Oracle (ORCL) 10-Q 17 Mar 17 2017 Q3 Quarterly report Financial data

DOCUMENT AND ENTITY INFORMATION

DOCUMENT AND ENTITY INFORMATION - shares	9 Months Ended
	Feb. 28, 2017	Mar. 13, 2017
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Feb. 28, 2017
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2,017
Trading Symbol	ORCL
Entity Registrant Name	Oracle Corporation
Entity Central Index Key	1,341,439
Current Fiscal Year End Date	--05-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding (in shares)		4,114,684,000

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions	Feb. 28, 2017	May 31, 2016
Current assets:
Cash and cash equivalents	$ 19,748	$ 20,152
Marketable securities	39,604	35,973
Trade receivables, net of allowances for doubtful accounts of $300 and $327 as of February 28, 2017 and May 31, 2016, respectively	3,721	5,385
Inventories	391	212
Prepaid expenses and other current assets	2,547	2,591
Total current assets	66,011	64,313
Non-current assets:
Property, plant and equipment, net	5,070	4,000
Intangible assets, net	7,788	4,943
Goodwill, net	42,504	34,590
Deferred tax assets	918	1,291
Other assets	3,091	3,043
Total non-current assets	59,371	47,867
Total assets	125,382	112,180
Current liabilities:
Notes payable and other borrowings, current	3,498	3,750
Accounts payable	481	504
Accrued compensation and related benefits	1,516	1,966
Deferred revenues	7,388	7,655
Other current liabilities	2,907	3,333
Total current liabilities	15,790	17,208
Non-current liabilities:
Notes payable and other borrowings, non-current	50,469	40,105
Income taxes payable	5,162	4,908
Other non-current liabilities	2,938	2,169
Total non-current liabilities	58,569	47,182
Commitments and contingencies
Oracle Corporation stockholders' equity:
Preferred stock, $0.01 par value—authorized: 1.0 shares; outstanding: none	0	0
Common stock, $0.01 par value and additional paid in capital—authorized: 11,000 shares; outstanding: 4,115 shares and 4,131 shares as of February 28, 2017 and May 31, 2016, respectively	25,970	24,217
Retained earnings	25,576	23,888
Accumulated other comprehensive loss	(931)	(816)
Total Oracle Corporation stockholders' equity	50,615	47,289
Noncontrolling interests	408	501
Total equity	51,023	47,790
Total liabilities and equity	$ 125,382	$ 112,180

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS PARENTHETICAL - USD ($) shares in Millions, $ in Millions	Feb. 28, 2017	May 31, 2016
Statement Of Financial Position [Abstract]
Allowance for doubtful accounts receivable	$ 300	$ 327
Preferred stock par value per share	$ 0.01	$ 0.01
Preferred stock shares authorized	1	1
Preferred stock shares outstanding	0	0
Common stock par value per share	$ 0.01	$ 0.01
Common stock shares authorized	11,000	11,000
Common stock shares outstanding	4,115	4,131

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Millions, $ in Millions		3 Months Ended		9 Months Ended
		Feb. 28, 2017	Feb. 29, 2016	Feb. 28, 2017	Feb. 29, 2016
Revenues:
Cloud software as a service and platform as a service		$ 1,011	$ 583	$ 2,686	$ 1,517
Cloud infrastructure as a service		178	152	525	477
Total cloud revenues		1,189	735	3,211	1,994
New software licenses		1,414	1,680	3,792	4,509
Software license updates and product support		4,762	4,669	14,331	14,048
Total on-premise software revenues		6,176	6,349	18,123	18,557
Total cloud and on-premise software revenues		7,365	7,084	21,334	20,551
Hardware products		520	604	1,478	1,746
Hardware support		508	531	1,559	1,639
Total hardware revenues		1,028	1,135	3,037	3,385
Total services revenues		812	793	2,464	2,517
Total revenues		9,205	9,012	26,835	26,453
Operating expenses:
Sales and marketing	[1]	2,004	1,903	5,883	5,578
Cloud software as a service and platform as a service	[1]	380	292	1,060	847
Cloud infrastructure as a service	[1]	125	88	333	268
Software license updates and product support	[1]	270	293	786	877
Hardware products	[1]	290	338	775	967
Hardware support	[1]	147	171	439	526
Services	[1]	680	657	2,073	2,058
Research and development		1,521	1,419	4,551	4,253
General and administrative		241	290	859	832
Amortization of intangible assets		397	408	1,010	1,283
Acquisition related and other		30	11	84	35
Restructuring		161	115	346	293
Total operating expenses		6,246	5,985	18,199	17,817
Operating income		2,959	3,027	8,636	8,636
Interest expense		(450)	(360)	(1,317)	(1,105)
Non-operating income, net		189	65	437	179
Income before provision for income taxes		2,698	2,732	7,756	7,710
Provision for income taxes		459	590	1,653	1,623
Net income		$ 2,239	$ 2,142	$ 6,103	$ 6,087
Earnings per share:
Basic (in dollars per share)		$ 0.55	$ 0.51	$ 1.49	$ 1.43
Diluted (in dollars per share)		$ 0.53	$ 0.50	$ 1.45	$ 1.41
Weighted average common shares outstanding:
Basic (in shares)		4,107	4,182	4,110	4,246
Diluted (in shares)		4,204	4,256	4,207	4,328
Dividends declared per common share (in dollars per share)		$ 0.15	$ 0.15	$ 0.45	$ 0.45
[1]	Exclusive of amortization of intangible assets, which is shown separately.

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Feb. 28, 2017	Feb. 29, 2016	Feb. 28, 2017	Feb. 29, 2016
Net income	$ 2,239	$ 2,142	$ 6,103	$ 6,087
Portion Attributable to Parent [Member]
Net income	2,239	2,142	6,103	6,087
Other comprehensive income (loss), net of tax:
Net foreign currency translation gains (losses)	32	142	(39)	9
Net unrealized gains on defined benefit plans	9	5	16	25
Net unrealized gains (losses) on marketable securities	96	69	(117)	(47)
Net unrealized gains (losses) on cash flow hedges	4	(23)	25	(37)
Total other comprehensive income (loss), net	141	193	(115)	(50)
Comprehensive income	$ 2,380	$ 2,335	$ 5,988	$ 6,037

CONDENSED CONSOLIDATED STATEME6

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions	9 Months Ended
	Feb. 28, 2017	Feb. 29, 2016
Cash flows from operating activities:
Net income	$ 6,103	$ 6,087
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	722	643
Amortization of intangible assets	1,010	1,283
Deferred income taxes	111	(143)
Stock-based compensation	1,017	768
Tax benefits on the vesting of restricted stock-based awards and exercise of stock options	378	188
Other, net	96	116
Changes in operating assets and liabilities, net of effects from acquisitions:
Decrease in trade receivables, net	1,673	1,746
(Increase) decrease in inventories	(178)	87
Decrease in prepaid expenses and other assets	308	95
Decrease in accounts payable and other liabilities	(862)	(890)
Decrease in income taxes payable	(388)	(112)
(Decrease) increase in deferred revenues	(330)	24
Net cash provided by operating activities	9,660	9,892
Cash flows from investing activities:
Purchases of marketable securities and other investments	(15,571)	(21,549)
Proceeds from maturities and sales of marketable securities and other investments	11,825	18,845
Acquisitions, net of cash acquired	(10,406)	(313)
Capital expenditures	(1,496)	(1,009)
Net cash used for investing activities	(15,648)	(4,026)
Cash flows from financing activities:
Payments for repurchases of common stock	(3,067)	(8,467)
Proceeds from issuances of common stock	1,309	802
Shares repurchased for tax withholdings upon vesting of restricted stock-based awards	(237)	(82)
Payments of dividends to stockholders	(1,844)	(1,918)
Proceeds from borrowings, net of issuance costs	13,932	0
Repayments of borrowings	(4,094)	(2,000)
Distributions to noncontrolling interests	(200)	(85)
Net cash provided by (used for) financing activities	5,799	(11,750)
Effect of exchange rate changes on cash and cash equivalents	(215)	(249)
Net decrease in cash and cash equivalents	(404)	(6,133)
Cash and cash equivalents at beginning of period	20,152	21,716
Cash and cash equivalents at end of period	19,748	15,583
Non-cash investing and financing transactions:
Fair values of restricted stock-based awards and stock options assumed in connection with acquisitions	90	0
(Decrease) increase in unsettled repurchases of common stock	(69)	3
Increase (decrease) in unsettled investment purchases	$ 5	$ (148)

BASIS OF PRESENTATION AND RECEN

BASIS OF PRESENTATION AND RECENT ACCOUNTING PRONOUNCEMENTS	9 Months Ended
	Feb. 28, 2017
Organization Consolidation And Presentation Of Financial Statements [Abstract]
BASIS OF PRESENTATION AND RECENT ACCOUNTING PRONOUNCEMENTS	1. BASIS OF PRESENTATION AND RECENT ACCOUNTING PRONOUNCEMENTS 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 financial statements and the notes thereto included in our Annual Report on Form 10-K for the fiscal year ended May 31, 2016. 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, 2017. Certain prior year balances have been reclassified to conform to the current year presentation. Such reclassifications did not affect total revenues, operating income or net income. During the first nine months of fiscal 2017, we adopted Accounting Standards Update (ASU) 2016-09, Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting In addition, in fiscal 2017, we also adopted the following Accounting Standards Updates, none of which had a material impact to our reported financial position or results of operations and cash flows: • ASU 2016-17, Consolidation (Topic 810): Interests Held through Related Parties That Are under Common Control • ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash • ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments There have been no other significant changes in our reported financial position or results of operations and cash flows as a result of our adoption of new accounting pronouncements or changes to our significant accounting policies that were disclosed in our Annual Report on Form 10-K for the fiscal year ended May 31, 2016. 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 February 28, 2017 and May 31, 2016 and our condensed consolidated statements of cash flows for the nine months ended February 28, 2017 and February 29, 2016 was nominal. Acquisition Related and Other Expenses Acquisition related and other expenses consist of personnel related costs and stock-based compensation for transitional and certain other employees, integration related professional services, certain business combination adjustments including certain adjustments after the measurement period has ended and certain other operating items, net. Three Months Ended Nine Months Ended (in millions) February 28, 2017 February 29, 2016 February 28, 2017 February 29, 2016 Transitional and other employee related costs $ 15 $ 8 $ 31 $ 40 Stock-based compensation 22 — 33 3 Professional fees and other, net (2 ) 1 26 10 Business combination adjustments, net (5 ) 2 (6 ) (18 ) Total acquisition related and other expenses $ 30 $ 11 $ 84 $ 35 Included in acquisition related and other expenses during the nine months ended February 29, 2016 is an acquisition related benefit of $19 million. Non-Operating Income, net Non-operating income, net consists primarily of interest income, net foreign currency exchange gains (losses), the noncontrolling interests in the net profits of our majority-owned subsidiaries (primarily Oracle Financial Services Software Limited and Oracle Japan) and net other income (losses), including net realized gains and losses related to all of our investments and net unrealized gains and losses related to the small portion of our investment portfolio that we classify as trading. Three Months Ended Nine Months Ended (in millions) February 28, 2017 February 29, 2016 February 28, 2017 February 29, 2016 Interest income $ 197 $ 141 $ 578 $ 382 Foreign currency losses, net (20 ) (15 ) (102 ) (68 ) Noncontrolling interests in income (20 ) (36 ) (95 ) (95 ) Other income (loss), net 32 (25 ) 56 (40 ) Total non-operating income, net $ 189 $ 65 $ 437 $ 179 Sales of Financing Receivables We offer certain of our customers the option to acquire our software products, hardware products 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 $296 million and $1.3 billion for the three and nine months ended February 28, 2017, respectively, and $304 million and $1.5 billion for the three and nine months ended February 29, 2016, respectively. Recent Accounting Pronouncements Goodwill Impairment: In January 2017, the Financial Accounting Standards Board (FASB) issued ASU 2017-04, Intangibles–Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment (ASU 2017-04), which eliminates step two from the goodwill impairment test. Under the amendments in ASU 2017-04, an entity should recognize an impairment charge for the amount by which the carrying amount of a reporting unit exceeds its fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. ASU 2017-04 is effective for us in our first quarter of fiscal 2021 on a prospective basis, and earlier adoption is permitted for goodwill impairment tests performed on testing dates after January 1, 2017. We are currently evaluating the impact of our pending adoption of ASU 2017-04 on our consolidated financial statements. Business Combinations: In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business (ASU 2017-01), which provides guidance for evaluating whether certain transactions are to be accounted for as an acquisition (or disposal) of either a business or an asset. ASU 2017-01 is effective for us in our first quarter of fiscal 2019 on a prospective basis, and earlier adoption is permitted for transactions occurring subsequent to the issuance of ASU 2017-01 and not reported in the financial statements. We are currently evaluating the impact of our pending adoption of ASU 2017-01 on our consolidated financial statements. Income Taxes: In October 2016, the FASB issued ASU 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory (ASU 2016-16), which changes the timing of when certain intercompany transactions are recognized within the provision for income taxes. ASU 2016-16 is effective for us in our first quarter of fiscal 2019 on a modified retrospective basis, and earlier adoption is permitted. We are currently evaluating the impact of our pending adoption of ASU 2016-16 on our consolidated financial statements. Financial Instruments: In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (ASU 2016-13), which requires measurement and recognition of expected credit losses for financial assets held. ASU 2016-13 is effective for us in our first quarter of fiscal 2021, and earlier adoption is permitted beginning in the first quarter of fiscal 2020. We are currently evaluating the impact of our pending adoption of ASU 2016-13 on our consolidated financial statements. In January 2016, the FASB issued ASU 2016-01, Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities Leases: In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) (ASU 2016-02). ASU 2016-02 requires companies to generally recognize on the balance sheet operating and financing lease liabilities and corresponding right-of-use assets. ASU 2016-02 is effective for us in our first quarter of fiscal 2020 on a modified retrospective basis, and earlier adoption is permitted. We are currently evaluating the impact of our pending adoption of ASU 2016-02 on our consolidated financial statements, and we currently expect that most of our operating lease commitments will be subject to the new standard and recognized as operating lease liabilities and right-of-use assets upon our adoption of ASU 2016-02, which will increase our total assets and total liabilities that we report relative to such amounts prior to adoption. Revenue Recognition: In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers: Topic 606 and issued subsequent amendments to the initial guidance in August 2015, March 2016, April 2016, May 2016 and December 2016 within ASU 2015-14, ASU 2016-08, ASU 2016-10, ASU 2016-12 and ASU 2016-20, respectively (ASU 2014-09, ASU 2015-14, ASU 2016-08, ASU 2016-10, ASU 2016-12 and ASU 2016-20, respectively, and collectively Topic 606). Topic 606 supersedes nearly all existing revenue recognition guidance under GAAP. The core principle of Topic 606 is to recognize revenues when promised goods or services are transferred to customers in an amount that reflects the consideration that is expected to be received for those goods or services. Topic 606 defines a five-step process to achieve this core principle and, in doing so, it is possible more judgment and estimates may be required within the revenue recognition process than are required under existing GAAP, including identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation, among others. Topic 606 also provides guidance on the recognition of costs related to obtaining customer contracts. Topic 606 is effective for us as of either our first quarter of fiscal 2018 or our first quarter of fiscal 2019 using either of two methods: (1) retrospective application of Topic 606 to each prior reporting period presented with the option to elect certain practical expedients as defined within Topic 606 or (2) retrospective application of Topic 606 with the cumulative effect of initially applying Topic 606 recognized at the date of initial application and providing certain additional disclosures as defined per Topic 606. Preliminarily, we plan to adopt Topic 606 in the first quarter of fiscal 2019 pursuant to the aforementioned adoption method (1) and we do not believe there will be a material impact to our revenues upon adoption. We are continuing to evaluate the impact to our revenues related to our pending adoption of Topic 606 and our preliminary assessments are subject to change. We are also continuing to evaluate the provisions of Topic 606 related to costs for obtaining customer contracts.

ACQUISITIONS

ACQUISITIONS	9 Months Ended
	Feb. 28, 2017
Business Combinations [Abstract]
ACQUISITIONS	2. ACQUISITIONS Acquisition of NetSuite Inc., a Related Party On July 28, 2016, we entered into an Agreement and Plan of Merger (Merger Agreement) with NetSuite Inc. (NetSuite), a provider of cloud-based enterprise resource planning (ERP) software and related applications and, as described further below, a related party to Oracle. Pursuant to the Merger Agreement, we commenced a tender offer on August 18, 2016 to purchase all of the issued and outstanding shares of NetSuite common stock (NetSuite Shares) at a purchase price of $109.00 per share, net to the seller in cash, without interest thereon, based upon the terms and subject to the conditions set forth in the Offer to Purchase dated August 18, 2016, and in the related Letter of Transmittal. On November 7, 2016, pursuant to the terms of the tender offer and applicable Delaware law, we accepted and paid for the substantial majority of outstanding NetSuite Shares and effectuated the merger of NetSuite with and into a wholly-owned subsidiary of Oracle and NetSuite became an indirect, wholly-owned subsidiary of Oracle. Pursuant to the Merger Agreement, NetSuite Shares that remained outstanding and were not acquired by us were converted into, and cancelled in exchange for, the right to receive $109.00 per share in cash. The unvested equity awards to acquire NetSuite Shares that were outstanding immediately prior to the conclusion of the merger were converted into equity awards denominated in shares of Oracle common stock based on formulas contained in the Merger Agreement. We acquired NetSuite to, among other things, expand our cloud software as a service offerings with a complementary set of cloud ERP and related cloud software applications for customers. We have included the financial results of NetSuite in our consolidated financial statements from the date of acquisition. Lawrence J. Ellison, Oracle’s Chairman of the Board and Chief Technology Officer and Oracle’s largest stockholder, is an affiliate of NetSuite’s largest stockholder, NetSuite Restricted Holdings LLC (a single member LLC investment entity whose interests are beneficially owned by a trust controlled by Mr. Ellison), which owned approximately 40% of the issued and outstanding NetSuite Shares immediately prior to the conclusion of the merger. Oracle’s Board of Directors appointed a Special Committee (comprised solely of directors who are independent of the management of Oracle, Mr. Ellison, his family members and any affiliated entities, and NetSuite) to which it delegated the full and exclusive power, authority and discretion of the Board to evaluate, assess, and approve the NetSuite transaction on its behalf. The Special Committee engaged its own independent legal counsel and its own independent financial advisor to advise it on the transaction. The financial advisor provided the Special Committee with a fairness opinion in connection with the transaction. After extensive deliberations, the Special Committee concluded that the transaction terms were fair to Oracle and the transaction was in the best interests of Oracle and its stockholders. The Special Committee unanimously approved the transaction on behalf of Oracle and the Board. The total preliminary purchase price for NetSuite was approximately $9.1 billion, which consisted of approximately $9.0 billion in cash and $78 million for the fair values of restricted stock-based awards and stock options assumed. Pursuant to our business combinations accounting policy, we estimated the preliminary fair values of net tangible and intangible assets acquired, and the excess of the consideration transferred over the aggregate of such fair values was recorded as goodwill. The preliminary fair values of net tangible assets and intangible assets acquired were based on preliminary valuations, and our estimates and assumptions are subject to change within the measurement period (up to one year from the acquisition date). The primary areas that remain preliminary relate to the fair values of intangible assets acquired, certain tangible assets and liabilities acquired, certain legal matters, income and non-income based taxes and residual goodwill. We expect to continue to obtain information to assist us in determining the fair values of the net assets acquired during the measurement period. The following table summarizes the estimated preliminary fair values of net tangible liabilities and intangible assets acquired from NetSuite: (in millions) Cash and cash equivalents $ 481 Trade receivables, net 32 Other assets 111 Intangible assets 3,157 Goodwill 6,713 Accounts payable and other liabilities (132 ) Deferred revenues (163 ) Debt (342 ) Deferred tax liabilities, net (777 ) Total $ 9,080 We do not expect the goodwill recognized as a part of the NetSuite acquisition to be deductible for income tax purposes. Other Fiscal 2017 and Fiscal 2016 Acquisitions During the first nine months of fiscal 2017, we acquired certain companies and purchased certain technology and development assets primarily to expand our products and services offerings. These acquisitions were not individually or in the aggregate significant. We have included the financial results of the acquired companies in our consolidated financial statements from their respective acquisition dates, and the results from each of these companies were not individually material to our consolidated financial statements. In the aggregate, the total preliminary purchase price for these acquisitions was approximately $2.1 billion, which consisted of approximately $2.1 billion in cash and $12 million for the fair values of restricted stock-based awards and stock options assumed. We preliminarily recorded $196 million of net tangible assets and $698 million of identifiable intangible assets, based on their estimated fair values, and $1.2 billion of residual goodwill. The preliminary fair value estimates for the assets acquired and liabilities assumed for our acquisitions completed during the first nine months of fiscal 2017 were based upon preliminary calculations and valuations, and our estimates and assumptions for these acquisitions are subject to change as we obtain additional information during the respective measurement periods (up to one year from the respective acquisition dates). The primary areas of those preliminary estimates that are not yet finalized relate to certain tangible assets and liabilities acquired, identifiable intangible assets, certain legal matters, income and non-income based taxes and residual goodwill. We also have entered into certain non-material agreements to acquire certain companies and expect these proposed acquisitions to close during the fourth quarter of fiscal 2017. During fiscal 2016, 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. Unaudited Pro Forma Financial Information The unaudited pro forma financial information in the table below summarizes the combined results of operations for Oracle, NetSuite and certain other companies that we acquired since the beginning of fiscal 2016 that were considered relevant for the purposes of unaudited pro forma financial information disclosure as if the companies were combined as of the beginning of fiscal 2016. The unaudited pro forma financial information for all periods presented included the business combination accounting effects resulting from these acquisitions, including amortization charges from acquired intangible assets (certain of which are preliminary), stock-based compensation charges for unvested restricted stock-based awards and stock options assumed, if any, and the related tax effects as though the aforementioned companies were combined as of the beginning of fiscal 2016. The unaudited pro forma financial information as presented below is for informational purposes only and is not necessarily indicative of the results of operations that would have been achieved if the acquisitions had taken place at the beginning of fiscal 2016. The unaudited pro forma financial information for the three and nine months ended February 28, 2017 combined the historical results of Oracle for the three and nine months ended February 28, 2017, the historical results of NetSuite for the six month period ended September 30, 2016 (adjusted due to differences in reporting periods and considering the date we acquired NetSuite) and the historical results of certain other companies that we acquired since the beginning of fiscal 2017 based upon their respective previous reporting periods and the dates these companies were acquired by us, and the effects of the pro forma adjustments listed above. The unaudited pro forma financial information for the three and nine months ended February 29, 2016 combined the historical results of Oracle for the three and nine month periods ended February 29, 2016, the historical results of NetSuite for the three and nine months ended December 31, 2015 (adjusted due to differences in reporting periods) and the historical results of certain other companies that we acquired since the beginning of fiscal 2016 based upon their respective previous reporting periods and the dates these companies were acquired by us, and the effects of the pro forma adjustments listed above. The unaudited pro forma financial information was as follows: Three Months Ended Nine Months Ended (in millions, except per share data) February 28, 2017 February 29, 2016 February 28, 2017 February 29, 2016 Total revenues $ 9,221 $ 9,306 $ 27,313 $ 27,295 Net income $ 2,228 $ 1,932 $ 5,797 $ 5,454 Basic earnings per share $ 0.54 $ 0.46 $ 1.41 $ 1.28 Diluted earnings per share $ 0.53 $ 0.45 $ 1.38 $ 1.26

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	9 Months Ended
	Feb. 28, 2017
Fair Value Disclosures [Abstract]
FAIR VALUE MEASUREMENTS	3. FAIR VALUE MEASUREMENTS We perform fair value measurements in accordance with FASB Accounting Standards Codification (ASC) 820, Fair Value Measurement 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: • Level 1: quoted prices in active markets for identical assets or liabilities; • Level 2: inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices in active markets for similar assets or liabilities, quoted prices for identical or similar assets or liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; or • Level 3: unobservable inputs that are supported by little or no market activity and that are significant to the fair values of the assets or liabilities. Assets and Liabilities Measured at Fair Value on a Recurring Basis Our assets and liabilities measured at fair value on a recurring basis, excluding accrued interest components, consisted of the following (Level 1 and Level 2 inputs are defined above): February 28, 2017 May 31, 2016 Fair Value Measurements Using Input Types Fair Value Measurements Using Input Types (in millions) Level 1 Level 2 Total Level 1 Level 2 Total Assets: Corporate debt securities and other $ 235 $ 38,205 $ 38,440 $ 393 $ 35,095 $ 35,488 Commercial paper debt securities — 4,327 4,327 — 2,155 2,155 Money market funds 2,002 — 2,002 3,750 — 3,750 Derivative financial instruments — 23 23 — 122 122 Total assets $ 2,237 $ 42,555 $ 44,792 $ 4,143 $ 37,372 $ 41,515 Liabilities: Derivative financial instruments $ — $ 262 $ 262 $ — $ 218 $ 218 Our marketable securities investments consist of Tier 1 commercial paper debt securities, corporate debt securities and certain other securities. As of February 28, 2017 and May 31, 2016, approximately 43% and 28%, respectively, of our marketable securities investments mature within one year and 57% and 72%, respectively, mature within one to six years. Our valuation techniques used to measure the fair values of our marketable securities 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, the counterparties to which have high credit ratings, 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 our $54.0 billion and $40.1 billion of borrowings, which consisted primarily of senior notes and the related fair value hedges that were outstanding as of February 28, 2017 and May 31, 2016, respectively, the estimated fair values of senior notes and the related fair value hedges issued by Oracle using Level 2 inputs at February 28, 2017 and May 31, 2016 were $55.8 billion and $43.2 billion, respectively.

INVENTORIES

INVENTORIES	9 Months Ended
	Feb. 28, 2017
Inventory Net [Abstract]
INVENTORIES	4. INVENTORIES Inventories consisted of the following: (in millions) February 28, 2017 May 31, 2016 Raw materials $ 244 $ 95 Work-in-process 46 31 Finished goods 101 86 Total $ 391 $ 212

INTANGIBLE ASSETS AND GOODWILL

INTANGIBLE ASSETS AND GOODWILL	9 Months Ended
	Feb. 28, 2017
Goodwill And Intangible Assets Disclosure [Abstract]
INTANGIBLE ASSETS AND GOODWILL	5. INTANGIBLE ASSETS AND GOODWILL The changes in intangible assets for fiscal 2017 and the net book value of intangible assets as of February 28, 2017 and May 31, 2016 were as follows: Intangible Assets, Gross Accumulated Amortization Intangible Assets, Net Weighted Average (in millions) May 31, 2016 Additions February 28, 2017 May 31, 2016 Expense February 28, 2017 May 31, 2016 February 28, 2017 Useful Life (1) Developed technology $ 3,661 $ 1,645 $ 5,306 $ (1,876 ) $ (462 ) $ (2,338 ) $ 1,785 $ 2,968 7 years SaaS, PaaS and IaaS agreements and related relationships 2,034 2,084 4,118 (704 ) (251 ) (955 ) 1,330 3,163 10 years Software support agreements and related relationships 2,419 — 2,419 (1,287 ) (94 ) (1,381 ) 1,132 1,038 — Other 3,452 126 3,578 (2,756 ) (203 ) (2,959 ) 696 619 9 years Total intangible assets, net $ 11,566 $ 3,855 $ 15,421 $ (6,623 ) $ (1,010 ) $ (7,633 ) $ 4,943 $ 7,788 9 years (1) Represents weighted-average useful lives of intangible assets acquired during fiscal 2017. Total amortization expense related to our intangible assets was $397 million and $1.0 billion, respectively, for the three and nine months ended February 28, 2017, respectively, and $408 million and $1.3 billion for the three and nine months ended February 29, 2016, respectively. As of February 28, 2017, estimated future amortization expenses related to intangible assets were as follows (in millions): Remainder of fiscal 2017 $ 402 Fiscal 2018 1,362 Fiscal 2019 1,248 Fiscal 2020 1,058 Fiscal 2021 883 Fiscal 2022 779 Thereafter 2,056 Total intangible assets, net $ 7,788 The changes in the carrying amounts of goodwill, net, which is generally not deductible for tax purposes, for our operating segments for the nine months ended February 28, 2017 were as follows: (in millions) Cloud Software Software License Updates Hardware Support Consulting Other, net (2) Total Goodwill, net Balances as of May 31, 2016 $ 15,747 $ 14,439 $ 2,367 $ 1,759 $ 278 $ 34,590 Goodwill from acquisitions 863 — — — 7,072 7,935 Goodwill adjustments, net (1) (287 ) (1 ) — (1 ) 268 (21 ) Balances as of February 28, 2017 $ 16,323 $ 14,438 $ 2,367 $ 1,758 $ 7,618 $ 42,504 (1) Pursuant to our business combinations accounting policy, we recorded goodwill adjustments for the effects on goodwill of changes to net assets acquired during the period that such a change is identified, provided that any such change is within the measurement period (up to one year from the date of the acquisition). (2) Represents goodwill allocated to our other operating segments and, as of February 28, 2017, approximately $6.7 billion of NetSuite goodwill that will be allocated based upon the finalization of purchase accounting valuations.

NOTES PAYABLE AND OTHER BORROWI

NOTES PAYABLE AND OTHER BORROWINGS	9 Months Ended
	Feb. 28, 2017
Debt Disclosure [Abstract]
NOTES PAYABLE AND OTHER BORROWINGS	6. NOTES PAYABLE AND OTHER BORROWINGS Senior Notes In July 2016, we issued $14.0 billion, par value, of fixed-rate senior notes comprised of the following as of February 28, 2017: February 28, 2017 (Dollars in millions) Date of Issuance Amount Effective Interest Rate $4,250, 1.90%, due September 2021 July 2016 $ 4,250 1.94% $2,500, 2.40%, due September 2023 July 2016 2,500 2.40% $3,000, 2.65%, due July 2026 July 2016 3,000 2.69% $1,250, 3.85%, due July 2036 July 2016 1,250 3.85% $3,000, 4.00%, due July 2046 July 2016 3,000 4.00% Total fixed rate senior notes $ 14,000 Unamortized discount/issuance costs (63 ) Total fixed rate senior notes, net $ 13,937 We issued the senior notes for general corporate purposes, which may include stock repurchases, payment of cash dividends on our common stock and repayment of indebtedness and future acquisitions. The interest is payable semi-annually. We may redeem some or all of the senior notes of each series prior to their maturity, subject to certain restrictions, and the payment of an applicable make-whole premium in certain instances. The senior notes rank pari passu with any other existing and future unsecured and unsubordinated indebtedness of Oracle Corporation. All existing and future indebtedness and liabilities of the subsidiaries of Oracle Corporation are or will be effectively senior to the senior notes. We were in compliance with all debt-related covenants at February 28, 2017. Other Fiscal 2017 Borrowings Activities In connection with our acquisition of NetSuite in the second quarter of fiscal 2017 (see Note 2 above), we assumed $310 million par value of legacy NetSuite convertible notes (NetSuite Debt), which had a fair value of $342 million as of the acquisition date. Our acquisition of NetSuite triggered (a) the right of holders of the NetSuite Debt to convert their debt holdings into an amount payable in cash, at any time through December 22, 2016, based upon conversion formulas that are contained within the NetSuite Debt indenture and (b) the obligation of NetSuite to offer to repurchase the NetSuite Debt from each holder at a purchase price equal to par, plus accrued and unpaid interest, which offer expired on December 21, 2016. In December 2016, we repurchased and settled for cash substantially all of the NetSuite Debt. In the second quarter of fiscal 2017, we assumed $113 million of debt that bears interest at 3.53% and matures in August 2025 in connection with our acquisition of certain land and buildings. In May 2016, we borrowed $3.8 billion pursuant to three revolving credit agreements with JPMorgan Chase Bank, N.A., as initial lender and administrative agent (the 2016 Credit Agreements). In June 2016, we repaid the $3.8 billion and the 2016 Credit Agreements expired pursuant to their terms. There have been no other significant changes in our notes payable or other borrowing arrangements that were disclosed in our Annual Report on Form 10-K for the fiscal year ended May 31, 2016.

RESTRUCTURING ACTIVITIES

RESTRUCTURING ACTIVITIES	9 Months Ended
	Feb. 28, 2017
Restructuring And Related Activities [Abstract]
RESTRUCTURING ACTIVITIES	7. RESTRUCTURING ACTIVITIES Fiscal 2017 Oracle Restructuring Plan During the first quarter of fiscal 2017, our management approved, committed to and initiated plans to restructure and further improve efficiencies in our operations due to our recent acquisitions and certain other operational activities (2017 Restructuring Plan). Our management subsequently supplemented the 2017 Restructuring Plan in the third quarter of fiscal 2017 to reflect additional actions that we expect to take. The total estimated restructuring costs associated with the 2017 Restructuring Plan are up to $615 million and will be recorded to the restructuring expense line item within our condensed consolidated statements of operations as they are incurred. We recorded $363 million of restructuring expenses in connection with the 2017 Restructuring Plan in the first nine months of fiscal 2017 and we expect to incur the majority of the estimated remaining $252 million through the end of fiscal 2018. Any changes to the estimates of executing the 2017 Restructuring Plan will be reflected in our future results of operations. Summary of All Plans Accrued Nine Months Ended February 28, 2017 Accrued Total Costs Total Expected (in millions) May 31, 2016 (2) Initial Costs (3) Adj. Cost (4) Cash Payments Others (5) February 28, 2017 (2) Accrued to Date Program Costs Fiscal 2017 Oracle Restructuring Plan (1) Cloud software and on-premise software $ — $ 106 $ (4 ) $ (57 ) $ 1 $ 46 $ 102 $ 151 Software license updates and product support — 23 — (12 ) 4 15 23 31 Hardware business — 67 (3 ) (37 ) (1 ) 26 64 161 Services business — 44 — (23 ) — 21 44 76 Other — 130 — (69 ) — 61 130 196 Total Fiscal 2017 Oracle Restructuring Plan $ — $ 370 $ (7 ) $ (198 ) $ 4 $ 169 $ 363 $ 615 Total other restructuring plans (6) $ 283 $ 8 $ (25 ) $ (153 ) $ (16 ) $ 97 Total restructuring plans $ 283 $ 378 $ (32 ) $ (351 ) $ (12 ) $ 266 (1) Restructuring costs recorded for individual line items primarily related to employee severance costs. (2) The balances at February 28, 2017 and May 31, 2016 included $247 million and $255 million, respectively, recorded in other current liabilities, and $19 million and $28 million, respectively, recorded in other non-current liabilities. (3) Costs recorded for the respective restructuring plans during the current period presented. (4) All plan adjustments were changes in estimates whereby increases and decreases in costs were generally recorded to operating expenses in the period of adjustments. (5) Represents foreign currency translation and certain other adjustments. (6) Other restructuring plans presented in the table above included condensed information for other Oracle based plans (primarily the Fiscal 2015 Oracle Restructuring Plan) and other plans associated with certain of our acquisitions whereby we continued to make cash outlays to settle obligations under these plans during the period presented but for which the periodic impact to our condensed consolidated statements of operations was not significant.

DEFERRED REVENUES

DEFERRED REVENUES	9 Months Ended
	Feb. 28, 2017
Deferred Revenue Disclosure [Abstract]
DEFERRED REVENUES	8. DEFERRED REVENUES Deferred revenues consisted of the following: (in millions) February 28, 2017 May 31, 2016 Software license updates and product support $ 5,163 $ 5,864 Cloud SaaS, PaaS and IaaS 1,169 705 Hardware support and other 595 675 Services 366 339 New software licenses 95 72 Deferred revenues, current 7,388 7,655 Deferred revenues, non-current (in other non-current liabilities) 560 536 Total deferred revenues $ 7,948 $ 8,191 Deferred software license updates and product support revenues and deferred hardware support revenues represent customer payments made in advance for support contracts that are typically billed on a per annum basis in advance with corresponding revenues being recognized ratably over the support periods. Deferred cloud software as a service (SaaS), platform as a service (PaaS) and infrastructure as a service (IaaS) revenues generally resulted from customer payments made in advance for our cloud-based offerings that are recognized over the corresponding contractual term. Deferred services revenues include prepayments for our services business and revenues for these services are generally recognized as the services are performed. Deferred new software licenses revenues typically resulted from customer payments that related to undelivered products or specified enhancements, customer specific acceptance provisions, time-based license arrangements and software license transactions that cannot be separated from undelivered consulting or other services. In connection with our acquisitions, we have estimated the fair values of the cloud SaaS and PaaS, software license updates and product support, and hardware support obligations, among others, assumed from our acquired companies. We generally have estimated the fair values of these obligations assumed using a cost build-up approach. The cost build-up approach determines fair value by estimating the costs related to fulfilling the obligations plus a normal profit margin. The sum of the costs and operating profit approximates, in theory, the amount that we would be required to pay a third party to assume these acquired obligations. These aforementioned fair value adjustments recorded for obligations assumed from our acquisitions reduced the cloud SaaS and PaaS, software license updates and product support and hardware support deferred revenues balances that we recorded as liabilities from these acquisitions and also reduced the resulting revenues that we recognized or will recognize over the terms of the acquired obligations during the post-combination periods.

DERIVATIVE FINANCIAL INSTRUMENT

DERIVATIVE FINANCIAL INSTRUMENTS	9 Months Ended
	Feb. 28, 2017
Derivative Instruments And Hedging Activities Disclosure [Abstract]
DERIVATIVE FINANCIAL INSTRUMENTS	9. DERIVATIVE FINANCIAL INSTRUMENTS We held certain derivative and non-derivative instruments that were accounted for pursuant to ASC 815, Derivatives and Hedging • interest rate swap agreements, which are used to protect us against changes in the fair values of certain of our fixed-rate borrowings due to benchmark interest rate movements and are accounted for as fair value hedges; • cross-currency swap agreements, which are used to manage foreign currency exchange risk by converting certain of our fixed-rate Euro-denominated borrowings to fixed-rate U.S. Dollar denominated debt and are accounted for as cash flow hedges; and • foreign currency borrowings, which are used to reduce the volatility in stockholders’ equity caused by the changes in the foreign currency exchange rates of the Euro with respect to the U.S. Dollar and are accounted for as net investment hedges. We also held certain foreign currency contracts that were not designated as hedges pursuant to ASC 815. The notional amounts of such forward contracts we held to purchase U.S. Dollars in exchange for other major international currencies were $2.3 billion and $2.7 billion, respectively, and the notional amount of forward contracts we held to sell U.S. Dollars in exchange for other major international currencies were $2.0 billion and $2.0 billion, respectively. The fair values of our outstanding foreign currency forward contracts were nominal as of February 28, 2017 and May 31, 2016. Included in our non-operating income, net were $74 million and $53 million of net losses related to these forward contracts for the three and nine months ended February 28, 2017, respectively and $93 million and $163 million of net gains for the three and nine months ended February 29, 2016, respectively. See Note 11 of Notes to Consolidated Financial Statements included in our Annual Report on Form 10-K for the fiscal year ended May 31, 2016 for additional information regarding the purpose, accounting and classification of our derivative and non-derivative instruments. None of our derivative instruments are used for trading purposes. The effects of derivative and non-derivative instruments designated as hedges on certain of our 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 and Non-Derivative Instruments Designated as Hedges in Condensed Consolidated Balance Sheets Fair Value (in millions) Balance Sheet Location February 28, 2017 May 31, 2016 Interest rate swap agreements designated as fair value hedges Other assets $ 23 $ 122 Cross-currency swap agreements designated as cash flow hedges Other non-current $ (262 ) $ (218 ) Foreign currency borrowings designated as net investment hedge Notes payable, non-current $ (951 ) $ (991 ) Effects of Derivative and Non-Derivative Instruments Designated as Hedges on Income and Other Comprehensive Income (OCI) or Loss (OCL) Amount of Gain (Loss) Recognized in Accumulated OCI or OCL Location Three Months Ended Nine Months Ended Three Months Ended Nine Months Ended (in millions) February February February February February February February February Cross-currency swap agreements designated as cash flow hedges $ 6 $ 29 $ (44 ) $ (16 ) Non-operating income, net $ 2 $ 52 $ (69 ) $ 21 Foreign currency borrowings designated as net investment hedge $ (1 ) $ (31 ) $ 42 $ (13 ) Not applicable $ — $ — $ — $ — Location and Amount of Gain (Loss) Recognized in Income on Derivative Location and Amount of Gain (Loss) on Hedged Item Recognized in Income Attributable to Risk Being Three Months Ended Nine Months Ended Three Months Ended Nine Months Ended (in millions) February February February February February February February February Interest rate swap agreements designated as fair value hedges Interest expense $ (31 ) $ 76 $ (99 ) $ 90 Interest expense $ 31 $ (76 ) $ 99 $ (90 )

STOCKHOLDERS' EQUITY

STOCKHOLDERS' EQUITY	9 Months Ended
	Feb. 28, 2017
Stockholders Equity Note [Abstract]
STOCKHOLDERS' EQUITY	10. STOCKHOLDERS’ EQUITY Common Stock Repurchases Our Board of Directors has approved a program for us to repurchase shares of our common stock. As of February 28, 2017, approximately $5.8 billion remained available for stock repurchases pursuant to our stock repurchase program. We repurchased 74.6 million shares for $3.0 billion during the nine months ended February 28, 2017 (including 0.6 million shares for $25 million that were repurchased but not settled) and 222.7 million shares for $8.4 billion during the nine months ended February 29, 2016 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 During the nine months ended February 28, 2017, our Board of Directors declared cash dividends of $0.45 per share of our outstanding common stock, which we paid during the same period. In March 2017, our Board of Directors declared a quarterly cash dividend of $0.19 per share of our outstanding common stock, an increase of $0.04 per share over the prior period dividend. The dividend is payable on April 26, 2017 to stockholders of record as of the close of business on April 12, 2017. Future declarations of dividends and the establishment of future record and payment dates are subject to the final determination of our Board of Directors. Stock-Based Compensation Expense and Valuations of Stock Awards During the first nine months of fiscal 2017, we issued 52 million restricted stock-based awards (consisting of 50 million service-based restricted stock units (RSUs) and 2 million performance-based restricted stock units (PSUs)) and 21 million stock options. Substantially all of the awards were issued as a part of our annual stock-based award process or in connection with our acquisitions and are subject to service-based vesting restrictions, with the PSUs also having performance-based vesting restrictions, that are of a similar nature to those described in Note 14 of Notes to Consolidated Financial Statements included in our Annual Report on Form 10-K for the fiscal year ended May 31, 2016. Approximately 7 million of the 21 million stock options granted during the first nine months of fiscal 2017 were to our Chief Executive Officers and Chief Technology Officer and had contractual lives of five years versus the ten year contractual lives for most of the other stock options granted. Our fiscal 2017 stock-based award issuances were partially offset by forfeitures and cancellations of 10 million shares during the first nine months of fiscal 2017. Stock-based compensation expense is included in the following operating expense line items in our condensed consolidated statements of operations: Three Months Ended Nine Months Ended (in millions) February 28, 2017 February 29, 2016 February 28, 2017 February 29, 2016 Sales and marketing $ 96 $ 57 $ 228 $ 163 Cloud software as a service and platform as a service 6 4 17 13 Cloud infrastructure as a service 1 1 3 3 Software license updates and product support 6 6 18 18 Hardware products 2 1 6 4 Hardware support 1 1 3 4 Services 14 7 31 22 Research and development 191 154 574 452 General and administrative 32 29 104 86 Acquisition related and other 22 — 33 3 Total stock-based compensation $ 371 $ 260 $ 1,017 $ 768

INCOME TAXES

INCOME TAXES	9 Months Ended
	Feb. 28, 2017
Income Tax Disclosure [Abstract]
INCOME TAXES	11. INCOME TAXES The effective tax rate for the periods presented is 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 differs from the tax computed at the U.S. federal statutory income tax rate due primarily to certain earnings considered as indefinitely reinvested in foreign operations, state taxes, the U.S. research and development tax credit, changes in unrecognized tax benefits due to settlements with tax authorities and other events, and the U.S. domestic production activity deduction. In addition, beginning in fiscal 2017, the provision for income taxes also differs from the tax computed at the U.S. federal statutory tax rate due to the tax effects of stock-based compensation. Our effective tax rate was 17.0% and 21.3% for the three and nine months ended February 28, 2017, respectively, and 21.6% and 21.0% for the three and nine months ended February 29, 2016, respectively. Our net deferred tax assets were $134 million and $1.1 billion as of February 28, 2017 and May 31, 2016, 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 2015. Our U.S. federal income tax returns have been examined for all years prior to fiscal 2007, 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 2004, 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 1997. 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. On July 27, 2015, in Altera Corp. v. Commissioner 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, India, Brazil, and Korea, 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.

SEGMENT INFORMATION

SEGMENT INFORMATION	9 Months Ended
	Feb. 28, 2017
Segment Reporting [Abstract]
SEGMENT INFORMATION	12. SEGMENT INFORMATION ASC 280, Segment Reporting We have three businesses—cloud and on-premise software, hardware and services—which are further divided into certain operating segments. Our cloud and on-premise software business is comprised of three operating segments: (1) cloud software and on-premise software, which includes our cloud SaaS and PaaS offerings, (2) cloud infrastructure as a service and (3) software license updates and product support. Our hardware business is comprised of two operating segments: (1) hardware products and (2) hardware support. All other operating segments are combined under our services business. Our cloud software and on-premise software line of business markets, sells and delivers a broad spectrum of application and platform technologies through our SaaS and PaaS offerings, which are certain of our applications and platforms software delivered via a cloud-based information technology (IT) environment that we host, manage and support, and through the licensing of our software products including Oracle Applications, Oracle Database, Oracle Fusion Middleware and Java, among others. The cloud IaaS line of business includes Oracle Cloud IaaS offerings, which provide infrastructure cloud services that are enterprise-grade, hosted and supported within the Oracle Cloud to perform elastic compute, storage and networking services on a subscription basis; and Oracle Managed Cloud Services, which are comprehensive software and hardware management and maintenance services for customer IT infrastructure for a fee for a stated term that are hosted at our Oracle data center facilities, select partner data centers or physically on-premise at customer facilities. The software license updates and product support line of business generates revenues through the sale of software support contracts related to new software licenses purchased by our customers. The software license updates and product support line of business provides our on-premise software customers with rights to software product upgrades and maintenance releases, patches released, internet access to technical content, as well as internet and telephone access to technical support personnel during the support period. The hardware products line of business provides Oracle Engineered Systems, servers, storage, networking, industry-specific hardware, virtualization software, operating systems including the Oracle Solaris Operating System and management software to support diverse IT environments, including cloud computing environments. Our hardware support line of business provides customers with software updates for the software components that are essential to the functionality of our hardware products, such as Oracle Solaris and certain other software, and can include product repairs, maintenance services and technical support services. Our services business is comprised of the remainder of our operating segments and offers consulting, advanced customer support services and education services. Our consulting line of business primarily provides services to customers in business and IT strategy alignment, enterprise architecture planning and design, initial product implementation and integration and ongoing product enhancements and upgrades. Advanced customer support services provides on-premise and remote support services to our customers to enable increased performance and higher availability of their Oracle products and services and also include certain other services. Education services provide training to customers, partners and employees as a part of our mission of accelerating the adoption and use of our cloud, on-premise software and hardware offerings. We do not track our assets by operating segments. Consequently, it is not practical to show assets by operating segment. The following table presents summary results for each of our three businesses and for the operating segments of our cloud and on-premise software and hardware businesses: Three Months Ended Nine Months Ended (in millions) February 28, 2017 February 29, 2016 February 28, 2017 February 29, 2016 Cloud software and on-premise software: Revenues (1) $ 2,494 $ 2,265 $ 6,598 $ 6,030 Cloud software as a service and platform as a service expenses 369 284 1,026 822 Sales, marketing and distribution expenses 1,666 1,574 4,873 4,569 Margin (2) $ 459 $ 407 $ 699 $ 639 Cloud infrastructure as a service: Revenues $ 178 $ 152 $ 525 $ 477 Cloud infrastructure as a service expenses 122 84 323 256 Sales, marketing and distribution expenses 14 17 46 54 Margin (2) $ 42 $ 51 $ 156 $ 167 Software license updates and product support: Revenues (1) $ 4,762 $ 4,669 $ 14,332 $ 14,049 Software license updates and product support expenses 253 276 733 823 Margin (2) $ 4,509 $ 4,393 $ 13,599 $ 13,226 Total cloud and on-premise software business: Revenues (1) $ 7,434 $ 7,086 $ 21,455 $ 20,556 Expenses 2,424 2,235 7,001 6,524 Margin (2) $ 5,010 $ 4,851 $ 14,454 $ 14,032 Hardware products: Revenues $ 520 $ 604 $ 1,478 $ 1,746 Hardware products expenses 288 337 769 963 Sales, marketing and distribution expenses 195 202 597 625 Margin (2) $ 37 $ 65 $ 112 $ 158 Hardware support: Revenues (1) $ 508 $ 531 $ 1,560 $ 1,640 Hardware support expenses 140 165 420 504 Margin (2) $ 368 $ 366 $ 1,140 $ 1,136 Total hardware business: Revenues (1) $ 1,028 $ 1,135 $ 3,038 $ 3,386 Expenses 623 704 1,786 2,092 Margin (2) $ 405 $ 431 $ 1,252 $ 1,294 Total services business: Revenues $ 812 $ 793 $ 2,464 $ 2,519 Services expenses 645 630 1,978 1,976 Margin (2) $ 167 $ 163 $ 486 $ 543 Totals: Revenues (1) $ 9,274 $ 9,014 $ 26,957 $ 26,461 Expenses 3,692 3,569 10,765 10,592 Margin (2) $ 5,582 $ 5,445 $ 16,192 $ 15,869 (1) 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, respectively, that would have otherwise been recorded by the acquired businesses as independent entities but were not recognized in our condensed consolidated statements of operations for the periods presented. See Note 8 for an explanation of these adjustments and the table below for a reconciliation of our total operating segment revenues to our total revenues as reported in our condensed consolidated statements of operations. (2) The margins reported reflect only the direct controllable costs of each line of business and do not include allocations of product development, 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 non-operating income, net. Certain fiscal 2016 balances have been reclassified to conform to the current year presentation. Such reclassifications did not affect consolidated revenues or operating income. 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: Three Months Ended Nine Months Ended (in millions) February 28, 2017 February 29, 2016 February 28, 2017 February 29, 2016 Total revenues for operating segments $ 9,274 $ 9,014 $ 26,957 $ 26,461 Cloud software as a service and platform as a service revenues (1) (69 ) (2 ) (120 ) (6 ) Software license updates and product support revenues (1) — — (1 ) (1 ) Hardware support revenues (1) — — (1 ) (1 ) Total revenues $ 9,205 $ 9,012 $ 26,835 $ 26,453 Total margin for operating segments $ 5,582 $ 5,445 $ 16,192 $ 15,869 Cloud software as a service and platform as a service revenues (1) (69 ) (2 ) (120 ) (6 ) Software license updates and product support revenues (1) — — (1 ) (1 ) Hardware support revenues (1) — — (1 ) (1 ) Research and development (1,285 ) (1,219 ) (3,835 ) (3,652 ) Corporate, general and administrative and information technology expenses (332 ) (403 ) (1,175 ) (1,197 ) Amortization of intangible assets (397 ) (408 ) (1,010 ) (1,283 ) Acquisition related and other (30 ) (11 ) (84 ) (35 ) Restructuring (161 ) (115 ) (346 ) (293 ) Stock-based compensation (349 ) (260 ) (984 ) (765 ) Interest expense (450 ) (360 ) (1,317 ) (1,105 ) Non-operating income, net 189 65 437 179 Income before provision for income taxes $ 2,698 $ 2,732 $ 7,756 $ 7,710 (1) 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 condensed consolidated statements of operations for the periods presented due to business combination accounting requirements.

EARNINGS PER SHARE

EARNINGS PER SHARE	9 Months Ended
	Feb. 28, 2017
Earnings Per Share [Abstract]
EARNINGS PER SHARE	13. 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 using the treasury stock method. The following table sets forth the computation of basic and diluted earnings per share: Three Months Ended Nine Months Ended (in millions, except per share data) February 28, 2017 February 29, 2016 February 28, 2017 February 29, 2016 Net income $ 2,239 $ 2,142 $ 6,103 $ 6,087 Weighted average common shares outstanding 4,107 4,182 4,110 4,246 Dilutive effect of employee stock plans 97 74 97 82 Dilutive weighted average common shares outstanding 4,204 4,256 4,207 4,328 Basic earnings per share $ 0.55 $ 0.51 $ 1.49 $ 1.43 Diluted earnings per share $ 0.53 $ 0.50 $ 1.45 $ 1.41 Shares subject to anti-dilutive restricted stock-based awards and stock options excluded from calculation (1) 76 67 75 62 (1) These weighted shares relate to anti-dilutive restricted stock-based awards and stock options as calculated using the treasury stock method and could be dilutive in the future.

LEGAL PROCEEDINGS

LEGAL PROCEEDINGS	9 Months Ended
	Feb. 28, 2017
Legal Proceedings [Abstract]
LEGAL PROCEEDINGS	14. 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 between HP and Mark Hurd (the Hurd Settlement Agreement), who is our Chief Executive Officer and was both HP’s former chief executive officer and chairman of HP’s board of directors. HP sought a judicial declaration of the parties’ rights and obligations under the Hurd Settlement Agreement and other equitable and monetary relief. Oracle answered the complaint and filed a cross-complaint, which was amended on December 2, 2011. The amended cross-complaint alleged claims including violation of the Lanham Act. Oracle alleged that HP had secretly agreed to pay Intel to continue to develop and manufacture the Itanium microprocessor, and had misrepresented to customers that the Itanium microprocessor had a long roadmap, among other claims. Oracle sought equitable rescission of the Hurd Settlement Agreement, and other equitable and monetary relief. The court bifurcated the trial and tried HP’s causes of action for declaratory relief and promissory estoppel without a jury in June 2012. The court issued a final statement of decision on August 28, 2012, finding that the Hurd Settlement Agreement required Oracle to continue to develop certain of its software products for use on HP’s Itanium-based servers and to port such products at no cost to HP for as long as HP sells those servers (the Phase One Ruling). A jury trial began on May 23, 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 claim for violation of the Lanham Act (the Phase Two Jury Verdict). The jury awarded HP damages in the amount of $3.0 billion, and HP is entitled to post-judgment interest on this award. On August 30, 2016, the court denied HP’s motion for pre-judgment interest. Judgment was entered on October 20, 2016. Oracle posted certain court-mandated surety bonds with the court in order to proceed with its motion for a new trial and entered into related indemnification agreements with each of the surety bond issuing companies. Oracle filed a motion for a new trial on November 14, 2016, which was denied. Oracle filed its notice of appeal on January 17, 2017, specifying that it was appealing the trial court’s Phase One Ruling and Phase Two Jury Verdict. On February 2, 2017, HP filed a notice of appeal of the trial court’s denial of pre-judgment interest. No amounts have been paid or recorded to our results of operations either prior to or subsequent to the Phase One Ruling or Phase Two Jury Verdict. We continue to believe that we have meritorious defenses against HP’s claims, and we intend to present these defenses to the appellate court. Among the arguments we expect to make on appeal are the following: the trial court misapplied fundamental principles of contract law and misinterpreted the Hurd Settlement Agreement, including by disregarding the context of the Hurd Settlement Agreement and the evidence of the parties’ mutual intentions; that HP’s breach of contract claim should fail as a matter of law because HP does not claim and did not prove that Oracle failed to deliver any software under the trial court’s interpretation of the contract; that awarding HP both damages for breach of the Hurd Settlement Agreement and specific performance of that agreement constitutes an improper double recovery; and that the damages award is excessive, unsupported by the evidence, and contrary to law. 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 to our future cash flows and 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 AND REC21

BASIS OF PRESENTATION AND RECENT ACCOUNTING PRONOUNCEMENTS (Policies)	9 Months Ended
	Feb. 28, 2017
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 financial statements and the notes thereto included in our Annual Report on Form 10-K for the fiscal year ended May 31, 2016. 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, 2017. Certain prior year balances have been reclassified to conform to the current year presentation. Such reclassifications did not affect total revenues, operating income or net income. During the first nine months of fiscal 2017, we adopted Accounting Standards Update (ASU) 2016-09, Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting In addition, in fiscal 2017, we also adopted the following Accounting Standards Updates, none of which had a material impact to our reported financial position or results of operations and cash flows: • ASU 2016-17, Consolidation (Topic 810): Interests Held through Related Parties That Are under Common Control • ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash • ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments There have been no other significant changes in our reported financial position or results of operations and cash flows as a result of our adoption of new accounting pronouncements or changes to our significant accounting policies that were disclosed in our Annual Report on Form 10-K for the fiscal year ended May 31, 2016.
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 February 28, 2017 and May 31, 2016 and our condensed consolidated statements of cash flows for the nine months ended February 28, 2017 and February 29, 2016 was nominal.
Acquisition Related and Other Expenses	Acquisition Related and Other Expenses Acquisition related and other expenses consist of personnel related costs and stock-based compensation for transitional and certain other employees, integration related professional services, certain business combination adjustments including certain adjustments after the measurement period has ended and certain other operating items, net. Three Months Ended Nine Months Ended (in millions) February 28, 2017 February 29, 2016 February 28, 2017 February 29, 2016 Transitional and other employee related costs $ 15 $ 8 $ 31 $ 40 Stock-based compensation 22 — 33 3 Professional fees and other, net (2 ) 1 26 10 Business combination adjustments, net (5 ) 2 (6 ) (18 ) Total acquisition related and other expenses $ 30 $ 11 $ 84 $ 35 Included in acquisition related and other expenses during the nine months ended February 29, 2016 is an acquisition related benefit of $19 million.
Non-Operating Income, net	Non-Operating Income, net Non-operating income, net consists primarily of interest income, net foreign currency exchange gains (losses), the noncontrolling interests in the net profits of our majority-owned subsidiaries (primarily Oracle Financial Services Software Limited and Oracle Japan) and net other income (losses), including net realized gains and losses related to all of our investments and net unrealized gains and losses related to the small portion of our investment portfolio that we classify as trading. Three Months Ended Nine Months Ended (in millions) February 28, 2017 February 29, 2016 February 28, 2017 February 29, 2016 Interest income $ 197 $ 141 $ 578 $ 382 Foreign currency losses, net (20 ) (15 ) (102 ) (68 ) Noncontrolling interests in income (20 ) (36 ) (95 ) (95 ) Other income (loss), net 32 (25 ) 56 (40 ) Total non-operating income, net $ 189 $ 65 $ 437 $ 179
Sales of Financing Receivables	Sales of Financing Receivables We offer certain of our customers the option to acquire our software products, hardware products 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 $296 million and $1.3 billion for the three and nine months ended February 28, 2017, respectively, and $304 million and $1.5 billion for the three and nine months ended February 29, 2016, respectively.
Recent Accounting Pronouncements	Recent Accounting Pronouncements Goodwill Impairment: In January 2017, the Financial Accounting Standards Board (FASB) issued ASU 2017-04, Intangibles–Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment (ASU 2017-04), which eliminates step two from the goodwill impairment test. Under the amendments in ASU 2017-04, an entity should recognize an impairment charge for the amount by which the carrying amount of a reporting unit exceeds its fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. ASU 2017-04 is effective for us in our first quarter of fiscal 2021 on a prospective basis, and earlier adoption is permitted for goodwill impairment tests performed on testing dates after January 1, 2017. We are currently evaluating the impact of our pending adoption of ASU 2017-04 on our consolidated financial statements. Business Combinations: In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business (ASU 2017-01), which provides guidance for evaluating whether certain transactions are to be accounted for as an acquisition (or disposal) of either a business or an asset. ASU 2017-01 is effective for us in our first quarter of fiscal 2019 on a prospective basis, and earlier adoption is permitted for transactions occurring subsequent to the issuance of ASU 2017-01 and not reported in the financial statements. We are currently evaluating the impact of our pending adoption of ASU 2017-01 on our consolidated financial statements. Income Taxes: In October 2016, the FASB issued ASU 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory (ASU 2016-16), which changes the timing of when certain intercompany transactions are recognized within the provision for income taxes. ASU 2016-16 is effective for us in our first quarter of fiscal 2019 on a modified retrospective basis, and earlier adoption is permitted. We are currently evaluating the impact of our pending adoption of ASU 2016-16 on our consolidated financial statements. Financial Instruments: In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (ASU 2016-13), which requires measurement and recognition of expected credit losses for financial assets held. ASU 2016-13 is effective for us in our first quarter of fiscal 2021, and earlier adoption is permitted beginning in the first quarter of fiscal 2020. We are currently evaluating the impact of our pending adoption of ASU 2016-13 on our consolidated financial statements. In January 2016, the FASB issued ASU 2016-01, Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities Leases: In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) (ASU 2016-02). ASU 2016-02 requires companies to generally recognize on the balance sheet operating and financing lease liabilities and corresponding right-of-use assets. ASU 2016-02 is effective for us in our first quarter of fiscal 2020 on a modified retrospective basis, and earlier adoption is permitted. We are currently evaluating the impact of our pending adoption of ASU 2016-02 on our consolidated financial statements, and we currently expect that most of our operating lease commitments will be subject to the new standard and recognized as operating lease liabilities and right-of-use assets upon our adoption of ASU 2016-02, which will increase our total assets and total liabilities that we report relative to such amounts prior to adoption. Revenue Recognition: In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers: Topic 606 and issued subsequent amendments to the initial guidance in August 2015, March 2016, April 2016, May 2016 and December 2016 within ASU 2015-14, ASU 2016-08, ASU 2016-10, ASU 2016-12 and ASU 2016-20, respectively (ASU 2014-09, ASU 2015-14, ASU 2016-08, ASU 2016-10, ASU 2016-12 and ASU 2016-20, respectively, and collectively Topic 606). Topic 606 supersedes nearly all existing revenue recognition guidance under GAAP. The core principle of Topic 606 is to recognize revenues when promised goods or services are transferred to customers in an amount that reflects the consideration that is expected to be received for those goods or services. Topic 606 defines a five-step process to achieve this core principle and, in doing so, it is possible more judgment and estimates may be required within the revenue recognition process than are required under existing GAAP, including identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation, among others. Topic 606 also provides guidance on the recognition of costs related to obtaining customer contracts. Topic 606 is effective for us as of either our first quarter of fiscal 2018 or our first quarter of fiscal 2019 using either of two methods: (1) retrospective application of Topic 606 to each prior reporting period presented with the option to elect certain practical expedients as defined within Topic 606 or (2) retrospective application of Topic 606 with the cumulative effect of initially applying Topic 606 recognized at the date of initial application and providing certain additional disclosures as defined per Topic 606. Preliminarily, we plan to adopt Topic 606 in the first quarter of fiscal 2019 pursuant to the aforementioned adoption method (1) and we do not believe there will be a material impact to our revenues upon adoption. We are continuing to evaluate the impact to our revenues related to our pending adoption of Topic 606 and our preliminary assessments are subject to change. We are also continuing to evaluate the provisions of Topic 606 related to costs for obtaining customer contracts.

BASIS OF PRESENTATION AND REC22

BASIS OF PRESENTATION AND RECENT ACCOUNTING PRONOUNCEMENTS (Tables)	9 Months Ended
	Feb. 28, 2017
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Acquisition Related Other Expenses	Three Months Ended Nine Months Ended (in millions) February 28, 2017 February 29, 2016 February 28, 2017 February 29, 2016 Transitional and other employee related costs $ 15 $ 8 $ 31 $ 40 Stock-based compensation 22 — 33 3 Professional fees and other, net (2 ) 1 26 10 Business combination adjustments, net (5 ) 2 (6 ) (18 ) Total acquisition related and other expenses $ 30 $ 11 $ 84 $ 35
Non-Operating Income, net	Three Months Ended Nine Months Ended (in millions) February 28, 2017 February 29, 2016 February 28, 2017 February 29, 2016 Interest income $ 197 $ 141 $ 578 $ 382 Foreign currency losses, net (20 ) (15 ) (102 ) (68 ) Noncontrolling interests in income (20 ) (36 ) (95 ) (95 ) Other income (loss), net 32 (25 ) 56 (40 ) Total non-operating income, net $ 189 $ 65 $ 437 $ 179

ACQUISITIONS (Tables)

ACQUISITIONS (Tables)	9 Months Ended
	Feb. 28, 2017
Business Combinations [Abstract]
Fair Values of Net Assets Acquired from NetSuite	(in millions) Cash and cash equivalents $ 481 Trade receivables, net 32 Other assets 111 Intangible assets 3,157 Goodwill 6,713 Accounts payable and other liabilities (132 ) Deferred revenues (163 ) Debt (342 ) Deferred tax liabilities, net (777 ) Total $ 9,080
Unaudited Pro Forma Financial Information	Three Months Ended Nine Months Ended (in millions, except per share data) February 28, 2017 February 29, 2016 February 28, 2017 February 29, 2016 Total revenues $ 9,221 $ 9,306 $ 27,313 $ 27,295 Net income $ 2,228 $ 1,932 $ 5,797 $ 5,454 Basic earnings per share $ 0.54 $ 0.46 $ 1.41 $ 1.28 Diluted earnings per share $ 0.53 $ 0.45 $ 1.38 $ 1.26

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	9 Months Ended
	Feb. 28, 2017
Fair Value Disclosures [Abstract]
Assets and Liabilities Measured at Fair Value on a Recurring Basis	February 28, 2017 May 31, 2016 Fair Value Measurements Using Input Types Fair Value Measurements Using Input Types (in millions) Level 1 Level 2 Total Level 1 Level 2 Total Assets: Corporate debt securities and other $ 235 $ 38,205 $ 38,440 $ 393 $ 35,095 $ 35,488 Commercial paper debt securities — 4,327 4,327 — 2,155 2,155 Money market funds 2,002 — 2,002 3,750 — 3,750 Derivative financial instruments — 23 23 — 122 122 Total assets $ 2,237 $ 42,555 $ 44,792 $ 4,143 $ 37,372 $ 41,515 Liabilities: Derivative financial instruments $ — $ 262 $ 262 $ — $ 218 $ 218

INVENTORIES (Tables)

INVENTORIES (Tables)	9 Months Ended
	Feb. 28, 2017
Inventory Net [Abstract]
Inventories	(in millions) February 28, 2017 May 31, 2016 Raw materials $ 244 $ 95 Work-in-process 46 31 Finished goods 101 86 Total $ 391 $ 212

INTANGIBLE ASSETS AND GOODWILL

INTANGIBLE ASSETS AND GOODWILL (Tables)	9 Months Ended
	Feb. 28, 2017
Goodwill And Intangible Assets Disclosure [Abstract]
Intangible Assets	Intangible Assets, Gross Accumulated Amortization Intangible Assets, Net Weighted Average (in millions) May 31, 2016 Additions February 28, 2017 May 31, 2016 Expense February 28, 2017 May 31, 2016 February 28, 2017 Useful Life (1) Developed technology $ 3,661 $ 1,645 $ 5,306 $ (1,876 ) $ (462 ) $ (2,338 ) $ 1,785 $ 2,968 7 years SaaS, PaaS and IaaS agreements and related relationships 2,034 2,084 4,118 (704 ) (251 ) (955 ) 1,330 3,163 10 years Software support agreements and related relationships 2,419 — 2,419 (1,287 ) (94 ) (1,381 ) 1,132 1,038 — Other 3,452 126 3,578 (2,756 ) (203 ) (2,959 ) 696 619 9 years Total intangible assets, net $ 11,566 $ 3,855 $ 15,421 $ (6,623 ) $ (1,010 ) $ (7,633 ) $ 4,943 $ 7,788 9 years (1) Represents weighted-average useful lives of intangible assets acquired during fiscal 2017.
Estimated Future Amortization Expenses Related to Intangible Assets	Remainder of fiscal 2017 $ 402 Fiscal 2018 1,362 Fiscal 2019 1,248 Fiscal 2020 1,058 Fiscal 2021 883 Fiscal 2022 779 Thereafter 2,056 Total intangible assets, net $ 7,788
Goodwill	(in millions) Cloud Software Software License Updates Hardware Support Consulting Other, net (2) Total Goodwill, net Balances as of May 31, 2016 $ 15,747 $ 14,439 $ 2,367 $ 1,759 $ 278 $ 34,590 Goodwill from acquisitions 863 — — — 7,072 7,935 Goodwill adjustments, net (1) (287 ) (1 ) — (1 ) 268 (21 ) Balances as of February 28, 2017 $ 16,323 $ 14,438 $ 2,367 $ 1,758 $ 7,618 $ 42,504 (1) Pursuant to our business combinations accounting policy, we recorded goodwill adjustments for the effects on goodwill of changes to net assets acquired during the period that such a change is identified, provided that any such change is within the measurement period (up to one year from the date of the acquisition). (2) Represents goodwill allocated to our other operating segments and, as of February 28, 2017, approximately $6.7 billion of NetSuite goodwill that will be allocated based upon the finalization of purchase accounting valuations.

NOTES PAYABLE AND OTHER BORRO27

NOTES PAYABLE AND OTHER BORROWINGS (Tables)	9 Months Ended
	Feb. 28, 2017
Debt Disclosure [Abstract]
Notes Payable and Other Borrowings	February 28, 2017 (Dollars in millions) Date of Issuance Amount Effective Interest Rate $4,250, 1.90%, due September 2021 July 2016 $ 4,250 1.94% $2,500, 2.40%, due September 2023 July 2016 2,500 2.40% $3,000, 2.65%, due July 2026 July 2016 3,000 2.69% $1,250, 3.85%, due July 2036 July 2016 1,250 3.85% $3,000, 4.00%, due July 2046 July 2016 3,000 4.00% Total fixed rate senior notes $ 14,000 Unamortized discount/issuance costs (63 ) Total fixed rate senior notes, net $ 13,937

RESTRUCTURING ACTIVITIES (Table

RESTRUCTURING ACTIVITIES (Tables)	9 Months Ended
	Feb. 28, 2017
Restructuring And Related Activities [Abstract]
Summary of All Plans	Accrued Nine Months Ended February 28, 2017 Accrued Total Costs Total Expected (in millions) May 31, 2016 (2) Initial Costs (3) Adj. Cost (4) Cash Payments Others (5) February 28, 2017 (2) Accrued to Date Program Costs Fiscal 2017 Oracle Restructuring Plan (1) Cloud software and on-premise software $ — $ 106 $ (4 ) $ (57 ) $ 1 $ 46 $ 102 $ 151 Software license updates and product support — 23 — (12 ) 4 15 23 31 Hardware business — 67 (3 ) (37 ) (1 ) 26 64 161 Services business — 44 — (23 ) — 21 44 76 Other — 130 — (69 ) — 61 130 196 Total Fiscal 2017 Oracle Restructuring Plan $ — $ 370 $ (7 ) $ (198 ) $ 4 $ 169 $ 363 $ 615 Total other restructuring plans (6) $ 283 $ 8 $ (25 ) $ (153 ) $ (16 ) $ 97 Total restructuring plans $ 283 $ 378 $ (32 ) $ (351 ) $ (12 ) $ 266 (1) Restructuring costs recorded for individual line items primarily related to employee severance costs. (2) The balances at February 28, 2017 and May 31, 2016 included $247 million and $255 million, respectively, recorded in other current liabilities, and $19 million and $28 million, respectively, recorded in other non-current liabilities. (3) Costs recorded for the respective restructuring plans during the current period presented. (4) All plan adjustments were changes in estimates whereby increases and decreases in costs were generally recorded to operating expenses in the period of adjustments. (5) Represents foreign currency translation and certain other adjustments. (6) Other restructuring plans presented in the table above included condensed information for other Oracle based plans (primarily the Fiscal 2015 Oracle Restructuring Plan) and other plans associated with certain of our acquisitions whereby we continued to make cash outlays to settle obligations under these plans during the period presented but for which the periodic impact to our condensed consolidated statements of operations was not significant.

DEFERRED REVENUES (Tables)

DEFERRED REVENUES (Tables)	9 Months Ended
	Feb. 28, 2017
Deferred Revenue Disclosure [Abstract]
Deferred Revenues	(in millions) February 28, 2017 May 31, 2016 Software license updates and product support $ 5,163 $ 5,864 Cloud SaaS, PaaS and IaaS 1,169 705 Hardware support and other 595 675 Services 366 339 New software licenses 95 72 Deferred revenues, current 7,388 7,655 Deferred revenues, non-current (in other non-current liabilities) 560 536 Total deferred revenues $ 7,948 $ 8,191

DERIVATIVE FINANCIAL INSTRUME30

DERIVATIVE FINANCIAL INSTRUMENTS (Tables)	9 Months Ended
	Feb. 28, 2017
Derivative Instrument Detail [Abstract]
Fair Values of Derivative and Non-Derivative Instruments Designated as Hedges in Condensed Consolidated Balance Sheets	Fair Value (in millions) Balance Sheet Location February 28, 2017 May 31, 2016 Interest rate swap agreements designated as fair value hedges Other assets $ 23 $ 122 Cross-currency swap agreements designated as cash flow hedges Other non-current $ (262 ) $ (218 ) Foreign currency borrowings designated as net investment hedge Notes payable, non-current $ (951 ) $ (991 )
Effects of Derivative and Non-Derivative Instruments Designated as Hedges on Income and Other Comprehensive Income (OCI) or Loss (OCL)	Amount of Gain (Loss) Recognized in Accumulated OCI or OCL Location Three Months Ended Nine Months Ended Three Months Ended Nine Months Ended (in millions) February February February February February February February February Cross-currency swap agreements designated as cash flow hedges $ 6 $ 29 $ (44 ) $ (16 ) Non-operating income, net $ 2 $ 52 $ (69 ) $ 21 Foreign currency borrowings designated as net investment hedge $ (1 ) $ (31 ) $ 42 $ (13 ) Not applicable $ — $ — $ — $ — Location and Amount of Gain (Loss) Recognized in Income on Derivative Location and Amount of Gain (Loss) on Hedged Item Recognized in Income Attributable to Risk Being Three Months Ended Nine Months Ended Three Months Ended Nine Months Ended (in millions) February February February February February February February February Interest rate swap agreements designated as fair value hedges Interest expense $ (31 ) $ 76 $ (99 ) $ 90 Interest expense $ 31 $ (76 ) $ 99 $ (90 )

STOCKHOLDERS' EQUITY (Tables)

STOCKHOLDERS' EQUITY (Tables)	9 Months Ended
	Feb. 28, 2017
Stockholders Equity Note [Abstract]
Stock-Based Compensation Expense	Three Months Ended Nine Months Ended (in millions) February 28, 2017 February 29, 2016 February 28, 2017 February 29, 2016 Sales and marketing $ 96 $ 57 $ 228 $ 163 Cloud software as a service and platform as a service 6 4 17 13 Cloud infrastructure as a service 1 1 3 3 Software license updates and product support 6 6 18 18 Hardware products 2 1 6 4 Hardware support 1 1 3 4 Services 14 7 31 22 Research and development 191 154 574 452 General and administrative 32 29 104 86 Acquisition related and other 22 — 33 3 Total stock-based compensation $ 371 $ 260 $ 1,017 $ 768

SEGMENT INFORMATION (Tables)

SEGMENT INFORMATION (Tables)	9 Months Ended
	Feb. 28, 2017
Segment Reporting [Abstract]
Summary of Businesses and Operating Segments Results	Three Months Ended Nine Months Ended (in millions) February 28, 2017 February 29, 2016 February 28, 2017 February 29, 2016 Cloud software and on-premise software: Revenues (1) $ 2,494 $ 2,265 $ 6,598 $ 6,030 Cloud software as a service and platform as a service expenses 369 284 1,026 822 Sales, marketing and distribution expenses 1,666 1,574 4,873 4,569 Margin (2) $ 459 $ 407 $ 699 $ 639 Cloud infrastructure as a service: Revenues $ 178 $ 152 $ 525 $ 477 Cloud infrastructure as a service expenses 122 84 323 256 Sales, marketing and distribution expenses 14 17 46 54 Margin (2) $ 42 $ 51 $ 156 $ 167 Software license updates and product support: Revenues (1) $ 4,762 $ 4,669 $ 14,332 $ 14,049 Software license updates and product support expenses 253 276 733 823 Margin (2) $ 4,509 $ 4,393 $ 13,599 $ 13,226 Total cloud and on-premise software business: Revenues (1) $ 7,434 $ 7,086 $ 21,455 $ 20,556 Expenses 2,424 2,235 7,001 6,524 Margin (2) $ 5,010 $ 4,851 $ 14,454 $ 14,032 Hardware products: Revenues $ 520 $ 604 $ 1,478 $ 1,746 Hardware products expenses 288 337 769 963 Sales, marketing and distribution expenses 195 202 597 625 Margin (2) $ 37 $ 65 $ 112 $ 158 Hardware support: Revenues (1) $ 508 $ 531 $ 1,560 $ 1,640 Hardware support expenses 140 165 420 504 Margin (2) $ 368 $ 366 $ 1,140 $ 1,136 Total hardware business: Revenues (1) $ 1,028 $ 1,135 $ 3,038 $ 3,386 Expenses 623 704 1,786 2,092 Margin (2) $ 405 $ 431 $ 1,252 $ 1,294 Total services business: Revenues $ 812 $ 793 $ 2,464 $ 2,519 Services expenses 645 630 1,978 1,976 Margin (2) $ 167 $ 163 $ 486 $ 543 Totals: Revenues (1) $ 9,274 $ 9,014 $ 26,957 $ 26,461 Expenses 3,692 3,569 10,765 10,592 Margin (2) $ 5,582 $ 5,445 $ 16,192 $ 15,869 (1) 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, respectively, that would have otherwise been recorded by the acquired businesses as independent entities but were not recognized in our condensed consolidated statements of operations for the periods presented. See Note 8 for an explanation of these adjustments and the table below for a reconciliation of our total operating segment revenues to our total revenues as reported in our condensed consolidated statements of operations. (2) The margins reported reflect only the direct controllable costs of each line of business and do not include allocations of product development, 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 non-operating income, net. Certain fiscal 2016 balances have been reclassified to conform to the current year presentation. Such reclassifications did not affect consolidated revenues or operating income.
Reconciliation of Total Operating Segment Revenues to Total Revenues	Three Months Ended Nine Months Ended (in millions) February 28, 2017 February 29, 2016 February 28, 2017 February 29, 2016 Total revenues for operating segments $ 9,274 $ 9,014 $ 26,957 $ 26,461 Cloud software as a service and platform as a service revenues (1) (69 ) (2 ) (120 ) (6 ) Software license updates and product support revenues (1) — — (1 ) (1 ) Hardware support revenues (1) — — (1 ) (1 ) Total revenues $ 9,205 $ 9,012 $ 26,835 $ 26,453
Reconciliation of Total Operating Segment Margin to Income before Provision for Income Taxes	Total margin for operating segments $ 5,582 $ 5,445 $ 16,192 $ 15,869 Cloud software as a service and platform as a service revenues (1) (69 ) (2 ) (120 ) (6 ) Software license updates and product support revenues (1) — — (1 ) (1 ) Hardware support revenues (1) — — (1 ) (1 ) Research and development (1,285 ) (1,219 ) (3,835 ) (3,652 ) Corporate, general and administrative and information technology expenses (332 ) (403 ) (1,175 ) (1,197 ) Amortization of intangible assets (397 ) (408 ) (1,010 ) (1,283 ) Acquisition related and other (30 ) (11 ) (84 ) (35 ) Restructuring (161 ) (115 ) (346 ) (293 ) Stock-based compensation (349 ) (260 ) (984 ) (765 ) Interest expense (450 ) (360 ) (1,317 ) (1,105 ) Non-operating income, net 189 65 437 179 Income before provision for income taxes $ 2,698 $ 2,732 $ 7,756 $ 7,710 (1) 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 condensed consolidated statements of operations for the periods presented due to business combination accounting requirements.

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	9 Months Ended
	Feb. 28, 2017
Earnings Per Share [Abstract]
Earnings Per Share	Three Months Ended Nine Months Ended (in millions, except per share data) February 28, 2017 February 29, 2016 February 28, 2017 February 29, 2016 Net income $ 2,239 $ 2,142 $ 6,103 $ 6,087 Weighted average common shares outstanding 4,107 4,182 4,110 4,246 Dilutive effect of employee stock plans 97 74 97 82 Dilutive weighted average common shares outstanding 4,204 4,256 4,207 4,328 Basic earnings per share $ 0.55 $ 0.51 $ 1.49 $ 1.43 Diluted earnings per share $ 0.53 $ 0.50 $ 1.45 $ 1.41 Shares subject to anti-dilutive restricted stock-based awards and stock options excluded from calculation (1) 76 67 75 62 (1) These weighted shares relate to anti-dilutive restricted stock-based awards and stock options as calculated using the treasury stock method and could be dilutive in the future.

BASIS OF PRESENTATION AND REC34

BASIS OF PRESENTATION AND RECENT ACCOUNTING PRONOUNCEMENTS Narrative (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Feb. 28, 2017	Feb. 29, 2016	Feb. 28, 2017	Feb. 29, 2016	Jun. 01, 2016	May 31, 2016
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]
Increase in net cash provided by operating activities			$ 9,660	$ 9,892
Reduction to retained earnings	$ (25,576)		$ (25,576)			$ (23,888)
Restricted cash and cash equivalent description			Restricted cash that was included within cash and cash equivalents as presented within our condensed consolidated balance sheets as of February 28, 2017 and May 31, 2016 and our condensed consolidated statements of cash flows for the nine months ended February 28, 2017 and February 29, 2016 was nominal.
Acquisition Related and Other Expenses [Abstract]
Acquisition related benefit				19
Sales of Financing Receivables [Narrative] [Abstract]
Sales of financing receivables	$ 296	$ 304	$ 1,300	1,500
ASU 2016-09 [Member]
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]
Increase in net cash provided by operating activities				$ 61
Increase to additional paid in capital					$ 9
Increase to deferred tax assets					3
Reduction to retained earnings					$ 6

BASIS OF PRESENTATION AND REC35

BASIS OF PRESENTATION AND RECENT ACCOUNTING PRONOUNCEMENTS (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Feb. 28, 2017	Feb. 29, 2016	Feb. 28, 2017	Feb. 29, 2016
Acquisition Related and Other Expenses [Abstract]
Transitional and other employee related costs	$ 15	$ 8	$ 31	$ 40
Stock-based compensation	22	0	33	3
Professional fees and other, net	(2)	1	26	10
Business combination adjustments, net	(5)	2	(6)	(18)
Total acquisition related and other expenses	30	11	84	35
Non-Operating Income, net [Abstract]
Interest income	197	141	578	382
Foreign currency losses, net	(20)	(15)	(102)	(68)
Noncontrolling interests in income	(20)	(36)	(95)	(95)
Other income (loss), net	32	(25)	56	(40)
Total non-operating income, net	$ 189	$ 65	$ 437	$ 179

ACQUISITIONS Narrative (Details

ACQUISITIONS Narrative (Details) - USD ($) $ / shares in Units, $ in Millions	9 Months Ended
	Feb. 28, 2017	Feb. 29, 2016	Aug. 18, 2016	May 31, 2016
Acquisition [Line Items]
Fair values of restricted stock-based awards and stock options assumed in connection with acquisitions	$ 90	$ 0
Goodwill, net	$ 42,504			$ 34,590
NetSuite Inc. [Member] | Related Party [Member]
Acquisition [Line Items]
Merger agreement date	Jul. 28, 2016
Business acquisition per share price	$ 109		$ 109
Business Combination Reason For Business Combination	We acquired NetSuite to, among other things, expand our cloud software as a service offerings with a complementary set of cloud ERP and related cloud software applications for customers.
Percentage of shares owned	40.00%
Total purchase price	$ 9,080
Cash portion of purchase price	9,000
Fair values of restricted stock-based awards and stock options assumed in connection with acquisitions	78
Intangible assets	3,157
Goodwill, net	6,713
Other Fiscal 2017 and Fiscal 2016 Acquisitions [Member]
Acquisition [Line Items]
Total purchase price	2,100
Cash portion of purchase price	2,100
Fair values of restricted stock-based awards and stock options assumed in connection with acquisitions	12
Net tangible assets	196
Intangible assets	698
Goodwill, net	$ 1,200
Materiality of acquisitions individually or in the aggregate	These acquisitions were not significant individually or in the aggregate.

FAIR VALUES OF NET ASSETS ACQUI

FAIR VALUES OF NET ASSETS ACQUIRED FROM NETSUITE (Details) - USD ($) $ in Millions	9 Months Ended
	Feb. 28, 2017	May 31, 2016
Acquisition [Line Items]
Goodwill, net	$ 42,504	$ 34,590
NetSuite Inc. [Member] | Related Party [Member]
Acquisition [Line Items]
Cash and cash equivalents	481
Trade receivables, net	32
Other assets	111
Intangible assets	3,157
Goodwill, net	6,713
Accounts payable and other liabilities	(132)
Deferred revenues	(163)
Debt	(342)
Deferred tax liabilities, net	(777)
Total purchase price	$ 9,080

ACQUISITIONS - UNAUDITED PRO FO

ACQUISITIONS - UNAUDITED PRO FORMA FINANCIAL INFORMATION (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		9 Months Ended
	Feb. 28, 2017	Feb. 29, 2016	Feb. 28, 2017	Feb. 29, 2016
Acquisitions Proforma [Abstract]
Total revenues	$ 9,221	$ 9,306	$ 27,313	$ 27,295
Net income	$ 2,228	$ 1,932	$ 5,797	$ 5,454
Basic earnings per share (in dollars per share)	$ 0.54	$ 0.46	$ 1.41	$ 1.28
Diluted earnings per share (in dollars per share)	$ 0.53	$ 0.45	$ 1.38	$ 1.26

FAIR VALUE MEASUREMENTS (Detail

FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Millions	Feb. 28, 2017	May 31, 2016
Assets [Abstract]
Corporate debt securities and other	$ 38,440	$ 35,488
Commercial paper debt securities	4,327	2,155
Money market funds	2,002	3,750
Derivative financial instruments	23	122
Total assets	44,792	41,515
Liabilities [Abstract]
Derivative financial instruments	262	218
Fair Value Measurements Using Input Types Level 1 [Member]
Assets [Abstract]
Corporate debt securities and other	235	393
Commercial paper debt securities	0	0
Money market funds	2,002	3,750
Derivative financial instruments	0	0
Total assets	2,237	4,143
Liabilities [Abstract]
Derivative financial instruments	0	0
Fair Value Measurements Using Input Types Level 2 [Member]
Assets [Abstract]
Corporate debt securities and other	38,205	35,095
Commercial paper debt securities	4,327	2,155
Money market funds	0	0
Derivative financial instruments	23	122
Total assets	42,555	37,372
Liabilities [Abstract]
Derivative financial instruments	$ 262	$ 218

FAIR VALUE MEASUREMENTS Narrati

FAIR VALUE MEASUREMENTS Narrative (Details) - USD ($) $ in Millions	9 Months Ended
	Feb. 28, 2017	May 31, 2016
Marketable security investments maturity information [Abstract]
Maturity of marketable security investments	As of February 28, 2017 and May 31, 2016, approximately 43% and 28%, respectively, of our marketable securities investments mature within one year and 57% and 72%, respectively, mature within one to six years.
Percentage of marketable securities investments mature within one year	43.00%	28.00%
Percentage of marketable securities investments mature within one to six years	57.00%	72.00%
Short and Long Term Debt [Abstract]
Short-term borrowings	$ 3,498	$ 3,750
Senior notes	54,000	40,100
Fair Value Measurements Using Input Types Level 2 [Member]
Liabilities [Abstract]
Total debt fair value	$ 55,800	$ 43,200

INVENTORIES (Details)

INVENTORIES (Details) - USD ($) $ in Millions	Feb. 28, 2017	May 31, 2016
Inventory Net [Abstract]
Raw materials	$ 244	$ 95
Work-in-process	46	31
Finished goods	101	86
Total	$ 391	$ 212

INTANGIBLE ASSETS (Details)

INTANGIBLE ASSETS (Details) - USD ($) $ in Millions		3 Months Ended		9 Months Ended
		Feb. 28, 2017	Feb. 29, 2016	Feb. 28, 2017	Feb. 29, 2016	May 31, 2016
Acquired Finite-Lived Intangible Assets [Line Items]
Intangible Assets, Gross		$ 15,421		$ 15,421		$ 11,566
Additions				3,855
Accumulated Amortization		(7,633)		(7,633)		(6,623)
Expense		(397)	$ (408)	(1,010)	$ (1,283)
Intangible Assets, Net		7,788		$ 7,788		4,943
Weighted Average Useful Life (in years)	[1]			9 years
Developed technology [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Intangible Assets, Gross		5,306		$ 5,306		3,661
Additions				1,645
Accumulated Amortization		(2,338)		(2,338)		(1,876)
Expense				(462)
Intangible Assets, Net		2,968		$ 2,968		1,785
Weighted Average Useful Life (in years)	[1]			7 years
SaaS, PaaS and IaaS agreements and related relationships [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Intangible Assets, Gross		4,118		$ 4,118		2,034
Additions				2,084
Accumulated Amortization		(955)		(955)		(704)
Expense				(251)
Intangible Assets, Net		3,163		$ 3,163		1,330
Weighted Average Useful Life (in years)	[1]			10 years
Software support agreements and related relationships [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Intangible Assets, Gross		2,419		$ 2,419		2,419
Additions				0
Accumulated Amortization		(1,381)		(1,381)		(1,287)
Expense				(94)
Intangible Assets, Net		1,038		1,038		1,132
Other Intangible Assets
Acquired Finite-Lived Intangible Assets [Line Items]
Intangible Assets, Gross		3,578		3,578		3,452
Additions				126
Accumulated Amortization		(2,959)		(2,959)		(2,756)
Expense				(203)
Intangible Assets, Net		$ 619		$ 619		$ 696
Weighted Average Useful Life (in years)	[1]			9 years
[1]	Represents weighted-average useful lives of intangible assets acquired during fiscal 2017

INTANGIBLE ASSETS AND GOODWIL43

INTANGIBLE ASSETS AND GOODWILL Narrative (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Feb. 28, 2017	Feb. 29, 2016	Feb. 28, 2017	Feb. 29, 2016
Goodwill [Line Items]
Amortization of intangible assets	$ 397	$ 408	$ 1,010	$ 1,283
NetSuite Inc. [Member]
Goodwill [Line Items]
Goodwill not allocated	$ 6,700		$ 6,700

INTANGIBLE ASSETS AMORTIZATION

INTANGIBLE ASSETS AMORTIZATION (Details) - USD ($) $ in Millions	Feb. 28, 2017	May 31, 2016
Finite lived intangible assets future amortization expense [Abstract]
Remainder of fiscal 2017	$ 402
Fiscal 2,018	1,362
Fiscal 2,019	1,248
Fiscal 2,020	1,058
Fiscal 2,021	883
Fiscal 2,022	779
Thereafter	2,056
Intangible Assets, Net	$ 7,788	$ 4,943

GOODWILL (Details)

GOODWILL (Details) $ in Millions	9 Months Ended
	Feb. 28, 2017USD ($)
Goodwill [Line Items]
Balances at period start	$ 34,590
Goodwill from acquisitions	7,935
Goodwill adjustments, net	(21)	[1]
Balances at period end	42,504
Cloud Software and On-Premise Software [Member]
Goodwill [Line Items]
Balances at period start	15,747
Goodwill from acquisitions	863
Goodwill adjustments, net	(287)	[1]
Balances at period end	16,323
Software License Updates and Product Support [Member]
Goodwill [Line Items]
Balances at period start	14,439
Goodwill from acquisitions	0
Goodwill adjustments, net	(1)	[1]
Balances at period end	14,438
Hardware Support [Member]
Goodwill [Line Items]
Balances at period start	2,367
Goodwill from acquisitions	0
Goodwill adjustments, net	0	[1]
Balances at period end	2,367
Consulting [Member]
Goodwill [Line Items]
Balances at period start	1,759
Goodwill from acquisitions	0
Goodwill adjustments, net	(1)	[1]
Balances at period end	1,758
Other, net [Member]
Goodwill [Line Items]
Balances at period start	278	[2]
Goodwill from acquisitions	7,072	[2]
Goodwill adjustments, net	268	[1],[2]
Balances at period end	$ 7,618	[2]
[1]	Pursuant to our business combinations accounting policy, we recorded goodwill adjustments for the effects on goodwill of changes to net assets acquired during the period that such a change is identified, provided that any such change is within the measurement period (up to one year from the date of the acquisition).
[2]	Represents goodwill allocated to our other operating segments and, as of February 28, 2017, approximately $6.7 billion of NetSuite goodwill that will be allocated based upon the finalization of purchase accounting valuations.

NOTES PAYABLE AND OTHER BORRO46

NOTES PAYABLE AND OTHER BORROWINGS Narrative (Details) - USD ($) $ in Millions	Jun. 27, 2016	Nov. 30, 2016	Feb. 28, 2017	Jul. 07, 2016	May 31, 2016
Notes Payable Other Borrowings [Line Items]
Senior notes, par value				$ 14,000
Debt instrument redemption description			We may redeem some or all of the senior notes of each series prior to their maturity, subject to certain restrictions, and the payment of an applicable make-whole premium in certain instances.
Debt-related covenants			We were in compliance with all debt-related covenants at February 28, 2017.
Short-term borrowings			$ 3,498		$ 3,750
2016 Credit Agreement [Member]
Notes Payable Other Borrowings [Line Items]
Revolving credit agreement issuance date			May 23, 2016
Short-term borrowings					$ 3,750
Repayments of credit agreements	$ 3,750
Revolving Credit Agreement			In May 2016, we borrowed $3.8 billion pursuant to three revolving credit agreements with JPMorgan Chase Bank, N.A., as initial lender and administrative agent (the 2016 Credit Agreements). In June 2016, we repaid the $3.8 billion and the 2016 Credit Agreements expired pursuant to their terms.
Other Loans Payable [Member]
Notes Payable Other Borrowings [Line Items]
Other loans payable		$ 113
Debt instrument interest rate percentage		3.53%
Debt instrument maturity date		Aug. 1, 2025
Other Notes Payable [Member]
Notes Payable Other Borrowings [Line Items]
Debt instrument fair value		$ 342
Other notes payable		$ 310

NOTES PAYABLE AND OTHER BORRO47

NOTES PAYABLE AND OTHER BORROWINGS (Details) - USD ($) $ in Millions	9 Months Ended
	Feb. 28, 2017	Jul. 07, 2016
Notes Payable Other Borrowings [Line Items]
Fixed rate senior notes	$ 14,000
Unamortized discount/issuance costs	(63)
Total fixed rate senior notes, net	13,937
Senior notes, par value		$ 14,000
1.90% senior notes due September 2021 [Member]
Notes Payable Other Borrowings [Line Items]
Fixed rate senior notes	$ 4,250
Date of issuance	Jul. 7, 2016
Effective interest rate	1.94%
Senior notes, par value	$ 4,250
Stated interest rate percentage	1.90%
Maturity date	Sep. 15, 2021
2.40% senior notes due September 2023 [Member]
Notes Payable Other Borrowings [Line Items]
Fixed rate senior notes	$ 2,500
Date of issuance	Jul. 7, 2016
Effective interest rate	2.40%
Senior notes, par value	$ 2,500
Stated interest rate percentage	2.40%
Maturity date	Sep. 15, 2023
2.65% senior notes due July 2026 [Member]
Notes Payable Other Borrowings [Line Items]
Fixed rate senior notes	$ 3,000
Date of issuance	Jul. 7, 2016
Effective interest rate	2.69%
Senior notes, par value	$ 3,000
Stated interest rate percentage	2.65%
Maturity date	Jul. 15, 2026
3.85% senior notes due July 2036 [Member]
Notes Payable Other Borrowings [Line Items]
Fixed rate senior notes	$ 1,250
Date of issuance	Jul. 7, 2016
Effective interest rate	3.85%
Senior notes, par value	$ 1,250
Stated interest rate percentage	3.85%
Maturity date	Jul. 15, 2036
4.00% senior notes due July 2046 [Member]
Notes Payable Other Borrowings [Line Items]
Fixed rate senior notes	$ 3,000
Date of issuance	Jul. 7, 2016
Effective interest rate	4.00%
Senior notes, par value	$ 3,000
Stated interest rate percentage	4.00%
Maturity date	Jul. 15, 2046

RESTRUCTURING ACTIVITIES (Detai

RESTRUCTURING ACTIVITIES (Details) - USD ($) $ in Millions		3 Months Ended		9 Months Ended
		Feb. 28, 2017	Feb. 29, 2016	Feb. 28, 2017	Feb. 29, 2016
Restructuring reserve [Line Items]
Restructuring expenses		$ 161	$ 115	$ 346	$ 293
Accrued at period start	[1],[2]			283
Initial Costs	[1],[3]			378
Adjustments to Cost	[1],[4]			(32)
Cash Payments	[1]			(351)
Others	[1],[5]			(12)
Accrued at period end	[1],[2]	266		266
Fiscal 2017 Oracle Restructuring [Member]
Restructuring reserve [Line Items]
Total expected program costs	[1]	615		615
Restructuring expenses				363
Remaining expenses to incur		252		$ 252
Expected completion date				May 31, 2018
Accrued at period start	[1],[2]			$ 0
Initial Costs	[1],[3]			370
Adjustments to Cost	[1],[4]			(7)
Cash Payments	[1]			(198)
Others	[1],[5]			4
Accrued at period end	[1],[2]	169		169
Total Costs Accrued to Date	[1]	363		363
Fiscal 2017 Oracle Restructuring [Member] | Cloud software and on-premise software [Member]
Restructuring reserve [Line Items]
Total expected program costs	[1]	151		151
Accrued at period start	[1],[2]			0
Initial Costs	[1],[3]			106
Adjustments to Cost	[1],[4]			(4)
Cash Payments	[1]			(57)
Others	[1],[5]			1
Accrued at period end	[1],[2]	46		46
Total Costs Accrued to Date	[1]	102		102
Fiscal 2017 Oracle Restructuring [Member] | Software license updates and product support [Member]
Restructuring reserve [Line Items]
Total expected program costs	[1]	31		31
Accrued at period start	[1],[2]			0
Initial Costs	[1],[3]			23
Adjustments to Cost	[1],[4]			0
Cash Payments	[1]			(12)
Others	[1],[5]			4
Accrued at period end	[1],[2]	15		15
Total Costs Accrued to Date	[1]	23		23
Fiscal 2017 Oracle Restructuring [Member] | Hardware business [Member]
Restructuring reserve [Line Items]
Total expected program costs	[1]	161		161
Accrued at period start	[1],[2]			0
Initial Costs	[1],[3]			67
Adjustments to Cost	[1],[4]			(3)
Cash Payments	[1]			(37)
Others	[1],[5]			(1)
Accrued at period end	[1],[2]	26		26
Total Costs Accrued to Date	[1]	64		64
Fiscal 2017 Oracle Restructuring [Member] | Services business [Member]
Restructuring reserve [Line Items]
Total expected program costs	[1]	76		76
Accrued at period start	[1],[2]			0
Initial Costs	[1],[3]			44
Adjustments to Cost	[1],[4]			0
Cash Payments	[1]			(23)
Others	[1],[5]			0
Accrued at period end	[1],[2]	21		21
Total Costs Accrued to Date	[1]	44		44
Fiscal 2017 Oracle Restructuring [Member] | Other [Member]
Restructuring reserve [Line Items]
Total expected program costs	[1]	196		196
Accrued at period start	[1],[2]			0
Initial Costs	[1],[3]			130
Adjustments to Cost	[1],[4]			0
Cash Payments	[1]			(69)
Others	[1],[5]			0
Accrued at period end	[1],[2]	61		61
Total Costs Accrued to Date	[1]	130		130
Other Restructuring Plans [Member]
Restructuring reserve [Line Items]
Accrued at period start	[1],[2],[6]			283
Initial Costs	[1],[3],[6]			8
Adjustments to Cost	[1],[4],[6]			(25)
Cash Payments	[1],[6]			(153)
Others	[1],[5],[6]			(16)
Accrued at period end	[1],[2],[6]	$ 97		$ 97
[1]	Restructuring costs recorded for individual line items primarily related to employee severance costs.
[2]	The balances at February 28, 2017 and May 31, 2016 included $247 million and $255 million, respectively, recorded in other current liabilities, and $19 million and $28 million, respectively, recorded in other non-current liabilities.
[3]	Costs recorded for the respective restructuring plans during the current period presented.
[4]	All plan adjustments were changes in estimates whereby increases and decreases in costs were generally recorded to operating expenses in the period of adjustments.
[5]	Represents foreign currency translation and certain other adjustments.
[6]	Other restructuring plans presented in the table above included condensed information for other Oracle based plans (primarily the Fiscal 2015 Oracle Restructuring Plan) and other plans associated with certain of our acquisitions whereby we continued to make cash outlays to settle obligations under these plans during the period presented but for which the periodic impact to our condensed consolidated statements of operations was not significant.

RESTRUCTURING ACTIVITIES Narrat

RESTRUCTURING ACTIVITIES Narrative (Details) - USD ($) $ in Millions	Feb. 28, 2017	May 31, 2016
Restructuring Reserve [Abstract]
Accrued restructuring liabilities, current (in other current liabilities)	$ 247	$ 255
Accrued restructuring liabilities, non-current (in other non-current liabilities)	$ 19	$ 28

DEFERRED REVENUES (Details)

DEFERRED REVENUES (Details) - USD ($) $ in Millions	Feb. 28, 2017	May 31, 2016
Deferred Revenues [Line Items]
Deferred revenues, current	$ 7,388	$ 7,655
Deferred revenues, non-current (in other non-current liabilities)	560	536
Total deferred revenues	7,948	8,191
Software license updates and product support [Member]
Deferred Revenues [Line Items]
Deferred revenues, current	5,163	5,864
Cloud SaaS, PaaS and IaaS [Member]
Deferred Revenues [Line Items]
Deferred revenues, current	1,169	705
Hardware support and other [Member]
Deferred Revenues [Line Items]
Deferred revenues, current	595	675
Services business [Member]
Deferred Revenues [Line Items]
Deferred revenues, current	366	339
New software licenses [Member]
Deferred Revenues [Line Items]
Deferred revenues, current	$ 95	$ 72

DERIVATIVE FINANCIAL INSTRUME51

DERIVATIVE FINANCIAL INSTRUMENTS Narrative (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Feb. 28, 2017	Feb. 29, 2016	Feb. 28, 2017	Feb. 29, 2016	May 31, 2016
Foreign Currency Forward Contracts Not Designated as Hedges (Narrative) [Abstract]
Net gains (losses) related to forward contracts	$ (74)	$ 93	$ (53)	$ 163
Foreign Currency Forward Contracts Not Designated as Hedges [Abstract]
Description of foreign currency forward contracts not designated as hedges			We also held certain foreign currency contracts that were not designated as hedges pursuant to ASC 815. The notional amounts of such forward contracts we held to purchase U.S. Dollars in exchange for other major international currencies were $2.3 billion and $2.7 billion, respectively, and the notional amount of forward contracts we held to sell U.S. Dollars in exchange for other major international currencies were $2.0 billion and $2.0 billion, respectively. The fair values of our outstanding foreign currency forward contracts were nominal as of February 28, 2017 and May 31, 2016.
Foreign Currency Forward Contracts Not Designated as Hedges [Member] | Forward contracts held to purchase U.S. Dollars [Member]
Foreign Currency Forward Contracts Not Designated as Hedges (Narrative) [Abstract]
Notional amounts of forward contracts	2,300		$ 2,300		$ 2,700
Foreign Currency Forward Contracts Not Designated as Hedges [Member] | Forward contracts held to sell U.S. Dollars [Member]
Foreign Currency Forward Contracts Not Designated as Hedges (Narrative) [Abstract]
Notional amounts of forward contracts	$ 2,000		$ 2,000		$ 2,000

DERIVATIVE FINANCIAL INSTRUME52

DERIVATIVE FINANCIAL INSTRUMENTS (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Feb. 28, 2017	Feb. 29, 2016	Feb. 28, 2017	Feb. 29, 2016	May 31, 2016
Fair Values of Derivative and Non-Derivative Instruments Designated as Hedges in Condensed Consolidated Balance Sheets [Abstract]
Fair value, assets	$ 23		$ 23		$ 122
Fair value, liabilities	(262)		(262)		(218)
Interest rate swap agreements [Member] | Interest expense [Member]
Effects of Derivative and Non-Derivative Instruments Designated as Hedges on Income and Other Comprehensive Income (OCI) or Loss (OCL) [Abstract]
Amount of Gain (Loss) Recognized in Income on Derivative	(31)	$ 76	(99)	$ 90
Amount of Gain (Loss) on Hedged Item Recognized in Income Attributable to Risk Being Hedged	31	(76)	99	(90)
Fair value hedges [Member] | Interest rate swap agreements [Member] | Other assets [Member]
Fair Values of Derivative and Non-Derivative Instruments Designated as Hedges in Condensed Consolidated Balance Sheets [Abstract]
Fair value, assets	23		23		122
Cash flow hedges [Member] | Cross-currency swap agreements [Member]
Effects of Derivative and Non-Derivative Instruments Designated as Hedges on Income and Other Comprehensive Income (OCI) or Loss (OCL) [Abstract]
Amount of Gain (Loss) Recognized in Accumulated OCI or OCL (Effective Portion)	6	29	(44)	(16)
Cash flow hedges [Member] | Cross-currency swap agreements [Member] | Non-operating income, net [Member]
Effects of Derivative and Non-Derivative Instruments Designated as Hedges on Income and Other Comprehensive Income (OCI) or Loss (OCL) [Abstract]
Amount of Gain (Loss) Reclassified from Accumulated OCI or OCL into Income (Effective Portion)	2	52	(69)	21
Cash flow hedges [Member] | Cross-currency swap agreements [Member] | Other non-current liabilities [Member]
Fair Values of Derivative and Non-Derivative Instruments Designated as Hedges in Condensed Consolidated Balance Sheets [Abstract]
Fair value, liabilities	(262)		(262)		(218)
Net investment hedge [Member] | Foreign currency borrowings [Member]
Effects of Derivative and Non-Derivative Instruments Designated as Hedges on Income and Other Comprehensive Income (OCI) or Loss (OCL) [Abstract]
Amount of Gain (Loss) Recognized in Accumulated OCI or OCL (Effective Portion)	(1)	(31)	42	(13)
Amount of Gain (Loss) Reclassified from Accumulated OCI or OCL into Income (Effective Portion)	0	$ 0	0	$ 0
Net investment hedge [Member] | Foreign currency borrowings [Member] | Notes payable, non-current [Member]
Fair Values of Derivative and Non-Derivative Instruments Designated as Hedges in Condensed Consolidated Balance Sheets [Abstract]
Fair value, debt	$ (951)		$ (951)		$ (991)

STOCKHOLDERS' EQUITY Narrative

STOCKHOLDERS' EQUITY Narrative (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	Mar. 14, 2017	Feb. 28, 2017	Feb. 29, 2016	Feb. 28, 2017	Feb. 29, 2016
Stock Repurchases [Abstract]
Amount available for future repurchases		$ 5,800		$ 5,800
Repurchases of common stock (in shares)				74.6	222.7
Repurchased amount				$ 3,000	$ 8,400
Repurchased shares that were not settled (in shares)				0.6
Repurchased amount that was not settled				$ 25
Dividends on Common Stock [Abstract]
Dividends per share, declared and paid (in dollars per share)		$ 0.15	$ 0.15	$ 0.45	$ 0.45
Stock-Based Compensation Expense and Valuations of Stock Awards [Abstract]
Stock options granted (in shares)				21
Restricted stock-based awards granted (in shares)				52
Forfeitures and cancellations (in shares)				10
Service-based restricted stock units [Member]
Stock-Based Compensation Expense and Valuations of Stock Awards [Abstract]
Restricted stock-based awards granted (in shares)				50
Performance-based restricted stock units [Member]
Stock-Based Compensation Expense and Valuations of Stock Awards [Abstract]
Restricted stock-based awards granted (in shares)				2
Other stock options [Member]
Stock-Based Compensation Expense and Valuations of Stock Awards [Abstract]
Expiration date				10 years
Chief Executive Officers and Chief Technology Officer [Member]
Stock-Based Compensation Expense and Valuations of Stock Awards [Abstract]
Stock options granted (in shares)				7
Expiration date				5 years
Subsequent Event [Member]
Dividends on Common Stock [Abstract]
Increase in quarterly cash dividend per share	$ 0.04
Dividends declared per share of outstanding common stock (in dollars per share)	$ 0.19
Dividend payable date	Apr. 26, 2017
Dividend record date	Apr. 12, 2017

STOCKHOLDERS' EQUITY (Details)

STOCKHOLDERS' EQUITY (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Feb. 28, 2017	Feb. 29, 2016	Feb. 28, 2017	Feb. 29, 2016
Stock-Based Compensation Expense and Valuations of Stock Awards [Abstract]
Total stock-based compensation	$ 371	$ 260	$ 1,017	$ 768
Sales and marketing [Member]
Stock-Based Compensation Expense and Valuations of Stock Awards [Abstract]
Total stock-based compensation	96	57	228	163
Cloud software as a service and platform as a service [Member]
Stock-Based Compensation Expense and Valuations of Stock Awards [Abstract]
Total stock-based compensation	6	4	17	13
Cloud infrastructure as a service [Member]
Stock-Based Compensation Expense and Valuations of Stock Awards [Abstract]
Total stock-based compensation	1	1	3	3
Software license updates and product support [Member]
Stock-Based Compensation Expense and Valuations of Stock Awards [Abstract]
Total stock-based compensation	6	6	18	18
Hardware products [Member]
Stock-Based Compensation Expense and Valuations of Stock Awards [Abstract]
Total stock-based compensation	2	1	6	4
Hardware Support [Member]
Stock-Based Compensation Expense and Valuations of Stock Awards [Abstract]
Total stock-based compensation	1	1	3	4
Services business [Member]
Stock-Based Compensation Expense and Valuations of Stock Awards [Abstract]
Total stock-based compensation	14	7	31	22
Research and development [Member]
Stock-Based Compensation Expense and Valuations of Stock Awards [Abstract]
Total stock-based compensation	191	154	574	452
General and administrative [Member]
Stock-Based Compensation Expense and Valuations of Stock Awards [Abstract]
Total stock-based compensation	32	29	104	86
Acquisition related and other [Member]
Stock-Based Compensation Expense and Valuations of Stock Awards [Abstract]
Total stock-based compensation	$ 22	$ 0	$ 33	$ 3

INCOME TAXES (Details)

INCOME TAXES (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Feb. 28, 2017	Feb. 29, 2016	Feb. 28, 2017	Feb. 29, 2016	May 31, 2016
Income Tax Examination [Line Items]
Effective income tax rate	17.00%	21.60%	21.30%	21.00%
Net deferred tax assets	$ 134		$ 134		$ 1,100
Domestic Country [Member]
Income Tax Examination [Line Items]
Income tax examinations			Domestically, U.S. federal and state taxing authorities are currently examining income tax returns of Oracle and various acquired entities for years through fiscal 2015. Our U.S. federal income tax returns have been examined for all years prior to fiscal 2007, 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 2004, and we are no longer subject to audit for those periods.
Foreign Country [Member]
Income Tax Examination [Line Items]
Income tax examinations			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 1997.

SEGMENT INFORMATION Narrative (

SEGMENT INFORMATION Narrative (Details)	9 Months Ended
	Feb. 28, 2017BusinessSegment
Segment reporting information [Line Items]
Number of businesses | Business	3
Cloud and on-premise software business [Member]
Segment reporting information [Line Items]
Number of operating segments	3
Total hardware business [Member]
Segment reporting information [Line Items]
Number of operating segments	2

SEGMENT INFORMATION (Details)

SEGMENT INFORMATION (Details) - USD ($) $ in Millions		3 Months Ended		9 Months Ended
		Feb. 28, 2017	Feb. 29, 2016	Feb. 28, 2017	Feb. 29, 2016
Segment reporting information [Line Items]
Revenues		$ 9,205	$ 9,012	$ 26,835	$ 26,453
Margin		5,582	5,445	16,192	15,869
Total for operating segments [Member]
Segment reporting information [Line Items]
Revenues	[1]	9,274	9,014	26,957	26,461
Expenses		3,692	3,569	10,765	10,592
Margin	[2]	5,582	5,445	16,192	15,869
Total for operating segments [Member] | Total cloud and on-premise software business [Member]
Segment reporting information [Line Items]
Revenues	[1]	7,434	7,086	21,455	20,556
Expenses		2,424	2,235	7,001	6,524
Margin	[2]	5,010	4,851	14,454	14,032
Total for operating segments [Member] | Total cloud and on-premise software business [Member] | Cloud Software and On-Premise Software [Member]
Segment reporting information [Line Items]
Revenues	[1]	2,494	2,265	6,598	6,030
Cloud software as a service and platform as a service expenses		369	284	1,026	822
Sales, marketing and distribution expenses		1,666	1,574	4,873	4,569
Margin	[2]	459	407	699	639
Total for operating segments [Member] | Total cloud and on-premise software business [Member] | Cloud infrastructure as a service [Member]
Segment reporting information [Line Items]
Revenues		178	152	525	477
Cloud infrastructure as a service expenses		122	84	323	256
Sales, marketing and distribution expenses		14	17	46	54
Margin	[2]	42	51	156	167
Total for operating segments [Member] | Total cloud and on-premise software business [Member] | Software license updates and product support [Member]
Segment reporting information [Line Items]
Revenues	[1]	4,762	4,669	14,332	14,049
Software license updates and product support expenses		253	276	733	823
Margin	[2]	4,509	4,393	13,599	13,226
Total for operating segments [Member] | Total hardware business [Member]
Segment reporting information [Line Items]
Revenues	[1]	1,028	1,135	3,038	3,386
Expenses		623	704	1,786	2,092
Margin	[2]	405	431	1,252	1,294
Total for operating segments [Member] | Total hardware business [Member] | Hardware products [Member]
Segment reporting information [Line Items]
Revenues		520	604	1,478	1,746
Hardware products expenses		288	337	769	963
Sales, marketing and distribution expenses		195	202	597	625
Margin	[2]	37	65	112	158
Total for operating segments [Member] | Total hardware business [Member] | Hardware Support [Member]
Segment reporting information [Line Items]
Revenues	[1]	508	531	1,560	1,640
Hardware support expenses		140	165	420	504
Margin	[2]	368	366	1,140	1,136
Total for operating segments [Member] | Total services business [Member]
Segment reporting information [Line Items]
Revenues		812	793	2,464	2,519
Services expenses		645	630	1,978	1,976
Margin	[2]	$ 167	$ 163	$ 486	$ 543
[1]	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, respectively, that would have otherwise been recorded by the acquired businesses as independent entities but were not recognized in our condensed consolidated statements of operations for the periods presented. See Note 8 for an explanation of these adjustments and the table below for a reconciliation of our total operating segment revenues to our total revenues as reported in our condensed consolidated statements of operations.
[2]	The margins reported reflect only the direct controllable costs of each line of business and do not include allocations of product development, 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 non-operating income, net. Certain fiscal 2016 balances have been reclassified to conform to the current year presentation. Such reclassifications did not affect consolidated revenues or operating income.

SEGMENT INFORMATION RECONCILIAT

SEGMENT INFORMATION RECONCILIATION (Details) - USD ($) $ in Millions		3 Months Ended		9 Months Ended
		Feb. 28, 2017	Feb. 29, 2016	Feb. 28, 2017	Feb. 29, 2016
Reconciliation of Operating Segment Revenues to Revenues [Abstract]
Total revenues		$ 9,205	$ 9,012	$ 26,835	$ 26,453
Cloud software as a service and platform as a service revenues	[1]	(69)	(2)	(120)	(6)
Software license updates and product support revenues	[1]	0	0	(1)	(1)
Hardware support revenues	[1]	0	0	(1)	(1)
Reconciliation of Total Operating Segment Margin to Income Before Provision for Income Taxes [Abstract]
Total margin for operating segments		5,582	5,445	16,192	15,869
Cloud software as a service and platform as a service revenues	[1]	(69)	(2)	(120)	(6)
Software license updates and product support revenues	[1]	0	0	(1)	(1)
Hardware support revenues	[1]	0	0	(1)	(1)
Research and development		(1,285)	(1,219)	(3,835)	(3,652)
Corporate, general and administrative and information technology expenses		(332)	(403)	(1,175)	(1,197)
Amortization of intangible assets		(397)	(408)	(1,010)	(1,283)
Acquisition related and other		(30)	(11)	(84)	(35)
Restructuring		(161)	(115)	(346)	(293)
Stock-based compensation		(349)	(260)	(984)	(765)
Interest expense		(450)	(360)	(1,317)	(1,105)
Non-operating income, net		189	65	437	179
Income before provision for income taxes		2,698	2,732	7,756	7,710
Total for operating segments Member
Reconciliation of Operating Segment Revenues to Revenues [Abstract]
Total revenues	[2]	9,274	9,014	26,957	26,461
Reconciliation of Total Operating Segment Margin to Income Before Provision for Income Taxes [Abstract]
Total margin for operating segments	[3]	$ 5,582	$ 5,445	$ 16,192	$ 15,869
[1]	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 condensed consolidated statements of operations for the periods presented due to business combination accounting requirements.
[2]	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, respectively, that would have otherwise been recorded by the acquired businesses as independent entities but were not recognized in our condensed consolidated statements of operations for the periods presented. See Note 8 for an explanation of these adjustments and the table below for a reconciliation of our total operating segment revenues to our total revenues as reported in our condensed consolidated statements of operations.
[3]	The margins reported reflect only the direct controllable costs of each line of business and do not include allocations of product development, 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 non-operating income, net. Certain fiscal 2016 balances have been reclassified to conform to the current year presentation. Such reclassifications did not affect consolidated revenues or operating income.

EARNINGS PER SHARE (Details)

EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions		3 Months Ended		9 Months Ended
		Feb. 28, 2017	Feb. 29, 2016	Feb. 28, 2017	Feb. 29, 2016
Earnings Per Share [Abstract]
Net income		$ 2,239	$ 2,142	$ 6,103	$ 6,087
Weighted average common shares outstanding		4,107	4,182	4,110	4,246
Dilutive effect of employee stock plans		97	74	97	82
Dilutive weighted average common shares outstanding		4,204	4,256	4,207	4,328
Basic earnings per share		$ 0.55	$ 0.51	$ 1.49	$ 1.43
Diluted earnings per share		$ 0.53	$ 0.50	$ 1.45	$ 1.41
Shares subject to anti-dilutive restricted stock-based awards and stock options excluded from calculation	[1]	76	67	75	62
[1]	These weighted shares relate to anti-dilutive restricted stock-based awards and stock options as calculated using the treasury stock method and could be dilutive in the future.

LEGAL PROCEEDINGS (Details)

LEGAL PROCEEDINGS (Details) - USD ($)	Jun. 30, 2016	Feb. 28, 2017
Hewlett-Packard Litigation [Member]
Legal Proceedings [Line Items]
Damages awarded, value	$ 3,000,000,000
Damages paid, value	$ 0	$ 0
Inestimable loss related to litigation		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.
Hewlett-Packard Litigation [Member] | Surety Bond [Member]
Legal Proceedings [Line Items]
Guarantor obligations, origin and purpose		Oracle posted certain court-mandated surety bonds with the court in order to proceed with its motion for a new trial and entered into related indemnification agreements with each of the surety bond issuing companies.
Other Litigation [Member]
Legal Proceedings [Line Items]
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.