Oracle 2015 Annual Report Download - page 133

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Table of Contents
ORACLE CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
May 31, 2016
segment revenues to our total revenues as reported in our consolidated statements of operations. Our cloud software and on-premise software 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 IT expenses. Additionally, the margins reported do not reflect amortization of intangible assets, acquisition related and other expenses, restructuring expenses, stock-based compensation,
interest expense or certain other income (expense), net.
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:
Year Ended May 31,
(in millions) 2016 2015 2014
Total revenues for operating segments $ 37,057 $ 38,253 $ 38,306
Cloud software as a service and platform as a service revenues (7) (12) (17)
Software license updates and product support revenues (2) (11) (3)
Hardware support revenues (1) (4) (11)
Total revenues $ 37,047 $ 38,226 $ 38,275
Total margin for operating segments $ 22,904 $ 24,221 $ 24,647
Cloud software as a service and platform as a service revenues (7) (12) (17)
Software license updates and product support revenues (2) (11) (3)
Hardware support revenues (1) (4) (11)
Product development (4,978) (4,812) (4,590)
Marketing and partner program expenses (505) (520) (564)
Corporate, general and administrative and information technology expenses (1,635) (1,496) (1,384)
Amortization of intangible assets (1,638) (2,149) (2,300)
Acquisition related and other (42) (211) (41)
Restructuring (458) (207) (183)
Stock-based compensation (1,034) (928) (795)
Interest expense (1,467) (1,143) (914)
Non-operating income (expense), net 305 106 (141)
Income before provision for income taxes $ 11,442 $ 12,834 $ 13,704
Cloud SaaS and PaaS revenues, software license updates and product support revenues and hardware support revenues for management reporting included revenues that would have otherwise been recorded
by our acquired businesses as independent entities but were not recognized in our consolidated statements of operations for the periods presented due to business combination accounting requirements.
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