v3.7.0.1
SEGMENT INFORMATION (Tables)
 3 Months Ended
Aug. 31, 2017
Segment Reporting [Abstract]  
Summary of Businesses Results

 

 

 

Three Months Ended

August 31,

 

(in millions)

 

2017

 

 

2016

 

Cloud and on-premise software:

 

 

 

 

 

 

 

 

Revenues(1)

 

$

7,409

 

 

$

6,809

 

Cloud SaaS, PaaS and IaaS expenses

 

 

580

 

 

 

401

 

Software license updates and product support expenses

 

 

240

 

 

 

257

 

Sales and marketing expenses

 

 

1,684

 

 

 

1,596

 

Margin(2)

 

$

4,905

 

 

$

4,555

 

Hardware:

 

 

 

 

 

 

 

 

Revenues

 

$

943

 

 

$

996

 

Hardware products and support expenses

 

 

366

 

 

 

381

 

Sales and marketing expenses

 

 

170

 

 

 

203

 

Margin(2)

 

$

407

 

 

$

412

 

Services:

 

 

 

 

 

 

 

 

Revenues

 

$

860

 

 

$

808

 

Services expenses

 

 

665

 

 

 

665

 

Margin(2)

 

$

195

 

 

$

143

 

Totals:

 

 

 

 

 

 

 

 

Revenues(1)

 

$

9,212

 

 

$

8,613

 

Expenses

 

 

3,705

 

 

 

3,503

 

Margin(2)

 

$

5,507

 

 

$

5,110

 

 

(1)

Cloud and on-premise software revenues for management reporting included revenues related to cloud and on-premise software obligations that would have otherwise been recorded by the acquired businesses as independent entities but were not recognized in our consolidated statements of operations for the periods presented due to business combination accounting requirements. See Note 7 for an explanation of these adjustments and the table below for a reconciliation of our total operating segment revenues to our total consolidated revenues as reported in our consolidated statements of operations.

(2)

The margins reported reflect only the direct controllable costs of each line of business and do not include allocations of product development, general and administrative and certain other allocable expenses. 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, net.
Reconciliation of Total Operating Segment Revenues to Total Revenues

 

 

 

Three Months Ended

August 31,

 

(in millions)

 

2017

 

 

2016

 

Total revenues for operating segments

 

$

9,212

 

 

$

8,613

 

Cloud and on-premise software revenues(1)

 

 

(25

)

 

 

(18

)

Total revenues

 

$

9,187

 

 

$

8,595

 

 
Reconciliation of Total Operating Segment Margin to Income before Provision for Income Taxes

Total margin for operating segments

 

$

5,507

 

 

$

5,110

 

Cloud and on-premise software revenues(1)

 

 

(25

)

 

 

(18

)

Research and development

 

 

(1,574

)

 

 

(1,520

)

General and administrative

 

 

(320

)

 

 

(315

)

Amortization of intangible assets

 

 

(411

)

 

 

(311

)

Acquisition related and other

 

 

(12

)

 

 

(14

)

Restructuring

 

 

(124

)

 

 

(99

)

Stock-based compensation for operating segments

 

 

(124

)

 

 

(86

)

Expense allocations and other, net

 

 

(96

)

 

 

(106

)

Interest expense

 

 

(469

)

 

 

(416

)

Non-operating income, net

 

 

233

 

 

 

148

 

Income before provision for income taxes

 

$

2,585

 

 

$

2,373

 

 

(1)

Cloud and on-premise software revenues for management reporting included revenues related to cloud and on-premise software obligations that would have otherwise been recorded by the acquired businesses as independent entities but were not recognized in our consolidated statements of operations for the periods presented due to business combination accounting requirements. See Note 7 for an explanation of these adjustments and this table for a reconciliation of our total operating segment revenues to our total consolidated revenues as reported in our consolidated statements of operations.