Oracle 2012 Annual Report Download - page 67

Download and view the complete annual report

Please find page 67 of the 2012 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

Fiscal 2012 Compared to Fiscal 2011: Excluding the effect of currency rate fluctuations, hardware systems
support revenues decreased in fiscal 2012 due to revenue decreases in the EMEA and Asia Pacific regions,
partially offset by higher revenues in the Americas.
As a result of our acquisitions, we recorded adjustments to reduce assumed hardware systems support obligations
to their estimated fair values at the acquisition dates. Due to our application of business combination accounting
rules, hardware systems support revenues related to hardware systems support contracts in the amounts of $30
million, $148 million and $128 million that would have been otherwise reported by our acquired businesses as
independent entities were not recognized in fiscal 2012, 2011 and 2010, respectively. To the extent these
underlying support contracts are renewed, we will recognize the revenues for the full values of these contracts
over the future support periods.
Excluding the effect of currency rate fluctuations, total hardware systems support expenses decreased in fiscal
2012 primarily due to the reduction of service delivery costs during fiscal 2012 resulting from our integration
initiatives associated with our acquisition of Sun.
Excluding the effect of currency rate fluctuations, total hardware systems support margin and margin as a
percentage of total revenues increased as a result of our expense reductions.
Fiscal 2011 Compared to Fiscal 2010: The increases in hardware systems support revenues and expenses in
fiscal 2011 were primarily attributable to the impact of Sun’s contributions to our operating results for the full
fiscal 2011 period as compared to fiscal 2010. As a result of our acquisition of Sun, we recorded adjustments to
reduce assumed hardware systems support obligations to their estimated fair values at the acquisition date as
prescribed by business combination accounting rules that, as described above, affected the amounts of hardware
systems support revenues that we recognized in fiscal 2011 and fiscal 2010.
Excluding the effect of currency rate fluctuations, total hardware systems support margin and margin as a
percentage of total revenues increased as our total revenues increased at a faster rate than our total expenses.
63