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RESTRUCTURING ACTIVITIES

3 Months Ended

Aug. 31, 2013

7. RESTRUCTURING ACTIVITIES

Fiscal 2013 Oracle Restructuring Plan

During the first quarter of fiscal 2013, our management approved, committed to and initiated plans to restructure and further improve efficiencies in our operations (the 2013 Restructuring Plan). Our management subsequently amended the 2013 Restructuring Plan in the third quarter of fiscal 2013 and in the first quarter of fiscal 2014 to reflect additional actions that we expect to take. The total estimated restructuring costs associated with the 2013 Restructuring Plan are $705 million and will be recorded to the restructuring expense line item within our consolidated statements of operations as they are incurred. We recorded $54 million of restructuring expenses in connection with the 2013 Restructuring Plan in the first quarter of fiscal 2014 and we expect to incur the majority of the estimated remaining $326 million through the remainder of fiscal 2014. Any changes to the estimates of executing the 2013 Restructuring Plan will be reflected in our future results of operations.

Summary of All Plans

			Three Months Ended August 31, 2013
(in millions)	Accrued May 31, 2013(2)		Initial Costs(3)		Adj. to Cost(4)			Cash Payments		Others(5)			Accrued August 31, 2013(2)		Total Costs Accrued to Date		Total Expected Program Costs
Fiscal 2013 Oracle Restructuring Plan(1)
New software licenses and cloud software subscriptions	$	16	$	22		$	—	$	(20)		$	—	$	18	$	99		$	158
Software license updates and product support		1		3			—		(3)			—		1		10			24
Hardware systems business		24		16			(2)		(21)			1		18		108			238
Services		18		12			(1)		(12)			—		17		78			166
General and administrative and other		12		8			(4)		(8)			(1)		7		84			119
Total Fiscal 2013 Oracle Restructuring Plan	$	71	$	61		$	(7)	$	(64)		$	—	$	61	$	379		$	705
Total other restructuring plans(6)	$	179	$	6		$	(4)	$	(13)		$	—	$	168
Total restructuring plans	$	250	$	67		$	(11)	$	(77)		$	—	$	229

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(1)	Restructuring costs recorded for individual line items presented related to employee severance costs.
(2)	The balances at August 31, 2013 and May 31, 2013 included $150 million and $160 million, respectively, recorded in other current liabilities, and $79 million and $90 million, respectively, recorded in other non-current liabilities.
(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.
(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 period presented but for which the current 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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