EX-12.1 5 s3asr121computationofratio.htm STATEMENT REGARDING COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES 12.1 Statement Regarding Computation of Ratio of Earnings to Fixed Charges


Exhibit 12.1

STATEMENT REGARDING COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
ELECTRONIC ARTS INC. AND SUBSIDIARIES
RATIO OF EARNINGS TO FIXED CHARGES CALCULATION
($ in thousands)


 
Fiscal Years Ended March 31,
 
Six Months Ended
 
2010
 
2011
 
2012
 
2013
 
2014
 
September 30, 2014
 
 
 
 
 
 
 
 
 
 
 
 
Earnings
 
 
 
 
 
 
 
 
 
 
 
    Earnings (loss) before income taxes
$
(706,000
)
 
$
(279,000
)
 
$
18,000

 
$
139,000

 
$
7,000

 
$
372,000

    Add: Fixed charges
21,415

 
22,193

 
41,015

 
52,396

 
52,869

 
26,920

    Total Earnings (1)
$
(684,585
)
 
$
(256,807
)
 
$
59,015

 
$
191,396

 
$
59,869

 
$
398,920

 
 
 
 
 
 
 
 
 
 
 
 
Fixed Charges
 
 
 
 
 
 
 
 
 
 
 
    Interest component of rental expense
$
18,519

 
$
20,899

 
$
21,655

 
$
23,539

 
$
22,466

 
$
11,380

    Interest expense
2,896

 
1,294

 
19,360

 
28,857

 
30,403

 
15,540

    Total fixed charges
$
21,415

 
$
22,193

 
$
41,015

 
$
52,396

 
$
52,869

 
$
26,920

 
 
 
 
 
 
 
 
 
 
 
 
Ratio of earnings to fixed charges
(2) 
 
(2) 
 
1.44

 
3.65

 
1.13

 
14.82



 
(1
)
 
For purposes of computing our ratio of earnings to fixed charges, earnings consist of our pre-tax income or loss from continuing operations plus fixed charges. Fixed charges consist of interest expensed, plus an estimate of the interest within rental expense. Fixed charges exclude interest associated with uncertain tax positions, which is recorded within income tax expense.
 
 
 
 
 
(2
)
 
For the years ended March 31, 2010 and 2011, we had a $706 million and $279 million deficiency, respectively, of earnings to fixed charges.