EX-12.1 5 dex121.htm STATEMENT REGARDING COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES 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 $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.