Exhibit 12.01
ORACLE CORPORATION
Consolidated Ratio of Earnings to Fixed Charges
| Nine Months Ended February 28, |
Year Ended May 31, | |||||||||||||||||||||||||||
| (Dollars in millions) |
2018 | 2017 | 2017 | 2016 | 2015 | 2014 | 2013 | |||||||||||||||||||||
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Earnings(1) |
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| Income before provision for income taxes |
$ | 8,751 | $ | 7,756 | $ | 11,517 | $ | 11,442 | $ | 12,834 | $ | 13,704 | $ | 13,898 | ||||||||||||||
| Add: Noncontrolling interests |
111 | 95 | 118 | 116 | 113 | 98 | 112 | |||||||||||||||||||||
| Add: Fixed charges |
1,535 | 1,357 | 1,836 | 1,506 | 1,190 | 968 | 850 | |||||||||||||||||||||
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| Total earnings |
$ | 10,397 | $ | 9,208 | $ | 13,471 | $ | 13,064 | $ | 14,137 | $ | 14,770 | $ | 14,860 | ||||||||||||||
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| Fixed Charges(2) |
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| Interest expense |
$ | 1,477 | $ | 1,317 | $ | 1,798 | $ | 1,467 | $ | 1,143 | $ | 914 | $ | 797 | ||||||||||||||
| Estimate of interest in rent expense |
58 | 40 | 38 | 39 | 47 | 54 | 53 | |||||||||||||||||||||
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| Total fixed charges |
$ | 1,535 | $ | 1,357 | $ | 1,836 | $ | 1,506 | $ | 1,190 | $ | 968 | $ | 850 | ||||||||||||||
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| Ratio of earnings to fixed charges |
7x | 7x | 7x | 9x | 12x | 15x | 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 expense, 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.