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Table of Contents
ORACLE CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
May 31, 2006
13. PROPERTY
Property consisted of the following:
May 31,
(in millions)
Estimated
Useful Lives 2006 2005
Computer and network equipment 2-5 years $ 1,131 $ 1,121
Buildings and improvements 1-50 years 1,274 1,242
Furniture and fixtures 3-10 years 369 356
Land — 200 202
Automobiles 5 years 11 8
Construction in progress 66 —
Land and buildings held for sale — 94
Total property 1-50 years 3,051 3,023
Accumulated depreciation (1,660) (1,581)
Property, net $ 1,391 $ 1,442
As part of our restructuring and integration activities in fiscal 2005, we vacated owned property sites that were classified as held for sale at May 31, 2005 and
sold for a nominal gain in fiscal 2006.
14. GOODWILL AND INTANGIBLE ASSETS
The changes in the carrying amount of goodwill, which is not deductible for tax purposes, by operating segment for the years ended May 31, 2005 and 2006,
were as follows:
(in millions)
New
Software
Licenses
Software
License
Updates and
Product
Support Services Other Total
Balances as of May 31, 2004 $ 20 $ 17 $ 4 $ — $ 41
PeopleSoft acquisition goodwill 1,200 4,846 441 — 6,487
Other acquisition goodwill — — — 475 475
Balances as of May 31, 2005 1,220 4,863 445 475 7,003
Allocation of goodwill(1)
218 164 93 (475) —
Siebel acquisition goodwill 538 1,702 274 — 2,514
Other acquisition goodwill 280 147 57 — 484
Goodwill adjustments(2)
(42) (135) (15) — (192)
Balances as of May 31, 2006 $ 2,214 $ 6,741 $ 854 $ — $ 9,809
(1) Represents goodwill associated with fourth quarter fiscal 2005 acquisitions, primarily Retek, that was allocated to operating segments upon finalization of our
intangible asset valuations in the first quarter of fiscal 2006.
(2) Primarily associated with changes in our deferred taxes associated with PeopleSoft intangibles acquired, partially offset by liabilities recorded for
certain PeopleSoft pre-merger contingencies.
93
Source: ORACLE CORP, 10-K, July 21, 2006 Powered by Morningstar® Document Research℠