EX-12.1 6 dex121.htm STATEMENT REGARDING COMPUTATION OF CONSOLIDATED RATIO OF EARNINGS Statement regarding computation of Consolidated Ratio of Earnings

Exhibit 12.1

ORACLE CORPORATION

Consolidated Ratio of Earnings to Fixed Charges

(Unaudited)

 

     Nine Months Ended February 28,    Year Ended May 31,

(Dollars in millions)

            2010                    2009            2009    2008    2007    2006     2005

Earnings(1)

                   

Income before provision for income taxes

    $ 5,168    $ 5,079    $ 7,834    $ 7,834    $ 5,986    $ 4,810      $ 4,051

Add: Noncontrolling interests

      63      58      84      60      71      41        42

Add: Fixed charges

      593      514      685      454      380      205        173

Less: Equity in earnings

      -      -      -      -      -      (14 )      -
                    

Total earnings

    $ 5,824    $ 5,651    $ 8,603    $ 8,348    $ 6,437    $ 5,042      $ 4,266
                    

Fixed Charges(2)

                    

Interest expense

    $ 553    $ 471    $ 630    $ 394    $ 343    $ 169      $ 139

Estimate of interest in rent expense

      40      43      55      60      37      36        34
                    

Total fixed charges

    $ 593    $ 514    $ 685    $ 454    $ 380    $ 205      $ 173
                    

Ratio of earnings to fixed charges

      10x      11x      13x      18x      17x      25x        25x
                    

 

(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, less (d) our share of our equity investee’s income before provision for income taxes.

 

( 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.