Mastercard (MA) 10-K 2010 FY Annual report

EXHIBIT 12.1

MASTERCARD INCORPORATED

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

	Year Ended December 31,
	2010		2009		2008			2007		2006
	(in millions, except ratios)
Pre-tax income (loss) before adjustment for non-controlling interests	$	2,757	$	2,218	$	(383	)	$	1,671	$	294
Loss attributable to non-controlling interests		1		3		2			1		(1	)
Add: Fixed charges		56		120		109			62		65
Earnings	$	2,814	$	2,341	$	(272	)	$	1,734	$	358
Fixed charges:
Interest expense	$	52	$	115	$	104		$	57	$	61
Portion of rental expense under operating leases deemed to be the equivalent of interest1		4		5		5			5		4
Total fixed charges	$	56	$	120	$	109		$	62	$	65
Ratio of earnings to fixed charges		50.3		19.5		—	2		28.0		5.5

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.