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

 

     Year Ended December 31,  
     2010      2009      2008     2007      2006  
     (in millions, except ratios)  

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

    $ 2,757       $ 2,218       $ (383 )    $ 1,671       $ 294   

Loss attributable to non-controlling interests

      1         3         2        1         (1 ) 

Add: Fixed charges

      56         120         109        62         65   
                                           

Earnings

    $ 2,814       $ 2,341       $ (272 )    $ 1,734       $ 358   
                                           

Fixed charges:

              

Interest expense

    $ 52       $ 115       $ 104      $ 57       $ 61   

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

      4         5         5        5         4   
                                           

Total fixed charges

    $ 56       $ 120       $ 109      $ 62       $ 65   
                                           

Ratio of earnings to fixed charges

      50.3         19.5         —   2      28.0         5.5   
                                           

 

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 $381 million to achieve a coverage of 1:1 in 2008.