SEGMENT INFORMATION (Tables)

3 Months Ended

Aug. 31, 2021

Segment Reporting [Abstract]

Summary of Businesses Results

	Three Months Ended August 31,
(in millions)	2021		2020
Cloud and license:
Revenues(1)	$	8,184	$	7,834
Cloud services and license support expenses		1,153		958
Sales and marketing expenses		1,626		1,633
Margin(2)	$	5,405	$	5,243
Hardware:
Revenues	$	763	$	814
Hardware products and support expenses		238		239
Sales and marketing expenses		89		98
Margin(2)	$	436	$	477
Services:
Revenues	$	781	$	720
Services expenses		609		585
Margin(2)	$	172	$	135
Totals:
Revenues(1)	$	9,728	$	9,368
Expenses		3,715		3,513
Margin(2)	$	6,013	$	5,855

⁽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. The table below provides 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 expenses, net.

Reconciliation of Total Operating Segment Revenues to Total Revenues

	Three Months Ended August 31,
(in millions)	2021		2020
Total revenues for operating segments	$	9,728	$	9,368
Cloud and license revenues(1)		—		(1	)
Total revenues	$	9,728	$	9,367

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

Total margin for operating segments	$	6,013		$	5,855
Cloud and license revenues(1)		—			(1	)
Research and development		(1,684	)		(1,589	)
General and administrative		(298	)		(295	)
Amortization of intangible assets		(303	)		(345	)
Acquisition related and other		(21	)		(19	)
Restructuring		(38	)		(174	)
Stock-based compensation for operating segments		(152	)		(116	)
Expense allocations and other, net		(90	)		(105	)
Interest expense		(705	)		(614	)
Non-operating expenses, net		(41	)		(2	)
Income before provision for income taxes	$	2,681		$	2,595

⁽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. This table includes 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)	2021		2020
Americas	$	5,321	$	5,068
EMEA(1)		2,784		2,738
Asia Pacific		1,623		1,561
Total revenues	$	9,728	$	9,367

⁽¹⁾ Comprised of Europe, the Middle East and Africa

	Three Months Ended August 31,
(in millions)	2021		2020
Applications cloud services and license support	$	3,041	$	2,816
Infrastructure cloud services and license support		4,330		4,131
Total cloud services and license support revenues	$	7,371	$	6,947