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RESTRUCTURING ACTIVITIES

12 Months Ended

May 31, 2012

9. RESTRUCTURING ACTIVITIES

Sun Restructuring Plan

During the third quarter of fiscal 2010, our management approved, committed to and initiated a plan to restructure our operations due to our acquisition of Sun (the Sun Restructuring Plan) in order to improve the cost efficiencies in our merged operations. Our management subsequently amended the Sun Restructuring Plan to reflect additional actions that we expect to take to improve the cost efficiencies in our merged operations. The total estimated restructuring costs associated with the Sun Restructuring Plan consisted primarily of employee severance expenses, abandoned facilities obligations and contract termination costs and were recorded to the restructuring expense line item within our consolidated statements of operations as they were recognized. We recorded $215 million, $439 million and $342 million of net restructuring expenses in connection with the Sun Restructuring Plan in fiscal 2012, 2011 and 2010, respectively. The execution of the Sun Restructuring Plan is substantially complete as of the end of fiscal 2012. Any changes to the estimates of executing the Sun Restructuring Plan will be reflected in our future results of operations.

Summary of All Plans

Fiscal 2012 Activity

				Year Ended May 31, 2012
(in millions)		Accrued May 31, 2011(2)		Initial Costs(3)		Adj. to Cost(4)		Cash Payments		Others(5)		Accrued May 31, 2012(2)
Sun Restructuring Plan(1)
New software licenses		$	14	$	46	$	(8)	$	(41)	$	(2)	$	9
Software license updates and product support			19		31		(2)		(35)		(1)		12
Hardware systems business			10		34		1		(33)		—		12
Services			9		32		(2)		(25)		(2)		12
General and administrative and other			100		92		(9)		(129)		(1)		53
Total Sun Restructuring		$	152	$	235	$	(20)	$	(263)	$	(6)	$	98
Total other restructuring plans(6)		$	297	$	65	$	15	$	(122)	$	(16)	$	239
Total restructuring plans		$	449	$	300	$	(5)	$	(385)	$	(22)	$	337

Fiscal 2011 Activity
				Year Ended May 31, 2011
(in millions)		Accrued May 31, 2010		Initial Costs(3)		Adj. to Cost(4)		Cash Payments		Others(5)		Accrued May 31, 2011(2)
Sun Restructuring Plan(1)
New software licenses		$	5	$	67	$	(4)	$	(55)	$	1	$	14
Software license updates and product support			3		52		(1)		(34)		(1)		19
Hardware systems business			42		53		(3)		(83)		1		10
Services			8		49		(4)		(43)		(1)		9
General and administrative and other			29		226		4		(154)		(5)		100
Total Sun Restructuring		$	87	$	447	$	(8)	$	(369)	$	(5)	$	152
Total other restructuring plans(6)		$	459	$	57	$	(17)	$	(223)	$	21	$	297
Total restructuring plans		$	546	$	504	$	(25)	$	(592)	$	16	$	449

Fiscal 2010 Activity
				Year Ended May 31, 2010
(in millions)		Accrued May 31, 2009		Initial Costs(3)		Adj. to Cost(4)		Cash Payments		Others(5)		Accrued May 31, 2010
Sun Restructuring Plan(1)
New software licenses		$	—	$	6	$	—	$	(1)	$	—	$	5
Software license updates and product support			—		6		—		(3)		—		3
Hardware systems business			—		61		—		(19)		—		42
Services			—		11		—		(3)		—		8
General and administrative and other			—		258		—		(222)		(7)		29
Total Sun Restructuring		$	—	$	342	$	—	$	(248)	$	(7)	$	87
Total other restructuring plans(6)		$	389	$	292	$	(84)	$	(397)	$	259	$	459
Total restructuring plans		$	389	$	634	$	(84)	$	(645)	$	252	$	546

(1)	Restructuring costs recorded for individual line items presented related to employee severance costs except for general and administrative and other, which included $23 million, $97 million and $44 million recorded during fiscal 2012, 2011 and 2010, respectively, for facilities related restructuring and contract termination costs.
(2)	The balances at May 31, 2012 and 2011 included $178 million and $244 million recorded in other current liabilities, respectively, and $159 million and $205 million recorded in other non-current liabilities, respectively.
(3)	Costs recorded for the respective restructuring plans during the current 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 adjustments. In addition, includes accrued restructuring plan liabilities of $275 million that were assumed from our acquisition of Sun during fiscal 2010.
(6)	Other restructuring plans presented in the table 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 current fiscal year impact to our consolidated statements of operations was not significant.

- Definition

The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled.

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