Exhibit 12.1
ORACLE CORPORATION
CONSOLIDATED RATIO OF EARNINGS TO FIXED CHARGES
(Unaudited)
| Nine Months Ended February 28, | ||||||||
(Dollars in millions) | 2015 | 2014 | ||||||
Earnings(1) | ||||||||
Income before provision for income taxes | $ | 9,137 | $ | 9,116 | ||||
Add: Noncontrolling interests | 100 | 75 | ||||||
Add: Fixed charges | 850 | 711 | ||||||
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Total earnings | $ | 10,087 | $ | 9,902 | ||||
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Fixed Charges(2) | ||||||||
Interest expense | $ | 817 | $ | 674 | ||||
Estimate of interest in rent expense | 33 | 37 | ||||||
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Total fixed charges | $ | 850 | $ | 711 | ||||
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Ratio of earnings to fixed charges | 12x | 14x | ||||||
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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.