SEGMENT INFORMATION (Tables)
|
9 Months Ended |
Feb. 28, 2022 |
|---|
| Segment Reporting [Abstract] |
|
| Summary of Businesses Results |
|
|
|
Three Months Ended
February 28, |
|
|
Nine Months Ended
February 28, |
|
|
(in millions) |
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
|
Cloud and license: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues(1) |
|
$ |
8,926 |
|
|
$ |
8,529 |
|
|
$ |
25,901 |
|
|
$ |
24,567 |
|
|
Cloud services and license support expenses |
|
|
1,231 |
|
|
|
1,011 |
|
|
|
3,568 |
|
|
|
2,977 |
|
|
Sales and marketing expenses |
|
|
1,760 |
|
|
|
1,694 |
|
|
|
5,083 |
|
|
|
4,947 |
|
|
Margin(2) |
|
$ |
5,935 |
|
|
$ |
5,824 |
|
|
$ |
17,250 |
|
|
$ |
16,643 |
|
|
Hardware: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
|
$ |
798 |
|
|
$ |
820 |
|
|
$ |
2,328 |
|
|
$ |
2,478 |
|
|
Hardware products and support expenses |
|
|
237 |
|
|
|
223 |
|
|
|
696 |
|
|
|
698 |
|
|
Sales and marketing expenses |
|
|
88 |
|
|
|
95 |
|
|
|
265 |
|
|
|
287 |
|
|
Margin(2) |
|
$ |
473 |
|
|
$ |
502 |
|
|
$ |
1,367 |
|
|
$ |
1,493 |
|
|
Services: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
|
$ |
789 |
|
|
$ |
737 |
|
|
$ |
2,371 |
|
|
$ |
2,209 |
|
|
Services expenses |
|
|
633 |
|
|
|
587 |
|
|
|
1,873 |
|
|
|
1,767 |
|
|
Margin(2) |
|
$ |
156 |
|
|
$ |
150 |
|
|
$ |
498 |
|
|
$ |
442 |
|
|
Totals: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues(1) |
|
$ |
10,513 |
|
|
$ |
10,086 |
|
|
$ |
30,600 |
|
|
$ |
29,254 |
|
|
Expenses |
|
|
3,949 |
|
|
|
3,610 |
|
|
|
11,485 |
|
|
|
10,676 |
|
|
Margin(2) |
|
$ |
6,564 |
|
|
$ |
6,476 |
|
|
$ |
19,115 |
|
|
$ |
18,578 |
|
|
(1) |
Cloud and license revenues and total revenues presented for management reporting for the fiscal 2021 periods presented 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 due to business combination accounting rules that were applicable to acquisitions closed prior to fiscal 2022. The table below provides a reconciliation of our total operating segment revenues to our total revenues as reported in our condensed consolidated statements of operations for all periods presented. |
|
(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 expenses, net. |
|
| Reconciliation of Total Operating Segment Revenues to Total Revenues |
|
|
|
Three Months Ended
February 28, |
|
|
Nine Months Ended
February 28, |
|
|
(in millions) |
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
|
Total revenues for operating segments |
|
$ |
10,513 |
|
|
$ |
10,086 |
|
|
$ |
30,600 |
|
|
$ |
29,254 |
|
|
Cloud and license revenues(1) |
|
|
— |
|
|
|
(1 |
) |
|
|
— |
|
|
|
(2 |
) |
|
Total revenues |
|
$ |
10,513 |
|
|
$ |
10,085 |
|
|
$ |
30,600 |
|
|
$ |
29,252 |
|
|
| Reconciliation of Total Operating Segment Margin to Income before Income Taxes |
|
Total margin for operating segments |
|
$ |
6,564 |
|
|
$ |
6,476 |
|
|
$ |
19,115 |
|
|
$ |
18,578 |
|
|
Cloud and license revenues(1) |
|
|
— |
|
|
|
(1 |
) |
|
|
— |
|
|
|
(2 |
) |
|
Research and development |
|
|
(1,816 |
) |
|
|
(1,621 |
) |
|
|
(5,254 |
) |
|
|
(4,812 |
) |
|
General and administrative |
|
|
(335 |
) |
|
|
(330 |
) |
|
|
(953 |
) |
|
|
(949 |
) |
|
Amortization of intangible assets |
|
|
(279 |
) |
|
|
(347 |
) |
|
|
(882 |
) |
|
|
(1,037 |
) |
|
Acquisition related and other |
|
|
(20 |
) |
|
|
(13 |
) |
|
|
(4,707 |
) |
|
|
(107 |
) |
|
Restructuring |
|
|
(19 |
) |
|
|
(66 |
) |
|
|
(89 |
) |
|
|
(337 |
) |
|
Stock-based compensation for operating segments |
|
|
(189 |
) |
|
|
(132 |
) |
|
|
(533 |
) |
|
|
(381 |
) |
|
Expense allocations and other, net |
|
|
(84 |
) |
|
|
(88 |
) |
|
|
(273 |
) |
|
|
(281 |
) |
|
Interest expense |
|
|
(667 |
) |
|
|
(585 |
) |
|
|
(2,051 |
) |
|
|
(1,799 |
) |
|
Non-operating expenses, net |
|
|
(315 |
) |
|
|
(17 |
) |
|
|
(348 |
) |
|
|
(30 |
) |
|
Income before income taxes |
|
$ |
2,840 |
|
|
$ |
3,276 |
|
|
$ |
4,025 |
|
|
$ |
8,843 |
|
|
(1) |
Cloud and license revenues presented for management reporting for the fiscal 2021 periods presented 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 due to business combination accounting rules that were applicable to acquisitions closed prior to fiscal 2022. This table includes a reconciliation of our total operating segment revenues to our total revenues as reported in our condensed consolidated statements of operations for all periods presented. |
|
| Disaggregation of Revenue by Geography and Ecosystem |
|
|
|
Three Months Ended
February 28, |
|
|
Nine Months Ended
February 28, |
|
|
(in millions) |
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
|
Americas |
|
$ |
5,849 |
|
|
$ |
5,424 |
|
|
$ |
16,905 |
|
|
$ |
15,751 |
|
|
EMEA(1) |
|
|
3,014 |
|
|
|
2,981 |
|
|
|
8,751 |
|
|
|
8,571 |
|
|
Asia Pacific |
|
|
1,650 |
|
|
|
1,680 |
|
|
|
4,944 |
|
|
|
4,930 |
|
|
Total revenues |
|
$ |
10,513 |
|
|
$ |
10,085 |
|
|
$ |
30,600 |
|
|
$ |
29,252 |
|
|
(1) |
Comprised of Europe, the Middle East and Africa |
|
|
|
Three Months Ended
February 28, |
|
|
Nine Months Ended
February 28, |
|
|
(in millions) |
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
|
Applications cloud services and license support |
|
$ |
3,187 |
|
|
$ |
2,952 |
|
|
$ |
9,377 |
|
|
$ |
8,669 |
|
|
Infrastructure cloud services and license support |
|
|
4,450 |
|
|
|
4,300 |
|
|
|
13,185 |
|
|
|
12,642 |
|
|
Total cloud services and license support revenues |
|
$ |
7,637 |
|
|
$ |
7,252 |
|
|
$ |
22,562 |
|
|
$ |
21,311 |
|
|