Oracle 2010 Annual Report Download - page 108

Table of Contents
ORACLE CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
May 31, 2011
During fiscal 2011, we acquired certain other companies and purchased certain technology and development assets to expand our products and services offerings.
These acquisitions were not significant individually or in the aggregate. We have included the financial results of these companies in our consolidated results
from their respective acquisition dates.
In aggregate, companies acquired during fiscal 2011 contributed $231 million to our total software revenues. Other revenue and earnings contributions were not
separately identifiable due to the integration of these acquired entities into our existing operations.
The preliminary purchase price allocations for acquisitions completed during fiscal 2011 were based upon preliminary calculations and valuations and our
estimates and assumptions for each of these acquisitions are subject to change as we obtain additional information for our estimates during the respective
measurement periods (up to one year from the acquisition date). The primary areas of those preliminary purchase price allocations that are not yet finalized
related to certain tangible assets and liabilities acquired, identifiable intangible assets, certain legal matters, income and non-income based taxes and residual
goodwill.
Subsequent to fiscal 2011, we agreed to acquire certain other companies for amounts that are not material to our business. We expect to close such acquisitions
within the next twelve months.
Fiscal 2010 Acquisitions
Acquisition of Sun Microsystems, Inc.
On January 26, 2010 we completed our acquisition of Sun, a provider of hardware systems, software and services, by means of a merger of one of our wholly
owned subsidiaries with and into Sun such that Sun became a wholly owned subsidiary of Oracle. We acquired Sun to, among other things, expand our product
offerings by adding Sun’s existing hardware systems business and broadening our software and services offerings. We have included the financial results of Sun
in our consolidated financial statements from the date of acquisition. For fiscal 2010, we estimate that Sun’s contribution to our total revenues was $2.8 billion,
which included allocations of revenues from our software and services businesses that were not separately identifiable due to our integration activities. For fiscal
2010, Sun reduced our operating income by $620 million, which included management’s allocations and estimates of revenues and expenses that were not
separately identifiable due to our integration activities, intangible asset amortization, restructuring expenses and stock-based compensation expenses.
The total purchase price for Sun was $7.3 billion which consisted of $7.2 billion in cash paid to acquire the outstanding common stock of Sun and $99 million for
the fair value of stock options and restricted-stock based awards assumed. In allocating the purchase price based on estimated fair values, we recorded
approximately $1.4 billion of goodwill, $3.3 billion of identifiable intangible assets, $415 million of in-process research and development and $2.2 billion of net
tangible assets.
Other Fiscal 2010 Acquisitions
During fiscal 2010, we acquired certain other companies and purchased certain technology and development assets to expand our product and services offerings.
These acquisitions were not significant individually or in the aggregate. We have included the financial results of these companies in our consolidated results
from their respective acquisition dates.
Fiscal 2009 Acquisitions
During fiscal 2009, we acquired several companies and purchased certain technology and development assets to expand our product offerings. These acquisitions
were not individually significant. We have included the financial results of these companies in our consolidated results from their respective acquisition dates. In
the aggregate, the total purchase price for these acquisitions was approximately $1.2 billion, which consisted of
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Source: ORACLE CORP, 10-K, June 28, 2011 Powered by Morningstar® Document Research℠