ORACLE CORP Fair Value Disclosure
We perform fair value measurements in accordance with 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, we consider the principal or most advantageous market in which we would transact and consider 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 an entity 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:
Assets and Liabilities Measured at Fair Value on a Recurring Basis
Our assets and liabilities measured at fair value on a recurring basis consisted of the following (Level 1 and Level 2 inputs are defined above):
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May 31, 2025 |
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May 31, 2024 |
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Fair Value Measurements |
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Fair Value Measurements |
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(in millions) |
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Level 1 |
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Level 2 |
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Total |
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Level 1 |
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Level 2 |
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Total |
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Assets: |
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Money market funds |
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$ |
2,220 |
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$ |
— |
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$ |
2,220 |
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$ |
2,620 |
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$ |
— |
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$ |
2,620 |
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Time deposits and other |
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59 |
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526 |
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585 |
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48 |
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262 |
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310 |
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Derivative financial instruments |
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— |
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54 |
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54 |
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— |
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179 |
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179 |
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Total assets |
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$ |
2,279 |
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$ |
580 |
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$ |
2,859 |
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$ |
2,668 |
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$ |
441 |
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$ |
3,109 |
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Liabilities: |
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Derivative financial instruments |
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$ |
— |
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$ |
26 |
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$ |
26 |
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$ |
— |
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$ |
96 |
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$ |
96 |
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Our valuation techniques used to measure the fair values of our instruments that were classified as Level 1 in the table above were derived from quoted market prices and active markets for these instruments that exist. Our valuation techniques used to measure the fair values of Level 2 instruments listed in the table above were derived from the following: non-binding market consensus prices that were corroborated by observable market data, quoted market prices for similar instruments, or pricing models, such as discounted cash flow techniques, with all significant inputs derived from or corroborated by observable market data including reference rate yield curves, among others.
Based on the trading prices of the $90.3 billion and $86.5 billion of senior notes and other long-term borrowings and the related fair value hedges (refer to Note 6 for additional information) that we had outstanding as of May 31, 2025 and 2024, respectively, the estimated fair values of the senior notes and other long-term borrowings and the related fair value hedges using Level 2 inputs at May 31, 2025 and 2024 were $81.3 billion and $77.2 billion, respectively.Historical Timeline
| Fiscal Year | Filed | |
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| 2025 | Jun 18, 2025 | Showing above |
| 2024 | Jun 20, 2024 | |
| 2023 | Jun 20, 2023 | |
| 2022 | Jun 21, 2022 | |
| 2021 | Jun 21, 2021 | |
| 2020 | Jun 22, 2020 | |
| 2019 | Jun 21, 2019 | |
| 2018 | Jun 22, 2018 | |
| 2017 | Jun 27, 2017 | |
| 2016 | Jun 22, 2016 | |
About Fair Value Disclosures
Fair value disclosures classify all assets and liabilities measured at fair value into a three-level hierarchy: Level 1 (quoted market prices), Level 2 (observable inputs like yield curves), and Level 3 (unobservable inputs requiring management estimates). The proportion of Level 3 assets directly reflects how much of the balance sheet depends on internal models rather than market evidence.
Key signals: a growing Level 3 balance relative to total fair-value assets increases valuation uncertainty and earnings volatility risk. Watch for transfers between levels — assets moving from Level 2 to Level 3 often signal deteriorating market liquidity. Unrealized gains and losses on Level 3 positions flow through earnings or other comprehensive income, so large swings deserve scrutiny. For financial institutions, examine the sensitivity disclosures that show how Level 3 valuations change under alternative assumptions. Compare the fair value of debt against its carrying amount to gauge hidden leverage.