CONDENSED CONSOLIDATED BALANCE SHEETS PARENTHETICAL - USD ($) $ in Millions |
Nov. 30, 2020 |
May 31, 2020 |
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Statement Of Financial Position [Abstract] | ||
Allowance for doubtful accounts receivable | $ 472 | $ 409 |
Preferred stock par value per share | $ 0.01 | $ 0.01 |
Preferred stock shares authorized | 1,000,000.0 | 1,000,000.0 |
Preferred stock shares outstanding | 0 | 0 |
Common stock par value per share | $ 0.01 | $ 0.01 |
Common stock shares authorized | 11,000,000,000 | 11,000,000,000 |
Common stock shares outstanding | 2,952,000,000 | 3,067,000,000 |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Millions, $ in Millions |
3 Months Ended | 6 Months Ended | ||||
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Nov. 30, 2020 |
Nov. 30, 2019 |
Nov. 30, 2020 |
Nov. 30, 2019 |
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Revenues: | ||||||
Cloud services and license support | $ 7,112 | $ 6,811 | $ 14,059 | $ 13,616 | ||
Cloud license and on-premise license | 1,092 | 1,126 | 1,978 | 1,937 | ||
Hardware | 844 | 871 | 1,658 | 1,686 | ||
Services | 752 | 806 | 1,472 | 1,593 | ||
Total revenues | 9,800 | 9,614 | 19,167 | 18,832 | ||
Operating expenses: | ||||||
Cloud services and license support | [1] | 1,064 | 1,022 | 2,075 | 2,003 | |
Hardware | [1] | 244 | 285 | 490 | 557 | |
Services | 631 | 741 | 1,254 | 1,445 | ||
Sales and marketing | [1] | 1,836 | 2,068 | 3,690 | 4,086 | |
Research and development | 1,601 | 1,531 | 3,190 | 3,088 | ||
General and administrative | 324 | 323 | 619 | 615 | ||
Amortization of intangible assets | 345 | 407 | 690 | 821 | ||
Acquisition related and other | 76 | 12 | 95 | 37 | ||
Restructuring | 96 | 42 | 270 | 120 | ||
Total operating expenses | 6,217 | 6,431 | 12,373 | 12,772 | ||
Operating income | 3,583 | 3,183 | 6,794 | 6,060 | ||
Interest expense | (600) | (465) | (1,214) | (959) | ||
Non-operating (expenses) income, net | (11) | 92 | (13) | 191 | ||
Income before provision for income taxes | 2,972 | 2,810 | 5,567 | 5,292 | ||
Provision for income taxes | 530 | 499 | 874 | 844 | ||
Net income | $ 2,442 | $ 2,311 | $ 4,693 | $ 4,448 | ||
Earnings per share: | ||||||
Basic | $ 0.82 | $ 0.71 | $ 1.56 | $ 1.36 | ||
Diluted | $ 0.80 | $ 0.69 | $ 1.53 | $ 1.32 | ||
Weighted average common shares outstanding: | ||||||
Basic | 2,977 | 3,245 | 3,009 | 3,281 | ||
Diluted | 3,046 | 3,331 | 3,076 | 3,370 | ||
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CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
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Nov. 30, 2020 |
Nov. 30, 2019 |
Nov. 30, 2020 |
Nov. 30, 2019 |
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Statement Of Income And Comprehensive Income [Abstract] | ||||
Net income | $ 2,442 | $ 2,311 | $ 4,693 | $ 4,448 |
Other comprehensive income (loss), net of tax: | ||||
Net foreign currency translation gains (losses) | 47 | (84) | 372 | (92) |
Net unrealized gains on defined benefit plans | 10 | 7 | 56 | 11 |
Net unrealized gains on marketable securities | 0 | 3 | 3 | 88 |
Net unrealized (losses) gains on cash flow hedges | (6) | 8 | (1) | (16) |
Total other comprehensive income (loss), net | 51 | (66) | 430 | (9) |
Comprehensive income | $ 2,493 | $ 2,245 | $ 5,123 | $ 4,439 |
BASIS OF PRESENTATION, RECENT ACCOUNTING PRONOUNCEMENTS AND OTHER |
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Organization Consolidation And Presentation Of Financial Statements [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
BASIS OF PRESENTATION, RECENT ACCOUNTING PRONOUNCEMENTS AND OTHER |
Basis of Presentation We have prepared the condensed consolidated financial statements included herein pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (SEC). Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles (GAAP) have been condensed or omitted pursuant to such rules and regulations. However, we believe that the disclosures herein are adequate to ensure the information presented is not misleading. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the notes thereto included in our Annual Report on Form 10-K for the fiscal year ended May 31, 2020. We believe that all necessary adjustments, which consisted only of normal recurring items, have been included in the accompanying financial statements to present fairly the results of the interim periods. The results of operations for the interim periods presented are not necessarily indicative of the operating results to be expected for any subsequent interim period or for our fiscal year ending May 31, 2021. During the first half of fiscal 2021, we adopted Accounting Standards Update (ASU) 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments and subsequent amendments to the initial guidance; and ASU 2020-01, Investments—Equity Securities (Topic 321), Investments—Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815), neither of which had a material impact to our current or historical condensed consolidated financial statements. There have been no changes to our significant accounting policies as disclosed in our Annual Report on Form 10-K for the fiscal year ended May 31, 2020 that had a significant impact on our condensed consolidated financial statements or notes thereto as of and for the six months ended November 30, 2020. Remaining Performance Obligations from Contracts with Customers Trade receivables, net of allowance for doubtful accounts, and deferred revenues are reported net of related uncollected deferred revenues in our condensed consolidated balance sheets as of November 30, 2020 and May 31, 2020. The revenues recognized during the six months ended November 30, 2020 and 2019, respectively, that were included in the opening deferred revenues balances as of May 31, 2020 and 2019, respectively, were approximately $5.9 billion and $6.2 billion, respectively. Revenues recognized from performance obligations satisfied in prior periods and impairment losses recognized on our receivables were immaterial in each of the three and six months ended November 30, 2020 and 2019, respectively. Remaining performance obligations, as defined in Note 1 of Notes to Consolidated Financial Statements included in our Annual Report on Form 10-K for the fiscal year ended May 31, 2020, were $34.4 billion as of November 30, 2020, approximately 60% of which we expect to recognize as revenues over the next twelve months and the remainder thereafter. Sales of Financing Receivables We offer certain of our customers the option to acquire certain of our cloud and license, hardware and services offerings through separate long-term payment contracts. We generally sell these contracts that we have financed for our customers on a non-recourse basis to financial institutions within 90 days of the contracts’ dates of execution. We record the transfers of amounts due from customers to financial institutions as sales of financing receivables because we are considered to have surrendered control of these financing receivables. Financing receivables sold to financial institutions were $300 million and $977 million for the three and six months ended November 30, 2020, respectively, and $196 million and $876 million for the three and six months ended November 30, 2019, respectively. Cash, Cash Equivalents and Restricted Cash Restricted cash that was included within cash and cash equivalents as presented within our condensed consolidated balance sheets as of November 30, 2020 and May 31, 2020 and our condensed consolidated statements of cash flows for the six months ended November 30, 2020 and 2019 was nominal. Acquisition Related and Other Expenses Acquisition related and other expenses primarily consist of personnel related costs for transitional and certain other employees, certain business combination adjustments including adjustments after the measurement period has ended, and certain other operating items, net.
Non-Operating (Expenses) Income, net Non-operating (expenses) income, net consists primarily of interest income, net foreign currency exchange losses, the noncontrolling interests in the net profits of our majority-owned subsidiaries (primarily Oracle Financial Services Software Limited and Oracle Corporation Japan) and net other income and expenses, including net realized gains and losses related to all of our investments, net unrealized gains and losses related to the small portion of our investment portfolio related to our deferred compensation plan, net unrealized gains and losses related to equity securities and non-service net periodic pension income and losses.
Recent Accounting Pronouncements Financial Instruments: In March 2020, the Financial Accounting Standards Board (FASB) issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting (ASU 2020-04). ASU 2020-04 provides optional guidance for contract modifications and certain hedging relationships associated with the transition from reference rates that are expected to be discontinued. We will adopt ASU 2020-04 when our relevant contracts are modified upon transition to alternative reference rates. We do not expect our adoption of ASU 2020-04 to have a material impact on our consolidated financial statements. Income Taxes: In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (ASU 2019-12), which is intended to simplify various areas related to the accounting for income taxes and improve consistent application of Topic 740. ASU 2019-12 is effective for us beginning in fiscal 2022, and earlier adoption is permitted. We are currently evaluating the impact of our pending adoption of ASU 2019-12 on our consolidated financial statements. |
ACQUISITIONS |
6 Months Ended | ||
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Nov. 30, 2020 | |||
Business Combinations [Abstract] | |||
ACQUISITIONS |
Fiscal 2021 and 2020 Acquisitions During the first half of fiscal 2021 and full year of fiscal 2020, we acquired certain companies and purchased certain technology and development assets primarily to expand our products and services offerings. These acquisitions were not significant individually or in the aggregate to our condensed consolidated financial statements.
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FAIR VALUE MEASUREMENTS |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FAIR VALUE MEASUREMENTS |
We perform fair value measurements in accordance with FASB Accounting Standards Codification (ASC) 820, Fair Value Measurement. ASC 820 defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required to be recorded at their fair values, we consider the principal or most advantageous market in which we would transact and consider assumptions that market participants would use when pricing the assets or liabilities, such as inherent risk, transfer restrictions and risk of nonperformance. ASC 820 establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. An asset’s or a liability’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. ASC 820 establishes three levels of inputs that may be used to measure fair value:
Assets and Liabilities Measured at Fair Value on a Recurring Basis Our assets and liabilities measured at fair value on a recurring basis consisted of the following (Level 1 and Level 2 inputs are defined above):
We classify our marketable securities as available-for-sale debt securities at the time of purchase and reevaluate such classification as of each balance sheet date. Our marketable securities investments consist of Tier 1 commercial paper debt securities, money market funds, corporate debt securities and certain other securities. Marketable securities as presented per our condensed consolidated balance sheets included securities with original maturities at the time of purchase greater than three months and the remainder of the securities were included in cash and cash equivalents. As of November 30, 2020 and May 31, 2020, substantially all of our marketable securities investments mature within one year. Our valuation techniques used to measure the fair values of our instruments that were classified as Level 1 in the table above were derived from quoted market prices and active markets for these instruments that exist. Our valuation techniques used to measure the fair values of Level 2 instruments listed in the table above were derived from the following: non-binding market consensus prices that were corroborated by observable market data, quoted market prices for similar instruments, or pricing models, such as discounted cash flow techniques, with all significant inputs derived from or corroborated by observable market data including LIBOR-based yield curves, among others. Based on the trading prices of the $70.8 billion and $71.6 billion of senior notes and the related fair value hedges that we had outstanding as of November 30, 2020 and May 31, 2020, respectively, the estimated fair values of the senior notes and the related fair value hedges using Level 2 inputs at November 30, 2020 and May 31, 2020 were $82.1 billion and $80.9 billion, respectively. |
INTANGIBLE ASSETS AND GOODWILL |
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Goodwill And Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INTANGIBLE ASSETS AND GOODWILL |
The changes in intangible assets for fiscal 2021 and the net book value of intangible assets as of November 30, 2020 and May 31, 2020 were as follows:
As of November 30, 2020, estimated future amortization expenses related to intangible assets were as follows (in millions):
The changes in the carrying amounts of goodwill, net, which is generally not deductible for tax purposes, for our operating segments for the six months ended November 30, 2020 were as follows:
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RESTRUCTURING ACTIVITIES |
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Restructuring And Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
RESTRUCTURING ACTIVITIES |
Fiscal 2019 Oracle Restructuring Plan During fiscal 2019, our management approved, committed to and initiated plans to restructure and further improve efficiencies in our operations due to our acquisitions and certain other operational activities (2019 Restructuring Plan). In the second quarter of fiscal 2021, our management supplemented the 2019 Restructuring Plan to reflect additional actions that we expect to take. Restructuring costs associated with the 2019 Restructuring Plan were recorded to the restructuring expense line item within our condensed consolidated statements of operations as they were incurred. We recorded $269 million and $125 million of restructuring expenses in connection with the 2019 Restructuring Plan in the first half of fiscal 2021 and 2020, respectively. Any changes to the estimates or timing of executing the 2019 Restructuring Plan will be reflected in our future results of operations. Summary of All Plans
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DEFERRED REVENUES |
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Deferred Revenue Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
DEFERRED REVENUES |
Deferred revenues consisted of the following:
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. |
DERIVATIVE FINANCIAL INSTRUMENTS |
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Derivative Instruments And Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
DERIVATIVE FINANCIAL INSTRUMENTS |
We held the following derivative instruments that were designated and accounted for as hedging instruments pursuant to ASC 815, Derivatives and Hedging (ASC 815) as of November 30, 2020 and May 31, 2020:
We also held certain foreign currency contracts that were not designated as hedges pursuant to ASC 815. As of November 30, 2020 and May 31, 2020, the notional amounts of such forward contracts we held to purchase U.S. Dollars in exchange for other major international currencies were $3.9 billion and $4.2 billion, respectively, and the notional amounts of forward contracts we held to sell U.S. Dollars in exchange for other major international currencies were $3.9 billion as of the end of each period. The fair values of our outstanding foreign currency forward contracts were nominal as of November 30, 2020 and May 31, 2020. Net gains or losses related to these forward contracts are included in non-operating income, net. See Note 10 of Notes to Consolidated Financial Statements included in our Annual Report on Form 10-K for the fiscal year ended May 31, 2020 for additional information regarding the purpose, accounting and classification of our derivative instruments. None of our derivative instruments are used for trading purposes. The effects of derivative instruments designated as hedges on certain of our condensed consolidated financial statements were as follows as of or for each of the respective periods presented below (amounts presented exclude any income tax effects): Fair Values of Derivative Instruments Designated as Hedges in Condensed Consolidated Balance Sheets
Effects of Fair Value Hedging Relationships on Hedged Items in Condensed Consolidated Balance Sheets
Effects of Derivative Instruments Designated as Hedges on Income
Gain (Loss) on Derivative Instruments Designated as Hedges included in Other Comprehensive Income (OCI)
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STOCKHOLDERS' EQUITY |
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Stockholders Equity Note [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
STOCKHOLDERS' EQUITY |
Common Stock Repurchases Our Board of Directors has approved a program for us to repurchase shares of our common stock. As of November 30, 2020, approximately $7.6 billion remained available for stock repurchases pursuant to our stock repurchase program. We repurchased 158.1 million shares for $9.0 billion during the six months ended November 30, 2020 (including 0.7 million shares for $38 million that were repurchased but not settled) and 181.0 million shares for $10.0 billion during the six months ended November 30, 2019 under the stock repurchase program. Our stock repurchase authorization does not have an expiration date and the pace of our repurchase activity will depend on factors such as our working capital needs, our cash requirements for acquisitions and dividend payments, our debt repayment obligations or repurchases of our debt, our stock price, and economic and market conditions. Our stock repurchases may be effected from time to time through open market purchases or pursuant to a Rule 10b5-1 plan. Our stock repurchase program may be accelerated, suspended, delayed or discontinued at any time. Dividends on Common Stock In December 2020, our Board of Directors declared a quarterly cash dividend of $0.24 per share of our outstanding common stock. The dividend is payable on January 21, 2021 to stockholders of record as of the close of business on January 7, 2021. Future declarations of dividends and the establishment of future record and payment dates are subject to the final determination of our Board of Directors. Fiscal 2021 Stock‑Based Awards Activity and Compensation Expense During the first half of fiscal 2021, we issued 45 million restricted stock-based units (RSUs), substantially all of which were issued as a part of our annual stock-based award process and are subject to service‑based vesting restrictions. These fiscal 2021 stock-based awards issuances were partially offset by stock-based award forfeitures and cancellations of 23 million shares during the first half of fiscal 2021. The RSUs that were granted during the six months ended November 30, 2020 have vesting restrictions, valuations and contractual lives of a similar nature to those described in Note 13 of Notes to Consolidated Financial Statements included in our Annual Report on Form 10-K for the fiscal year ended May 31, 2020. Stock‑based compensation expense is included in the following operating expense line items in our condensed consolidated statements of operations:
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INCOME TAXES |
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Nov. 30, 2020 | |||
Income Tax Disclosure [Abstract] | |||
INCOME TAXES |
Our effective tax rates for the periods presented are the result of the mix of income earned in various tax jurisdictions that apply a broad range of income tax rates. Our provision for income taxes varied from the tax computed at the U.S. federal statutory income tax rate for the periods presented primarily due to earnings in foreign operations, state taxes, the U.S. research and development tax credit, settlements with tax authorities, the tax effects of stock-based compensation, the Foreign Derived Intangible Income deduction and the tax effect of Global Intangible Low-Taxed Income. Our effective tax rates were 17.8% and 15.7% for the three and six months ended November 30, 2020, respectively, and 17.7% and 16.0% for the three and six months ended November 30, 2019, respectively. Our net deferred tax assets were $3.4 billion and $3.2 billion as of November 30, 2020 and May 31, 2020, respectively. We believe that it is more likely than not that the net deferred tax assets will be realized in the foreseeable future. Realization of our net deferred tax assets is dependent upon our generation of sufficient taxable income in future years in appropriate tax jurisdictions to obtain benefit from the reversal of temporary differences, net operating loss carryforwards and tax credit carryforwards. The amount of net deferred tax assets considered realizable is subject to adjustment in future periods if estimates of future taxable income change. Domestically, U.S. federal and state taxing authorities are currently examining income tax returns of Oracle and various acquired entities for years through fiscal 2019. Our U.S. federal income tax returns have been examined for all years prior to fiscal 2010, and we are no longer subject to audit for those periods. Our U.S. state income tax returns, with some exceptions, have been examined for all years prior to fiscal 2007, and we are no longer subject to audit for those periods. Internationally, tax authorities for numerous non-U.S. jurisdictions are also examining returns affecting our unrecognized tax benefits. With some exceptions, we are generally no longer subject to tax examinations in non-U.S. jurisdictions for years prior to fiscal 2001. We are under audit by the IRS and various other domestic and foreign tax authorities with regards to income tax and indirect tax matters and are involved in various challenges and litigation in a number of countries, including, in particular, Australia, Brazil, Canada, India, Indonesia, Israel, Mexico, Pakistan, Saudi Arabia, South Korea and Spain, where the amounts under controversy are significant. In some, although not all, cases, we have reserved for potential adjustments to our provision for income taxes and accrual of indirect taxes that may result from examinations by, or any negotiated agreements with, these tax authorities or final outcomes in judicial proceedings, and we believe that the final outcome of these examinations, agreements or judicial proceedings will not have a material effect on our results of operations. If events occur which indicate payment of these amounts is unnecessary, the reversal of the liabilities would result in the recognition of benefits in the period we determine the liabilities are no longer necessary. If our estimates of the federal, state, and foreign income tax liabilities and indirect tax liabilities are less than the ultimate assessment, it could result in a further charge to expense. We believe that we have adequately provided under GAAP for outcomes related to our tax audits. However, there can be no assurances as to the possible outcomes or any related financial statement effect thereof.
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SEGMENT INFORMATION |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SEGMENT INFORMATION |
ASC 280, Segment Reporting, establishes standards for reporting information about operating segments. Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker, or decision-making group, in deciding how to allocate resources and in assessing performance. Our chief operating decision makers (CODMs) are our Chief Executive Officer and Chief Technology Officer. We are organized by line of business and geographically. While our CODMs evaluate results in a number of different ways, the line of business management structure is the primary basis for which the allocation of resources and financial results are assessed. The tabular information below presents the financial information provided to our CODMs for their review and assists our CODMs with evaluating the company’s performance and allocating company resources. We have three businesses—cloud and license, hardware and services—each of which is comprised of a operating segment. All three of our businesses market and sell our offerings globally to businesses of many sizes, government agencies, educational institutions and resellers with a worldwide sales force positioned to offer the combinations that best meet customer needs.Our cloud and license business engages in the sale, marketing and delivery of our enterprise applications and infrastructure technologies through cloud and on-premise deployment models including our cloud services and license support offerings; and our cloud license and on-premise license offerings. Cloud services and license support revenues are generated from offerings that are typically contracted with customers directly, billed to customers in advance, delivered to customers over time with our revenue recognition occurring over the contractual terms, and renewed by customers upon completion of the contractual terms. Cloud services and license support contracts provide customers with access to the latest updates to the applications and infrastructure technologies as they become available and for which the customer contracted and also include related technical support services over the contractual term. Cloud license and on-premise license revenues represent fees earned from granting customers licenses, generally on a perpetual basis, to use our database and middleware and our applications software products within cloud and on-premise IT environments. We generally recognize revenues at the point in time the software is made available to the customer to download and use, which typically is immediate upon signature of the license contract. In each fiscal year, our cloud and license business’ contractual activities are typically highest in our fourth fiscal quarter and the related cash flows are typically highest in the following quarter (i.e., in the first fiscal quarter of the next fiscal year) as we receive payments from these contracts. Our hardware business provides Oracle Engineered Systems, servers, storage, industry-specific hardware, operating systems, virtualization, management and other hardware-related software to support diverse IT environments. Our hardware business also offers hardware support, which provides customers with software updates for the software components that are essential to the functionality of their hardware products, such as Oracle Solaris and certain other software, and can also include product repairs, maintenance services and technical support services. Our services business provides services to customers and partners to help maximize the performance of their investments in Oracle applications and infrastructure technologies. We do not track our assets for each business. Consequently, it is not practical to show assets by operating segment. The following table presents summary results for each of our three businesses:
The following table reconciles total operating segment revenues to total revenues as well as total operating segment margin to income before provision for income taxes:
Disaggregation of Revenues We have considered information that is regularly reviewed by our CODMs in evaluating financial performance, and disclosures presented outside of our financial statements in our earnings releases and used in investor presentations to disaggregate revenues to depict how the nature, amount, timing and uncertainty of revenues and cash flows are affected by economic factors. The principal category we use to disaggregate revenues is the nature of our products and services as presented in our condensed consolidated statements of operations, the total of which is reconciled to revenues from our reportable segments as per the preceding tables of this footnote. The following table is a summary of our total revenues by geographic region. The relative proportion of our total revenues between each geographic region as presented in the table below was materially consistent across each of our operating segments’ revenues for the periods presented.
The following table presents our cloud services and license support revenues by applications and infrastructure ecosystems.
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EARNINGS PER SHARE |
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Earnings Per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
EARNINGS PER SHARE |
Basic earnings per share is computed by dividing net income for the period by the weighted-average number of common shares outstanding during the period. Diluted earnings per share is computed by dividing net income for the period by the weighted average number of common shares outstanding during the period, plus the dilutive effect of outstanding restricted stock-based awards, stock options, and shares issuable under the employee stock purchase plan as applicable pursuant to the treasury stock method. The following table sets forth the computation of basic and diluted earnings per share:
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LEGAL PROCEEDINGS |
6 Months Ended | ||
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Nov. 30, 2020 | |||
Legal Proceedings [Abstract] | |||
LEGAL PROCEEDINGS |
Hewlett-Packard Company Litigation On June 15, 2011, Hewlett-Packard Company, now Hewlett Packard Enterprise Company (HP), filed a complaint in the California Superior Court, County of Santa Clara against Oracle Corporation alleging numerous causes of action including breach of contract, breach of the covenant of good faith and fair dealing, defamation, intentional interference with prospective economic advantage, and violation of the California Unfair Business Practices Act. The complaint alleged that when Oracle announced on March 22 and 23, 2011 that it would no longer develop future versions of its software to run on HP’s Itanium-based servers, it breached a settlement agreement signed on September 20, 2010 (the HP Settlement Agreement), resolving litigation between HP and one of Oracle’s former CEOs who had previously acted as HP’s chief executive officer and chairman of HP’s board of directors. HP sought a judicial declaration of the parties’ rights and obligations under the HP Settlement Agreement and other equitable and monetary relief. Oracle answered the complaint and filed cross-claims. After a bench trial on the meaning of the HP Settlement Agreement, the court found that the HP Settlement Agreement required Oracle to continue to develop certain of its software products for use on HP’s Itanium-based servers at no cost to HP. The case proceeded to a jury trial in May 2016. On June 30, 2016, the jury returned a verdict in favor of HP on its claims for breach of contract and breach of the implied covenant of good faith and fair dealing and against Oracle on its cross-claims. The jury awarded HP $3.0 billion in damages. Under the court’s rulings, HP is entitled to post-judgment interest, but not pre-judgment interest, on this award. After the trial court denied Oracle’s motion for a new trial, Oracle filed a notice of appeal on January 17, 2017. On February 2, 2017, HP filed a notice of appeal of the trial court’s denial of pre-judgment interest. Oracle has posted a mandated surety bond with the trial court for the amounts owing. No amounts have been paid or recorded to our results of operations. We continue to believe that we have meritorious defenses against HP’s claims, and we intend to present these defenses to the appellate court. Oracle filed its opening brief on March 7, 2019. Briefing on the appeal was completed November 1, 2019, and the appellate court has not scheduled a date for oral argument. We cannot currently estimate a reasonably possible range of loss for this action due to the complexities and uncertainty surrounding the appeal process and the nature of the claims. Litigation is inherently unpredictable, and the outcome of the appeal process related to this action is uncertain. It is possible that the resolution of this action could have a material impact on our future cash flows and results of operations. Derivative Litigation Concerning Oracle’s NetSuite Acquisition On May 3 and July 18, 2017, two alleged stockholders filed separate derivative lawsuits in the Court of Chancery of the State of Delaware, purportedly on Oracle’s behalf. Thereafter, the court consolidated the two derivative cases and designated the July 18, 2017 complaint as the operative complaint. The consolidated lawsuit was brought against all the then-current members and one former member of our Board of Directors, and Oracle as a nominal defendant. Plaintiff alleges that the defendants breached their fiduciary duties by causing Oracle to agree to purchase NetSuite Inc. (NetSuite) at an excessive price. Plaintiff seeks declaratory relief, unspecified monetary damages (including interest), and attorneys’ fees and costs. The defendants filed a motion to dismiss, which the court denied on March 19, 2018. On May 4, 2018, our Board of Directors established a Special Litigation Committee (the SLC) to investigate the allegations in this derivative action. Three non-employee directors served on the SLC. On August 15, 2019, the SLC filed a letter with the court, stating that the SLC believed that plaintiff should be allowed to proceed with the derivative litigation on behalf of Oracle. After the SLC advised the Board that it had fulfilled its duties and obligations, the Board withdrew the SLC’s authority, except that the SLC maintained certain authority to respond to discovery requests in the litigation. After plaintiff filed its initial complaint, plaintiff filed several amended complaints. Plaintiff filed its most recent amended complaint on October 22, 2020, and on October 23, 2020, plaintiff brought a motion for leave to file a further amended complaint. The operative complaint asserts claims for breach of fiduciary duty against our Chief Executive Officer, our Chief Technology Officer, the estate of Mark Hurd (our former Chief Executive Officer who passed away on October 18, 2019), and two other members of our Board of Directors. Oracle is named as a nominal defendant. On September 8, 2020, the estate of Mark Hurd and the two other members of our Board of Directors moved to dismiss this complaint, when it was, at the time, a proposed amended complaint. No hearing has been scheduled on this motion. On November 6, 2020, our Chief Executive Officer, our Chief Technology Officer, and Oracle as a nominal defendant filed answers to the operative complaint. The parties are conducting discovery. While Oracle continues to evaluate these claims, we do not believe this litigation will have a material impact on our financial position or results of operations. Securities Class Action and Derivative Litigation Concerning Oracle’s Cloud Business On August 10, 2018, a putative class action, brought by an alleged stockholder of Oracle, was filed in the U.S. District Court for the Northern District of California against us, our Chief Technology Officer, our then-two Chief Executive Officers, two other Oracle executives, and one former Oracle executive. As noted above, Mr. Hurd, one of our then-two Chief Executive Officers, passed away on October 18, 2019. On March 8, 2019, plaintiff filed an amended complaint. Plaintiff alleges that the defendants made or are responsible for false and misleading statements regarding Oracle’s cloud business. Plaintiff further alleges that the former Oracle executive engaged in insider trading. Plaintiff seeks a ruling that this case may proceed as a class action, and seeks damages, attorneys’ fees and costs, and unspecified declaratory/injunctive relief. On April 19, 2019, defendants moved to dismiss plaintiff’s amended complaint. On December 17, 2019, the court granted this motion, giving plaintiffs an opportunity to file an amended complaint, which plaintiff filed on February 17, 2020. On April 23, 2020, defendants filed a motion to dismiss, and the court held a hearing on this motion on September 24, 2020. The court has not yet ruled on this motion. We believe that we have meritorious defenses against this action, and we will continue to vigorously defend it. On February 12, 2019, a stockholder derivative lawsuit was filed in the U.S. District Court for the Northern District of California. The derivative suit is brought by two alleged stockholders of Oracle, purportedly on Oracle’s behalf, against all members of our Board of Directors, and Oracle as a nominal defendant. Plaintiffs claim that the alleged actions described in the August 10, 2018 class action discussed above caused harm to Oracle, and that Oracle’s Board members violated their fiduciary duties of care, loyalty, reasonable inquiry, and good faith by failing to prevent this alleged harm. Plaintiffs also allege that defendants’ actions constitute gross mismanagement, waste, and securities fraud. Plaintiffs seek a ruling that this case may proceed as a derivative action, a finding that defendants are liable for breaching their fiduciary duties, an order directing defendants to enact corporate reforms, attorneys’ fees and costs, and unspecified equitable relief. On April 26, 2019, the court approved a stay of this action, which will be lifted if the class action discussed above is dismissed, if the motion to dismiss the class action is denied, or if either party voluntarily chooses to lift the stay. On May 8, 2019, a second derivative action was filed in the U.S. District Court for the Northern District of California. The derivative suit is brought by an alleged stockholder of Oracle, purportedly on Oracle’s behalf, against our Chief Technology Officer, our then‑two Chief Executive Officers, one former Oracle executive, and Oracle as a nominal defendant. Plaintiff claims that the alleged actions described in the August 10, 2018 class action discussed above caused harm to Oracle, and plaintiff raises further allegations of impropriety relating to Oracle’s stock buybacks and acquisition of NetSuite. Plaintiff asserts claims for violation of securities laws, violation of fiduciary duties, contribution and indemnification. Plaintiff seeks a ruling that the case may proceed as a derivative action, and seeks damages, declaratory and other equitable relief, attorneys’ and expert fees and costs. On June 4, 2019, the court issued an order finding that this case was related to the derivative case above and staying the case under the court’s prior stay order. On July 8, 2019, plaintiffs in the two derivative actions filed a consolidated complaint. The actions remain stayed. While Oracle continues to evaluate these claims, we do not believe this litigation will have a material impact on our financial position or results of operations. Derivative Litigation Concerning Oracle’s Board Composition and Hiring Practices On July 2 and 10, 2020, two alleged stockholders filed derivative lawsuits in the U.S. District Court for the Northern District of California, purportedly on Oracle’s behalf, and thereafter, filed a consolidated complaint on August 21, 2020. On July 30, 2020, a third alleged stockholder filed a derivative lawsuit in the same court. On October 16, 2020, defendants moved to consolidate all these actions, and the court granted this motion on November 30, 2020. On December 7, 2020, plaintiffs filed a consolidated derivative complaint against all members of our Board of Directors, and Oracle as a nominal defendant, seeking declaratory and injunctive relief, monetary damages, interest, corporate governance changes, disgorgement, restitution, punitive damages, and an award of attorneys’ fees, expert fees, and costs. Plaintiffs allege that: (a) defendants breached their fiduciary duties by permitting Oracle to violate anti-discrimination laws and Oracle’s own policies, failing to ensure sufficient diversity on the board, failing to ensure an independent board chairman, rehiring Ernst & Young LLP as Oracle’s auditors, and by breaching the HP Settlement Agreement (discussed above); (b) defendants made false and misleading statements in Oracle’s proxy statements; (c) defendants received unjust compensation and were unjustly enriched; (d) defendants aided and abetted this conduct; and (e) our Chief Technology Officer and our Chief Executive Officer are liable for abuse of control. Defendants’ response to this complaint is currently due on January 6, 2020. While Oracle continues to evaluate these claims, we do not believe this litigation will have a material impact on our financial position or results of operations. Other Litigation We are party to various other legal proceedings and claims, either asserted or unasserted, which arise in the ordinary course of business, including proceedings and claims that relate to acquisitions we have completed or to companies we have acquired or are attempting to acquire. While the outcome of these matters cannot be predicted with certainty, we do not believe that the outcome of any of these matters, individually or in the aggregate, will result in losses that are materially in excess of amounts already recognized, if any. |
BASIS OF PRESENTATION, RECENT ACCOUNTING PRONOUNCEMENTS AND OTHER (Policies) |
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Accounting Policies [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basis of Presentation |
Basis of Presentation We have prepared the condensed consolidated financial statements included herein pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (SEC). Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles (GAAP) have been condensed or omitted pursuant to such rules and regulations. However, we believe that the disclosures herein are adequate to ensure the information presented is not misleading. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the notes thereto included in our Annual Report on Form 10-K for the fiscal year ended May 31, 2020. We believe that all necessary adjustments, which consisted only of normal recurring items, have been included in the accompanying financial statements to present fairly the results of the interim periods. The results of operations for the interim periods presented are not necessarily indicative of the operating results to be expected for any subsequent interim period or for our fiscal year ending May 31, 2021. During the first half of fiscal 2021, we adopted Accounting Standards Update (ASU) 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments and subsequent amendments to the initial guidance; and ASU 2020-01, Investments—Equity Securities (Topic 321), Investments—Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815), neither of which had a material impact to our current or historical condensed consolidated financial statements. There have been no changes to our significant accounting policies as disclosed in our Annual Report on Form 10-K for the fiscal year ended May 31, 2020 that had a significant impact on our condensed consolidated financial statements or notes thereto as of and for the six months ended November 30, 2020. |
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Remaining Performance Obligations from Contracts with Customers |
Remaining Performance Obligations from Contracts with Customers Trade receivables, net of allowance for doubtful accounts, and deferred revenues are reported net of related uncollected deferred revenues in our condensed consolidated balance sheets as of November 30, 2020 and May 31, 2020. The revenues recognized during the six months ended November 30, 2020 and 2019, respectively, that were included in the opening deferred revenues balances as of May 31, 2020 and 2019, respectively, were approximately $5.9 billion and $6.2 billion, respectively. Revenues recognized from performance obligations satisfied in prior periods and impairment losses recognized on our receivables were immaterial in each of the three and six months ended November 30, 2020 and 2019, respectively. Remaining performance obligations, as defined in Note 1 of Notes to Consolidated Financial Statements included in our Annual Report on Form 10-K for the fiscal year ended May 31, 2020, were $34.4 billion as of November 30, 2020, approximately 60% of which we expect to recognize as revenues over the next twelve months and the remainder thereafter. |
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Sales of Financing Receivables |
Sales of Financing Receivables We offer certain of our customers the option to acquire certain of our cloud and license, hardware and services offerings through separate long-term payment contracts. We generally sell these contracts that we have financed for our customers on a non-recourse basis to financial institutions within 90 days of the contracts’ dates of execution. We record the transfers of amounts due from customers to financial institutions as sales of financing receivables because we are considered to have surrendered control of these financing receivables. Financing receivables sold to financial institutions were $300 million and $977 million for the three and six months ended November 30, 2020, respectively, and $196 million and $876 million for the three and six months ended November 30, 2019, respectively. |
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Cash, Cash Equivalents and Restricted Cash |
Cash, Cash Equivalents and Restricted Cash Restricted cash that was included within cash and cash equivalents as presented within our condensed consolidated balance sheets as of November 30, 2020 and May 31, 2020 and our condensed consolidated statements of cash flows for the six months ended November 30, 2020 and 2019 was nominal. |
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Acquisition Related and Other Expenses |
Acquisition Related and Other Expenses Acquisition related and other expenses primarily consist of personnel related costs for transitional and certain other employees, certain business combination adjustments including adjustments after the measurement period has ended, and certain other operating items, net.
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Non-Operating (Expenses) Income, net |
Non-Operating (Expenses) Income, net Non-operating (expenses) income, net consists primarily of interest income, net foreign currency exchange losses, the noncontrolling interests in the net profits of our majority-owned subsidiaries (primarily Oracle Financial Services Software Limited and Oracle Corporation Japan) and net other income and expenses, including net realized gains and losses related to all of our investments, net unrealized gains and losses related to the small portion of our investment portfolio related to our deferred compensation plan, net unrealized gains and losses related to equity securities and non-service net periodic pension income and losses.
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Recent Accounting Pronouncements |
Recent Accounting Pronouncements Financial Instruments: In March 2020, the Financial Accounting Standards Board (FASB) issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting (ASU 2020-04). ASU 2020-04 provides optional guidance for contract modifications and certain hedging relationships associated with the transition from reference rates that are expected to be discontinued. We will adopt ASU 2020-04 when our relevant contracts are modified upon transition to alternative reference rates. We do not expect our adoption of ASU 2020-04 to have a material impact on our consolidated financial statements. Income Taxes: In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (ASU 2019-12), which is intended to simplify various areas related to the accounting for income taxes and improve consistent application of Topic 740. ASU 2019-12 is effective for us beginning in fiscal 2022, and earlier adoption is permitted. We are currently evaluating the impact of our pending adoption of ASU 2019-12 on our consolidated financial statements. |
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Fair Value Measurements |
We perform fair value measurements in accordance with FASB Accounting Standards Codification (ASC) 820, Fair Value Measurement. ASC 820 defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required to be recorded at their fair values, we consider the principal or most advantageous market in which we would transact and consider assumptions that market participants would use when pricing the assets or liabilities, such as inherent risk, transfer restrictions and risk of nonperformance. ASC 820 establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. An asset’s or a liability’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. ASC 820 establishes three levels of inputs that may be used to measure fair value:
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Segment Information | ASC 280, Segment Reporting, establishes standards for reporting information about operating segments. Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker, or decision-making group, in deciding how to allocate resources and in assessing performance. |
BASIS OF PRESENTATION, RECENT ACCOUNTING PRONOUNCEMENTS AND OTHER (Tables) |
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Organization Consolidation And Presentation Of Financial Statements [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisition Related and Other Expenses |
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Non-Operating Income, net |
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FAIR VALUE MEASUREMENTS (Tables) |
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Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets and Liabilities Measured at Fair Value on a Recurring Basis |
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INTANGIBLE ASSETS AND GOODWILL (Tables) |
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Goodwill And Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Intangible Assets |
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Estimated Future Amortization Expenses Related to Intangible Assets |
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Goodwill |
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RESTRUCTURING ACTIVITIES (Tables) |
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Restructuring And Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of All Plans |
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DEFERRED REVENUES (Tables) |
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Deferred Revenue Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deferred Revenues |
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DERIVATIVE FINANCIAL INSTRUMENTS (Tables) |
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Derivative Instrument Detail [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Values of Derivative Instruments Designated as Hedges in Condensed Consolidated Balance Sheets |
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Effects of Fair Value Hedging Relationships on Hedged Items in Condensed Consolidated Balance Sheets |
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Effects of Derivative Instruments Designated as Hedges on Income |
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Effects of Derivative Instruments Designated as Hedges on Other Comprehensive Income (OCI) or Loss (OCL) |
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STOCKHOLDERS' EQUITY (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Stockholders Equity Note [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-Based Compensation Expense |
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SEGMENT INFORMATION (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Businesses Results |
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Reconciliation of Total Operating Segment Revenues to Total Revenues |
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Reconciliation of Total Operating Segment Margin to Income before Provision for Income Taxes |
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Disaggregation of Revenue by Geography and Ecosystem |
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EARNINGS PER SHARE (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Nov. 30, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share |
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BASIS OF PRESENTATION, RECENT ACCOUNTING PRONOUNCEMENTS AND OTHER Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Nov. 30, 2020 |
Nov. 30, 2019 |
Nov. 30, 2020 |
Nov. 30, 2019 |
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Contract with Customer, Asset and Liability [Abstract] | ||||
Revenues recognized included in opening deferred revenues balances | $ 5,900 | $ 6,200 | ||
Revenue, Performance Obligation [Abstract] | ||||
Remaining Performance Obligation, Amount, Total | $ 34,400 | $ 34,400 | ||
Remaining Performance Obligation, Percentage, to be recognized in the next twelve months | 60.00% | 60.00% | ||
Sales of Financing Receivables [Abstract] | ||||
Sales of financing receivables | $ 300 | $ 196 | $ 977 | $ 876 |
BASIS OF PRESENTATION, RECENT ACCOUNTING PRONOUNCEMENTS AND OTHER (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Nov. 30, 2020 |
Nov. 30, 2019 |
Nov. 30, 2020 |
Nov. 30, 2019 |
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Acquisition Related and Other Expenses [Abstract] | ||||
Transitional and other employee related costs | $ 1 | $ 3 | $ 3 | $ 7 |
Business combination adjustments, net | 0 | (4) | 1 | 2 |
Other, net | 75 | 13 | 91 | 28 |
Total acquisition related and other expenses | 76 | 12 | 95 | 37 |
Non-Operating Income, net [Abstract] | ||||
Interest income | 27 | 145 | 58 | 335 |
Foreign currency losses, net | (16) | (26) | (66) | (80) |
Noncontrolling interests in income | (43) | (46) | (81) | (87) |
Other, net | 21 | 19 | 76 | 23 |
Total non-operating (expenses) income, net | $ (11) | $ 92 | $ (13) | $ 191 |
FAIR VALUE MEASUREMENTS Narrative (Details) - Senior notes [Member] - USD ($) $ in Billions |
Nov. 30, 2020 |
May 31, 2020 |
---|---|---|
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total debt, carrying value | $ 70.8 | $ 71.6 |
Fair Value Measurements Using Input Types Level 2 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total debt, fair value | $ 82.1 | $ 80.9 |
INTANGIBLE ASSETS AMORTIZATION (Details) - USD ($) $ in Millions |
Nov. 30, 2020 |
May 31, 2020 |
---|---|---|
Finite lived intangible assets future amortization expense [Abstract] | ||
Remainder of fiscal 2021 | $ 668 | |
Fiscal 2022 | 1,106 | |
Fiscal 2023 | 682 | |
Fiscal 2024 | 445 | |
Fiscal 2025 | 126 | |
Fiscal 2026 | 24 | |
Thereafter | 10 | |
Intangible Assets, Net | $ 3,061 | $ 3,738 |
GOODWILL (Details) $ in Millions |
6 Months Ended | |||
---|---|---|---|---|
Nov. 30, 2020
USD ($)
| ||||
Goodwill [Line Items] | ||||
Balances at period start | $ 43,769 | |||
Goodwill adjustments, net | 108 | [1] | ||
Balances at period end | 43,877 | |||
Cloud and License [Member] | ||||
Goodwill [Line Items] | ||||
Balances at period start | 39,637 | |||
Goodwill adjustments, net | 96 | [1] | ||
Balances at period end | 39,733 | |||
Hardware [Member] | ||||
Goodwill [Line Items] | ||||
Balances at period start | 2,367 | |||
Goodwill adjustments, net | 0 | [1] | ||
Balances at period end | 2,367 | |||
Services [Member] | ||||
Goodwill [Line Items] | ||||
Balances at period start | 1,765 | |||
Goodwill adjustments, net | 12 | [1] | ||
Balances at period end | $ 1,777 | |||
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RESTRUCTURING ACTIVITIES Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Nov. 30, 2020 |
Nov. 30, 2019 |
Nov. 30, 2020 |
Nov. 30, 2019 |
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Restructuring reserve [Line Items] | ||||
Restructuring expenses | $ 96 | $ 42 | $ 270 | $ 120 |
Fiscal 2019 Oracle Restructuring [Member] | ||||
Restructuring reserve [Line Items] | ||||
Restructuring expenses | $ 269 | $ 125 |
RESTRUCTURING ACTIVITIES (Details) $ in Millions |
6 Months Ended | |||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Nov. 30, 2020
USD ($)
|
[2] | |||||||||||||||
Restructuring reserve [Line Items] | ||||||||||||||||
Accrued at period start | $ 151 | [1] | ||||||||||||||
Initial Costs | 289 | [3] | ||||||||||||||
Adjustments to Cost | (19) | [4] | ||||||||||||||
Cash Payments | (246) | |||||||||||||||
Others | 12 | [5] | ||||||||||||||
Accrued at period end | 187 | [1] | ||||||||||||||
Fiscal 2019 Oracle Restructuring [Member] | ||||||||||||||||
Restructuring reserve [Line Items] | ||||||||||||||||
Accrued at period start | 138 | [1] | ||||||||||||||
Initial Costs | 287 | [3] | ||||||||||||||
Adjustments to Cost | (18) | [4] | ||||||||||||||
Cash Payments | (244) | |||||||||||||||
Others | 12 | [5] | ||||||||||||||
Accrued at period end | 175 | [1] | ||||||||||||||
Total Costs Accrued to Date | 1,006 | |||||||||||||||
Total Expected Program Costs | 1,076 | |||||||||||||||
Fiscal 2019 Oracle Restructuring [Member] | Other [Member] | ||||||||||||||||
Restructuring reserve [Line Items] | ||||||||||||||||
Accrued at period start | 22 | [1],[6] | ||||||||||||||
Initial Costs | 100 | [3],[6] | ||||||||||||||
Adjustments to Cost | 0 | [4],[6] | ||||||||||||||
Cash Payments | (80) | [6] | ||||||||||||||
Others | 3 | [5],[6] | ||||||||||||||
Accrued at period end | 45 | [1],[6] | ||||||||||||||
Total Costs Accrued to Date | 363 | [6] | ||||||||||||||
Total Expected Program Costs | 369 | [6] | ||||||||||||||
Fiscal 2019 Oracle Restructuring [Member] | Cloud and License [Member] | Operating Segments [Member] | ||||||||||||||||
Restructuring reserve [Line Items] | ||||||||||||||||
Accrued at period start | 75 | [1] | ||||||||||||||
Initial Costs | 126 | [3] | ||||||||||||||
Adjustments to Cost | (15) | [4] | ||||||||||||||
Cash Payments | (112) | |||||||||||||||
Others | 7 | [5] | ||||||||||||||
Accrued at period end | 81 | [1] | ||||||||||||||
Total Costs Accrued to Date | 414 | |||||||||||||||
Total Expected Program Costs | 454 | |||||||||||||||
Fiscal 2019 Oracle Restructuring [Member] | Hardware [Member] | Operating Segments [Member] | ||||||||||||||||
Restructuring reserve [Line Items] | ||||||||||||||||
Accrued at period start | 14 | [1] | ||||||||||||||
Initial Costs | 24 | [3] | ||||||||||||||
Adjustments to Cost | (1) | [4] | ||||||||||||||
Cash Payments | (21) | |||||||||||||||
Others | 0 | [5] | ||||||||||||||
Accrued at period end | 16 | [1] | ||||||||||||||
Total Costs Accrued to Date | 103 | |||||||||||||||
Total Expected Program Costs | 106 | |||||||||||||||
Fiscal 2019 Oracle Restructuring [Member] | Services [Member] | Operating Segments [Member] | ||||||||||||||||
Restructuring reserve [Line Items] | ||||||||||||||||
Accrued at period start | 27 | [1] | ||||||||||||||
Initial Costs | 37 | [3] | ||||||||||||||
Adjustments to Cost | (2) | [4] | ||||||||||||||
Cash Payments | (31) | |||||||||||||||
Others | 2 | [5] | ||||||||||||||
Accrued at period end | 33 | [1] | ||||||||||||||
Total Costs Accrued to Date | 126 | |||||||||||||||
Total Expected Program Costs | 147 | |||||||||||||||
Other Restructuring Plans [Member] | ||||||||||||||||
Restructuring reserve [Line Items] | ||||||||||||||||
Accrued at period start | 13 | [1],[7] | ||||||||||||||
Initial Costs | 2 | [3],[7] | ||||||||||||||
Adjustments to Cost | (1) | [4],[7] | ||||||||||||||
Cash Payments | (2) | [7] | ||||||||||||||
Others | 0 | [5],[7] | ||||||||||||||
Accrued at period end | $ 12 | [1],[7] | ||||||||||||||
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DEFERRED REVENUES (Details) - USD ($) $ in Millions |
Nov. 30, 2020 |
May 31, 2020 |
---|---|---|
Deferred Revenues [Line Items] | ||
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 |
Cloud services and license support [Member] | Cloud and License [Member] | ||
Deferred Revenues [Line Items] | ||
Deferred revenues, current | 7,057 | 6,996 |
Hardware [Member] | Hardware [Member] | ||
Deferred Revenues [Line Items] | ||
Deferred revenues, current | 570 | 613 |
Services [Member] | Services [Member] | ||
Deferred Revenues [Line Items] | ||
Deferred revenues, current | 395 | 365 |
Cloud license and on-premise license [Member] | Cloud and License [Member] | ||
Deferred Revenues [Line Items] | ||
Deferred revenues, current | $ 40 | $ 28 |
DERIVATIVE FINANCIAL INSTRUMENTS Narrative (Details) - Foreign Currency Forward Contracts Not Designated as Hedges [Member] - USD ($) $ in Billions |
Nov. 30, 2020 |
May 31, 2020 |
---|---|---|
Forward contracts held to purchase U.S. Dollars [Member] | ||
Foreign Currency Forward Contracts Not Designated as Hedges (Narrative) [Abstract] | ||
Notional amounts of forward contracts | $ 3.9 | $ 4.2 |
Forward contracts held to sell U.S. Dollars [Member] | ||
Foreign Currency Forward Contracts Not Designated as Hedges (Narrative) [Abstract] | ||
Notional amounts of forward contracts | $ 3.9 | $ 3.9 |
DERIVATIVE FINANCIAL INSTRUMENTS EFFECTS ON BALANCE SHEETS (Details) - USD ($) $ in Millions |
Nov. 30, 2020 |
May 31, 2020 |
---|---|---|
Derivative assets: | ||
Total derivative assets | $ 72 | $ 29 |
Derivative liabilities: | ||
Total derivative liabilities | 137 | 268 |
Fair value hedges [Member] | Notes payable, current [Member] | ||
Fair Values of Derivative Instruments Designated as Hedges in Condensed Consolidated Balance Sheets [Abstract] | ||
Carrying amount of hedged item | 1,517 | 0 |
Cumulative hedging adjustment included in the carrying amount | 17 | 0 |
Fair value hedges [Member] | Notes payable and other borrowings, non-current [Member] | ||
Fair Values of Derivative Instruments Designated as Hedges in Condensed Consolidated Balance Sheets [Abstract] | ||
Carrying amount of hedged item | 2,217 | 3,680 |
Cumulative hedging adjustment included in the carrying amount | 111 | 75 |
Fair value hedges [Member] | Interest Rate Swaps [Member] | Other current assets [Member] | ||
Derivative assets: | ||
Total derivative assets | 17 | 0 |
Fair value hedges [Member] | Interest Rate Swaps [Member] | Other non-current assets [Member] | ||
Derivative assets: | ||
Total derivative assets | 0 | 29 |
Fair value hedges [Member] | Cross-currency interest rate swap agreements [Member] | Other non-current assets [Member] | ||
Derivative assets: | ||
Total derivative assets | 55 | 0 |
Fair value hedges [Member] | Cross-currency interest rate swap agreements [Member] | Other non-current liabilities [Member] | ||
Derivative liabilities: | ||
Total derivative liabilities | 0 | 17 |
Cash flow hedges [Member] | Cross-Currency Swap [Member] | Other current liabilities [Member] | ||
Derivative liabilities: | ||
Total derivative liabilities | $ 137 | $ 251 |
DERIVATIVE FINANCIAL INSTRUMENTS EFFECTS ON EARNINGS AND AOCL (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Nov. 30, 2020 |
Nov. 30, 2019 |
Nov. 30, 2020 |
Nov. 30, 2019 |
|
Derivative [Line Items] | ||||
Non-operating (expenses) income, net | $ (11) | $ 92 | $ (13) | $ 191 |
Interest expense | (600) | (465) | (1,214) | (959) |
Non-Operating (Expenses) Income, Net [Member] | ||||
Derivative [Line Items] | ||||
Non-operating (expenses) income, net | (11) | 92 | (13) | 191 |
Effects of derivative instruments designated as hedges on income [Abstract]: | ||||
Total gain (loss) on hedges recognized in income | 11 | (8) | 123 | (19) |
Interest Expense [Member] | ||||
Derivative [Line Items] | ||||
Interest expense | (600) | (465) | (1,214) | (959) |
Effects of derivative instruments designated as hedges on income [Abstract]: | ||||
Total gain (loss) on hedges recognized in income | 0 | 0 | 0 | 0 |
Fair value hedges [Member] | Non-Operating (Expenses) Income, Net [Member] | Interest Rate Swaps [Member] | ||||
Effects of derivative instruments designated as hedges on income [Abstract]: | ||||
Derivative instruments | 0 | 0 | 0 | 0 |
Hedged items | 0 | 0 | 0 | 0 |
Fair value hedges [Member] | Non-Operating (Expenses) Income, Net [Member] | Cross-currency interest rate swap agreements [Member] | ||||
Effects of derivative instruments designated as hedges on income [Abstract]: | ||||
Derivative instruments | (2) | 5 | 70 | (13) |
Hedged items | 1 | (3) | (62) | 12 |
Fair value hedges [Member] | Interest Expense [Member] | Interest Rate Swaps [Member] | ||||
Effects of derivative instruments designated as hedges on income [Abstract]: | ||||
Derivative instruments | (7) | (4) | (12) | 12 |
Hedged items | 7 | 4 | 12 | (12) |
Fair value hedges [Member] | Interest Expense [Member] | Cross-currency interest rate swap agreements [Member] | ||||
Effects of derivative instruments designated as hedges on income [Abstract]: | ||||
Derivative instruments | 2 | (16) | 4 | 7 |
Hedged items | (2) | 16 | (4) | (7) |
Cash flow hedges [Member] | Cross-Currency Swap Agreements [Member] | ||||
Effects of derivative instruments designated as hedges on income [Abstract]: | ||||
Cross-currency swap agreements designated as cash flow hedges | 6 | (2) | 114 | (34) |
Cash flow hedges [Member] | Non-Operating (Expenses) Income, Net [Member] | Cross-Currency Swap [Member] | ||||
Effects of derivative instruments designated as hedges on income [Abstract]: | ||||
Amount of gain (loss) reclassified from accumulated OCI | 12 | (10) | 115 | (18) |
Cash flow hedges [Member] | Interest Expense [Member] | Cross-Currency Swap [Member] | ||||
Effects of derivative instruments designated as hedges on income [Abstract]: | ||||
Amount of gain (loss) reclassified from accumulated OCI | $ 0 | $ 0 | $ 0 | $ 0 |
STOCKHOLDERS' EQUITY Narrative (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions |
6 Months Ended | ||
---|---|---|---|
Dec. 14, 2020 |
Nov. 30, 2020 |
Nov. 30, 2019 |
|
Stock Repurchases [Abstract] | |||
Amount available for future repurchases | $ 7,600 | ||
Repurchases of common stock (in shares) | 158.1 | 181.0 | |
Repurchased amount | $ 9,000 | $ 10,000 | |
Repurchased shares that were not settled (in shares) | 0.7 | ||
Repurchased amount that was not settled | $ 38 | ||
Stock-based compensation expense and valuations of stock awards [Abstract] | |||
Restricted stock-based units granted (in shares) | 45.0 | ||
Forfeitures and cancellations (in shares) | 23.0 | ||
Subsequent Event [Member] | |||
Dividends on Common Stock [Abstract] | |||
Dividends declared per share of outstanding common stock (in dollars per share) | $ 0.24 | ||
Dividend payable date | Jan. 21, 2021 | ||
Dividend record date | Jan. 07, 2021 |
STOCKHOLDERS' EQUITY (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Nov. 30, 2020 |
Nov. 30, 2019 |
Nov. 30, 2020 |
Nov. 30, 2019 |
|
Stock-based compensation expense and valuations of stock awards [Abstract] | ||||
Total stock-based compensation | $ 488 | $ 397 | $ 916 | $ 843 |
Cloud services and license support [Member] | ||||
Stock-based compensation expense and valuations of stock awards [Abstract] | ||||
Total stock-based compensation | 36 | 30 | 66 | 61 |
Hardware [Member] | ||||
Stock-based compensation expense and valuations of stock awards [Abstract] | ||||
Total stock-based compensation | 3 | 3 | 6 | 6 |
Services [Member] | ||||
Stock-based compensation expense and valuations of stock awards [Abstract] | ||||
Total stock-based compensation | 14 | 14 | 26 | 28 |
Sales and marketing [Member] | ||||
Stock-based compensation expense and valuations of stock awards [Abstract] | ||||
Total stock-based compensation | 80 | 37 | 151 | 125 |
Research and development [Member] | ||||
Stock-based compensation expense and valuations of stock awards [Abstract] | ||||
Total stock-based compensation | 314 | 272 | 590 | 543 |
General and administrative [Member] | ||||
Stock-based compensation expense and valuations of stock awards [Abstract] | ||||
Total stock-based compensation | $ 41 | $ 41 | $ 77 | $ 80 |
INCOME TAXES (Details) - USD ($) $ in Billions |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Nov. 30, 2020 |
Nov. 30, 2019 |
Nov. 30, 2020 |
Nov. 30, 2019 |
May 31, 2020 |
|
Income Tax Disclosure [Abstract] | |||||
Effective income tax rate | 17.80% | 17.70% | 15.70% | 16.00% | |
Deferred Tax Assets, Net [Abstract] | |||||
Net deferred tax assets | $ 3.4 | $ 3.4 | $ 3.2 |
SEGMENT INFORMATION Narrative (Details) |
6 Months Ended |
---|---|
Nov. 30, 2020
Business
Segment
| |
Segment reporting information [Line Items] | |
Number of businesses | Business | 3 |
Cloud and License [Member] | |
Segment reporting information [Line Items] | |
Number of operating segments | 1 |
Hardware [Member] | |
Segment reporting information [Line Items] | |
Number of operating segments | 1 |
Services [Member] | |
Segment reporting information [Line Items] | |
Number of operating segments | 1 |
SEGMENT INFORMATION (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|---|
Nov. 30, 2020 |
Nov. 30, 2019 |
Nov. 30, 2020 |
Nov. 30, 2019 |
|||||||
Segment reporting information [Line Items] | ||||||||||
Revenues | $ 9,800 | $ 9,614 | $ 19,167 | $ 18,832 | ||||||
Cloud services and license support expenses | [1] | 1,064 | 1,022 | 2,075 | 2,003 | |||||
Sales and marketing expenses | [1] | 1,836 | 2,068 | 3,690 | 4,086 | |||||
Margin | 3,583 | 3,183 | 6,794 | 6,060 | ||||||
Operating Segments [Member] | ||||||||||
Segment reporting information [Line Items] | ||||||||||
Revenues | [2] | 9,800 | 9,615 | 19,168 | 18,835 | |||||
Expenses | 3,553 | 3,917 | 7,066 | 7,650 | ||||||
Margin | [3] | 6,247 | 5,698 | 12,102 | 11,185 | |||||
Operating Segments [Member] | Cloud and License [Member] | ||||||||||
Segment reporting information [Line Items] | ||||||||||
Revenues | [2] | 8,204 | 7,938 | 16,038 | 15,556 | |||||
Cloud services and license support expenses | 1,008 | 970 | 1,966 | 1,901 | ||||||
Sales and marketing expenses | 1,620 | 1,856 | 3,253 | 3,612 | ||||||
Margin | [3] | 5,576 | 5,112 | 10,819 | 10,043 | |||||
Operating Segments [Member] | Hardware [Member] | ||||||||||
Segment reporting information [Line Items] | ||||||||||
Revenues | 844 | 871 | 1,658 | 1,686 | ||||||
Hardware products and support expenses | 236 | 277 | 475 | 541 | ||||||
Sales and marketing expenses | 94 | 114 | 192 | 231 | ||||||
Margin | [3] | 514 | 480 | 991 | 914 | |||||
Operating Segments [Member] | Services [Member] | ||||||||||
Segment reporting information [Line Items] | ||||||||||
Revenues | 752 | 806 | 1,472 | 1,593 | ||||||
Services expenses | 595 | 700 | 1,180 | 1,365 | ||||||
Margin | [3] | $ 157 | $ 106 | $ 292 | $ 228 | |||||
|
SEGMENT INFORMATION RECONCILIATION (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|---|
Nov. 30, 2020 |
Nov. 30, 2019 |
Nov. 30, 2020 |
Nov. 30, 2019 |
|||||||
Reconciliation of Operating Segment Revenues to Revenues [Abstract] | ||||||||||
Total revenues | $ 9,800 | $ 9,614 | $ 19,167 | $ 18,832 | ||||||
Reconciliation of Total Operating Segment Margin to Income Before Provision for Income Taxes [Abstract] | ||||||||||
Total margin for operating segments | 3,583 | 3,183 | 6,794 | 6,060 | ||||||
Total revenues | 9,800 | 9,614 | 19,167 | 18,832 | ||||||
Research and development | (1,601) | (1,531) | (3,190) | (3,088) | ||||||
General and administrative | (324) | (323) | (619) | (615) | ||||||
Amortization of intangible assets | (345) | (407) | (690) | (821) | ||||||
Acquisition related and other | (76) | (12) | (95) | (37) | ||||||
Restructuring | (96) | (42) | (270) | (120) | ||||||
Stock-based compensation for operating segments | (133) | (84) | (249) | (220) | ||||||
Expense allocations and other, net | (89) | (115) | (194) | (221) | ||||||
Interest expense | (600) | (465) | (1,214) | (959) | ||||||
Non-operating (expenses) income, net | (11) | 92 | (13) | 191 | ||||||
Income before provision for income taxes | 2,972 | 2,810 | 5,567 | 5,292 | ||||||
Operating Segments [Member] | ||||||||||
Reconciliation of Operating Segment Revenues to Revenues [Abstract] | ||||||||||
Total revenues | [1] | 9,800 | 9,615 | 19,168 | 18,835 | |||||
Reconciliation of Total Operating Segment Margin to Income Before Provision for Income Taxes [Abstract] | ||||||||||
Total margin for operating segments | [2] | 6,247 | 5,698 | 12,102 | 11,185 | |||||
Total revenues | [1] | 9,800 | 9,615 | 19,168 | 18,835 | |||||
Cloud and license revenues [Member] | ||||||||||
Reconciliation of Operating Segment Revenues to Revenues [Abstract] | ||||||||||
Total revenues | [3] | 0 | (1) | (1) | (3) | |||||
Reconciliation of Total Operating Segment Margin to Income Before Provision for Income Taxes [Abstract] | ||||||||||
Total revenues | [3] | $ 0 | $ (1) | $ (1) | $ (3) | |||||
|
SUMMARY OF TOTAL REVENUES BY GEOGRAPHIC REGION (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||||
---|---|---|---|---|---|---|
Nov. 30, 2020 |
Nov. 30, 2019 |
Nov. 30, 2020 |
Nov. 30, 2019 |
|||
Disaggregation of Revenue [Line Items] | ||||||
Total revenues | $ 9,800 | $ 9,614 | $ 19,167 | $ 18,832 | ||
Americas [Member] | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Total revenues | 5,259 | 5,304 | 10,327 | 10,454 | ||
EMEA [Member] | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Total revenues | [1] | 2,852 | 2,695 | 5,590 | 5,248 | |
Asia Pacific [Member] | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Total revenues | $ 1,689 | $ 1,615 | $ 3,250 | $ 3,130 | ||
|
SUMMARY OF CLOUD SERVICES AND LICENSE SUPPORT REVENUES BY ECOSYSTEMS (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Nov. 30, 2020 |
Nov. 30, 2019 |
Nov. 30, 2020 |
Nov. 30, 2019 |
|
Disaggregation of Revenue [Line Items] | ||||
Total revenues | $ 9,800 | $ 9,614 | $ 19,167 | $ 18,832 |
Applications Cloud Services and License Support [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 2,901 | 2,753 | 5,717 | 5,457 |
Infrastructure Cloud Services and License Support [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 4,211 | 4,058 | 8,342 | 8,159 |
Cloud services and license support [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | $ 7,112 | $ 6,811 | $ 14,059 | $ 13,616 |
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions |
3 Months Ended | 6 Months Ended | ||||
---|---|---|---|---|---|---|
Nov. 30, 2020 |
Nov. 30, 2019 |
Nov. 30, 2020 |
Nov. 30, 2019 |
|||
Earnings Per Share [Abstract] | ||||||
Net income | $ 2,442 | $ 2,311 | $ 4,693 | $ 4,448 | ||
Weighted average common shares outstanding | 2,977 | 3,245 | 3,009 | 3,281 | ||
Dilutive effect of employee stock plans | 69 | 86 | 67 | 89 | ||
Dilutive weighted average common shares outstanding | 3,046 | 3,331 | 3,076 | 3,370 | ||
Basic earnings per share | $ 0.82 | $ 0.71 | $ 1.56 | $ 1.36 | ||
Diluted earnings per share | $ 0.80 | $ 0.69 | $ 1.53 | $ 1.32 | ||
Shares subject to anti-dilutive restricted stock-based awards and stock options excluded from calculation | [1] | 36 | 55 | 36 | 55 | |
|
LEGAL PROCEEDINGS (Details) |
6 Months Ended | ||
---|---|---|---|
Jul. 08, 2019
Claim
|
Jun. 30, 2016
USD ($)
|
Nov. 30, 2020
USD ($)
|
|
Legal Proceedings [Line Items] | |||
Plaintiffs claim alleged actions described date | Aug. 10, 2018 | ||
Number of derivative action filed with plaintiffs | Claim | 2 | ||
Hewlett-Packard Litigation [Member] | |||
Legal Proceedings [Line Items] | |||
Damages awarded, value | $ 3,000,000,000.0 | ||
Damages paid, value | $ 0 |