Oracle 2009 Annual Report Download - page 63
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Table of Contents
Hardware Systems Support: Our hardware systems support offerings provide customers with software updates for the software components that are essential
to the functionality of our hardware systems and storage products and can include product repairs, maintenance services, and technical support services.
Expenses associated with our hardware systems support operating segment include the cost of materials used to repair customer products, the cost of providing
support services, largely personnel related expenses, and the amortization of our intangible assets associated with hardware systems support contracts and
customer relationships obtained from the Sun acquisition.
Year Ended May 31,
Percent Change
(Dollars in millions) 2010 Actual Constant 2009
Hardware Systems Support Revenues:
Americas $ 301 * * $ —
EMEA 340 * * —
Asia Pacific 143 * * —
Total revenues 784 * * —
Expenses:
Hardware systems support(1) 421 * * —
Stock-based compensation 2 * * —
Amortization of intangible assets(2) 98 * * —
Total expenses 521 * * —
Total Margin $ 263 * * $ —
Total Margin % 34% *
% Revenues by Geography:
Americas 38% *
EMEA 43% *
Asia Pacific 19% *
(1) Excluding stock-based compensation
(2) Included as a component of ‘Amortization of Intangible Assets’ in our consolidated statements of operations
* Not meaningful
Hardware systems support revenues and expenses for fiscal 2010 resulted from our acquisition of Sun.
Our hardware systems support revenues were attributable to hardware systems support contracts that we assumed through our acquisition of Sun and, to a lesser
extent, support contracts that were purchased or renewed by customers in the post-combination period. As a result of our acquisition of Sun, we recorded
adjustments to reduce assumed hardware systems support obligations to their estimated fair values at the acquisition date. Due to our application of business
combination accounting rules, hardware systems support revenues related to support contracts in the amount of $128 million that would have been otherwise
recorded by Sun as an independent entity were not recognized in fiscal 2010. To the extent these underlying support contracts are renewed, we will recognize the
revenues for the full value of these contracts over the support periods.
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Source: ORACLE CORP, 10-K, July 01, 2010 Powered by Morningstar® Document Research℠