Oracle 2008 Annual Report Download - page 121

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Table of Contents
ORACLE CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
May 31, 2009
The following table presents a summary of our businesses’ and operating segments’ results:
Year Ended May 31,
(in millions) 2009 2008 2007
New software licenses:
Revenues(1) $ 7,112 $ 7,501 $ 5,874
Sales and distribution expenses 4,006 4,040 3,326
Margin(2) $ 3,106 $ 3,461 $ 2,548
Software license updates and product support:
Revenues(1) $ 11,997 $ 10,507 $ 8,541
Cost of services 1,012 933 788
Margin(2) $ 10,985 $ 9,574 $ 7,753
Total software business:
Revenues(1) $ 19,109 $ 18,008 $ 14,415
Expenses 5,018 4,973 4,114
Margin(2) $ 14,091 $ 13,035 $ 10,301
Consulting:
Revenues(1) $ 3,221 $ 3,454 $ 2,851
Cost of services 2,686 2,914 2,384
Margin(2) $ 535 $ 540 $ 467
On Demand:
Revenues(1) $ 780 $ 695 $ 555
Cost of services 566 569 529
Margin(2) $ 214 $ 126 $ 26
Education:
Revenues(1) $ 385 $ 452 $ 387
Cost of services 282 314 272
Margin(2) $ 103 $ 138 $ 115
Total services business:
Revenues(1) $ 4,386 $ 4,601 $ 3,793
Cost of services 3,534 3,797 3,185
Margin(2) $ 852 $ 804 $ 608
Totals:
Revenues(1) $ 23,495 $ 22,609 $ 18,208
Expenses 8,552 8,770 7,299
Margin(2) $ 14,943 $ 13,839 $ 10,909
(1) Operating segment revenues differ from the external reporting classifications due to certain software license products
that are classified as service revenues for management reporting purposes. Additionally, software license updates and
product support revenues for management reporting included $243 million, $179 million and $212 million of revenues
that we did not recognize in the accompanying consolidated statements of operations for fiscal 2009, 2008 and 2007,
respectively. See Note 9 for an explanation of these adjustments and the following table for a reconciliation of
operating segment revenues to total revenues.
(2) The margins reported reflect only the direct controllable costs of each line of business and do not include allocations
of product development, information technology, marketing and partner programs, and corporate and general and
administrative expenses incurred in support of the lines of business. Additionally, the margins do not reflect the
amortization of intangible assets, restructuring costs, acquisition related and other expenses or stock-based
compensation.
113
Source: ORACLE CORP, 10-K, June 29, 2009 Powered by Morningstar® Document Research℠