Exhibit 12.01
ORACLE CORPORATION
Consolidated Ratio of Earnings to Fixed Charges
(Unaudited)
Year Ended May 31, | ||||||||||||||||||||
(Dollars in millions) | 2012 | 2011 | 2010 | 2009 | 2008 | |||||||||||||||
Earnings(1) | ||||||||||||||||||||
Income before provision for income taxes | $ | 12,962 | $ | 11,411 | $ | 8,243 | $ | 7,834 | $ | 7,834 | ||||||||||
Add: Noncontrolling interests | 119 | 97 | 95 | 84 | 60 | |||||||||||||||
Add: Fixed charges | 827 | 875 | 808 | 685 | 454 | |||||||||||||||
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Total earnings | $ | 13,908 | $ | 12,383 | $ | 9,146 | $ | 8,603 | $ | 8,348 | ||||||||||
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Fixed Charges(2) | ||||||||||||||||||||
Interest expense | $ | 766 | $ | 808 | $ | 754 | $ | 630 | $ | 394 | ||||||||||
Estimate of interest in rent expense | 61 | 67 | 54 | 55 | 60 | |||||||||||||||
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Total fixed charges | $ | 827 | $ | 875 | $ | 808 | $ | 685 | $ | 454 | ||||||||||
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Ratio of earnings to fixed charges | 17x | 14x | 11x | 13x | 18x | |||||||||||||||
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(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.