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5. |
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). The total estimated restructuring costs associated with the 2022 Restructuring Plan are up to $353 million and will be recorded to the restructuring expense line item within our condensed consolidated statements of operations as they are incurred. We recorded $117 million of restructuring expenses in connection with the 2022 Restructuring Plan in the first nine months of fiscal 2022 and we expect to incur the majority of the estimated remaining $236 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
|
|
|
Accrued
May 31,
2021(2) |
|
|
Nine Months Ended February 28, 2022 |
|
|
Accrued
February 28,
2022(2) |
|
|
Total
Costs
Accrued
to Date |
|
|
Total
Expected
Program
Costs |
|
|
(in millions) |
|
|
|
Initial
Costs(3) |
|
|
Adj. to
Cost(4) |
|
|
Cash
Payments |
|
|
Others(5) |
|
|
|
|
|
|
|
|
2022 Restructuring Plan(1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cloud and license |
|
$ |
— |
|
|
$ |
69 |
|
|
$ |
(1 |
) |
|
$ |
(37 |
) |
|
$ |
(1 |
) |
|
$ |
30 |
|
|
$ |
68 |
|
|
$ |
247 |
|
|
Hardware |
|
|
— |
|
|
|
7 |
|
|
|
1 |
|
|
|
(4 |
) |
|
|
— |
|
|
|
4 |
|
|
|
8 |
|
|
|
26 |
|
|
Services |
|
|
— |
|
|
|
11 |
|
|
|
— |
|
|
|
(5 |
) |
|
|
— |
|
|
|
6 |
|
|
|
11 |
|
|
|
37 |
|
|
Other(6) |
|
|
— |
|
|
|
31 |
|
|
|
(1 |
) |
|
|
(19 |
) |
|
|
1 |
|
|
|
12 |
|
|
|
30 |
|
|
|
43 |
|
|
Total 2022 Restructuring Plan |
|
$ |
— |
|
|
$ |
118 |
|
|
$ |
(1 |
) |
|
$ |
(65 |
) |
|
$ |
— |
|
|
$ |
52 |
|
|
$ |
117 |
|
|
$ |
353 |
|
|
Total other restructuring plans(7) |
|
$ |
225 |
|
|
$ |
— |
|
|
$ |
(28 |
) |
|
$ |
(94 |
) |
|
$ |
(11 |
) |
|
$ |
92 |
|
|
|
|
|
|
|
|
|
|
Total restructuring plans |
|
$ |
225 |
|
|
$ |
118 |
|
|
$ |
(29 |
) |
|
$ |
(159 |
) |
|
$ |
(11 |
) |
|
$ |
144 |
|
|
|
|
|
|
|
|
|
|
(1) |
Restructuring costs recorded for individual line items primarily related to employee severance costs. |
|
(2) |
As of February 28, 2022 and May 31, 2021, 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 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) |
Represents employee related severance costs for functions that are not included within our operating segments and certain other restructuring costs. |
|
(7) |
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. |
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