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Table of Contents
ORACLE CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
May 31, 2006
19. BENEFIT PLANS
We offer various defined contribution plans for our U.S. and non-U.S. employees. Total defined contribution plan expense was $170 million, $147 million and
$92 million for fiscal years 2006, 2005 and 2004, respectively. In fiscal 2006 and 2005, we increased the number of plan participants in our defined contribution
plans as a result of additional employees from acquisitions as well as increased the number of countries that offer defined contribution plans.
In the United States, regular employees can participate in the Oracle Corporation 401(k) Savings and Investment Plan (Oracle 401(k) Plan). Participants can
generally contribute up to 40% of their eligible compensation annually as defined by the plan document or by the section 402(g) limit as defined by the Internal
Revenue Service. We match a portion of employee contributions, currently up to 6% of compensation each pay period, subject to maximum aggregate matching
amounts. Our contributions to the plan, net of forfeitures, were $58 million, $46 million and $32 million in fiscal 2006, 2005 and 2004.
We also offer non-qualified deferred compensation plans to certain key employees whereby they may defer a portion of their annual compensation until
retirement or a date specified by the employee in accordance with the plans. Deferred compensation plan assets and liabilities were approximately $165 million
and $139 million as of May 31, 2006 and 2005 and are presented in other assets and other long-term liabilities in the accompanying consolidated balance sheets.
20. RELATED PARTIES
We have entered into transactions with 12 companies over the last three fiscal years in which our Chief Executive Officer, directly or indirectly, has a controlling
interest. These companies purchased software and services for $4.7 million, $4.1 million and $2.1 million during fiscal 2006, 2005 and 2004, respectively. In
addition, we purchased goods and services from two of these companies for $1.0 million, $0.8 million and $0.9 million in fiscal 2006, 2005 and 2004,
respectively. The goods and services purchased from these companies related to consulting, training services and aircraft rental.
In fiscal 2004, we recorded royalty revenues of $1.0 million from a company in which our Chief Executive Officer holds a controlling interest and which was
permitted to sell its hosted business management applications solutions under the brand name Oracle Small Business Suite. We assisted this company’s efforts to
penetrate the small business market by incurring $0.3 million in marketing expense in fiscal 2004 promoting the Oracle Small Business Suite. In the fourth
quarter of fiscal 2004, we terminated the revenue sharing agreement with this company. In connection with our acquisition of PeopleSoft, we assumed a sublease
with this company and received payments of $0.1 million and $0.2 million during fiscal 2006 and 2005, respectively. The sublease was terminated in the first
quarter of fiscal 2006 when this company entered into a direct lease with the landlord.
In fiscal 2006, 2005 and 2004, we received $0.1 million, $0.6 million and $0.9 million, respectively, for purchases of software and services from two companies
affiliated with two other members of our Board of Directors who are, or were, executive officers of such companies. A member of our Board of Directors was
previously an executive officer of one such company until July 2005. Transactions with this company prior to the date of this Board member’s departure in July
2005 have been included in the preceding disclosure.
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Source: ORACLE CORP, 10-K, July 21, 2006 Powered by Morningstar® Document Research℠