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Table of Contents
ORACLE CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
May 31, 2009
6. INTANGIBLE ASSETS AND GOODWILL
The changes in intangible assets for fiscal 2009 and the net book value of intangible assets at May 31, 2009
and 2008 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) 2008 Additions 2009 2008 Expense 2009 2008 2009 Useful Life
Software support
agreements and related
relationships $ 4,849 $ 163 $ 5,012 $ (1,052) $ (549) $ (1,601) $ 3,797 $ 3,411 9 years
Developed technology 3,607 237 3,844 (1,203) (722) (1,925) 2,404 1,919 5 years
Core technology 1,427 75 1,502 (432) (255) (687) 995 815 6 years
Customer relationships 1,183 101 1,284 (170) (150) (320) 1,013 964 8 years
Trademarks 262 11 273 (76) (37) (113) 186 160 7 years
Total $ 11,328 $ 587 $ 11,915 $ (2,933) $ (1,713) $ (4,646) $ 8,395 $ 7,269
Total amortization expense related to our intangible assets was $1.7 billion, $1.2 billion and $878 million in
fiscal 2009, 2008 and 2007, respectively. As of May 31, 2009, estimated future amortization expense related
to our intangible assets, excluding the impact of additional intangible assets arising from any subsequent
acquisitions such as Sun, was $1.7 billion in fiscal 2010, $1.4 billion in fiscal 2011, $1.2 billion in fiscal
2012, $1.1 billion in fiscal 2013, $881 million in fiscal 2014 and $1.1 billion thereafter.
The changes in the carrying amount of goodwill, which is generally not deductible for tax purposes, by
operating segment for fiscal 2009 and 2008, were as follows:
Software
License
New Updates and
Software Product
(in millions) Licenses Support Services Other(1) Total
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
Other acquisition goodwill 164 114 24 — 302
Goodwill adjustments(2) (16) (120) (9) — (145)
Balances as of May 31, 2008 4,058 8,028 1,550 4,355 17,991
Allocation of goodwill(1) 1,258 2,907 190 (4,355) —
Other acquisition goodwill 373 283 56 — 712
Goodwill adjustments(2) 27 116 (4) — 139
Balances as of May 31, 2009 $ 5,716 $ 11,334 $ 1,792 $ — $ 18,842
(1) Represents the goodwill allocation associated with certain acquisitions that was allocated to our operating segments
upon the completion of certain 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, up to one year from date of
acquisition). Goodwill adjustments also include the effects on goodwill resulting from our adoption of FIN 48 in fiscal
2008.
93
Source: ORACLE CORP, 10-K, June 29, 2009 Powered by Morningstar® Document Research℠