Oracle 2009 Annual Report Download - page 117

Table of Contents
ORACLE CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
May 31, 2010
restructuring costs associated with the 2009 Plan are $453 million and will be recorded to the restructuring expense line item within our consolidated statements
of operations as they are recognized. In fiscal 2010, we recorded $286 million of restructuring expenses and in fiscal 2009 we recorded $85 million of
restructuring expenses in connection with the 2009 Plan. We expect to incur the remaining $82 million during our fiscal 2011. Any changes to the estimates of
executing the 2009 Plan will be reflected in our future results of operations.
Acquisition Related Restructuring Plans Adopted Prior to Fiscal 2010
Included in the other restructuring plans line in the fiscal 2010 and 2009 activity tables below and in the total restructuring plans line for the fiscal 2008 activity
table below are certain restructuring plans that relate to companies that we acquired prior to our adoption of the revised business combinations accounting
guidance contained in ASC 805 as of the beginning of fiscal 2010. Costs related to these restructuring plans were originally recognized as liabilities assumed in
each of the respective business combinations and included in the allocation of the cost to acquire these companies and, accordingly, have resulted in an increase
to goodwill. Our restructuring expenses may change as our management executes the approved plans. Future decreases to the estimates of executing these
acquisitions related restructuring plans will be recorded as an adjustment to goodwill indefinitely. Increases to the estimates of the acquisition related
restructuring plans will be recorded to operating expenses.
Summary of All Plans
Fiscal 2010 Activity
(in millions)
Accrued
May 31,
2009(2)
Year Ended May 31, 2010
Accrued
May 31,
2010(2)
Total
Costs
Accrued
to Date
Total
Expected
Program
Costs
Initial
Costs(3)
Adj.
to Cost(4)
Cash
Payments Others(5)
Sun Restructuring Plan
New software licenses $ — $ 6 $ — $ (1) $ — $ 5 $ 6 $ 88
Software license updates and product support — 6 — (3) — 3 6 89
Hardware systems business — 61 — (19) — 42 61 98
Services — 11 — (3) — 8 11 152
General and administrative and other(1) — 258 — (222) (7) 29 258 670
Total Sun Restructuring $ — $ 342 $ — $ (248) $ (7) $ 87 $ 342 $ 1,097
Fiscal 2009 Oracle Restructuring Plan
New software licenses $ 12 $ 106 $ 4 $ (98) $ (4) $ 20 $ 140 $ 162
Software license updates and product support — 3 (2) (4) 3 — 2 21
Services 22 128 2 (104) (15) 33 165 206
Other(1)
13 49 (4) (34) — 24 64 64
Total Fiscal 2009 Oracle Restructuring $ 47 $ 286 $ — $ (240) $ (16) $ 77 $ 371 $ 453
Total other restructuring plans $ 342 $ 6 $ (84) $ (157) $ 275 $ 382
Total restructuring plans(6) $ 389 $ 634 $ (84) $ (645) $ 252 $ 546
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Source: ORACLE CORP, 10-K, July 01, 2010 Powered by Morningstar® Document Research℠