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RESTRUCTURING ACTIVITIES
 3 Months Ended
Aug. 31, 2023
Restructuring and Related Activities [Abstract]  
RESTRUCTURING ACTIVITIES
5.
RESTRUCTURING ACTIVITIES

Fiscal 2024 Oracle Restructuring Plan

During the first quarter of fiscal 2024, 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 (2024 Restructuring Plan). The total estimated restructuring costs associated with the 2024 Restructuring Plan are up to $609 million and will be recorded to the restructuring expense line item within our condensed consolidated statements of operations as they are incurred. We recorded $153 million of restructuring expenses in connection with the 2024 Restructuring Plan in the first three months of fiscal 2024 and we expect to incur the majority of the estimated remaining $456 million through the end of fiscal 2025. Any changes to the estimates of executing the 2024 Restructuring Plan will be reflected in our future results of operations.

Summary of All Plans

 

 

 

Accrued

 

 

Three Months Ended August 31, 2023

Accrued

 

 

Total
Costs

 

 

Total
Expected

 

(in millions)

 

May 31,
2023(2)

 

 

Initial
Costs(3)

 

 

Adj. to
Cost(4)

 

 

Cash
Payments

 

 

August 31,
2023(2)

 

 

Accrued
to Date

 

 

Program
Costs

 

2024 Restructuring Plan(1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cloud and license

 

$

—

 

 

$

79

 

 

$

—

 

 

$

(23

)

 

$

56

 

 

$

79

 

 

$

184

 

Hardware

 

 

—

 

 

 

2

 

 

 

—

 

 

 

(1

)

 

 

1

 

 

 

2

 

 

 

5

 

Services

 

 

—

 

 

 

24

 

 

 

—

 

 

 

(13

)

 

 

11

 

 

 

24

 

 

 

187

 

Other

 

 

—

 

 

 

48

 

 

 

—

 

 

 

(22

)

 

 

26

 

 

 

48

 

 

 

233

 

Total 2024 Restructuring Plan

 

$

—

 

 

$

153

 

 

$

—

 

 

$

(59

)

 

$

94

 

 

$

153

 

 

$

609

 

Total other restructuring plans(5)

 

$

199

 

 

$

—

 

 

$

(15

)

 

$

(48

)

 

$

136

 

 

 

 

 

 

 

Total restructuring plans

 

$

199

 

 

$

153

 

 

$

(15

)

 

$

(107

)

 

$

230

 

 

 

 

 

 

 

 

(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 August 31, 2023 and May 31, 2023, substantially all restructuring liabilities have been recorded in other current liabilities within our condensed 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)
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 condensed consolidated statements of operations was not significant.