SEGMENT INFORMATION (Tables)
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12 Months Ended |
May 31, 2023 |
Segment Reporting [Abstract] |
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Summary of Businesses Results |
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Year Ended May 31, |
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(in millions) |
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2023 |
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2022 |
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|
2021 |
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Cloud and license: |
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Revenues(1) |
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$ |
41,086 |
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|
$ |
36,052 |
|
|
$ |
34,101 |
|
Cloud services and license support expenses |
|
|
7,222 |
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|
|
4,915 |
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|
|
4,133 |
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Sales and marketing expenses |
|
|
7,738 |
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|
|
7,054 |
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|
|
6,799 |
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Margin(2) |
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$ |
26,126 |
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|
$ |
24,083 |
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|
$ |
23,169 |
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Hardware: |
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Revenues |
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$ |
3,274 |
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|
$ |
3,183 |
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$ |
3,359 |
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Hardware products and support expenses |
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|
1,011 |
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|
|
944 |
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|
945 |
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Sales and marketing expenses |
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|
331 |
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|
|
361 |
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|
|
388 |
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Margin(2) |
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$ |
1,932 |
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$ |
1,878 |
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|
$ |
2,026 |
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Services: |
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Revenues |
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$ |
5,594 |
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$ |
3,205 |
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$ |
3,021 |
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Services expenses |
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|
4,490 |
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|
2,539 |
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|
|
2,393 |
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Margin(2) |
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$ |
1,104 |
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|
$ |
666 |
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|
$ |
628 |
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Totals: |
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|
|
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Revenues(1) |
|
$ |
49,954 |
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|
$ |
42,440 |
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|
$ |
40,481 |
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Expenses |
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|
20,792 |
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|
15,813 |
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|
14,658 |
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Margin(2) |
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$ |
29,162 |
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|
$ |
26,627 |
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|
$ |
25,823 |
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(1)Cloud and license revenues and total revenues presented for management reporting for fiscal 2021 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 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 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 or income, 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 consolidated statements of operations.
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Reconciliation of Total Operating Segment Revenues to Total Revenues and Margin to Income before Income Taxes |
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Year Ended May 31, |
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(in millions) |
|
2023 |
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|
2022 |
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|
2021 |
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Total revenues for operating segments |
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$ |
49,954 |
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$ |
42,440 |
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$ |
40,481 |
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Cloud and license revenues(1) |
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|
— |
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— |
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(2 |
) |
Total revenues |
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$ |
49,954 |
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|
$ |
42,440 |
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|
$ |
40,479 |
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Total margin for operating segments |
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$ |
29,162 |
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|
$ |
26,627 |
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|
$ |
25,823 |
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Cloud and license revenues(1) |
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|
— |
|
|
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— |
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|
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(2 |
) |
Research and development |
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(8,623 |
) |
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(7,219 |
) |
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(6,527 |
) |
General and administrative |
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(1,579 |
) |
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(1,317 |
) |
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(1,254 |
) |
Amortization of intangible assets |
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(3,582 |
) |
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(1,150 |
) |
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(1,379 |
) |
Acquisition related and other |
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(190 |
) |
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(4,713 |
) |
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(138 |
) |
Restructuring |
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(490 |
) |
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(191 |
) |
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(431 |
) |
Stock-based compensation for operating segments |
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(1,201 |
) |
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(735 |
) |
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(513 |
) |
Expense allocations and other, net |
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(404 |
) |
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(376 |
) |
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(366 |
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Interest expense |
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(3,505 |
) |
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(2,755 |
) |
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(2,496 |
) |
Non-operating (expenses) income, net |
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(462 |
) |
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(522 |
) |
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|
282 |
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Income before income taxes |
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$ |
9,126 |
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$ |
7,649 |
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$ |
12,999 |
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(1)Cloud and license revenues presented for management reporting for fiscal 2021 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 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 consolidated statements of operations for all periods presented.
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Disaggregation of Revenue by Geography and Ecosystem |
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Year Ended May 31, |
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(in millions) |
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2023 |
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2022 |
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2021 |
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Americas |
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$ |
31,226 |
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$ |
23,679 |
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$ |
21,828 |
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EMEA(1) |
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|
12,109 |
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|
12,011 |
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|
11,894 |
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Asia Pacific |
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6,619 |
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|
6,750 |
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|
6,757 |
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Total revenues |
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$ |
49,954 |
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$ |
42,440 |
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$ |
40,479 |
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(1)Comprised of Europe, the Middle East and Africa
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Year Ended May 31, |
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(in millions) |
|
2023 |
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|
2022 |
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|
2021 |
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Cloud services |
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$ |
15,881 |
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|
$ |
10,809 |
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$ |
8,921 |
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License support |
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|
19,426 |
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19,365 |
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|
19,779 |
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Total cloud services and license support revenues |
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$ |
35,307 |
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$ |
30,174 |
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$ |
28,700 |
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Year Ended May 31, |
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(in millions) |
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2023 |
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|
2022 |
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|
2021 |
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Applications cloud services and license support |
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$ |
16,651 |
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$ |
12,612 |
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$ |
11,712 |
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Infrastructure cloud services and license support |
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|
18,656 |
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|
17,562 |
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|
16,988 |
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Total cloud services and license support revenues |
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$ |
35,307 |
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$ |
30,174 |
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$ |
28,700 |
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Geographic Information |
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As of and for the Year Ended May 31, |
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|
2023 |
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|
2022 |
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|
2021 |
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(in millions) |
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Revenues |
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Long-Lived Assets(1) |
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Revenues |
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Long-Lived Assets(1) |
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Revenues |
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Long-Lived Assets(1) |
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United States |
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$ |
27,535 |
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$ |
19,322 |
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$ |
20,246 |
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$ |
10,300 |
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$ |
18,734 |
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$ |
6,826 |
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United Kingdom |
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|
2,159 |
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|
905 |
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2,335 |
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|
805 |
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2,110 |
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|
|
685 |
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Germany |
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1,755 |
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|
940 |
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1,799 |
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|
813 |
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1,744 |
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|
561 |
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Japan |
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1,681 |
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|
770 |
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1,847 |
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|
788 |
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1,988 |
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|
650 |
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Other countries |
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|
16,824 |
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3,626 |
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16,213 |
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|
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3,438 |
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|
15,903 |
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|
|
2,663 |
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Total |
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$ |
49,954 |
|
|
$ |
25,563 |
|
|
$ |
42,440 |
|
|
$ |
16,144 |
|
|
$ |
40,479 |
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|
$ |
11,385 |
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(1)Long-lived assets exclude goodwill, intangible assets, equity investments and deferred taxes, which are not allocated to specific geographic locations as it is impracticable to do so.
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