Oracle 2010 Annual Report Download - page 36

Table of Contents
with these environmental laws, yet compliance with such laws could increase our product design, development, procurement and manufacturing costs, limit our
ability to manage excess and obsolete non-compliant inventory, change our sales activities, or otherwise impact future financial results of our hardware systems
business. Any violation of these laws can subject us to significant liability, including fines, penalties, and possible prohibition of sales of our products into one or
more states or countries, and result in a material adverse effect on the financial condition or results of operations of our hardware systems business. A significant
portion of our hardware systems revenues come from international sales. Environmental legislation within the European Union (EU), including the EU Directive
on Restriction of Hazardous Substances (RoHS) and Waste Electrical and Electronic Equipment Directive (WEEE Directive), as well as China’s regulation on
Management Methods for Controlling Pollution Caused by Electronic Information Products may increase our cost of doing business internationally and impact
our hardware systems revenues from EU countries and China as we endeavor to comply with and implement these requirements. In addition, similar
environmental legislation has been or may be enacted in other jurisdictions, the cumulative impact of which could be significant.
Our stock price could become more volatile and your investment could lose value. All of the factors discussed in this section could affect our stock price. The
timing of announcements in the public market regarding new products, product enhancements or technological advances by our competitors or us, and any
announcements by us of acquisitions, major transactions, or management changes could also affect our stock price. Changes in the amounts and frequency of
share repurchases or dividends could adversely affect our stock price. Our stock price is subject to speculation in the press and the analyst community, changes in
recommendations or earnings estimates by financial analysts, changes in investors’ or analysts’ valuation measures for our stock, our credit ratings and market
trends unrelated to our performance. A significant drop in our stock price could also expose us to the risk of securities class actions lawsuits, which could result
in substantial costs and divert management’s attention and resources, which could adversely affect our business.
Item 1B. Unresolved Staff Comments
None.
Item 2. Properties
Our properties consist of owned and leased office facilities for sales, support, research and development, consulting, manufacturing and administrative personnel.
Our headquarters facility consists of approximately 2.1 million square feet in Redwood City, California, substantially all of which we own. We lease our
principal internal manufacturing facility for our hardware systems products in Hillsboro, Oregon. We also own or lease other office facilities for current use
consisting of approximately 27.1 million square feet in various other locations in the United States and abroad. We believe our facilities are in good condition
and suitable for the conduct of our business. Approximately 6.5 million square feet, or 22%, of total owned and leased space is sublet or is being actively
marketed for sublease or disposition.
Item 3. Legal Proceedings
The material set forth in Note 18 of Notes to Consolidated Financial Statements in Item 15 of this Annual Report on Form 10-K is incorporated herein by
reference.
Item 4. Removed and Reserved
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Source: ORACLE CORP, 10-K, June 28, 2011 Powered by Morningstar® Document Research℠