Oracle 2010 Annual Report Download - page 105

Table of Contents
ORACLE CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
May 31, 2011
Advertising
All advertising costs are expensed as incurred. Advertising expenses, which are included within sales and marketing expenses, were $88 million, $75 million and
$71 million in fiscal 2011, 2010 and 2009, respectively.
Research and Development
All research and development costs are expensed as incurred. Costs eligible for capitalization under ASC 985-20, Software-Costs of Software to be Sold, Leased
or Marketed, were not material to our consolidated financial statements in fiscal 2011, 2010 or 2009.
Acquisition Related and Other Expenses
Acquisition related and other expenses consist of personnel related costs for transitional and certain other employees, stock-based compensation expenses,
integration related professional services, certain business combination adjustments after the measurement period or purchase price allocation period has ended,
and certain other operating expenses, net. Stock-based compensation included in acquisition related and other expenses resulted from unvested options and
restricted stock-based awards assumed from acquisitions whereby vesting was accelerated upon termination of the employees pursuant to the original terms of
those options and restricted stock-based awards. As a result of our adoption of the FASB’s revised accounting guidance for business combinations as of the
beginning of fiscal 2010, certain acquisition related and other expenses are now recorded as expenses in our statements of operations that would previously have
been included as a part of the consideration transferred and capitalized as a part of the accounting for our acquisitions pursuant to previous accounting rules,
primarily direct transaction costs such as professional services fees.
Year Ended May 31,
(in millions) 2011 2010 2009
Transitional and other employee related costs $ 129 $ 66 $ 45
Stock-based compensation 10 15 15
Professional fees and other, net 66 68 35
Business combination adjustments, net 3 5 22
Total acquisition related and other expenses $ 208 $ 154 $ 117
Non-Operating Income (Expense), net
Non-operating income (expense), net consists primarily of interest income, net foreign currency exchange gains (losses), the noncontrolling interests in the net
profits of our majority-owned subsidiaries (Oracle Financial Services Software Limited and Oracle Japan), and net other income (losses), including net realized
gains and losses related to all of our investments and net unrealized gains and losses related to the small portion of our investment portfolio that we classify as
trading.
Year Ended May 31,
(in millions) 2011 2010 2009
Interest income $ 163 $ 122 $ 279
Foreign currency gains (losses), net 11 (148) (55)
Noncontrolling interests in income (97) (95) (84)
Other income, net 109 56 3
Total non-operating income (expense), net $ 186 $ (65) $ 143
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Source: ORACLE CORP, 10-K, June 28, 2011 Powered by Morningstar® Document Research℠