of fiscal 2014 and 2013 related to employee severance and facility exit
costs in connection with our Fiscal 2013 Oracle Restructuring Plan (the 2013
Restructuring Plan). Additional information regarding certain of our
restructuring plans is provided in Note 7 of Notes to Condensed Consolidated
Financial Statements included elsewhere in this Quarterly Report.
(5) Stock-based compensation was included in the following operating expense
line items of our condensed consolidated statements of operations (in millions): Three Months Ended August 31, 2013 2012 Sales and marketing
$ 41 $ 37Software license updates and product support 6 5 Hardware systems products 2 - Hardware systems support 3 1 Services 7 9 Research and development 97 83 General and administrative 42 41 Subtotal 198 176 Acquisition related and other 2 17 Total stock-based compensation $ 200 $ 193
Stock-based compensation included in acquisition related and other expenses
resulted from unvested stock options and restricted stock-based awards assumed
from acquisitions whose vesting was accelerated upon termination of the employees pursuant to the terms of those stock options and restricted stock-based awards.
(6) The income tax effects presented were calculated as if the above described
charges were not included in our results of operations for each of the respective periods presented. Income tax effects were calculated based on the applicable jurisdictional tax rates applied to the items within the
table above and resulted in an effective tax rate of 21.8% for the first
quarter of fiscal 2014 instead of 17.7%, which represented our effective tax
rate as derived per our condensed consolidated statement of operations,
primarily due to the net tax effects of acquisition related items, including
the tax effect of amortization of intangible assets. Income tax effects were
calculated reflecting an effective tax rate of 23.4% for the first quarter
of fiscal 2013 instead of 24.7%, which represented our effective tax rate as
derived per our condensed consolidated statement of operations, due to the
disproportionate tax rate impact of discrete items for the quarter, the tax
effect of amortization of intangible assets, and differences in jurisdictional tax rates and related tax benefits attributable to our restructuring expenses.
Our software business consists of our new software licenses and cloud software subscriptions segment and software license updates and product support segment.