Oracle 2014 Annual Report Download - page 126

Table of Contents
ORACLE CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
May 31, 2015
As of May 31, 2015, our unconditional purchase and certain other obligations were as follows (in millions):
As described in Note 8 and Note 11 above, as of May 31, 2015 we have senior notes of $42.0 billion that mature at various future dates and
derivative financial instruments outstanding that we leverage to manage certain risks and exposures.
Guarantees
Our software, cloud and hardware systems product sales agreements generally include certain provisions for indemnifying customers against
liabilities if our products infringe a third party’s intellectual property rights. To date, we have not incurred any material costs as a result of such
indemnifications and have not accrued any material liabilities related to such obligations in our consolidated financial statements. Certain of our
product sales agreements also include provisions indemnifying customers against liabilities in the event we breach confidentiality or service
level requirements. It is not possible to determine the maximum potential amount under these indemnification agreements due to our limited and
infrequent history of prior indemnification claims and the unique facts and circumstances involved in each particular agreement.
Our software license and hardware systems products agreements also generally include a warranty that our products will substantially operate as
described in the applicable program documentation for a period of one year after delivery. Our software as a service, platform as a service and
infrastructure as a service agreements generally include a warranty that the cloud services will be performed in all material respects as defined in
the agreement during the service period. We also warrant that services we perform will be provided in a manner consistent with industry
standards for a period of 90 days from performance of the services.
We occasionally are required, for various reasons, to enter into financial guarantees with third parties in the ordinary course of our
business including, among others, guarantees related to foreign exchange trades, taxes, import licenses and letters of credit on behalf of parties
with whom we conduct business. Such agreements have not had a material effect on our results of operations, financial position or cash flows.
Stock Repurchases
Our Board of Directors has approved a program for us to repurchase shares of our common stock. On September 18, 2014, we announced that
our Board of Directors approved an expansion of our stock repurchase program by an additional $13.0 billion. Approximately $9.2 billion
remained available for stock repurchases as of May 31, 2015, pursuant to our stock repurchase program. We repurchased 193.7 million shares
for $8.1 billion (including 2.2 million shares for $95 million that were repurchased but not settled), 280.4 million shares for $9.8 billion and
346.1 million shares for $11.0 billion in fiscal 2015, 2014 and 2013, respectively, under the stock repurchase program.
Our stock repurchase authorization does not have an expiration date and the pace of our repurchase activity will depend on factors such as our
working capital needs, our cash requirements for acquisitions and dividend payments, our debt repayment obligations or repurchase of our debt,
our stock price, and economic and market
122
Fiscal 2016
$
713
Fiscal 2017
195
Fiscal 2018
124
Fiscal 2019
85
Fiscal 2020
64
Thereafter
—
Total
$
1,181
13.
STOCKHOLDERS
’
EQUITY