Oracle 2013 Annual Report Download - page 81

Table of Contents
Foreign Currency Translation Risk—Impact on Cash, Cash Equivalents and Marketable Securities
Fluctuations in foreign currencies impact the amount of total assets and liabilities that we report for our foreign subsidiaries upon the translation
of these amounts into U.S. Dollars. In particular, the amount of cash, cash equivalents and marketable securities that we report in U.S. Dollars
for a significant portion of the cash held by these subsidiaries is subject to translation variance caused by changes in foreign currency exchange
rates as of the end of each respective reporting period (the offset to which is recorded to accumulated other comprehensive loss on our
consolidated balance sheet and is also presented as a line item in our consolidated statements of comprehensive income included elsewhere in
this Annual Report).
As the U.S. Dollar fluctuated against certain international currencies as of the end of fiscal 2014, the amount of cash, cash equivalents and
marketable securities that we reported in U.S. Dollars for foreign subsidiaries that hold international currencies as of May 31, 2014 decreased
relative to what we would have reported using a constant currency rate as of May 31, 2013. As reported in our consolidated statements of cash
flows, the estimated effect of exchange rate changes on our reported cash and cash equivalents balances in U.S. Dollars for fiscal 2014, 2013 and
2012 were decreases of $158 million, $110 million and $471 million, respectively. The following table includes estimates of the U.S. Dollar
equivalent of cash, cash equivalents and marketable securities denominated in certain major foreign currencies as of May 31, 2014:
If overall foreign currency exchange rates in comparison to the U.S. Dollar uniformly weakened by 10%, the amount of cash, cash equivalents
and marketable securities we would report in U.S. Dollars would decrease by approximately $802 million, assuming constant foreign currency
cash, cash equivalents and marketable securities balances.
Item 8. Financial Statements and Supplementary Data
The response to this item is submitted as a separate section of this Annual Report. See Part IV, Item 15.
Item 9. Changes In and Disagreements with Accountants on Accounting and Financial Disclosure
None.
Item 9A. Controls and Procedures
Evaluation of Disclosure Controls and Procedures
As of the end of the period covered by this Annual Report on Form 10-K, we carried out an evaluation under the supervision and with the
participation of our Disclosure Committee and our management, including our Chief Executive Officer and our President and Chief Financial
Officer, of the effectiveness of the design and operation of our disclosure controls and procedures pursuant to Exchange Act Rules 13a-
15(e) and
15d-15(e). Disclosure controls are procedures that are designed to ensure that information required to be disclosed in our reports filed under the
Securities Exchange Act of 1934, or the Exchange Act, such as this Annual Report on Form 10-K, is recorded, processed, summarized and
reported within the time periods specified by the U.S. Securities and Exchange Commission. Disclosure controls are also designed to ensure that
such information is accumulated and communicated to our
77
(in millions)
U.S. Dollar
Equivalent at
May 31, 2014
Euro
$
1,843
Indian Rupee
1,172
Australian Dollar
724
Japanese Yen
550
Chinese Renminbi
535
Canadian Dollar
385
South African Rand
341
British Pound
325
Other foreign currencies
2,148
Total cash, cash equivalents and marketable securities denominated in foreign currencies
$
8,023