Oracle 2009 Annual Report Download - page 78

Table of Contents
The Compensation Committee of the Board of Directors reviews and approves the organization-wide stock option grants to selected employees, all stock option
grants to executive officers and any individual stock option grants in excess of 100,000 shares. A separate Plan Committee, which is an executive officer
committee, approves individual stock option grants of up to 100,000 shares to non-executive officers and employees. Stock option and restricted stock-based
award activity from June 1, 2007 through May 31, 2010 is summarized as follows (shares in millions):
Options and restricted stock-based awards outstanding at May 31, 2007 434
Options granted 202
Options and restricted stock-based awards assumed 66
Options exercised and restricted stock-based awards vested (274)
Forfeitures, cancellations and other, net (72)
Options and restricted stock-based awards outstanding at May 31, 2010 356
Average annualized options and restricted stock-based awards granted and assumed, net of forfeitures 65
Average annualized stock repurchases (122)
Shares outstanding at May 31, 2010 5,026
Basic weighted average shares outstanding from June 1, 2007 through May 31, 2010 5,072
Options and restricted stock-based awards outstanding as a percent of shares outstanding at May 31, 2010 7.1%
In the money options and total restricted stock-based awards outstanding (based on the closing price of our common stock on the last trading day
of our fiscal period presented) as a percent of shares outstanding at May 31, 2010 6.6%
Weighted average annualized options and restricted stock-based awards granted and assumed, net of forfeitures and before stock repurchases, as a
percent of weighted average shares outstanding from June 1, 2007 through May 31, 2010 1.3%
Weighted average annualized options and restricted stock-based awards granted and assumed, net of forfeitures and after stock repurchases, as a
percent of weighted average shares outstanding from June 1, 2007 through May 31, 2010 -1.1%
Our Compensation Committee approves the annual organization-wide option grants to certain employees. These annual option grants are made during the ten
business day period following the second trading day after the announcement of our fiscal fourth quarter earnings report.
Recent Accounting Pronouncements
For information with respect to recent accounting pronouncements and the impact of these pronouncements on our consolidated financial statements, see Note 1
of Notes to Consolidated Financial Statements.
Item 7A. Quantitative and Qualitative Disclosures About Market Risk
Cash, Cash Equivalents, Marketable Securities and Interest Income Risk
Our bank deposits and money market investments are generally held with a number of large, diverse financial institutions worldwide which we believe mitigates
certain risks. In addition, we purchase high quality debt security investments, substantially all with relatively short maturities (see a description of our debt
securities held in Notes 3 and 4 of Notes to Consolidated Financial Statements and “Liquidity and Capital Resources” above). Therefore, interest rate movements
generally do not materially affect the valuation of our debt security investments. Substantially all of our marketable securities are designated as available-for-sale.
Changes in the overall level of interest rates affect the interest income that is generated from our cash, cash equivalents and marketable securities. For fiscal
2010, total interest income was $122 million with our investments yielding an average 0.59% on a worldwide basis. This interest rate level was down by 164
basis points from 2.23% for fiscal 2009. If overall interest rates fell by 50 basis points from our average of 0.59%
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Source: ORACLE CORP, 10-K, July 01, 2010 Powered by Morningstar® Document Research℠