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Table of Contents
ORACLE CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
May 31, 2008
Substantially all of our debt security investments held as of May 31, 2008 mature within one year. Our investment
portfolio is subject to market risk due to changes in interest rates. We place our investments with high credit quality
issuers as described above and, by policy, limit the amount of credit exposure to any one issuer. As stated in our
investment policy, we are averse to principal loss and seek to preserve our invested funds by limiting default risk,
market risk and reinvestment risk.
4. PROPERTY
Property consisted of the following:
Estimated May 31,
(Dollars in millions) Useful Lives 2008 2007
Computer and network equipment 2-5 years $ 1,279 $ 1,379
Buildings and improvements 1-50 years 1,505 1,350
Furniture and fixtures 3-10 years 433 385
Land — 212 204
Automobiles 5 years 5 5
Construction in progress — 206 136
Total property 1-50 years 3,640 3,459
Accumulated depreciation (1,952) (1,856)
Total property, net $ 1,688 $ 1,603
5. INTANGIBLE ASSETS AND GOODWILL
The changes in intangible assets for fiscal 2008 and the net book value of intangible assets at May 31, 2008 and 2007
were as follows:
Intangible Assets, Gross Accumulated Amortization Intangible Assets, net Weighted
May 31, May 31, May 31, May 31, May 31, May 31, Average
(Dollars in millions) 2007 Additions 2008 2007 Expense 2008 2007 2008 Useful Life
Software support agreements and
related relationships $ 3,652 $ 1,197 $ 4,849 $ (650) $ (402) $ (1,052) $ 3,002 $ 3,797 9 years
Developed technology 2,342 1,265 3,607 (688) (515) (1,203) 1,654 2,404 5 years
Core technology 883 544 1,427 (254) (178) (432) 629 995 6 years
Customer relationships 599 584 1,183 (85) (85) (170) 514 1,013 9 years
Trademarks 209 53 262 (44) (32) (76) 165 186 7 years
Total $ 7,685 $ 3,643 $ 11,328 $ (1,721) $ (1,212) $ (2,933) $ 5,964 $ 8,395
Total amortization expense related to our intangible assets was $1.2 billion, $878 million and $583 million in fiscal
2008, 2007 and 2006, respectively. Estimated future amortization expense related to our intangible assets is
$1.7 billion in fiscal 2009, $1.5 billion in fiscal 2010, $1.3 billion in fiscal 2011, $1.1 billion in fiscal 2012,
$962 million in fiscal 2013 and $1.8 billion thereafter.
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Source: ORACLE CORP, 10-K, July 02, 2008 Powered by Morningstar® Document Research℠