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Table of Contents
ORACLE CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
May 31, 2008
The changes in the carrying amount of goodwill, which is generally not deductible for tax purposes, by operating
segment for fiscal 2008 and 2007, were as follows:
Software
License
New Updates and
Software Product
(in millions) Licenses Support Services Other(1) Total
Balances as of May 31, 2006 $ 2,214 $ 6,741 $ 854 $ — $ 9,809
Hyperion acquisition goodwill(1) — — — 1,673 1,673
i-flex acquisition goodwill 687 276 609 — 1,572
Other acquisition goodwill 295 195 49 10 549
Goodwill adjustments(2) (27) (90) (7) — (124)
Balances as of May 31, 2007 3,169 7,122 1,505 1,683 13,479
Allocation of goodwill(1) 741 912 30 (1,683) —
BEA acquisition goodwill(1) — — — 4,355 4,355
Agile acquisition goodwill 48 48 9 — 105
Other acquisition goodwill 116 66 15 — 197
Goodwill adjustments(2) (16) (120) (9) — (145)
Balances as of May 31, 2008 $ 4,058 $ 8,028 $ 1,550 $ 4,355 $ 17,991
(1) Represents goodwill associated with certain acquisitions that was or will be allocated to our operating segments upon the
finalization of our intangible asset valuations.
(2) Pursuant to our business combinations accounting policy, we record goodwill adjustments for the effect on goodwill of
changes to net assets acquired during the purchase price allocation period (generally, one year from date of acquisition).
Goodwill adjustments also include the effects on goodwill resulting from our adoption of FASB Interpretation No. 48 as of
June 1, 2007 (see Note 12).
6. NOTES PAYABLE AND OTHER BORROWINGS
Notes payable and other borrowings consisted of the following:
May 31, May 31,
(Dollars in millions) 2008 2007
Commercial paper notes, net of discount of $6 as of May 31, 2007 $ — $ 1,355
Floating rate senior notes due May 2009 1,000 1,000
Floating rate senior notes due May 2010 1,000 1,000
5.00% senior notes due January 2011, net of discount of $4 and $6 as of May 31, 2008 and 2007,
respectively 2,246 2,244
4.95% senior notes due April 2013 1,250 —
5.25% senior notes due January 2016, net of discount of $9 as of May 31, 2008 and 2007 1,991 1,991
5.75% senior notes due April 2018, net of discount of $1 2,499 —
6.50% senior notes due April 2038, net of discount of $2 1,248 —
Capital leases 2 3
Total borrowings $ 11,236 $ 7,593
Notes payable, current and other current borrowings $ 1,001 $ 1,358
Notes payable, non-current and other non-current borrowings $ 10,235 $ 6,235
87
Source: ORACLE CORP, 10-K, July 02, 2008 Powered by Morningstar® Document Research℠