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Table of Contents
ORACLE CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
May 31, 2014
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:
130
the accompanying consolidated statements of operations in the amounts of $17 million, $45 million and $22 million for fiscal 2014, 2013 and 2012, respectively. Software license updates
and product support revenues for management reporting included revenues related to software support contracts that would have otherwise been recorded by the acquired businesses as
independent entities but were not recognized in the accompanying consolidated statements of operations in the amounts of $3 million, $14 million and $48 million for fiscal 2014, 2013
and 2012, respectively. In addition, we did not recognize hardware systems support revenues related to hardware systems support contracts that would have otherwise been recorded by
the acquired businesses as independent entities in the amounts of $11 million, $14 million and $30 million for fiscal 2014, 2013 and 2012, respectively. See Note 10 for an explanation of
these adjustments and the table below for a reconciliation of our total operating segment revenues to our total revenues. Our new software license, cloud IaaS and services revenues for
management reporting also differ from amounts reported per our consolidated statements of operations for the periods presented due to certain insignificant reclassifications between
these lines for management reporting purposes.
The margins reported reflect only the direct controllable costs of each line of business and do not include allocations of product development, marketing and partner programs, and
corporate, general and administrative and information technology expenses. Additionally, the margins do not reflect amortization of intangible assets, acquisition related and other
expenses, restructuring expenses, stock
-
based compensation, interest expense or certain other expenses, net.
Year Ended May 31,
(in millions)
2014
2013
2012
Total revenues for operating segments
$
38,306
$
37,253
$
37,221
Cloud software
-
as
-
a
-
service and platform
-
as
-
a
-
service revenues
(17
)
(45
)
(22
)
Software license updates and product support revenues
(3
)
(14
)
(48
)
Hardware systems support revenues
(11
)
(14
)
(30
)
Total revenues
$
38,275
$
37,180
$
37,121
Total margin for operating segments
$
24,647
$
23,945
$
23,340
Cloud software
-
as
-
a
-
service and platform
-
as
-
a
-
service revenues
(17
)
(45
)
(22
)
Software license updates and product support revenues
(3
)
(14
)
(48
)
Hardware systems support revenues
(11
)
(14
)
(30
)
Product development
(4,590
)
(4,321
)
(4,050
)
Marketing and partner program expenses
(564
)
(591
)
(581
)
Corporate, general and administrative and information technology expenses
(1,384
)
(1,421
)
(1,496
)
Amortization of intangible assets
(2,300
)
(2,385
)
(2,430
)
Acquisition related and other
(41
)
604
(56
)
Restructuring
(183
)
(352
)
(295
)
Stock
-
based compensation
(795
)
(722
)
(626
)
Interest expense
(914
)
(797
)
(766
)
Non
-
operating (expense) income, net
(141
)
11
22
Income before provision for income taxes
$
13,704
$
13,898
$
12,962
New software licenses and cloud software subscriptions revenues for management reporting included revenues related to cloud SaaS and PaaS contracts that would have otherwise been
recorded by the acquired businesses as independent entities but were not recognized in the accompanying consolidated statements of operations in the amounts of $17 million, $45 million
and $22 million for fiscal 2014, 2013 and 2012, respectively. Software license updates and product support revenues for management reporting included revenues related to software
support contracts that would have otherwise been recorded by the acquired businesses as independent entities but were not recognized in the accompanying consolidated statements of
operations in the amounts of $3 million, $14 million and $48 million for fiscal 2014, 2013 and 2012, respectively. In addition, we did not recognize hardware systems support revenues
related to hardware systems support contracts that would have otherwise been recorded by the acquired businesses as independent entities in the amounts of $11 million, $14 million and
$30 million for fiscal 2014, 2013 and 2012, respectively. See Note 10 for an explanation of these adjustments.
(2)
(1)
(1)
(1)
(1)
(1)
(1)
(1)