Oracle 2014 Annual Report Download - page 131

Table of Contents
ORACLE CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
May 31, 2015
Tax Benefits from Exercise of Stock Options and Vesting of Restricted Stock-Based Awards
Total cash received as a result of option exercises was approximately $1.7 billion, $2.0 billion and $1.4 billion for fiscal 2015, 2014 and 2013,
respectively. The aggregate intrinsic value of options exercised and vesting of restricted stock-based awards was $1.3 billion, $1.5 billion and
$1.3 billion for fiscal 2015, 2014 and 2013, respectively. In connection with these exercises and vesting of restricted stock-based awards, the tax
benefits realized by us were $396 million, $480 million and $410 million for fiscal 2015, 2014 and 2013, respectively. Of the total tax benefits
received, we classified excess tax benefits from stock-based compensation of $244 million, $250 million and $241 million as cash flows from
financing activities rather than cash flows from operating activities for fiscal 2015, 2014 and 2013, respectively.
Employee Stock Purchase Plan
We have an Employee Stock Purchase Plan (Purchase Plan) that allows employees to purchase shares of common stock at a price per share that
is 95% of the fair market value of Oracle stock as of the end of the semi-annual option period. As of May 31, 2015, 57 million shares were
reserved for future issuances under the Purchase Plan. We issued 3 million shares under the Purchase Plan in each of fiscal 2015, fiscal 2014 and
fiscal 2013.
Defined Contribution and Other Postretirement Plans
We offer various defined contribution plans for our U.S. and non-U.S. employees. Total defined contribution plan expense was $362 million,
$357 million and $353 million for fiscal 2015, 2014 and 2013, respectively. The number of plan participants in our benefit plans has generally
increased in recent years primarily as a result of additional eligible employees from our acquisitions.
In the United States, regular employees can participate in the Oracle Corporation 401(k) Savings and Investment Plan (Oracle 401(k) Plan).
Participants can generally contribute up to 40% of their eligible compensation on a per-pay-period basis as defined by the Oracle 401(k) Plan
document or by the section 402(g) limit as defined by the United States Internal Revenue Service (IRS). We match a portion of employee
contributions, currently 50% up to 6% of compensation each pay period, subject to maximum aggregate matching amounts. Our contributions to
the Oracle 401(k) Plan, net of forfeitures, were $144 million, $134 million and $129 million in fiscal 2015, 2014 and 2013, respectively.
We also offer non-qualified deferred compensation plans to certain key employees whereby they may defer a portion of their annual base and/or
variable compensation until retirement or a date specified by the employee in accordance with the plans. Deferred compensation plan assets and
liabilities were each approximately $408 million as of May 31, 2015 and were each approximately $367 million as of May 31, 2014 and were
presented in other assets and other non-current liabilities in the accompanying consolidated balance sheets.
We sponsor certain defined benefit pension plans that are offered primarily by certain of our foreign subsidiaries. Many of these plans were
assumed through our acquisitions or are required by local regulatory requirements. We may deposit funds for these plans with insurance
companies, third party trustees, or into government-managed accounts consistent with local regulatory requirements, as applicable. Our total
defined benefit plan pension expenses were $69 million, $64 million and $81 million for fiscal 2015, 2014 and 2013, respectively. The aggregate
projected benefit obligation and aggregate net liability (funded status) of our defined benefit plans as of May 31, 2015 was $1.0 billion and $599
million, respectively, and as of May 31, 2014 was $853 million and $436 million, respectively.
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