Oracle 2006 Annual Report Download - page 89

Download and view the complete annual report

Please find page 89 of the 2006 Oracle annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 133

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133

Table of Contents
ORACLE CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
May 31, 2007
Fiscal 2005 Acquisitions
PeopleSoft, Inc.
We acquired approximately 75% and 97% of the outstanding common stock of PeopleSoft, Inc. for $26.50 per
share in cash as of December 29, 2004 and January 6, 2005, respectively. On January 7, 2005, we completed
the merger of our wholly-owned subsidiary with and into PeopleSoft and converted each remaining
outstanding share of PeopleSoft common stock not tendered, into a right to receive $26.50 per share in cash,
without interest.
The total purchase price was $11.1 billion, which consisted of $10,576 million in cash paid to acquire the
outstanding common stock of PeopleSoft, $492 million for the fair value of options assumed and $12 million
in cash for transaction costs. In allocating the purchase price based on estimated fair values, we recorded
approximately $6,253 million of goodwill, $3,384 million of identifiable intangible assets, $1,410 million of
net tangible assets and $33 million of IPR&D expense.
Retek Inc.
We purchased 5.5 million shares of common stock of Retek Inc. on March 7 and 8, 2005, through ordinary
brokerage transactions at prevailing market prices for a weighted-average price of $8.82 per share. In April
and May 2005, we acquired the remaining outstanding common stock of Retek for $11.25 per share, or
$584 million.
The total purchase price was $701 million, comprised of $633 million of cash paid to acquire the outstanding
common stock of Retek, $32 million of cash paid for outstanding stock options and $36 million of acquisition
related transaction costs. In allocating the purchase price based on estimated fair values, we recorded
approximately $434 million of goodwill, $133 million of identifiable intangible assets, $127 million of net
tangible assets and $7 million of IPR&D expense.
Unaudited Pro Forma Financial Information
The unaudited financial information in the table below summarizes the combined results of operations of
Oracle, Hyperion, Siebel and other collectively significant companies acquired, on a pro forma basis, as
though the companies had been combined as of the beginning of each of the periods presented. The pro forma
financial information is presented for informational purposes only and is not indicative of the results of
operations that would have been achieved if the acquisitions and our short-term and long-term borrowings (see
Note 5) had taken place at the beginning of each of the periods presented. The pro forma financial information
for all periods presented also includes the business combination accounting effect on historical Hyperion,
Siebel and other collectively significant companies’ support revenues, amortization charges from acquired
intangible assets, stock-based compensation charges for unvested options assumed (pursuant to Statement
123R and APB 25 for fiscal 2007 and fiscal 2006, respectively), Oracle restructuring costs, adjustments to
interest expense and related tax effects.
The unaudited pro forma financial information for the year ended May 31, 2007 combines the historical results
of Oracle for the year ended May 31, 2007 and, due to differences in our reporting periods, the historical
results of Hyperion for the 10.5 months ended March 31, 2007 and the historical results of other collectively
significant companies acquired based upon their respective previous reporting periods and dates acquired by
Oracle. The unaudited pro forma financial information for the year ended May 31, 2006 combines the
historical results for Oracle, with the historical results of Hyperion for the year ended June 30, 2006, the
historical results of other collectively significant companies acquired based upon their respective previous
reporting periods and dates acquired by Oracle, and due to differences in our reporting periods, the historical
results of Siebel for the eight months ended December 31, 2005.
83
Source: ORACLE CORP, 10-K, June 29, 2007 Powered by Morningstar® Document Research℠