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Table of Contents
ORACLE CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
May 31, 2007
Year Ended May 31,
(in millions, except per share data) 2007 2006
Total revenues $ 18,639 $ 16,485
Net income $ 4,012 $ 2,909
Basic net income per share $ 0.78 $ 0.55
Diluted net income per share $ 0.76 $ 0.54
3. RESTRUCTURING ACTIVITIES
Fiscal 2007 Restructuring Plan
During the fourth quarter of our fiscal year 2007, management approved and initiated plans to restructure
certain operations of pre-merger Hyperion to eliminate redundant costs resulting from the acquisition of
Hyperion and improve efficiencies in operations. The cash restructuring charges recorded are based on
restructuring plans that have been committed to by management.
The total estimated restructuring costs associated with exiting activities of Hyperion are $108 million,
consisting primarily of excess facilities obligations through fiscal 2019 as well as severance and other
restructuring costs. These costs were recognized as a liability assumed in the purchase business combination
and included in the allocation of the cost to acquire Hyperion and, accordingly, have resulted in an increase to
goodwill. Our restructuring expenses may change as management executes the approved plan. Future
decreases to the estimates of executing the Hyperion restructuring plan will be recorded as an adjustment to
goodwill indefinitely, whereas increases to the estimates will be recorded as an adjustment to goodwill during
the purchase accounting allocation period, and as an adjustment to operating expenses thereafter.
Fiscal 2006 Restructuring Plans
During the third quarter of our fiscal year 2006, management approved and initiated plans to restructure
certain operations of Oracle and pre-merger Siebel to eliminate redundant costs resulting from the acquisition
of Siebel and improve efficiencies in operations. The cash restructuring charges recorded are based on
restructuring plans that have been committed to by management.
The total estimated severance costs associated with the Fiscal 2006 Oracle Restructuring Plan are $92 million,
all of which have been incurred to date and were recorded to the restructuring expense line within our
consolidated statements of operations. Any changes to the estimates of executing the Fiscal 2006 Oracle
Restructuring Plan will be reflected in our future results of operations.
The total estimated restructuring costs associated with exiting activities of Siebel are $574 million, consisting
primarily of excess facilities obligations through fiscal 2022 as well as severance and other restructuring costs.
These costs were recognized as a liability assumed in the purchase business combination and included in the
allocation of the cost to acquire Siebel and, accordingly, have resulted in an increase to goodwill. Our
restructuring expenses may change as management executes the approved plan. Future decreases to the
estimates of executing the Siebel restructuring plan will be recorded as an adjustment to goodwill indefinitely,
whereas increases to the estimates will be recorded as operating expenses.
Fiscal 2005 Restructuring Plans
During the third quarter of fiscal 2005, management approved and initiated plans to restructure the operations
of Oracle, PeopleSoft, and Retek Inc. Total estimated restructuring costs associated with the Fiscal 2005
Oracle Restructuring Plan were $158 million and were recorded to the restructuring expense line within our
consolidated statements of operations. Total estimated restructuring costs associated with exiting activities of
PeopleSoft and
84
Source: ORACLE CORP, 10-K, June 29, 2007 Powered by Morningstar® Document Research℠