Exhibit 12.1
ORACLE CORPORATION
Consolidated Ratio of Earnings to Fixed Charges
| Nine Months Ended February 28, |
Year Ended May 31, | ||||||||||||||||||||||||
| (in millions) | 2007 | 2006 | 2006 | 2005 | 2004 | 2003 | 2002 | ||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||||||
| Earnings1 |
|||||||||||||||||||||||||
| Income before provision for income taxes |
$ | 3,722 | $ | 2,931 | $ | 4,810 | $ | 4,051 | $ | 3,945 | $ | 3,425 | $ | 3,408 | |||||||||||
| Add: Minority interest |
52 | 27 | 41 | 42 | 37 | 33 | 36 | ||||||||||||||||||
| Add: Fixed charges |
276 | 109 | 205 | 173 | 59 | 55 | 74 | ||||||||||||||||||
| Less: Equity in earnings |
— | (3 | ) | (14 | ) | — | — | — | — | ||||||||||||||||
| Less: Interest capitalized |
— | — | — | — | — | (1 | ) | (9 | ) | ||||||||||||||||
| Total earnings |
$ | 4,050 | $ | 3,064 | $ | 5,042 | $ | 4,266 | $ | 4,041 | $ | 3,512 | $ | 3,509 | |||||||||||
| Fixed Charges2 |
|||||||||||||||||||||||||
| Interest expensed |
$ | 248 | $ | 86 | $ | 169 | $ | 139 | $ | 21 | $ | 16 | $ | 20 | |||||||||||
| Interest capitalized |
— | — | — | — | — | 1 | 9 | ||||||||||||||||||
| Estimate of interest in rent expense |
28 | 23 | 36 | 34 | 38 | 38 | 45 | ||||||||||||||||||
| Total fixed charges |
$ | 276 | $ | 109 | $ | 205 | $ | 173 | $ | 59 | $ | 55 | $ | 74 | |||||||||||
| Ratio of earnings to fixed charges |
14.69x | 28.03x | 24.56x | 24.60x | 68.24x | 63.84x | 47.72x | ||||||||||||||||||
| 1 |
The term “earnings” means the amounts resulting from the following: (a) our income before provision for income taxes, plus (b) the minority interests in the income before provision for income taxes 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, less (e) our interest capitalized. |
| 2 |
The term “fixed charges” means the amounts resulting from the following: (a) our interest expensed, plus (b) our interest capitalized, plus (c) 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.