Oracle 2009 Annual Report Download - page 74

Table of Contents
Commercial Paper
Commercial Paper Program: On May 11, 2010, we reduced the overall capacity of our commercial paper program from $5.0 billion to $3.0 billion after our
2009 Credit Agreement (as defined below) terminated pursuant to its terms.
Commercial Paper Notes: During fiscal 2010, we issued $2.8 billion of unsecured short-term commercial paper notes (Commercial Paper Notes) pursuant to
our commercial paper program, which allows us to issue and sell unsecured short-term promissory notes pursuant to a private placement exemption from the
registration requirements under federal and state securities laws. We issued these Commercial Paper Notes to finance a portion of the purchase price for the Sun
acquisition, to assist with the repayment of our $1.0 billion of senior notes that matured in May 2010 and for general corporate purposes. As of May 31, 2010, we
had $881 million of Commercial Paper Notes outstanding at a weighted average yield, including issuance costs, of 0.28% (none outstanding as of May 31, 2009).
We back-stop these notes with our revolving credit agreement and therefore, as of May 31, 2010, we consider that we have $2.1 billion of capacity remaining
under our 2006 commercial paper program. Additional details of our various debt facilities and obligations are included in the “Contractual Obligations” section
below and in Note 8 of Notes to Consolidated Financial Statements included elsewhere in this Annual Report.
Revolving Credit Agreements: On March 16, 2010, our $2.0 billion 364-Day Revolving Credit Agreement dated March 17, 2009, among Oracle; the lenders
named therein; Wachovia Bank, National Association, as administrative agent; BNP Paribas as syndication agent; the documentation agents named therein; and
Wachovia Capital Markets, LLC, and BNP Paribas Securities Corp., as joint lead arrangers and joint bookrunners (the 2009 Credit Agreement), terminated
pursuant to its terms. No debt was outstanding pursuant to the 2009 Credit Agreement as of its date of termination.
As of May 31, 2010, we had a $3.0 billion, five-year Revolving Credit Agreement with certain lenders that we entered into in March 2006 (the 2006 Credit
Agreement). Additional details regarding the 2006 Credit Agreement are included under the heading “Revolving Credit Agreements” in Note 8 of Notes to
Consolidated Financial Statements included elsewhere in this Annual Report.
Common 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 expanded our repurchase program by $8.0 billion and as of May 31, 2010, $5.3 billion was available for share repurchases
pursuant to our stock repurchase program. We repurchased 43.3 million shares for $1.0 billion, 225.6 million shares for $4.0 billion, and 97.3 million shares for
$2.0 billion in fiscal 2010, 2009 and 2008, respectively. 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 repayments, our debt repayment
obligations (described further below), 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.
Cash Dividends: In fiscal 2010, we declared and paid cash dividends of $0.20 per share that totaled $1.0 billion, which is an increase in comparison to fiscal
2009 in which we declared and paid the first dividend in our history to our common stockholders of $0.05 per share, which totaled $250 million. 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.
Contractual Obligations: The contractual obligations presented in the table below represent our estimates of future payments under fixed contractual
obligations and commitments. Changes in our business needs, cancellation provisions, changing interest rates and other factors may result in actual payments
differing from these estimates. We cannot provide certainty regarding the timing and amounts of payments. We have presented below a summary of the most
significant assumptions used in preparing this information within the context of
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Source: ORACLE CORP, 10-K, July 01, 2010 Powered by Morningstar® Document Research℠