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SEGMENT INFORMATION (Tables)
 9 Months Ended
Feb. 28, 2021
Segment Reporting [Abstract]  
Summary of Businesses Results

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

(in millions)

 

February 28,

2021

 

 

February 29,

2020

 

 

February 28,

2021

 

 

February 29,

2020

 

Cloud and license:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues(1)

 

$

8,529

 

 

$

8,162

 

 

$

24,567

 

 

$

23,718

 

Cloud services and license support expenses

 

 

1,011

 

 

 

943

 

 

 

2,977

 

 

 

2,844

 

Sales and marketing expenses

 

 

1,694

 

 

 

1,816

 

 

 

4,947

 

 

 

5,428

 

Margin(2)

 

$

5,824

 

 

$

5,403

 

 

$

16,643

 

 

$

15,446

 

Hardware:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

820

 

 

$

857

 

 

$

2,478

 

 

$

2,542

 

Hardware products and support expenses

 

 

223

 

 

 

262

 

 

 

698

 

 

 

803

 

Sales and marketing expenses

 

 

95

 

 

 

107

 

 

 

287

 

 

 

338

 

Margin(2)

 

$

502

 

 

$

488

 

 

$

1,493

 

 

$

1,401

 

Services:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

737

 

 

$

778

 

 

$

2,209

 

 

$

2,372

 

Services expenses

 

 

587

 

 

 

660

 

 

 

1,767

 

 

 

2,025

 

Margin(2)

 

$

150

 

 

$

118

 

 

$

442

 

 

$

347

 

Totals:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues(1)

 

$

10,086

 

 

$

9,797

 

 

$

29,254

 

 

$

28,632

 

Expenses

 

 

3,610

 

 

 

3,788

 

 

 

10,676

 

 

 

11,438

 

Margin(2)

 

$

6,476

 

 

$

6,009

 

 

$

18,578

 

 

$

17,194

 

 

(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

 

 

Nine Months Ended

 

(in millions)

 

February 28,

2021

 

 

February 29,

2020

 

 

February 28,

2021

 

 

February 29,

2020

 

Total revenues for operating segments

 

$

10,086

 

 

$

9,797

 

 

$

29,254

 

 

$

28,632

 

Cloud and license revenues(1)

 

 

(1

)

 

 

(1

)

 

 

(2

)

 

 

(3

)

Total revenues

 

$

10,085

 

 

$

9,796

 

 

$

29,252

 

 

$

28,629

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

 

Total margin for operating segments

 

$

6,476

 

 

$

6,009

 

 

$

18,578

 

 

$

17,194

 

Cloud and license revenues(1)

 

 

(1

)

 

 

(1

)

 

 

(2

)

 

 

(3

)

Research and development

 

 

(1,621

)

 

 

(1,500

)

 

 

(4,812

)

 

 

(4,588

)

General and administrative

 

 

(330

)

 

 

(288

)

 

 

(949

)

 

 

(903

)

Amortization of intangible assets

 

 

(347

)

 

 

(400

)

 

 

(1,037

)

 

 

(1,221

)

Acquisition related and other

 

 

(13

)

 

 

(7

)

 

 

(107

)

 

 

(44

)

Restructuring

 

 

(66

)

 

 

(60

)

 

 

(337

)

 

 

(181

)

Stock-based compensation for operating segments

 

 

(132

)

 

 

(106

)

 

 

(381

)

 

 

(325

)

Expense allocations and other, net

 

 

(88

)

 

 

(119

)

 

 

(281

)

 

 

(341

)

Interest expense

 

 

(585

)

 

 

(456

)

 

 

(1,799

)

 

 

(1,416

)

Non-operating (expenses) income, net

 

 

(17

)

 

 

4

 

 

 

(30

)

 

 

195

 

Income before benefit from (provision for) income taxes

 

$

3,276

 

 

$

3,076

 

 

$

8,843

 

 

$

8,367

 

 

(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

 

 

Nine Months Ended

 

(in millions)

 

February 28, 2021

 

 

February 29, 2020

 

 

February 28, 2021

 

 

February 29, 2020

 

Americas

 

$

5,424

 

 

$

5,363

 

 

$

15,751

 

 

$

15,817

 

EMEA(1)

 

 

2,981

 

 

 

2,835

 

 

 

8,571

 

 

 

8,083

 

Asia Pacific

 

 

1,680

 

 

 

1,598

 

 

 

4,930

 

 

 

4,729

 

Total revenues

 

$

10,085

 

 

$

9,796

 

 

$

29,252

 

 

$

28,629

 

 

(1)

Comprised of Europe, the Middle East and Africa

 

 

Three Months Ended

 

 

Nine Months Ended

 

(in millions)

 

February 28,

2021

 

 

February 29,

2020

 

 

February 28,

2021

 

 

February 29,

2020

 

Applications cloud services and license support

 

$

2,952

 

 

$

2,809

 

 

$

8,669

 

 

$

8,265

 

Infrastructure cloud services and license support

 

 

4,300

 

 

 

4,121

 

 

 

12,642

 

 

 

12,281

 

Total cloud services and license support revenues

 

$

7,252

 

 

$

6,930

 

 

$

21,311

 

 

$

20,546