MATTEL, INC. AND SUBSIDIARIES COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES (In thousands, except ratios) | EXHIBIT 12.0 (Page 1 of 2) |
For the Six Months Ended | For The Year Ended December 31, (a) | |||||||||||||||||||||||||||
June 30, 2004 | June 30, 2003 | 2003 | 2002 | 2001 | 2000 | 1999 | ||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||||
Earnings Available For Fixed Charges: | ||||||||||||||||||||||||||||
Income from continuing operations before income taxes and cumulative effect of change in accounting principles | $ | 44,894 | $ | 73,473 | $ | 740,854 | $ | 621,497 | $ | 430,010 | $ | 225,424 | $ | 170,164 | ||||||||||||||
Plus minority interest and undistributed income of less-than-majority-owned affiliates, net | 315 | 29 | 345 | 126 | 170 | 440 | 145 | |||||||||||||||||||||
Add: | ||||||||||||||||||||||||||||
Interest expense | 31,609 | 35,639 | 80,577 | 113,897 | 155,132 | 152,979 | 131,609 | |||||||||||||||||||||
Appropriate portion of rents (b) | 8,845 | 7,907 | 16,627 | 16,615 | 14,923 | 14,748 | 11,974 | |||||||||||||||||||||
Earnings available for fixed charges | $ | 85,663 | $ | 117,048 | $ | 838,403 | $ | 752,135 | $ | 600,235 | $ | 393,591 | $ | 313,892 | ||||||||||||||
Fixed Charges: | ||||||||||||||||||||||||||||
Interest expense | $ | 31,609 | $ | 35,639 | $ | 80,577 | $ | 113,897 | $ | 155,132 | $ | 152,979 | $ | 131,609 | ||||||||||||||
Capitalized interest | — | — | — | 43 | 6 | 507 | 527 | |||||||||||||||||||||
Appropriate portion of rents (b) | 8,845 | 7,907 | 16,627 | 16,615 | 14,923 | 14,748 | 11,974 | |||||||||||||||||||||
Fixed charges | $ | 40,454 | $ | 43,546 | $ | 97,204 | $ | 130,555 | $ | 170,061 | $ | 168,234 | $ | 144,110 | ||||||||||||||
Ratio of earnings to fixed charges | 2.12 | X | 2.69 | X | 8.63 | X | 5.76 | X | 3.53 | X | 2.34 | X | 2.18 | 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) | Portion of rental expenses which is deemed representative of an interest factor, not to exceed one-third of total rental expense. |
MATTEL, INC. AND SUBSIDIARIES COMPUTATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS (In thousands, except ratios) | EXHIBIT 12.0 (Page 2 of 2) |
For the Six Months Ended | For The Year Ended December 31, (a) | |||||||||||||||||||||||||||
June 30, | June 30, | |||||||||||||||||||||||||||
2004 | 2003 | 2003 | 2002 | 2001 | 2000 | 1999 | ||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||||
Earnings Available For Fixed Charges: | ||||||||||||||||||||||||||||
Income from continuing operations before income taxes and cumulative effect of change in accounting principles | $ | 44,894 | $ | 73,473 | $ | 740,854 | $ | 621,497 | $ | 430,010 | $ | 225,424 | $ | 170,164 | ||||||||||||||
Plus minority interest and undistributed income of less-than-majority-owned affiliates, net | 315 | 29 | 345 | 126 | 170 | 440 | 145 | |||||||||||||||||||||
Add: | ||||||||||||||||||||||||||||
Interest expense | 31,609 | 35,639 | 80,577 | 113,897 | 155,132 | 152,979 | 131,609 | |||||||||||||||||||||
Appropriate portion of rents (b) | 8,845 | 7,907 | 16,627 | 16,615 | 14,923 | 14,748 | 11,974 | |||||||||||||||||||||
Earnings available for fixed charges | $ | 85,663 | $ | 117,048 | $ | 838,403 | $ | 752,135 | $ | 600,235 | $ | 393,591 | $ | 313,892 | ||||||||||||||
Fixed Charges: | ||||||||||||||||||||||||||||
Interest expense | $ | 31,609 | $ | 35,639 | $ | 80,577 | $ | 113,897 | $ | 155,132 | $ | 152,979 | $ | 131,609 | ||||||||||||||
Capitalized interest | — | — | — | 43 | 6 | 507 | 527 | |||||||||||||||||||||
Dividends - Series C preferred stock | — | — | — | — | — | — | 3,980 | |||||||||||||||||||||
Appropriate portion of rents (b) | 8,845 | 7,907 | 16,627 | 16,615 | 14,923 | 14,748 | 11,974 | |||||||||||||||||||||
Fixed charges | $ | 40,454 | $ | 43,546 | $ | 97,204 | $ | 130,555 | $ | 170,061 | $ | 168,234 | $ | 148,090 | ||||||||||||||
Ratio of earnings to combined fixed charges and preferred stock dividends | 2.12 | X | 2.69 | X | 8.63 | X | 5.76 | X | 3.53 | X | 2.34 | X | 2.12 | 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) | Portion of rental expenses which is deemed representative of an interest factor, not to exceed one-third of total rental expense. |