 

 

$

7,354

 

 

(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.