Oracle 2013 Annual Report Download - page 55

Table of Contents
We caution readers that, while pre- and post-acquisition comparisons, as well as any quantified amounts themselves, may provide indications of
general trends, the acquisition information that we provide has inherent limitations for the following reasons:
Constant Currency Presentation
Our international operations have provided and will continue to provide a significant portion of our total revenues and expenses. As a result, total
revenues and expenses will continue to be affected by changes in the U.S. Dollar against major international currencies. In order to provide a
framework for assessing how our underlying businesses performed excluding the effect of foreign currency fluctuations, we compare the percent
change in the results from one period to another period in this Annual Report using constant currency disclosure. To present this information,
current and comparative prior period results for entities reporting in currencies other than U.S. Dollars are converted into U.S. Dollars at constant
exchange rates (i.e., the rates in effect on May 31, 2013, which was the last day of our prior fiscal year) rather than the actual exchange rates in
effect during the respective periods. For example, if an entity reporting in Euros had revenues of 1.0 million Euros from products sold on
May 31, 2014 and 2013, our financial statements would reflect reported revenues of $1.36 million in fiscal 2014 (using 1.36 as the month-end
average exchange rate for the period) and $1.29 million in fiscal 2013 (using 1.29 as the month-end average exchange rate for the period). The
constant currency presentation would translate the fiscal 2014 results using the fiscal 2013 exchange rate and indicate, in this example, no
change in revenues during the period. In each of the tables below, we present the percent change based on actual, unrounded results in reported
currency and in constant currency.
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any qualitative and quantitative disclosures cannot specifically address or quantify the substantial effects attributable to changes in
business strategies, including our sales force integration efforts. We believe that if our acquired companies had operated independently
and sales forces had not been integrated, the relative mix of products sold would have been different; and
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although substantially all of our customers, including customers from acquired companies, renew their software license updates and
product support contracts when the contracts are eligible for renewal and we strive to renew cloud SaaS and PaaS contracts and
hardware systems support contracts, the amounts shown as cloud software-as-a-service and platform-as-a-service deferred revenues,
software license updates and product support deferred revenues, and hardware systems support deferred revenues in our supplemental
disclosure related to certain charges (presented below) are not necessarily indicative of revenue improvements we will achieve upon
contract renewals to the extent customers do not renew.