Oracle 2010 Annual Report Download - page 62

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On a constant currency basis, total software license updates and product support expenses increased due to an increase in salaries, variable compensation and
benefits expenses that were primarily related to a full year’s contribution from Sun and certain other headcount increases and, to a lesser extent, an increase in
bad debt expenses resulting from higher revenues.
Excluding the effect of currency rate fluctuations, total software license updates and product support margin and margin as a percentage of total revenues
increased as our total revenues increased at a faster rate than our total expenses, primarily as a result of a slight decline in amortization of intangible assets.
Fiscal 2010 Compared to Fiscal 2009: On a constant currency basis, software license updates and product support revenues increased in fiscal 2010 for similar
reasons as noted above. Excluding the effect of currency rate fluctuations, the Americas contributed 49%, EMEA contributed 39% and Asia Pacific contributed
12% to the increase in software license updates and product support revenues.
In reported currency, software license updates and product support revenues in fiscal 2010 included incremental revenues of $88 million from Sun and $56
million from our other recently acquired companies. As described above, the amounts of software license updates and product support revenues that we
recognized in fiscal 2010 and fiscal 2009 were affected by business combination accounting rules.
On a constant currency basis, total software license updates and product support expenses decreased due to reductions in our bad debt expenses during fiscal
2010 and were partially offset by an increase in salary and benefits expenses from increased headcount, including headcount assumed from Sun.
Excluding the effect of currency rate fluctuations, total software license updates and product support margin and margin as a percentage of total revenues
increased as our total revenues grew while our total expenses declined.
Hardware Systems Business
As a result of our acquisition of Sun, we entered into a new hardware systems business in fiscal 2010. Our hardware systems business consists of two operating
segments: hardware systems products and hardware systems support.
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Source: ORACLE CORP, 10-K, June 28, 2011 Powered by Morningstar® Document Research℠