Oracle 2008 Annual Report Download - page 112

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Table of Contents
ORACLE CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
May 31, 2009
particular agreement. Historically, payments made by us under these agreements have not had a material
effect on our results of operations, financial position, or cash flows.
Our software license agreements also generally include a warranty that our software products will
substantially operate as described in the applicable program documentation for a period of one year after
delivery. We also warrant that services we perform will be provided in a manner consistent with industry
standards for a period of 90 days from performance of the service. Warranty expense was not significant in
fiscal 2009, fiscal 2008 or fiscal 2007.
We occasionally are required, for various reasons, to enter into agreements with financial institutions that
provide letters of credit on our behalf to parties we conduct business with in ordinary course. Such
agreements have not had a material effect on our results of operations, financial position or cash flows.
12. STOCKHOLDERS’ EQUITY
Stock Repurchases
Our Board of Directors has approved a program for us to repurchase shares of our common stock. On
October 20, 2008, we announced that our Board of Directors approved the expansion of our repurchase
program by $8.0 billion and as of May 31, 2009, approximately $6.3 billion was available for share
repurchases pursuant to our stock repurchase program. We repurchased 225.6 million shares for $4.0 billion
(including 0.6 million shares for $12 million that were repurchased but not settled), 97.3 million shares for
$2.0 billion and 233.5 million shares for $4.0 billion in fiscal 2009, 2008 and 2007, respectively.
Our stock repurchase authorization does not have an expiration date and the pace of our repurchase activity
will depend on factors such as our working capital needs, our cash requirements for acquisitions and dividend
payments, our debt repayment obligations (as described above) or repurchases of our debt, our stock price,
and economic and market conditions. Our stock repurchases may be effected from time to time through open
market purchases or pursuant to a Rule 10b5-1 plan. Our stock repurchase program may be accelerated,
suspended, delayed or discontinued at any time.
Dividends on Common Stock
In June 2009, our Board of Directors declared a quarterly cash dividend of $0.05 per share of outstanding
common stock payable on August 13, 2009 to stockholders of record as of the close of business on July 15,
2009. Future declarations of dividends and the establishment of future record and payment dates are subject to
the final determination of our Board of Directors.
Accumulated Other Comprehensive Income
The following table summarizes, as of each balance sheet date, the components of our accumulated other
comprehensive income, net of income taxes (income tax effects were insignificant for all periods presented):
May 31,
(in millions) 2009 2008
Foreign currency translation gains, net $ 340 $ 690
Unrealized losses on derivative financial instruments, net (125) (86)
Unrealized gains on marketable securities, net 4 3
Unrealized (losses) gains on defined benefit plan, net (3) 11
Total accumulated other comprehensive income $ 216 $ 618
104
Source: ORACLE CORP, 10-K, June 29, 2009 Powered by Morningstar® Document Research℠