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SEGMENT INFORMATION (Tables)
 3 Months Ended
Aug. 31, 2020
Segment Reporting [Abstract]  
Summary of Businesses Results

 

 

 

Three Months Ended

August 31,

 

(in millions)

 

2020

 

 

2019

 

Cloud and license:

 

 

 

 

 

 

 

 

Revenues(1)

 

$

7,834

 

 

$

7,619

 

Cloud services and license support expenses

 

 

958

 

 

 

931

 

Sales and marketing expenses

 

 

1,633

 

 

 

1,757

 

Margin(2)

 

$

5,243

 

 

$

4,931

 

Hardware:

 

 

 

 

 

 

 

 

Revenues

 

$

814

 

 

$

815

 

Hardware products and support expenses

 

 

239

 

 

 

264

 

Sales and marketing expenses

 

 

98

 

 

 

117

 

Margin(2)

 

$

477

 

 

$

434

 

Services:

 

 

 

 

 

 

 

 

Revenues

 

$

720

 

 

$

786

 

Services expenses

 

 

585

 

 

 

665

 

Margin(2)

 

$

135

 

 

$

121

 

Totals:

 

 

 

 

 

 

 

 

Revenues(1)

 

$

9,368

 

 

$

9,220

 

Expenses

 

 

3,513

 

 

 

3,734

 

Margin(2)

 

$

5,855

 

 

$

5,486

 

 

(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 9 of Notes to Consolidated Financial Statements included in our Annual Report on Form 10-K for the year ended May 31, 2020 for an explanation of these adjustments and the table below for a reconciliation of our total operating segment revenues to our total 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

August 31,

 

(in millions)

 

2020

 

 

2019

 

Total revenues for operating segments

 

$

9,368

 

 

$

9,220

 

Cloud and license revenues(1)

 

 

(1

)

 

 

(2

)

Total revenues

 

$

9,367

 

 

$

9,218

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

 

Total margin for operating segments

 

$

5,855

 

 

$

5,486

 

Cloud and license revenues(1)

 

 

(1

)

 

 

(2

)

Research and development

 

 

(1,589

)

 

 

(1,557

)

General and administrative

 

 

(295

)

 

 

(292

)

Amortization of intangible assets

 

 

(345

)

 

 

(414

)

Acquisition related and other

 

 

(19

)

 

 

(25

)

Restructuring

 

 

(174

)

 

 

(78

)

Stock-based compensation for operating segments

 

 

(116

)

 

 

(136

)

Expense allocations and other, net

 

 

(105

)

 

 

(105

)

Interest expense

 

 

(614

)

 

 

(494

)

Non-operating (expenses) income, net

 

 

(2

)

 

 

99

 

Income before provision for income taxes

 

$

2,595

 

 

$

2,482

 

 

(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 9 of Notes to Consolidated Financial Statements included in our Annual Report on Form 10-K for the year ended May 31, 2020 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

August 31,

 

(in millions)

 

2020

 

 

2019

 

Americas

 

$

5,068

 

 

$

5,150

 

EMEA(1)

 

 

2,738

 

 

 

2,553

 

Asia Pacific

 

 

1,561

 

 

 

1,515

 

Total revenues

 

$

9,367

 

 

$

9,218

 

 

(1)

Comprised of Europe, the Middle East and Africa

 

 

Three Months Ended

August 31,

 

(in millions)

 

2020

 

 

2019

 

Applications cloud services and license support

 

$

2,816

 

 

$

2,704

 

Infrastructure cloud services and license support

 

 

4,131

 

 

 

4,101

 

Total cloud services and license support revenues

 

$

6,947

 

 

$

6,805