ORACLE CORP [ORCL] Filings

10-Q 1 orcl-20241130.htm 10-Q 10-Q

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended November 30, 2024

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ____________ to ____________

Commission File Number: 001-35992

Oracle Corporation

(Exact name of registrant as specified in its charter)


Delaware		54-2185193
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

2300 Oracle Way Austin, Texas		78741
(Address of principal executive offices)		(Zip Code)

(737) 867-1000

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

    Title of each class

    Trading Symbol(s)

    Name of each exchange on which registered

    Common Stock, par value $0.01 per share 
3.125% senior notes due July 2025 

    ORCL
—

    New York Stock Exchange 
New York Stock Exchange 

   

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer ☒		Accelerated filer ☐
Non-accelerated filer ☐		Smaller reporting company ☐
		Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

The number of shares of registrant’s common stock outstanding as of December 6, 2024 was: 2,796,956,000.

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ORACLE CORPORATION

FORM 10-Q QUARTERLY REPORT

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		Page

PART I.	FINANCIAL INFORMATION	3

Item 1.	Financial Statements (Unaudited)	3

	Condensed Consolidated Balance Sheets as of November 30, 2024 and May 31, 2024	3

	Condensed Consolidated Statements of Operations for the Three and Six Months Ended November 30, 2024 and 2023	4

	Condensed Consolidated Statements of Comprehensive Income for the Three and Six Months Ended November 30, 2024 and 2023	5

	Condensed Consolidated Statements of Stockholders’ Equity for the Three and Six Months Ended November 30, 2024 and 2023	6

	Condensed Consolidated Statements of Cash Flows for the Six Months Ended November 30, 2024 and 2023	7

	Notes to Condensed Consolidated Financial Statements	8

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	22

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	39

Item 4.	Controls and Procedures	39

PART II.	OTHER INFORMATION	40

Item 1.	Legal Proceedings	40

Item 1A.	Risk Factors	40

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	40

Item 5.	Other Information	41

Item 6.	Exhibits	42

	Signatures	44

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Cautionary Note on Forward-Looking Statements

For purposes of this Quarterly Report on Form 10-Q (this Quarterly Report), the terms “Oracle,” “we,” “us” and “our” refer to Oracle Corporation and its consolidated subsidiaries. This Quarterly Report contains statements that are not historical in nature, are predictive in nature, or that depend upon or refer to future events or conditions or otherwise contain forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the Exchange Act), and Section 27A of the Securities Act of 1933, as amended (the Securities Act). These include, among other things, statements regarding:

•

our expectation that we may acquire, and realize the anticipated benefits of acquiring, companies, products, services and technologies to further our corporate strategy as compelling opportunities become available;

•

our expectation that, on a constant currency basis, our total cloud and license revenues generally will continue to increase due to expected growth in our cloud services and continued demand for our cloud license and on-premise license and license support offerings;

•

our expectation that substantially all of our customers will renew their license support contracts upon expiration;

•

our expectation that current and expected customer demand will require continued growth in our cloud services and license support expenses in order to increase our existing data center capacity and establish additional data centers in new geographic locations;

•

our expectation that our hardware business will have lower operating margins as a percentage of revenues than our cloud and license business;

•

our expectation that we will continue to make significant investments in research and development to maintain and improve our current products and service offerings, and our belief that research and development efforts are essential to maintaining our competitive position;

•

our expectations regarding the financial performance and long-term potential of one of our investment companies;

•

our expectation that our international operations will continue to provide a significant portion of our total revenues and expenses;

•

our expectation that the proportion of our cloud services revenues relative to our total revenues will continue to increase;

•

the sufficiency of our sources of funding for working capital, capital expenditures, contractual obligations, acquisitions, dividends, stock repurchases, debt repayments and other matters;

•

our belief that we have adequately provided under United States (U.S.) generally accepted accounting principles for outcomes related to our tax audits, that the final outcome of our tax-related examinations, agreements or judicial proceedings will not have a material effect on our results of operations, and that our net deferred tax assets will likely be realized in the foreseeable future;

•

our belief that the outcome of certain legal proceedings and claims to which we are a party will not, individually or in the aggregate, result in losses that are materially in excess of amounts already recognized, if any;

•

the possibility that certain legal proceedings to which we are a party could have a material impact on our financial position or results of operations;

•

the timing and amount of expenses we expect to incur;

•

the cost savings we expect to realize pursuant to the Fiscal 2024 Oracle Restructuring Plan;

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•

declarations of future cash dividend payments and the timing and amount of future stock repurchases, including our expectation that the levels of our future stock repurchase activity may be modified in comparison to past periods in order to use available cash for other purposes;

•

our ability to predict revenues, particularly certain cloud license and on-premise license revenues and hardware revenues;

•

the percentages of remaining performance obligations that we expect to recognize as revenues over respective future periods;

as well as other statements regarding our future operations, financial condition and prospects, and business strategies. Forward-looking statements may be preceded by, followed by or include the words “anticipates,” “believes,” “commits,” “continues,” “could,” “endeavors,” “estimates,” “expects,” “goal,” “intends,” “is designed to,” “likely,” “maintains,” “may,” “plans,” “potential,” “seeks,” “shall,” “should,” “strives,” “will” and similar expressions. We claim the protection of the safe harbor for forward-looking statements contained in the Exchange Act and the Securities Act for all forward-looking statements. We have based these forward-looking statements on our current expectations and projections about future events. These forward-looking statements are subject to risks, uncertainties and assumptions about our business that could affect our future results and could cause those results or other outcomes to differ materially from those expressed or implied in the forward-looking statements. Factors that might cause or contribute to such differences include, but are not limited to, those discussed in “Risk Factors” included in documents we file from time to time with the U.S. Securities and Exchange Commission, including our Annual Report on Form 10-K for the fiscal year ended May 31, 2024 and our other Quarterly Reports on Form 10-Q filed or to be filed by us in our fiscal year 2025, which runs from June 1, 2024 to May 31, 2025.

We have no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or risks, except to the extent required by applicable securities laws. If we do update one or more forward-looking statements, no inference should be drawn that we will make additional updates with respect to those or other forward-looking statements. New information, future events or risks could cause the forward-looking events we discuss in this Quarterly Report not to occur. You should not place undue reliance on these forward-looking statements, which reflect our expectations only as of the date of this Quarterly Report.

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PART I. FINANCIAL INFORMATION

Item 1. Financial Statements (Unaudited)

ORACLE CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

As of November 30, 2024 and May 31, 2024

(Unaudited)


(in millions, except per share data)	November 30, 2024			May 31, 2024
ASSETS
Current assets:
Cash and cash equivalents	$	10,941		$	10,454
Marketable securities		370			207
Trade receivables, net of allowances for credit losses of $546 and $485 as of November 30, 2024 and May 31, 2024, respectively		8,177			7,874
Prepaid expenses and other current assets		4,015			4,019
Total current assets		23,503			22,554
Non-current assets:
Property, plant and equipment, net		26,432			21,536
Intangible assets, net		5,679			6,890
Goodwill, net		62,204			62,230
Deferred tax assets		11,984			12,273
Other non-current assets		18,681			15,493
Total non-current assets		124,980			118,422
Total assets	$	148,483		$	140,976
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Notes payable and other borrowings, current	$	8,162		$	10,605
Accounts payable		2,679			2,357
Accrued compensation and related benefits		1,653			1,916
Deferred revenues		9,430			9,313
Other current liabilities		7,128			7,353
Total current liabilities		29,052			31,544
Non-current liabilities:
Notes payable and other borrowings, non-current		80,462			76,264
Income taxes payable		9,553			10,817
Deferred tax liabilities		2,864			3,692
Other non-current liabilities		12,316			9,420
Total non-current liabilities		105,195			100,193
Commitments and contingencies
Oracle Corporation stockholders’ equity:
Preferred stock, $0.01 par value—authorized: 1.0 shares; outstanding: none		—			—
Common stock, $0.01 par value and additional paid in capital—authorized: 11,000 shares; outstanding: 2,796 shares and 2,755 shares as of November 30, 2024 and May 31, 2024, respectively		34,310			32,764
Accumulated deficit		(19,045	)		(22,628	)
Accumulated other comprehensive loss		(1,519	)		(1,432	)
Total Oracle Corporation stockholders’ equity		13,746			8,704
Noncontrolling interests		490			535
Total stockholders’ equity		14,236			9,239
Total liabilities and stockholders’ equity	$	148,483		$	140,976

See notes to condensed consolidated financial statements.

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ORACLE CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

For the Three and Six Months Ended November 30, 2024 and 2023

(Unaudited)


	Three Months Ended November 30,						Six Months Ended November 30,
(in millions, except per share data)	2024			2023			2024			2023
Revenues:
Cloud services and license support	$	10,806		$	9,639		$	21,324		$	19,186
Cloud license and on-premise license		1,195			1,178			2,065			1,987
Hardware		728			756			1,383			1,470
Services		1,330			1,368			2,594			2,751
Total revenues		14,059			12,941			27,366			25,394
Operating expenses:
Cloud services and license support(1)		2,746			2,274			5,344			4,452
Hardware(1)		172			213			333			432
Services(1)		1,167			1,253			2,314			2,465
Sales and marketing(1)		2,190			2,093			4,226			4,118
Research and development		2,471			2,226			4,777			4,442
General and administrative		387			375			745			769
Amortization of intangible assets		591			755			1,215			1,518
Acquisition related and other		31			47			44			58
Restructuring		84			83			157			222
Total operating expenses		9,839			9,319			19,155			18,476
Operating income		4,220			3,622			8,211			6,918
Interest expense		(866	)		(888	)		(1,708	)		(1,760	)
Non-operating income (expenses), net		36			(14	)		57			(63	)
Income before income taxes		3,390			2,720			6,560			5,095
Provision for income taxes		239			217			480			172
Net income	$	3,151		$	2,503		$	6,080		$	4,923
Earnings per share:
Basic	$	1.13		$	0.91		$	2.19		$	1.80
Diluted	$	1.10		$	0.89		$	2.13		$	1.75
Weighted average common shares outstanding:
Basic		2,790			2,746			2,775			2,737
Diluted		2,869			2,817			2,860			2,820

(1)

Exclusive of amortization of intangible assets, which is shown separately.

See notes to condensed consolidated financial statements.

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ORACLE CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

For the Three and Six Months Ended November 30, 2024 and 2023

(Unaudited)


	Three Months Ended November 30,						Six Months Ended November 30,
(in millions)	2024			2023			2024			2023
Net income	$	3,151		$	2,503		$	6,080		$	4,923
Other comprehensive (loss) income, net of tax:
Net foreign currency translation (losses) gains		(217	)		86			3			42
Net unrealized gains (losses) on cash flow hedges		28			(17	)		(88	)		55
Other, net		(2	)		1			(2	)		(2	)
Total other comprehensive (loss) income, net		(191	)		70			(87	)		95
Comprehensive income	$	2,960		$	2,573		$	5,993		$	5,018

See notes to condensed consolidated financial statements.

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ORACLE CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

For the Three and Six Months Ended November 30, 2024 and 2023

(Unaudited)


	Three Months Ended November 30,						Six Months Ended November 30,
(in millions, except per share data)	2024			2023			2024			2023
Common stock and additional paid in capital
Balance, beginning of period	$	33,083		$	30,295		$	32,764		$	30,215
Common stock issued		128			118			307			426
Stock-based compensation		1,170			1,029			2,176			1,878
Repurchases of common stock		(11	)		(43	)		(24	)		(56	)
Shares repurchased for tax withholdings upon vesting of restricted stock-based awards		(47	)		(673	)		(898	)		(1,733	)
Other, net		(13	)		(2	)		(15	)		(6	)
Balance, end of period	$	34,310		$	30,724		$	34,310		$	30,724
Accumulated deficit
Balance, beginning of period	$	(20,939	)	$	(26,428	)	$	(22,628	)	$	(27,620	)
Repurchases of common stock		(139	)		(407	)		(276	)		(544	)
Cash dividends declared		(1,118	)		(1,099	)		(2,221	)		(2,190	)
Net income		3,151			2,503			6,080			4,923
Balance, end of period	$	(19,045	)	$	(25,431	)	$	(19,045	)	$	(25,431	)
Other stockholders’ equity, net
Balance, beginning of period	$	(875	)	$	(1,026	)	$	(897	)	$	(1,039	)
Other comprehensive (loss) income, net		(191	)		70			(87	)		95
Other, net		37			41			(45	)		29
Balance, end of period	$	(1,029	)	$	(915	)	$	(1,029	)	$	(915	)
Total stockholders’ equity	$	14,236		$	4,378		$	14,236		$	4,378
Cash dividends declared per common share	$	0.40		$	0.40		$	0.80		$	0.80

See notes to condensed consolidated financial statements.

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ORACLE CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

For the Six Months Ended November 30, 2024 and 2023

(Unaudited)


	Six Months Ended November 30,
(in millions)	2024			2023
Cash flows from operating activities:
Net income	$	6,080		$	4,923
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation		1,712			1,510
Amortization of intangible assets		1,215			1,518
Deferred income taxes		(601	)		(1,049	)
Stock-based compensation		2,176			1,878
Other, net		298			331
Changes in operating assets and liabilities:
(Increase) decrease in trade receivables, net		(451	)		145
Decrease in prepaid expenses and other assets		676			301
Decrease in accounts payable and other liabilities		(1,143	)		(1,048	)
Decrease in income taxes payable		(1,685	)		(1,541	)
Increase in deferred revenues		454			149
Net cash provided by operating activities		8,731			7,117
Cash flows from investing activities:
Purchases of marketable securities and other investments		(636	)		(515	)
Proceeds from sales and maturities of marketable securities and other investments		356			157
Acquisitions, net of cash acquired		—			(59	)
Capital expenditures		(6,273	)		(2,394	)
Net cash used for investing activities		(6,553	)		(2,811	)
Cash flows from financing activities:
Payments for repurchases of common stock		(300	)		(600	)
Proceeds from issuances of common stock		307			426
Shares repurchased for tax withholdings upon vesting of restricted stock-based awards		(898	)		(1,733	)
Payments of dividends to stockholders		(2,221	)		(2,190	)
(Repayments of) proceeds from issuances of commercial paper, net		(396	)		1,749
Proceeds from issuances of senior notes and term loan credit agreements, net of issuance costs		11,837			—
Repayments of senior notes and term loan credit agreements		(9,700	)		(3,500	)
Other, net		(276	)		31
Net cash used for financing activities		(1,647	)		(5,817	)
Effect of exchange rate changes on cash and cash equivalents		(44	)		(10	)
Net increase (decrease) in cash and cash equivalents		487			(1,521	)
Cash and cash equivalents at beginning of period		10,454			9,765
Cash and cash equivalents at end of period	$	10,941		$	8,244
Non-cash investing activities:
Unpaid capital expenditures	$	2,086		$	563

See notes to condensed consolidated financial statements.

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ORACLE CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

November 30, 2024

(Unaudited)

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 United States (U.S.) Securities and Exchange Commission (the 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, 2024.

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 the fiscal year ending May 31, 2025.

There have been no changes to our significant accounting policies as disclosed in our Annual Report on Form 10-K for the fiscal year ended May 31, 2024 that had a significant impact on our condensed consolidated financial statements or notes thereto as of and for the six months ended November 30, 2024.

Use of Estimates

Our condensed consolidated financial statements are prepared in accordance with GAAP as set forth in the Financial Accounting Standards Board’s (FASB) Accounting Standards Codification (ASC), and we consider various staff accounting bulletins and other applicable guidance issued by the SEC. These accounting principles require us to make certain estimates, judgments and assumptions. We believe that the estimates, judgments and assumptions upon which we rely are reasonable based upon information available to us at the time that these estimates, judgments and assumptions are made. These estimates, judgments and assumptions can affect the reported amounts of assets and liabilities as of the date of the financial statements as well as the reported amounts of revenues and expenses during the periods presented. To the extent that there are differences between these estimates, judgments or assumptions and actual results, our consolidated financial statements will be affected. In many cases, the accounting treatment of a particular transaction is specifically dictated by GAAP and does not require management’s judgment in its application. There are also areas in which management’s judgment in selecting among available alternatives would not produce a materially different result.

During the first quarter of fiscal 2025, we completed an assessment of the useful lives of our servers and networking equipment and increased the estimate of the useful lives from five years to six years, effective at the beginning of fiscal 2025. Based on the carrying value of our servers and networking equipment as of May 31, 2024, this change in accounting estimate decreased our total operating expenses by $189 million and increased our net income by $149 million, or $0.05 per both basic and diluted share, for the second quarter of fiscal 2025 and decreased our total operating expenses by $386 million and increased our net income by $306 million, or $0.11 per both basic and diluted share, for the first half of fiscal 2025.

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 November 30, 2024 and May 31, 2024 and our condensed consolidated statements of cash flows for the six months ended November 30, 2024 and 2023 was immaterial.

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ORACLE CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

November 30, 2024

(Unaudited)

Remaining Performance Obligations from Contracts with Customers

Trade receivables, net of allowance for credit losses, and deferred revenues are reported net of related uncollected deferred revenues in our condensed consolidated balance sheets as of November 30, 2024 and May 31, 2024. The revenues recognized during the six months ended November 30, 2024 and 2023 that were included in the opening deferred revenues balances as of May 31, 2024 and 2023 were approximately $6.9 billion and $6.8 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 and six months ended November 30, 2024 and 2023, respectively.

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, 2024, were $97.3 billion as of November 30, 2024, of which we expect to recognize approximately 39% as revenues over the next twelve months, 39% over the subsequent month 13 to month 36, 19% over the subsequent month 37 to month 60 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 $266 million and $861 million for the three and six months ended November 30, 2024, respectively, and $255 million and $816 million for the three and six months ended November 30, 2023, respectively.

Non-Marketable Investments

Our non-marketable debt investments and equity securities and related instruments totaled $1.9 billion and $2.0 billion as of November 30, 2024 and May 31, 2024, respectively, and are included in other non-current assets in the accompanying condensed consolidated balance sheets and are subject to periodic credit losses and impairment reviews. Certain of these non-marketable equity securities and related instruments are adjusted for observable price changes from orderly transactions. The majority of the non-marketable investments held as of these dates were with Ampere Computing Holdings LLC (Ampere), a related party entity in which we have an ownership interest of approximately 29% as of November 30, 2024. We follow the equity method of accounting for our investment in Ampere and our share of loss under the equity method of accounting is recorded in the non-operating income (expenses), net line item in our condensed consolidated statements of operations. We also have convertible debt investments in Ampere which, under the terms of an agreement with Ampere and other co-investors, will mature in June 2026 and are convertible into equity securities at the holder’s option under certain circumstances. During the six months ended November 30, 2024, we invested an aggregate of $135 million in convertible debt instruments issued by Ampere. The total carrying value of our investments in Ampere after accounting for losses under the equity method of accounting was $1.5 billion as of November 30, 2024. In accordance with the terms of an agreement with other co-investors, we are also a counterparty to certain put (exercisable by a co-investor) and call (exercisable by Oracle) options at prices of approximately $450 million to $1.5 billion, respectively, to acquire additional equity interests in Ampere from our co-investors through January 2027. If either of such options is exercised by us or our co-investors, we would obtain control of Ampere and consolidate its results with our results of operations. Ampere has historically generated net losses.

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ORACLE CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

November 30, 2024

(Unaudited)

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 November 30,					Six Months Ended November 30,
(in millions)	2024			2023		2024			2023
Transitional and other employee related costs	$	1		$	6	$	3		$	12
Business combination adjustments, net		(1	)		12		(5	)		13
Other, net		31			29		46			33
Total acquisition related and other expenses	$	31		$	47	$	44		$	58

Non-Operating Income (Expenses), net

Non-operating income (expenses), 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), net losses related to equity investments, including losses attributable to equity method investments (primarily Ampere) and net other income and expenses, including net unrealized gains and losses from our investment portfolio related to our deferred compensation plan and non-service net periodic pension income and losses.


	Three Months Ended November 30,						Six Months Ended November 30,
(in millions)	2024			2023			2024			2023
Interest income	$	149		$	133		$	283		$	269
Foreign currency losses, net		(9	)		(32	)		(59	)		(113	)
Noncontrolling interests in income		(47	)		(41	)		(90	)		(78	)
Losses from equity investments, net		(108	)		(79	)		(177	)		(197	)
Other income, net		51			5			100			56
Total non-operating income (expenses), net	$	36		$	(