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Table of Contents
ORACLE CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
May 31, 2007
The aforementioned unconditional purchase obligations amounts include a property commitment entered into
by one of our subsidiaries to purchase land and buildings for approximately $342 million, of which
approximately $64 million was paid in fiscal 2007 and $66 million was paid in fiscal 2006. The remaining
commitments for the property will be paid in fiscal 2009.
19. BENEFIT PLANS
We offer various defined contribution plans for our U.S. and non-U.S. employees. Total defined contribution
plan expense was $198 million, $170 million and $147 million for fiscal years 2007, 2006 and 2005,
respectively. In fiscal 2007, fiscal 2006 and 2005, we increased the number of plan participants in our defined
contribution plans primarily as a result of additional employees from our acquisitions.
In the United States, regular employees can participate in the Oracle Corporation 401(k) Savings and
Investment Plan (Oracle 401(k) Plan). Participants can generally contribute up to 40% of their eligible
compensation on a per-pay-period basis as defined by the plan document or by the section 402(g) limit as
defined by the Internal Revenue Service. We match a portion of employee contributions, currently 50% up to
6% of compensation each pay period, subject to maximum aggregate matching amounts. Our contributions to
the plan, net of forfeitures, were $67 million, $58 million and $46 million in fiscal 2007, 2006 and 2005,
respectively.
We also offer non-qualified deferred compensation plans to certain key employees whereby they may defer a
portion of their annual base and/or variable compensation until retirement or a date specified by the employee
in accordance with the plans. Deferred compensation plan assets and liabilities were approximately
$195 million and $165 million as of May 31, 2007 and 2006, respectively, and are presented in other assets
and other long-term liabilities in the accompanying consolidated balance sheets.
In September 2006, FASB Statement No. 158, Employers’ Accounting for Defined Benefit Pension and Other
Postretirement Plans, an amendment of FASB Statements No. 87, 88, 106 and 132(R) was issued. Statement
158 requires plan sponsors of defined benefit pension and other postretirement benefit plans (Plans) to
recognize the funded status of their Plans in the balance sheet, measure the fair value of plan assets and
benefit obligations as of the date of the balance sheet and provide additional disclosures.
We are the sponsor of a defined benefit pension plan covering certain employees in the United Kingdom and,
on May 31, 2007 we adopted the recognition and disclosure provisions of Statement 158. Statement 158
required us to recognize the funded status (i.e., the difference between the fair value of plan assets and the
projected benefit obligations) of our pension plan in the May 31, 2007 balance sheet, with a corresponding
adjustment to accumulated other comprehensive income, net of tax. The net of tax impact on accumulated
other comprehensive income of adopting Statement 158 was $29 million at May 31, 2007.
20. RELATED PARTIES
We have entered into transactions with 11 companies over the last three fiscal years in which our Chief
Executive Officer, directly or indirectly, has a controlling interest. These companies purchased software and
services for $2.3 million, $4.7 million and $4.1 million during fiscal 2007, 2006 and 2005, respectively. In
addition, we purchased goods and services from five of these companies for $1.8 million, $1.0 million and
$0.8 million in fiscal 2007, 2006 and 2005, respectively.
In connection with our acquisition of PeopleSoft, we assumed a sublease with a company in which our Chief
Executive Officer holds a controlling interest and we received payments of $0.1 million and $0.2 million
during fiscal 2006 and 2005, respectively. The sublease was terminated in the first quarter of fiscal 2006
when this company entered into a direct lease with the landlord.
In fiscal 2006 and 2005, we received $0.1 million and $0.6 million, respectively, for purchases of software
and services from two companies affiliated with two other members of our Board of Directors who are, or
were,
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Source: ORACLE CORP, 10-K, June 29, 2007 Powered by Morningstar® Document Research℠