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Table of Contents
ORACLE CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
May 31, 2014
Fiscal 2013 Oracle Restructuring Plan
During the first quarter of fiscal 2013, our management approved, committed to and initiated plans to restructure and further improve
efficiencies in our operations (the 2013 Restructuring Plan). Our management subsequently amended the 2013 Restructuring Plan in the third
quarter of fiscal 2013 and in the first quarter of fiscal 2014 to reflect additional actions that we expect to take. The total estimated restructuring
costs associated with the 2013 Restructuring Plan are $705 million and will be recorded to the restructuring expense line item within our
consolidated statements of operations as they are incurred. We recorded $174 million and $325 million of restructuring expenses in connection
with the 2013 Restructuring Plan in fiscal 2014 and 2013, respectively, and we expect to incur the majority of the estimated remaining $206
million through the end of fiscal 2015. Any changes to the estimates of executing the 2013 Restructuring Plan will be reflected in our future
results of operations.
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 Microsystems, Inc. (the Sun Restructuring Plan) in order to improve the cost efficiencies in our merged operations.
Restructuring costs associated with the Sun Restructuring Plan were recorded to the restructuring expense line item within our consolidated
statements of operations as they were recognized. We recorded $215 million of net restructuring expenses in connection with the Sun
Restructuring Plan in fiscal 2012. The execution of the Sun Restructuring Plan was substantially complete as of the end of fiscal 2012.
Summary of All Plans
Fiscal 2014 Activity
112
9.
RESTRUCTURING ACTIVITIES
Total
Costs
Accrued
to Date
Total
Expected
Program
Costs
Accrued
May 31,
2013
Year Ended May 31, 2014
Accrued
May 31,
2014
Initial
Adj. to
Cash
(in millions)
Costs
Cost
Payments
Others
Fiscal 2013 Oracle Restructuring Plan
New software licenses and cloud software subscriptions
$
16
$
57
$
(8
)
$
(55
)
$
2
$
12
$
126
$
158
Software license updates and product support
1
11
—
(
10
)
3
5
18
24
Hardware systems business
24
48
(3
)
(52
)
1
18
139
238
Services
18
39
(7
)
(39
)
—
11
99
166
General and administrative and other
12
42
(5
)
(39
)
5
15
117
119
Total Fiscal 2013 Oracle Restructuring Plan
$
71
$
197
$
(23
)
$
(195
)
$
11
$
61
$
499
$
705
Total other restructuring plans
$
179
$
24
$
(15
)
$
(58
)
$
(22
)
$
108
Total restructuring plans
$
250
$
221
$
(38
)
$
(253
)
$
(11
)
$
169
(2) (2) (3)
(4)
(5)
(1)
(6)