Oracle 2010 Annual Report Download - page 109

Table of Contents
ORACLE CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
May 31, 2011
approximately $1.2 billion in cash, $1 million for the fair value of stock options and restricted stock-based awards assumed and $13 million for transaction costs.
In allocating the total purchase price for these acquisitions based on estimated fair values, we recorded $708 million of goodwill, $587 million of identifiable
intangible assets, $96 million of net tangible liabilities (resulting primarily from deferred tax and restructuring liabilities assumed as a part of these transactions)
and $10 million of in-process research and development.
Unaudited Pro Forma Financial Information
The unaudited pro forma financial information in the table below summarizes the combined results of operations for Oracle, Sun, Phase Forward, ATG and
certain other companies that we acquired since the beginning of fiscal 2010 (which were collectively significant for the purposes of unaudited pro forma financial
information disclosure) as though the companies were combined as of the beginning of fiscal 2010. The pro forma financial information for all periods presented
also includes the business combination accounting effects resulting from these acquisitions including our amortization charges from acquired intangible assets
(certain of which are preliminary), the elimination of certain goodwill and intangible asset impairment charges incurred by Sun, stock-based compensation
charges for unvested stock options and restricted stock-based awards assumed, adjustments to interest expense for certain borrowings and the related tax effects
as though the aforementioned companies were combined as of the beginning of fiscal 2010. The pro forma financial information as presented below is for
informational purposes only and is not indicative of the results of operations that would have been achieved if the acquisitions and any borrowings undertaken to
finance these acquisitions had taken place at the beginning of fiscal 2010.
The unaudited pro forma financial information for fiscal 2011 combined the historical results of Oracle for fiscal 2011, the historical results of ATG for the seven
months ended September 30, 2010 (adjusted due to differences in reporting periods and considering the date we acquired ATG), the historical results of Phase
Forward for the two months ended June 30, 2010 (adjusted due to differences in reporting periods and considering the date we acquired Phase Forward), and the
effects of the pro forma adjustments described above.
The unaudited pro forma financial information for fiscal 2010 combined the historical results of Oracle for fiscal 2010, the historical results of ATG for the
twelve months ended June 30, 2010 (due to differences in reporting periods), the historical results of Phase Forward for the twelve months ended June 30, 2010
(due to differences in reporting periods), the historical results of Sun for the eight months ended September 27, 2009 (adjusted due to differences in reporting
periods and considering the date we acquired Sun) and the historical results of certain other companies that we acquired since the beginning of fiscal 2010 based
upon their respective previous reporting periods and the dates these companies were acquired by us, and the effects of the pro forma adjustments listed above.
The unaudited pro forma financial information was as follows for fiscal 2011 and 2010:
Year Ended May 31,
(in millions, except per share data) 2011 2010
Total revenues $ 35,783 $ 33,965
Net income $ 8,525 $ 5,591
Basic earnings per share $ 1.69 $ 1.12
Diluted earnings per share $ 1.66 $ 1.10
3. CASH, CASH EQUIVALENTS AND MARKETABLE SECURITIES
Cash and cash equivalents primarily consist of deposits held at major banks, money market funds, Tier-1 commercial paper, U.S. Treasury obligations, U.S.
government agency and government sponsored enterprise obligations, and other securities with original maturities of 90 days or less. Marketable securities
primarily consist of time deposits held at major banks, Tier-1 commercial paper, corporate notes, U.S. Treasury obligations and U.S. government agency and
government sponsored enterprise debt obligations and certain other securities.
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Source: ORACLE CORP, 10-K, June 28, 2011 Powered by Morningstar® Document Research℠