EX-12.01 3 d203801dex1201.htm EX-12.01

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.