Oracle 2008 Annual Report Download - page 120

Table of Contents
ORACLE CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
May 31, 2009
submitted to the IRS a request for renewal of this Advance Pricing Agreement for the years ending May 31,
2007 through May 31, 2011. However, these agreements do not cover all elements of our transfer pricing and
do not bind tax authorities outside the United States. We have finalized one bilateral Advance Pricing
Agreement, which was effective for the years ending May 31, 2002 through May 31, 2006 and we have
submitted a renewal for the years ending May 31, 2007 through May 31, 2011. There can be no guarantee that
such negotiations will result in an agreement. During the fiscal year ended May 31, 2009, we concluded an
additional bilateral agreement to cover the period from June 1, 2001 through January 25, 2008.
15. SEGMENT INFORMATION
FASB Statement No. 131, Disclosures about Segments of an Enterprise and Related Information, establishes
standards for reporting information about operating segments. Operating segments are defined as components
of an enterprise about which separate financial information is available that is evaluated regularly by the chief
operating decision maker, or decision making group, in deciding how to allocate resources and in assessing
performance. Our chief operating decision maker is our Chief Executive Officer. We are organized
geographically and by line of business. While our Chief Executive Officer evaluates results in a number of
different ways, the line of business management structure is the primary basis for which the allocation of
resources and financial results are assessed. We have two businesses, software and services, which are further
divided into five operating segments. Our software business is comprised of two operating segments: (1) new
software licenses and (2) software license updates and product support. Our services business is comprised of
three operating segments: (1) consulting, (2) On Demand and (3) education.
The new software license line of business is engaged in the licensing of database and middleware software as
well as applications software. Database and middleware software includes database management software,
application server software, business intelligence software, identification and access management software,
content management software, portal and user interaction software, Service-Oriented Architecture and
business process management software, data integration software and development tools. Applications
software provides enterprise information that enables companies to manage their business cycles and provide
intelligence in functional areas such as customer relationship management, financials, human resources,
maintenance management, manufacturing, marketing, order fulfillment, product lifecycle management,
enterprise project portfolio management, enterprise performance management, procurement, sales, services,
enterprise resource planning and supply chain planning. The software license updates and product support
line of business provides customers with rights to unspecified software product upgrades and maintenance
releases, internet access to technical content, as well as internet and telephone access to technical support
personnel during the support period. In addition, the software license updates and product support line of
business offers customers Oracle Unbreakable Linux Support, which provides enterprise level support for the
Linux operating system, and also offers support for Oracle VM server virtualization software.
The consulting line of business provides services to customers in business strategy and analysis, business
process simplification, solutions integration and the implementation, enhancement and upgrade of our
database, middleware and applications software. On Demand includes Oracle On Demand and Advanced
Customer Services. Oracle On Demand provides multi-featured software and hardware management and
maintenance services for customers that deploy our database, middleware and applications software at our
data center facilities, select partner data centers or customer facilities. Advanced Customer Services consists
of solution lifecycle management services, database and application management services, industry-specific
solution support centers and remote and on-site expert services. The education line of business provides
instructor-led, media-based and internet-based training in the use of our database, middleware and
applications software.
We do not track our assets by operating segments. Consequently, it is not practical to show assets by
operating segments results.
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Source: ORACLE CORP, 10-K, June 29, 2009 Powered by Morningstar® Document Research℠