SEGMENT INFORMATION (Tables)

6 Months Ended

Nov. 30, 2022

	Three Months Ended November 30,				Six Months Ended November 30,
(in millions)	2022		2021		2022		2021
Cloud and license:
Revenues	$	10,033	$	8,791	$	19,354	$	16,974
Cloud services and license support expenses		1,747		1,184		3,367		2,337
Sales and marketing expenses		1,934		1,696		3,864		3,322
Margin⁽¹⁾	$	6,352	$	5,911	$	12,123	$	11,315
Hardware:
Revenues	$	850	$	767	$	1,613	$	1,530
Hardware products and support expenses		279		221		522		459
Sales and marketing expenses		83		88		162		177
Margin⁽¹⁾	$	488	$	458	$	929	$	894
Services:
Revenues	$	1,392	$	802	$	2,753	$	1,583
Services expenses		1,111		631		2,118		1,240
Margin⁽¹⁾	$	281	$	171	$	635	$	343
Totals:
Revenues	$	12,275	$	10,360	$	23,720	$	20,087
Expenses		5,154		3,820		10,033		7,535
Margin⁽¹⁾	$	7,121	$	6,540	$	13,687	$	12,552

⁽¹⁾

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. Refer to the table below for a reconciliation of our total margin for operating segments to our income (loss) before income taxes as reported per our condensed consolidated statements of operations.

Reconciliation of Total Operating Segment Margin to Income before Income Taxes

	Three Months Ended November 30,						Six Months Ended November 30,
(in millions)	2022			2021			2022			2021
Total margin for operating segments	$	7,121		$	6,540		$	13,687		$	12,552
Research and development		(2,158	)		(1,754	)		(4,251	)		(3,438	)
General and administrative		(366	)		(319	)		(777	)		(618	)
Amortization of intangible assets		(907	)		(299	)		(1,826	)		(603	)
Acquisition related and other		(62	)		(4,667	)		(103	)		(4,687	)
Restructuring		(137	)		(32	)		(281	)		(70	)
Stock-based compensation for operating segments		(304	)		(192	)		(548	)		(344	)
Expense allocations and other, net		(116	)		(101	)		(207	)		(190	)
Interest expense		(856	)		(679	)		(1,643	)		(1,384	)
Non-operating (expenses) income, net		(71	)		7			(251	)		(34	)
Income (loss) before income taxes	$	2,144		$	(1,496	)	$	3,800		$	1,184

Disaggregation of Revenue by Geography and Ecosystem

	Three Months Ended November 30,				Six Months Ended November 30,
(in millions)	2022		2021		2022		2021
Americas	$	7,786	$	5,736	$	14,978	$	11,056
EMEA⁽¹⁾		2,895		2,953		5,586		5,737
Asia Pacific		1,594		1,671		3,156		3,294
Total revenues	$	12,275	$	10,360	$	23,720	$	20,087

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

	Three Months Ended November 30,				Six Months Ended November 30,
(in millions)	2022		2021		2022		2021
Cloud services	$	3,813	$	2,667	$	7,392	$	5,128
License support		4,785		4,887		9,623		9,797
Total cloud services and license support revenues	$	8,598	$	7,554	$	17,015	$	14,925

	Three Months Ended November 30,				Six Months Ended November 30,
(in millions)	2022		2021		2022		2021
Applications cloud services and license support	$	4,080	$	3,149	$	8,096	$	6,190
Infrastructure cloud services and license support		4,518		4,405		8,919		8,735
Total cloud services and license support revenues	$	8,598	$	7,554	$	17,015	$	14,925