Form 11-K
Table of Contents

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

 

FORM 11-K

 

 

(Mark One)

x ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended December 31, 2015

OR

 

¨ TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                      to                     

Commission file number 001-35992

 

 

 

A. Full title of the plan and the address of the plan, if different from that of the issuer named below:

ORACLE CORPORATION

401(k) SAVINGS AND INVESTMENT PLAN

 

B. Name of issuer of the securities held pursuant to the plan and the address of its principal executive office:

ORACLE CORPORATION

500 Oracle Parkway

Redwood City, California 94065

 

 

 


Table of Contents

Oracle Corporation

401(k) Savings and Investment Plan

Financial Statements and Supplemental Schedule

As of December 31, 2015 and 2014 and for the Year Ended December 31, 2015

Table of Contents

 

Report of Sensiba San Filippo LLP, Independent Registered Public Accounting Firm

     1   

Financial Statements:

  

Statements of Net Assets Available for Benefits

     2   

Statement of Changes in Net Assets Available for Benefits

     3   

Notes to Financial Statements

     4   

Supplemental Schedule:

  

Schedule H, Line 4(i)Schedule of Assets (Held at End of Year)

     13   

Signature

     21   

Index to Exhibits

     22   

Exhibit 23.01

  


Table of Contents

Report of Sensiba San Filippo LLP, Independent Registered Public Accounting Firm

To the participants and Plan Committee of the Oracle Corporation 401(k) Savings and Investment Plan

We have audited the accompanying statements of net assets available for benefits of the Oracle Corporation 401(k) Savings and Investment Plan (the Plan) as of December 31, 2015 and 2014, and the related statement of changes in net assets available for benefits for the year ended December 31, 2015. These financial statements are the responsibility of the Plan’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the net assets available for benefits of the Plan as of December 31, 2015 and 2014, and the changes in net assets available for benefits for the year ended December 31, 2015, in conformity with accounting principles generally accepted in the United States of America.

The supplemental information in the accompanying schedule of assets (held at end of year) as of December 31, 2015 has been subjected to audit procedures performed in conjunction with the audit of the Plan’s financial statements. The supplemental information is the responsibility of the Plan’s management. Our audit procedures included determining whether the supplemental information reconciles to the financial statements or the underlying accounting and other records, as applicable, and performing procedures to test the completeness and accuracy of the information presented in the supplemental information. In forming our opinion on the supplemental information, we evaluated whether the supplemental information, including its form and content, is presented in conformity with the Department of Labor’s Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. In our opinion, the supplemental information in the accompanying schedule is fairly stated in all material respects in relation to the financial statements as a whole.

 

/s/ SENSIBA SAN FILIPPO LLP
San Mateo, California
May 13, 2016

 

1


Table of Contents

Oracle Corporation

401(k) Savings and Investment Plan

Statements of Net Assets Available for Benefits

As of December 31, 2015 and 2014

(in thousands)

 

     December 31,  
     2015     2014  

Assets

    

Cash

   $ 12,225      $ 5,239   

Investments, at fair value

     11,870,692        12,001,740   

Receivables:

    

Notes receivable from participants

     91,362        89,077   

Participant contributions

     13,229        12,163   

Employer contributions

     4,774        4,497   

Other receivables

     4,930        4,241   
  

 

 

   

 

 

 

Total receivables

     114,295        109,978   
  

 

 

   

 

 

 

Total assets

     11,997,212        12,116,957   
  

 

 

   

 

 

 

Liabilities

    

Excess deferrals due to participants

     154        76   

Other liabilities

     4,232        2,481   
  

 

 

   

 

 

 

Total liabilities

     4,386        2,557   
  

 

 

   

 

 

 

Net assets reflecting investments, at fair value

     11,992,826        12,114,400   

Adjustment from fair value to contract value for fully benefit responsive contracts of the Galliard Stable Value Fund

     (2,683     (9,044
  

 

 

   

 

 

 

Net assets available for benefits

   $ 11,990,143      $ 12,105,356   
  

 

 

   

 

 

 

See notes to financial statements.

 

2


Table of Contents

Oracle Corporation

401(k) Savings and Investment Plan

Statement of Changes in Net Assets Available for Benefits

For the Year Ended December 31, 2015

(in thousands)

 

Additions

  

Interest, dividends and other income

   $ 187,203   

Net depreciation in fair values of investments

     (384,374
  

 

 

 

Total investment losses, net

     (197,171
  

 

 

 

Contributions:

  

Participants

     561,534   

Employer

     149,360   

Rollovers

     91,815   
  

 

 

 

Total contributions

     802,709   
  

 

 

 

Total additions, net

     605,538   
  

 

 

 

Deductions

  

Benefits paid to participants

     720,188   

Administrative expenses

     563   
  

 

 

 

Total deductions

     720,751   
  

 

 

 

Net decrease

     (115,213

Net assets available for benefits at beginning of year

     12,105,356   
  

 

 

 

Net assets available for benefits at end of year

   $ 11,990,143   
  

 

 

 

See notes to financial statements.

 

3


Table of Contents

Oracle Corporation

401(k) Savings and Investment Plan

Notes to Financial Statements

December 31, 2015

1. Description of the Plan

The following description of the Oracle Corporation 401(k) Savings and Investment Plan (Plan) provides only general information. Participants should refer to the Plan document for a more complete description of the Plan’s provisions.

General

The Plan is a defined contribution plan originally established in 1986 that has since been amended and for which Oracle Corporation (Oracle) is the current sponsor. The Plan was established for the purpose of providing retirement benefits for the U.S. employees of Oracle and its subsidiaries. The Plan is intended to qualify as a profit sharing plan under Section 401(a) of the Internal Revenue Code of 1986, as amended (the Code), with a salary reduction feature qualified under Section 401(k) of the Code. The Plan is subject to the provisions of the Employee Retirement Income Security Act of 1974, as amended (ERISA). The Plan is administered by the 401(k) Committee, members of which are appointed by the Compensation Committee of Oracle’s Board of Directors or the Executive Vice President, Human Resources. Fidelity Management Trust Company is the directed trustee of the Plan; Fidelity Investments Institutional Operations Company, Inc. (Fidelity) serves as the record keeper to maintain the individual accounts of each of the Plan’s participants.

Eligibility

All employees regularly scheduled to work a minimum of 20 hours per week or 1,000 hours in a Plan year on the domestic payroll of Oracle and its subsidiaries that have adopted the Plan are eligible to participate in the Plan as of the first date, or any succeeding entry date following the date the employee is credited with one hour of service with Oracle. However, the following employees or classes of employees are not eligible to participate: (i) employees whose compensation and conditions of employment are subject to determination by collective bargaining; (ii) employees who are non-resident aliens and who received no earned income (within the meaning of the Code) from Oracle; (iii) workers who are performing services at an Oracle facility as an employee of a third-party entity that is not an employment agency; (iv) employees of employment agencies; and (v) persons who are not classified as employees for tax purposes.

Contributions

Each year, participants may contribute up to 40% of their eligible compensation as defined by the Plan document. Annual participant contribution amounts are limited to $18,000 of salary deferrals for the year ended December 31, 2015 ($24,000 for participants 50 years old and older), as determined by the Internal Revenue Service (IRS). Salary deferrals consist of pre-tax and/or Roth 401(k) contributions.

Oracle matches 50% of an active participant’s salary deferrals up to a maximum deferral of 6% of compensation for the pay period, with maximum aggregate matching of $5,100 in any calendar year. Oracle has the right, under the Plan, to discontinue or modify its matching contributions at any time. Participants may also contribute amounts representing distributions from other qualified plans. All of Oracle’s matching contributions are made in cash on a pre-tax basis.

Investment Options

Participants direct the investment of their contributions and Oracle’s matching contributions into various investment options offered by the Plan. The Plan currently offers investments in Oracle’s common stock, common/collective trust funds, mutual funds, separately managed account funds (including a stable value fund)

 

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Table of Contents

Oracle Corporation

401(k) Savings and Investment Plan

Notes to Financial Statements—(Continued)

December 31, 2015

 

and Brokerage Link. Brokerage Link balances consist of the mutual funds offered by the Plan, as well as mutual funds offered by other registered investment companies, common stock or other investment products.

Participant Accounts

Each participant’s account is credited with the participant’s and Oracle’s contributions and allocations of Plan earnings. All amounts in participant accounts are participant directed.

Vesting

All elective contributions made by participants and earnings on those contributions are 100% vested at all times. Participants’ vesting in Oracle’s matching contributions is based on years of service. Participants are 25% vested after one year of service and vest an additional 25% on each successive service anniversary date, becoming 100% vested after four years of service.

Participants forfeit the nonvested portion of their accounts in the Plan upon termination of employment with Oracle. Forfeited balances of terminated participants’ nonvested accounts may be used at Oracle’s discretion, as outlined in the Plan, to reduce its matching contribution obligations. During the year ended December 31, 2015, Oracle used $4,900,000 of forfeited balances to reduce its matching contribution obligations. The amounts of unallocated forfeitures at December 31, 2015 and 2014 were $936,000 and $855,000, respectively.

Notes Receivable from Participants

Participants may borrow from their fund accounts a minimum of $1,000 and up to a maximum of $50,000 or 50% of their vested account balance, whichever is less. Loan terms may not exceed five years unless the loan is used to purchase a participant’s principal residence, in which case repayment terms may not exceed 10 years. The loans are secured by the balance in the participant’s account and bear interest at a rate commensurate with local prevailing lending rates determined by the 401(k) Committee. Principal and interest is paid ratably through payroll deductions, and participants may elect to submit additional payments outside of payroll deductions in order to reduce principal loan balances on an accelerated basis. Loans are generally due in full within 60 days of termination with Oracle unless the participant arranges for loan repayments to continue via monthly debit from a checking or savings account in a bank located in the United States.

Payment of Benefits

Upon termination of service, death, disability, or normal or early retirement, participants may elect to receive a lump-sum amount equal to the vested value of their account or may waive receipt of a lump sum benefit and elect to receive monthly, quarterly or annual installments, or may request a rollover from the Plan to another eligible retirement plan. Failure of a participant to make an election of one of these options within 60 days is deemed to be an election to defer commencement of payment. If the participant’s account is valued at $1,000 or less, the amount is distributed in a lump sum. Distributions of investments in Oracle’s common stock may be taken in the form of common stock. Hardship withdrawals are permitted if certain criteria are met.

Investment Management Fees and Operating Expenses

Investment management fees and operating expenses charged to the Plan for investments in the various funds are deducted from income earned on a daily basis and are reflected as a component of net depreciation in fair values of investments.

 

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Table of Contents

Oracle Corporation

401(k) Savings and Investment Plan

Notes to Financial Statements—(Continued)

December 31, 2015

 

Administrative Expenses

Administrative expenses are borne by Oracle, except for fees related to administration of participant loans and certain withdrawal transactions, which are deducted from the applicable participants’ accounts. Oracle, at its discretion, may choose to utilize available revenue sharing (based on a revenue sharing agreement between Oracle and Fidelity) to pay for reasonable expenses related to the administration of the Plan.

Plan Termination

Although it has not expressed any intent to do so, Oracle has the right, under provisions of the Plan, to terminate the Plan, subject to the provisions of ERISA. In the event of the Plan’s termination, participants will become 100% vested in their accounts.

2. Summary of Significant Accounting Policies

Basis of Accounting and Presentation

The accompanying financial statements of the Plan are prepared on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States (U.S. GAAP).

Investments Valuation and Income Recognition

The Plan’s investments are generally stated at their fair values with the exception of the Galliard Stable Value Fund (a separately-managed account fund investment), which is stated at its fair value with the related adjustment amount to its contract value in the statements of net assets available for benefits at December 31, 2015 and 2014. The statement of changes in net assets available for benefits is prepared on a contract value basis. The shares of registered investment companies (mutual funds) are valued at quoted market prices. The money market funds are valued at cost plus accrued interest, which approximated fair values. Common stock, including Oracle’s common stock, is traded on a national securities exchange and is valued at the last reported sales price on the last day of the Plan year. The valuation techniques used to measure the fair values of the stable value fund and common/collective trust funds with significant balances as of December 31, 2015 are included in Note 4 below.

Purchases and sales of securities are recorded on a trade-date basis. Interest income is recorded on an accrual basis. Dividends are recorded on the ex-dividend date.

The Oracle Stock Fund (Fund) is tracked on a unitized basis, which allows for daily trades. The Fund consists of Oracle common stock and investment in the Fidelity Institutional Money Market Fund sufficient to meet the Fund’s daily cash needs. The value of a unit reflects the combined market value of Oracle common stock and the cash investments held by the Fund. At December 31, 2015, 2,573,027 units were outstanding with a value of $270.57 per unit. At December 31, 2014, 2,609,383 units were outstanding with a value of $328.16 per unit.

Fair Value Measurements

The Plan performs fair value measurements in accordance with Financial Accounting Standards Board (FASB) Accounting Standards Codification 820, Fair Value Measurement (ASC 820). Refer to Note 3 for the fair value measurement disclosures associated with the Plan’s investments.

 

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Table of Contents

Oracle Corporation

401(k) Savings and Investment Plan

Notes to Financial Statements—(Continued)

December 31, 2015

 

Use of Estimates

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates.

Risks and Uncertainties

The Plan provided for various investment options in common stock, registered investment companies (mutual funds), common/collective trusts, separately-managed account funds (including a stable value fund) and short-term investments. The Plan’s exposure to credit losses in the event of nonperformance of investments is limited to the carrying value of such investments. Investment securities, in general, are exposed to various risks, such as risk of foreign currency fluctuations relative to the U.S. Dollar, interest rate risk, credit risk, and overall market volatility risk. During the year ended December 31, 2015, net depreciation in fair values of investments totaled $384 million. Due to the level of risk associated with certain investment securities, it is reasonably possible that changes in the values of investment securities will occur in the near term and that such changes could materially affect the amounts reported in the statements of net assets available for benefits, participant account balances and the statement of changes in net assets available for benefits.

Recent Accounting Pronouncements

In July 2015, the FASB issued Accounting Standards Update No. 2015-12, Plan Accounting: Defined Benefit Pension Plans (Topic 960), Defined Contribution Pension Plans (Topic 962), Health and Welfare Benefit Plans (Topic 965): (Part I) Fully Benefit-Responsive Investment Contracts, (Part II) Plan Investment Disclosures, (Part III) Measurement Date Practical Expedient (ASU 2015-12). ASU 2015-12 Part I designates contract value as the only required measure for fully benefit-responsive investment contracts. ASU 2015-12 Part II simplifies the investment disclosure requirements under existing U.S. GAAP, including eliminating the disclosure of (1) individual investments that represent five percent or more of net assets available for benefits and (2) the net appreciation or depreciation for investments by general type. ASU 2015-12 Part III does not apply to the Plan. The amendments in ASU 2015-12 applicable to the Plan are effective retrospectively for the year ending December 31, 2016 with early adoption permitted. The 401(k) Committee is currently evaluating the impact of the pending adoption of ASU 2015-12 on the Plan’s financial statements.

In May 2015, the FASB issued Accounting Standards Update No. 2015-07, Fair Value Measurement (Topic 820): Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent) (ASU 2015-07). ASU 2015-07 removes the requirement to include investments in the fair value hierarchy for which fair value is measured using the net asset value per share practical expedient under ASC 820. ASU 2015-07 is effective for the Plan retrospectively for the year ending December 31, 2016 with early adoption permitted. The 401(k) Committee is currently evaluating the impact of the pending adoption of ASU 2015-07 on the Plan’s financial statements.

3. Fair Value Measurements

The Plan performs fair value measurements in accordance with the guidance provided by ASC 820. ASC 820 defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required to be recorded at their fair values, the Plan considers the principal

 

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Table of Contents

Oracle Corporation

401(k) Savings and Investment Plan

Notes to Financial Statements—(Continued)

December 31, 2015

 

or most advantageous market in which it would transact and considers assumptions that market participants would use when pricing the assets or liabilities, such as inherent risk, transfer restrictions, and risk of nonperformance.

ASC 820 establishes a fair value hierarchy that requires the Plan to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. An asset’s or a liability’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. ASC 820 establishes three levels of inputs that may be used to measure fair value:

 

    Level 1: quoted prices in active markets for identical assets or liabilities;

 

    Level 2: inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices in active markets for similar assets or liabilities, quoted prices for identical or similar assets or liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; or

 

    Level 3: unobservable inputs that are supported by little or no market activity and that are significant to the fair values of the assets or liabilities.

Investments Measured at Fair Value on a Recurring Basis

Investments measured at fair value on a recurring basis consisted of the following types of instruments (Level 1 and 2 inputs are defined above):

 

    December 31, 2015     December 31, 2014  
    Fair Value Measurements
Using Input Types
          Fair Value Measurements
Using Input Types
       

(in thousands)

  Level 1     Level 2     Total     Level 1     Level 2     Total  

Money market funds

  $ 172,288      $ —        $ 172,288      $ 162,447      $ —        $ 162,447   

Oracle Corporation and other common stock

    1,502,351        —          1,502,351        1,732,274        —          1,732,274   

Mutual funds

    4,180,038        —          4,180,038        4,863,622        —          4,863,622   

Common/collective trust funds and other

    4,162        6,011,853        6,016,015        3,456        5,239,941        5,243,397   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total investments measured at fair value

  $   5,858,839      $   6,011,853      $   11,870,692      $   6,761,799      $   5,239,941      $   12,001,740   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

The Plan’s valuation techniques used to measure the fair values of money market funds, common stock and mutual funds that were classified as Level 1 in the table above were derived from quoted market prices as substantially all of these instruments have active markets. A description of the valuation techniques used to measure the fair values of common/collective trust funds and separately-managed account fund investments with significant balances as of December 31, 2015 and 2014 that were classified as Level 2 in the table above are included in Note 4 below.

 

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Table of Contents

Oracle Corporation

401(k) Savings and Investment Plan

Notes to Financial Statements—(Continued)

December 31, 2015

 

4. Composition and Valuation of Certain Plan Investments and Other Plan Investments Disclosures

Fidelity Commingled Funds

The Plan held investments in Fidelity Contrafund Commingled Pool, Fidelity Growth Company Commingled Pool and Fidelity Low-Priced Stock Commingled Pool as of December 31, 2015 and 2014 (collectively, the Fidelity Commingled Funds) in order to provide broader investment options to participants. The Fidelity Commingled Funds are common/collective trust funds managed by Fidelity Management Trust Company. The investment objective of the Fidelity Contrafund Commingled Pool is to provide capital appreciation over a market cycle relative to the S&P 500 Index or other suitable index through the active management of equities with a focus on companies having strong long-term growth prospects. The investment objective of the Fidelity Growth Company Commingled Pool is to provide capital appreciation over a market cycle relative to the Russell 3000 Growth Index or other suitable growth index, through the active management of equities across a broad growth segment of the equity markets. The investment objective of the Fidelity Low-Priced Stock Commingled Pool is to provide capital appreciation over a market cycle relative to the Russell 2000 Index or a suitable small cap index, through the active management of equities with a focus on primarily higher-quality small and mid-sized companies with stable growth prospects and trading at valuations of less than $35 per share at the time of purchase.

The trustee, Fidelity Management Trust Company, generally determines the fair values of the Fidelity Commingled Funds on a daily basis using the net asset value (NAV) of units held of the commingled funds. The NAV is based on the fair value of the underlying investments held by each commingled fund less its liabilities. The fair value of the underlying investments is generally derived from the quoted prices in active markets of the underlying securities as substantially all of the underlying investments have active markets. As the Fidelity Commingled Funds are not directly quoted in active markets, the values of the funds are classified as Level 2 in the fair value table presented in Note 3 above as of December 31, 2015 and 2014.

Vanguard Target Retirement Trusts

The Plan held investments in Vanguard Target Retirement Trusts (Vanguard Trusts), which are more specifically listed in Schedule H, Line 4(i)—Schedule of Assets (Held at End of Year) as of December 31, 2015, in order to provide broader investment options to participants. The Vanguard Trusts are common/collective trust funds sponsored and maintained by Vanguard Fiduciary Trust Company. The Vanguard Trusts invest in Vanguard mutual funds using an asset allocation strategy designed for investors planning to retire or leave the workforce in or within a few years of the target year. The underlying mutual funds that the Vanguard Trusts held may have included the Vanguard Total Stock Market Index Fund Institutional Shares, Vanguard Total Bond Market II Index Fund Institutional Shares, Vanguard Total International Stock Index Fund Institutional Plus Shares, Vanguard Total International Bond Index Fund Institutional Shares and Vanguard Short-Term Inflation-Protected Securities Index Fund Institutional Shares, among others. Each of the Vanguard Trusts’ indirect stock holdings (through its mutual fund holdings) consisted substantially of large-capitalization U.S. stocks and, to a lesser extent, mid- and small-cap U.S. stocks and international stocks. Each of the Vanguard Trusts’ indirect bond holdings consisted of a diversified mix of investment-grade taxable U.S. government, U.S. government agency and corporate bonds, international bonds as well as inflation-protected and mortgage-backed securities.

The trustee, Vanguard Fiduciary Trust Company, generally determines the fair values of the Vanguard Trusts’ units each day the New York Stock Exchange is open for trading. The underlying investments of the Vanguard Trusts are valued based on quoted market prices as substantially all of these underlying investments have active markets. The values of the Vanguard Trusts are determined based upon the values of these underlying

 

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Table of Contents

Oracle Corporation

401(k) Savings and Investment Plan

Notes to Financial Statements—(Continued)

December 31, 2015

 

investments held for benefit of the Vanguard Trusts less any liabilities. As the Vanguard Trusts are not directly quoted in active markets, the values of the Vanguard Trusts are classified as Level 2 in the fair value table presented in Note 3 above as of December 31, 2015 and 2014.

Galliard Stable Value Fund

During the years ended December 31, 2015 and 2014, the Plan held investments in Galliard Stable Value Fund (Galliard Fund). The Galliard Fund is exclusively managed for the Plan by Galliard Capital Management, Inc. The Galliard Fund primarily invests in common/collective trust funds in the Plan’s name for the sole benefit of Plan participants, security-backed contracts and money market funds. Security-backed contracts are issued by insurance companies and other financial institutions that wrap underlying bond funds, fixed income common/collective trust funds or separate accounts.

The issuer of the wrap contract guarantees a minimum rate of return and provides full benefit responsiveness, provided that all terms of the wrap contract have been met. Wrap contracts are normally agreements entered with issuers rated in the top three long-term rating categories (equaling A- or above) as determined by any of the nationally recognized rating organizations. The Galliard Fund is credited with contributions from participants and earnings on the underlying investments and charged for participant withdrawals and administrative expenses.

As of December 31, 2015 and 2014, there were no reserves against the wrap contracts’ carrying values due to credit risks of the issuers. The crediting interest rates for the wrap contracts were based upon a formula agreed with the issuer with the requirement that interest rates may not be less than zero percent. The security-backed contracts are designed to reset their respective crediting rates on a quarterly basis, but may be reset more or less frequently. Certain events limit the ability of the Plan to transact at contract value with the wrap issuer. However, the Plan’s management is not aware of the occurrence or likely occurrence of any such events, which would limit the Plan’s ability to transact at contract value with participants. The issuer may terminate a wrap contract at any time.

The fair value of the Galliard Fund equals the total of the fair values of the underlying assets plus the total wrap contract rebid value, which is calculated by discounting the annual wrap fee, due to rebid, over the duration of the contract’s underlying assets. Fair values were determined by the trustees of the underlying common/collective trust funds using reported net asset value. Prices for securities held in the underlying portfolios of the Galliard Fund are primarily obtained from independent pricing services that use valuation matrices incorporating dealer supplied valuations and valuation models, valuation inputs such as the structure of the issue, cash flow assumptions and the value of underlying assets and guarantees. The fair values of the wrap contracts were determined by Galliard Capital Management, Inc. using a discounted cash flow model based upon market data and considering recent fee bids as determined by recognized dealers.

The Plan’s statements of net assets available for benefits include the fair values of the underlying assets and wrap contracts of the Galliard Fund based on the proportionate ownership of the Plan’s participants.

The average yields earned by the Plan for all investments held by the Galliard Fund were approximately 1.91% and 1.46% for the years ended December 31, 2015 and 2014, respectively. The average yields earned by the Plan for all investments held by the Galliard Fund based on the actual interest rates credited to participants were approximately 1.85% and 1.55% for the years ended December 31, 2015 and 2014, respectively.

 

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Table of Contents

Oracle Corporation

401(k) Savings and Investment Plan

Notes to Financial Statements—(Continued)

December 31, 2015

 

Other Plan Investments Disclosures

The fair values of individual investments that represented 5% or more of the Plan’s net assets available for benefits at December 31, 2015 and 2014, were as follows:

 

     December 31,  

(in thousands)

   2015      2014  

Fidelity Contrafund Commingled Pool

   $     1,340,947       $     1,335,459   

Vanguard Institutional Index Fund Institutional Plus Shares

   $ 1,310,001       $ 1,306,911   

Fidelity Growth Company Commingled Pool

   $ 926,911       $ 843,783   

Dodge & Cox Stock Fund

   $ 720,285       $ 822,214   

Oracle Corporation Common Stock

   $ 691,954       $ 851,531   

Fidelity Low-Priced Stock Commingled Pool

   $ 577,278       $ 628,280   

For the year ended December 31, 2015, the Plan’s investments, including investments purchased and sold, as well as held during the year, net depreciated in fair value as follows:

 

(in thousands)

   Net Realized and
Unrealized
(Depreciation)
Appreciation in
Fair Values of
Investments
 

Mutual funds

   $ (301,879

Oracle Corporation and other common stock

     (215,592

Common/collective trust funds and other

     133,097   
  

 

 

 
   $     (384,374
  

 

 

 

5. Income Tax Status

On October 20, 2015, the Plan received a determination letter from the IRS stating that the Plan is qualified under Section 401(a) of the Code, and therefore, the related trust is exempt from taxation. This determination letter superseded the determination letters issued by the IRS on April 3, 2015 and May 29, 2014. The 401(k) Committee believes the Plan is being operated in compliance with the applicable requirements of the Code and, therefore, believes that the Plan is qualified and the related trust is tax exempt. The Plan is subject to routine audits by taxing jurisdictions; however, there are currently no audits for any tax periods in progress.

6. Party-in-Interest Transactions

Transactions in shares of Oracle common stock qualify as party-in-interest transactions under the provisions of ERISA. During the year ended December 31, 2015, the Plan made purchases of approximately $78,694,000 and sales of approximately $67,491,000 of Oracle common stock. In addition, the Plan made in-kind transfers of Oracle common stock to participants, related to certain qualifying distribution, of approximately $11,108,000 during the year ended December 31, 2015.

Certain members of Oracle Corporation management perform administrative and fiduciary duties for the Plan that qualify them as parties-in-interest and/or related parties of the Plan. Transactions

 

11


Table of Contents

Oracle Corporation

401(k) Savings and Investment Plan

Notes to Financial Statements—(Continued)

December 31, 2015

 

between such members of Oracle Corporation management and the Plan were routine in nature and conducted pursuant to the Plan’s provisions as of and during the year ended December 31, 2015.

As noted in Note 1 above, Fidelity Management Trust Company is a directed trustee of the Plan and Fidelity Investments Institutional Operations Company, Inc. serves as the record keeper to maintain the individual accounts of each Plan participant. Certain Plan investments include shares of mutual funds that are managed by affiliates of Fidelity.

7. Differences between Financial Statements and Form 5500

The following is a reconciliation of the net assets available for benefits, at fair value, per the financial statements to the Plan’s Form 5500 (in thousands):

 

     December 31,  
     2015     2014  

Net assets available for benefits, at fair value, per the financial statements

   $ 11,992,826      $ 12,114,400   

Amounts allocated to withdrawing participants and other

     (880     (2,487
  

 

 

   

 

 

 

Net assets available for benefits per the Form 5500

   $     11,991,946      $     12,111,913   
  

 

 

   

 

 

 

The following is a reconciliation of the changes in net assets available for benefits per the financial statements to the Plan’s Form 5500 (in thousands):

 

     Year Ended December 31,  
     2015     2014  

Net (decrease) increase in net assets available for benefits per the financial statements

   $     (115,213   $     904,439   

Net change in fair value adjustment of certain Galliard Stable Value Fund assets

     (5,201     5,541   

Net change in amounts allocated to withdrawing participants and other

     447        1,185   
  

 

 

   

 

 

 

Net (loss) income per the Form 5500

   $ (119,967   $ 911,165   
  

 

 

   

 

 

 

The fair value adjustment for certain Galliard Stable Value Fund assets represented the differences between contract values of certain fully benefit-responsive contracts within the Galliard Fund as included in the statements of changes in net assets available for benefits for the years ended December 31, 2015 and 2014, and the respective fair values of these contracts as reported in the respective Form 5500. Certain investments within the Galliard Fund are presented at contract value in both the statements of changes in net assets available for benefits and the Form 5500, and therefore, do not result in a difference between the Plan’s financial statements and the Form 5500. Amounts allocated to withdrawing participants are recorded on the Form 5500 for benefit claims that have been processed and approved for payment prior to each respective year-end but were not yet paid.

8. Excess Contributions

Contributions received from participants for the year ended December 31, 2015 included approximately $154,000 of excess contributions (net of corresponding gains and losses) that were remitted during January 2016 through April 2016 to certain participants. The excess deferral contributions, originally deducted in the year ended December 31, 2015, were returned to comply with the participants’ applicable maximum annual contributions permitted under the Code. The amount is included in the Plan’s statement of net assets available for benefits as excess deferrals due to participants at December 31, 2015.

 

12


Table of Contents

Oracle Corporation

401(k) Savings and Investment Plan

EIN 54-2185193, Plan # 001

Schedule H, Line 4(i)—Schedule of Assets (Held at End of Year)

December 31, 2015

 

(a)

 

(b)
Identity of Issue, Borrower,
Lessor, or Similar Party

 

(c)
Description of Investment, Including
Maturity Date, Rate of Interest,
Collateral, Par, or Maturity Value

  (e)
Current Value
(in thousands)
 
  Registered Investment Companies:    
 

Dodge & Cox International Stock Fund

  10,792,061 shares   $ 393,694   
 

Dodge & Cox Stock Fund

  4,425,169 shares     720,285   

*

 

Fidelity Balanced Fund - Class K

  19,254,300 shares     408,576   

*

 

Fidelity Worldwide Fund

  8,256,707 shares     183,381   
 

Lazard Emerging Markets Equity Fund Class Institutional

  13,837,625 shares     185,978   
 

PIMCO Inflation Response Multi-Asset Fund Institutional

  606,105 shares     4,734   
 

Vanguard Extended Market Index Fund Institutional Plus Shares

  1,805,653 shares     283,289   
 

Vanguard Institutional Index Fund Institutional Plus Shares

  7,019,243 shares     1,310,001   
 

Vanguard Total Bond Market Index Fund Institutional Plus Shares

  27,416,076 shares     291,707   
 

Vanguard Total International Stock Index Fund Institutional Plus Shares

  889,305 shares     86,218   
     

 

 

 
        3,867,863   
  Assets in Brokerage Link Accounts   Various investments, including registered investment companies, common stocks, money market funds and cash     546,293   
  Oracle Corporation Common Stock Fund:    

*

 

Oracle Corporation Common Stock

  18,942,082 shares     691,954   

*

 

Fidelity Institutional Money Market Fund

  4,106,917 shares     4,107   
 

Separately-managed Account Fund Investments:

   
 

Artisan International Separate Account—

   
 

Depository Receipts

   
 

Autoliv Inc

  19,857 shares     2,524   
 

Baidu Inc

  41,244 shares     7,797   
 

Grifols SA

  50,027 shares     1,621   
 

Grupo Televisa SAB

  120,849 shares     3,288   
 

Infosys Ltd

  97,944 shares     1,641   
 

Common Stock

   
 

Actelion, Ltd

  22,836 shares     3,183   
 

Adecco SA

  20,662 shares     1,421   
 

AIA Group, Ltd

  1,256,478 shares     7,554   
 

Allegion PLC

  15,810 shares     1,042   
 

Allergan PLC

  8,159 shares     2,550   
 

Allianz SE

  11,989 shares     2,131   
 

Anheuser-Busch InBev SA/N.V.

  10,886 shares     1,353   
 

Aon PLC

  24,164 shares     2,228   
 

ASML Holding N.V.

  48,356 shares     4,338   
 

Babcock International Group plc

  73,510 shares     1,101   
 

Bayer AG

  71,379 shares     8,982   
 

Beiersdorf AG

  33,442 shares     3,059   
 

Beijing Enterprises Water Group Ltd

  482,000 shares     339   
 

BT Group plc

  216,503 shares     1,506   
 

Canadian Pacific Railway Ltd

  6,858 shares     875   

 

13


Table of Contents

Oracle Corporation

401(k) Savings and Investment Plan

EIN 54-2185193, Plan # 001

Schedule H, Line 4(i)—Schedule of Assets (Held at End of Year)—(Continued)

December 31, 2015

 

(a)

 

(b)
Identity of Issue, Borrower,
Lessor, or Similar Party

 

(c)
Description of Investment, Including
Maturity Date, Rate of Interest,
Collateral, Par, or Maturity Value

  (e)
Current Value
(in thousands)
 
 

Carnival plc

  54,030 shares     3,079   
 

Cognizant Technology Solutions Corporation

  58,382 shares     3,504   
 

Croda International plc

  35,419 shares     1,588   
 

Delphi Automotive plc

  59,125 shares     5,069   
 

Diageo plc

  8,369 shares     229   
 

Grifols, S.A.

  29,257 shares     1,355   
 

IHI Corporation

  330,475 shares     927   
 

Imperial Tobacco Group plc

  46,947 shares     2,482   
 

InterContinental Hotels Group PLC

  51,319 shares     2,011   
 

International Consolidated Airlines Group, S.A.

  405,060 shares     3,646   
 

Japan Tobacco Inc

  121,216 shares     4,509   
 

Johnson Matthey plc

  102,952 shares     4,033   
 

Liberty Global plc (LBTYA_US)

  81,054 shares     3,433   
 

Liberty Global plc (LBTYK_US)

  131,566 shares     5,363   
 

Linde AG

  30,875 shares     4,493   
 

Lloyds Banking Group plc

  2,457,817 shares     2,648   
 

L’Oreal SA

  9,321 shares     1,573   
 

LVMH Moet Hennessy Louis Vuitton SE

  9,348 shares     1,472   
 

Mediaset S.p.A

  305,803 shares     1,273   
 

Medtronic plc

  133,322 shares     10,254   
 

Nestle S.A.

  81,942 shares     6,098   
 

NGK Insulators, Ltd.

  162,643 shares     3,727   
 

Novartis AG

  36,954 shares     3,202   
 

Olympus Corporation

  92,086 shares     3,677   
 

Ono Pharmaceutical Co., Ltd.

  10,900 shares     1,967   
 

Orange S.A.

  103,177 shares     1,736   
 

Pernod Ricard S.A.

  16,935 shares     1,936   
 

Roche Holding AG

  21,464 shares     5,922   
 

Royal Caribbean Cruises Ltd.

  22,653 shares     2,293   
 

Swedbank AB

  87,972 shares     1,950   
 

Syngenta AG

  13,761 shares     5,389   
 

TE Connectivity Ltd.

  21,731 shares     1,404   
 

Telenet Group Holding N.V.

  31,120 shares     1,683   
 

Tencent Holdings, Ltd

  294,592 shares     5,803   
 

Toyota Motor Corporation

  72,276 shares     4,503   
 

UCB S.A.

  21,126 shares     1,911   
 

Vonovia SE

  65,138 shares     2,021   
 

WABCO Holdings Inc.

  12,297 shares     1,257   
 

Wirecard AG

  30,970 shares     1,565   
 

Worldpay Group plc

  352,500 shares     1,597   
 

WPP plc

  157,205 shares     3,622   
 

Zodiac Aerospace

  165,725 shares     3,958   
 

Participating Certificate

   
 

Ryanair Holdings plc

  168,253 shares     2,745   
 

Preferred Stock

   
 

Henkel AG & Co KGaA

  16,668 shares     1,869   
     

 

 

 
        193,309   

 

14


Table of Contents

Oracle Corporation

401(k) Savings and Investment Plan

EIN 54-2185193, Plan # 001

Schedule H, Line 4(i)—Schedule of Assets (Held at End of Year)—(Continued)

December 31, 2015

 

(a)

 

(b)
Identity of Issue, Borrower,
Lessor, or Similar Party

 

(c)
Description of Investment, Including
Maturity Date, Rate of Interest,
Collateral, Par, or Maturity Value

  (e)
Current Value
(in thousands)
 
 

Galliard Stable Value Fund—

   
 

Common/Collective Trust Funds

   
 

Wells Fargo Fixed Income Fund A

  6,766,568 shares     168,809   
 

Wells Fargo Fixed Income Fund F

  23,358,340 shares     318,749   
 

Wells Fargo Fixed Income Fund N

  7,081,916 shares     81,422   
 

Wells Fargo Short-Term Investment Fund S

  17,535,583 shares     17,536   
 

Wells Fargo Stable Value Fund W

  1,340,741 shares     70,813   
 

MetLife Insurance Company Separate Account

  707,581 shares     80,478   
 

Guaranteed Investment Contracts

   
 

MetLife Insurance Company

  Wrapper contracts     76   

*

 

Fidelity Institutional Money Market Government Portfolio

  21,454,592 shares     21,455   
     

 

 

 
        759,338   
 

US Small Mid Cap Value Fund—

   
 

Registered Investment Companies

   
 

DFA US Targeted Value I

  9,450,102 shares     186,640   
 

Common Stock

   
 

Abercrombie & Fitch Co

  61,994 shares     1,674   
 

ABM Industries Incorporated

  52,868 shares     1,505   
 

Actuant Corporation

  19,662 shares     471   
 

Aecom

  33,584 shares     1,009   
 

Aegion Corporation

  31,421 shares     607   
 

AES Corporation/VA

  99,745 shares     955   
 

Air Lease Corporation

  29,650 shares     993   
 

Ally Financial Inc

  68,837 shares     1,283   
 

Amdocs Limited

  29,916 shares     1,633   
 

American Capital Agency Corp

  38,758 shares     672   
 

American Capital Mortgage Investment Corp

  29,164 shares     407   
 

American Eagle Outfitters, Inc

  142,333 shares     2,206   
 

American Residential Properties, Inc

  74,505 shares     1,408   
 

Amsurg Corp.

  16,321 shares     1,240   
 

Anworth Mortgage Asset Corporation

  86,829 shares     378   
 

Apollo Investment Corporation

  94,490 shares     493   
 

Ares Capital Corporation

  38,571 shares     550   
 

Ares Commercial Real Estate Corporation

  111,288 shares     1,273   
 

Arrow Electronics, Inc.

  47,319 shares     2,564   
 

Ascena Retail Group, Inc.

  112,510 shares     1,108   
 

Assurant, Inc.

  6,988 shares     563   
 

Assured Guaranty Ltd

  43,162 shares     1,141   
 

Avnet, Inc.

  54,938 shares     2,354   
 

Axis Capital Holdings Limited

  32,550 shares     1,830   
 

Belden Inc.

  8,655 shares     413   
 

BMC Stock Holdings, Inc.

  64,063 shares     1,073   
 

Booz Allen Hamilton Holding Corporation

  26,059 shares     804   
 

The Brink’s Company

  14,770 shares     426   
 

Bristow Group Inc.

  63,957 shares     1,656   

 

15


Table of Contents

Oracle Corporation

401(k) Savings and Investment Plan

EIN 54-2185193, Plan # 001

Schedule H, Line 4(i)—Schedule of Assets (Held at End of Year)—(Continued)

December 31, 2015

 

(a)

 

(b)
Identity of Issue, Borrower,
Lessor, or Similar Party

 

(c)
Description of Investment, Including
Maturity Date, Rate of Interest,
Collateral, Par, or Maturity Value

  (e)
Current Value
(in thousands)
 
 

Brocade Communications Systems, Inc.

  121,823 shares     1,118   
 

Brooks Automation, Inc.

  54,498 shares     582   
 

Cabot Corporation

  15,333 shares     627   
 

CDW Corporation

  44,601 shares     1,875   
 

Centene Corporation

  10,442 shares     687   
 

Chatham Lodging Trust

  61,335 shares     1,256   
 

Chemed Corporation

  16,052 shares     2,405   
 

Cloud Peak Energy Inc.

  164,627 shares     342   
 

ClubCorp Holdings, Inc.

  42,022 shares     768   
 

Coherent, Inc.

  15,333 shares     998   
 

Colony Capital, Inc.

  80,150 shares     1,561   
 

Columbia Banking System, Inc.

  15,052 shares     489   
 

Convergys Corporation

  27,282 shares     679   
 

Crown Holdings, Inc.

  39,135 shares     1,984   
 

Cubic Corporation

  33,490 shares     1,582   
 

Curtiss-Wright Corporation

  19,568 shares     1,340   
 

CYS Investments, Inc.

  265,191 shares     1,891   
 

Diamondback Energy, Inc.

  26,119 shares     1,747   
 

Dillard’s, Inc.

  7,992 shares     525   
 

Drew Industries Incorporated

  47,195 shares     2,875   
 

Dril-Quip, Inc.

  9,474 shares     561   
 

Enersys

  32,832 shares     1,836   
 

Essent Group Ltd

  52,401 shares     1,147   
 

Express, Inc.

  80,305 shares     1,388   
 

Federated Investors, Inc.

  29,539 shares     846   
 

Ferroglobe PLC

  34,054 shares     366   
 

Fifth Street Finance Corp.

  101,504 shares     648   
 

The Finish Line, Inc.

  61,524 shares     1,112   
 

First American Financial Corporation

  11,500 shares     413   
 

First Cash Financial Services, Inc

  30,628 shares     1,146   
 

First Citizens Bancshares, Inc.

  3,105 shares     802   
 

First Republic Bank/CA

  8,563 shares     566   
 

Flextronics International Ltd.

  138,474 shares     1,552   
 

FNF Group

  44,309 shares     1,536   
 

FNFV Group

  14,864 shares     167   
 

Foot Locker, Inc.

  26,814 shares     1,745   
 

Forum Energy Technologies, Inc.

  42,804 shares     533   
 

FTD Cos. Inc.

  29,257 shares     766   
 

FTI Consulting, Inc.

  15,146 shares     525   
 

G&K Services, Inc.

  11,196 shares     704   
 

Granite Construction Incorporated

  29,822 shares     1,280   
 

Graphic Packaging Holding Company

  266,884 shares     3,424   
 

Group 1 Automotive, Inc.

  11,477 shares     869   
 

Hanger, Inc.

  38,571 shares     634   
 

The Hanover Insurance Group, Inc.

  8,843 shares     719   
 

Harris Corporation

  12,888 shares     1,120   
 

Hatteras Financial Corp.

  106,302 shares     1,398   
 

Heidrick & Struggles International, Inc

  31,139 shares     848   
 

Helix Energy Solutions Group, Inc.

  44,967 shares     237   
 

Hibbett Sports, Inc.

  18,484 shares     559   

 

16


Table of Contents

Oracle Corporation

401(k) Savings and Investment Plan

EIN 54-2185193, Plan # 001

Schedule H, Line 4(i)—Schedule of Assets (Held at End of Year)—(Continued)

December 31, 2015

 

(a)

 

(b)
Identity of Issue, Borrower,
Lessor, or Similar Party

 

(c)
Description of Investment, Including
Maturity Date, Rate of Interest,
Collateral, Par, or Maturity Value

  (e)
Current Value
(in thousands)
 
 

Hillenbrand, Inc.

  30,480 shares     903   
 

Huntington Bancshares Incorporated/OH

  137,722 shares     1,523   
 

Huntington Ingalls Industries

  15,805 shares     2,005   
 

Huntsman Corporation

  32,267 shares     367   
 

IAC/InterActiveCorp

  14,111 shares     847   
 

Icon plc

  24,177 shares     1,879   
 

Infinity Property and Casualty Corporation

  6,867 shares     565   
 

Ingram Micro Inc.

  61,993 shares     1,883   
 

Insight Enterprises, Inc.

  19,473 shares     489   
 

Integra Lifesciences Holdings Corporation

  19,097 shares     1,294   
 

International Speedway Corporation

  12,605 shares     425   
 

Investors Bancorp, Inc.

  76,525 shares     952   
 

KAR Auction Services, Inc.

  46,828 shares     1,734   
 

Kindred Healthcare, Inc.

  69,237 shares     825   
 

Knoll, Inc.

  33,397 shares     628   
 

Kosmos Energy Ltd.

  94,543 shares     492   
 

Landstar System, Inc.

  8,561 shares     502   
 

Lear Corporation

  15,762 shares     1,936   
 

Leucadia National Corporation

  79,671 shares     1,385   
 

Lifepoint Health, Inc.

  13,358 shares     980   
 

Live Nation Entertainment, Inc.

  42,051 shares     1,033   
 

Maiden Holdings, Ltd.

  201,660 shares     3,007   
 

Manpowergroup Inc.

  14,205 shares     1,197   
 

Maximus, Inc.

  14,299 shares     804   
 

The Men’s Wearhouse, Inc.

  108,657 shares     1,595   
 

MFA Financial, Inc.

  239,886 shares     1,583   
 

Minerals Technologies Inc.

  18,602 shares     853   
 

MRC Global Inc.

  54,091 shares     698   
 

Mueller Industries, Inc.

  13,735 shares     372   
 

Multi Packaging Solutions International Limited

  48,008 shares     833   
 

Nationstar Mortgage Holdings Inc.

  75,728 shares     1,012   
 

Navient Corporation

  116,378 shares     1,333   
 

Navigant Consulting, Inc.

  99,718 shares     1,601   
 

Nelnet, Inc.

  14,719 shares     494   
 

NU Skin Enterprises, Inc.

  28,598 shares     1,084   
 

On Semiconductor Corporation

  177,045 shares     1,735   
 

Owens & Minor, Inc.

  15,333 shares     552   
 

Packaging Corporation of America

  30,762 shares     1,940   
 

Parexel International Corporation

  10,254 shares     699   
 

Parsley Energy, Inc.

  136,538 shares     2,519   
 

PartnerRe Ltd.

  9,314 shares     1,302   
 

PHH Corporation

  87,111 shares     1,411   
 

PNM Resources, Inc.

  21,167 shares     647   
 

QEP Resources, Inc.

  44,497 shares     596   
 

Radian Group Inc.

  108,529 shares     1,453   
 

Raymond James Financial, Inc.

  25,494 shares     1,478   
 

Realogy Holdings Corp.

  19,379 shares     711   
 

Reinsurance Group of America, Incorporated

  19,755 shares     1,690   

 

17


Table of Contents

Oracle Corporation

401(k) Savings and Investment Plan

EIN 54-2185193, Plan # 001

Schedule H, Line 4(i)—Schedule of Assets (Held at End of Year)—(Continued)

December 31, 2015

 

(a)

 

(b)
Identity of Issue, Borrower,
Lessor, or Similar Party

 

(c)
Description of Investment, Including
Maturity Date, Rate of Interest,
Collateral, Par, or Maturity Value

  (e)
Current Value
(in thousands)
 
 

Rent-A-Center, Inc. /TX

  29,822 shares     446   
 

Rice Energy Inc.

  47,883 shares     522   
 

RPX Corporation

  99,716 shares     1,097   
 

RSP Permian, Inc.

  25,522 shares     622   
 

Schweitzer-Mauduit International, Inc.

  24,853 shares     1,044   
 

Select Medical Holdings Corporation

  58,607 shares     698   
 

Sensient Technologies Corporation

  9,407 shares     591   
 

Service Corporation International/US

  26,435 shares     688   
 

Silver Bay Relaty Trust Corp.

  32,926 shares     516   
 

SLM Corporation

  112,089 shares     731   
 

Stancorp Financial Group, Inc.

  6,679 shares     761   
 

Starz

  51,289 shares     1,718   
 

Steel Dynamics, Inc.

  56,981 shares     1,018   
 

Steven Madden, Ltd.

  43,345 shares     1,310   
 

SVB Financial Group

  4,607 shares     548   
 

Sykes Enterprises, Incorporated

  30,103 shares     927   
 

Symetra Financial Corporation

  32,764 shares     1,041   
 

Symmetry Surgical Inc.

  3,329 shares     31   
 

Synnex Corporation

  20,277 shares     1,824   
 

Tegna Inc.

  33,633 shares     858   
 

Teletech Holdings, Inc.

  71,108 shares     1,985   
 

Teradyne, Inc.

  55,032 shares     1,138   
 

Terex Corporation

  34,055 shares     629   
 

Tetra Tech, Inc.

  37,818 shares     984   
 

Thor Industries, Inc.

  26,340 shares     1,479   
 

The Timken Company

  44,120 shares     1,261   
 

Torchmark Corporation

  18,532 shares     1,059   
 

Tutor Perini Corporation

  26,999 shares     452   
 

Two Harbors Investment Corp.

  227,938 shares     1,846   
 

Universal Corporation/VA

  17,572 shares     985   
 

Validus Holdings, Ltd.

  60,112 shares     2,783   
 

Walker & Dunlop, Inc.

  90,869 shares     2,618   
 

Wesco International, Inc.

  40,554 shares     1,771   
 

Western Refining, Inc.

  47,507 shares     1,692   
 

World Fuel Services Corporation

  61,147 shares     2,352   
 

Brown Brothers Harriman Short-Term Investment Fund

  3,479,113 shares     3,479   
     

 

 

 
        373,457   
 

William Blair Small Mid Cap Growth Separate Account—

 
 

Common Stock

   
 

2U, Inc.

  64,510 shares     1,805   
 

ABIOMED, Inc.

  21,693 shares     1,958   
 

Affiliated Managers Group, Inc.

  21,027 shares     3,359   
 

Align Technology, Inc.

  45,669 shares     3,007   
 

ANSYS, Inc.

  33,682 shares     3,116   
 

Ball Corporation

  24,084 shares     1,752   
 

Booz Allen Hamilton Holding Corporation

  100,003 shares     3,085   
 

Brunswick Corporation

  31,680 shares     1,600   

 

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Table of Contents

Oracle Corporation

401(k) Savings and Investment Plan

EIN 54-2185193, Plan # 001

Schedule H, Line 4(i)—Schedule of Assets (Held at End of Year)—(Continued)

December 31, 2015

 

(a)

 

(b)
Identity of Issue, Borrower,
Lessor, or Similar Party

 

(c)
Description of Investment, Including
Maturity Date, Rate of Interest,
Collateral, Par, or Maturity Value

  (e)
Current Value
(in thousands)
 
 

Cambrex Corporation

  52,290 shares     2,462   
 

Carrizo Oil & Gas, Inc.

  33,130 shares     980   
 

CBOE Holdings, Inc.

  53,109 shares     3,447   
 

CEB Inc.

  38,573 shares     2,368   
 

Celanese Corporation

  43,976 shares     2,961   
 

Centene Corporation

  26,838 shares     1,766   
 

Choice Hotels International, Inc.

  49,169 shares     2,479   
 

Colliers International Group Inc.

  42,424 shares     1,890   
 

CoStar Group, Inc.

  15,796 shares     3,265   
 

Cvent, Inc.

  62,180 shares     2,171   
 

Diamondback Energy, Inc.

  25,360 shares     1,697   
 

Drew Industries Incorporated

  34,500 shares     2,101   
 

Encore Capital Group, Inc.

  55,516 shares     1,614   
 

Exact Sciences Corporation

  153,401 shares     1,416   
 

Examworks Group, Inc.

  41,860 shares     1,113   
 

FactSet Research Systems Inc.

  13,086 shares     2,127   
 

First Cash Financial Services, Inc.

  40,641 shares     1,521   
 

FirstService Corporation

  78,540 shares     3,175   
 

Gartner, Inc.

  32,250 shares     2,925   
 

Guidewire Software, Inc.

  77,240 shares     4,647   
 

Healthcare Services Group, Inc.

  59,931 shares     2,090   
 

HealthSouth Corporation

  84,875 shares     2,954   
 

Hexcel Corporation

  49,630 shares     2,305   
 

Huron Consulting Group Inc.

  29,824 shares     1,772   
 

Idexx Laboratories, Inc.

  28,820 shares     2,102   
 

International Flavors & Fragrances Inc.

  27,000 shares     3,230   
 

j2 Global, Inc.

  47,032 shares     3,872   
 

Jarden Corporation

  58,313 shares     3,331   
 

Jones Lang LaSalle Incorporated

  15,623 shares     2,497   
 

Lazard Ltd- CL A

  53,070 shares     2,389   
 

Ligand Pharmaceuticals Incorporated

  33,224 shares     3,602   
 

Manpowergroup Inc.

  26,300 shares     2,217   
 

Maximus, Inc.

  46,247 shares     2,601   
 

Medivation, Inc.

  41,016 shares     1,983   
 

Mednax, Inc.

  49,910 shares     3,577   
 

Mettler-Toledo International Inc.

  10,769 shares     3,652   
 

The Middleby Corporation

  21,830 shares     2,355   
 

NeuStar, Inc.

  106,918 shares     2,563   
 

NU Skin Enterprises, Inc.

  53,287 shares     2,019   
 

Old Dominion Freight Line, Inc.

  55,051 shares     3,252   
 

OM Asset Management plc

  88,570 shares     1,358   
 

Pandora Media, Inc.

  82,225 shares     1,103   
 

Polaris Industries Inc.

  24,473 shares     2,103   
 

Quintiles Transnational Holdings Inc.

  41,790 shares     2,869   
 

Sally Beauty Holdings, Inc.

  76,549 shares     2,135   
 

SBA Communications Corporation

  29,041 shares     3,051   
 

ServiceMaster Global Holdings, Inc.

  53,709 shares     2,108   
 

Signature Bank

  17,730 shares     2,719   
 

Sirona Dental Systems, Inc.

  26,490 shares     2,903   

 

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Table of Contents

Oracle Corporation

401(k) Savings and Investment Plan

EIN 54-2185193, Plan # 001

Schedule H, Line 4(i)—Schedule of Assets (Held at End of Year)—(Continued)

December 31, 2015

 

(a)

 

(b)
Identity of Issue, Borrower,
Lessor, or Similar Party

 

(c)
Description of Investment, Including
Maturity Date, Rate of Interest,
Collateral, Par, or Maturity Value

  (e)
Current Value
(in thousands)
 
 

Six Flags Entertainment Corporation

  73,519 shares     4,039   
 

Stericycle, Inc.

  14,144 shares     1,706   
 

The Toro Company

  26,660 shares     1,948   
 

Willis Towers Watson Public Limited Company

  1,880 shares     242   
 

Tractor Supply Company

  25,640 shares     2,192   
 

TransDigm Group Incorporated

  9,295 shares     2,123   
 

Tyler Technologies, Inc.

  15,820 shares     2,758   
 

Ulta Salon, Cosmetics & Fragrance, Inc.

  16,770 shares     3,102   
 

Vantiv, Inc.

  64,030 shares     3,036   
 

Virtu Financial, Inc.

  58,319 shares     1,320   
 

WD-40 Company

  23,450 shares     2,313   
 

Williams-Sonoma, Inc.

  24,540 shares     1,433   
 

WNS (Holdings) Limited—ADR

  53,765 shares     1,677   
     

 

 

 
        168,408   
  Common/Collective Trust Funds:    
 

Broad Market Bond I—

   
 

Wells Fargo Core Bond II CIT EF1

  23,620,532 shares     235,024   
 

Loomis Sayles Core Plus Fixed Income Fund D

  18,182,317 shares     234,916   

*

 

Fidelity Contrafund Commingled Pool

  115,499,313 shares     1,340,947   

*

 

Fidelity Growth Company Commingled Pool

  71,410,692 shares     926,911   

*

 

Fidelity Low-Priced Stock Commingled Pool

  53,451,630 shares     577,278   
 

Vanguard Target Retirement 2010 Trust Select

  1,117,635 shares     32,993   
 

Vanguard Target Retirement 2015 Trust Select

  2,773,515 shares     81,070   
 

Vanguard Target Retirement 2020 Trust Select

  11,189,587 shares     325,058   
 

Vanguard Target Retirement 2025 Trust Select

  10,616,093 shares     306,699   
 

Vanguard Target Retirement 2030 Trust Select

  12,925,153 shares     370,952   
 

Vanguard Target Retirement 2035 Trust Select

  10,081,628 shares     287,629   
 

Vanguard Target Retirement 2040 Trust Select

  8,667,540 shares     245,465   
 

Vanguard Target Retirement 2045 Trust Select

  4,163,510 shares     117,869   
 

Vanguard Target Retirement 2050 Trust Select

  2,589,283 shares     73,251   
 

Vanguard Target Retirement 2055 Trust Select

  1,261,583 shares     35,665   
 

Vanguard Target Retirement 2060 Trust Select

  519,928 shares     14,704   
 

Vanguard Target Retirement Income Trust Select

  2,019,738 shares     59,845   
     

 

 

 
 

Total investments, substantially all at fair value**

    $ 11,871,005   
     

 

 

 

*

  Notes Receivable from Participants   4.25% - 11.5%, maturing through 2026   $ 91,362   

 

* Indicates a party-in-interest to the Plan.
** All investments were stated at fair value as of December 31, 2015 with the exception of one underlying investment of the Galliard Stable Value Fund, which is stated at contract value.

Column (d), cost, has been omitted, as all investments are participant directed.

 

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Table of Contents

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the persons who administer the employee benefit plan have duly caused this annual report to be signed on their behalf by the undersigned hereunto duly authorized.

 

   

ORACLE CORPORATION

401(k) SAVINGS AND INVESTMENT PLAN

Date: May 13, 2016     By:  

/s/ PETER W. SHOTT

      Peter W. Shott
      Vice President of Human Resources

 

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Table of Contents

INDEX TO EXHIBITS

 

Exhibit
Number

  

Exhibit Title

23.01    Consent of Sensiba San Filippo LLP, Independent Registered Public Accounting Firm

 

22