EXHIBIT 12
(PAGE 1 OF 2)
MATTEL, INC. AND SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(Amounts in thousands, except ratios)
(Unaudited)
FOR THE SIX MONTHS ENDED | FOR THE YEARS ENDED DECEMBER 31, (a)(b) | |||||||||||||||||||||||||||
June 30, 2002 | June 30, 2001 | 2001 | 2000 | 1999 | 1998 | 1997 | ||||||||||||||||||||||
EARNINGS AVAILABLE FOR FIXED CHARGES: | ||||||||||||||||||||||||||||
Income (loss) from continuing operations before income taxes, cumulative effect of change in accounting principles and extraordinary items | $ | 19,181 | $ | (36,022 | ) | $ | 430,010 | $ | 225,424 | $ | 170,164 | $ | 459,446 | $ | 425,082 | |||||||||||||
Less (plus) minority interest and undistributed income (loss) of less-than-majority-owned affiliates, net | 211 | 242 | 170 | 440 | 145 | (165 | ) | (144 | ) | |||||||||||||||||||
Add: | ||||||||||||||||||||||||||||
Interest expense | 58,680 | 74,512 | 155,132 | 152,979 | 131,609 | 110,833 | 90,130 | |||||||||||||||||||||
Appropriate portion of rents(c) | 8,651 | 8,463 | 14,923 | 14,748 | 11,974 | 16,262 | 17,665 | |||||||||||||||||||||
Earnings available for fixed charges | $ | 86,723 | $ | 47,195 | $ | 600,235 | $ | 393,591 | $ | 313,892 | $ | 586,376 | $ | 532,733 | ||||||||||||||
FIXED CHARGES: | ||||||||||||||||||||||||||||
Interest expense | $ | 58,680 | $ | 74,512 | $ | 155,132 | $ | 152,979 | $ | 131,609 | $ | 110,833 | $ | 90,130 | ||||||||||||||
Capitalized interest | 49 | — | 6 | 507 | 527 | 993 | 991 | |||||||||||||||||||||
Appropriate portion of rents(c) | 8,651 | 8,463 | 14,923 | 14,748 | 11,974 | 16,262 | 17,665 | |||||||||||||||||||||
Fixed charges | $ | 67,380 | $ | 82,975 | $ | 170,061 | $ | 168,234 | $ | 144,110 | $ | 128,088 | $ | 108,786 | ||||||||||||||
Ratio of earnings to fixed charges | 1.29 | X | 0.57 | (d) | 3.53 | X | 2.34 | X | 2.18 | X | 4.58 | X | 4.90 | X | ||||||||||||||
(a) | Although Mattel merged with The Learning Company, Inc. (“Learning Company”) in May 1999, the results of operations of Learning Company have not been included in this calculation since the Consumer Software segment was reported as a discontinued operation effective March 31, 2000. |
(b) | The ratio of earnings to fixed charges for 1997 has been restated for the effects of the March 1997 merger of Tyco Toys, Inc. (“Tyco”) into Mattel, which was accounted for as a pooling of interests. |
(c) | Portion of rental expenses which is deemed representative of an interest factor, not to exceed one-third of total rental expense. |
(d) | Earnings did not cover fixed charges by $35.8 million for the six-month period ended June 30, 2001. |
EXHIBIT 12
(Page 2 of 2)
MATTEL, INC. AND SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES
AND PREFERRED STOCK DIVIDENDS
(Amounts in thousands, except ratios)
(Unaudited)
FOR THE SIX MONTHS ENDED | FOR THE YEARS ENDED DECEMBER 31, (a)(b) | |||||||||||||||||||||||||||
June 30, 2002 | June 30, 2001 | 2001 | 2000 | 1999 | 1998 | 1997 | ||||||||||||||||||||||
EARNINGS AVAILABLE FOR FIXED CHARGES: | ||||||||||||||||||||||||||||
Income (loss) from continuing operations before income taxes, cumulative effect of change in accounting principles and extraordinary items | $ | 19,181 | $ | (36,022 | ) | $ | 430,010 | $ | 225,424 | $ | 170,164 | $ | 459,446 | $ | 425,082 | |||||||||||||
Less (plus) minority interest and undistributed income (loss) of less-than-majority-owned affiliates, net | 211 | 242 | 170 | 440 | 145 | (165 | ) | (144 | ) | |||||||||||||||||||
Add: | ||||||||||||||||||||||||||||
Interest expense | 58,680 | 74,512 | 155,132 | 152,979 | 131,609 | 110,833 | 90,130 | |||||||||||||||||||||
Appropriate portion of rents(c) | 8,651 | 8,463 | 14,923 | 14,748 | 11,974 | 16,262 | 17,665 | |||||||||||||||||||||
Earnings available for fixed charges | $ | 86,723 | $ | 47,195 | $ | 600,235 | $ | 393,591 | $ | 313,892 | $ | 586,376 | $ | 532,733 | ||||||||||||||
FIXED CHARGES: | ||||||||||||||||||||||||||||
Interest expense | $ | 58,680 | $ | 74,512 | $ | 155,132 | $ | 152,979 | $ | 131,609 | $ | 110,833 | $ | 90,130 | ||||||||||||||
Capitalized interest | 49 | — | 6 | 507 | 527 | 993 | 991 | |||||||||||||||||||||
Dividends—Series B preferred stock | — | — | — | — | — | — | 2,537 | |||||||||||||||||||||
Dividends—Series C preferred stock | — | — | — | — | 3,980 | 7,960 | 7,968 | |||||||||||||||||||||
Appropriate portion of rents(c) | 8,651 | 8,463 | 14,923 | 14,748 | 11,974 | 16,262 | 17,665 | |||||||||||||||||||||
Fixed charges | $ | 67,380 | $ | 82,975 | $ | 170,061 | $ | 168,234 | $ | 148,090 | $ | 136,048 | $ | 119,291 | ||||||||||||||
Ratio of earnings to combined fixed charges and preferred stock dividends | 1.29 | X | 0.57 | (d) | 3.53 | X | 2.34 | X | 2.12 | X | 4.31 | X | 4.47 | X | ||||||||||||||
(a) | Although Mattel merged with Learning Company in May 1999, the results of operations of Learning Company have not been included in this calculation since the Consumer Software segment was reported as a discontinued operation effective March 31, 2000. |
(b) | The ratio of earnings to fixed charges for 1997 has been restated for the effects of the March 1997 merger of Tyco into Mattel, which was accounted for as a pooling of interests. |
(c) | Portion of rental expenses which is deemed representative of an interest factor, not to exceed one-third of total rental expense. |
(d) | Earnings did not cover fixed charges by $35.8 million for the six-month period ended June 30, 2001. |
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