Oracle 2012 Annual Report Download - page 122

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ORACLE CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
May 31, 2012
Employee Stock Purchase Plan
We have an Employee Stock Purchase Plan (Purchase Plan) that allows employees to purchase shares of
common stock at a price per share that is 95% of the fair market value of Oracle stock as of the end of the semi-
annual option period. As of May 31, 2012, 67 million shares were reserved for future issuances under the
Purchase Plan. We issued 4 million shares under the Purchase Plan in each of fiscal 2012 and 2011 and 3 million
shares in fiscal 2010.
Defined Contribution and Other Postretirement Plans
We offer various defined contribution plans for our U.S. and non-U.S. employees. Total defined contribution
plan expense was $344 million, $312 million and $253 million for fiscal 2012, 2011 and 2010, respectively. The
number of plan participants in our benefit plans has generally increased in recent years primarily as a result of
additional eligible employees from our acquisitions.
In the United States, regular employees can participate in the Oracle Corporation 401(k) Savings and Investment
Plan (Oracle 401(k) Plan). Participants can generally contribute up to 40% of their eligible compensation on a
per-pay-period basis as defined by the Oracle 401(k) Plan document or by the section 402(g) limit as defined by
the United States Internal Revenue Service (IRS). We match a portion of employee contributions, currently 50%
up to 6% of compensation each pay period, subject to maximum aggregate matching amounts. Our contributions
to the Oracle 401(k) Plan, net of forfeitures, were $125 million, $119 million and $90 million in fiscal 2012,
2011 and 2010, respectively.
We also offer non-qualified deferred compensation plans to certain key employees whereby they may defer a
portion of their annual base and/or variable compensation until retirement or a date specified by the employee in
accordance with the plans. Deferred compensation plan assets and liabilities were each approximately $264
million as of May 31, 2012 and were each approximately $260 million as of May 31, 2011 and are presented in
other assets and other non-current liabilities in the accompanying consolidated balance sheets.
We sponsor certain defined benefit pension plans that are offered primarily by certain of our foreign subsidiaries.
Many of these plans were assumed through our acquisitions or are required by local regulatory requirements. We
may deposit funds for these plans with insurance companies, third party trustees, or into government-managed
accounts consistent with local regulatory requirements, as applicable. Our total defined benefit plan pension
expenses were $55 million, $76 million and $29 million for fiscal 2012, 2011 and 2010, respectively. The
aggregate projected benefit obligation and aggregate net liability (funded status) of our defined benefit plans
were $691 million and $297 million as of May 31, 2012, respectively, and $584 million and $181 million as of
May 31, 2011, respectively.
15. INCOME TAXES
The following is a geographical breakdown of income before the provision for income taxes:
Year Ended May 31,
(in millions) 2012 2011 2010
Domestic ...................................................... $ 6,284 $ 6,378 $ 4,282
Foreign ........................................................ 6,678 5,033 3,961
Income before provision for income taxes ........................ $ 12,962 $ 11,411 $ 8,243
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