RESTRUCTURING ACTIVITIES

3 Months Ended

Aug. 31, 2015

Restructuring Activities [Abstract]

RESTRUCTURING ACTIVITIES

6. RESTRUCTURING ACTIVITIES

Fiscal 2015 Oracle Restructuring Plan

During the second quarter of fiscal 2015, our management approved, committed to and initiated plans to restructure and further improve efficiencies in our operations due to our acquisition of MICROS and certain other operational activities (2015 Restructuring Plan). The total estimated restructuring costs associated with the 2015 Restructuring Plan are up to $626 million and will be recorded to the restructuring expense line item within our consolidated statements of operations as they are incurred. We recorded $83 million of restructuring expenses in connection with the 2015 Restructuring Plan in the first quarter of fiscal 2016 and we expect to incur the majority of the estimated remaining $443 million through the end of fiscal 2016. Any changes to the estimates of executing the 2015 Restructuring Plan will be reflected in our future results of operations.

Summary of All Plans

			Three Months Ended August 31, 2015
(in millions)	Accrued May 31, 2015(2)		Initial Costs(3)		Adj. to Costs(4)		Cash Payments		Others(5)		Accrued August 31, 2015(2)		Total Costs Accrued to Date		Total Expected Program Costs
Fiscal 2015 Oracle Restructuring Plan(1)
Cloud software and on-premise software	$	11	$	31	$	(1)	$	(21)	$	—	$	20	$	57	$	110
Software license updates and product support		5		13		—		(8)		1		11		20		209
Hardware business		6		16		—		(10)		1		13		36		65
Services business		9		10		(1)		(9)		—		9		30		101
General and administrative and other		5		15		—		(7)		—		13		40		141
Total Fiscal 2015 Oracle Restructuring Plan	$	36	$	85	$	(2)	$	(55)	$	2	$	66	$	183	$	626
Total other restructuring plans(6)	$	84	$	—	$	—	$	(9)	$	—	$	75
Total restructuring plans	$	120	$	85	$	(2)	$	(64)	$	2	$	141

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(1)	Restructuring costs recorded for individual line items primarily related to employee severance costs.
(2)	The balances at August 31, 2015 and May 31, 2015 included $109 million and $86 million, respectively, recorded in other current liabilities, and $32 million and $34 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.