EX-12.1 6 dex121.htm STATEMENT RE: COMPUTATION OF CONSOLIDATED RATIO OF EARNINGS TO FIXED CHARGES Statement re: computation of Consolidated Ratio of Earnings to Fixed Charges

Exhibit 12.1

ORACLE CORPORATION

Consolidated Ratio of Earnings to Fixed Charges

 

     Nine Months Ended
February 28,		     Year Ended May 31,  
(in millions)    2007    2006     2006     2005    2004    2003     2002  
     (Unaudited)  

Earnings1

                  

Income before provision for income taxes

    $ 3,722    $ 2,931     $ 4,810     $ 4,051    $ 3,945    $ 3,425     $ 3,408  

Add: Minority interest

      52      27       41       42      37      33       36  

Add: Fixed charges

      276      109       205       173      59      55       74  

Less: Equity in earnings

      —        (3 )     (14 )     —        —        —         —    

Less: Interest capitalized

      —        —         —         —        —        (1 )     (9 )
                                                     

Total earnings

    $ 4,050    $ 3,064     $ 5,042     $ 4,266    $ 4,041    $ 3,512     $ 3,509  
                                                     

Fixed Charges2

                  

Interest expensed

    $ 248    $ 86     $ 169     $ 139    $ 21    $ 16     $ 20  

Interest capitalized

      —        —         —         —        —        1       9  

Estimate of interest in rent expense

      28      23       36       34      38      38       45  
                                                     

Total fixed charges

    $ 276    $ 109     $ 205     $ 173    $ 59    $ 55     $ 74  
                                                     

Ratio of earnings to fixed charges

      14.69x      28.03x       24.56x       24.60x      68.24x      63.84x       47.72x  
                                                     

1

The term “earnings” means the amounts resulting from the following: (a) our income before provision for income taxes, plus (b) the minority interests in the income before provision for income taxes of our majority owned subsidiaries, plus (c) our fixed charges, less (d) our share of our equity investee’s income before provision for income taxes, less (e) our interest capitalized.

2

The term “fixed charges” means the amounts resulting from the following: (a) our interest expensed, plus (b) our interest capitalized, plus (c) our estimate of the interest component of rent expense.

We do not report any shares of preferred stock outstanding in our consolidated financial statements because our outstanding preferred stock is owned by one or more of our wholly-owned subsidiaries. Our ratio of earnings to combined fixed charges and preferred dividends for any given period is equivalent to our ratio of earnings to fixed charges.