Oracle 2009 Annual Report Download - page 112

Table of Contents
ORACLE CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
May 31, 2010
Assets and Liabilities Measured at Fair Value on a Recurring Basis
Our assets and liabilities measured at fair value on a recurring basis, excluding accrued interest components, consisted of the following types of instruments
(Level 1 and 2 inputs are defined above):
May 31, 2010 May 31, 2009
Fair Value
Measurements
Using Input Types
Fair Value
Measurements
Using Input Types
(in millions) Level 1 Level 2 Total Level 1 Level 2 Total
Assets:
Money market funds $ 2,423 $ — $ 2,423 $ 467 $ — $ 467
U.S. Treasury, U.S. government and U.S. government
agency debt securities 3,010 — 3,010 4,078 — 4,078
Commercial paper debt securities — 3,378 3,378 — 1,365 1,365
Corporate debt securities and other — 2,256 2,256 — 1,335 1,335
Derivative financial instruments — 33 33 — — —
Total assets $ 5,433 $ 5,667 $ 11,100 $ 4,545 $ 2,700 $ 7,245
Liabilities:
Derivative financial instruments $ — $ — $ — $ — $ 35 $ 35
Total liabilities $ — $ — $ — $ — $ 35 $ 35
Our valuation techniques used to measure the fair values of our money market funds and U.S. Treasury, U.S. government and U.S. government agency debt
securities, that were classified as Level 1 in the table above, were derived from quoted market prices as substantially all of these instruments have maturity dates
(if any) within one year from our date of purchase and active markets for these instruments exist. Our valuation techniques used to measure the fair values of all
other instruments listed in the table above, generally all of which mature within one year and the counterparties to which have high credit ratings, were derived
from the following: non-binding market consensus prices that are corroborated by observable market data, quoted market prices for similar instruments, or
pricing models, such as discounted cash flow techniques, with all significant inputs derived from or corroborated by observable market data. Our discounted cash
flow techniques used observable market inputs, such as LIBOR-based yield curves, and currency spot and forward rates.
Our cash and cash equivalents, marketable securities and derivative financial instruments are recognized and measured at fair value in our consolidated financial
statements. Based on the trading prices of our $14.62 billion and $10.25 billion borrowings, which included senior notes and commercial paper notes, that were
outstanding as of May 31, 2010 and May 31, 2009, respectively, and the interest rates we could obtain for other borrowings with similar terms at those dates, the
estimated fair values of our borrowings at May 31, 2010 and May 31, 2009 were $15.90 billion and $10.79 billion, respectively.
5. INVENTORIES
Inventories consisted of the following as of May 31, 2010 (insignificant as of May 31, 2009):
(in millions) May 31, 2010
Raw materials $ 95
Work-in-process 43
Finished goods 121
Total $ 259
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Source: ORACLE CORP, 10-K, July 01, 2010 Powered by Morningstar® Document Research℠