RESTRUCTURING ACTIVITIES

12 Months Ended

May 31, 2022

Restructuring And Related Activities [Abstract]

8.	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 fourth quarter of fiscal 2022, 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 $392 million and will be recorded to the restructuring expense line item within our consolidated statements of operations as they are incurred. We recorded $223 million of restructuring expenses in connection with the 2022 Restructuring Plan in fiscal 2022 and we expect to incur the majority of the estimated remaining $169 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.

Fiscal 2019 Oracle Restructuring Plan

During fiscal 2019, 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 (2019 Restructuring Plan). In fiscal 2021, our management supplemented the 2019 Restructuring Plan to reflect additional actions that we expected to take. Restructuring costs associated with the 2019 Restructuring Plan were

recorded to the restructuring expense line item within our consolidated statements of operations as they were incurred. We recorded $430 million and $261 million of restructuring expenses in connection with the 2019 Restructuring Plan in fiscal 2021 and 2020, respectively. The total costs recorded in our consolidated statements of operations in connection with the 2019 Restructuring Plan were $1.2 billion. Actions pursuant to the 2019 Restructuring Plan were substantially complete as of May 31, 2021.

Summary of All Plans

Fiscal 2022 Activity

	Accrued May 31, 2021⁽²⁾		Year Ended May 31, 2022											Accrued May 31, 2022⁽²⁾		Total Costs Accrued to Date		Total Expected Program Costs
(in millions)	Accrued May 31, 2021⁽²⁾		Initial Costs⁽³⁾		Adj. to Cost⁽⁴⁾			Cash Payments			Others⁽⁵⁾			Accrued May 31, 2022⁽²⁾		Total Costs Accrued to Date		Total Expected Program Costs
Fiscal 2022 Oracle Restructuring Plan⁽¹⁾
Cloud and license	$	—	$	90	$	(2	)	$	(52	)	$	(2	)	$	34	$	88	$	184
Hardware		—		11		—			(4	)		—			7		11		22
Services		—		16		—			(7	)		—			9		16		32
Other		—		105		3			(29	)		(69	)		10		108		154
Total Fiscal 2022 Oracle Restructuring Plan	$	—	$	222	$	1		$	(92	)	$	(71	)	$	60	$	223	$	392
Total other restructuring plans⁽⁶⁾	$	225	$	—	$	(32	)	$	(109	)	$	(13	)	$	71
Total restructuring plans	$	225	$	222	$	(31	)	$	(201	)	$	(84	)	$	131

Fiscal 2021 Activity

	Accrued May 31, 2020		Year Ended May 31, 2021											Accrued May 31, 2021⁽²⁾
(in millions)	Accrued May 31, 2020		Initial Costs⁽³⁾		Adj. to Cost⁽⁴⁾			Cash Payments			Others⁽⁵⁾			Accrued May 31, 2021⁽²⁾
Fiscal 2019 Oracle Restructuring Plan⁽¹⁾
Cloud and license	$	75	$	225	$	(22	)	$	(171	)	$	12		$	119
Hardware		14		39		(2	)		(34	)		(1	)		16
Services		27		54		(4	)		(56	)		3			24
Other		22		137		3			(110	)		5			57
Total Fiscal 2019 Oracle Restructuring Plan	$	138	$	455	$	(25	)	$	(371	)	$	19		$	216
Total other restructuring plans⁽⁶⁾	$	13	$	2	$	(1	)	$	(5	)	$	—		$	9
Total restructuring plans	$	151	$	457	$	(26	)	$	(376	)	$	19		$	225

Fiscal 2020 Activity

	Accrued May 31, 2019		Year Ended May 31, 2020											Accrued May 31, 2020
(in millions)	Accrued May 31, 2019		Initial Costs⁽³⁾		Adj. to Cost⁽⁴⁾			Cash Payments			Others⁽⁵⁾			Accrued May 31, 2020
Fiscal 2019 Oracle Restructuring Plan⁽¹⁾
Cloud and license	$	72	$	140	$	(24	)	$	(112	)	$	(1	)	$	75
Hardware		18		28		(1	)		(31	)		—			14
Services		15		51		(2	)		(37	)		—			27
Other		108		59		10			(111	)		(44	)		22
Total Fiscal 2019 Oracle Restructuring Plan	$	213	$	278	$	(17	)	$	(291	)	$	(45	)	$	138
Total other restructuring plans⁽⁶⁾	$	49	$	—	$	(11	)	$	(8	)	$	(17	)	$	13
Total restructuring plans	$	262	$	278	$	(28	)	$	(299	)	$	(62	)	$	151

⁽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 May 31, 2022 and 2021, substantially all restructuring liabilities have been recorded in other current liabilities within our 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 tables 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 periods presented but for which the periodic impact to our consolidated statements of operations was not significant.