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SEGMENT INFORMATION (Tables)
 6 Months Ended
Nov. 30, 2020
Segment Reporting [Abstract]  
Summary of Businesses Results

 

 

 

Three Months Ended

November 30,

 

 

Six Months Ended

November 30,

 

(in millions)

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Cloud and license:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues(1)

 

$

8,204

 

 

$

7,938

 

 

$

16,038

 

 

$

15,556

 

Cloud services and license support expenses

 

 

1,008

 

 

 

970

 

 

 

1,966

 

 

 

1,901

 

Sales and marketing expenses

 

 

1,620

 

 

 

1,856

 

 

 

3,253

 

 

 

3,612

 

Margin(2)

 

$

5,576

 

 

$

5,112

 

 

$

10,819

 

 

$

10,043

 

Hardware:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

844

 

 

$

871

 

 

$

1,658

 

 

$

1,686

 

Hardware products and support expenses

 

 

236

 

 

 

277

 

 

 

475

 

 

 

541

 

Sales and marketing expenses

 

 

94

 

 

 

114

 

 

 

192

 

 

 

231

 

Margin(2)

 

$

514

 

 

$

480

 

 

$

991

 

 

$

914

 

Services:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

752

 

 

$

806

 

 

$

1,472

 

 

$

1,593

 

Services expenses

 

 

595

 

 

 

700

 

 

 

1,180

 

 

 

1,365

 

Margin(2)

 

$

157

 

 

$

106

 

 

$

292

 

 

$

228

 

Totals:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues(1)

 

$

9,800

 

 

$

9,615

 

 

$

19,168

 

 

$

18,835

 

Expenses

 

 

3,553

 

 

 

3,917

 

 

 

7,066

 

 

 

7,650

 

Margin(2)

 

$

6,247

 

 

$

5,698

 

 

$

12,102

 

 

$

11,185

 

 

(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

November 30,

 

 

Six Months Ended

November 30,

 

(in millions)

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Total revenues for operating segments

 

$

9,800

 

 

$

9,615

 

 

$

19,168

 

 

$

18,835

 

Cloud and license revenues(1)

 

 

—

 

 

 

(1

)

 

 

(1

)

 

 

(3

)

Total revenues

 

$

9,800

 

 

$

9,614

 

 

$

19,167

 

 

$

18,832

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

 

Total margin for operating segments

 

$

6,247

 

 

$

5,698

 

 

$

12,102

 

 

$

11,185

 

Cloud and license revenues(1)

 

 

—

 

 

 

(1

)

 

 

(1

)

 

 

(3

)

Research and development

 

 

(1,601

)

 

 

(1,531

)

 

 

(3,190

)

 

 

(3,088

)

General and administrative

 

 

(324

)

 

 

(323

)

 

 

(619

)

 

 

(615

)

Amortization of intangible assets

 

 

(345

)

 

 

(407

)

 

 

(690

)

 

 

(821

)

Acquisition related and other

 

 

(76

)

 

 

(12

)

 

 

(95

)

 

 

(37

)

Restructuring

 

 

(96

)

 

 

(42

)

 

 

(270

)

 

 

(120

)

Stock-based compensation for operating segments

 

 

(133

)

 

 

(84

)

 

 

(249

)

 

 

(220

)

Expense allocations and other, net

 

 

(89

)

 

 

(115

)

 

 

(194

)

 

 

(221

)

Interest expense

 

 

(600

)

 

 

(465

)

 

 

(1,214

)

 

 

(959

)

Non-operating (expense) income, net

 

 

(11

)

 

 

92

 

 

 

(13

)

 

 

191

 

Income before provision for income taxes

 

$

2,972

 

 

$

2,810

 

 

$

5,567

 

 

$

5,292

 

 

(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

November 30,

 

 

Six Months Ended

November 30,

 

(in millions)

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Americas

 

$

5,259

 

 

$

5,304

 

 

$

10,327

 

 

$

10,454

 

EMEA(1)

 

 

2,852

 

 

 

2,695

 

 

 

5,590

 

 

 

5,248

 

Asia Pacific

 

 

1,689

 

 

 

1,615

 

 

 

3,250

 

 

 

3,130

 

Total revenues

 

$

9,800

 

 

$

9,614

 

 

$

19,167

 

 

$

18,832

 

 

(1)

Comprised of Europe, the Middle East and Africa

 

 

Three Months Ended

November 30,

 

 

Six Months Ended

November 30,

 

(in millions)

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Applications cloud services and license support

 

$

2,901

 

 

$

2,753

 

 

$

5,717

 

 

$

5,457

 

Infrastructure cloud services and license support

 

 

4,211

 

 

 

4,058

 

 

 

8,342

 

 

 

8,159

 

Total cloud services and license support revenues

 

$

7,112

 

 

$

6,811

 

 

$

14,059

 

 

$

13,616