<PAGE> 1
================================================================================
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 [FEE REQUIRED]
FOR THE FISCAL YEAR ENDED DECEMBER 31, 1994
/ / TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934 [NO FEE REQUIRED]
FOR THE TRANSITION PERIOD FROM _______________ TO _______________
COMMISSION FILE NUMBER 0-14376
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 PURSUANT TO THE PLAN AND THE
ADDRESS OF ITS PRINCIPAL EXECUTIVE OFFICE:
ORACLE CORPORATION
500 ORACLE PARKWAY
REDWOOD SHORES, CA 94065
<PAGE> 2
ORACLE CORPORATION
401(k) SAVINGS AND INVESTMENT PLAN
FINANCIAL STATEMENTS AND ACCOMPANYING SCHEDULES
AS OF DECEMBER 31, 1994 AND 1993
TOGETHER WITH AUDITORS' REPORT
<PAGE> 3
Report of Independent Public Accountants
To the Plan Administrators of
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 as of
December 31, 1994 and 1993, and the related statement of changes in net assets
available for benefits for the year ended December 31, 1994. These financial
statements and the schedules referred to below are the responsibility of the
Plan Administrators. Our responsibility is to express an opinion on these
financial statements and schedules based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. 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, 1994 and 1993, and the changes in its net assets available for
benefits for the year ended December 31, 1994, in conformity with generally
accepted accounting principles.
Our audit was made for the purpose of forming an opinion on the basic financial
statements taken as a whole. The supplemental schedules as listed in the
accompanying index are presented for purposes of additional analysis and are
not a required part of the basic financial statements but are supplementary
information required by the Department of Labor's Rules and Regulations for
Reporting and Disclosure under the Employee Retirement Income Security Act of
1974. The Fund Information in the statements of net assets available for
benefits and the statement of changes in net assets available for benefits is
presented for purposes of additional analysis rather than to present the net
assets available for benefits and changes in net assets available for benefits
of each fund. The supplemental schedules and Fund Information have been
subjected to the auditing procedures applied in the audit of the basic
financial statements and, in our opinion, are fairly stated in all material
respects, in relation to the basic financial statements taken as a whole.
San Jose, California
May 26, 1995
<PAGE> 4
ORACLE CORPORATION
401(k) SAVINGS AND INVESTMENT PLAN
EIN 94-2871189
PLAN 001
AS OF DECEMBER 31, 1994 AND 1993
INDEX
<TABLE>
<CAPTION>
Page
----
<S> <C>
FINANCIAL STATEMENTS
Statement of Net Assets Available for Benefits as of
December 31, 1994 1
Statement of Net Assets Available for Benefits as of
December 31, 1993 2
Statement of Changes in Net Assets Available for Benefits
for the Year Ended December 31, 1994 3
Notes to Financial Statements as of December 31, 1994 4
SCHEDULES
Schedule of Assets Held for Investment Purposes as of
December 31, 1994 7
Schedule of Reportable Transactions for the Year Ended
December 31, 1994 8
</TABLE>
<PAGE> 5
ORACLE CORPORATION
401(k) SAVINGS AND INVESTMENT PLAN
EIN 94-2871189
PLAN 001
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS
AS OF DECEMBER 31, 1994
<TABLE>
<CAPTION>
FUND INFORMATION
----------------------------------------------------------
Oracle
Systems Fidelity
Corporation Fidelity Equity
Common Magellan Fidelity Income
Total Stock Fund Contrafund Fund
------------ ----------- ----------- ---------- ----------
<S> <C> <C> <C> <C> <C>
ASSETS
INVESTMENTS, at fair value:
Oracle Systems Corporation Common Stock $ 30,467,960 $30,467,960 $ - $ - $ -
Fidelity Retirement Money Market Fund 5,828,959 - - - -
Fidelity Growth and Income Fund 13,268,573 - - - -
Fidelity International Growth and
Income Fund 10,134,727 - - - -
Fidelity Managed Income Fund 7,678,768 - - - -
Fidelity Contrafund 8,604,334 - - 8,604,334 -
Fidelity Disciplined Equity Fund 1,935,910 - - - -
Fidelity Balanced Fund 3,146,442 - - - -
Fidelilty Intermediate Bond Fund 1,348,506 - - - -
Fidelity Growth Company Fund 5,011,135 - - - -
Fidelity Equity-Income Fund 3,073,277 - - - 3,073,277
Fidelity Magellan Fund 15,255,321 - 15,255,321 - -
Cash equivalents 314,547 314,547 - - -
Loans to members 1,539,232 - - - -
------------ ----------- ----------- ---------- ----------
TOTAL INVESTMENTS 107,607,691 30,782,507 15,255,321 8,604,334 3,073,277
Contribution receivable-
Participants 795,018 154,287 156,786 86,929 34,459
Company 347,401 66,642 67,277 38,155 14,229
Dividend/interest receivable 2,132 2,132 - - -
------------ ----------- ----------- ---------- ----------
TOTAL PLAN ASSETS 108,752,242 31,005,568 15,479,384 8,729,418 3,121,965
LIABILITIES - - - - -
------------ ----------- ----------- ---------- ----------
NET ASSETS AVAILABLE FOR BENEFITS $108,752,242 $31,005,568 $15,479,384 $8,729,418 $3,121,965
============ =========== =========== ========== ==========
</TABLE>
<TABLE>
<CAPTION>
FUND INFORMATION
------------------------------------------------------------------------------
Fidelity
Fidelity Fidelity International
Growth Growth and Fidelity Fidelity Growth and
Company Income Intermediate Balanced Income
Fund Fund Bond Fund Fund Fund
---------- ----------- ------------ ----------- -------------
<S> <C> <C> <C> <C> <C>
ASSETS
INVESTMENTS, at fair value:
Oracle Systems Corporation Common Stock $ - $ - $ - $ - $ -
Fidelity Retirement Money Market Fund - - - - -
Fidelity Growth and Income Fund - 13,268,573 - - -
Fidelity International Growth and
Income Fund - - - - 10,134,727
Fidelity Managed Income Fund - - - - -
Fidelity Contrafund - - - - -
Fidelity Disciplined Equity Fund - - - - -
Fidelity Balanced Fund - - - 3,146,442 -
Fidelilty Intermediate Bond Fund - - 1,348,506 - -
Fidelity Growth Company Fund 5,011,135 - - - -
Fidelity Equity-Income Fund - - - - -
Fidelity Magellan Fund - - - - -
Cash equivalents - - - - -
Loans to members - - - - -
---------- ----------- ---------- ---------- -----------
TOTAL INVESTMENTS 5,011,135 13,268,573 1,348,506 3,146,442 10,134,727
Contribution receivable-
Participants 54,017 84,067 15,721 38,271 77,294
Company 23,267 40,477 6,056 15,073 35,146
Dividend/interest receivable - - - - -
---------- ----------- ---------- ---------- -----------
TOTAL PLAN ASSETS 5,088,419 13,393,117 1,370,283 3,199,786 10,247,167
LIABILITIES - - - - -
---------- ----------- ---------- ---------- -----------
NET ASSETS AVAILABLE FOR BENEFITS $5,088,419 $13,393,117 $1,370,283 $3,199,786 $10,247,167
========== =========== ========== ========== ===========
</TABLE>
<TABLE>
<CAPTION>
FUND INFORMATION
------------------------------------------------------------
Fidelity Fidelity Fidelity
Disciplined Retirement Managed
Equity Money Market Income Participant
Fund Fund Fund Loans
----------- ------------ -------- -----------
<S> <C> <C> <C> <C>
ASSETS
INVESTMENTS, at fair value:
Oracle Systems Corporation Common Stock $ - $ - $ - $ -
Fidelity Retirement Money Market Fund - 5,828,959 - -
Fidelity Growth and Income Fund - - - -
Fidelity International Growth and
Income Fund - - - -
Fidelity Managed Income Fund - - 7,678,768 -
Fidelity Contrafund - - - -
Fidelity Disciplined Equity Fund 1,935,910 - - -
Fidelity Balanced Fund - - - -
Fidelilty Intermediate Bond Fund - - - -
Fidelity Growth Company Fund - - - -
Fidelity Equity-Income Fund - - - -
Fidelity Magellan Fund - - - -
Cash equivalents - - - -
Loans to members - - - 1,539,232
---------- ---------- ---------- ----------
TOTAL INVESTMENTS 1,935,910 5,828,959 7,678,768 1,539,232
Contribution receivable-
Participants 24,220 32,968 35,999 -
Company 9,660 13,356 18,063 -
Dividend/interest receivable - - - -
---------- ---------- ---------- ----------
TOTAL PLAN ASSETS 1,969,790 5,875,283 7,732,830 1,539,232
LIABILITIES - - - -
---------- ---------- ---------- ----------
NET ASSETS AVAILABLE FOR BENEFITS $1,969,790 $5,875,283 $7,732,830 $1,539,232
========== ========== ========== ==========
</TABLE>
The accompanying notes are an integral part of this statement.
- 1 -
<PAGE> 6
ORACLE CORPORATION
401(k) SAVINGS AND INVESTMENT PLAN
EIN 94-2871189
PLAN 001
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS
AS OF DECEMBER 31, 1993
<TABLE>
<CAPTION>
FUND INFORMATION
------------------------------------------------------
Merrill Merrill Merrill
Lynch Lynch Lynch
Guaranteed Institutional Capital
Total Fund Fund Fund
----------- ----------- ------------- ------------
<S> <C> <C> <C> <C>
ASSETS
INVESTMENTS, at fair value:
Oracle Systems Corporation Common Stock $16,573,887 $ - $ - $ -
Merrill Lynch Institutional Fund 354,066 354,066
Merrill Lynch Capital Fund 16,657,997 - - 16,657,997
Merrill Lynch Pacific Fund 9,787,715 - - -
Merrill Lynch Guaranteed Fund 10,371,006 10,371,006 - -
Cash equivalents 1,311,486 417,247 385,057 197,382
Loans to members 1,096,171 202,500 282,581 196,584
----------- ----------- ---------- -----------
Total investments 56,152,328 10,990,753 1,021,704 17,051,963
CASH 6,021,431 - 6,021,431 -
----------- ----------- ---------- -----------
TOTAL PLAN ASSETS 62,173,759 10,990,753 7,043,135 17,051,963
LIABILITIES - - - -
----------- ----------- ---------- -----------
NET ASSETS AVAILABLE FOR BENEFITS $62,173,759 $10,990,753 $7,043,135 $17,051,963
=========== =========== ========== ===========
</TABLE>
<TABLE>
<CAPTION>
FUND INFORMATION
-------------------------------
Oracle
Merrill Systems
Lynch Corporation
Pacific Common
Fund Stock
----------- -----------
<S> <C> <C>
ASSETS
INVESTMENTS, at fair value:
Oracle Systems Corporation Common Stock $ - $16,573,887
Merrill Lynch Institutional Fund
Merrill Lynch Capital Fund - -
Merrill Lynch Pacific Fund 9,787,715 -
Merrill Lynch Guaranteed Fund - -
Cash equivalents 165,748 146,052
Loans to members 106,404 308,102
---------- -----------
Total investments 10,059,867 17,028,041
CASH - -
----------- -----------
TOTAL PLAN ASSETS 10,059,867 17,028,041
LIABILITIES - -
----------- -----------
NET ASSETS AVAILABLE FOR BENEFITS $10,059,867 $17,028,041
=========== ===========
</TABLE>
The accompanying notes are an integral part of this statement.
- 2 -
<PAGE> 7
ORACLE CORPORATION
401(k) SAVINGS AND INVESTMENT PLAN
EIN 94-2871189
PLAN 001
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
FOR THE YEAR ENDED DECEMBER 31, 1994
<TABLE>
<CAPTION>
FUND INFORMATION
-------------------------------------------------------------------
Oracle
Merrill Merrill Merrill Merrill Systems
Lynch Lynch Lynch Lynch Corporation
Guaranteed Institutional Capital Pacific Common
Total Fund Fund Fund Fund Stock
------------ ----------- ------------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
ADDITIONS:
Employee Contributions $ 23,833,734 $ - $ - $ - $ - $ 4,279,458
Employer Contributions 8,358,596 - - - - 1,509,387
Rollovers 8,371,715 - - - - 1,120,762
------------ ----------- ----------- ----------- ----------- -----------
40,564,045 - - - - 6,909,607
Investment income
Dividends and Interest 2,715,485 97 91 46 35 91
Net realized and
unrealized
appreciation in fair
value of investments 7,179,226 - - (18,008) (198,874) 9,531,735
------------ ----------- ----------- ----------- ----------- -----------
Total additions 50,458,756 97 91 (17,962) (198,839) 16,441,433
DEDUCTIONS:
Distribution of
benefits to
participants (3,880,273) - - - - (687,659)
------------ ----------- ----------- ----------- ----------- -----------
Net additions 46,578,483 97 91 (17,962) (198,839) 15,753,774
TRANSFERS:
Transfers between
investment options - - - - - (1,252,787)
Transfers from Merrill
Lynch - (10,990,850) (7,043,226) (17,034,001) (9,861,028) (371,774)
Loan repayments - - - - - 120,622
Loans granted - - - - - (272,308)
------------ ----------- ----------- ----------- ----------- -----------
Net Transfers - (10,990,850) (7,043,226) (17,034,001) (9,861,028) (1,776,247)
Net increase/
(decrease) 46,578,483 (10,990,753) (7,043,135) (17,051,963) (10,059,867) 13,977,527
NET ASSETS AVAILABLE FOR
BENEFITS AT BEGINNING
OF YEAR 62,173,759 10,990,753 7,043,135 17,051,963 10,059,867 17,028,041
------------ ----------- ----------- ----------- ----------- -----------
NET ASSETS AVAILABLE FOR
BENEFITS AT END OF
YEAR $108,752,242 $ - $ - $ - $ - $31,005,568
============ =========== =========== =========== =========== ===========
</TABLE>
<PAGE> 8
<TABLE>
<CAPTION>
FUND INFORMATION
----------------------------------------------------------------------------------------------
Fidelity Fidelity Fidelity Fidelity
Fidelity Equity Growth Growth and Intermediate Fidelity
Magellan Fidelity Income Company Income Bond Balanced
Fund Contrafund Fund Fund Fund Fund Fund
----------- ----------- ---------- ---------- ----------- ---------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
ADDITIONS:
Employee Contributions $ 4,677,457 $2,651,088 $ 841,617 $1,563,336 $ 3,009,255 $ 385,745 $ 939,153
Employer Contributions 1,649,865 895,519 296,541 537,933 1,071,968 135,388 328,197
Rollovers 1,660,334 659,167 634,926 590,177 961,553 308,785 555,300
----------- ---------- ---------- ---------- ----------- ---------- ----------
7,987,656 4,205,774 1,773,084 2,691,446 5,042,776 829,918 1,822,650
Investment income
Dividends and Interest 410,119 2,779 173,705 179,414 917,421 51,155 58,682
Net realized and
unrealized
appreciation in fair
value of investments (369,658) 46,419 (161,596) (122,707) (810,586) (42,725) (109,137)
----------- ---------- ---------- ---------- ----------- ---------- ----------
Total additions 8,028,117 4,254,972 1,785,193 2,748,153 5,149,611 838,348 1,772,195
DEDUCTIONS:
Distribution of
benefits to
participants (494,286) (292,640) (57,734) (108,596) (688,742) (29,422) (113,294)
----------- ---------- ---------- ---------- ----------- ---------- ----------
Net additions 7,533,831 3,962,332 1,727,459 2,639,557 4,460,869 808,926 1,658,901
TRANSFERS:
Transfers between
investment options 8,047,583 4,802,281 1,410,083 2,479,992 (7,873,115) 570,828 1,549,466
Transfers from Merrill
Lynch - - - - 16,859,008 - -
Loan repayments 90,916 16,354 15,462 7,715 43,060 2,193 13,793
Loans granted (192,946) (51,549) (31,039) (38,845) (96,705) (11,664) (22,374)
----------- ---------- ---------- ---------- ----------- ---------- ----------
Net Transfers 7,945,553 4,767,086 1,394,506 2,448,862 8,932,248 561,357 1,540,885
Net increase/
(decrease) 15,479,384 8,729,418 3,121,965 5,088,419 13,393,117 1,370,283 3,199,786
NET ASSETS AVAILABLE FOR
BENEFITS AT BEGINNING
OF YEAR - - - - - - -
----------- ---------- ---------- ---------- ----------- ---------- ----------
NET ASSETS AVAILABLE FOR
BENEFITS AT END OF
YEAR $15,479,384 $8,729,418 $3,121,965 $5,088,419 $13,393,117 $1,370,283 $3,199,786
=========== ========== ========== ========== =========== ========== ==========
</TABLE>
<PAGE> 9
<TABLE>
<CAPTION>
FUND INFORMATION
------------------------------------------------------------------
Fidelity
International Fidelity Fidelity Fidelity
Growth and Disciplined Retirement Managed
Income Equity Money Market Income Participant
Fund Fund Fund Fund Loans
----------- ---------- ---------- ----------- ----------
<S> <C> <C> <C> <C> <C>
ADDITIONS:
Employee Contributions $ 2,604,237 $ 613,520 $ 926,755 $ 1,342,113 $ -
Employer Contributions 905,902 205,295 325,064 497,537 -
Rollovers 691,110 302,401 485,278 401,922 -
----------- ---------- ---------- ----------- ----------
4,201,249 1,121,216 1,737,097 2,241,572 -
Investment income
Dividends and Interest 96,098 77,651 223,920 456,061 68,120
Net realized and
unrealized
appreciation in fair
value of investments (532,369) (33,268) - - -
----------- ---------- ---------- ----------- ----------
Total additions 3,764,978 1,165,599 1,961,017 2,697,633 68,120
DEDUCTIONS:
Distribution of
benefits to
participants (455,215) (44,005) (291,763) (529,608) (87,309)
----------- ---------- ---------- ----------- ----------
Net additions 3,309,763 1,121,594 1,669,254 2,168,025 (19,189)
TRANSFERS:
Transfers between
investment options (2,774,104) 855,948 (2,562,067) (5,185,988) (68,120)
Transfers from Merrill
Lynch 9,762,737 - 6,794,709 10,788,254 1,096,171
Loan repayments 24,290 3,181 17,575 20,576 (375,737)
Loans granted (75,519) (10,933) (44,188) (58,037) 906,107
----------- ---------- ---------- ----------- ----------
Net Transfers 6,937,404 848,196 4,206,029 5,564,805 1,558,421
Net increase/
(decrease) 10,247,167 1,969,790 5,875,283 7,732,830 1,539,232
NET ASSETS AVAILABLE FOR
BENEFITS AT BEGINNING
OF YEAR - - - - -
----------- ---------- ---------- ----------- ----------
NET ASSETS AVAILABLE FOR
BENEFITS AT END OF
YEAR $10,247,167 $1,969,790 $5,875,283 $ 7,732,830 $1,539,232
=========== ========== ========== =========== ==========
</TABLE>
The accompanying notes are an integral part of this statement.
- 3 -
<PAGE> 10
ORACLE CORPORATION
401(k) SAVINGS AND INVESTMENT PLAN
EIN 94-2871189
PLAN 001
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1994
1. THE PLAN:
The following brief description of the Plan is provided for general information
purposes only. Participants should refer to the Plan agreement for more
complete information.
Oracle Systems Corporation (Oracle Corporation as of June 1, 1995, hereinafter
the "Company") established the Oracle Corporation 401(k) Savings and
Investment Plan effective January 1, 1986. Effective January 1, 1990, the
plan was restated as the Oracle Corporation 401(k) Savings and Investment Plan
(the "Plan"). The Plan, as restated, allows participants to invest in the
common stock of Oracle Systems Corporation as well as other investment options.
The Plan is subject to the provisions of the Employee Retirement Income
Security Act of 1974.
All employees regularly scheduled to work a minimum of thirty hours per week on
the domestic payroll of the Company and its subsidiaries that have adopted the
Plan are eligible to participate in the Plan on the first monthly entry date
following their date of hire. The Company may, at its sole discretion, amend
or terminate the Plan. The Plan is administered by plan administrators
appointed by the Company. Effective January 4, 1994, Fidelity Investments
assumed responsibility for trustee and record keeper duties, and all plan
assets were transferred from Merrill Lynch Funds to Fidelity Investment Funds.
Fidelity maintains individual investment accounts for all participants and
provides participants with periodic activity statements.
Participants may elect to defer up to 15% of their annual compensation to the
Plan. Annual additions to each participant's account are limited, based upon
Internal Revenue Service regulations. For the Plan year ended December 31,
1994, the IRS maximum allowable contributions was $9,240.
Generally, contributions made in accordance with the Plan and the earnings on
those contributions will not be treated as taxable income to the participants
until such amounts are distributed and received by the participants as allowed
by Section 401(k) of the Internal Revenue Code.
Employee contributions are fully vested and nonforfeitable. Employer match
contributions vest based on years of service and are fully vested after five
years of service. Each participant has the right to direct the investment of
- 4 -
<PAGE> 11
such contributions and may borrow from their participant accounts in accordance
with Plan guidelines.
Twelve investment funds (including Oracle Systems Corporation Common Stock) are
available for the purpose of providing participants with a choice as to
investment options. Participants may change the allocation of their
contributions and matching contributions on a daily basis.
Generally, distributions are made only upon termination of employment or for
reasons of retirement, death or disability. However, withdrawals may be made
in the event of certain other conditions as specified in the Plan, such as
financial hardship or termination of the Plan. Approximately $216,000 and
$80,000 of net assets available for benefits was in the process of being
distributed at December 31, 1994 and 1993, respectively, based upon requests
from participants.
The Plan specifies criteria whereby participants can obtain loans against their
account balances. Generally such loans must be for at least $1,000, cannot
exceed $50,000, bear interest at the Eleventh District cost of funds plus two
points (6.6% at December 31, 1994) and generally become due in five to ten
years.
In conjunction with the change in trustees, the 401(k) committee approved
certain changes to the Plan effective January 1, 1994 including allowing
employees to enter the Plan or change their contribution percentage on a
monthly basis, implementing employer contributions equal to 50% of the
employee's first 6% in contributions, and vesting for breaks-in-service and
expatriates.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
General
The accounts of the Plan are maintained on the cash basis of accounting. The
accompanying statements of net assets available for benefits and statement of
changes in net assets available for benefits include all material adjustments
necessary to present them on the accrual basis of accounting in accordance with
generally accepted accounting principles.
Cash Equivalents
Cash equivalents consist of monies invested in Fidelity money market accounts.
Valuation of Investments
Investments are stated at fair value, defined as follows: Investments in
Oracle Systems Corporation's common stock are valued at the closing price of
the stock as of the end of the Plan year as reported by the NASDAQ national
market system. Investments in the Fidelity Funds are valued at the closing
market price as of the end of the Plan year.
The Oracle Stock Fund is tracked on a unitized basis. The Fund is made up of
Oracle common stock and cash to allow the fund to meet its daily cash needs.
Unitizing the Fund allows for daily trades. The value of a unit reflects the
- 5 -
<PAGE> 12
combined market value of Oracle common stock and the cash investments held by
the Fund.
The difference between fair value at December 31, 1994, and the current period
cost of investments (the fair value at the beginning of the year or the cost of
purchase during the year as applicable) is reflected as appreciation
(depreciation) in fair value of investments in the accompanying statements of
changes in net assets available for benefits.
3. POTENTIAL CLASS ACTION RECOVERY:
The Plan is a member of a plaintiff's class in a class action and stockholder
derivative lawsuit filed against the Company on or after March 28, 1990. The
class action was brought by and on behalf of purchasers of the Company's common
stock during the period July 11, 1989 through September 28, 1990. On February
1, 1993, all parties entered into agreements to settle the class action lawsuit
and certain derivative suits. Subsequent to year end, a settlement was reached
resulting in an immaterial recovery for the Plan. The funds will be allocated
to participant accounts based on the number of shares of Oracle stock purchased
during the period from July 11, 1989 through September 28, 1990.
4. INCOME TAXES:
The trust established under the Plan is qualified under the Internal Revenue
Code as exempt from Federal income taxes. Although the Plan has a favorable
determination letter from the Internal Revenue Service ("IRS"), it has not yet
been updated for the 1990 restatement. The Company and its counsel are of the
opinion that the Plan is designed and being operated in accordance with
applicable IRS requirements and, therefore, the trust continues to be
tax-exempt.
5. PLAN TERMINATION:
Although the Company has no intention of terminating the Plan, it may do so at
any time by resolution of the Board of Directors. In the event that the Plan
is terminated, the net assets of the Plan shall be distributed to each
participant in the amount credited to his/her account.
- 6 -
<PAGE> 13
ORACLE CORPORATION
401(k) SAVINGS AND INVESTMENT PLAN
EIN 94-2871189
PLAN NUMBER 001
ITEM 27a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
DECEMBER 31, 1994
<TABLE>
<CAPTION>
(e)
(b) (c) (d) Current
(a) Identity of Issue Description Shares Cost Value
- --- --------------------------------- ------------------------- ----------- -----------
<S> <C> <C> <C> <C>
* Oracle Systems Corporation 690,492 shares of
Common Stock common stock $13,179,003 $ 30,467,960
* FMTC U.S. Government Reserves 314,547 shares of money
market investments 314,547 314,547
* Fidelity Magellan Fund 228,373 shares of mutual
fund investments 15,590,969 15,255,321
* Fidelity Contrafund Fund 284,159 shares of mutual
fund investments 8,563,119 8,604,334
* Fidelity Equity Income Fund 100,107 shares of mutual
fund investments 3,234,666 3,073,277
* Fidelity Growth Company Fund 183,827 shares of mutual
fund investments 5,136,282 5,011,135
* Fidelity Growth & Income Fund 629,141 shares of mutual
fund investments 13,879,638 13,268,573
* Fidelity Intermediate Bond Fund 137,183 shares of mutual
fund investments 1,388,495 1,348,506
* Fidelity Balanced Fund 256,016 shares of mutual
fund investments 3,249,744 3,146,442
* Fidelity International Growth 613,111 shares of mutual
and Income Fund fund investments 10,751,059 10,134,727
* Fidelity Disciplined Equity Fund 107,910 shares of mutual 1,969,109 1,935,910
fund investments
* Fidelity Retirement Money Market 5,828,959 shares of money
Fund market investments 5,828,959 5,828,959
* Fidelity Managed Income Portfolio 7,678,768 share of
guaranteed contract 7,678,768 7,678,768
investments
* Participant loans 6% - 13% interest; secured
by account balance 1,539,232 1,539,232
----------- ------------
TOTAL MARKET VALUE 12/31/94: $92,303,590 $107,607,691
=========== ============
</TABLE>
*Party-In-Interest
- 7 -
<PAGE> 14
ORACLE CORPORATION
401(k) SAVINGS AND INVESTMENT PLAN
EIN 94-2871189
PLAN NUMBER 001
ITEM 27d - SCHEDULE OF REPORTABLE TRANSACTIONS
FOR THE YEAR ENDED DECEMBER 31, 1994
<TABLE>
<CAPTION>
Number of
Transactions (c) (d)
(a) (b) ----------------- Purchase Selling
Identity of Party Involved Description of Asset Purchases Sales Price Price
- -------------------------------------------- --------------------- --------- ----- --------- -------
<S> <C> <C> <C> <C> <C>
*Merrill Lynch CMA Money Fund and Government
Securities Fund Money Market Investments 11 - $ 6,166,411 $ -
- 15 - 7,595,302
*Merrill Lynch Capital Fund Mutual Fund Investment - 1 - 16,771,356
*Merrill Lynch Pacific Fund Mutual Fund Investment - 2 - 9,648,647
*Merrill Lynch Guaranteed Fund Mutual Fund Investment - 1 - 10,568,732
*Oracle Systems Corporation Common Stock Common Stock 41 - 8,299,247 -
- 39 - 3,760,117
*Fidelity FMTC U.S. Government Reserves Money Market Investments 129 - 11,208,620 -
- 91 - 10,894,074
*Fidelity Managed Income Fund Mutual Fund Investment 156 - 14,229,038 -
- 99 - 6,550,269
*Fidelity Retirement Money Market Fund Money Market Investments 160 - 10,058,686 -
- 100 - 4,229,396
*Fidelity Growth and Income Fund Mutual Fund Investment 172 - 23,636,550 -
- 119 - 9,521,424
*Fidelity International Growth and Income Fund Mutual Fund Investment 173 - 15,960,385 -
- 117 - 4,861,957
*Fidelity Contrafund Mutual Fund Investment 170 - 9,342,645 -
- 90 - 784,730
*Fidelity Balanced Fund Mutual Fund Investment 129 - 3,606,479 -
- 66 - 350,899
*Fidelity Growth Company Fund Mutual Fund Investment 142 - 5,423,167 -
- 71 - 289,325
*Fidelity Equity Income Fund Mutual Fund Investment 129 - 3,422,334 -
- 55 - 187,461
*Fidelity Magellan Fund Mutual Fund Investment 182 - 17,034,964 -
- 118 - 1,409,984
* Party-In-Interest
</TABLE>
<PAGE> 15
<TABLE>
<CAPTION>
(f) (h)
Expense Current Value (i)
(e) Incurred (g) of Asset on Net
(a) Lease with Cost of Transaction Gain or
Identity of Party Involved Rental Transaction Asset Date (Loss)
- -------------------------------------------- ------- ----------- ------- ------------- --------
<S> <C> <C> <C> <C> <C>
*Merrill Lynch CMA Money Fund and Government
Securities Fund $ - $ - $ 6,166,411 $ 6,166,411 $ -
- - 7,595,302 7,595,302 -
*Merrill Lynch Capital Fund - - 16,275,525 16,771,356 495,831
*Merrill Lynch Pacific Fund - - 8,784,532 9,648,647 864,115
*Merrill Lynch Guaranteed Fund - - 10,568,732 10,568,732 -
*Oracle Systems Corporation Common Stock - - 8,299,247 8,299,247 -
- - 1,353,734 3,760,117 2,406,383
*Fidelity FMTC U.S. Government Reserves - - 11,208,620 11,208,620 -
- - 10,894,074 10,894,074 -
*Fidelity Managed Income Fund - - 14,229,038 14,229,038 -
- - 6,550,269 6,550,269 -
*Fidelity Retirement Money Market Fund - - 10,058,686 10,058,686 -
- - 4,229,396 4,229,396 -
*Fidelity Growth and Income Fund - - 23,636,550 23,636,550 -
- - 9,738,953 9,521,424 (217,529)
*Fidelity International Growth and Income Fund - - 15,960,385 15,960,385 -
- - 4,993,264 4,861,957 (131,307)
*Fidelity Contrafund - - 9,342,645 9,342,645 -
- - 779,526 784,730 5,204
*Fidelity Balanced Fund - - 3,606,479 3,606,479 -
- - 356,734 350,899 (5,835)
*Fidelity Growth Company Fund - - 5,423,167 5,423,167 -
- - 286,884 289,325 2,441
*Fidelity Equity Income Fund - - 3,422,334 3,422,334 -
- - 187,668 187,461 (207)
*Fidelity Magellan Fund - - 17,034,964 17,034,964 -
- - 1,443,995 1,409,984 (34,011)
* Party-In-Interest
</TABLE>
- 8 -
<PAGE> 16
SIGNATURES
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 its behalf by the undersigned hereunto duly
authorized.
Dated: June 26, 1995
ORACLE CORPORATION
401(K) SAVINGS AND INVESTMENT PLAN
/s/ Phillip Wilson
----------------------------------
PHILLIP WILSON
CHAIRPERSON
OF THE
ADMINISTRATIVE COMMITTEE
<PAGE> 17
INDEX TO EXHIBITS
<TABLE>
<CAPTION>
Exhibit No. Sequential
Number Description Page No.
- ----------------- ----------------------------------------- ---------------------
<S> <C>
23 Consent of Arthur Andersen LLP
</TABLE>
<PAGE> 1
EXHIBIT 23
CONSENT OF INDEPENDENT PUBLIC ACCOUNTANTS
As independent public accountants, we hereby consent to the
incorporation of our report included in this Form 11-K, into the Company's
previously filed Registration Statement on Form S-8 File No. 33-33564.
ARTHUR ANDERSEN LLP
San Jose, California
June 26, 1995
