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 $000's)
Fiscal Years Ended March 31, | Six Months Ended | ||||||||||||||||
2004 | 2005 | 2006 | 2007 | 2008 | September 30, 2008 | ||||||||||||
Interest component of rental expense |
8,439 | 10,821 | 14,841 | 22,827 | 25,519 | 15,019 | |||||||||||
Interest component of property leases |
9,955 | 7,529 | 12,622 | 16,735 | 14,820 | 4,745 | |||||||||||
Total fixed charges |
18,394 | 18,350 | 27,463 | 39,562 | 40,339 | 19,764 | |||||||||||
Pre-tax income (loss) |
797,000 | 725,000 | 389,000 | 138,000 | (507,000 | ) | (478,000 | ) | |||||||||
Equity in net income of investees |
(655 | ) | (493 | ) | — | — | — | — | |||||||||
Fixed charges |
18,394 | 18,350 | 27,463 | 39,562 | 40,339 | 19,764 | |||||||||||
Less: minority interest |
— | (431 | ) | 5,896 | (3,779 | ) | — | — | |||||||||
Earnings for calculation purposes (1) |
814,739 | 743,288 | 410,567 | 181,341 | (466,661 | ) | (458,236 | ) | |||||||||
Ratio of earnings to fixed charges |
44.3 | 40.5 | 15.0 | 4.58 | (2) | (2) |
(1) | For purposes of computing our ratio of earnings to fixed charges, earnings consist of our pre-tax income or loss from continuing operations before adjustment for minority interests in consolidated subsidiaries or income from equity investees, plus fixed charges, minus minority interest in pre-tax income of subsidiaries that have not incurred fixed charges. Fixed charges consist of interest expensed, plus an estimate of the interest within rental expense. |
(2) | For the year ended March 31, 2008 and six months ended September 30, 2008, we had a $507 million and $478 million deficiency, respectively, of earnings to fixed charges. |