Oracle 2011 Annual Report Download - page 114

Download and view the complete annual report

Please find page 114 of the 2011 Oracle annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 140

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140

ORACLE CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
May 31, 2011
9. RESTRUCTURING ACTIVITIES
Sun Restructuring Plan
During the third quarter of fiscal 2010, our management approved, committed to and initiated a plan to
restructure our operations due to our acquisition of Sun (the Sun Restructuring Plan) in order to improve the cost
efficiencies in our merged operations. Our management subsequently amended the Sun Restructuring Plan to
reflect additional actions that we expect to take to improve the cost efficiencies in our merged operations. The
total estimated restructuring costs associated with the Sun Restructuring Plan are $1.0 billion consisting primarily
of employee severance expenses, abandoned facilities obligations and contract termination costs. The
restructuring costs will be recorded to the restructuring expense line item within our consolidated statements of
operations as they are recognized. We recorded $439 million and $342 million of restructuring expenses in
connection with the Sun Restructuring Plan in fiscal 2011 and 2010, respectively, and we expect to incur the
majority of the approximately $250 million of remaining expenses pursuant to the Sun Restructuring Plan
through fiscal 2012. Any changes to the estimates of executing the Sun Restructuring Plan will be reflected in our
future results of operations.
Other Restructuring Plans
Included in the other restructuring plans line in the fiscal 2011 and 2010 activity tables, and total restructuring
plans line in the fiscal 2009 activity table, below are our Fiscal 2009 Oracle Restructuring Plan (the 2009 Plan)
and certain restructuring plans that relate to companies that we acquired prior to our adoption of the revised
business combinations accounting guidance contained in ASC 805 as of the beginning of fiscal 2010. The total
estimated restructuring costs associated with the 2009 Plan are recorded to the restructuring expense line item
within our consolidated statements of operations as they are recognized whereas costs related to acquired
companies related restructuring plans were originally recognized as liabilities assumed in each of the respective
business combinations and included in the allocation of the cost to acquire these companies and, accordingly,
have resulted in an increase to goodwill. Our restructuring expenses may change as our management executes the
approved plans. Future decreases to the estimates of executing these acquisition related restructuring plans will
be recorded as an adjustment to goodwill indefinitely. Increases to the estimates of the acquisition related
restructuring plans will be recorded to operating expenses.
112