SEGMENT INFORMATION (Tables)
|
9 Months Ended |
Feb. 28, 2019 |
|---|
| Segment Reporting [Abstract] |
|
| Summary of Businesses Results |
|
|
|
Three Months Ended
February 28, |
|
|
Nine Months Ended
February 28, |
|
|
(in millions) |
|
2019 |
|
|
2018 |
|
|
2019 |
|
|
2018 |
|
|
Cloud and license: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues(1) |
|
$ |
7,917 |
|
|
$ |
7,891 |
|
|
$ |
23,259 |
|
|
$ |
23,018 |
|
|
Cloud services and license support expenses |
|
|
890 |
|
|
|
854 |
|
|
|
2,668 |
|
|
|
2,526 |
|
|
Sales and marketing expenses |
|
|
1,780 |
|
|
|
1,743 |
|
|
|
5,357 |
|
|
|
5,200 |
|
|
Margin(2) |
|
$ |
5,247 |
|
|
$ |
5,294 |
|
|
$ |
15,234 |
|
|
$ |
15,292 |
|
|
Hardware: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
|
$ |
915 |
|
|
$ |
994 |
|
|
$ |
2,711 |
|
|
$ |
2,878 |
|
|
Hardware products and support expenses |
|
|
331 |
|
|
|
387 |
|
|
|
973 |
|
|
|
1,094 |
|
|
Sales and marketing expenses |
|
|
123 |
|
|
|
155 |
|
|
|
381 |
|
|
|
487 |
|
|
Margin(2) |
|
$ |
461 |
|
|
$ |
452 |
|
|
$ |
1,357 |
|
|
$ |
1,297 |
|
|
Services: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
|
$ |
786 |
|
|
$ |
796 |
|
|
$ |
2,416 |
|
|
$ |
2,512 |
|
|
Services expenses |
|
|
662 |
|
|
|
673 |
|
|
|
2,015 |
|
|
|
2,015 |
|
|
Margin(2) |
|
$ |
124 |
|
|
$ |
123 |
|
|
$ |
401 |
|
|
$ |
497 |
|
|
Totals: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues(1) |
|
$ |
9,618 |
|
|
$ |
9,681 |
|
|
$ |
28,386 |
|
|
$ |
28,408 |
|
|
Expenses |
|
|
3,786 |
|
|
|
3,812 |
|
|
|
11,394 |
|
|
|
11,322 |
|
|
Margin(2) |
|
$ |
5,832 |
|
|
$ |
5,869 |
|
|
$ |
16,992 |
|
|
$ |
17,086 |
|
|
(1) |
Cloud and license revenues presented for management reporting 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 for the periods presented due to business combination accounting requirements. See Note 6 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 condensed 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 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, net. |
|
| Reconciliation of Total Operating Segment Revenues to Total Revenues |
|
|
|
Three Months Ended
February 28, |
|
|
Nine Months Ended
February 28, |
|
|
(in millions) |
|
2019 |
|
|
2018 |
|
|
2019 |
|
|
2018 |
|
|
Total revenues for operating segments |
|
$ |
9,618 |
|
|
$ |
9,681 |
|
|
$ |
28,386 |
|
|
$ |
28,408 |
|
|
Cloud and license revenues(1) |
|
|
(4 |
) |
|
|
(5 |
) |
|
|
(17 |
) |
|
|
(39 |
) |
|
Total revenues |
|
$ |
9,614 |
|
|
$ |
9,676 |
|
|
$ |
28,369 |
|
|
$ |
28,369 |
|
|
| Reconciliation of Total Operating Segment Margin to Income before Provision for Income Taxes |
|
Total margin for operating segments |
|
$ |
5,832 |
|
|
$ |
5,869 |
|
|
$ |
16,992 |
|
|
$ |
17,086 |
|
|
Cloud and license revenues(1) |
|
|
(4 |
) |
|
|
(5 |
) |
|
|
(17 |
) |
|
|
(39 |
) |
|
Research and development |
|
|
(1,426 |
) |
|
|
(1,496 |
) |
|
|
(4,464 |
) |
|
|
(4,541 |
) |
|
General and administrative |
|
|
(316 |
) |
|
|
(339 |
) |
|
|
(935 |
) |
|
|
(977 |
) |
|
Amortization of intangible assets |
|
|
(407 |
) |
|
|
(394 |
) |
|
|
(1,265 |
) |
|
|
(1,205 |
) |
|
Acquisition related and other |
|
|
4 |
|
|
|
(3 |
) |
|
|
(29 |
) |
|
|
(32 |
) |
|
Restructuring |
|
|
(43 |
) |
|
|
(91 |
) |
|
|
(275 |
) |
|
|
(506 |
) |
|
Stock-based compensation for operating segments |
|
|
(129 |
) |
|
|
(123 |
) |
|
|
(396 |
) |
|
|
(382 |
) |
|
Expense allocations and other, net |
|
|
(112 |
) |
|
|
(103 |
) |
|
|
(333 |
) |
|
|
(301 |
) |
|
Interest expense |
|
|
(509 |
) |
|
|
(533 |
) |
|
|
(1,557 |
) |
|
|
(1,477 |
) |
|
Non-operating income, net |
|
|
198 |
|
|
|
409 |
|
|
|
681 |
|
|
|
891 |
|
|
Income before provision for income taxes |
|
$ |
3,088 |
|
|
$ |
3,191 |
|
|
$ |
8,402 |
|
|
$ |
8,517 |
|
|
(1) |
Cloud and license revenues presented for management reporting 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 for the periods presented due to business combination accounting requirements. See Note 6 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 condensed consolidated statements of operations. |
|
| Disaggregation of Revenue by Geography and Ecosystem |
|
|
|
Three Months Ended
February 28, |
|
|
Nine Months Ended
February 28, |
|
|
(in millions) |
|
2019 |
|
|
2018 |
|
|
2019 |
|
|
2018 |
|
|
Americas |
|
$ |
5,266 |
|
|
$ |
5,253 |
|
|
$ |
15,671 |
|
|
$ |
15,632 |
|
|
EMEA(1) |
|
|
2,781 |
|
|
|
2,881 |
|
|
|
8,139 |
|
|
|
8,213 |
|
|
Asia Pacific(2) |
|
|
1,567 |
|
|
|
1,542 |
|
|
|
4,559 |
|
|
|
4,524 |
|
|
Total revenues |
|
$ |
9,614 |
|
|
$ |
9,676 |
|
|
$ |
28,369 |
|
|
$ |
28,369 |
|
|
(1) |
Comprised of Europe, the Middle East and Africa |
|
(2) |
The Asia Pacific region includes Japan |
|
|
|
Three Months Ended
February 28, |
|
|
Nine Months Ended
February 28, |
|
|
(in millions) |
|
2019 |
|
|
2018 |
|
|
2019 |
|
|
2018 |
|
|
Applications revenues |
|
$ |
2,841 |
|
|
$ |
2,717 |
|
|
$ |
8,410 |
|
|
$ |
8,001 |
|
|
Infrastructure revenues |
|
|
5,072 |
|
|
|
5,169 |
|
|
|
14,832 |
|
|
|
14,978 |
|
|
Total cloud and license revenues |
|
$ |
7,913 |
|
|
$ |
7,886 |
|
|
$ |
23,242 |
|
|
$ |
22,979 |
|
|