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Table of Contents
ORACLE CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
May 31, 2008
forma basis, as though the companies had been combined as of the beginning of fiscal 2007. 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 any borrowings (see Note 6) 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 effects on historical BEA, Agile, Hyperion and
other collectively significant companies’ operating results including the amortization expenses from acquired
intangible assets, stock-based compensation charges for unvested stock awards assumed, adjustments to
interest expense for borrowings and related tax effects as though the companies had been combined as of the
beginning of fiscal 2007.
The unaudited pro forma financial information for the year ended May 31, 2008 combines the historical
results of Oracle for the year ended May 31, 2008 and, due to differences in our reporting periods, the
historical results of BEA for the eleven months ended April 29, 2008, the historical results of Agile for the
period June 1, 2007 to July 15, 2007, and the pro forma adjustments listed above. 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 BEA for the
twelve months ended April 30, 2007, the historical results of Agile for the year ended April 30, 2007, the
historical results of Hyperion for the 10.5 months ended March 31, 2007, the historical results of other
collectively significant companies acquired based upon their respective previous reporting periods and the
dates that these companies were acquired by us, and the pro forma adjustments’ effects listed above.
Year Ended May 31,
(in millions, except per share data) 2008 2007
Total revenues $ 23,867 $ 20,391
Net income $ 5,209 $ 3,603
Basic net income per share $ 1.01 $ 0.70
Diluted net income per share $ 0.99 $ 0.68
3. CASH, CASH EQUIVALENTS AND MARKETABLE SECURITIES
Cash and cash equivalents primarily consist of deposits held at major banks, money market funds, Tier-1
commercial paper, U.S. Treasury obligations, U.S. government agency and government sponsored enterprise
obligations, and other securities with original maturities of 90 days or less. Marketable securities primarily
consist of time deposits held at major banks, Tier-1 commercial paper, corporate notes, U.S. Treasury
obligations and U.S. government agency and government sponsored enterprise debt obligations.
The amortized principal amounts of our cash, cash equivalents and marketable securities approximated their
fair values at May 31, 2008 and 2007. We use the specific identification method to determine any realized
gains or losses from the sale of our marketable securities classified as available-for-sale. Such realized gains
and losses were insignificant for fiscal 2008, 2007 and 2006. The following table summarizes the components
of our debt securities held, substantially all of which were classified as available-for-sale:
May 31,
(in millions) 2008 2007
U.S. Treasury, U.S. government and U.S. government agency debt
securities $ 1,159 $ 106
Corporate debt securities and other 3,069 2,188
Total debt security investments $ 4,228 $ 2,294
Debt security investments classified as cash equivalents $ 1,447 $ 1,492
Debt security investments classified as marketable securities $ 2,781 $ 802
85
Source: ORACLE CORP, 10-K, July 02, 2008 Powered by Morningstar® Document Research℠