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Table of Contents
ORACLE CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
May 31, 2007
14. GOODWILL AND INTANGIBLE ASSETS
The changes in the carrying amount of goodwill, which is generally not deductible for tax purposes, by
operating segment for fiscal 2007 and 2006, were as follows:
Software
License
New Updates and
Software Product
(in millions) Licenses Support Services Other(1) Total
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
Hyperion acquisition
goodwill(1) — — — 1,673 1,673
i-flex acquisition goodwill 687 276 609 — 1,572
Other acquisition goodwill 295 195 49 10 549
Goodwill adjustments(2) (27) (90) (7) — (124)
Balances as of May 31, 2007 $ 3,169 $ 7,122 $ 1,505 $ 1,683 $ 13,479
(1) Represents goodwill associated with certain acquisitions that was or will be allocated to operating
segments upon finalization of our intangible asset valuations.
(2) Primarily relates to the renegotiation of facility leases acquired in the Siebel acquisition and adjustments
to deferred taxes.
The changes in intangible assets for fiscal 2007 and the net book value of intangible assets at May 31, 2007
and 2006 were as follows:
Intangible Assets, Gross Accumulated Amortization Net Book Value Weighted
May 31, May 31, May 31, May 31, May 31, May 31, Average
(Dollars in millions) 2006 Additions 2007 2006 Expense 2007 2006 2007 Useful Life
Software support
agreements and related
relationships $ 2,949 $ 703 $ 3,652 $ (329) $ (321) $ (650) $ 2,620 $ 3,002 10 years
Developed technology 1,336 1,006 2,342 (333) (355) (688) 1,003 1,654 5 years
Core technology 594 289 883 (121) (133) (254) 473 629 5 years
Customer relationships 375 224 599 (41) (44) (85) 334 514 9 years
Trademarks 117 92 209 (19) (25) (44) 98 165 8 years
Total $ 5,371 $ 2,314 $ 7,685 $ (843) $ (878) $ (1,721) $ 4,528 $ 5,964
Total amortization expense related to our intangible assets was $878 million, $583 million and $219 million
in fiscal 2007, 2006 and 2005, respectively. Estimated future amortization expense related to our intangible
assets is $1.1 billion in both fiscal 2008 and fiscal 2009, $976 million in fiscal 2010, $756 million in fiscal
2011, $620 million in fiscal 2012 and $1.4 billion thereafter.
101
Source: ORACLE CORP, 10-K, June 29, 2007 Powered by Morningstar® Document Research℠