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RESTRUCTURING ACTIVITIES
 12 Months Ended
May 31, 2023
Restructuring And Related Activities [Abstract]  
RESTRUCTURING ACTIVITIES
8.
RESTRUCTURING ACTIVITIES

Fiscal 2022 Oracle Restructuring Plan

During fiscal 2022, our management approved, committed to and initiated plans to restructure and further improve efficiencies in our operations due to our acquisitions and certain other operational activities (2022 Restructuring Plan). In fiscal 2023, our management supplemented the 2022 Restructuring Plan to reflect additional actions that we expected to take. Restructuring costs associated with the 2022 Restructuring Plan were recorded to the restructuring expense line item within our consolidated statements of operations as they were incurred. We recorded $493 million and $223 million of restructuring expenses in connection with the 2022 Restructuring Plan in

fiscal 2023 and 2022, respectively. The total costs recorded to date in our consolidated statements of operations in connection with the 2022 Restructuring Plan were $716 million. Actions pursuant to the 2022 Restructuring Plan were substantially complete as of May 31, 2023.

Fiscal 2019 Oracle Restructuring Plan

During fiscal 2019, our management approved, committed to and initiated plans to restructure and further improve efficiencies in our operations due to our acquisitions and certain other operational activities (2019 Restructuring Plan). In fiscal 2021, our management supplemented the 2019 Restructuring Plan to reflect additional actions that we expected to take. Restructuring costs associated with the 2019 Restructuring Plan were recorded to the restructuring expense line item within our consolidated statements of operations as they were incurred. We recorded $430 million of restructuring expenses in connection with the 2019 Restructuring Plan in fiscal 2021. The total costs recorded in our consolidated statements of operations in connection with the 2019 Restructuring Plan were $1.2 billion. Actions pursuant to the 2019 Restructuring Plan were substantially complete as of May 31, 2021.

Summary of All Plans

Fiscal 2023 Activity

 

 

 

Accrued

 

 

Year Ended May 31, 2023

 

 

Accrued

 

(in millions)

 

May 31,
2022(2)

 

 

Initial
Costs(3)

 

 

Adj. to
Cost(4)

 

 

Cash
Payments

 

 

Others(5)

 

 

May 31,
2023(2)

 

Fiscal 2022 Oracle Restructuring Plan(1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cloud and license

 

$

34

 

 

$

288

 

 

$

(6

)

 

$

(218

)

 

$

1

 

 

$

99

 

Hardware

 

 

7

 

 

 

18

 

 

 

—

 

 

 

(18

)

 

 

(1

)

 

 

6

 

Services

 

 

9

 

 

 

28

 

 

 

—

 

 

 

(19

)

 

 

(1

)

 

 

17

 

Other

 

 

10

 

 

 

162

 

 

 

3

 

 

 

(141

)

 

 

1

 

 

 

35

 

Total Fiscal 2022 Oracle Restructuring Plan

 

$

60

 

 

$

496

 

 

$

(3

)

 

$

(396

)

 

$

—

 

 

$

157

 

Total other restructuring plans(6)

 

$

71

 

 

$

1

 

 

$

(4

)

 

$

(22

)

 

$

(4

)

 

$

42

 

Total restructuring plans

 

$

131

 

 

$

497

 

 

$

(7

)

 

$

(418

)

 

$

(4

)

 

$

199

 

 

Fiscal 2022 Activity

 

 

 

Accrued

 

 

Year Ended May 31, 2022

 

 

Accrued

 

(in millions)

 

May 31,
2021

 

 

Initial
Costs(3)

 

 

Adj. to
Cost(4)

 

 

Cash
Payments

 

 

Others(5)

 

 

May 31,
2022(2)

 

Fiscal 2022 Oracle Restructuring Plan(1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cloud and license

 

$

—

 

 

$

90

 

 

$

(2

)

 

$

(52

)

 

$

(2

)

 

$

34

 

Hardware

 

 

—

 

 

 

11

 

 

 

—

 

 

 

(4

)

 

 

—

 

 

 

7

 

Services

 

 

—

 

 

 

16

 

 

 

—

 

 

 

(7

)

 

 

—

 

 

 

9

 

Other

 

 

—

 

 

 

105

 

 

 

3

 

 

 

(29

)

 

 

(69

)

 

 

10

 

Total Fiscal 2022 Oracle Restructuring Plan

 

$

—

 

 

$

222

 

 

$

1

 

 

$

(92

)

 

$

(71

)

 

$

60

 

Total other restructuring plans(6)

 

$

225

 

 

$

—

 

 

$

(32

)

 

$

(109

)

 

$

(13

)

 

$

71

 

Total restructuring plans

 

$

225

 

 

$

222

 

 

$

(31

)

 

$

(201

)

 

$

(84

)

 

$

131

 

 

Fiscal 2021 Activity

 

 

 

Accrued

 

 

Year Ended May 31, 2021

 

 

Accrued

 

(in millions)

 

May 31,
2020

 

 

Initial
Costs(3)

 

 

Adj. to
Cost(4)

 

 

Cash
Payments

 

 

Others(5)

 

 

May 31,
2021

 

Fiscal 2019 Oracle Restructuring Plan(1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cloud and license

 

$

75

 

 

$

225

 

 

$

(22

)

 

$

(171

)

 

$

12

 

 

$

119

 

Hardware

 

 

14

 

 

 

39

 

 

 

(2

)

 

 

(34

)

 

 

(1

)

 

 

16

 

Services

 

 

27

 

 

 

54

 

 

 

(4

)

 

 

(56

)

 

 

3

 

 

 

24

 

Other

 

 

22

 

 

 

137

 

 

 

3

 

 

 

(110

)

 

 

5

 

 

 

57

 

Total Fiscal 2019 Oracle Restructuring Plan

 

$

138

 

 

$

455

 

 

$

(25

)

 

$

(371

)

 

$

19

 

 

$

216

 

Total other restructuring plans(6)

 

$

13

 

 

$

2

 

 

$

(1

)

 

$

(5

)

 

$

—

 

 

$

9

 

Total restructuring plans

 

$

151

 

 

$

457

 

 

$

(26

)

 

$

(376

)

 

$

19

 

 

$

225

 

 

(1)
Restructuring costs recorded to each of the operating segments presented primarily related to employee severance costs. Other restructuring costs represented employee severance costs not related to our operating segments and certain other restructuring plan costs.
(2)
As of May 31, 2023 and 2022, substantially all restructuring liabilities have been recorded in other current liabilities within our consolidated balance sheets.
(3)
Costs recorded for the respective restructuring plans during the period presented.
(4)
All plan adjustments were changes in estimates whereby increases and decreases in costs were generally recorded to operating expenses in the period of adjustments.
(5)
Represents foreign currency translation and certain other non-cash adjustments.
(6)
Other restructuring plans presented in the tables above included condensed information for other Oracle based plans and other plans associated with certain of our acquisitions whereby we continued to make cash outlays to settle obligations under these plans during the periods presented but for which the periodic impact to our consolidated statements of operations was not significant.