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SEGMENT INFORMATION (Tables)
 6 Months Ended
Nov. 30, 2021
Segment Reporting [Abstract]  
Summary of Businesses Results

 

 

 

Three Months Ended

November 30,

 

 

Six Months Ended

November 30,

 

(in millions)

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Cloud and license:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues(1)

 

$

8,791

 

 

$

8,204

 

 

$

16,974

 

 

$

16,038

 

Cloud services and license support expenses

 

 

1,184

 

 

 

1,008

 

 

 

2,337

 

 

 

1,966

 

Sales and marketing expenses

 

 

1,696

 

 

 

1,620

 

 

 

3,322

 

 

 

3,253

 

Margin(2)

 

$

5,911

 

 

$

5,576

 

 

$

11,315

 

 

$

10,819

 

Hardware:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

767

 

 

$

844

 

 

$

1,530

 

 

$

1,658

 

Hardware products and support expenses

 

 

221

 

 

 

236

 

 

 

459

 

 

 

475

 

Sales and marketing expenses

 

 

88

 

 

 

94

 

 

 

177

 

 

 

192

 

Margin(2)

 

$

458

 

 

$

514

 

 

$

894

 

 

$

991

 

Services:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

802

 

 

$

752

 

 

$

1,583

 

 

$

1,472

 

Services expenses

 

 

631

 

 

 

595

 

 

 

1,240

 

 

 

1,180

 

Margin(2)

 

$

171

 

 

$

157

 

 

$

343

 

 

$

292

 

Totals:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues(1)

 

$

10,360

 

 

$

9,800

 

 

$

20,087

 

 

$

19,168

 

Expenses

 

 

3,820

 

 

 

3,553

 

 

 

7,535

 

 

 

7,066

 

Margin(2)

 

$

6,540

 

 

$

6,247

 

 

$

12,552

 

 

$

12,102

 

 

(1)

Cloud and license revenues and total revenues presented for management reporting for the first half of fiscal 2021 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 due to business combination accounting rules that were applicable to acquisitions closed prior to fiscal 2022. 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 for all periods presented.

(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 or expenses, net.
Reconciliation of Total Operating Segment Revenues to Total Revenues

 

 

 

Three Months Ended

November 30,

 

 

Six Months Ended

November 30,

 

(in millions)

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Total revenues for operating segments

 

$

10,360

 

 

$

9,800

 

 

$

20,087

 

 

$

19,168

 

Cloud and license revenues(1)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(1

)

Total revenues

 

$

10,360

 

 

$

9,800

 

 

$

20,087

 

 

$

19,167

 
Reconciliation of Total Operating Segment Margin to (Loss) Income before Income Taxes

 

Total margin for operating segments

 

$

6,540

 

 

$

6,247

 

 

$

12,552

 

 

$

12,102

 

Cloud and license revenues(1)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(1

)

Research and development

 

 

(1,754

)

 

 

(1,601

)

 

 

(3,438

)

 

 

(3,190

)

General and administrative

 

 

(319

)

 

 

(324

)

 

 

(618

)

 

 

(619

)

Amortization of intangible assets

 

 

(299

)

 

 

(345

)

 

 

(603

)

 

 

(690

)

Acquisition related and other

 

 

(4,667

)

 

 

(76

)

 

 

(4,687

)

 

 

(95

)

Restructuring

 

 

(32

)

 

 

(96

)

 

 

(70

)

 

 

(270

)

Stock-based compensation for operating segments

 

 

(192

)

 

 

(133

)

 

 

(344

)

 

 

(249

)

Expense allocations and other, net

 

 

(101

)

 

 

(89

)

 

 

(190

)

 

 

(194

)

Interest expense

 

 

(679

)

 

 

(600

)

 

 

(1,384

)

 

 

(1,214

)

Non-operating income (expenses), net

 

 

7

 

 

 

(11

)

 

 

(34

)

 

 

(13

)

(Loss) income before income taxes

 

$

(1,496

)

 

$

2,972

 

 

$

1,184

 

 

$

5,567

 

 

(1)

Cloud and license revenues presented for management reporting for the first half of fiscal 2021 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 due to business combination accounting rules that were applicable to acquisitions closed prior to fiscal 2022. This table includes a reconciliation of our total operating segment revenues to our total revenues as reported in our condensed consolidated statements of operations for all periods presented.
Disaggregation of Revenue by Geography and Ecosystem

 

 

Three Months Ended

November 30,

 

 

Six Months Ended

November 30,

 

(in millions)

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Americas

 

$

5,736

 

 

$

5,259

 

 

$

11,056

 

 

$

10,327

 

EMEA(1)

 

 

2,953

 

 

 

2,852

 

 

 

5,737

 

 

 

5,590

 

Asia Pacific

 

 

1,671

 

 

 

1,689

 

 

 

3,294

 

 

 

3,250

 

Total revenues

 

$

10,360

 

 

$

9,800

 

 

$

20,087

 

 

$

19,167

 

 

(1)

Comprised of Europe, the Middle East and Africa

 

 

Three Months Ended

November 30,

 

 

Six Months Ended

November 30,

 

(in millions)

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Applications cloud services and license support

 

$

3,149

 

 

$

2,901

 

 

$

6,190

 

 

$

5,717

 

Infrastructure cloud services and license support

 

 

4,405

 

 

 

4,211

 

 

 

8,735

 

 

 

8,342

 

Total cloud services and license support revenues

 

$

7,554

 

 

$

7,112

 

 

$

14,925

 

 

$

14,059