EX-12.01 2 d385998dex1201.htm EX-12.01 EX-12.01

Exhibit 12.01

ORACLE CORPORATION

CONSOLIDATED RATIO OF EARNINGS TO FIXED CHARGES

(Unaudited)

 

     Year Ended May 31,  

(Dollars in millions)

    2017      2016      2015      2014      2013  

Earnings(1)

               

Income before provision for income taxes

    $ 11,517      $ 11,442      $ 12,834      $ 13,704      $ 13,898  

Add: Noncontrolling interests

      118        116        113        98        112  

Add: Fixed Charges

      1,836        1,506        1,190        968        850  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total earnings

    $ 13,471      $ 13,064      $ 14,137      $ 14,770      $ 14,860  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Fixed Charges(2)

               

Interest expense

    $ 1,798      $ 1,467      $ 1,143      $ 914      $ 797  

Estimate of interest in rent expense

      38        39        47        54        53  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total fixed charges

    $ 1,836      $ 1,506      $ 1,190      $ 968      $ 850  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Ratio of earnings to fixed charges

      7x        9x        12x        15x        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.