EX-12.1 8 exb121-06302012.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES EXB 12.1 - 06.30.2012



EXHIBIT 12.1


MASTERCARD INCORPORATED
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

 
Six Months Ended June 30, 2012
 
Years Ended December 31,
 
 
2011
 
2010
 
2009
 
2008
 
2007
 
(in millions, except ratios)
Pre-tax income (loss) before adjustment for non-controlling interests
$
1,972

 
$
2,746

 
$
2,757

 
$
2,218

 
$
(383
)
 
$
1,671

Loss attributable to non-controlling interests and equity investments
13

 
18

 
1

 
3

 
2

 
1

Add: Fixed charges
11

 
29

 
56

 
120

 
109

 
62

Earnings (loss)
$
1,996

 
$
2,793

 
$
2,814

 
$
2,341

 
$
(272
)
 
$
1,734

Fixed charges:
 
 
 
 
 
 
 
 
 
 
 
Interest expense
$
9

 
$
25

 
$
52

 
$
115

 
$
104

 
$
57

Portion of rental expense under operating leases deemed to be the equivalent of interest 1
2

 
4

 
4

 
5

 
5

 
5

Total fixed charges
$
11

 
$
29

 
$
56

 
$
120

 
$
109

 
$
62

Ratio of earnings to fixed charges
181.5

 
96.3

 
50.3

 
19.5

 
- 2

 
28.0

    
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.