Oracle 2008 Annual Report Download - page 134

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Exhibit 12.01
ORACLE CORPORATION
Consolidated Ratio of Earnings to Fixed Charges
Year Ended May 31,
(Unaudited)
(Dollars in millions) 2009 2008 2007 2006 2005
Earnings(1)
Income before provision for income taxes $ 7,834 $ 7,834 $ 5,986 $ 4,810 $ 4,051
Add: Minority interests 84 60 71 41 42
Add: Fixed charges 685 454 380 205 173
Less: Equity in earnings — — — (14) —
Total earnings $ 8,603 $ 8,348 $ 6,437 $ 5,042 $ 4,266
Fixed Charges(2)
Interest expense $ 630 $ 394 $ 343 $ 169 $ 139
Estimate of interest in rent expense 55 60 37 36 34
Total fixed charges $ 685 $ 454 $ 380 $ 205 $ 173
Ratio of earnings to fixed charges 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 minority 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 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.
Source: ORACLE CORP, 10-K, June 29, 2009 Powered by Morningstar® Document Research℠