Oracle 2009 Annual Report Download - page 124

Table of Contents
ORACLE CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
May 31, 2010
Accumulated Other Comprehensive Income
The following table summarizes, as of each balance sheet date, the components of our accumulated other comprehensive income, net of income taxes (income
tax effects were insignificant for all periods presented):
May 31,
(in millions) 2010 2009
Foreign currency translation gains, net $ 169 $ 340
Unrealized losses on derivative financial instruments, net (131) (125)
Unrealized gains on marketable securities, net 4 4
Unrealized losses on defined benefit plan, net (38) (3)
Total accumulated other comprehensive income $ 4 $ 216
14. EMPLOYEE BENEFIT PLANS
Stock-based Compensation Plans
Stock Option Plans
In fiscal 2001, we adopted the 2000 Long-Term Equity Incentive Plan (the 2000 Plan), which replaced the 1991 Long-Term Equity Incentive Plan (the 1991
Plan) and provides for the issuance of non-qualified stock options and incentive stock options, as well as stock purchase rights, stock appreciation rights and
long-term performance awards to our eligible employees, officers, and directors who are also employees or consultants, independent consultants and advisers.
Under the terms of the 2000 Plan, options to purchase common stock generally are granted at not less than fair market value, become exercisable as established
by the Board (generally 25% annually over four years under our current practice), and generally expire no more than ten years from the date of grant. Options
granted under the 1991 Plan were granted with similar terms. If options outstanding under the 1991 Plan are forfeited, repurchased, or otherwise terminate
without the issuance of stock, the shares underlying such options will also become available for future awards under the 2000 Plan. As of May 31, 2010, options
to purchase 301 million shares of common stock were outstanding under both plans, of which 144 million were vested. Approximately 197 million shares of
common stock were available for future awards under the 2000 Plan. To date, we have not issued any stock purchase rights, stock appreciation rights, restricted
stock-based awards or long-term performance awards under the 2000 Plan.
In fiscal 1993, the Board adopted the 1993 Directors’ Stock Option Plan (the Directors’ Plan), which provides for the issuance of non-qualified stock options to
non-employee directors. The Director’s Plan has from time to time been amended and restated. In fiscal 2010, the Director’s Plan was further amended to
increase the amounts of annual stock option grants to the Chair of the Compensation Committee of the Board. Under the terms of the Directors’ Plan, options to
purchase 8 million shares of common stock were reserved for issuance, options are granted at not less than fair market value, become exercisable over four years,
and expire no more than ten years from the date of grant. The Directors’ Plan provides for automatic grants of options to each non-employee director upon first
becoming a director and thereafter on an annual basis, as well as automatic nondiscretionary grants for chairing certain Board committees. The Board has the
discretion to replace any automatic option grant under the Directors’ Plan with awards of restricted stock, restricted stock units or other stock-based awards. The
number of shares subject to any such stock award will be no more than the equivalent value of the options, as determined on any reasonable basis by the Board,
which would otherwise have been granted under the applicable automatic option grant. The Board will determine the particular terms of any such stock awards at
the time of grant, but the terms will be consistent with those of options, as described below, granted under the Directors’ Plan with respect to vesting or forfeiture
schedules and treatment on termination of status as a director. At May 31, 2010, options to purchase approximately 3 million shares of common stock were
outstanding under the 1993 Directors’ Plan, of which approximately 2 million were vested. Approximately 2 million shares are available for future option awards
under this plan of which a lesser portion than the total may be used for grants other than options.
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Source: ORACLE CORP, 10-K, July 01, 2010 Powered by Morningstar® Document Research℠