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Table of Contents
ORACLE CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
May 31, 2009
8. RESTRUCTURING ACTIVITIES
Fiscal 2009 Oracle Restructuring Plan
During the third quarter of fiscal 2009, our management approved, committed to and initiated plans to
restructure and further improve efficiencies in our Oracle-based operations (the 2009 Plan). The total
estimated restructuring costs associated with the 2009 Plan are $241 million and will be recorded to the
restructuring expense line item within our consolidated statements of operations as they are recognized. In
fiscal 2009, we recorded $85 million of restructuring expenses in connection with the 2009 Plan. We expect
to incur the majority of the remaining $156 million during fiscal 2010. Any changes to the estimates of
executing the 2009 Plan will be reflected in our future results of operations.
Fiscal 2008 Oracle Restructuring Plan and Other
During the second quarter of fiscal 2008, our management approved, committed to and initiated plans to
restructure and improve efficiencies in our Oracle-based operations as a result of certain management and
organizational changes and our recent acquisitions (the 2008 Plan). During the fourth quarter of fiscal 2008,
the 2008 Plan was amended to include the Oracle-based effects resulting from our acquisition of BEA.
Estimated restructuring costs relating to employees included in the 2008 plan that had not yet been notified as
of the third quarter of fiscal 2009 were transferred to the 2009 Plan. The total restructuring costs (primarily
related to employee severance) associated with the 2008 Plan were $80 million; these costs were recorded to
the restructuring expense line item within our consolidated statements of operations. In fiscal 2009, we
recorded $39 million of restructuring expenses and in fiscal 2008 we recorded $41 million of restructuring
expenses in connection with the 2008 Plan. Any changes to the estimates of executing the 2008 Plan will be
reflected in our future results of operations.
Acquisition Related Restructuring Plans
During the fourth quarter of fiscal 2008, fourth quarter of fiscal 2007 and third quarter of fiscal 2006, our
management approved, committed to and initiated plans to restructure certain pre-acquisition operations of
BEA (BEA Restructuring Plan), Hyperion (Hyperion Restructuring Plan) and Siebel Systems, Inc. (Siebel
Restructuring Plan), respectively. Our management initiated these plans in connection with our acquisitions of
these companies in order to improve the cost efficiencies in our operations. The total restructuring costs
associated with exiting activities of BEA were $218 million, consisting of severance, excess facilities
obligations through fiscal 2017 as well as other restructuring costs. The total restructuring costs associated
with exiting activities of Hyperion were $98 million, consisting of severance, excess facilities obligations
through fiscal 2016, as well as other restructuring costs. The total restructuring costs associated with exiting
activities of Siebel were $590 million, consisting of severance, excess facilities obligations through fiscal
2022, 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 acquisition related restructuring plans will be
recorded as an adjustment to goodwill indefinitely. Increases to the estimates of the acquisition related
restructuring plans will be recorded to operating expenses.
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Source: ORACLE CORP, 10-K, June 29, 2009 Powered by Morningstar® Document Research℠