Oracle 2011 Annual Report Download - page 106

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ORACLE CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
May 31, 2011
During fiscal 2011, we acquired certain other companies and purchased certain technology and development
assets to expand our products and services offerings. These acquisitions were not significant individually or in
the aggregate. We have included the financial results of these companies in our consolidated results from their
respective acquisition dates.
In aggregate, companies acquired during fiscal 2011 contributed $231 million to our total software revenues.
Other revenue and earnings contributions were not separately identifiable due to the integration of these acquired
entities into our existing operations.
The preliminary purchase price allocations for acquisitions completed during fiscal 2011 were based upon
preliminary calculations and valuations and our estimates and assumptions for each of these acquisitions are
subject to change as we obtain additional information for our estimates during the respective measurement
periods (up to one year from the acquisition date). The primary areas of those preliminary purchase price
allocations that are not yet finalized related to certain tangible assets and liabilities acquired, identifiable
intangible assets, certain legal matters, income and non-income based taxes and residual goodwill.
Subsequent to fiscal 2011, we agreed to acquire certain other companies for amounts that are not material to our
business. We expect to close such acquisitions within the next twelve months.
Fiscal 2010 Acquisitions
Acquisition of Sun Microsystems, Inc.
On January 26, 2010 we completed our acquisition of Sun, a provider of hardware systems, software and
services, by means of a merger of one of our wholly owned subsidiaries with and into Sun such that Sun became
a wholly owned subsidiary of Oracle. We acquired Sun to, among other things, expand our product offerings by
adding Sun’s existing hardware systems business and broadening our software and services offerings. We have
included the financial results of Sun in our consolidated financial statements from the date of acquisition. For
fiscal 2010, we estimate that Sun’s contribution to our total revenues was $2.8 billion, which included allocations
of revenues from our software and services businesses that were not separately identifiable due to our integration
activities. For fiscal 2010, Sun reduced our operating income by $620 million, which included management’s
allocations and estimates of revenues and expenses that were not separately identifiable due to our integration
activities, intangible asset amortization, restructuring expenses and stock-based compensation expenses.
The total purchase price for Sun was $7.3 billion which consisted of $7.2 billion in cash paid to acquire the
outstanding common stock of Sun and $99 million for the fair value of stock options and restricted-stock based
awards assumed. In allocating the purchase price based on estimated fair values, we recorded approximately $1.4
billion of goodwill, $3.3 billion of identifiable intangible assets, $415 million of in-process research and
development and $2.2 billion of net tangible assets.
Other Fiscal 2010 Acquisitions
During fiscal 2010, we acquired certain other companies and purchased certain technology and development
assets to expand our product and services offerings. These acquisitions were not significant individually or in the
aggregate. We have included the financial results of these companies in our consolidated results from their
respective acquisition dates.
Fiscal 2009 Acquisitions
During fiscal 2009, we acquired several companies and purchased certain technology and development assets to
expand our product offerings. These acquisitions were not individually significant. We have included the
financial results of these companies in our consolidated results from their respective acquisition dates. In the
aggregate, the total purchase price for these acquisitions was approximately $1.2 billion, which consisted of
104