Exhibit 12.1
ORACLE CORPORATION
Consolidated Ratio of Earnings to Fixed Charges
(Unaudited)
| Year Ended May 31, | ||||||||||||||||||||
| (Dollars in millions) |
2011 | 2010 | 2009 | 2008 | 2007 | |||||||||||||||
| Earnings(1) |
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| Income before provision for income taxes |
$ | 11,411 | $ | 8,243 | $ | 7,834 | $ | 7,834 | $ | 5,986 | ||||||||||
| Add: Noncontrolling interests |
97 | 95 | 84 | 60 | 71 | |||||||||||||||
| Add: Fixed charges |
875 | 808 | 685 | 454 | 380 | |||||||||||||||
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| Total earnings |
$ | 12,383 | $ | 9,146 | $ | 8,603 | $ | 8,348 | $ | 6,437 | ||||||||||
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| Fixed Charges(2) |
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| Interest expense |
$ | 808 | $ | 754 | $ | 630 | $ | 394 | $ | 343 | ||||||||||
| Estimate of interest in rent expense |
67 | 54 | 55 | 60 | 37 | |||||||||||||||
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| Total fixed charges |
$ | 875 | $ | 808 | $ | 685 | $ | 454 | $ | 380 | ||||||||||
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| Ratio of earnings to fixed charges |
14x | 11x | 13x | 18x | 17x | |||||||||||||||
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| (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.