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) --------------------- ---------------------------------------------------- SEPT. 30, SEPT. 30, 1998 1997(a) 1997 1996 1995 1994 1993(b) --------- --------- ---------------------------------------------------- EARNINGS AVAILABLE FOR FIXED CHARGES: Income before income taxes, cumulative effect of changes in accounting principles and extraordinary items $ 381,859 $ 158,080 $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 161 (369) (144) 303 (36) (649) 124 Add: Interest expense 69,675 62,782 90,130 100,226 102,983 87,071 86,101 Appropriate portion of rents (c) 12,748 13,708 17,665 19,527 19,450 16,224 16,221 --------- --------- -------- -------- -------- -------- -------- Earnings available for fixed charges $ 464,443 $ 234,201 $532,733 $656,812 $627,065 $464,803 $255,752 ========= ========= ======== ======== ======== ======== ======== FIXED CHARGES: Interest expense $ 69,675 $ 62,782 $ 90,130 $100,226 $102,983 $ 87,071 $ 86,101 Capitalized interest 650 991 991 1,789 693 285 - Appropriate portion of rents (c) 12,748 13,708 17,665 19,527 19,450 16,224 16,221 --------- --------- -------- -------- -------- -------- -------- Fixed charges $ 83,073 $ 77,481 $108,786 $121,542 $123,126 $103,580 $102,322 ========= ========= ======== ======== ======== ======== ======== Ratio of earnings to fixed charges 5.59X 3.02X 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. 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) --------------------- ---------------------------------------------------- SEPT. 30, SEPT. 30, 1998 1997(a) 1997 1996 1995 1994 1993(b) --------- --------- ---------------------------------------------------- EARNINGS AVAILABLE FOR FIXED CHARGES: Income before income taxes, cumulative effect of changes in accounting principles and extraordinary items $ 381,859 $ 158,080 $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 161 (369) (144) 303 (36) (649) 124 Add: Interest expense 69,675 62,782 90,130 100,226 102,983 87,071 86,101 Appropriate portion of rents (c) 12,748 13,708 17,665 19,527 19,450 16,224 16,221 --------- --------- -------- -------- -------- -------- -------- Earnings available for fixed charges $ 464,443 $ 234,201 $532,733 $656,812 $627,065 $464,803 $255,752 ========= ========= ======== ======== ======== ======== ======== FIXED CHARGES: Interest expense $ 69,675 $ 62,782 $ 90,130 $100,226 $102,983 $ 87,071 $ 86,101 Capitalized interest 650 991 991 1,789 693 285 - Dividends - Series B preferred stock - 2,537 2,537 3,406 3,200 2,157 - Dividends - Series C preferred stock 5,970 5,978 7,968 3,985 - - - Dividends - Series F preference stock - - - - 3,342 4,689 4,894 Appropriate portion of rents (c) 12,748 13,708 17,665 19,527 19,450 16,224 16,221 --------- --------- -------- -------- -------- -------- -------- Fixed charges $ 89,043 $ 85,996 $119,291 $128,933 $129,668 $110,426 $107,216 ========= ========= ======== ======== ======== ======== ======== Ratio of earnings to fixed charges 5.22X 2.72X 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.