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RESTRUCTURING ACTIVITIES
 6 Months Ended
Nov. 30, 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 $187 million of restructuring expenses in connection with the 2015 Restructuring Plan in the first half of fiscal 2016 and we expect to incur the majority of the estimated remaining $339 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

 

 

 

 

 

 

 

 

Total

 

Total

 

 

Accrued

 

Six Months Ended November 30, 2015 

 

Accrued

 

Costs

 

Expected

 

 

May 31,

 

Initial

 

Adj. to

 

Cash

 

 

 

November 30,

 

Accrued

 

Program

(in millions)

 

2015(2)

 

Costs(3)

 

Cost(4)

 

Payments

 

Others(5)

 

2015(2)

 

to Date

 

Costs

Fiscal 2015 Oracle Restructuring Plan(1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cloud software and on-premise software

 

$

11

 

$

49

 

$

(3)

 

$

(36)

 

$

           2

 

$

23

 

$

73

 

$

110

Software license updates and product support

 

 

5

 

 

42

 

 

            2

 

 

(27)

 

 

         —

 

 

22

 

 

51

 

 

209

Hardware business

 

 

6

 

 

35

 

 

(5)

 

 

(19)

 

 

          (1)

 

 

16

 

 

50

 

 

65

Services business

 

 

9

 

 

20

 

 

(2)

 

 

(16)

 

 

         —

 

 

11

 

 

39

 

 

101

General and administrative and other

 

 

5

 

 

47

 

 

            2

 

 

(29)

 

 

(2)

 

 

23

 

 

74

 

 

141

Total Fiscal 2015 Oracle Restructuring Plan

 

$

36

 

$

193

 

$

(6)

 

$

(127)

 

$

(1)

 

$

95

 

$

287

 

$

626

Total other restructuring plans(6)

 

$

84

 

$

—

 

$

          (9)

 

$

(17)

 

$

(8)

 

$

50

 

 

 

 

 

 

Total restructuring plans

 

$

120

 

$

193

 

$

        (15)

 

$

(144)

 

$

(9)

 

$

145

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

_____________________

(1)

Restructuring costs recorded for individual line items primarily related to employee severance costs.

(2)

The balances at November 30, 2015 and May 31, 2015 included $117 million and $86 million, respectively, recorded in other current liabilities, and $28 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 condensed consolidated statements of operations was not significant.