Oracle 2006 Annual Report Download - page 56

Table of Contents
significant assumptions used in our information within the context of our consolidated financial position,
results of operations and cash flows. The following is a summary of our contractual obligations as of May 31,
2007:
Year Ending May 31,
(Dollars in millions) Total 2008 2009 2010 2011 2012 Thereafter
Principal payments on
short-term borrowings and
long-term debt(1) $ 7,611 $ 1,361 $ 1,000 $ 1,000 $ 2,250 $ — $ 2,000
Capital leases(2) 3 3 — — — — —
Interest payments on
short-term borrowings and
long-term debt(1) 1,658 325 321 269 218 105 420
Operating leases(3) 1,448 339 301 242 162 124 280
Purchase obligations(4) 292 73 196 3 3 3 14
Funding commitments(5) 3 3 — — — — —
Total contractual
obligations $ 11,015 $ 2,104 $ 1,818 $ 1,514 $ 2,633 $ 232 $ 2,714
(1) Short-term borrowings and long-term debt consists of the following as of May 31, 2007:
Principal Balance
Commercial paper notes (effective interest rate of 5.33)% $ 1,355
Floating rate senior notes due May 2009 (effective interest rate of 5.38)% 1,000
Floating rate senior notes due May 2010 (effective interest rate of 5.42)% 1,000
5.00% senior notes due January 2011, net of discount of $6 2,244
5.25% senior notes due January 2016, net of discount of $9 1,991
Other 3
Total borrowings $ 7,593
(1) Interest payments were calculated based on terms of the related agreements and include estimates
based on the effective interest rates as of May 31, 2007 for variable rate borrowings. See Note 5 of
Notes to Consolidated Financial Statements for additional information related to our borrowings.
(2) Represents remaining payments under capital leases of computer equipment assumed from
acquisitions.
(3) Primarily represents leases of facilities and includes future minimum rent payments for facilities that
we have vacated pursuant to our restructuring and merger integration activities. We have
approximately $364 million in facility obligations, net of estimated sublease income and other costs, in
accrued restructuring for these locations in our consolidated balance sheet at May 31, 2007.
(4) Represents amounts associated with agreements that are enforceable, legally binding and specify terms,
including: fixed or minimum quantities to be purchased; fixed, minimum or variable price provisions;
and the approximate timing of the payment.
(5) Represents the maximum additional capital we may need to contribute toward our venture fund
investments which are payable upon demand.
In May 2007, we entered into an agreement to acquire Agile Software Corporation, a leading provider of
product lifecycle management software, for $8.10 per share in cash, or approximately $495 million. The
merger is subject to stockholder and regulatory approval and other customary closing conditions and is
expected to close in mid to late July 2007. This commitment is not reflected in the above table.
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Source: ORACLE CORP, 10-K, June 29, 2007 Powered by Morningstar® Document Research℠