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SEGMENT INFORMATION (Tables)
 9 Months Ended
Feb. 28, 2022
Segment Reporting [Abstract]  
Summary of Businesses Results

 

 

 

Three Months Ended

February 28,

 

 

Nine Months Ended

February 28,

 

(in millions)

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Cloud and license:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues(1)

 

$

8,926

 

 

$

8,529

 

 

$

25,901

 

 

$

24,567

 

Cloud services and license support expenses

 

 

1,231

 

 

 

1,011

 

 

 

3,568

 

 

 

2,977

 

Sales and marketing expenses

 

 

1,760

 

 

 

1,694

 

 

 

5,083

 

 

 

4,947

 

Margin(2)

 

$

5,935

 

 

$

5,824

 

 

$

17,250

 

 

$

16,643

 

Hardware:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

798

 

 

$

820

 

 

$

2,328

 

 

$

2,478

 

Hardware products and support expenses

 

 

237

 

 

 

223

 

 

 

696

 

 

 

698

 

Sales and marketing expenses

 

 

88

 

 

 

95

 

 

 

265

 

 

 

287

 

Margin(2)

 

$

473

 

 

$

502

 

 

$

1,367

 

 

$

1,493

 

Services:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

789

 

 

$

737

 

 

$

2,371

 

 

$

2,209

 

Services expenses

 

 

633

 

 

 

587

 

 

 

1,873

 

 

 

1,767

 

Margin(2)

 

$

156

 

 

$

150

 

 

$

498

 

 

$

442

 

Totals:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues(1)

 

$

10,513

 

 

$

10,086

 

 

$

30,600

 

 

$

29,254

 

Expenses

 

 

3,949

 

 

 

3,610

 

 

 

11,485

 

 

 

10,676

 

Margin(2)

 

$

6,564

 

 

$

6,476

 

 

$

19,115

 

 

$

18,578

 

 

(1)

Cloud and license revenues and total revenues presented for management reporting for the fiscal 2021 periods presented 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 expenses, net.
Reconciliation of Total Operating Segment Revenues to Total Revenues

 

 

 

Three Months Ended

February 28,

 

 

Nine Months Ended

February 28,

 

(in millions)

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Total revenues for operating segments

 

$

10,513

 

 

$

10,086

 

 

$

30,600

 

 

$

29,254

 

Cloud and license revenues(1)

 

 

—

 

 

 

(1

)

 

 

—

 

 

 

(2

)

Total revenues

 

$

10,513

 

 

$

10,085

 

 

$

30,600

 

 

$

29,252

 
Reconciliation of Total Operating Segment Margin to Income before Income Taxes

 

Total margin for operating segments

 

$

6,564

 

 

$

6,476

 

 

$

19,115

 

 

$

18,578

 

Cloud and license revenues(1)

 

 

—

 

 

 

(1

)

 

 

—

 

 

 

(2

)

Research and development

 

 

(1,816

)

 

 

(1,621

)

 

 

(5,254

)

 

 

(4,812

)

General and administrative

 

 

(335

)

 

 

(330

)

 

 

(953

)

 

 

(949

)

Amortization of intangible assets

 

 

(279

)

 

 

(347

)

 

 

(882

)

 

 

(1,037

)

Acquisition related and other

 

 

(20

)

 

 

(13

)

 

 

(4,707

)

 

 

(107

)

Restructuring

 

 

(19

)

 

 

(66

)

 

 

(89

)

 

 

(337

)

Stock-based compensation for operating segments

 

 

(189

)

 

 

(132

)

 

 

(533

)

 

 

(381

)

Expense allocations and other, net

 

 

(84

)

 

 

(88

)

 

 

(273

)

 

 

(281

)

Interest expense

 

 

(667

)

 

 

(585

)

 

 

(2,051

)

 

 

(1,799

)

Non-operating expenses, net

 

 

(315

)

 

 

(17

)

 

 

(348

)

 

 

(30

)

Income before income taxes

 

$

2,840

 

 

$

3,276

 

 

$

4,025

 

 

$

8,843

 

 

(1)

Cloud and license revenues presented for management reporting for the fiscal 2021 periods presented 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

February 28,

 

 

Nine Months Ended

February 28,

 

(in millions)

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Americas

 

$

5,849

 

 

$

5,424

 

 

$

16,905

 

 

$

15,751

 

EMEA(1)

 

 

3,014

 

 

 

2,981

 

 

 

8,751

 

 

 

8,571

 

Asia Pacific

 

 

1,650

 

 

 

1,680

 

 

 

4,944

 

 

 

4,930

 

Total revenues

 

$

10,513

 

 

$

10,085

 

 

$

30,600

 

 

$

29,252

 

 

(1)

Comprised of Europe, the Middle East and Africa

 

 

Three Months Ended

February 28,

 

 

Nine Months Ended

February 28,

 

(in millions)

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Applications cloud services and license support

 

$

3,187

 

 

$

2,952

 

 

$

9,377

 

 

$

8,669

 

Infrastructure cloud services and license support

 

 

4,450

 

 

 

4,300

 

 

 

13,185

 

 

 

12,642

 

Total cloud services and license support revenues

 

$

7,637

 

 

$

7,252

 

 

$

22,562

 

 

$

21,311