EX-12 4 f18059orexv12.htm EXHIBIT 12 exv12
 

Exhibit 12
ORACLE CORPORATION
Consolidated Ratio of Earnings to Fixed Charges
                                                         
    For the Six Months        
    Ended     For the Year Ended  
    November 30,     May 31,  
(Dollars In Millions)   2005     2004     2005     2004     2003     2002     2001  
                                                       
Income before provision for income taxes
   $ 1,854     $ 1,892     $ 4,051     $ 3,945     $ 3,425     $ 3,408     $ 3,971  
Fixed Charges1
                                                        
Interest expensed
     37       11       139       21       16       20       24  
Interest capitalized
     —       —       —       —       1       9       2  
Estimate of interest in rent expense
     16       16       34       38       38       45       40  
 
                                          
Total fixed charges
     53       27       173       59       55       74       66  
 
Earnings2
                                                        
Income before provision for income taxes
   $ 1,854     $ 1,892     $ 4,051     $ 3,945     $ 3,425     $ 3,408     $ 3,971  
Minority interest expense
     17       19       42       37       33       36       39  
Fixed charges
     53       27       173       59       55       74       66  
Less: Interest capitalized
     —       —       —       —       (1 )     (9 )     (2 )
 
                                          
Total earnings
     1,924       1,938       4,266       4,041       3,512       3,509       4,074  
 
Ratio of earnings to fixed charges
     36 x     72 x     25 x     68 x     64 x     47 x     62 x
Pro forma ratio of earnings to fixed charges
     9 x             9 x                                
 
1   The term “fixed charges” means the sum of the following: (a) interest expensed and capitalized, (b) amortized premiums, discounts and capitalized expenses related to indebtedness, (c) an estimate of the interest within rental expense, and (d) preference security dividend requirements of consolidated subsidiaries.
 
2   The term “earnings” is the amount resulting from adding the following: (a) pretax income from continuing operations before adjustment for minority interests in consolidated subsidiaries or income or loss from equity investees, (b) fixed charges, (c) amortization of capitalized interest, (d) distributed income of equity investees, and (e) our share of pre-tax losses of equity investees for which charges arising from guarantees are included in fixed charges, then subtracting the following: (a) interest capitalized, (b) preference security dividend requirements of consolidated subsidiaries and (c) the minority interest in pre-tax income of subsidiaries that have not incurred fixed charges.