Exhibit 12.1
ACTIVISION BLIZZARD, INC. AND SUBSIDIARIES
RATIO OF EARNINGS TO FIXED CHARGES
(in millions, except ratios)
| | For the Year Ended December 31, | | For the
Three
Months
ended
March
31, | |
| | 2012 | | 2013 | | 2014 | | 2015 | | 2016 | | 2017 | |
| | | | | | | | | | | | | |
Earnings | | | | | | | | | | | | | |
Income (loss) before taxes | | $ | 1,458 | | $ | 1,319 | | $ | 981 | | $ | 1,121 | | $ | 1,106 | | $ | 453 | |
Add: Fixed charges | | 13 | | 69 | | 221 | | 217 | | 248 | | 48 | |
Total Earnings(1) | | $ | 1,471 | | $ | 1,388 | | $ | 1,202 | | $ | 1,338 | | $ | 1,354(2) | | $ | 501 | |
| | | | | | | | | | | | | |
Fixed Charges | | | | | | | | | | | | | |
Interest Expense | | $ | 1 | | $ | 56 | | $ | 201 | | $ | 197 | | $ | 206 | | $ | 36 | |
Discounts and capitalized expenses related to indebtedness | | — | | 1 | | 7 | | 7 | | 20 | | 7 | |
Interest component of rental expense | | 12 | | 12 | | 13 | | 13 | | 22 | | 5 | |
Total Fixed Charges | | $ | 13 | | $ | 69 | | $ | 221 | | $ | 217 | | $ | 248 | | $ | 48 | |
| | | | | | | | | | | | | |
Ratio of Earnings to Fixed Charges | | 113.2 | | 20.1 | | 5.4 | | 6.2 | | 5.5 | | 10.4 | |
(1) For purposes of computing the ratios of earnings to fixed charges, earnings represent income (loss) before income taxes and fixed charges less interest capitalized. Fixed charges consist of interest expense, amortized premiums, discounts and capitalized expenses related to indebtedness, interest capitalized and a reasonable approximation of the interest component of operating lease expense.
(2) Total Earnings for the year ended December 31, 2016 includes a $92 million loss on extinguishment of debt recognized during 2016 as a result of the extinguishment of certain term loan and senior note facilities through the Company’s refinancing activities, comprised of a premium payment of $63 million and write-off of unamortized discount and financing costs of $29 million. The loss on extinguishment of debt was not included in the Fixed Charges.
