EXHIBIT 12
MATTEL, INC. AND SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(Amounts in thousands, except ratios)
For The Years Ended December 31, (a)(b)
-----------------------------------------------------
1999 1998 1997 1996 1995
--------- -------- -------- -------- --------
EARNINGS AVAILABLE FOR
FIXED CHARGES:
Income (loss) before
income taxes,
cumulative effect of
changes in accounting
principles and
extraordinary items.... $(110,743) $391,632 $ 1,216 $188,898 $506,243
Less (plus) minority
interest and
undistributed income
(loss) of less-than-
majority-owned
affiliates, net........ 145 (165) (144) 303 (36)
Add:
Interest expense....... 151,609 128,468 112,612 126,929 108,298
Appropriate portion of
rents (c)............. 17,070 18,994 21,007 21,814 21,155
--------- -------- -------- -------- --------
Earnings available for
fixed charges.......... $ 58,081 $538,929 $134,691 $337,944 $635,660
========= ======== ======== ======== ========
FIXED CHARGES:
Interest expense........ $ 151,609 $128,468 $112,612 $126,929 $108,298
Capitalized interest.... 527 993 991 1,789 693
Appropriate portion of
rents (c).............. 17,070 18,994 21,007 21,814 21,155
--------- -------- -------- -------- --------
Fixed charges........... $ 169,206 $148,455 $134,610 $150,532 $130,146
========= ======== ======== ======== ========
Ratio of earnings to
fixed charges.......... 0.34 X 3.63 X 1.00 X 2.24 X 4.88 X
========= ======== ======== ======== ========
- --------
(a) The ratio of earnings to fixed charges for all periods presented has been
restated for the effects of the May 1999 merger of The Learning Company,
Inc. ("Learning Company") into Mattel, which was accounted for as a pooling
of interests.
(b) The ratio of earnings to fixed charges for 1995 through 1997 has 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
COMPUTATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES
AND PREFERRED STOCK DIVIDENDS
(Amounts in thousands, except ratios)
For The Years Ended December 31, (a)(b)
----------------------------------------------------
1999 1998 1997 1996 1995
--------- -------- -------- -------- --------
EARNINGS AVAILABLE FOR
FIXED CHARGES:
Income (loss) before
income taxes,
cumulative effect of
changes in accounting
principles and
extraordinary items.... $(110,743) $391,632 $ 1,216 $188,898 $506,243
Less (plus) minority
interest and
undistributed income
(loss) of less-than-
majority-owned
affiliates, net........ 145 (165) (144) 303 (36)
Add:
Interest expense....... 151,609 128,468 112,612 126,929 108,298
Appropriate portion of
rents (c)............. 17,070 18,994 21,007 21,814 21,155
--------- -------- -------- -------- --------
Earnings available for
fixed charges.......... $ 58,081 $538,929 $134,691 $337,944 $635,660
========= ======== ======== ======== ========
FIXED CHARGES:
Interest expense........ $ 151,609 $128,468 $112,612 $126,929 $108,298
Capitalized interest.... 527 993 991 1,789 693
Dividends--Series B
preferred stock........ -- -- 2,537 3,406 3,200
Dividends--Series C
preferred stock........ 3,980 7,960 7,968 3,985 --
Dividends--Series F
preference stock....... -- -- -- -- 3,342
Appropriate portion of
rents (c).............. 17,070 18,994 21,007 21,814 21,155
--------- -------- -------- -------- --------
Fixed charges........... $ 173,186 $156,415 $145,115 $157,923 $136,688
========= ======== ======== ======== ========
Ratio of earnings to
fixed charges.......... 0.34 X 3.45 X 0.93 X 2.14 X 4.65 X
========= ======== ======== ======== ========
- --------
(a) The ratio of earnings to combined fixed charges and preferred stock
dividends for all periods presented has been restated for the effects of
the May 1999 merger of Learning Company into Mattel, which was accounted
for as a pooling of interests.
(b) The ratio of earnings to combined fixed charges and preferred stock
dividends for 1995 through 1997 has 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.