Oracle 2014 Annual Report Download - page 58

Table of Contents
acquired products and services. The contributions of our acquisitions to certain of our operating segments’ revenues, margins and expenses for
each of the respective period comparisons generally are not provided in our discussions, as they either were not separately identifiable due to the
integration of these businesses and operating segments into our existing operations, and/or were insignificant to our results of operations during
the periods presented.
We caution readers that, while pre- and post-acquisition comparisons, as well as any quantified amounts themselves, may provide indications of
general trends, any 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 effects 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, 2014, 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, 2015 and 2014, our financial statements would reflect reported revenues of $1.08 million in fiscal 2015 (using 1.08 as
the month-end average exchange rate for the period) and $1.36 million in fiscal 2014 (using 1.36 as the month-end average exchange rate for the
period). The constant currency presentation, however, would translate the fiscal 2015 results using the fiscal 2014 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 software license 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 SaaS and PaaS 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.