Oracle 2012 Annual Report Download - page 113

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ORACLE CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
May 31, 2012
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 consisted primarily of employee
severance expenses, abandoned facilities obligations and contract termination costs and were recorded to the
restructuring expense line item within our consolidated statements of operations as they were recognized. We
recorded $215 million, $439 million and $342 million of net restructuring expenses in connection with the Sun
Restructuring Plan in fiscal 2012, 2011 and 2010, respectively. The execution of the Sun Restructuring Plan is
substantially complete as of the end of fiscal 2012. Any changes to the estimates of executing the Sun
Restructuring Plan will be reflected in our future results of operations.
Summary of All Plans
Fiscal 2012 Activity
Accrued Year Ended May 31, 2012 Accrued
May 31, Initial Adj. to Cash May 31,
(in millions) 2011(2) Costs(3) Cost(4) Payments Others(5) 2012(2)
Sun Restructuring Plan(1)
New software licenses ................................ $ 14 $ 46 $ (8) $ (41) $ (2) $ 9
Software license updates and product support .............. 19 31 (2) (35) (1) 12
Hardware systems business ............................ 10 34 1 (33) — 12
Services ........................................... 9 32 (2) (25) (2) 12
General and administrative and other .................... 100 92 (9) (129) (1) 53
Total Sun Restructuring ........................... $ 152 $ 235 $ (20) $ (263) $ (6) $ 98
Total other restructuring plans(6) .................... $ 297 $ 65 $ 15 $ (122) $ (16) $ 239
Total restructuring plans .................... $ 449 $ 300 $ (5) $ (385) $ (22) $ 337
Fiscal 2011 Activity
Accrued Year Ended May 31, 2011 Accrued
May 31, Initial Adj. to Cash May 31,
(in millions) 2010 Costs(3) Cost(4) Payments Others(5) 2011(2)
Sun Restructuring Plan(1)
New software licenses ................................ $ 5 $ 67 $ (4) $ (55) $ 1 $ 14
Software license updates and product support .............. 3 52 (1) (34) (1) 19
Hardware systems business ............................ 42 53 (3) (83) 1 10
Services ........................................... 8 49 (4) (43) (1) 9
General and administrative and other .................... 29 226 4 (154) (5) 100
Total Sun Restructuring ........................... $ 87 $ 447 $ (8) $ (369) $ (5) $ 152
Total other restructuring plans(6) .................... $ 459 $ 57 $ (17) $ (223) $ 21 $ 297
Total restructuring plans .................... $ 546 $ 504 $ (25) $ (592) $ 16 $ 449
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