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SEGMENT INFORMATION (Tables)
12 Months Ended
May 31, 2023
Segment Reporting [Abstract]  
Summary of Businesses Results

 

 

Year Ended May 31,

 

(in millions)

 

2023

 

 

2022

 

 

2021

 

Cloud and license:

 

 

 

 

 

 

 

 

 

Revenues(1)

 

$

41,086

 

 

$

36,052

 

 

$

34,101

 

Cloud services and license support expenses

 

 

7,222

 

 

 

4,915

 

 

 

4,133

 

Sales and marketing expenses

 

 

7,738

 

 

 

7,054

 

 

 

6,799

 

Margin(2)

 

$

26,126

 

 

$

24,083

 

 

$

23,169

 

Hardware:

 

 

 

 

 

 

 

 

 

Revenues

 

$

3,274

 

 

$

3,183

 

 

$

3,359

 

Hardware products and support expenses

 

 

1,011

 

 

 

944

 

 

 

945

 

Sales and marketing expenses

 

 

331

 

 

 

361

 

 

 

388

 

Margin(2)

 

$

1,932

 

 

$

1,878

 

 

$

2,026

 

Services:

 

 

 

 

 

 

 

 

 

Revenues

 

$

5,594

 

 

$

3,205

 

 

$

3,021

 

Services expenses

 

 

4,490

 

 

 

2,539

 

 

 

2,393

 

Margin(2)

 

$

1,104

 

 

$

666

 

 

$

628

 

Totals:

 

 

 

 

 

 

 

 

 

Revenues(1)

 

$

49,954

 

 

$

42,440

 

 

$

40,481

 

Expenses

 

 

20,792

 

 

 

15,813

 

 

 

14,658

 

Margin(2)

 

$

29,162

 

 

$

26,627

 

 

$

25,823

 

 

(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.
Reconciliation of Total Operating Segment Revenues to Total Revenues and Margin to Income before Income Taxes

 

 

Year Ended May 31,

 

(in millions)

 

2023

 

 

2022

 

 

2021

 

Total revenues for operating segments

 

$

49,954

 

 

$

42,440

 

 

$

40,481

 

Cloud and license revenues(1)

 

 

—

 

 

 

—

 

 

 

(2

)

Total revenues

 

$

49,954

 

 

$

42,440

 

 

$

40,479

 

Total margin for operating segments

 

$

29,162

 

 

$

26,627

 

 

$

25,823

 

Cloud and license revenues(1)

 

 

—

 

 

 

—

 

 

 

(2

)

Research and development

 

 

(8,623

)

 

 

(7,219

)

 

 

(6,527

)

General and administrative

 

 

(1,579

)

 

 

(1,317

)

 

 

(1,254

)

Amortization of intangible assets

 

 

(3,582

)

 

 

(1,150

)

 

 

(1,379

)

Acquisition related and other

 

 

(190

)

 

 

(4,713

)

 

 

(138

)

Restructuring

 

 

(490

)

 

 

(191

)

 

 

(431

)

Stock-based compensation for operating segments

 

 

(1,201

)

 

 

(735

)

 

 

(513

)

Expense allocations and other, net

 

 

(404

)

 

 

(376

)

 

 

(366

)

Interest expense

 

 

(3,505

)

 

 

(2,755

)

 

 

(2,496

)

Non-operating (expenses) income, net

 

 

(462

)

 

 

(522

)

 

 

282

 

Income before income taxes

 

$

9,126

 

 

$

7,649

 

 

$

12,999

 

 

 

(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.
Disaggregation of Revenue by Geography and Ecosystem

 

 

Year Ended May 31,

 

(in millions)

 

2023

 

 

2022

 

 

2021

 

Americas

 

$

31,226

 

 

$

23,679

 

 

$

21,828

 

EMEA(1)

 

 

12,109

 

 

 

12,011

 

 

 

11,894

 

Asia Pacific

 

 

6,619

 

 

 

6,750

 

 

 

6,757

 

Total revenues

 

$

49,954

 

 

$

42,440

 

 

$

40,479

 

 

(1)
Comprised of Europe, the Middle East and Africa

 

 

Year Ended May 31,

 

(in millions)

 

2023

 

 

2022

 

 

2021

 

Cloud services

 

$

15,881

 

 

$

10,809

 

 

$

8,921

 

License support

 

 

19,426

 

 

 

19,365

 

 

 

19,779

 

Total cloud services and license support revenues

 

$

35,307

 

 

$

30,174

 

 

$

28,700

 

 

 

Year Ended May 31,

 

(in millions)

 

2023

 

 

2022

 

 

2021

 

Applications cloud services and license support

 

$

16,651

 

 

$

12,612

 

 

$

11,712

 

Infrastructure cloud services and license support

 

 

18,656

 

 

 

17,562

 

 

 

16,988

 

Total cloud services and license support revenues

 

$

35,307

 

 

$

30,174

 

 

$

28,700

 

Geographic Information

 

 

As of and for the Year Ended May 31,

 

 

 

2023

 

 

2022

 

 

2021

 

(in millions)

 

Revenues

 

 

Long-Lived
Assets
(1)

 

 

Revenues

 

 

Long-Lived
Assets
(1)

 

 

Revenues

 

 

Long-Lived
Assets
(1)

 

United States

 

$

27,535

 

 

$

19,322

 

 

$

20,246

 

 

$

10,300

 

 

$

18,734

 

 

$

6,826

 

United Kingdom

 

 

2,159

 

 

 

905

 

 

 

2,335

 

 

 

805

 

 

 

2,110

 

 

 

685

 

Germany

 

 

1,755

 

 

 

940

 

 

 

1,799

 

 

 

813

 

 

 

1,744

 

 

 

561

 

Japan

 

 

1,681

 

 

 

770

 

 

 

1,847

 

 

 

788

 

 

 

1,988

 

 

 

650

 

Other countries

 

 

16,824

 

 

 

3,626

 

 

 

16,213

 

 

 

3,438

 

 

 

15,903

 

 

 

2,663

 

Total

 

$

49,954

 

 

$

25,563

 

 

$

42,440

 

 

$

16,144

 

 

$

40,479

 

 

$

11,385

 

 

(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.