EXHIBIT 12.0
MATTEL, INC. AND SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(Unaudited; in thousands, except ratios) | For the Three Months Ended March 31, 2008 | For the Year Ended December 31, | ||||||||||||||||||
2007 | 2006 | 2005 | 2004 | 2003 | ||||||||||||||||
Earnings Available for Fixed Charges: | ||||||||||||||||||||
(Loss) Income from continuing operations before income taxes and cumulative effect of changes in accounting principles | $ | (59,802 | ) | $ | 703,398 | $ | 683,756 | $ | 652,049 | $ | 696,254 | $ | 740,854 | |||||||
Add: Minority interest (income) losses in consolidated subsidiaries | (285 | ) | 255 | 271 | 142 | (93 | ) | 345 | ||||||||||||
Add: | ||||||||||||||||||||
Interest expense | 16,049 | 70,974 | 79,853 | 76,490 | 77,764 | 80,577 | ||||||||||||||
Appropriate portion of rents (a) | 7,245 | 28,245 | 25,724 | 20,475 | 18,831 | 16,627 | ||||||||||||||
(Losses) earnings available for fixed charges | $ | (36,793 | ) | $ | 802,872 | $ | 789,604 | $ | 749,156 | $ | 792,756 | $ | 838,403 | |||||||
Fixed Charges: | ||||||||||||||||||||
Interest expense | $ | 16,049 | $ | 70,974 | $ | 79,853 | $ | 76,490 | $ | 77,764 | $ | 80,577 | ||||||||
Appropriate portion of rents (a) | 7,245 | 28,245 | 25,724 | 20,475 | 18,831 | 16,627 | ||||||||||||||
Fixed charges | $ | 23,294 | $ | 99,219 | $ | 105,577 | $ | 96,965 | $ | 96,595 | $ | 97,204 | ||||||||
Ratio of earnings to fixed charges | (b) | 8.09 X | 7.48 X | 7.73 X | 8.21 X | 8.63 X | ||||||||||||||
(a) | Portion of rental expenses that is deemed representative of an interest factor, which is one-third of total rental expense. |
(b) | Earnings for the three months ended March 31, 2008 were inadequate to cover fixed charges by approximately $60 million. |