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Table of Contents
ORACLE CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
May 31, 2014
Assets Measured at Fair Value on a Recurring Basis
Our assets measured at fair value on a recurring basis, excluding accrued interest components, consisted of the following (Level 1 and 2 inputs
are defined above):
Our valuation techniques used to measure the fair values of our marketable securities that were classified as Level 1 in the table above were
derived from quoted market prices and active markets for these instruments exist. Our valuation techniques used to measure the fair values of
Level 2 instruments listed in the table above, the counterparties to which have high credit ratings, were derived from the following: non-binding
market consensus prices that are corroborated by observable market data, quoted market prices for similar instruments, or pricing models, such
as discounted cash flow techniques, with all significant inputs derived from or corroborated by observable market data including LIBOR-based
yield curves, among others.
Based on the trading prices of our $24.2 billion and $18.5 billion of borrowings, which consisted of senior notes that were outstanding as of
May 31, 2014 and 2013, respectively, the estimated fair values of our borrowings using Level 2 inputs at May 31, 2014 and 2013 were $26.4
billion and $20.7 billion, respectively.
Inventories consisted of the following:
Property, plant and equipment, net consisted of the following:
107
May 31, 2014
May 31, 2013
Fair Value Measurements
Using Input Types
Fair Value Measurements
Using Input Types
(in millions)
Level 1
Level 2
Total
Level 1
Level 2
Total
Assets:
Commercial paper debt securities
$
—
$
7,969
$
7,969
$
—
$
14,043
$
14,043
Corporate debt securities and other
119
16,538
16,657
246
4,689
4,935
Derivative financial instruments
—
97
97
—
41
41
Total assets
$
119
$
24,604
$
24,723
$
246
$
18,773
$
19,019
5.
INVENTORIES
May 31,
(in millions)
2014
2013
Raw materials
$
74
$
114
Work
-
in
-
process
28
31
Finished goods
87
95
Total
$
189
$
240
6.
PROPERTY, PLANT AND EQUIPMENT
Estimated
Useful Life
May 31,
(Dollars in millions)
2014
2013
Computer, network, machinery and equipment
1
-
5 years
$
2,468
$
2,138
Buildings and improvements
1
-
50 years
2,582
2,477
Furniture, fixtures and other
3
-
10 years
531
481
Land
—
632
632
Construction in progress
—
26
28
Total property, plant and equipment
1
-
50 years
6,239
5,756
Accumulated depreciation
(3,178
)
(2,703
)
Total property, plant and equipment, net
$
3,061
$
3,053