RESTRUCTURING ACTIVITIES

3 Months Ended

Aug. 31, 2022

Restructuring And Related Activities [Abstract]

6.	RESTRUCTURING ACTIVITIES

Fiscal 2022 Oracle Restructuring Plan

During fiscal 2022, our management approved, committed to and initiated plans to restructure and further improve efficiencies in our operations due to our acquisitions and certain other operational activities (2022 Restructuring Plan). In the first quarter of fiscal 2023, our management supplemented the 2022 Restructuring Plan to reflect additional actions that we expect to take. The total estimated restructuring costs associated with the 2022 Restructuring Plan are up to $888 million and will be recorded to the restructuring expense line item within our condensed consolidated statements of operations as they are incurred. We recorded $146 million and $55 million of restructuring expenses in connection with the 2022 Restructuring Plan in the first three months of fiscal 2023 and 2022, respectively. We expect to incur the majority of the estimated remaining $519 million through the end of fiscal 2023. Any changes to the estimates or timing of executing the 2022 Restructuring Plan will be reflected in our future results of operations.

Summary of All Plans

			Three Months Ended August 31, 2022											Accrued August 31, 2022⁽²⁾		Total Costs Accrued to Date		Total Expected Program Costs
(in millions)	Accrued May 31, 2022⁽²⁾		Initial Costs⁽³⁾		Adj. to Cost⁽⁴⁾			Cash Payments			Others⁽⁵⁾			Accrued August 31, 2022⁽²⁾		Total Costs Accrued to Date		Total Expected Program Costs
2022 Restructuring Plan⁽¹⁾
Cloud and license	$	34	$	73	$	(1	)	$	(52	)	$	(3	)	$	51	$	160	$	544
Hardware		7		4		—			(4	)		(1	)		6		15		32
Services		9		8		—			(6	)		(1	)		10		24		29
Other		10		59		3			(34	)		(2	)		36		170		283
Total 2022 Restructuring Plan	$	60	$	144	$	2		$	(96	)	$	(7	)	$	103	$	369	$	888
Total other restructuring plans⁽⁶⁾	$	71	$	—	$	(2	)	$	(8	)	$	(3	)	$	58
Total restructuring plans	$	131	$	144	$	—		$	(104	)	$	(10	)	$	161

⁽¹⁾	Restructuring costs recorded to each of the operating segments presented primarily related to employee severance costs. Other restructuring costs represented employee severance costs not related to our operating segments and certain other restructuring plan costs.

⁽²⁾	As of August 31, 2022 and May 31, 2022, substantially all restructuring liabilities have been recorded in other current liabilities within our condensed consolidated balance sheets.

⁽³⁾	Costs recorded for the respective restructuring plans during the 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 non-cash 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 periodic impact to our condensed consolidated statements of operations was not significant.