EXHIBIT 12.1
MASTERCARD INCORPORATED
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
Nine Months Ended | Years Ended December 31, | ||||||||||||||||||||||
September 30, 2013 | 2012 | 2011 | 2010 | 2009 | 2008 | ||||||||||||||||||
(in millions, except ratios) | |||||||||||||||||||||||
Pre-tax income (loss) before adjustment for non-controlling interests | $ | 3,588 | $ | 3,932 | $ | 2,746 | $ | 2,757 | $ | 2,218 | $ | (383 | ) | ||||||||||
Loss attributable to non-controlling interests and equity investments | 24 | 25 | 18 | 1 | 3 | 2 | |||||||||||||||||
Add: Fixed charges | 11 | 25 | 29 | 56 | 120 | 109 | |||||||||||||||||
Earnings (loss) | $ | 3,623 | $ | 3,982 | $ | 2,793 | $ | 2,814 | $ | 2,341 | $ | (272 | ) | ||||||||||
Fixed charges: | |||||||||||||||||||||||
Interest expense | $ | 7 | $ | 20 | $ | 25 | $ | 52 | $ | 115 | $ | 104 | |||||||||||
Portion of rental expense under operating leases deemed to be the equivalent of interest 1 | 4 | 5 | 4 | 4 | 5 | 5 | |||||||||||||||||
Total fixed charges | $ | 11 | $ | 25 | $ | 29 | $ | 56 | $ | 120 | $ | 109 | |||||||||||
Ratio of earnings to fixed charges | 329.4 | 159.3 | 96.3 | 50.3 | 19.5 | - 2 |
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.