MATTEL, INC. AND SUBSIDIARIES EXHIBIT 12.0
(Page 1 of 2)
COMPUTATION OF RATIO OF EARNINGS (LOSS) TO FIXED CHARGES
--------------------------------------------------------
(Amounts in thousands, except ratios)
(Unaudited)
FOR THE
SIX MONTHS ENDED FOR THE YEARS ENDED DECEMBER 31, (a)
--------------------- ----------------------------------------------------
JUNE 30, JUNE 30,
1998 1997(a) 1997 1996 1995 1994 1993(b)
--------- --------- ----------------------------------------------------
EARNINGS (LOSS) AVAILABLE FOR FIXED
CHARGES:
Income (loss) before income taxes,
cumulative effect of changes in
accounting principles and
extraordinary items $ 102,373 $(159,675) $425,082 $536,756 $504,668 $362,157 $153,306
Less (plus) minority interest and
undistributed income (loss) of
less-than-majority-owned affiliates,
net 58 7 (144) 303 (36) (649) 124
Add:
Interest expense 32,017 38,150 90,130 100,226 102,983 87,071 86,101
Appropriate portion of rents (c) 8,288 9,744 17,665 19,527 19,450 16,224 16,221
--------- --------- -------- -------- -------- -------- --------
Earnings (loss) available for fixed
charges $ 142,736 $(111,774) $532,733 $656,812 $627,065 $464,803 $255,752
========= ========= ======== ======== ======== ======== ========
FIXED CHARGES:
Interest expense $ 32,017 $ 38,150 $ 90,130 $100,226 $102,983 $ 87,071 $ 86,101
Capitalized interest - 577 991 1,789 693 285 -
Appropriate portion of rents (c) 8,288 9,744 17,665 19,527 19,450 16,224 16,221
--------- --------- -------- -------- -------- -------- --------
Fixed charges $ 40,305 $ 48,471 $108,786 $121,542 $123,126 $103,580 $102,322
========= ========= ======== ======== ======== ======== ========
Ratio of earnings (loss) to fixed charges 3.54X - (d) 4.90X 5.40X 5.09X 4.49X 2.50X
========= ========= ======== ======== ======== ======== ========
<FN>
(a) Consolidated financial information for 1997 through 1993 has been restated for the effects of the March 1997
merger of Tyco Toys, Inc. ("Tyco") into the Company, accounted for as a pooling of interests.
(b) Consolidated financial information for 1993 has been restated for the effects of the November 1993 merger
of Fisher-Price, Inc. into a wholly-owned subsidiary of the Company, 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) As a result of an approximately $275 million restructuring charge to earnings taken in the first quarter of
1997, earnings did not cover fixed charges by $160.2 million for the six month period ended June 30, 1997.
MATTEL, INC. AND SUBSIDIARIES EXHIBIT 12.0
(Page 2 of 2)
COMPUTATION OF RATIO OF EARNINGS (LOSS) 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)
--------------------- ----------------------------------------------------
JUNE 30, JUNE 30,
1998 1997(a) 1997 1996 1995 1994 1993(b)
--------- --------- ----------------------------------------------------
EARNINGS (LOSS) AVAILABLE FOR FIXED
CHARGES:
Income (loss) before income taxes,
cumulative effect of changes in
accounting principles and
extraordinary items $ 102,373 $(159,675) $425,082 $536,756 $504,668 $362,157 $153,306
Less (plus) minority interest and
undistributed income (loss) of
less-than-majority-owned affiliates,
net 58 7 (144) 303 (36) (649) 124
Add:
Interest expense 32,017 38,150 90,130 100,226 102,983 87,071 86,101
Appropriate portion of rents (c) 8,288 9,744 17,665 19,527 19,450 16,224 16,221
--------- --------- -------- -------- -------- -------- --------
Earnings (loss) available for fixed
charges $ 142,736 $(111,774) $532,733 $656,812 $627,065 $464,803 $255,752
========= ========= ======== ======== ======== ======== ========
FIXED CHARGES:
Interest expense $ 32,017 $ 38,150 $ 90,130 $100,226 $102,983 $ 87,071 $ 86,101
Capitalized interest - 577 991 1,789 693 285 -
Dividends - Series B preferred stock - 1,692 2,537 3,406 3,200 2,157 -
Dividends - Series C preferred stock 3,980 3,985 7,968 3,985 - - -
Dividends - Series F preference stock - - - - 3,342 4,689 4,894
Appropriate portion of rents (c) 8,288 9,744 17,665 19,527 19,450 16,224 16,221
--------- --------- -------- -------- -------- -------- --------
Fixed charges $ 44,285 $ 54,148 $119,291 $128,933 $129,668 $110,426 $107,216
========= ========= ======== ======== ======== ======== ========
Ratio of earnings (loss) to fixed charges 3.22X - (d) 4.47X 5.09X 4.84X 4.21X 2.39X
========= ========= ======== ======== ======== ======== ========
<FN>
(a) Consolidated financial information for 1997 through 1993 has been restated for the effects of the March 1997
merger of Tyco into the Company, accounted for as a pooling of interests.
(b) Consolidated financial information for 1993 has been restated for the effects of the November 1993 merger
of Fisher-Price, Inc. into a wholly-owned subsidiary of the Company, 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) As a result of an approximately $275 million restructuring charge to earnings taken in the first quarter of
1997, earnings did not cover fixed charges plus preferred stock dividends by $165.9 million for the six
month period ended June 30, 1997.