Exhibit 12.01
ORACLE CORPORATION
Consolidated Ratio of Earnings to Fixed Charges
Nine Months Ended | Year Ended May 31, | |||||||||||||||||||||||||||
(Dollars in millions) | February 29, 2016 | February 28, 2015 | 2015 | 2014 | 2013 | 2012 | 2011 | |||||||||||||||||||||
Earnings(1) | ||||||||||||||||||||||||||||
Income before provision for income taxes | $ | 7,710 | $ | 9,137 | $ | 12,834 | $ | 13,704 | $ | 13,898 | $ | 12,962 | $ | 11,411 | ||||||||||||||
Add: Noncontrolling interests | 95 | 100 | 113 | 98 | 112 | 119 | 97 | |||||||||||||||||||||
Add: Fixed charges | 1,144 | 850 | 1,190 | 968 | 850 | 827 | 875 | |||||||||||||||||||||
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Total earnings | $ | 8,949 | $ | 10,087 | $ | 14,137 | $ | 14,770 | $ | 14,860 | $ | 13,908 | $ | 12,383 | ||||||||||||||
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Fixed Charges(2) | ||||||||||||||||||||||||||||
Interest expense | $ | 1,105 | $ | 817 | $ | 1,143 | $ | 914 | $ | 797 | $ | 766 | $ | 808 | ||||||||||||||
Estimate of interest in rent expense | 39 | 33 | 47 | 54 | 53 | 61 | 67 | |||||||||||||||||||||
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Total fixed charges | $ | 1,144 | $ | 850 | $ | 1,190 | $ | 968 | $ | 850 | $ | 827 | $ | 875 | ||||||||||||||
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Ratio of earnings to fixed charges | 8x | 12x | 12x | 15x | 17x | 17x | 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.