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Table of Contents
ORACLE CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
May 31, 2006
Summary of All Plans
Accrued
May 31,
2005
Year Ended May 31, 2006
Accrued
May 31,
2006(5)
Total
Costs
Accrued
to Date
Total
Expected
Program
Costs
(in millions)
Initial
Costs
Adj. to
Cost(3)
Cash
Payments Other(4)
Fiscal 2006 Oracle Restructuring Plan
New software licenses $ — $ 33 $ — $ (9) $ 1 $ 25 $ 33 $ 48
Software license updates and product support — 2 — (1) — 1 2 3
Consulting — 9 — (2) — 7 9 16
On Demand — 2 — (2) — — 2 2
Education — 2 — (1) — 1 2 2
Other(1)
— 26 — (19) 1 8 26 31
Total Fiscal 2006 Oracle Restructuring $ — $ 74 $ — $ (34) $ 2 $ 42 $ 74 $ 102
Fiscal 2005 Oracle Restructuring Plan
New software licenses $ 14 $ 10 $ (9) $ (13) $ 1 $ 3 $ 37 $ 37
Software license updates and product support 1 2 (1) (2) — — 6 6
Consulting 6 4 (3) (6) — 1 20 20
On Demand — — — — — — 2 2
Education 2 1 1 (3) — 1 6 6
Other(1)
6 2 4 (10) — 2 66 66
Total severance 29 19 (8) (34) 1 7 137 137
Total facilities(2)
21 — — (3) — 18 21 21
Total Fiscal 2005 Oracle Restructuring $ 50 $ 19 $ (8) $ (37) $ 1 $ 25 $ 158 $ 158
Siebel Restructuring Plan
Severance $ — $ 65 $ 6 $ (34) $ — $ 37 $ 71 $ 71
Facilities — 542 (58) (40) 2 446 484 484
Contracts and other — 36 (1) (9) — 26 35 35
Total Siebel Restructuring $ — $ 643 $ (53) $ (83) $ 2 $ 509 $ 590 $ 590
PeopleSoft and Retek Restructuring Plan
Severance $ 63 $ — $ (18) $ (42) $ — $ 3 $ 195 $ 195
Facilities 143 — (4) (45) 1 95 157 157
Contracts and other 20 — 13 (22) — 11 51 51
Total PeopleSoft and Retek Restructuring $ 226 $ — $ (9) $ (109) $ 1 $ 109 $ 403 $ 403
Total All Restructuring Plans $ 276 $ 736 $ (70) $ (263) $ 6 $ 685
(1) Other includes costs associated with research and development, general and administrative and marketing functions.
(2) Allocation of facility costs to operating lines of businesses and other functions was approximately $5 and $16, respectively.
(3) Primarily relates to the renegotiation of facility leases acquired in the Siebel acquisition as well as changes in estimates to severance and other restructuring
obligations related to the PeopleSoft acquisition.
(4) Represents foreign currency translation adjustments.
(5) Accrued restructuring at May 31, 2006 and 2005 was $685 and $276, respectively. The balances include $412 and $156 recorded in accrued restructuring,
current and $273 and $120 recorded in accrued restructuring, non-current in the accompanying consolidated balance sheets at May 31, 2006 and 2005,
respectively.
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Source: ORACLE CORP, 10-K, July 21, 2006 Powered by Morningstar® Document Research℠