Oracle (ORCL) 10-Q 15 Sep 20 2021 Q1 Quarterly report Financial data

DOCUMENT AND ENTITY INFORMATION

DOCUMENT AND ENTITY INFORMATION - shares	3 Months Ended
	Aug. 31, 2020	Sep. 04, 2020
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Aug. 31, 2020
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2021
Entity Registrant Name	Oracle Corporation
Entity Central Index Key	0001341439
Current Fiscal Year End Date	--05-31
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding (in shares)		3,007,161,000
Entity File Number	001-35992
Entity Tax Identification Number	54-2185193
Entity Address Postal Zip Code	94065
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Address, Address Line One	500 Oracle Parkway
Entity Address, City or Town	Redwood City
Entity Address State Or Province	CA
City Area Code	650
Local Phone Number	506-7000
Entity Incorporation, State or Country Code	DE
Document Quarterly Report	true
Document Transition Report	false
Common Stock [Member]
Document Information [Line Items]
Title of 12(b) Security	Common Stock, par value $0.01 per share
Trading Symbol	ORCL
Security Exchange Name	NYSE
2.25% senior notes due January 2021 [Member]
Document Information [Line Items]
Title of 12(b) Security	2.25% senior notes due January 2021
Security Exchange Name	NYSE
No Trading Symbol Flag	true
3.125% senior notes due July 2025 [Member]
Document Information [Line Items]
Title of 12(b) Security	3.125% senior notes due July 2025
Security Exchange Name	NYSE
No Trading Symbol Flag	true

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions	Aug. 31, 2020	May 31, 2020
Current assets:
Cash and cash equivalents	$ 27,276	$ 37,239
Marketable securities	15,003	5,818
Trade receivables, net of allowances for doubtful accounts of $457 and $409 as of August 31, 2020 and May 31, 2020, respectively	4,576	5,551
Prepaid expenses and other current assets	3,084	3,532
Total current assets	49,939	52,140
Non-current assets:
Property, plant and equipment, net	6,401	6,244
Intangible assets, net	3,405	3,738
Goodwill, net	43,867	43,769
Deferred tax assets	3,152	3,252
Other non-current assets	6,782	6,295
Total non-current assets	63,607	63,298
Total assets	113,546	115,438
Current liabilities:
Notes payable, current	2,997	2,371
Accounts payable	534	637
Accrued compensation and related benefits	1,390	1,453
Deferred revenues	9,875	8,002
Other current liabilities	3,952	4,737
Total current liabilities	18,748	17,200
Non-current liabilities:
Notes payable and other borrowings, non-current	67,769	69,226
Income taxes payable	12,690	12,463
Other non-current liabilities	4,199	3,832
Total non-current liabilities	84,658	85,521
Commitments and contingencies	0	0
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: 3,014 shares and 3,067 shares as of August 31, 2020 and May 31, 2020, respectively	26,238	26,486
Accumulated deficit	(15,410)	(12,696)
Accumulated other comprehensive loss	(1,337)	(1,716)
Total Oracle Corporation stockholders’ equity	9,491	12,074
Noncontrolling interests	649	643
Total equity	10,140	12,717
Total liabilities and equity	$ 113,546	$ 115,438

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS PARENTHETICAL - USD ($) $ in Millions	Aug. 31, 2020	May 31, 2020
Statement Of Financial Position [Abstract]
Allowance for doubtful accounts receivable	$ 457	$ 409
Preferred stock par value per share	$ 0.01	$ 0.01
Preferred stock shares authorized	1,000,000	1,000,000
Preferred stock shares outstanding	0	0
Common stock par value per share	$ 0.01	$ 0.01
Common stock shares authorized	11,000,000,000	11,000,000,000
Common stock shares outstanding	3,014,000,000	3,067,000,000

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Millions, $ in Millions		3 Months Ended
		Aug. 31, 2020	Aug. 31, 2019
Revenues:
Cloud services and license support		$ 6,947	$ 6,805
Cloud license and on-premise license		886	812
Hardware		814	815
Services		720	786
Total revenues		9,367	9,218
Operating expenses:
Cloud services and license support	[1]	1,011	982
Hardware	[1]	246	272
Services		623	703
Sales and marketing	[1]	1,854	2,018
Research and development		1,589	1,557
General and administrative		295	292
Amortization of intangible assets		345	414
Acquisition related and other		19	25
Restructuring		174	78
Total operating expenses		6,156	6,341
Operating income		3,211	2,877
Interest expense		(614)	(494)
Non-operating (expenses) income, net		(2)	99
Income before provision for income taxes		2,595	2,482
Provision for income taxes		344	345
Net income		$ 2,251	$ 2,137
Earnings per share:
Basic		$ 0.74	$ 0.64
Diluted		$ 0.72	$ 0.63
Weighted average common shares outstanding:
Basic		3,041	3,317
Diluted		3,107	3,410
[1]	Exclusive of amortization of intangible assets, which is shown separately.

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions	3 Months Ended
	Aug. 31, 2020	Aug. 31, 2019
Statement Of Income And Comprehensive Income [Abstract]
Net income	$ 2,251	$ 2,137
Other comprehensive income, net of tax:
Net foreign currency translation gains (losses)	325	(8)
Net unrealized gains on defined benefit plans	46	4
Net unrealized gains on marketable securities	3	85
Net unrealized gains (losses) on cash flow hedges	5	(24)
Total other comprehensive income, net	379	57
Comprehensive income	$ 2,630	$ 2,194

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Millions	Total	Common Stock and Additional Paid in Capital	Accumulated deficit	Other Equity, Net
Balance, beginning of period at May. 31, 2019		$ 26,909	$ (3,496)	$ (1,050)
Other comprehensive income, net	$ 57			57
Common stock issued		316
Stock-based compensation		446
Repurchases of common stock	(5,000)	(707)	(4,293)
Cash dividends declared			(795)
Net income			2,137
Other, net		(514)	1	8
Balance, end of period at Aug. 31, 2019	$ 19,019	26,450	(6,446)	(985)
Cash dividends declared per common share	$ 0.24
Balance, beginning of period at May. 31, 2020	$ 12,717	26,486	(12,696)	(1,073)
Other comprehensive income, net	379			379
Common stock issued		567
Stock-based compensation		428
Repurchases of common stock	(5,000)	(765)	(4,235)
Cash dividends declared			(730)
Net income			2,251
Other, net		(478)	0	6
Balance, end of period at Aug. 31, 2020	$ 10,140	$ 26,238	$ (15,410)	$ (688)
Cash dividends declared per common share	$ 0.24

CONDENSED CONSOLIDATED STATEM_4

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions	3 Months Ended
	Aug. 31, 2020	Aug. 31, 2019
Cash flows from operating activities:
Net income	$ 2,251	$ 2,137
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	356	336
Amortization of intangible assets	345	414
Deferred income taxes	173	(14)
Stock-based compensation	428	446
Other, net	78	60
Changes in operating assets and liabilities, net of effects from acquisitions:
Decrease in trade receivables, net	1,077	1,313
Decrease in prepaid expenses and other assets	380	481
Decrease in accounts payable and other liabilities	(294)	(813)
Decrease in income taxes payable	(586)	(121)
Increase in deferred revenues	1,745	1,761
Net cash provided by operating activities	5,953	6,000
Cash flows from investing activities:
Purchases of marketable securities and other investments	(10,678)	(216)
Proceeds from maturities of marketable securities and other investments	1,459	879
Proceeds from sales of marketable securities	0	12,111
Acquisitions, net of cash acquired	0	(2)
Capital expenditures	(436)	(386)
Net cash (used for) provided by investing activities	(9,655)	12,386
Cash flows from financing activities:
Payments for repurchases of common stock	(4,945)	(5,005)
Proceeds from issuances of common stock	567	316
Shares repurchased for tax withholdings upon vesting of restricted stock-based awards	(478)	(514)
Payments of dividends to stockholders	(730)	(795)
Repayments of borrowings	(1,000)	(1,750)
Other, net	93	(54)
Net cash used for financing activities	(6,493)	(7,802)
Effect of exchange rate changes on cash and cash equivalents	232	(15)
Net (decrease) increase in cash and cash equivalents	(9,963)	10,569
Cash and cash equivalents at beginning of period	37,239	20,514
Cash and cash equivalents at end of period	27,276	31,083
Non-cash financing activities:
Change in unsettled repurchases of common stock	$ 55	$ (5)

BASIS OF PRESENTATION, RECENT A

BASIS OF PRESENTATION, RECENT ACCOUNTING PRONOUNCEMENTS AND OTHER	3 Months Ended
	Aug. 31, 2020
Organization Consolidation And Presentation Of Financial Statements [Abstract]
BASIS OF PRESENTATION, RECENT ACCOUNTING PRONOUNCEMENTS AND OTHER	1. BASIS OF PRESENTATION, RECENT ACCOUNTING PRONOUNCEMENTS AND OTHER Basis of Presentation We have prepared the condensed consolidated financial statements included herein pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (SEC). Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles (GAAP) have been condensed or omitted pursuant to such rules and regulations. However, we believe that the disclosures herein are adequate to ensure the information presented is not misleading. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the notes thereto included in our Annual Report on Form 10-K for the fiscal year ended May 31, 2020. We believe that all necessary adjustments, which consisted only of normal recurring items, have been included in the accompanying financial statements to present fairly the results of the interim periods. The results of operations for the interim periods presented are not necessarily indicative of the operating results to be expected for any subsequent interim period or for our fiscal year ending May 31, 2021. During the first quarter of fiscal 2021, we adopted Accounting Standards Update (ASU) 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments and subsequent amendments to the initial guidance Investments—Equity Securities (Topic 321), Investments—Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815) Remaining Performance Obligations from Contracts with Customers Trade receivables, net of allowance for doubtful accounts, and deferred revenues are reported net of related uncollected deferred revenues in our condensed consolidated balance sheets as of August 31, 2020 and May 31, 2020. The revenues recognized during the three months ended August 31, 2020 and 2019, respectively, that were included in the opening deferred revenues balance as of May 31, 2020 and 2019, respectively, were approximately $3.4 billion and $3.5 billion, respectively. Revenues recognized from performance obligations satisfied in prior periods and impairment losses recognized on our receivables were immaterial in each of the three months ended August 31, 2020 and 2019. Remaining performance obligations, as defined in Note 1 of Notes to Consolidated Financial Statements included in our Annual Report on Form 10-K for the fiscal year ended May 31, 2020, were $35.5 billion as of August 31, 2020, approximately 61% of which we expect to recognize as revenues over the next twelve months and the remainder thereafter. Sales of Financing Receivables We offer certain of our customers the option to acquire certain of our cloud and license, hardware and services offerings through separate long-term payment contracts. We generally sell these contracts that we have financed for our customers on a non-recourse basis to financial institutions within 90 days of the contracts’ dates of execution. We record the transfers of amounts due from customers to financial institutions as sales of financing receivables because we are considered to have surrendered control of these financing receivables. Financing receivables sold to financial institutions were $677 million and $705 million for each of the three months ended August 31, 2020 and 2019, respectively. Cash, Cash Equivalents and Restricted Cash Restricted cash that was included within cash and cash equivalents as presented within our condensed consolidated balance sheets as of August 31, 2020 and May 31, 2020 and our condensed consolidated statements of cash flows for the three months ended August 31, 2020 and 2019 was nominal. Acquisition Related and Other Expenses Acquisition related and other expenses primarily consist of personnel related costs for transitional and certain other employees, certain business combination adjustments including adjustments after the measurement period has ended, and certain other operating items, net. Three Months Ended August 31, (in millions) 2020 2019 Transitional and other employee related costs $ 2 $ 4 Business combination adjustments, net 1 3 Other, net 16 18 Total acquisition related and other expenses $ 19 $ 25 Non-Operating (Expenses) Income, net Non-operating (expenses) income, net consists primarily of interest income, net foreign currency exchange losses, the noncontrolling interests in the net profits of our majority-owned subsidiaries (primarily Oracle Financial Services Software Limited and Oracle Corporation Japan) and net other income and expenses, including net realized gains and losses related to all of our investments, net unrealized gains and losses related to the small portion of our investment portfolio related to our deferred compensation plan, net unrealized gains and losses related to certain equity securities and non-service net periodic pension income and losses. Three Months Ended August 31, (in millions) 2020 2019 Interest income $ 31 $ 190 Foreign currency losses, net (50 ) (55 ) Noncontrolling interests in income (38 ) (40 ) Other, net 55 4 Total non-operating (expenses) income, net $ (2 ) $ 99 Recent Accounting Pronouncements Financial Instruments In March 2020, the Financial Accounting Standards Board (FASB) issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting (ASU 2020-04). ASU 2020-04 provides optional guidance for contract modifications and certain hedging relationships associated with the transition from reference rates that are expected to be discontinued . ASU 2020-04 is effective for all entities upon issuance through December 31, 2022. We are still evaluating the impact, but do not expect ASU 2020-04 to have a material impact on our consolidated financial statements. Income Taxes In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (ASU 2019-12), which is intended to simplify various areas related to the accounting for income taxes and improve consistent application of Topic 740. ASU 2019-12 is effective for us beginning in fiscal 2022, and earlier adoption is permitted. We are currently evaluating the impact of our pending adoption of ASU 2019-12 on our consolidated financial statements.

ACQUISITIONS

ACQUISITIONS	3 Months Ended
	Aug. 31, 2020
Business Combinations [Abstract]
ACQUISITIONS	2. ACQUISITIONS Fiscal 2021 and 2020 Acquisitions During the first quarter of fiscal 2021 and full year of fiscal 2020, we acquired certain companies and purchased certain technology and development assets primarily to expand our products and services offerings

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	3 Months Ended
	Aug. 31, 2020
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 consisted of the following (Level 1 and Level 2 inputs are defined above): August 31, 2020 May 31, 2020 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 $ 3,661 $ 7,200 $ 10,861 $ 4,036 $ 2,589 $ 6,625 Commercial paper debt securities — 9,029 9,029 — 5,640 5,640 Money market funds 8,378 — 8,378 18,587 — 18,587 Derivative financial instruments — 79 79 — 29 29 Total assets $ 12,039 $ 16,308 $ 28,347 $ 22,623 $ 8,258 $ 30,881 Liabilities: Derivative financial instruments $ — $ 143 $ 143 $ — $ 268 $ 268 We classify our marketable securities as available-for-sale debt securities at the time of purchase and reevaluate such classification as of each balance sheet date. Our marketable securities investments consist of Tier 1 commercial paper debt securities, corporate debt securities and certain other securities. Marketable securities as presented per our condensed consolidated balance sheets included securities with original maturities at the time of purchase greater than three months and the remainder of the securities were included in cash and cash equivalents. As of August 31, 2020 and May 31, 2020, substantially all of our marketable securities investments mature within one year. Our valuation techniques used to measure the fair values of our instruments that were classified as Level 1 in the table above were derived from quoted market prices and active markets for these instruments that exist. Our valuation techniques used to measure the fair values of Level 2 instruments listed in the table above were derived from the following: non-binding market consensus prices that were corroborated by observable market data, quoted market prices for similar instruments, or pricing models, such as discounted cash flow techniques, with all significant inputs derived from or corroborated by observable market data including LIBOR-based yield curves, among others. Based on the trading prices of the $70.8 billion and $71.6 billion of senior notes and the related fair value hedges that we had outstanding as of August 31, 2020 and May 31, 2020, respectively, the estimated fair values of the senior notes and the related fair value hedges using Level 2 inputs at August 31, 2020 and May 31, 2020 were $80.6 billion and $80.9 billion, respectively.

INTANGIBLE ASSETS AND GOODWILL

INTANGIBLE ASSETS AND GOODWILL	3 Months Ended
	Aug. 31, 2020
Goodwill And Intangible Assets Disclosure [Abstract]
INTANGIBLE ASSETS AND GOODWILL	4. INTANGIBLE ASSETS AND GOODWILL The changes in intangible assets for fiscal 2021 and the net book value of intangible assets as of August 31, 2020 and May 31, 2020 were as follows: Intangible Assets, Gross Accumulated Amortization Intangible Assets, Net (in millions) May 31, 2020 Additions & Adjustments, net (1) August 31, 2020 May 31, 2020 Expense August 31, 2020 May 31, 2020 August 31, 2020 Developed technology $ 4,471 $ 3 $ 4,474 $ (3,290 ) $ (158 ) $ (3,448 ) $ 1,181 $ 1,026 Cloud services and license support agreements and related relationships 5,589 9 5,598 (3,271 ) (164 ) (3,435 ) 2,318 2,163 Other 1,341 — 1,341 (1,102 ) (23 ) (1,125 ) 239 216 Total intangible assets, net $ 11,401 $ 12 $ 11,413 $ (7,663 ) $ (345 ) $ (8,008 ) $ 3,738 $ 3,405 (1) As of August 31, 2020, estimated future amortization expenses related to intangible assets were as follows (in millions): Remainder of fiscal 2021 $ 1,012 Fiscal 2022 1,106 Fiscal 2023 682 Fiscal 2024 445 Fiscal 2025 126 Fiscal 2026 24 Thereafter 10 Total intangible assets, net $ 3,405 The changes in the carrying amounts of goodwill, net, which is generally not deductible for tax purposes, for our operating segments for the three months ended August 31, 2020 were as follows: (in millions) Cloud and License Hardware Services Total Goodwill, net Balances as of May 31, 2020 $ 39,637 $ 2,367 $ 1,765 $ 43,769 Goodwill adjustments, net (1) 88 — 10 98 Balances as of August 31, 2020 $ 39,725 $ 2,367 $ 1,775 $ 43,867 (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). Amounts also include any changes in goodwill balances for the period presented that resulted from foreign currency translations.

RESTRUCTURING ACTIVITIES

RESTRUCTURING ACTIVITIES	3 Months Ended
	Aug. 31, 2020
Restructuring And Related Activities [Abstract]
RESTRUCTURING ACTIVITIES	5. RESTRUCTURING ACTIVITIES Fiscal 2019 Oracle Restructuring Plan During fiscal 2019, our management approved, committed to and initiated plans to restructure and further improve efficiencies in our operations due to our acquisitions and certain other operational activities (2019 Restructuring Plan). Restructuring costs associated with the 2019 Restructuring Plan were recorded to the restructuring expense line item within our condensed consolidated statements of operations as they were incurred. We recorded $172 million and $77 million of restructuring expenses in connection with the 2019 Restructuring Plan in the first three months of fiscal 2021 and 2020, respectively. Any changes to the estimates or timing of executing the 2019 Restructuring Plan will be reflected in our future results of operations. Summary of All Plans Accrued May 31, 2020 (2) Three Months Ended August 31, 2020 Accrued August 31, 2020 (2) Total Costs Accrued to Date Total Expected Program Costs (in millions) Initial Costs (3) Adj. to Cost (4) Cash Payments Others (5) 2019 Restructuring Plan (1) Cloud and license $ 75 $ 86 $ (6 ) $ (74 ) $ 6 $ 87 $ 383 $ 386 Hardware 14 18 — (14 ) — 18 98 99 Services 27 21 — (18 ) 2 32 112 113 Other (6) 22 53 — (15 ) 2 62 316 317 Total 2019 Restructuring Plan $ 138 $ 178 $ (6 ) $ (121 ) $ 10 $ 199 $ 909 $ 915 Total other restructuring plans (7) $ 13 $ 2 $ — $ (1 ) $ (1 ) $ 13 Total restructuring plans $ 151 $ 180 $ (6 ) $ (122 ) $ 9 $ 212 (1) Restructuring costs recorded for individual line items primarily related to employee severance costs. (2) As of August 31, 2020 and May 31, 2020, substantially all restructuring liabilities have been recorded in other current liabilities within our condensed consolidated balance sheets. (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 ) Represents employee related severance costs for functions that are not included within our operating segments and certain other restructuring costs. ( 7 ) Other restructuring plans presented in the table above included condensed information for other Oracle based plans 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	3 Months Ended
	Aug. 31, 2020
Deferred Revenue Disclosure [Abstract]
DEFERRED REVENUES	6. DEFERRED REVENUES Deferred revenues consisted of the following: (in millions) August 31, 2020 May 31, 2020 Cloud services and license support $ 8,733 $ 6,996 Hardware 699 613 Services 403 365 Cloud license and on-premise license 40 28 Deferred revenues, current 9,875 8,002 Deferred revenues, non-current (in other non-current liabilities) 671 597 Total deferred revenues $ 10,546 $ 8,599 Deferred cloud services and license support revenues and deferred hardware revenues substantially represent customer payments made in advance for cloud or support contracts that are typically billed in advance with corresponding revenues generally being recognized ratably over the contractual periods. Deferred services revenues include prepayments for our services business and revenues for these services are generally recognized as the services are performed. Deferred cloud license and on-premise license revenues typically resulted from customer payments that related to undelivered products and services or specified enhancements. In connection with our acquisitions, we have estimated the fair values of the cloud services and license support performance obligations assumed from our acquired companies. Refer to Note 9 of Notes to Consolidated Financial Statements included in our Annual Report on Form 10-K for the fiscal year ended May 31, 2020 for further explanation of these estimates .

DERIVATIVE FINANCIAL INSTRUMENT

DERIVATIVE FINANCIAL INSTRUMENTS	3 Months Ended
	Aug. 31, 2020
Derivative Instruments And Hedging Activities Disclosure [Abstract]
DERIVATIVE FINANCIAL INSTRUMENTS	7. DERIVATIVE FINANCIAL INSTRUMENTS We held the following derivative instruments that were designated and accounted for as hedging instruments pursuant to ASC 815, Derivatives and Hedging • interest rate swap agreements, which are used to protect us against changes in the fair values of certain of our fixed-rate borrowings attributable to the movements in benchmark interest rates. We have designated these swap agreements as qualifying hedging instruments and are accounting for them as fair value hedges pursuant to ASC 815; • cross-currency interest rate swap agreements, which are used to protect us against changes in the fair values of certain of our fixed-rate Euro-denominated borrowings attributable to the movements in benchmark interest rates and foreign currency exchange rates by effectively converting the fixed-rate, Euro-denominated borrowings, including the annual interest payments and the payment of principal at maturity, to variable-rate, U.S. Dollar-denominated debt based on LIBOR. We have designated these swap agreements as qualifying hedging instruments and are accounting for them as fair value hedges pursuant to ASC 815; and • cross-currency swap agreements, which are used to manage foreign currency exchange risk by converting certain of our fixed-rate Euro-denominated borrowings including periodic interest payments and the payment of principal at maturity to fixed-rate U.S. Dollar-denominated debt and are accounted for as cash flow hedges pursuant to ASC 815. We also held certain foreign currency contracts that were not designated as hedges pursuant to ASC 815. As of August 31, 2020 and May 31, 2020, the notional amounts of such forward contracts we held to purchase U.S. Dollars in exchange for other major international currencies were $3.7 billion and $4.2 billion, respectively, and the notional amount s of forward contracts we held to sell U.S. Dollars in exchange for other major international currencies were $ billion and $ bil lion, respectively. The fair values of our outstanding foreign currency forward contracts were nominal as of August 3 1 , 20 20 and May 31, 20 20 . Net gains or losses related to these forward contracts are included in non-operating income, net. See Note 10 of Notes to Consolidated Financial Statements included in our Annual Report on Form 10-K for the fiscal year ended May 31, 2020 for additional information regarding the purpose, accounting and classification of our derivative instruments. None of our derivative instruments are used for trading purposes. The effects of derivative instruments designated as hedges on certain of our condensed consolidated financial statements were as follows as of or for each of the respective periods presented below (amounts presented exclude any income tax effects): Fair Values of Derivative Instruments Designated as Hedges in Condensed Consolidated Balance Sheets Fair Value as of (in millions) Balance Sheet Location August 31, 2020 May 31, 2020 Derivative assets: Interest rate swap agreements designated as fair value hedges Other current assets $ 24 $ — Cross-currency interest rate swap agreements designated as fair value hedges Other non-current assets 55 — Interest rate swap agreements designated as fair value hedges Other non-current assets — 29 Total derivative assets $ 79 $ 29 Derivative liabilities: Cross-currency swap agreements designated as cash flow hedges Other current liabilities $ 143 $ 251 Cross-currency interest rate swap agreements designated as fair value hedges Other non-current liabilities — 17 Total derivative liabilities $ 143 $ 268 Effects of Fair Value Hedging Relationships on Hedged Items in Condensed Consolidated Balance Sheets (in millions) August 31, 2020 May 31, 2020 Notes payable, current: Carrying amount of hedged item $ 1,524 $ — Cumulative hedging adjustment included in the carrying amount $ 24 $ — Notes payable and other borrowings, non-current: Carrying amounts of hedged items $ 2,216 $ 3,680 Cumulative hedging adjustments included in the carrying amount $ 110 $ 75 Effects of Derivative Instruments Designated as Hedges on Income Three Months Ended August 31, 2020 2019 (in millions) Non-operating (expenses) income, net Interest expense Non-operating (expenses) income, net Interest expense Condensed consolidated statements of operations line amounts in which the hedge effects were recorded $ (2 ) $ (614 ) $ 99 $ (494 ) Gain (loss) on hedges recognized in income: Interest rate swaps agreements designated as fair value hedges: Derivative instruments $ — $ (5 ) $ — $ 16 Hedged items — 5 — (16 ) Cross-currency interest rate swaps agreements designated as fair value hedges: Derivative instruments 72 2 (18 ) 23 Hedged items (63 ) (2 ) 15 (23 ) Cross-currency swap agreements designated as cash flow hedges: Amount of gain (loss) reclassified from accumulated OCI 103 — (8 ) — Total gain (loss) on hedges recognized in income $ 112 $ — $ (11 ) $ — Gain (Loss) on Derivative Instruments Designated as Hedges included in Other Comprehensive Income (OCI) Three Months Ended August 31, (in millions) 2020 2019 Cross-currency swap agreements designated as cash flow hedges $ 108 $ (32 )

STOCKHOLDERS' EQUITY

STOCKHOLDERS' EQUITY	3 Months Ended
	Aug. 31, 2020
Stockholders Equity Note [Abstract]
STOCKHOLDERS' EQUITY	8. STOCKHOLDERS’ EQUITY Common Stock Repurchases Our Board of Directors has approved a program for us to repurchase shares of our common stock. As of August 31, 2020, approximately $11.6 billion remained available for stock repurchases pursuant to our stock repurchase program. We repurchased 89.8 million shares for $5.0 billion during the three months ended August 31, 2020 (including 0.9 million shares for $55 million that were repurchased but not settled) and 89.5 million shares for $5.0 billion during the three months ended August 31, 2019 under the stock repurchase program. Our stock repurchase authorization does not have an expiration date and the pace of our repurchase activity will depend on factors such as our working capital needs, our cash requirements for acquisitions and dividend payments, our debt repayment obligations or repurchases of our debt, our stock price, and economic and market conditions. Our stock repurchases may be effected from time to time through open market purchases or pursuant to a Rule 10b5-1 plan. Our stock repurchase program may be accelerated, suspended, delayed or discontinued at any time. Dividend s on Common Stock In September 2020, our Board of Directors declared a quarterly cash dividend of $0.24 per share of our outstanding common stock. The dividend is payable on October 22, 2020 to stockholders of record as of the close of business on October 8, 2020. Future declarations of dividends and the establishment of future record and payment dates are subject to the final determination of our Board of Directors. Fiscal 2021 Stock‑Based Awards Activity and Compensation Expense During the first quarter of fiscal 2021, we issued 42 million restricted stock-based units (RSUs), substantially all of which were issued as a part of our annual stock-based award process and are subject to service‑based vesting restrictions. These fiscal 2021 stock-based awards issuances were partially offset by stock-based award forfeitures and cancellations of 20 million shares during the first quarter of fiscal 2021. The RSUs that were granted during the three months ended August 31, 2020 have vesting restrictions, valuations and contractual lives of a similar nature to those described in Note 13 of Notes to Consolidated Financial Statements included in our Annual Report on Form 10-K for the fiscal year ended May 31, 2020. Stock‑based compensation expense is included in the following operating expense line items in our condensed consolidated statements of operations: Three Months Ended August 31, (in millions) 2020 2019 Cloud services and license support $ 30 $ 31 Hardware 3 3 Services 12 14 Sales and marketing 71 88 Research and development 276 271 General and administrative 36 39 Total stock-based compensation $ 428 $ 446

INCOME TAXES

INCOME TAXES	3 Months Ended
	Aug. 31, 2020
Income Tax Disclosure [Abstract]
INCOME TAXES	9. INCOME TAXES Our effective tax rates for the periods presented are the result of the mix of income earned in various tax jurisdictions that apply a broad range of income tax rates. Our provision for income taxes varied from the tax computed at the U.S. federal statutory income tax rate for the periods presented primarily due to earnings in foreign operations, state taxes, the U.S. research and development tax credit, settlements with tax authorities, the tax effects of stock-based compensation, the Foreign Derived Intangible Income deduction and the tax effect of Global Intangible Low-Taxed Income. Our effective tax rates were 13.3% and 13.9% for the three months ended August 31, 2020 and 2019, respectively. Our net deferred tax assets were $3.1 billion and $3.2 billion as of August 31, 2020 and May 31, 2020, respectively. We believe that it is more likely than not that the net deferred tax assets will be realized in the foreseeable future. Realization of our net deferred tax assets is dependent upon our generation of sufficient taxable income in future years in appropriate tax jurisdictions to obtain benefit from the reversal of temporary differences, net operating loss carryforwards and tax credit carryforwards. The amount of net deferred tax assets considered realizable is subject to adjustment in future periods if estimates of future taxable income change. Domestically, U.S. federal and state taxing authorities are currently examining income tax returns of Oracle and various acquired entities for years through fiscal 2017. Our U.S. federal income tax returns have been examined for all years prior to fiscal 2010, and we are no longer subject to audit for those periods. Our U.S. state income tax returns, with some exceptions, have been examined for all years prior to fiscal 2007, and we are no longer subject to audit for those periods. Internationally, tax authorities for numerous non-U.S. jurisdictions are also examining returns affecting our unrecognized tax benefits. With some exceptions, we are generally no longer subject to tax examinations in non-U.S. jurisdictions for years prior to fiscal 2001. We are under audit by the IRS and various other domestic and foreign tax authorities with regards to income tax and indirect tax matters and are involved in various challenges and litigation in a number of countries, including, in particular, Australia, Brazil, Canada, India, Indonesia, Israel, Mexico, Pakistan, Saudi Arabia, South Korea and Spain, where the amounts under controversy are significant. In some, although not all, cases, we have reserved for potential adjustments to our provision for income taxes and accrual of indirect taxes that may result from examinations by, or any negotiated agreements with, these tax authorities or final outcomes in judicial proceedings, and we believe that the final outcome of these examinations, agreements or judicial proceedings will not have a material effect on our results of operations. If events occur which indicate payment of these amounts is unnecessary, the reversal of the liabilities would result in the recognition of benefits in the period we determine the liabilities are no longer necessary. If our estimates of the federal, state, and foreign income tax liabilities and indirect tax liabilities are less than the ultimate assessment, it could result in a further charge to expense. We believe that we have adequately provided under GAAP for outcomes related to our tax audits. However, there can be no assurances as to the possible outcomes or any related financial statement effect thereof.

SEGMENT INFORMATION

SEGMENT INFORMATION	3 Months Ended
	Aug. 31, 2020
Segment Reporting [Abstract]
SEGMENT INFORMATION	10. SEGMENT INFORMATION ASC 280, Segment Reporting We have three businesses—cloud and license, hardware and services—each of which is comprised of a single Our cloud and license business engages in the sale, marketing and delivery of our applications and infrastructure technologies through cloud and on-premise deployment models including our cloud services and license support offerings; and our cloud license and on-premise license offerings. Cloud services and license support revenues are generated from offerings that are typically contracted with customers directly, billed to customers in advance, delivered to customers over time with our revenue recognition occurring over the contractual terms, and renewed by customers upon completion of the contractual terms. Cloud services and license support contracts provide customers with access to the latest updates to the applications and infrastructure technologies as they become available and for which the customer contracted and also include related technical support services over the contractual term. Cloud license and on-premise license revenues represent fees earned from granting customers licenses, generally on a perpetual basis, to use our database and middleware and our applications software products within cloud and on-premise IT environments. We generally recognize revenues at the point in time the software is made available to the customer to download and use, which typically is immediate upon signature of the license contract. In each fiscal year, our cloud and license business’ contractual activities are typically highest in our fourth fiscal quarter and the related cash flows are typically highest in the following quarter (i.e., in the first fiscal quarter of the next fiscal year) as we receive payments from these contracts . Our hardware business provides Oracle Engineered Systems, servers, storage, industry-specific hardware, operating systems, virtualization, management and other hardware-related software to support diverse IT environments. Our hardware business also offers hardware support, which provides customers with software updates for the software components that are essential to the functionality of their hardware products, such as Oracle Solaris and certain other software, and can also include product repairs, maintenance services and technical support services. Our services business provides services to customers and partners to help maximize the performance of their investments in Oracle applications and infrastructure technologies. We do not track our assets for each business. Consequently, it is not practical to show assets by operating segment. The following table presents summary results for each of our three businesses: Three Months Ended August 31, (in millions) 2020 2019 Cloud and license: Revenues (1) $ 7,834 $ 7,619 Cloud services and license support expenses 958 931 Sales and marketing expenses 1,633 1,757 Margin (2) $ 5,243 $ 4,931 Hardware: Revenues $ 814 $ 815 Hardware products and support expenses 239 264 Sales and marketing expenses 98 117 Margin (2) $ 477 $ 434 Services: Revenues $ 720 $ 786 Services expenses 585 665 Margin (2) $ 135 $ 121 Totals: Revenues (1) $ 9,368 $ 9,220 Expenses 3,513 3,734 Margin (2) $ 5,855 $ 5,486 (1) Cloud and license revenues presented for management reporting included revenues related to cloud and license obligations 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 due to business combination accounting requirements. See Note 9 of Notes to Consolidated Financial Statements included in our Annual Report on Form 10-K for the year ended May 31, 2020 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 research and development, general and administrative and certain other allocable expenses, net. Additionally, the margins reported above 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. 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 August 31, (in millions) 2020 2019 Total revenues for operating segments $ 9,368 $ 9,220 Cloud and license revenues (1) (1 ) (2 ) Total revenues $ 9,367 $ 9,218 Total margin for operating segments $ 5,855 $ 5,486 Cloud and license revenues (1) (1 ) (2 ) Research and development (1,589 ) (1,557 ) General and administrative (295 ) (292 ) Amortization of intangible assets (345 ) (414 ) Acquisition related and other (19 ) (25 ) Restructuring (174 ) (78 ) Stock-based compensation for operating segments (116 ) (136 ) Expense allocations and other, net (105 ) (105 ) Interest expense (614 ) (494 ) Non-operating (expenses) income, net (2 ) 99 Income before provision for income taxes $ 2,595 $ 2,482 (1) Cloud and license revenues presented Disaggregation of Revenues We have considered information that is regularly reviewed by our CODMs in evaluating financial performance, and disclosures presented outside of our financial statements in our earnings releases and used in investor presentations to disaggregate revenues to depict how the nature, amount, timing and uncertainty of revenues and cash flows are affected by economic factors. The principal category we use to disaggregate revenues is the nature of our products and services as presented in our condensed consolidated statements of operations, the total of which is reconciled to revenues from our reportable segments as per the preceding tables of this footnote. The following table is a summary of our total revenues by geographic region. The relative proportion of our total revenues between each geographic region as presented in the table below was materially consistent across each of our operating segments’ revenues for the periods presented. Three Months Ended August 31, (in millions) 2020 2019 Americas $ 5,068 $ 5,150 EMEA (1) 2,738 2,553 Asia Pacific 1,561 1,515 Total revenues $ 9,367 $ 9,218 (1) Comprised of Europe, the Middle East and Africa The Three Months Ended August 31, (in millions) 2020 2019 Applications cloud services and license support $ 2,816 $ 2,704 Infrastructure cloud services and license support 4,131 4,101 Total cloud services and license support revenues $ 6,947 $ 6,805

EARNINGS PER SHARE

EARNINGS PER SHARE	3 Months Ended
	Aug. 31, 2020
Earnings Per Share [Abstract]
EARNINGS PER SHARE	11. EARNINGS PER SHARE Basic earnings per share is computed by dividing net income for the period by the weighted-average number of common shares outstanding during the period. Diluted earnings per share is computed by dividing net income for the period by the weighted average number of common shares outstanding during the period, plus the dilutive effect of outstanding restricted stock-based awards, stock options, and shares issuable under the employee stock purchase plan as applicable pursuant to the treasury stock method. The following table sets forth the computation of basic and diluted earnings per share: Three Months Ended August 31, (in millions, except per share data) 2020 2019 Net income $ 2,251 $ 2,137 Weighted average common shares outstanding 3,041 3,317 Dilutive effect of employee stock plans 66 93 Dilutive weighted average common shares outstanding 3,107 3,410 Basic earnings per share $ 0.74 $ 0.64 Diluted earnings per share $ 0.72 $ 0.63 Shares subject to anti-dilutive restricted stock-based awards and stock options excluded from calculation (1) 36 55 (1) These weighted shares relate to anti-dilutive restricted service based stock based awards and stock options as calculated using the treasury stock method and contingently issuable shares, substantially all of which were related to performance based stock option (PSO) arrangements. Such shares could be dilutive in the future.

LEGAL PROCEEDINGS

LEGAL PROCEEDINGS	3 Months Ended
	Aug. 31, 2020
Legal Proceedings [Abstract]
LEGAL PROCEEDINGS	12. LEGAL PROCEEDINGS Hewlett-Packard Company Litigation On June 15, 2011, Hewlett-Packard Company, now Hewlett Packard Enterprise Company (HP), filed a complaint in the California Superior Court, County of Santa Clara against Oracle Corporation alleging numerous causes of action including breach of contract, breach of the covenant of good faith and fair dealing, defamation, intentional interference with prospective economic advantage, and violation of the California Unfair Business Practices Act. The complaint alleged that when Oracle announced on March 22 and 23, 2011 that it would no longer develop future versions of its software to run on HP’s Itanium-based servers, it breached a settlement agreement signed on September 20, 2010 (the HP Settlement Agreement), resolving litigation between HP and one of Oracle’s former CEOs who had previously acted as HP’s chief executive officer and chairman of HP’s board of directors. HP sought a judicial declaration of the parties’ rights and obligations under the HP Settlement Agreement and other equitable and monetary relief. Oracle answered the complaint and filed cross-claims. After a bench trial on the meaning of the HP Settlement Agreement, the court found that the HP Settlement Agreement required Oracle to continue to develop certain of its software products for use on HP’s Itanium-based servers at no cost to HP. The case proceeded to a jury trial in May 2016. On June 30, 2016, the jury returned a verdict in favor of HP on its claims for breach of contract and breach of the implied covenant of good faith and fair dealing and against Oracle on its cross-claims. The jury awarded HP $3.0 billion in damages. Under the court’s rulings, HP is entitled to post-judgment interest, but not pre-judgment interest, on this award. After the trial court denied Oracle’s motion for a new trial, Oracle filed a notice of appeal on January 17, 2017. On February 2, 2017, HP filed a notice of appeal of the trial court’s denial of pre-judgment interest. Oracle has posted a mandated surety bond with the trial court for the amounts owing. No amounts have been paid or recorded to our results of operations. We continue to believe that we have meritorious defenses against HP’s claims, and we intend to present these defenses to the appellate court. Oracle filed its opening brief on March 7, 2019. Briefing on the appeal was completed November 1, 2019, and the appellate court has not scheduled a date for oral argument. We cannot currently estimate a reasonably possible range of loss for this action due to the complexities and uncertainty surrounding the appeal process and the nature of the claims. Litigation is inherently unpredictable, and the outcome of the appeal process related to this action is uncertain. It is possible that the resolution of this action could have a material impact on our future cash flows and results of operations. Derivative Litigation Concerning Oracle’s NetSuite Acquisition On May 3 and July 18, 2017, two alleged stockholders filed separate derivative lawsuits in the Court of Chancery of the State of Delaware, purportedly on Oracle’s behalf. Thereafter, the court consolidated the two derivative cases and designated the July 18, 2017 complaint as the operative complaint. The consolidated lawsuit was brought against all the then-current members and one former member of our Board of Directors, and Oracle as a nominal defendant. Plaintiff alleges that the defendants breached their fiduciary duties by causing Oracle to agree to purchase NetSuite Inc. (NetSuite) at an excessive price. Plaintiff seeks declaratory relief, unspecified monetary damages (including interest), and attorneys’ fees and costs. The defendants filed a motion to dismiss, which the court denied on March 19, 2018. On May 4, 2018, our Board of Directors established a Special Litigation Committee (the SLC) to investigate the allegations in this derivative action. Three non-employee directors served on the SLC. On August 15, 2019, the SLC filed a letter with the court, stating that the SLC believed that plaintiff should be allowed to proceed with the derivative litigation on behalf of Oracle. After the SLC advised the Board that it had fulfilled its duties and obligations, the Board withdrew the SLC’s authority, except that the SLC maintained certain authority to respond to discovery requests in the litigation. After plaintiff filed its initial complaint, plaintiff filed several amended complaints. Plaintiff filed its most recent amended complaint on February 18, 2020. The complaint asserts claims for breach of fiduciary duty against our Chief Executive Officer, our Chief Technology Officer, the estate of Mark Hurd (our former Chief Executive Officer who passed away on October 18, 2019), and two other members of our Board of Directors. Oracle is named as a nominal defendant. The complaint also asserts an aiding-and-abetting claim against NetSuite’s former Chief Executive Officer and NetSuite’s former Chief Technology Officer. The two former NetSuite officers moved to dismiss the complaint, which the court granted on June 22, 2020. Our Chief Executive Officer and Chief Technology Officer answered the latest complaint on March 3, 2020, and Oracle filed an answer on the same day. On February 20, 2020, the other defendants filed a motion to dismiss. No hearing has been scheduled for this motion. On July 24, 2020, plaintiff filed a motion for leave to file a further amended complaint. The court has not yet ruled on this motion. On September 8, 2020, the defendants who moved to dismiss on February 20, 2020, moved to dismiss the proposed amended complaint. No hearing date has been set for this motion. On April 20, 2020, after our Chief Executive Officer and Chief Technology Officer indicated that they might challenge plaintiff’s standing to pursue this matter, an additional plaintiff moved to intervene in this case. On April 29, 2020, the court granted that plaintiff’s motion to intervene. On May 7, 2020, our Chief Executive Officer and Chief Technology Officer filed a motion for summary judgment, seeking to have the plaintiff that filed the July 18, 2017 complaint dismissed from the case for lack of standing, arguing that this plaintiff had not continuously owned Oracle stock during the relevant time period. On July 9, 2020, the court appointed the recent intervenor as co-lead plaintiff, and ruled that the motion should be held in abeyance unless and until there were questions about the co-lead plaintiff’s standing. The parties are conducting discovery. While Oracle continues to evaluate these claims, we do not believe this litigation will have a material impact on our financial position or results of operations. Securities Class Action and Derivative Litigation Concerning Oracle’s Cloud Business On August 10, 2018, a putative class action, brought by an alleged stockholder of Oracle, was filed in the U.S. District Court for the Northern District of California against us, our Chief Technology Officer, our then-two Chief Executive Officers, two other Oracle executives, and one former Oracle executive. As noted above, Mr. Hurd, one of our then-two Chief Executive Officers, passed away on October 18, 2019. On March 8, 2019, plaintiff filed an amended complaint. Plaintiff alleges that the defendants made or are responsible for false and misleading statements regarding Oracle’s cloud business. Plaintiff further alleges that the former Oracle executive engaged in insider trading. Plaintiff seeks a ruling that this case may proceed as a class action, and seeks damages, attorneys’ fees and costs, and unspecified declaratory/injunctive relief. On April 19, 2019, defendants moved to dismiss plaintiff’s amended complaint. On December 17, 2019, the court granted this motion, giving plaintiffs an opportunity to file an amended complaint, which plaintiff filed on February 17, 2020. On April 23, 2020, defendants filed a motion to dismiss, which is scheduled for hearing on September 24, 2020. We believe that we have meritorious defenses against this action, and we will continue to vigorously defend it. On February 12, 2019, a stockholder derivative lawsuit was filed in the U.S. District Court for the Northern District of California. The derivative suit is brought by two alleged stockholders of Oracle, purportedly on Oracle’s behalf, against all members of our Board of Directors, and Oracle as a nominal defendant. Plaintiffs claim that the alleged actions described in the August 10, 2018 class action discussed above caused harm to Oracle, and that Oracle’s Board members violated their fiduciary duties of care, loyalty, reasonable inquiry, and good faith by failing to prevent this alleged harm. Plaintiffs also allege that defendants’ actions constitute gross mismanagement, waste, and securities fraud. Plaintiffs seek a ruling that this case may proceed as a derivative action, a finding that defendants are liable for breaching their fiduciary duties, an order directing defendants to enact corporate reforms, attorneys’ fees and costs, and unspecified equitable relief. On April 26, 2019, the court approved a stay of this action, which will be lifted if the class action discussed above is dismissed, if the motion to dismiss the class action is denied, or if either party voluntarily chooses to lift the stay. On May 8, 2019, a second derivative action was filed in the U.S. While Oracle continues to evaluate these claims, we do not believe this litigation will have a material impact on our financial position or results of operations. Derivative Litigation Concerning Oracle’s Board Composition and Hiring Practices On July 2 and 10, 2020, two alleged stockholders filed derivative lawsuits in the U.S. District Court for the Northern District of California, purportedly on Oracle’s behalf, and thereafter, filed a consolidated complaint on August 21, 2020, against all members of our Board of Directors, and Oracle as a nominal defendant, seeking declaratory and injunctive relief, monetary damages, interest, corporate governance changes, disgorgement, restitution, punitive damages, and an award of attorneys’ fees, expert fees, and costs. Plaintiffs allege that: (a) defendants breached their fiduciary duties by permitting Oracle to violate anti-discrimination laws and Oracle’s own policies, failing to ensure sufficient diversity on the board, failing to ensure an independent board chairman, rehiring Ernst & Young LLP as Oracle’s auditors, and by breaching the HP Settlement Agreement (discussed above); (b) defendants made false and misleading statements in Oracle’s proxy statements; (c) defendants received unjust compensation and were unjustly enriched; (d) defendants aided and abetted this conduct; and (e) our Chief Technology Officer and our Chief Executive Officer are liable for abuse of control. On July 30, 2020, a third stockholder filed a derivative lawsuit in the same court, against all members of our Board of Directors, and Oracle as a nominal defendant, seeking declaratory and injunctive relief, corporate governance changes, monetary damages, interest, disgorgement, and an award of attorneys’ fees, expert fees, and costs. Plaintiff alleges that defendants: (a) breached their fiduciary duties by opposing stockholder proposals regarding a pay equity report; (b) wasted corporate assets; (c) made false and misleading statements in Oracle’s 2019 proxy statement; and (d) were unjustly enriched. While Oracle continues to evaluate these claims, we do not believe this litigation will have a material impact on our financial position or results of operations. Other Litigation We are party to various other legal proceedings and claims, either asserted or unasserted, which arise in the ordinary course of business, including proceedings and claims that relate to acquisitions we have completed or to companies we have acquired or are attempting to acquire. While the outcome of these matters cannot be predicted with certainty, we do not believe that the outcome of any of these matters, individually or in the aggregate, will result in losses that are materially in excess of amounts already recognized, if any.

BASIS OF PRESENTATION, RECENT_2

BASIS OF PRESENTATION, RECENT ACCOUNTING PRONOUNCEMENTS AND OTHER (Policies)	3 Months Ended
	Aug. 31, 2020
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation We have prepared the condensed consolidated financial statements included herein pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (SEC). Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles (GAAP) have been condensed or omitted pursuant to such rules and regulations. However, we believe that the disclosures herein are adequate to ensure the information presented is not misleading. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the notes thereto included in our Annual Report on Form 10-K for the fiscal year ended May 31, 2020. We believe that all necessary adjustments, which consisted only of normal recurring items, have been included in the accompanying financial statements to present fairly the results of the interim periods. The results of operations for the interim periods presented are not necessarily indicative of the operating results to be expected for any subsequent interim period or for our fiscal year ending May 31, 2021. During the first quarter of fiscal 2021, we adopted Accounting Standards Update (ASU) 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments and subsequent amendments to the initial guidance Investments—Equity Securities (Topic 321), Investments—Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815)
Revenue Recognition	Remaining Performance Obligations from Contracts with Customers Trade receivables, net of allowance for doubtful accounts, and deferred revenues are reported net of related uncollected deferred revenues in our condensed consolidated balance sheets as of August 31, 2020 and May 31, 2020. The revenues recognized during the three months ended August 31, 2020 and 2019, respectively, that were included in the opening deferred revenues balance as of May 31, 2020 and 2019, respectively, were approximately $3.4 billion and $3.5 billion, respectively. Revenues recognized from performance obligations satisfied in prior periods and impairment losses recognized on our receivables were immaterial in each of the three months ended August 31, 2020 and 2019. Remaining performance obligations, as defined in Note 1 of Notes to Consolidated Financial Statements included in our Annual Report on Form 10-K for the fiscal year ended May 31, 2020, were $35.5 billion as of August 31, 2020, approximately 61% of which we expect to recognize as revenues over the next twelve months and the remainder thereafter.
Sales of Financing Receivables	Sales of Financing Receivables We offer certain of our customers the option to acquire certain of our cloud and license, hardware and services offerings through separate long-term payment contracts. We generally sell these contracts that we have financed for our customers on a non-recourse basis to financial institutions within 90 days of the contracts’ dates of execution. We record the transfers of amounts due from customers to financial institutions as sales of financing receivables because we are considered to have surrendered control of these financing receivables. Financing receivables sold to financial institutions were $677 million and $705 million for each of the three months ended August 31, 2020 and 2019, respectively.
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 August 31, 2020 and May 31, 2020 and our condensed consolidated statements of cash flows for the three months ended August 31, 2020 and 2019 was nominal.
Acquisition Related and Other Expenses	Acquisition Related and Other Expenses Acquisition related and other expenses primarily consist of personnel related costs for transitional and certain other employees, certain business combination adjustments including adjustments after the measurement period has ended, and certain other operating items, net. Three Months Ended August 31, (in millions) 2020 2019 Transitional and other employee related costs $ 2 $ 4 Business combination adjustments, net 1 3 Other, net 16 18 Total acquisition related and other expenses $ 19 $ 25
Non-Operating Income, net	Non-Operating (Expenses) Income, net Non-operating (expenses) income, net consists primarily of interest income, net foreign currency exchange losses, the noncontrolling interests in the net profits of our majority-owned subsidiaries (primarily Oracle Financial Services Software Limited and Oracle Corporation Japan) and net other income and expenses, including net realized gains and losses related to all of our investments, net unrealized gains and losses related to the small portion of our investment portfolio related to our deferred compensation plan, net unrealized gains and losses related to certain equity securities and non-service net periodic pension income and losses. Three Months Ended August 31, (in millions) 2020 2019 Interest income $ 31 $ 190 Foreign currency losses, net (50 ) (55 ) Noncontrolling interests in income (38 ) (40 ) Other, net 55 4 Total non-operating (expenses) income, net $ (2 ) $ 99
Recent Accounting Pronouncements	Recent Accounting Pronouncements Financial Instruments In March 2020, the Financial Accounting Standards Board (FASB) issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting (ASU 2020-04). ASU 2020-04 provides optional guidance for contract modifications and certain hedging relationships associated with the transition from reference rates that are expected to be discontinued . ASU 2020-04 is effective for all entities upon issuance through December 31, 2022. We are still evaluating the impact, but do not expect ASU 2020-04 to have a material impact on our consolidated financial statements.
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.
Segment Information	ASC 280, Segment Reporting

BASIS OF PRESENTATION, RECENT_3

BASIS OF PRESENTATION, RECENT ACCOUNTING PRONOUNCEMENTS AND OTHER (Tables)	3 Months Ended
	Aug. 31, 2020
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Acquisition Related and Other Expenses	Three Months Ended August 31, (in millions) 2020 2019 Transitional and other employee related costs $ 2 $ 4 Business combination adjustments, net 1 3 Other, net 16 18 Total acquisition related and other expenses $ 19 $ 25
Non-Operating Income, net	Three Months Ended August 31, (in millions) 2020 2019 Interest income $ 31 $ 190 Foreign currency losses, net (50 ) (55 ) Noncontrolling interests in income (38 ) (40 ) Other, net 55 4 Total non-operating (expenses) income, net $ (2 ) $ 99

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	3 Months Ended
	Aug. 31, 2020
Fair Value Disclosures [Abstract]
Assets and Liabilities Measured at Fair Value on a Recurring Basis	August 31, 2020 May 31, 2020 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 $ 3,661 $ 7,200 $ 10,861 $ 4,036 $ 2,589 $ 6,625 Commercial paper debt securities — 9,029 9,029 — 5,640 5,640 Money market funds 8,378 — 8,378 18,587 — 18,587 Derivative financial instruments — 79 79 — 29 29 Total assets $ 12,039 $ 16,308 $ 28,347 $ 22,623 $ 8,258 $ 30,881 Liabilities: Derivative financial instruments $ — $ 143 $ 143 $ — $ 268 $ 268

INTANGIBLE ASSETS AND GOODWILL

INTANGIBLE ASSETS AND GOODWILL (Tables)	3 Months Ended
	Aug. 31, 2020
Goodwill And Intangible Assets Disclosure [Abstract]
Intangible Assets	Intangible Assets, Gross Accumulated Amortization Intangible Assets, Net (in millions) May 31, 2020 Additions & Adjustments, net (1) August 31, 2020 May 31, 2020 Expense August 31, 2020 May 31, 2020 August 31, 2020 Developed technology $ 4,471 $ 3 $ 4,474 $ (3,290 ) $ (158 ) $ (3,448 ) $ 1,181 $ 1,026 Cloud services and license support agreements and related relationships 5,589 9 5,598 (3,271 ) (164 ) (3,435 ) 2,318 2,163 Other 1,341 — 1,341 (1,102 ) (23 ) (1,125 ) 239 216 Total intangible assets, net $ 11,401 $ 12 $ 11,413 $ (7,663 ) $ (345 ) $ (8,008 ) $ 3,738 $ 3,405 (1)
Estimated Future Amortization Expenses Related to Intangible Assets	Remainder of fiscal 2021 $ 1,012 Fiscal 2022 1,106 Fiscal 2023 682 Fiscal 2024 445 Fiscal 2025 126 Fiscal 2026 24 Thereafter 10 Total intangible assets, net $ 3,405
Goodwill	(in millions) Cloud and License Hardware Services Total Goodwill, net Balances as of May 31, 2020 $ 39,637 $ 2,367 $ 1,765 $ 43,769 Goodwill adjustments, net (1) 88 — 10 98 Balances as of August 31, 2020 $ 39,725 $ 2,367 $ 1,775 $ 43,867 (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). Amounts also include any changes in goodwill balances for the period presented that resulted from foreign currency translations.

RESTRUCTURING ACTIVITIES (Table

RESTRUCTURING ACTIVITIES (Tables)	3 Months Ended
	Aug. 31, 2020
Restructuring And Related Activities [Abstract]
Summary of All Plans	Accrued May 31, 2020 (2) Three Months Ended August 31, 2020 Accrued August 31, 2020 (2) Total Costs Accrued to Date Total Expected Program Costs (in millions) Initial Costs (3) Adj. to Cost (4) Cash Payments Others (5) 2019 Restructuring Plan (1) Cloud and license $ 75 $ 86 $ (6 ) $ (74 ) $ 6 $ 87 $ 383 $ 386 Hardware 14 18 — (14 ) — 18 98 99 Services 27 21 — (18 ) 2 32 112 113 Other (6) 22 53 — (15 ) 2 62 316 317 Total 2019 Restructuring Plan $ 138 $ 178 $ (6 ) $ (121 ) $ 10 $ 199 $ 909 $ 915 Total other restructuring plans (7) $ 13 $ 2 $ — $ (1 ) $ (1 ) $ 13 Total restructuring plans $ 151 $ 180 $ (6 ) $ (122 ) $ 9 $ 212 (1) Restructuring costs recorded for individual line items primarily related to employee severance costs. (2) As of August 31, 2020 and May 31, 2020, substantially all restructuring liabilities have been recorded in other current liabilities within our condensed consolidated balance sheets. (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 ) Represents employee related severance costs for functions that are not included within our operating segments and certain other restructuring costs. ( 7 ) Other restructuring plans presented in the table above included condensed information for other Oracle based plans 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)	3 Months Ended
	Aug. 31, 2020
Deferred Revenue Disclosure [Abstract]
Deferred Revenues	(in millions) August 31, 2020 May 31, 2020 Cloud services and license support $ 8,733 $ 6,996 Hardware 699 613 Services 403 365 Cloud license and on-premise license 40 28 Deferred revenues, current 9,875 8,002 Deferred revenues, non-current (in other non-current liabilities) 671 597 Total deferred revenues $ 10,546 $ 8,599

DERIVATIVE FINANCIAL INSTRUME_2

DERIVATIVE FINANCIAL INSTRUMENTS (Tables)	3 Months Ended
	Aug. 31, 2020
Derivative Instrument Detail [Abstract]
Fair Values of Derivative Instruments Designated as Hedges in Condensed Consolidated Balance Sheets	Fair Value as of (in millions) Balance Sheet Location August 31, 2020 May 31, 2020 Derivative assets: Interest rate swap agreements designated as fair value hedges Other current assets $ 24 $ — Cross-currency interest rate swap agreements designated as fair value hedges Other non-current assets 55 — Interest rate swap agreements designated as fair value hedges Other non-current assets — 29 Total derivative assets $ 79 $ 29 Derivative liabilities: Cross-currency swap agreements designated as cash flow hedges Other current liabilities $ 143 $ 251 Cross-currency interest rate swap agreements designated as fair value hedges Other non-current liabilities — 17 Total derivative liabilities $ 143 $ 268
Effects of Fair Value Hedging Relationships on Hedged Items in Condensed Consolidated Balance Sheets	(in millions) August 31, 2020 May 31, 2020 Notes payable, current: Carrying amount of hedged item $ 1,524 $ — Cumulative hedging adjustment included in the carrying amount $ 24 $ — Notes payable and other borrowings, non-current: Carrying amounts of hedged items $ 2,216 $ 3,680 Cumulative hedging adjustments included in the carrying amount $ 110 $ 75
Effects of Derivative Instruments Designated as Hedges on Income	Three Months Ended August 31, 2020 2019 (in millions) Non-operating (expenses) income, net Interest expense Non-operating (expenses) income, net Interest expense Condensed consolidated statements of operations line amounts in which the hedge effects were recorded $ (2 ) $ (614 ) $ 99 $ (494 ) Gain (loss) on hedges recognized in income: Interest rate swaps agreements designated as fair value hedges: Derivative instruments $ — $ (5 ) $ — $ 16 Hedged items — 5 — (16 ) Cross-currency interest rate swaps agreements designated as fair value hedges: Derivative instruments 72 2 (18 ) 23 Hedged items (63 ) (2 ) 15 (23 ) Cross-currency swap agreements designated as cash flow hedges: Amount of gain (loss) reclassified from accumulated OCI 103 — (8 ) — Total gain (loss) on hedges recognized in income $ 112 $ — $ (11 ) $ —
Effects of Derivative Instruments Designated as Hedges on Other Comprehensive Income (OCI) or Loss (OCL)	Three Months Ended August 31, (in millions) 2020 2019 Cross-currency swap agreements designated as cash flow hedges $ 108 $ (32 )

STOCKHOLDERS' EQUITY (Tables)

STOCKHOLDERS' EQUITY (Tables)	3 Months Ended
	Aug. 31, 2020
Stockholders Equity Note [Abstract]
Stock-Based Compensation Expense	Three Months Ended August 31, (in millions) 2020 2019 Cloud services and license support $ 30 $ 31 Hardware 3 3 Services 12 14 Sales and marketing 71 88 Research and development 276 271 General and administrative 36 39 Total stock-based compensation $ 428 $ 446

SEGMENT INFORMATION (Tables)

SEGMENT INFORMATION (Tables)	3 Months Ended
	Aug. 31, 2020
Segment Reporting [Abstract]
Summary of Businesses Results	Three Months Ended August 31, (in millions) 2020 2019 Cloud and license: Revenues (1) $ 7,834 $ 7,619 Cloud services and license support expenses 958 931 Sales and marketing expenses 1,633 1,757 Margin (2) $ 5,243 $ 4,931 Hardware: Revenues $ 814 $ 815 Hardware products and support expenses 239 264 Sales and marketing expenses 98 117 Margin (2) $ 477 $ 434 Services: Revenues $ 720 $ 786 Services expenses 585 665 Margin (2) $ 135 $ 121 Totals: Revenues (1) $ 9,368 $ 9,220 Expenses 3,513 3,734 Margin (2) $ 5,855 $ 5,486 (1) Cloud and license revenues presented for management reporting included revenues related to cloud and license obligations 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 due to business combination accounting requirements. See Note 9 of Notes to Consolidated Financial Statements included in our Annual Report on Form 10-K for the year ended May 31, 2020 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 research and development, general and administrative and certain other allocable expenses, net. Additionally, the margins reported above 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.
Reconciliation of Total Operating Segment Revenues to Total Revenues	Three Months Ended August 31, (in millions) 2020 2019 Total revenues for operating segments $ 9,368 $ 9,220 Cloud and license revenues (1) (1 ) (2 ) Total revenues $ 9,367 $ 9,218
Reconciliation of Total Operating Segment Margin to Income before Provision for Income Taxes	Total margin for operating segments $ 5,855 $ 5,486 Cloud and license revenues (1) (1 ) (2 ) Research and development (1,589 ) (1,557 ) General and administrative (295 ) (292 ) Amortization of intangible assets (345 ) (414 ) Acquisition related and other (19 ) (25 ) Restructuring (174 ) (78 ) Stock-based compensation for operating segments (116 ) (136 ) Expense allocations and other, net (105 ) (105 ) Interest expense (614 ) (494 ) Non-operating (expenses) income, net (2 ) 99 Income before provision for income taxes $ 2,595 $ 2,482 (1) Cloud and license revenues presented
Disaggregation of Revenue by Geography and Ecosystem	Three Months Ended August 31, (in millions) 2020 2019 Americas $ 5,068 $ 5,150 EMEA (1) 2,738 2,553 Asia Pacific 1,561 1,515 Total revenues $ 9,367 $ 9,218 (1) Comprised of Europe, the Middle East and Africa Three Months Ended August 31, (in millions) 2020 2019 Applications cloud services and license support $ 2,816 $ 2,704 Infrastructure cloud services and license support 4,131 4,101 Total cloud services and license support revenues $ 6,947 $ 6,805

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	3 Months Ended
	Aug. 31, 2020
Earnings Per Share [Abstract]
Earnings Per Share	Three Months Ended August 31, (in millions, except per share data) 2020 2019 Net income $ 2,251 $ 2,137 Weighted average common shares outstanding 3,041 3,317 Dilutive effect of employee stock plans 66 93 Dilutive weighted average common shares outstanding 3,107 3,410 Basic earnings per share $ 0.74 $ 0.64 Diluted earnings per share $ 0.72 $ 0.63 Shares subject to anti-dilutive restricted stock-based awards and stock options excluded from calculation (1) 36 55 (1) These weighted shares relate to anti-dilutive restricted service based stock based awards and stock options as calculated using the treasury stock method and contingently issuable shares, substantially all of which were related to performance based stock option (PSO) arrangements. Such shares could be dilutive in the future.

BASIS OF PRESENTATION, RECENT_4

BASIS OF PRESENTATION, RECENT ACCOUNTING PRONOUNCEMENTS AND OTHER Narrative (Details) - USD ($) $ in Millions	3 Months Ended
	Aug. 31, 2020	Aug. 31, 2019
Contract with Customer, Asset and Liability [Abstract]
Revenues recognized included in opening deferred revenue balance	$ 3,400	$ 3,500
Revenue, Performance Obligation [Abstract]
Remaining Performance Obligation, Amount, Total	$ 35,500
Remaining Performance Obligation, Percentage, to be recognized in the next twelve months	61.00%
Sales of Financing Receivables [Abstract]
Sales of financing receivables	$ 677	$ 705

BASIS OF PRESENTATION, RECENT_5

BASIS OF PRESENTATION, RECENT ACCOUNTING PRONOUNCEMENTS AND OTHER (Details) - USD ($) $ in Millions	3 Months Ended
	Aug. 31, 2020	Aug. 31, 2019
Acquisition Related and Other Expenses [Abstract]
Transitional and other employee related costs	$ 2	$ 4
Business combination adjustments, net	1	3
Other, net	16	18
Total acquisition related and other expenses	19	25
Non-Operating Income, net [Abstract]
Interest income	31	190
Foreign currency losses, net	(50)	(55)
Noncontrolling interests in income	(38)	(40)
Other, net	55	4
Total non-operating (expenses) income, net	$ (2)	$ 99

FAIR VALUE MEASUREMENTS (Detail

FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Millions	Aug. 31, 2020	May 31, 2020
Assets [Abstract]
Derivative financial instruments	$ 79	$ 29
Total assets	28,347	30,881
Liabilities [Abstract]
Derivative financial instruments	143	268
Commercial Paper Debt Securities [Member]
Assets [Abstract]
Investments and cash and cash equivalents	9,029	5,640
Money Market Funds [Member]
Assets [Abstract]
Investments and cash and cash equivalents	8,378	18,587
Corporate Debt Securities and Other [Member]
Assets [Abstract]
Investments and cash and cash equivalents	10,861	6,625
Fair Value Measurements Using Input Types Level 1 [Member]
Assets [Abstract]
Derivative financial instruments	0	0
Total assets	12,039	22,623
Liabilities [Abstract]
Derivative financial instruments	0	0
Fair Value Measurements Using Input Types Level 1 [Member] | Commercial Paper Debt Securities [Member]
Assets [Abstract]
Investments and cash and cash equivalents	0	0
Fair Value Measurements Using Input Types Level 1 [Member] | Money Market Funds [Member]
Assets [Abstract]
Investments and cash and cash equivalents	8,378	18,587
Fair Value Measurements Using Input Types Level 1 [Member] | Corporate Debt Securities and Other [Member]
Assets [Abstract]
Investments and cash and cash equivalents	3,661	4,036
Fair Value Measurements Using Input Types Level 2 [Member]
Assets [Abstract]
Derivative financial instruments	79	29
Total assets	16,308	8,258
Liabilities [Abstract]
Derivative financial instruments	143	268
Fair Value Measurements Using Input Types Level 2 [Member] | Commercial Paper Debt Securities [Member]
Assets [Abstract]
Investments and cash and cash equivalents	9,029	5,640
Fair Value Measurements Using Input Types Level 2 [Member] | Money Market Funds [Member]
Assets [Abstract]
Investments and cash and cash equivalents	0	0
Fair Value Measurements Using Input Types Level 2 [Member] | Corporate Debt Securities and Other [Member]
Assets [Abstract]
Investments and cash and cash equivalents	$ 7,200	$ 2,589

FAIR VALUE MEASUREMENTS Narrati

FAIR VALUE MEASUREMENTS Narrative (Details) - Senior notes [Member] - USD ($) $ in Billions	Aug. 31, 2020	May 31, 2020
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total debt, carrying value	$ 70.8	$ 71.6
Fair Value Measurements Using Input Types Level 2 [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total debt, fair value	$ 80.6	$ 80.9

INTANGIBLE ASSETS (Details)

INTANGIBLE ASSETS (Details) - USD ($) $ in Millions		3 Months Ended
		Aug. 31, 2020	Aug. 31, 2019	May 31, 2020
Acquired Finite-Lived Intangible Assets [Line Items]
Intangible Assets, Gross		$ 11,413		$ 11,401
Additions & Adjustments, net	[1]	12
Accumulated Amortization		(8,008)		(7,663)
Expense		(345)	$ (414)
Intangible Assets, Net		3,405		3,738
Developed technology [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Intangible Assets, Gross		4,474		4,471
Additions & Adjustments, net	[1]	3
Accumulated Amortization		(3,448)		(3,290)
Expense		(158)
Intangible Assets, Net		1,026		1,181
Cloud services and license support agreements and related relationships [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Intangible Assets, Gross		5,598		5,589
Additions & Adjustments, net	[1]	9
Accumulated Amortization		(3,435)		(3,271)
Expense		(164)
Intangible Assets, Net		2,163		2,318
Other [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Intangible Assets, Gross		1,341		1,341
Additions & Adjustments, net	[1]	0
Accumulated Amortization		(1,125)		(1,102)
Expense		(23)
Intangible Assets, Net		$ 216		$ 239
[1]

INTANGIBLE ASSETS AMORTIZATION

INTANGIBLE ASSETS AMORTIZATION (Details) - USD ($) $ in Millions	Aug. 31, 2020	May 31, 2020
Finite lived intangible assets future amortization expense [Abstract]
Remainder of fiscal 2021	$ 1,012
Fiscal 2022	1,106
Fiscal 2023	682
Fiscal 2024	445
Fiscal 2025	126
Fiscal 2026	24
Thereafter	10
Intangible Assets, Net	$ 3,405	$ 3,738

GOODWILL (Details)

GOODWILL (Details) $ in Millions	3 Months Ended
	Aug. 31, 2020USD ($)
Goodwill [Line Items]
Balances at period start	$ 43,769
Goodwill adjustments, net	98	[1]
Balances at period end	43,867
Cloud and License [Member]
Goodwill [Line Items]
Balances at period start	39,637
Goodwill adjustments, net	88	[1]
Balances at period end	39,725
Hardware [Member]
Goodwill [Line Items]
Balances at period start	2,367
Goodwill adjustments, net	0	[1]
Balances at period end	2,367
Services [Member]
Goodwill [Line Items]
Balances at period start	1,765
Goodwill adjustments, net	10	[1]
Balances at period end	$ 1,775
[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). Amounts also include any changes in goodwill balances for the period presented that resulted from foreign currency translations.

RESTRUCTURING ACTIVITIES Narrat

RESTRUCTURING ACTIVITIES Narrative (Details) - USD ($) $ in Millions	3 Months Ended
	Aug. 31, 2020	Aug. 31, 2019
Restructuring reserve [Line Items]
Restructuring expenses	$ 174	$ 78
Fiscal 2019 Oracle Restructuring [Member]
Restructuring reserve [Line Items]
Restructuring expenses	$ 172	$ 77

RESTRUCTURING ACTIVITIES (Detai

RESTRUCTURING ACTIVITIES (Details) $ in Millions	3 Months Ended
	Aug. 31, 2020USD ($)	[2]
Restructuring reserve [Line Items]
Accrued at period start	$ 151	[1]
Initial Costs	180	[3]
Adjustments to Cost	(6)	[4]
Cash Payments	(122)
Others	9	[5]
Accrued at period end	212	[1]
Fiscal 2019 Oracle Restructuring [Member]
Restructuring reserve [Line Items]
Accrued at period start	138	[1]
Initial Costs	178	[3]
Adjustments to Cost	(6)	[4]
Cash Payments	(121)
Others	10	[5]
Accrued at period end	199	[1]
Total Costs Accrued to Date	909
Total Expected Program Costs	915
Fiscal 2019 Oracle Restructuring [Member] | Other [Member]
Restructuring reserve [Line Items]
Accrued at period start	22	[1],[6]
Initial Costs	53	[3],[6]
Adjustments to Cost	0	[4],[6]
Cash Payments	(15)	[6]
Others	2	[5],[6]
Accrued at period end	62	[1],[6]
Total Costs Accrued to Date	316	[6]
Total Expected Program Costs	317	[6]
Fiscal 2019 Oracle Restructuring [Member] | Cloud and License [Member] | Operating Segments [Member]
Restructuring reserve [Line Items]
Accrued at period start	75	[1]
Initial Costs	86	[3]
Adjustments to Cost	(6)	[4]
Cash Payments	(74)
Others	6	[5]
Accrued at period end	87	[1]
Total Costs Accrued to Date	383
Total Expected Program Costs	386
Fiscal 2019 Oracle Restructuring [Member] | Hardware [Member] | Operating Segments [Member]
Restructuring reserve [Line Items]
Accrued at period start	14	[1]
Initial Costs	18	[3]
Adjustments to Cost	0	[4]
Cash Payments	(14)
Others	0	[5]
Accrued at period end	18	[1]
Total Costs Accrued to Date	98
Total Expected Program Costs	99
Fiscal 2019 Oracle Restructuring [Member] | Services [Member] | Operating Segments [Member]
Restructuring reserve [Line Items]
Accrued at period start	27	[1]
Initial Costs	21	[3]
Adjustments to Cost	0	[4]
Cash Payments	(18)
Others	2	[5]
Accrued at period end	32	[1]
Total Costs Accrued to Date	112
Total Expected Program Costs	113
Other Restructuring Plans [Member]
Restructuring reserve [Line Items]
Accrued at period start	13	[1],[7]
Initial Costs	2	[3],[7]
Adjustments to Cost	0	[4],[7]
Cash Payments	(1)	[7]
Others	(1)	[5],[7]
Accrued at period end	$ 13	[1],[7]
[1]	As of August 31, 2020 and May 31, 2020, substantially all restructuring liabilities have been recorded in other current liabilities within our condensed consolidated balance sheets.
[2]	Restructuring costs recorded for individual line items primarily related to employee severance costs.
[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]	Represents employee related severance costs for functions that are not included within our operating segments and certain other restructuring costs.
[7]	Other restructuring plans presented in the table above included condensed information for other Oracle based plans 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 (Details)

DEFERRED REVENUES (Details) - USD ($) $ in Millions	Aug. 31, 2020	May 31, 2020
Deferred Revenues [Line Items]
Deferred revenues, current	$ 9,875	$ 8,002
Deferred revenues, non-current (in other non-current liabilities)	671	597
Total deferred revenues	10,546	8,599
Cloud services and license support [Member] | Cloud and License [Member]
Deferred Revenues [Line Items]
Deferred revenues, current	8,733	6,996
Hardware [Member] | Hardware [Member]
Deferred Revenues [Line Items]
Deferred revenues, current	699	613
Services [Member] | Services [Member]
Deferred Revenues [Line Items]
Deferred revenues, current	403	365
Cloud license and on-premise license [Member] | Cloud and License [Member]
Deferred Revenues [Line Items]
Deferred revenues, current	$ 40	$ 28

DERIVATIVE FINANCIAL INSTRUME_3

DERIVATIVE FINANCIAL INSTRUMENTS Narrative (Details) - Foreign Currency Forward Contracts Not Designated as Hedges [Member] - USD ($) $ in Billions	Aug. 31, 2020	May 31, 2020
Forward contracts held to purchase U.S. Dollars [Member]
Foreign Currency Forward Contracts Not Designated as Hedges (Narrative) [Abstract]
Notional amounts of forward contracts	$ 3.7	$ 4.2
Forward contracts held to sell U.S. Dollars [Member]
Foreign Currency Forward Contracts Not Designated as Hedges (Narrative) [Abstract]
Notional amounts of forward contracts	$ 3.7	$ 3.9

DERIVATIVE FINANCIAL INSTRUME_4

DERIVATIVE FINANCIAL INSTRUMENTS EFFECTS ON BALANCE SHEETS (Details) - USD ($) $ in Millions	Aug. 31, 2020	May 31, 2020
Derivative assets:
Total derivative assets	$ 79	$ 29
Derivative liabilities:
Total derivative liabilities	143	268
Fair value hedges [Member] | Notes payable, current [Member]
Fair Values of Derivative Instruments Designated as Hedges in Condensed Consolidated Balance Sheets [Abstract]
Carrying amount of hedged item	1,524	0
Cumulative hedging adjustment included in the carrying amount	24	0
Fair value hedges [Member] | Notes payable and other borrowings, non-current [Member]
Fair Values of Derivative Instruments Designated as Hedges in Condensed Consolidated Balance Sheets [Abstract]
Carrying amount of hedged item	2,216	3,680
Cumulative hedging adjustment included in the carrying amount	110	75
Fair value hedges [Member] | Interest Rate Swaps [Member] | Other current assets [Member]
Derivative assets:
Total derivative assets	24	0
Fair value hedges [Member] | Interest Rate Swaps [Member] | Other non-current assets [Member]
Derivative assets:
Total derivative assets	0	29
Fair value hedges [Member] | Cross-currency interest rate swap agreements [Member] | Other non-current assets [Member]
Derivative assets:
Total derivative assets	55	0
Fair value hedges [Member] | Cross-currency interest rate swap agreements [Member] | Other non-current liabilities [Member]
Derivative liabilities:
Total derivative liabilities	0	17
Cash flow hedges [Member] | Cross-Currency Swaps [Member] | Other current liabilities [Member]
Derivative liabilities:
Total derivative liabilities	$ 143	$ 251

DERIVATIVE FINANCIAL INSTRUME_5

DERIVATIVE FINANCIAL INSTRUMENTS EFFECTS ON EARNINGS AND AOCL (Details) - USD ($) $ in Millions	3 Months Ended
	Aug. 31, 2020	Aug. 31, 2019
Derivative [Line Items]
Non-operating (expenses) income, net	$ (2)	$ 99
Interest expense	(614)	(494)
Cash flow hedges [Member] | Cross-Currency Swap Agreements [Member]
Effects of derivative instruments designated as hedges on income [Abstract]:
Cross-currency swap agreements designated as cash flow hedges	108	(32)
Non-Operating (Expenses) Income, Net [Member]
Derivative [Line Items]
Non-operating (expenses) income, net	(2)	99
Effects of derivative instruments designated as hedges on income [Abstract]:
Total gain (loss) on hedges recognized in income	112	(11)
Non-Operating (Expenses) Income, Net [Member] | Fair value hedges [Member] | Interest Rate Swaps [Member]
Effects of derivative instruments designated as hedges on income [Abstract]:
Derivative instruments	0	0
Hedged items	0	0
Non-Operating (Expenses) Income, Net [Member] | Fair value hedges [Member] | Cross-currency interest rate swap agreements [Member]
Effects of derivative instruments designated as hedges on income [Abstract]:
Derivative instruments	72	(18)
Hedged items	(63)	15
Non-Operating (Expenses) Income, Net [Member] | Cash flow hedges [Member] | Cross-Currency Swaps [Member]
Effects of derivative instruments designated as hedges on income [Abstract]:
Amount of gain (loss) reclassified from accumulated OCI	103	(8)
Interest Expense [Member]
Derivative [Line Items]
Interest expense	(614)	(494)
Effects of derivative instruments designated as hedges on income [Abstract]:
Total gain (loss) on hedges recognized in income	0	0
Interest Expense [Member] | Fair value hedges [Member] | Interest Rate Swaps [Member]
Effects of derivative instruments designated as hedges on income [Abstract]:
Derivative instruments	(5)	16
Hedged items	5	(16)
Interest Expense [Member] | Fair value hedges [Member] | Cross-currency interest rate swap agreements [Member]
Effects of derivative instruments designated as hedges on income [Abstract]:
Derivative instruments	2	23
Hedged items	(2)	(23)
Interest Expense [Member] | Cash flow hedges [Member] | Cross-Currency Swaps [Member]
Effects of derivative instruments designated as hedges on income [Abstract]:
Amount of gain (loss) reclassified from accumulated OCI	$ 0	$ 0

STOCKHOLDERS' EQUITY Narrative

STOCKHOLDERS' EQUITY Narrative (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	Sep. 10, 2020	Aug. 31, 2020	Aug. 31, 2019
Stock Repurchases [Abstract]
Amount available for future repurchases		$ 11,600
Repurchases of common stock (in shares)		89.8	89.5
Repurchased amount		$ 5,000	$ 5,000
Repurchased shares that were not settled (in shares)		0.9
Repurchased amount that was not settled		$ 55
Stock-based compensation expense and valuations of stock awards [Abstract]
Restricted stock-based units granted (in shares)		42
Forfeitures and cancellations (in shares)		20
Subsequent Event [Member]
Dividends on Common Stock [Abstract]
Dividends declared per share of outstanding common stock (in dollars per share)	$ 0.24
Dividend payable date	Oct. 22, 2020
Dividend record date	Oct. 8, 2020

STOCKHOLDERS' EQUITY (Details)

STOCKHOLDERS' EQUITY (Details) - USD ($) $ in Millions	3 Months Ended
	Aug. 31, 2020	Aug. 31, 2019
Stock-based compensation expense and valuations of stock awards [Abstract]
Total stock-based compensation	$ 428	$ 446
Cloud services and license support [Member]
Stock-based compensation expense and valuations of stock awards [Abstract]
Total stock-based compensation	30	31
Hardware [Member]
Stock-based compensation expense and valuations of stock awards [Abstract]
Total stock-based compensation	3	3
Services [Member]
Stock-based compensation expense and valuations of stock awards [Abstract]
Total stock-based compensation	12	14
Sales and marketing [Member]
Stock-based compensation expense and valuations of stock awards [Abstract]
Total stock-based compensation	71	88
Research and development [Member]
Stock-based compensation expense and valuations of stock awards [Abstract]
Total stock-based compensation	276	271
General and administrative [Member]
Stock-based compensation expense and valuations of stock awards [Abstract]
Total stock-based compensation	$ 36	$ 39

INCOME TAXES (Details)

INCOME TAXES (Details) - USD ($) $ in Billions	3 Months Ended
	Aug. 31, 2020	Aug. 31, 2019	May 31, 2020
Income Tax Disclosure [Abstract]
Effective income tax rate	13.30%	13.90%
Deferred Tax Assets, Net [Abstract]
Net deferred tax assets	$ 3.1		$ 3.2

SEGMENT INFORMATION Narrative (

SEGMENT INFORMATION Narrative (Details)	3 Months Ended
	Aug. 31, 2020BusinessSegment
Segment reporting information [Line Items]
Number of businesses | Business	3
Cloud and License [Member]
Segment reporting information [Line Items]
Number of operating segments	1
Hardware [Member]
Segment reporting information [Line Items]
Number of operating segments	1
Services [Member]
Segment reporting information [Line Items]
Number of operating segments	1

SEGMENT INFORMATION (Details)

SEGMENT INFORMATION (Details) - USD ($) $ in Millions		3 Months Ended
		Aug. 31, 2020	Aug. 31, 2019
Segment reporting information [Line Items]
Revenues		$ 9,367	$ 9,218
Cloud services and license support expenses	[1]	1,011	982
Sales and marketing expenses	[1]	1,854	2,018
Margin		3,211	2,877
Operating Segments [Member]
Segment reporting information [Line Items]
Revenues	[2]	9,368	9,220
Expenses		3,513	3,734
Margin	[3]	5,855	5,486
Operating Segments [Member] | Cloud and License [Member]
Segment reporting information [Line Items]
Revenues	[2]	7,834	7,619
Cloud services and license support expenses		958	931
Sales and marketing expenses		1,633	1,757
Margin	[3]	5,243	4,931
Operating Segments [Member] | Hardware [Member]
Segment reporting information [Line Items]
Revenues		814	815
Hardware products and support expenses		239	264
Sales and marketing expenses		98	117
Margin	[3]	477	434
Operating Segments [Member] | Services [Member]
Segment reporting information [Line Items]
Revenues		720	786
Services expenses		585	665
Margin	[3]	$ 135	$ 121
[1]	Exclusive of amortization of intangible assets, which is shown separately.
[2]	Cloud and license revenues presented for management reporting included revenues related to cloud and license obligations 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 due to business combination accounting requirements. See Note 9 of Notes to Consolidated Financial Statements included in our Annual Report on Form 10-K for the year ended May 31, 2020 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 research and development, general and administrative and certain other allocable expenses, net. Additionally, the margins reported above 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.

SEGMENT INFORMATION RECONCILIAT

SEGMENT INFORMATION RECONCILIATION (Details) - USD ($) $ in Millions		3 Months Ended
		Aug. 31, 2020	Aug. 31, 2019
Reconciliation of Operating Segment Revenues to Revenues [Abstract]
Total revenues		$ 9,367	$ 9,218
Reconciliation of Total Operating Segment Margin to Income Before Provision for Income Taxes [Abstract]
Total margin for operating segments		3,211	2,877
Total revenues		9,367	9,218
Research and development		(1,589)	(1,557)
General and administrative		(295)	(292)
Amortization of intangible assets		(345)	(414)
Acquisition related and other		(19)	(25)
Restructuring		(174)	(78)
Stock-based compensation for operating segments		(116)	(136)
Expense allocations and other, net		(105)	(105)
Interest expense		(614)	(494)
Non-operating (expenses) income, net		(2)	99
Income before provision for income taxes		2,595	2,482
Operating Segments [Member]
Reconciliation of Operating Segment Revenues to Revenues [Abstract]
Total revenues	[1]	9,368	9,220
Reconciliation of Total Operating Segment Margin to Income Before Provision for Income Taxes [Abstract]
Total margin for operating segments	[2]	5,855	5,486
Total revenues	[1]	9,368	9,220
Cloud and license revenues [Member]
Reconciliation of Operating Segment Revenues to Revenues [Abstract]
Total revenues	[3]	(1)	(2)
Reconciliation of Total Operating Segment Margin to Income Before Provision for Income Taxes [Abstract]
Total revenues	[3]	$ (1)	$ (2)
[1]	Cloud and license revenues presented for management reporting included revenues related to cloud and license obligations 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 due to business combination accounting requirements. See Note 9 of Notes to Consolidated Financial Statements included in our Annual Report on Form 10-K for the year ended May 31, 2020 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 research and development, general and administrative and certain other allocable expenses, net. Additionally, the margins reported above 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.
[3]	Cloud and license revenues presented

SUMMARY OF TOTAL REVENUES BY GE

SUMMARY OF TOTAL REVENUES BY GEOGRAPHIC REGION (Details) - USD ($) $ in Millions		3 Months Ended
		Aug. 31, 2020	Aug. 31, 2019
Disaggregation of Revenue [Line Items]
Total revenues		$ 9,367	$ 9,218
Americas [Member]
Disaggregation of Revenue [Line Items]
Total revenues		5,068	5,150
EMEA [Member]
Disaggregation of Revenue [Line Items]
Total revenues	[1]	2,738	2,553
Asia Pacific [Member]
Disaggregation of Revenue [Line Items]
Total revenues		$ 1,561	$ 1,515
[1]	Comprised of Europe, the Middle East and Africa

SUMMARY OF CLOUD SERVICES AND L

SUMMARY OF CLOUD SERVICES AND LICENSE SUPPORT REVENUES BY ECOSYSTEMS (Details) - USD ($) $ in Millions	3 Months Ended
	Aug. 31, 2020	Aug. 31, 2019
Disaggregation of Revenue [Line Items]
Total revenues	$ 9,367	$ 9,218
Applications Cloud Services and License Support [Member]
Disaggregation of Revenue [Line Items]
Total revenues	2,816	2,704
Infrastructure Cloud Services and License Support [Member]
Disaggregation of Revenue [Line Items]
Total revenues	4,131	4,101
Cloud services and license support [Member]
Disaggregation of Revenue [Line Items]
Total revenues	$ 6,947	$ 6,805

EARNINGS PER SHARE (Details)

EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions		3 Months Ended
		Aug. 31, 2020	Aug. 31, 2019
Earnings Per Share [Abstract]
Net income		$ 2,251	$ 2,137
Weighted average common shares outstanding		3,041	3,317
Dilutive effect of employee stock plans		66	93
Dilutive weighted average common shares outstanding		3,107	3,410
Basic earnings per share		$ 0.74	$ 0.64
Diluted earnings per share		$ 0.72	$ 0.63
Shares subject to anti-dilutive restricted stock-based awards and stock options excluded from calculation	[1]	36	55
[1]	These weighted shares relate to anti-dilutive restricted service based stock based awards and stock options as calculated using the treasury stock method and contingently issuable shares, substantially all of which were related to performance based stock option (PSO) arrangements. Such shares could be dilutive in the future.

LEGAL PROCEEDINGS (Details)

LEGAL PROCEEDINGS (Details)	Jul. 08, 2019Claim	Jun. 30, 2016USD ($)	Aug. 31, 2020USD ($)
Legal Proceedings [Line Items]
Plaintiffs claim alleged actions described date			Aug. 10, 2018
Number of derivative action filed with plaintiffs | Claim	2
Hewlett-Packard Litigation [Member]
Legal Proceedings [Line Items]
Damages awarded, value		$ 3,000,000,000
Damages paid, value			$ 0