SEGMENT INFORMATION (Tables)

9 Months Ended

Feb. 28, 2023

	Three Months Ended February 28,				Nine Months Ended February 28,
(in millions)	2023		2022		2023		2022
Cloud and license:
Revenues	$	10,211	$	8,926	$	29,565	$	25,901
Cloud services and license support expenses		1,842		1,231		5,209		3,568
Sales and marketing expenses		1,874		1,760		5,738		5,083
Margin⁽¹⁾	$	6,495	$	5,935	$	18,618	$	17,250
Hardware:
Revenues	$	811	$	798	$	2,424	$	2,328
Hardware products and support expenses		236		237		758		696
Sales and marketing expenses		81		88		243		265
Margin⁽¹⁾	$	494	$	473	$	1,423	$	1,367
Services:
Revenues	$	1,376	$	789	$	4,129	$	2,371
Services expenses		1,147		633		3,265		1,873
Margin⁽¹⁾	$	229	$	156	$	864	$	498
Totals:
Revenues	$	12,398	$	10,513	$	36,118	$	30,600
Expenses		5,180		3,949		15,213		11,485
Margin⁽¹⁾	$	7,218	$	6,564	$	20,905	$	19,115

⁽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 expenses, 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 condensed consolidated statements of operations.

Reconciliation of Total Operating Segment Margin to Income before Income Taxes

	Three Months Ended February 28,						Nine Months Ended February 28,
(in millions)	2023			2022			2023			2022
Total margin for operating segments	$	7,218		$	6,564		$	20,905		$	19,115
Research and development		(2,146	)		(1,816	)		(6,397	)		(5,254	)
General and administrative		(402	)		(335	)		(1,179	)		(953	)
Amortization of intangible assets		(886	)		(279	)		(2,712	)		(882	)
Acquisition related and other		(37	)		(20	)		(140	)		(4,707	)
Restructuring		(78	)		(19	)		(359	)		(89	)
Stock-based compensation for operating segments		(316	)		(189	)		(864	)		(533	)
Expense allocations and other, net		(93	)		(84	)		(301	)		(273	)
Interest expense		(908	)		(667	)		(2,550	)		(2,051	)
Non-operating expenses, net		(134	)		(315	)		(386	)		(348	)
Income before income taxes	$	2,218		$	2,840		$	6,017		$	4,025

Disaggregation of Revenue by Geography and Ecosystem

	Three Months Ended February 28,				Nine Months Ended February 28,
(in millions)	2023		2022		2023		2022
Americas	$	7,671	$	5,849	$	22,649	$	16,905
EMEA⁽¹⁾		3,067		3,014		8,653		8,751
Asia Pacific		1,660		1,650		4,816		4,944
Total revenues	$	12,398	$	10,513	$	36,118	$	30,600

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

	Three Months Ended February 28,				Nine Months Ended February 28,
(in millions)	2023		2022		2023		2022
Cloud services	$	4,053	$	2,791	$	11,445	$	7,919
License support		4,870		4,846		14,493		14,643
Total cloud services and license support revenues	$	8,923	$	7,637	$	25,938	$	22,562

	Three Months Ended February 28,				Nine Months Ended February 28,
(in millions)	2023		2022		2023		2022
Applications cloud services and license support	$	4,166	$	3,187	$	12,262	$	9,377
Infrastructure cloud services and license support		4,757		4,450		13,676		13,185
Total cloud services and license support revenues	$	8,923	$	7,637	$	25,938	$	22,562