Oracle 2007 Annual Report Download - page 101

Table of Contents
ORACLE CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
May 31, 2008
substantial defenses with respect to the legality and enforceability of the CAP contract provisions in response to any
claims seeking payment from us under the CAP terms.
10. STOCKHOLDERS’ EQUITY
Stock Repurchases
Our Board of Directors has approved a program for Oracle to repurchase shares of our common stock to reduce the
dilutive effect of our stock option and stock purchase plans. In April 2007, our Board of Directors expanded our
repurchase program by $4.0 billion and as of May 31, 2008, $2.2 billion was available for share repurchases pursuant
to our stock repurchase program. We repurchased 97.3 million shares for $2.0 billion (including 1.1 million shares
for $24 million that were repurchased but not settled), 233.5 million shares for $4.0 billion and 146.9 million shares
for $2.1 billion in fiscal 2008, 2007 and 2006, respectively.
Our stock repurchase authorization does not have an expiration date and the pace of our repurchase activity will
depend on factors such as our working capital needs, our cash requirements for acquisitions, our debt repayment
obligations (as described above), our stock price, and economic and market conditions. Our stock repurchases may be
effected from time to time through open market purchases or pursuant to a Rule 10b5-1 plan. Our stock repurchase
program may be accelerated, suspended, delayed or discontinued at any time.
Accumulated Other Comprehensive Income
The following table summarizes, as of each balance sheet date, the components of our accumulated other
comprehensive income, net of income taxes (income tax effects were insignificant for all periods presented):
May 31,
(in millions) 2008 2007
Foreign currency translation gain, net $ 690 $ 390
Unrealized losses on derivatives (86) (9)
Unrealized gains on marketable securities, net 3 2
Unrealized gains on defined benefit plan assets, net 11 20
Total accumulated other comprehensive income $ 618 $ 403
Rights Agreement
On March 31, 2008, our stockholder rights plan expired by its terms.
11. EMPLOYEE BENEFIT PLANS
Stock-based Compensation Plans
Stock Option Plans
In fiscal 2001, we adopted the 2000 Long-Term Equity Incentive Plan (the 2000 Plan), which replaced the 1991
Long-Term Equity Incentive Plan (the 1991 Plan) and provides for the issuance of non-qualified stock options and
incentive stock options, as well as stock purchase rights, stock appreciation rights and long-term performance awards
to our eligible employees, officers, directors who are also employees or consultants, independent consultants and
advisers. In fiscal 2005, the 2000 Plan was amended and restated to, among other things, eliminate the ability to
reprice options without stockholder approval, to provide our Board of Directors (Board) with the ability to grant
restricted stock awards, to permit us to grant performance-based equity awards for eligible tax deductibility, to
provide our Board with the ability to issue transferable equity awards and to eliminate the ability to buyout
employees’ options with cash or common stock. Under the terms of the 2000 Plan, options to purchase
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Source: ORACLE CORP, 10-K, July 02, 2008 Powered by Morningstar® Document Research℠