Oracle 2010 Annual Report Download - page 113

Table of Contents
ORACLE CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
May 31, 2011
The changes in the carrying amounts of goodwill, which is generally not deductible for tax purposes, for our software business operating segments, our hardware
systems support operating segment and our services business for fiscal 2011 and 2010 were as follows:
(in millions)
New
Software
Licenses
Software
License
Updates
and
Product
Support
Hardware
Systems
Support Services Total
Balances as of May 31, 2009 $ 5,716 $ 11,334 $ — $ 1,792 $ 18,842
Goodwill from acquisitions 217 490 891 2 1,600
Goodwill adjustments(1) 62 (22) 32 (89) (17)
Balances as of May 31, 2010 5,995 11,802 923 1,705 20,425
Goodwill from acquisitions 797 240 23 2 1,062
Goodwill adjustments(1) (7) 10 63 — 66
Balances as of May 31, 2011 $ 6,785 $ 12,052 $ 1,009 $ 1,707 $ 21,553
(1) Pursuant to our business combinations accounting policy, we record goodwill adjustments for the effect on goodwill of changes to net assets acquired during the measurement period (up to
one year from the date of an acquisition). Goodwill adjustments for our services business in fiscal 2010 include $82 million that primarily relates to the reclassification of goodwill
associated with certain acquired product offerings to our new software licenses operating segment. The other goodwill adjustments presented in the table above were not significant to our
previously reported operating results or financial position.
8. NOTES PAYABLE AND OTHER BORROWINGS
Notes payable and other borrowings consisted of the following:
(Dollars in millions)
May 31,
2011
May 31,
2010
Commercial paper notes $ — $ 881
Short-term borrowings (effective interest rate of 0.44%) 1,150 —
5.00% senior notes due January 2011, net of discount of $1 as of May 31, 2010 — 2,249
4.95% senior notes due April 2013 1,250 1,250
3.75% senior notes due July 2014, net of fair value adjustment of $69 and $33 as of May 31, 2011 and 2010, respectively(1) 1,569 1,533
5.25% senior notes due January 2016, net of discount of $5 and $6 as of May 31, 2011 and 2010, respectively 1,995 1,994
5.75% senior notes due April 2018, net of discount of $1 each as of May 31, 2011 and 2010 2,499 2,499
5.00% senior notes due July 2019, net of discount of $5 and $6 as of May 31, 2011 and 2010, respectively 1,745 1,744
3.875% senior notes due July 2020, net of discount of $2 as of May 31, 2011 998 —
6.50% senior notes due April 2038, net of discount of $2 each as of May 31, 2011 and 2010 1,248 1,248
6.125% senior notes due July 2039, net of discount of $8 each as of May 31, 2011 and 2010 1,242 1,242
5.375% senior notes due July 2040, net of discount of $25 as of May 31, 2011 2,225 —
Capital leases 1 15
Total borrowings $ 15,922 $ 14,655
Notes payable, current and other current borrowings $ 1,150 $ 3,145
Notes payable, non-current and other non-current borrowings $ 14,772 $ 11,510
(1) Refer to Note 11 for a description of our accounting for fair value hedges
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Source: ORACLE CORP, 10-K, June 28, 2011 Powered by Morningstar® Document Research℠