Oracle 2009 Annual Report Download - page 114

Table of Contents
ORACLE CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
May 31, 2010
The changes in the carrying amounts of goodwill, which is generally not deductible for tax purposes, by operating segment for fiscal 2010 and 2009 were as
follows:
(in millions)
New
Software
Licenses
Software
License
Updates and
Product
Support
Hardware
Systems
Support Services Other(1) Total
Balances as of May 31, 2008 $ 4,058 $ 8,028 $ — $ 1,550 $ 4,355 $ 17,991
Allocation of goodwill(1) 1,258 2,907 — 190 (4,355) —
Goodwill from acquisitions 373 283 — 56 — 712
Goodwill adjustments(2) 27 116 — (4) — 139
Balances as of May 31, 2009 5,716 11,334 — 1,792 — 18,842
Goodwill from acquisitions 217 490 891 2 — 1,600
Goodwill adjustments for acquisitions consummated since
the beginning of fiscal 2010(2) 7 17 32 — — 56
Goodwill adjustments for acquisitions consummated prior
to fiscal 2010(2) 55 (39) — (89) — (73)
Balances as of May 31, 2010 $ 5,995 $ 11,802 $ 923 $ 1,705 $ — $ 20,425
(1) Represents the goodwill allocation associated with certain acquisitions that was allocated to our software business operating segments and services business upon the completion of certain
valuations.
(2) Pursuant to our business combinations accounting policy, we record goodwill adjustments for the effect on goodwill of changes to net assets acquired during the measurement or purchase
price allocation period (either of which can be up to one year from the date of an acquisition). Goodwill adjustments for our services business includes $82 million that primarily relates to
the reclassification of goodwill associated with certain acquired product offerings to our new software licenses operating segment. Goodwill adjustments for acquisitions consummated
since the beginning of fiscal 2010 were generally balance sheet related with insignificant effects to our previously reported operating results.
8. NOTES PAYABLE AND OTHER BORROWINGS
Notes payable and other borrowings consisted of the following:
(Dollars in millions)
May 31,
2010
May 31,
2009
Floating rate senior notes due May 2010 $ — $ 1,000
Commercial paper notes (effective interest rate of 0.28%) 881 —
5.00% senior notes due January 2011, net of discount of $1 and $3 as of May 31, 2010 and 2009, respectively 2,249 2,247
4.95% senior notes due April 2013 1,250 1,250
3.75% senior notes due July 2014, net of fair value adjustment of $33(1) 1,533 —
5.25% senior notes due January 2016, net of discount of $6 and $7 as of May 31, 2010 and 2009, respectively 1,994 1,993
5.75% senior notes due April 2018, net of discount of $1 as of May 31, 2010 and 2009 2,499 2,499
5.00% senior notes due July 2019, net of discount of $6 as of May 31, 2010 1,744 —
6.50% senior notes due April 2038, net of discount of $2 as of May 31, 2010 and 2009 1,248 1,248
6.125% senior notes due July 2039, net of discount of $8 as of May 31, 2010 1,242 —
Capital leases 15 1
Total borrowings $ 14,655 $ 10,238
Notes payable, current and other current borrowings $ 3,145 $ 1,001
Notes payable, non-current and other non-current borrowings $ 11,510 $ 9,237
(1) Refer to Note 11 for a description of our accounting for fair value hedges
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Source: ORACLE CORP, 10-K, July 01, 2010 Powered by Morningstar® Document Research℠