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 September 30, 2011 | |||||||||||||||||||||||
2007 | 2008 | 2009 | 2010 | 2011 | ||||||||||||||||||||
Interest component of rental expense | $ | 22,827 | $ | 25,519 | $ | 17,672 | $ | 18,519 | $ | 20,899 | $ | 12,407 | ||||||||||||
Interest component of property leases | 16,735 | 14,820 | 6,668 | 2,896 | 1,294 | 5,887 | ||||||||||||||||||
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Total fixed charges | $ | 39,562 | $ | 40,339 | $ | 24,340 | $ | 21,415 | $ | 22,193 | $ | 18,294 | ||||||||||||
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Pre-tax income (loss) | $ | 138,000 | $ | (507,000 | ) | $ | (855,000 | ) | $ | (706,000 | ) | $ | (279,000 | ) | $ | (150,000 | ) | |||||||
Fixed charges | 39,562 | 40,339 | 24,340 | 21,415 | 22,193 | 18,294 | ||||||||||||||||||
Less: minority interest | (3,779 | ) | — | — | — | — | — | |||||||||||||||||
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Earnings for calculation purposes (1) | $ | 181,341 | $ | (466,661 | ) | $ | (830,661 | ) | $ | (684,585 | ) | $ | (256,807 | ) | $ | (131,706 | ) | |||||||
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Ratio of earnings to fixed charges | 4.58 | (2 | ) | (2 | ) | (2 | ) | (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 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 years ended March 31, 2008, 2009, 2010, 2011, and for the six months ended September 30, 2011 we had a $507 million, $855 million, $706 million $279 million, and $150 million deficiency, respectively, of earnings to fixed charges. |