Exhibit 12.1
Callaway Golf Company
Computation of Ratio of Earnings to Fixed Charges and Preferred Stock Dividends
(dollars in thousands)
| Nine months ended Sept 30, | Year ended December 31, | |||||||||||||||||||||||||||
| 2010 | 2009 | 2009 | 2008 | 2007 | 2006 | 2005 | ||||||||||||||||||||||
EARNINGS: | ||||||||||||||||||||||||||||
Income (loss) from continuing operations before income taxes and non-controlling interest | $ | 10,243 | $ | (2,550 | ) | $ | (29,128 | ) | $ | 100,341 | $ | 88,264 | $ | 34,987 | $ | 14,537 | ||||||||||||
Fixed charges and preferred stock dividends | 16,263 | 10,033 | 17,304 | 8,817 | 8,523 | 8,369 | 5,624 | |||||||||||||||||||||
Total earnings | 26,506 | 7,483 | (11,824 | ) | 109,158 | 96,787 | 43,356 | 20,161 | ||||||||||||||||||||
FIXED CHARGES AND PREFERRED STOCK DIVIDENDS: | ||||||||||||||||||||||||||||
Interest on debt and amortization of deferred financing costs | 681 | 1,591 | 1,737 | 4,666 | 5,363 | 5,421 | 2,279 | |||||||||||||||||||||
Estimated interest expense included in rental expense | 3,373 | 3,462 | 4,522 | 4,151 | 3,160 | 2,948 | 3,345 | |||||||||||||||||||||
Preference security dividends, pre-tax | 12,209 | 4,980 | 11,045 | — | — | — | — | |||||||||||||||||||||
Total fixed charges and preferred stock dividends | $ | 16,263 | $ | 10,033 | $ | 17,304 | $ | 8,817 | $ | 8,523 | $ | 8,369 | $ | 5,624 | ||||||||||||||
RATIO OF EARNINGS TO FIXED CHARGES AND PREFERRED STOCK DIVIDENDS | 1.63 | 0.75 | — | (1) | 12.38 | 11.36 | 5.18 | 3.58 | ||||||||||||||||||||
| (1) | Earnings for the year ended December 31, 2009 were insufficient to cover fixed charges and preferred stock dividends by $11.8 million. |
| (2) | Preference security dividends is the amount of pre-tax earnings that is required to pay the dividends on outstanding preferred stock. |
