Oracle 2009 Annual Report Download - page 123

Table of Contents
ORACLE CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
May 31, 2010
Guarantees
Our software and hardware systems product sales agreements generally include certain provisions for indemnifying customers against liabilities if our products
infringe a third party’s intellectual property rights. To date, we have not incurred any material costs as a result of such indemnifications and have not accrued any
liabilities related to such obligations in our consolidated financial statements. Certain of our product sales agreements also include provisions indemnifying
customers against liabilities in the event we breach confidentiality or service level requirements. It is not possible to determine the maximum potential amount
under these indemnification agreements due to our limited and infrequent history of prior indemnification claims and the unique facts and circumstances involved
in each particular agreement.
Our software license and hardware systems products agreements also generally include a warranty that our products will substantially operate as described in the
applicable program documentation for a period of one year after delivery. We also warrant that services we perform will be provided in a manner consistent with
industry standards for a period of 90 days from performance of the service.
We occasionally are required, for various reasons, to enter into financial guarantees with third parties in the ordinary course of our business including, among
others, guarantees related to foreign exchange trades, taxes, import licenses and letters of credit on behalf of parties we conduct business with. Such agreements
have not had a material effect on our results of operations, financial position or cash flows.
13. STOCKHOLDERS’ EQUITY
Stock Repurchases
Our Board of Directors has approved a program for us to repurchase shares of our common stock. On October 20, 2008, we announced that our Board of
Directors approved the expansion of our repurchase program by $8.0 billion and as of May 31, 2010, approximately $5.3 billion was available for share
repurchases pursuant to our stock repurchase program. We repurchased 43.3 million shares for $1.0 billion (including 0.5 million shares for $12 million that were
repurchased but not settled), 225.6 million shares for $4.0 billion and 97.3 million shares for $2.0 billion in fiscal 2010, 2009 and 2008, respectively under the
applicable repurchase programs authorized.
Our stock repurchase authorization does not have an expiration date and the pace of our repurchase activity will depend on factors such as our working capital
needs, our cash requirements for acquisitions and dividend payments, our debt repayment obligations or repurchase of our debt, our stock price, and economic
and market conditions. Our stock repurchases may be effected from time to time through open market purchases or pursuant to a Rule 10b5-1 plan. Our stock
repurchase program may be accelerated, suspended, delayed or discontinued at any time.
Dividends on Common Stock
During fiscal 2010, our Board of Directors declared cash dividends of $0.20 per share of our outstanding common stock, which we paid during the same period.
In June 2010, our Board of Directors declared a quarterly cash dividend of $0.05 per share of outstanding common stock payable on August 4, 2010 to
stockholders of record as of the close of business on July 14, 2010. Future declarations of dividends and the establishment of future record and payment dates are
subject to the final determination of our Board of Directors.
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Source: ORACLE CORP, 10-K, July 01, 2010 Powered by Morningstar® Document Research℠