EXHIBIT 12.1
MATTEL, INC. AND SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(In thousands, except ratios)
For The Year Ended December 31, | For the Three Months Ended | |||||||||||||||||||||||
2001 | 2002 | 2003 | 2004 | 2005 | March 31, 2006 | |||||||||||||||||||
Earnings Available For Fixed Charges: | ||||||||||||||||||||||||
Income from continuing operations before income taxes and cumulative effect of change in accounting principles | $ | 430,010 | $ | 621,497 | $ | 740,854 | $ | 696,254 | $ | 652,049 | $ | (36,495 | ) | |||||||||||
Add: minority interest losses (income) in consolidated subsidiaries | 170 | 126 | 345 | (93 | ) | 142 | 48 | |||||||||||||||||
Add: | ||||||||||||||||||||||||
Interest expense | 155,132 | 113,897 | 80,577 | 77,764 | 76,490 | 15,203 | ||||||||||||||||||
Appropriate portion of rents (A) | 14,923 | 16,615 | 16,627 | 18,831 | 20,475 | 5,397 | ||||||||||||||||||
Earnings available for fixed charges | $ | 600,235 | $ | 752,135 | $ | 838,403 | $ | 792,756 | $ | 749,156 | $ | (15,847 | ) | |||||||||||
Fixed Charges: | ||||||||||||||||||||||||
Interest expense | $ | 155,132 | $ | 113,897 | $ | 80,577 | $ | 77,764 | $ | 76,490 | $ | 15,203 | ||||||||||||
Capitalized interest | 6 | 43 | — | — | — | — | ||||||||||||||||||
Appropriate portion of rents (A) | 14,923 | 16,615 | 16,627 | 18,831 | 20,475 | 5,397 | ||||||||||||||||||
Fixed charges | $ | 170,061 | $ | 130,555 | $ | 97,204 | $ | 96,595 | $ | 96,965 | $ | 20,600 | ||||||||||||
Ratio of earnings to fixed charges | 3.53 | X | 5.76 | X | 8.63 | X | 8.21 | X | 7.73 | X | (B | ) | ||||||||||||
(A) | Portion of rental expenses which is deemed representative of an interest factor, which is one-third of total rental expense. |
(B) | Due to Mattel’s loss for the three months ended March 31, 2006, the ratio coverage was less than 1:1. Mattel would have needed to generate additional earnings of approximately $36.45 million to achieve a coverage of 1:1. |