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Table of Contents
ORACLE CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
May 31, 2016
Year Ended May 31,
(in millions) 2016 2015 2014
Cloud software and on-premise software:
Revenues $ 9,488 $ 10,025 $ 10,542
Cloud software as a service and platform as a service expenses 1,116 742 437
Sales and distribution expenses 6,010 5,812 5,666
Margin $ 2,362 $ 3,471 $ 4,439
Cloud infrastructure as a service:
Revenues $ 646 $ 608 $ 456
Cloud infrastructure as a service expenses 352 329 304
Sales and distribution expenses 74 89 61
Margin $ 220 $ 190 $ 91
Software license updates and product support:
Revenues $ 18,863 $ 18,858 $ 18,209
Software license updates and product support expenses 1,077 1,130 1,111
Margin $ 17,786 $ 17,728 $ 17,098
Total cloud and on-premise software business:
Revenues $ 28,997 $ 29,491 $ 29,207
Expenses 8,629 8,102 7,579
Margin $ 20,368 $ 21,389 $ 21,628
Hardware products:
Revenues $ 2,471 $ 2,825 $ 2,976
Hardware products expenses 1,364 1,465 1,516
Sales and distribution expenses 850 864 940
Margin $ 257 $ 496 $ 520
Hardware support:
Revenues $ 2,198 $ 2,384 $ 2,407
Hardware support expenses 665 783 802
Margin $ 1,533 $ 1,601 $ 1,605
Total hardware business:
Revenues $ 4,669 $ 5,209 $ 5,383
Expenses 2,879 3,112 3,258
Margin $ 1,790 $ 2,097 $ 2,125
Total services business:
Revenues $ 3,391 $ 3,553 $ 3,716
Services expenses 2,645 2,818 2,822
Margin $ 746 $ 735 $ 894
Totals:
Revenues $ 37,057 $ 38,253 $ 38,306
Expenses 14,153 14,032 13,659
Margin $ 22,904 $ 24,221 $ 24,647
Cloud software and on-premise software, software license updates and product support and hardware support revenues for management reporting included revenues related to cloud SaaS and PaaS, software
support and hardware support contracts that would have otherwise been recorded by the acquired businesses as independent entities but were not recognized in our consolidated statements of operations for
the periods presented. See Note 10 for an explanation of these adjustments and the table below for a reconciliation of our total operating
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