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SEGMENT INFORMATION (Tables)
 12 Months Ended
May 31, 2022
Segment Reporting [Abstract]  
Summary of Businesses Results

 

 

 

Year Ended May 31,

 

(in millions)

 

2022

 

 

2021

 

 

2020

 

Cloud and license:

 

 

 

 

 

 

 

 

 

 

 

 

Revenues(1)

 

$

36,052

 

 

$

34,101

 

 

$

32,523

 

Cloud services and license support expenses

 

 

4,915

 

 

 

4,133

 

 

 

3,803

 

Sales and marketing expenses

 

 

7,054

 

 

 

6,799

 

 

 

7,159

 

Margin(2)

 

$

24,083

 

 

$

23,169

 

 

$

21,561

 

Hardware:

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

3,183

 

 

$

3,359

 

 

$

3,443

 

Hardware products and support expenses

 

 

944

 

 

 

945

 

 

 

1,084

 

Sales and marketing expenses

 

 

361

 

 

 

388

 

 

 

456

 

Margin(2)

 

$

1,878

 

 

$

2,026

 

 

$

1,903

 

Services:

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

3,205

 

 

$

3,021

 

 

$

3,106

 

Services expenses

 

 

2,539

 

 

 

2,393

 

 

 

2,656

 

Margin(2)

 

$

666

 

 

$

628

 

 

$

450

 

Totals:

 

 

 

 

 

 

 

 

 

 

 

 

Revenues(1)

 

$

42,440

 

 

$

40,481

 

 

$

39,072

 

Expenses

 

 

15,813

 

 

 

14,658

 

 

 

15,158

 

Margin(2)

 

$

26,627

 

 

$

25,823

 

 

$

23,914

 

 

(1)

Cloud and license revenues and total revenues presented for management reporting for fiscal 2021 and fiscal 2020 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 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 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 or income, net. Refer to the table below for a reconciliation of our total margin for operating segments to our income before income taxes as reported per our consolidated statements of operations.
Reconciliation of Total Operating Segment Revenues to Total Revenues

 

 

 

Year Ended May 31,

 

(in millions)

 

2022

 

 

2021

 

 

2020

 

Total revenues for operating segments

 

$

42,440

 

 

$

40,481

 

 

$

39,072

 

Cloud and license revenues(1)

 

 

—

 

 

 

(2

)

 

 

(4

)

Total revenues

 

$

42,440

 

 

$

40,479

 

 

$

39,068

 
Reconciliation of Total Operating Segment Margin to Income before Income Taxes

 

Total margin for operating segments

 

$

26,627

 

 

$

25,823

 

 

$

23,914

 

Cloud and license revenues(1)

 

 

—

 

 

 

(2

)

 

 

(4

)

Research and development

 

 

(7,219

)

 

 

(6,527

)

 

 

(6,067

)

General and administrative

 

 

(1,317

)

 

 

(1,254

)

 

 

(1,181

)

Amortization of intangible assets

 

 

(1,150

)

 

 

(1,379

)

 

 

(1,586

)

Acquisition related and other

 

 

(4,713

)

 

 

(138

)

 

 

(56

)

Restructuring

 

 

(191

)

 

 

(431

)

 

 

(250

)

Stock-based compensation for operating segments

 

 

(735

)

 

 

(513

)

 

 

(436

)

Expense allocations and other, net

 

 

(376

)

 

 

(366

)

 

 

(438

)

Interest expense

 

 

(2,755

)

 

 

(2,496

)

 

 

(1,995

)

Non-operating (expenses) income, net

 

 

(522

)

 

 

282

 

 

 

162

 

Income before income taxes

 

$

7,649

 

 

$

12,999

 

 

$

12,063

 

 

(1)

Cloud and license revenues presented for management reporting for fiscal 2021 and fiscal 2020 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 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 consolidated statements of operations for all periods presented.

Disaggregation of Revenue by Geography and Ecosystem

 

 

Year Ended May 31,

 

(in millions)

 

2022

 

 

2021

 

 

2020

 

Americas

 

$

23,679

 

 

$

21,828

 

 

$

21,563

 

EMEA(1)

 

 

12,011

 

 

 

11,894

 

 

 

11,035

 

Asia Pacific

 

 

6,750

 

 

 

6,757

 

 

 

6,470

 

Total revenues

 

$

42,440

 

 

$

40,479

 

 

$

39,068

 

 

(1)

Comprised of Europe, the Middle East and Africa  

 

 

 

Year Ended May 31,

 

(in millions)

 

2022

 

 

2021

 

 

2020

 

Applications cloud services and license support

 

$

12,612

 

 

$

11,712

 

 

$

11,015

 

Infrastructure cloud services and license support

 

 

17,562

 

 

 

16,988

 

 

 

16,377

 

Total cloud services and license support revenues

 

$

30,174

 

 

$

28,700

 

 

$

27,392

 

 
Geographic Information

 

 

As of and for the Year Ended May 31,

 

 

 

2022

 

 

2021

 

 

2020

 

(in millions)

 

Revenues

 

 

Long-Lived

Assets(1)

 

 

Revenues

 

 

Long-Lived

Assets(1)

 

 

Revenues

 

 

Long-Lived

Assets(1)

 

United States

 

$

20,246

 

 

$

10,300

 

 

$

18,734

 

 

$

6,826

 

 

$

18,428

 

 

$

6,012

 

United Kingdom

 

 

2,335

 

 

 

805

 

 

 

2,110

 

 

 

685

 

 

 

1,904

 

 

 

472

 

Japan

 

 

1,847

 

 

 

788

 

 

 

1,988

 

 

 

650

 

 

 

1,977

 

 

 

655

 

Germany

 

 

1,799

 

 

 

813

 

 

 

1,744

 

 

 

561

 

 

 

1,510

 

 

 

418

 

Canada

 

 

1,347

 

 

 

298

 

 

 

1,281

 

 

 

199

 

 

 

1,162

 

 

 

169

 

Other countries

 

 

14,866

 

 

 

3,140

 

 

 

14,622

 

 

 

2,464

 

 

 

14,087

 

 

 

1,977

 

Total

 

$

42,440

 

 

$

16,144

 

 

$

40,479

 

 

$

11,385

 

 

$

39,068

 

 

$

9,703

 

 

(1)

Long-lived assets exclude goodwill, intangible assets, equity investments and deferred taxes, which are not allocated to specific geographic locations as it is impracticable to do so.