Oracle 2010 Annual Report Download - page 126

Table of Contents
ORACLE CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
May 31, 2011
the total tax benefits received, we classified excess tax benefits from stock-based compensation of $215 million, $110 million and $194 million as cash flows
from financing activities rather than cash flows from operating activities for fiscal 2011, 2010 and 2009, respectively.
Employee Stock Purchase Plan
We have an Employee Stock Purchase Plan (Purchase Plan) and have amended the Purchase Plan such that employees can purchase shares of common stock at a
price per share that is 95% of the fair market value of Oracle stock as of the end of the semi-annual option period. As of May 31, 2011, 71 million shares were
reserved for future issuances under the Purchase Plan. We issued 4 million shares under the Purchase Plan for fiscal 2011 and 3 million shares in each of fiscal
2010 and 2009.
Defined Contribution and Other Postretirement Plans
We offer various defined contribution plans for our U.S. and non-U.S. employees. Total defined contribution plan expense was $354 million, $253 million and
$258 million for fiscal 2011, 2010 and 2009, respectively. The number of plan participants in our benefit plans has generally increased in recent years primarily
as a result of additional eligible employees from our acquisitions.
In the United States, regular employees can participate in the Oracle Corporation 401(k) Savings and Investment Plan (Oracle 401(k) Plan). Participants can
generally contribute up to 40% of their eligible compensation on a per-pay-period basis as defined by the plan document or by the section 402(g) limit as defined
by the United States Internal Revenue Service (IRS). We match a portion of employee contributions, currently 50% up to 6% of compensation each pay period,
subject to maximum aggregate matching amounts. Our contributions to the plan, net of forfeitures, were $119 million, $90 million and $78 million in fiscal 2011,
2010 and 2009, respectively.
We also offer non-qualified deferred compensation plans to certain key employees whereby they may defer a portion of their annual base and/or variable
compensation until retirement or a date specified by the employee in accordance with the plans. Deferred compensation plan assets and liabilities were
approximately $260 million and $216 million as of May 31, 2011 and 2010, respectively, and are presented in other assets and other non-current liabilities in the
accompanying consolidated balance sheets.
We sponsor certain defined benefit pension plans that are offered primarily by certain of our foreign subsidiaries. Many of these plans were assumed through our
acquisitions or are required by local regulatory requirements. We may deposit funds for these plans with insurance companies, third party trustees, or into
government-managed accounts consistent with local regulatory requirements, as applicable. Our total defined benefit plan pension expenses were $38 million and
$29 million for fiscal 2011 and 2010 (insignificant for fiscal 2009). The aggregate projected benefit obligation and aggregate net liability (funded status) of our
defined benefit plans were $584 million and $181 million as of May 31, 2011, respectively, and $636 million and $196 million as of May 31, 2010, respectively.
15. INCOME TAXES
The following is a geographical breakdown of income before the provision for income taxes:
Year Ended May 31,
(in millions) 2011 2010 2009
Domestic $ 6,378 $ 4,282 $ 3,745
Foreign 5,033 3,961 4,089
Total income before provision for income taxes $ 11,411 $ 8,243 $ 7,834
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Source: ORACLE CORP, 10-K, June 28, 2011 Powered by Morningstar® Document Research℠