MATTEL, INC. AND SUBSIDIARIES EXHIBIT 12.0
(Page 1 of 2)
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
-------------------------------------------------
(Amounts in thousands, except ratios)
(Unaudited)
FOR THE
NINE MONTHS ENDED FOR THE YEARS ENDED DECEMBER 31, (a)(b)
--------------------- ----------------------------------------------------
SEPT. 30, SEPT. 30,
2000 1999 1999 1998 1997 1996 1995
--------- --------- ----------------------------------------------------
EARNINGS AVAILABLE FOR FIXED
CHARGES:
Income from continuing operations
before income taxes, cumulative
effect of changes in accounting
principles and extraordinary items $ 81,904 $ 19,024 $170,164 $459,446 $425,082 $536,756 $504,668
Less (plus) minority interest and
undistributed income (loss) of
less-than-majority-owned affiliates,
net 451 520 145 (165) (144) 303 (36)
Add:
Interest expense 102,926 88,491 131,609 110,833 90,130 100,226 102,983
Appropriate portion of rents (c) 9,091 8,919 11,974 16,262 17,665 19,527 19,450
--------- --------- -------- -------- -------- -------- --------
Earnings available for fixed
charges $ 194,372 $ 116,954 $313,892 $586,376 $532,733 $656,812 $627,065
========= ========= ======== ======== ======== ======== ========
FIXED CHARGES:
Interest expense $ 102,926 $ 88,491 $131,609 $110,833 $ 90,130 $100,226 $102,983
Capitalized interest 74 227 527 993 991 1,789 693
Appropriate portion of rents (c) 9,091 8,919 11,974 16,262 17,665 19,527 19,450
--------- --------- -------- -------- -------- -------- --------
Fixed charges $ 112,091 $ 97,637 $144,110 $128,088 $108,786 $121,542 $123,126
========= ========= ======== ======== ======== ======== ========
Ratio of earnings to fixed charges 1.73X 1.20X 2.18X 4.58X 4.90X 5.40X 5.09X
========= ========= ======== ======== ======== ======== ========
<FN>
(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 is being reported
as a discontinued operation effective March 31, 2000.
(b) The ratio of earnings to fixed charges for 1995 through 1997 have 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.
MATTEL, INC. AND SUBSIDIARIES EXHIBIT 12.0
(Page 2 of 2)
COMPUTATION OF RATIO OF EARNINGS TO COMBINED FIXED
CHARGES AND PREFERRED STOCK DIVIDENDS
--------------------------------------------------
(Amounts in thousands, except ratios)
(Unaudited)
FOR THE
NINE MONTHS ENDED FOR THE YEARS ENDED DECEMBER 31, (a)(b)
--------------------- ----------------------------------------------------
SEPT. 30, SEPT. 30,
2000 1999 1999 1998 1997 1996 1995
--------- --------- ----------------------------------------------------
EARNINGS AVAILABLE FOR FIXED
CHARGES:
Income from continuing operations
before income taxes, cumulative
effect of changes in accounting
principles and extraordinary items $ 81,904 $ 19,024 $170,164 $459,446 $425,082 $536,756 $504,668
Less (plus) minority interest and
undistributed income (loss) of
less-than-majority-owned affiliates,
net 451 520 145 (165) (144) 303 (36)
Add:
Interest expense 102,926 88,491 131,609 110,833 90,130 100,226 102,983
Appropriate portion of rents (c) 9,091 8,919 11,974 16,262 17,665 19,527 19,450
--------- --------- -------- -------- -------- -------- --------
Earnings available for fixed
charges $ 194,372 $ 116,954 $313,892 $586,376 $532,733 $656,812 $627,065
========= ========= ======== ======== ======== ======== ========
FIXED CHARGES:
Interest expense $ 102,926 $ 88,491 $131,609 $110,833 $ 90,130 $100,226 $102,983
Capitalized interest 74 227 527 993 991 1,789 693
Dividends - Series B preferred stock - - - - 2,537 3,406 3,200
Dividends - Series C preferred stock - 3,980 3,980 7,960 7,968 3,985 -
Dividends - Series F preference stock - - - - - - 3,342
Appropriate portion of rents (c) 9,091 8,919 11,974 16,262 17,665 19,527 19,450
--------- --------- -------- -------- -------- -------- --------
Fixed charges $ 112,091 $ 101,617 $148,090 $136,048 $119,291 $128,933 $129,668
========= ========= ======== ======== ======== ======== ========
Ratio of earnings to combined fixed
charges and preferred stock dividends 1.73X 1.15X 2.12X 4.31X 4.47X 5.09X 4.84X
========= ========= ======== ======== ======== ======== ========
<FN>
(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 is being reported
as a discontinued operation effective March 31, 2000.
(b) The ratio of earnings to fixed charges for 1995 through 1997 have 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.