Oracle 2005 Annual Report Download - page 46

Download and view the complete annual report

Please find page 46 of the 2005 Oracle annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 118

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118

Table of Contents
Fiscal 2006 Compared to Fiscal 2005: Excluding the effect of currency rate fluctuations, general and administrative expenses increased slightly due to higher
litigation expenses and increased salary costs, partially offset by lower bonus expenditures.
Fiscal 2005 Compared to Fiscal 2004: Excluding the effect of currency rate fluctuations, general and administrative expenses increased primarily due to higher
discretionary bonuses and benefit expenses.
Amortization of Intangible Assets:
Year Ended May 31, Average
Useful
Life
(Dollars in millions) 2006 Change 2005 Change 2004
Software support agreements and related relationships $ 241 174% $ 88 * $ — 10 years
Developed technology 206 140% 86 139% 36 5 years
Core technology 91 203% 30 * — 5 years
Customer contracts 30 200% 10 * — 10 years
Trademarks 15 200% 5 * — 7 years
Total amortization of intangible assets $ 583 166% $ 219 508% $ 36
* not meaningful
Fiscal 2006 Compared to Fiscal 2005: Amortization of intangible assets increased due to amortization of purchased intangibles from Siebel and other
acquisitions in fiscal 2006 as well as a full year of amortization in fiscal 2006 related to PeopleSoft intangibles acquired compared with only five months of
amortization in fiscal 2005.
Fiscal 2005 Compared to Fiscal 2004: Amortization of intangible assets increased due to amortization of purchased intangibles associated with the PeopleSoft
acquisition.
Acquisition Related Charges: Acquisition related charges primarily consist of in-process research and development expenses, integration-related professional
services, stock-compensation expenses and personnel related costs for transitional employees. Stock-based compensation included in acquisition related charges
relates to unvested options assumed from acquisitions whose vesting was fully accelerated upon termination of the employees pursuant to the terms of these
options.
Year Ended May 31,
(Dollars in millions) 2006 Change 2005 Change 2004
In-process research and development $ 78 70% $ 46 * $ —
Transitional employee related costs 30 -42% 52 * —
Stock-based compensation 18 -62% 47 * —
Professional fees 11 -83% 63 17% 54
Total acquisition related charges $ 137 -34% $ 208 285% $ 54
* not meaningful
Fiscal 2006 Compared to Fiscal 2005: Acquisition related charges decreased due to lower professional fees, stock-based compensation charges and lower
transitional employee costs, partially offset by higher in-process research and development charges primarily related to the Siebel acquisition.
43
Source: ORACLE CORP, 10-K, July 21, 2006 Powered by Morningstar® Document Research℠