Exhibit 12.01
ORACLE CORPORATION
CONOSOLIDATED RATIO OF EARNINGS TO FIXED CHARGES
(Unaudited)
Year Ended May 31, | ||||||||||||||||||||
(Dollars in millions) | 2016 | 2015 | 2014 | 2013 | 2012 | |||||||||||||||
Earnings(1) | ||||||||||||||||||||
Income before provision for income taxes | $ | 11,442 | $ | 12,834 | $ | 13,704 | $ | 13,898 | $ | 12,962 | ||||||||||
Add: Noncontrolling interests | 116 | 113 | 98 | 112 | 119 | |||||||||||||||
Add: Fixed charges | 1,506 | 1,190 | 968 | 850 | 827 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total earnings | $ | 13,064 | $ | 14,137 | $ | 14,770 | $ | 14,860 | $ | 13,908 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Fixed Charges(2) | ||||||||||||||||||||
Interest expense | $ | 1,467 | $ | 1,143 | $ | 914 | $ | 797 | $ | 766 | ||||||||||
Estimate of interest in rent expense | 39 | 47 | 54 | 53 | 61 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total fixed charges | $ | 1,506 | $ | 1,190 | $ | 968 | $ | 850 | $ | 827 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Ratio of earnings to fixed charges | 9x | 12x | 15x | 17x | 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.