RESTRUCTURING ACTIVITIES

3 Months Ended

Aug. 31, 2016

Restructuring And Related Activities [Abstract]

7.	RESTRUCTURING ACTIVITIES

Fiscal 2017 Oracle Restructuring Plan

During the first quarter of fiscal 2017, our management approved, committed to and initiated plans to restructure and further improve efficiencies in our operations due to our recent acquisitions and certain other operational activities (2017 Restructuring Plan). The total estimated restructuring costs associated with the 2017 Restructuring Plan are up to $502 million and will be recorded to the restructuring expense line item within our consolidated statements of operations as they are incurred. We recorded $112 million of restructuring expenses in connection with the 2017 Restructuring Plan in the first quarter of fiscal 2017 and we expect to incur the majority of the estimated remaining $390 million through the end of fiscal 2018. Any changes to the estimates of executing the 2017 Restructuring Plan will be reflected in our future results of operations.

Summary of All Plans

	Accrued		Three Months Ended August 31, 2016											Accrued		Total Costs		Total Expected
(in millions)	May 31, 2016⁽²⁾		Initial Costs⁽³⁾		Adj. to Cost⁽⁴⁾			Cash Payments			Others⁽⁵⁾			August 31, 2016⁽²⁾		Accrued to Date		Program Costs
Fiscal 2017 Oracle Restructuring Plan⁽¹⁾
Cloud software and on-premise software	$	—	$	46	$	—		$	(22	)	$	—		$	24	$	46	$	204
Software license updates and product support		—		7		—			(4	)		—			3		7		41
Hardware business		—		30		—			(11	)		—			19		30		111
Services business		—		14		—			(6	)		—			8		14		63
General and administrative and other		—		15		—			(7	)		—			8		15		83
Total Fiscal 2017 Oracle Restructuring Plan	$	—	$	112	$	—		$	(50	)	$	—		$	62	$	112	$	502
Total other restructuring plans⁽⁶⁾	$	283	$	1	$	(14	)	$	(73	)	$	(1	)	$	196
Total restructuring plans	$	283	$	113	$	(14	)	$	(123	)	$	(1	)	$	258

⁽¹⁾	Restructuring costs recorded for individual line items primarily related to employee severance costs.

⁽²⁾	The balances at August 31, 2016 and May 31, 2016 included $235 million and $255 million, respectively, recorded in other current liabilities, and $23 million and $28 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 (primarily the Fiscal 2015 Oracle Restructuring Plan) 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 periodic impact to our condensed consolidated statements of operations was not significant.