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Table of Contents
ORACLE CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
May 31, 2008
total restructuring costs associated with exiting activities of Siebel were $575 million, consisting of severance, excess
facilities obligations through fiscal 2022, as well as severance and other restructuring costs.
These costs were originally recognized as liabilities assumed in each of the respective business combinations and
included in the allocation of the cost to acquire these companies and, accordingly, have resulted in an increase to
goodwill. Our restructuring expenses may change as our management executes the approved plans. Future decreases
to the estimates of executing the restructuring plans will be recorded as an adjustment to goodwill indefinitely.
Increases to the estimates of the BEA Restructuring Plan will be recorded as an adjustment to goodwill during the
purchase accounting allocation period and as an adjustment to operating expenses thereafter. Increases to the
estimates of the Hyperion and Siebel Restructuring Plans will be recorded to operating expenses.
Summary of All Plans
Fiscal 2008 Activity
Total Total
Accrued Year Ended May 31, 2008 Accrued Costs Expected
May 31, Initial Adj. Cash May 31, Accrued Program
(in millions) 2007(2) Costs(3) to Cost(4) Payments Others(5) 2008(2) to Date Costs
Fiscal 2008 Oracle Restructuring
Plan
New software licenses $ — $ 17 $ — $ (7) $ — $ 10 $ 17 $ 45
Software license updates and product
support — 6 — (1) — 5 6 6
Services — 10 — (4) — 6 10 28
Other(1) — 8 — (4) (2) 2 8 32
Total Fiscal 2008 Oracle
Restructuring $ — $ 41 $ — $ (16) $ (2) $ 23 $ 41 $ 111
BEA Restructuring Plan
Severance $ — $ 153 $ — $ (41) $ — $ 112 $ 153 $ 153
Facilities — 63 — — — 63 63 63
Contracts and other — 15 — (1) — 14 15 15
Total BEA Restructuring $ — $ 231 $ — $ (42) $ — $ 189 $ 231 $ 231
Hyperion Restructuring Plan
Severance $ 45 $ — $ 2 $ (15) $ 1 $ 33 $ 47 $ 47
Facilities 46 — 3 (16) 1 34 50 50
Contracts and other 16 — 5 (7) — 14 21 21
Total Hyperion Restructuring $ 107 $ — $ 10 $ (38) $ 2 $ 81 $ 118 $ 118
Siebel Restructuring Plan
Severance $ 6 $ — $ (3) $ (3) $ 1 $ 1 $ 60 $ 60
Facilities 230 — 2 (56) 3 179 474 474
Contracts and other 10 — 2 — — 12 41 41
Total Siebel Restructuring $ 246 $ — $ 1 $ (59) $ 4 $ 192 $ 575 $ 575
Total Other Restructuring Plans $ 106 $ — $ (1) $ (29) $ 7 $ 83
Total All Restructuring
Plans $ 459 $ 272 $ 10 $ (184) $ 11 $ 568
90
Source: ORACLE CORP, 10-K, July 02, 2008 Powered by Morningstar® Document Research℠