v3.20.2
DEFERRED REVENUES
 6 Months Ended
Nov. 30, 2020
Deferred Revenue Disclosure [Abstract]  
DEFERRED REVENUES

6.

DEFERRED REVENUES

Deferred revenues consisted of the following:

 

(in millions)

 

November 30,

2020

 

 

May 31,

2020

 

Cloud services and license support

 

$

7,057

 

 

$

6,996

 

Hardware

 

 

570

 

 

 

613

 

Services

 

 

395

 

 

 

365

 

Cloud license and on-premise license

 

 

40

 

 

 

28

 

Deferred revenues, current

 

 

8,062

 

 

 

8,002

 

Deferred revenues, non-current (in other non-current liabilities)

 

 

656

 

 

 

597

 

Total deferred revenues

 

$

8,718

 

 

$

8,599

 

 

Deferred cloud services and license support revenues and deferred hardware revenues substantially represent customer payments made in advance for cloud or support contracts that are typically billed in advance with corresponding revenues generally being recognized ratably over the contractual periods. Deferred services revenues include prepayments for our services business and revenues for these services are generally recognized as the services are performed. Deferred cloud license and on-premise license revenues typically resulted from customer payments that related to undelivered products and services or specified enhancements.

In connection with our acquisitions, we have estimated the fair values of the cloud services and license support performance obligations assumed from our acquired companies. Refer to Note 9 of Notes to Consolidated Financial Statements included in our Annual Report on Form 10-K for the fiscal year ended May 31, 2020 for further explanation of these estimates.