Oracle 2013 Annual Report Download - page 78

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Table of Contents
The Compensation Committee of the Board of Directors reviews and approves the organization-wide stock option grants to selected employees,
all stock option grants to executive officers and any individual stock option grants in excess of 100,000 shares. A separate Plan Committee,
which is an executive officer committee, approves individual stock option grants of up to 100,000 shares to non-executive officers and
employees. Stock option and restricted stock-based award activity from June 1, 2011 through May 31, 2014 is summarized as follows (shares in
millions):
Our Compensation Committee approves the annual organization-wide option grants to certain employees. These annual option grants were
historically made during the ten business day period following the second trading day after the announcement of our fiscal fourth quarter
earnings report.
Recent Accounting Pronouncements
For information with respect to recent accounting pronouncements and the impact of these pronouncements on our consolidated financial
statements, see Note 1 of Notes to Consolidated Financial Statements included elsewhere in this Annual Report.
Item 7A. Quantitative and Qualitative Disclosures About Market Risk
Cash, Cash Equivalents, Marketable Securities and Interest Income Risk
Our bank deposits and time deposits are generally held with large, diverse financial institutions worldwide with high investment grade credit
ratings, which we believe mitigates certain risks. In addition, we purchase high quality debt security investments, approximately 45% of which
have maturity dates within one year and 55% of which have maturity dates within one to four years as of May 31, 2014 (see a description of our
debt securities held in Note 3 and Note 4 of Notes to Consolidated Financial Statements included elsewhere in this Annual Report and “
Liquidity
and Capital Resources” above). Interest rate movements can impact the valuation of our debt securities but are presently not significant to our
valuations considering the current interest rate environment and the duration of our portfolio. Substantially all of our marketable securities are
designated as available-for-sale. We generally do not use our investments for trading purposes.
Changes in the overall level of interest rates affect the interest income that is generated from our cash, cash equivalents and marketable
securities. For fiscal 2014, total interest income was $263 million with our cash, cash
74
Stock options and restricted stock
-
based awards outstanding at May 31, 2011
356
Stock options granted
362
Stock options and restricted stock
-
based awards assumed
28
Stock options exercised and restricted stock
-
based awards vested
(219
)
Forfeitures, cancellations and other, net
(64
)
Stock options and restricted stock
-
based awards outstanding at May 31, 2014
463
Weighted average annualized stock options and restricted stock-based awards granted and assumed, net of forfeitures and
cancellations
109
Weighted average annualized stock repurchases
(278
)
Shares outstanding at May 31, 2014
4,464
Basic weighted average shares outstanding from June 1, 2011 through May 31, 2014
4,771
Stock options and restricted stock
-
based awards outstanding as a percent of shares outstanding at May 31, 2014
10.4%
In the money stock options and total restricted stock-based awards outstanding (based on the closing price of our common stock on
the last trading day of our fiscal period presented) as a percent of shares outstanding at May 31, 2014
10.3%
Weighted average annualized stock options and restricted stock-based awards granted and assumed, net of forfeitures and
cancellations and before stock repurchases, as a percent of weighted average shares outstanding from June 1, 2011 through
May 31, 2014
2.3%
Weighted average annualized stock options and restricted stock-based awards granted and assumed, net of forfeitures and
cancellations and after stock repurchases, as a percent of weighted average shares outstanding from June 1, 2011 through May 31,
2014
-
3.5%