Oracle 2006 Annual Report Download - page 102

Table of Contents
ORACLE CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
May 31, 2007
be effected from time to time through open market purchases or pursuant to a Rule 10b5-1 plan. Our stock
repurchase program may be accelerated, suspended, delayed or discontinued at any time.
Rights Agreement
In connection with the Reorganization, on January 31, 2006 our Board of Directors distributed preferred stock
purchase rights as a dividend at the rate of one right for each share of our common stock held by stockholders
of record as of January 31, 2006 pursuant to a preferred shares rights agreement dated January 31, 2006
(Rights Agreement), which was based on the preferred shares rights agreement of Old Oracle prior to the
Reorganization. The Board of Directors also authorized the issuance of a right for each share of common
stock issued after the record date, until the occurrence of certain specified events. The Rights Agreement was
adopted to provide protection to stockholders in the event of an unsolicited attempt to acquire us.
Each right is initially exercisable for one-six thousand seven hundred fiftieth of a share of our Series A Junior
Participating Preferred Stock at a price of $125 per one-six thousand seven hundred fiftieth of a share, subject
to adjustment. The rights are not exercisable until the earlier of: (1) ten days (or such later date as may be
determined by the Board of Directors) following an announcement that a person or group has acquired
beneficial ownership of 15% or more of our common stock or (2) ten days (or such later date as may be
determined by the Board of Directors) following the commencement of a tender offer which, if successfully
consummated, would result in a person or group obtaining beneficial ownership of 15% or more of our
outstanding common stock, subject in each case to certain exceptions (the earlier of such dates being called
the distribution date). After the distribution date, holders of rights (other than the 15% or greater holder) will
be entitled to receive upon exercise of the right and payment of exercise price, shares of our common stock
(or, in certain types of transactions, common stock of the acquirer) having a market value of two times the
exercise price of the right. Alternatively, we may require the exchange of rights, at a rate of one share of
common stock for each right, without payment of exercise price, under certain circumstances.
We are entitled to redeem the rights, for $0.00148 per right, at the discretion of the Board of Directors, until
certain specified times. The Board of Directors also has the ability to amend the Rights Agreement without
approval of the holders of the rights, subject to certain limitations. Unless earlier redeemed or exchanged, the
rights will expire at the close of business on March 31, 2008.
Accumulated Other Comprehensive Income
The following table summarizes, as of each balance sheet date, the components of our accumulated other
comprehensive income, net of income taxes (income tax effects were insignificant for all periods presented):
May 31,
(in millions) 2007 2006
Foreign currency translation adjustment $ 390 $ 308
Unrealized loss on derivatives (9) (37)
Unrealized gain on investments 2 6
Minimum benefit plan liability adjustment — (19)
Unrealized components of defined benefit pension plan, net 20 —
Accumulated other comprehensive income $ 403 $ 258
95
Source: ORACLE CORP, 10-K, June 29, 2007 Powered by Morningstar® Document Research℠