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). The total estimated restructuring costs associated with the 2015 Restructuring Plan are up to $626 million and will be recorded to the restructuring expense line item within our consolidated statements of operations as they are incurred. We recorded $100 million of restructuring expenses in connection with the 2015 Restructuring Plan in fiscal 2015 and we expect to incur the majority of the estimated remaining $526 million through the end of fiscal 2016. Any changes to the estimates of executing the 2015 Restructuring Plan will be reflected in our future results of operations. 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, $174 million and $325 million of restructuring expenses in connection with the 2013 Restructuring Plan in fiscal 2015, 2014 and 2013, respectively. Actions pursuant to the 2013 Restructuring Plan were substantially complete as of May 31, 2015. Summary of All Plans Fiscal 2015 Activity | | | | Year Ended May 31, 2015 | | | | | | | (in millions) | | Accrued
May 31,
2014(2) | | Initial Costs(3) | | Adj. to Cost(4) | | Cash Payments | | Others(5) | | Accrued
May 31,
2015(2) | | Total Costs Accrued To Date | | Total Expected Program Costs | Fiscal 2015 Oracle Restructuring Plan(1) | | | | | | | | | | | | | | | | | | | | | | | | | New software licenses and cloud software subscriptions | | $ | — | | $ | 26 | | $ | 1 | | $ | (16) | | $ | — | | $ | 11 | | $ | 27 | | $ | 110 | Software license updates and product support | | | — | | | 7 | | | — | | | (2) | | | — | | | 5 | | | 7 | | | 209 | Hardware systems business | | | — | | | 22 | | | (2) | | | (13) | | | (1) | | | 6 | | | 20 | | | 65 | Services | | | — | | | 21 | | | — | | | (12) | | | — | | | 9 | | | 21 | | | 101 | General and administrative and other | | | — | | | 27 | | | (2) | | | (20) | | | — | | | 5 | | | 25 | | | 141 | Total Fiscal 2015 Oracle Restructuring Plan | | $ | — | | $ | 103 | | $ | (3) | | $ | (63) | | $ | (1) | | $ | 36 | | $ | 100 | | $ | 626 | 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(2) | Fiscal 2013 Oracle Restructuring Plan(1) | | | | | | | | | | | | | | | | | | | New software licenses and cloud software subscriptions | | $ | 16 | | $ | 57 | | $ | (8) | | $ | (55) | | $ | 2 | | $ | 12 | Software license updates and product support | | | 1 | | | 11 | | | — | | | (10) | | | 3 | | | 5 | Hardware systems business | | | 24 | | | 48 | | | (3) | | | (52) | | | 1 | | | 18 | Services | | | 18 | | | 39 | | | (7) | | | (39) | | | — | | | 11 | General and administrative and other | | | 12 | | | 42 | | | (5) | | | (39) | | | 5 | | | 15 | 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 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Fiscal 2013 Activity | | | | Year Ended May 31, 2013 | | | (in millions) | | Accrued
May 31,
2012 | | Initial Costs(3) | | Adj. to Cost(4) | | Cash Payments | | Others(5) | | Accrued
May 31,
2013 | Fiscal 2013 Oracle Restructuring Plan (1) | | | | | | | | | | | | | | | | | | | New software licenses and cloud software subscriptions | | $ | — | | $ | 85 | | $ | (8) | | $ | (60) | | $ | (1) | | $ | 16 | Software license updates and product support | | | — | | | 13 | | | (6) | | | (11) | | | 5 | | | 1 | Hardware systems business | | | — | | | 99 | | | (5) | | | (68) | | | (2) | | | 24 | Services | | | — | | | 72 | | | (5) | | | (50) | | | 1 | | | 18 | General and administrative and other | | | — | | | 81 | | | (1) | | | (52) | | | (16) | | | 12 | Total Fiscal 2013 Oracle Restructuring Plan | | $ | — | | $ | 350 | | $ | (25) | | $ | (241) | | $ | (13) | | $ | 71 | Total other restructuring plans(6) | | $ | 337 | | $ | 53 | | $ | (26) | | $ | (185) | | $ | — | | $ | 179 | Total restructuring plans | | $ | 337 | | $ | 403 | | $ | (51) | | $ | (426) | | $ | (13) | | $ | 250 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
__________ (1) | Restructuring costs recorded for individual line items primarily related to employee severance costs except for general and administrative and other, which also included $46 million recorded during fiscal 2013 for facilities related restructuring, contract termination and other costs. | (2) | The balances at May 31, 2015 and 2014 included $86 million and $100 million, respectively, recorded in other current liabilities, and $34 million and $69 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 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. | | |
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