EX-12.01 3 dex1201.htm CONSOLIDATED RATIO OF EARNINGS TO FIXED CHARGES Consolidated Ratio of Earnings to Fixed Charges

Exhibit 12.01

ORACLE CORPORATION

Consolidated Ratio of Earnings to Fixed Charges

(Unaudited)

 

     Year Ended May 31,  

(Dollars in millions)

    2011      2010      2009      2008      2007  

Earnings(1)

            

Income before provision for income taxes

    $ 11,411       $ 8,243       $ 7,834       $ 7,834       $ 5,986   

Add: Noncontrolling interests

      97         95         84         60         71   

Add: Fixed charges

      875         808         685         454         380   
                                            

Total earnings

    $ 12,383       $ 9,146       $ 8,603       $ 8,348       $ 6,437   
                                            

Fixed Charges(2)

            

Interest expense

    $ 808       $ 754       $ 630       $ 394       $ 343   

Estimate of interest in rent expense

      67         54         55         60         37   
                                            

Total fixed charges

    $ 875       $ 808       $ 685       $ 454       $ 380   
                                            

Ratio of earnings to fixed charges

      14x         11x         13x         18x         17x   
                                            

 

(1) 

The term “earnings” means the amounts resulting from the following: (a) our income before provision for income taxes, plus (b) the noncontrolling interests in the net income of our majority owned subsidiaries, plus (c) our fixed charges.

 

(2) 

The term “fixed charges” means the amounts resulting from the following: (a) our interest expensed, plus (b) 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.