Oracle 2011 Annual Report Download - page 107

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ORACLE CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
May 31, 2011
approximately $1.2 billion in cash, $1 million for the fair value of stock options and restricted stock-based
awards assumed and $13 million for transaction costs. In allocating the total purchase price for these acquisitions
based on estimated fair values, we recorded $708 million of goodwill, $587 million of identifiable intangible
assets, $96 million of net tangible liabilities (resulting primarily from deferred tax and restructuring liabilities
assumed as a part of these transactions) and $10 million of in-process research and development.
Unaudited Pro Forma Financial Information
The unaudited pro forma financial information in the table below summarizes the combined results of operations
for Oracle, Sun, Phase Forward, ATG and certain other companies that we acquired since the beginning of fiscal
2010 (which were collectively significant for the purposes of unaudited pro forma financial information
disclosure) as though the companies were combined as of the beginning of fiscal 2010. The pro forma financial
information for all periods presented also includes the business combination accounting effects resulting from
these acquisitions including our amortization charges from acquired intangible assets (certain of which are
preliminary), the elimination of certain goodwill and intangible asset impairment charges incurred by Sun, stock-
based compensation charges for unvested stock options and restricted stock-based awards assumed, adjustments
to interest expense for certain borrowings and the related tax effects as though the aforementioned companies
were combined as of the beginning of fiscal 2010. The pro forma financial information as presented below is for
informational purposes only and is not indicative of the results of operations that would have been achieved if the
acquisitions and any borrowings undertaken to finance these acquisitions had taken place at the beginning of
fiscal 2010.
The unaudited pro forma financial information for fiscal 2011 combined the historical results of Oracle for fiscal
2011, the historical results of ATG for the seven months ended September 30, 2010 (adjusted due to differences
in reporting periods and considering the date we acquired ATG), the historical results of Phase Forward for the
two months ended June 30, 2010 (adjusted due to differences in reporting periods and considering the date we
acquired Phase Forward), and the effects of the pro forma adjustments described above.
The unaudited pro forma financial information for fiscal 2010 combined the historical results of Oracle for fiscal
2010, the historical results of ATG for the twelve months ended June 30, 2010 (due to differences in reporting
periods), the historical results of Phase Forward for the twelve months ended June 30, 2010 (due to differences in
reporting periods), the historical results of Sun for the eight months ended September 27, 2009 (adjusted due to
differences in reporting periods and considering the date we acquired Sun) and the historical results of certain
other companies that we acquired since the beginning of fiscal 2010 based upon their respective previous
reporting periods and the dates these companies were acquired by us, and the effects of the pro forma
adjustments listed above. The unaudited pro forma financial information was as follows for fiscal 2011 and 2010:
Year Ended May 31,
(in millions, except per share data) 2011 2010
Total revenues ......................................................... $ 35,783 $ 33,965
Net income ........................................................... $ 8,525 $ 5,591
Basic earnings per share ................................................. $ 1.69 $ 1.12
Diluted earnings per share ................................................ $ 1.66 $ 1.10
3. CASH, CASH EQUIVALENTS AND MARKETABLE SECURITIES
Cash and cash equivalents primarily consist of deposits held at major banks, money market funds, Tier-1
commercial paper, U.S. Treasury obligations, U.S. government agency and government sponsored enterprise
obligations, and other securities with original maturities of 90 days or less. Marketable securities primarily
consist of time deposits held at major banks, Tier-1 commercial paper, corporate notes, U.S. Treasury obligations
and U.S. government agency and government sponsored enterprise debt obligations and certain other securities.
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