RESTRUCTURING ACTIVITIES

12 Months Ended

May 31, 2016

Restructuring Activities [Abstract]

RESTRUCTURING ACTIVITIES

9. 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). Restructuring costs associated with the 2015 Restructuring Plan were recorded to the restructuring expense line item within our consolidated statements of operations as they were incurred. We recorded $462 million and $100 million of restructuring expenses in connection with the 2015 Restructuring Plan in fiscal 2016 and 2015, respectively. Actions pursuant to the 2015 Restructuring Plan were substantially complete as of May 31, 2016.

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 (2013 Restructuring Plan). Restructuring costs associated with the 2013 Restructuring Plan were recorded to the restructuring expense line item within our consolidated statements of operations as they were incurred. We recorded $119 million and $174 million of restructuring expenses in connection with the 2013 Restructuring Plan in fiscal 2015 and 2014, respectively. Actions pursuant to the 2013 Restructuring Plan were substantially complete as of the end of fiscal 2015.

Summary of All Plans

Fiscal 2016 Activity

			Year Ended May 31, 2016
(in millions)	Accrued May 31, 2015(2)		Initial Costs(3)		Adj. to Cost(4)		Cash Payments		Others(5)		Accrued May 31, 2016(2)
Fiscal 2015 Oracle Restructuring Plan(1)
Cloud software and on-premise software	$	11	$	95	$	(7)	$	(60)	$	2	$	41
Software license updates and product support		5		168		(1)		(69)		2		105
Hardware business		6		67		(8)		(43)		1		23
Services business		9		44		(4)		(35)		—		14
General and administrative and other		5		108		—		(56)		(2)		55
Total Fiscal 2015 Oracle Restructuring Plan	$	36	$	482	$	(20)	$	(263)	$	3	$	238
Total other restructuring plans(6)	$	84	$	2	$	(6)	$	(27)	$	(8)	$	45
Total restructuring plans	$	120	$	484	$	(26)	$	(290)	$	(5)	$	283

Fiscal 2015 Activity

			Year Ended May 31, 2015
(in millions)	Accrued May 31, 2014		Initial Costs(3)		Adj. to Cost(4)		Cash  Payments		Others(5)		Accrued May 31, 2015(2)
Fiscal 2015 Oracle Restructuring Plan(1)
Cloud software and on-premise software	$	—	$	26	$	1	$	(16)	$	—	$	11
Software license updates and product support		—		7		—		(2)		—		5
Hardware business		—		22		(2)		(13)		(1)		6
Services business		—		21		—		(12)		—		9
General and administrative and other		—		27		(2)		(20)		—		5
Total Fiscal 2015 Oracle Restructuring Plan	$	—	$	103	$	(3)	$	(63)	$	(1)	$	36
Total Fiscal 2013 Oracle Restructuring Plan(6)	$	61	$	128	$	(9)	$	(138)	$	(11)	$	31
Total other restructuring plans(6)	$	108	$	7	$	(19)	$	(43)	$	—	$	53
Total restructuring plans	$	169	$	238	$	(31)	$	(244)	$	(12)	$	120

Fiscal 2014 Activity

			Year Ended May 31, 2014
(in millions)	Accrued May 31, 2013		Initial Costs(3)		Adj. to Cost(4)		Cash Payments		Others(5)		Accrued May 31, 2014
Total Fiscal 2013 Oracle Restructuring Plan	$	71	$	197	$	(23)	$	(195)	$	11	$	61
Total other restructuring plans(6)	$	179	$	24	$	(15)	$	(58)	$	(22)	$	108
Total restructuring plans	$	250	$	221	$	(38)	$	(253)	$	(11)	$	169

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(1)	Restructuring costs recorded for individual line items primarily related to employee severance costs.
(2)	The balances at May 31, 2016 and 2015 included $255 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 tables above included condensed information for other Oracle-based restructuring plans and other restructuring 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 consolidated statements of operations was not significant.