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Table of Contents
ORACLE CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
May 31, 2008
alternative transition method as prescribed under FASB Staff Position FAS 123R-3, Transition Election to
Accounting for the Tax Effects of Share-Based Payment Awards.
Employee Stock Purchase Plan
We have an Employee Stock Purchase Plan (Purchase Plan). Starting with the April 1, 2005 semi-annual
option period, we amended the Purchase Plan such that employees can purchase shares of common stock at a
price per share that is 95% of the fair value of Oracle stock as of the end of the semi-annual option period. As
of May 31, 2008, 81 million shares were reserved for future issuances under the Purchase Plan. During fiscal
2008, 2007 and 2006, we issued 3 million, 3 million and 6 million shares, respectively, under the Purchase
Plan.
Defined Contribution and Other Postretirement Plans
We offer various defined contribution plans for our U.S. and non-U.S. employees. Total defined contribution
plan expense was $234 million, $198 million and $170 million for fiscal years 2008, 2007 and 2006,
respectively. The number of plan participants in our defined contribution plans has increased primarily as a
result of additional eligible 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 United States 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 $80 million, $67 million and $58 million in fiscal 2008,
2007 and 2006, 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
$210 million and $195 million as of May 31, 2008 and 2007, respectively, and are presented in other assets
and other long-term liabilities in the accompanying consolidated balance sheets.
12. INCOME TAXES
The following is a geographical breakdown of income before the provision for income taxes:
Year Ended May 31,
(in millions) 2008 2007 2006
Domestic $ 3,930 $ 3,302 $ 2,727
Foreign 3,904 2,684 2,083
Total income before provision for income taxes $ 7,834 $ 5,986 $ 4,810
101
Source: ORACLE CORP, 10-K, July 02, 2008 Powered by Morningstar® Document Research℠