EX-12.1 4 dex121.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES Computation of Ratio of Earnings to Fixed Charges

EXHIBIT 12.1

MASTERCARD INCORPORATED

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

(In thousands, except ratios)

 

     Year Ended December 31,
     2009    2008     2007    2006     2005

Pre-tax income (loss) before adjustment for non-controlling interests

    $ 2,218,051    $ (383,213 )    $ 1,671,432    $ 294,172      $ 407,338

Loss attributable to non-controlling interests

      3,083      2,265        816      (974 )      198

Add: Fixed charges

      120,225      108,913        61,822      65,339        74,414
                                    

Earnings

    $ 2,341,359    $ (272,035 )    $ 1,734,070    $ 358,537      $ 481,950
                                    

Fixed charges:

             

Interest expense

    $ 115,109    $ 103,600      $ 57,277    $ 61,151      $ 70,158

Portion of rental expense under operating leases deemed to be the equivalent of interest1

      5,116      5,313        4,545      4,188        4,256
                                    

Total fixed charges

    $ 120,225    $ 108,913      $ 61,822    $ 65,339      $ 74,414
                                    

Ratio of earnings to fixed charges

      19.5      —   2      28.0      5.5        6.5
                                    

 

1

Portion of rental expense under operating leases deemed to be the equivalent of interest at an appropriate interest factor.

2

The ratio coverage was less than 1:1. MasterCard would have needed to generate additional earnings of $380,948 to achieve a coverage of 1:1 in 2008.