product support deferred revenues, and hardware systems support deferred
revenues in our supplemental disclosure related to certain charges
(presented below) are not necessarily indicative of revenue improvements we
will achieve upon contract renewals to the extent customers do not renew.
Seasonality Our quarterly revenues have historically been affected by a variety of seasonal factors, including the structure of our sales force incentive compensation plans, which are common in the technology industry. Our total revenues and operating margins are typically highest in our fourth fiscal quarter and lowest in our first fiscal quarter. The operating margins of our businesses are generally affected by seasonal factors in a similar manner as our revenues (in particular, our new software licenses and cloud software subscriptions segment) as certain expenses within our cost structure are relatively fixed in the short term.
Constant Currency Presentation
Our international operations have provided and will continue to provide a significant portion of our total revenues and expenses. As a result, total revenues and expenses will continue to be affected by changes in the U.S. Dollar against major international currencies. In order to provide a framework for assessing how our underlying businesses performed excluding the effect of foreign currency fluctuations, we compare the percent change in the results from one period to another period in this Quarterly Report using constant currency disclosure. To present this information, current and comparative prior period results for entities reporting in currencies other than U.S. Dollars are converted into U.S. Dollars at constant exchange rates (i.e. the rates in effect on
May 31, 2013, which was the last day of our prior fiscal year) rather than the actual exchange rates in effect during the respective periods. For example, if an entity reporting in Euros had revenues of 1.0 million Eurosfrom products sold on August 31, 2013and 2012, our financial statements would reflect reported revenues of $1.33 millionin the first quarter of fiscal 2014 (using 1.33 as the month-end average exchange rate for the period) and $1.25 millionin the first quarter of fiscal 2013 (using 1.25 as the month-end average exchange rate for the period). The constant currency presentation would translate the results for the first quarter of fiscal 2014 and 2013 using the May 31, 2013exchange rate and indicate, in this example, no change in revenues during the period. In each of the tables below, we present the percent change based on actual, unrounded results in reported currency and in constant currency. 33
Table of Contents
Total Revenues and Operating Expenses
Three Months Ended August 31, Percent Change (Dollars in millions) 2013 Actual Constant 2012 Total Revenues by Geography: Americas
$ 4,5174% 5% $ 4,324EMEA(1) 2,439 2% 0% 2,383 Asia Pacific(2) 1,416 -4% 6% 1,474