EXHIBIT 12
(PAGE 1 0F 2)
MATTEL, INC. AND SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(Amounts in thousands, except ratios)
(Unaudited)
FOR THE
THREE MONTHS ENDED FOR THE YEARS ENDED DECEMBER 31,(a)(b)
------------------------------- -------------------------------------------------------------------
March 31, March 31,
2001 2000 2000 1999 1998 1997 1996
------------ -------------- ---------- --------- ---------- --------- -----------
EARNINGS AVAILABLE FOR
FIXED CHARGES:
Income (loss) from
continuing
operations before
income taxes,
cumulative effect
of changes in
accounting
principles and
extraordinary items ($29,230) ($61,644) $225,424 $170,164 $459,446 $425,082 $536,756
Less (plus)
minority interest
and undistributed
income (loss) of less-
than-majority-owned
affiliates, net 123 195 440 145 (165) (144) 303
Add:
Interest expense 34,944 24,356 152,979 131,609 110,833 90,130 100,226
Appropriate
portion of
rents (c) 4,325 3,288 14,748 11,974 16,262 17,665 19,527
---------- ----------- ---------- ---------- ---------- ---------- ----------
Earnings available
for fixed charges $ 10,162 ($33,805) $393,591 $313,892 $586,376 $532,733 $656,812
========== =========== ========== ========== ========== ========== ==========
FIXED CHARGES:
Interest expense $ 34,944 $ 24,356 $152,979 $131,609 $110,833 $ 90,130 $100,226
Capitalized interest - 49 507 527 993 991 1,789
Appropriate portion
of rents (c) 4,325 3,288 14,748 11,974 16,262 17,665 19,527
---------- ----------- ---------- --------- ---------- ---------- ----------
Fixed charges $ 39,269 $ 27,693 $168,234 $144,110 $128,088 $108,786 $121,542
========== =========== ========== ========= ========== ========== ==========
Ratio of earnings
to fixed charges 0.26 (d) (1.22)(e) 2.34 X 2.18 X 4.58 X 4.90 X 5.40 X
========== =========== ========== ========= ========== =========== ==========
(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 was
seported as a discontinued operation effective March 31, 2000.
(b) The ratio of earnings to fixed charges for 1996 and 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.
(d) Earnings did not cover fixed charges by $29.1 million for the three-month
period ended March 31, 2001.
(e) Primarily as a result of a $53.1 million charge to earnings taken in the
first quarter of 2000 related to the departure of certain senior
executives, earnings did not cover fixed charges by $61.5 million for the
three-month period ended March 31, 2000.
EXHIBIT 12
(Page 2 of 2)
MATTEL, INC. AND SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES
AND PREFERRED STOCK DIVIDENDS
(Amounts in thousands, except ratios)
(Unaudited)
FOR THE
THREE MONTHS ENDED FOR THE YEARS ENDED DECEMBER 31, (a)(b)
----------------------------- -----------------------------------------------------------------
March 31, March 31,
2001 2000 2000 1999 1998 1997 1996
----------------------------- -----------------------------------------------------------------
EARNINGS AVAILABLE
FOR FIXED CHARGES:
Income (loss) from
continuing
operations before
income taxes,
cumulative effect
of changes in
accounting
principles and
extraordinary items ($29,230) ($61,644) $225,424 $170,164 $459,446 $425,082 $536,756
Less (plus) minority
interest and
undistributed
income (loss)
of less-than-
majority-owned
affiliates, net 123 195 440 145 (165) (144) 303
Add:
Interest expense 34,944 24,356 152,979 131,609 110,833 90,130 100,226
Appropriate
portion of
rents (c) 4,325 3,288 14,748 11,974 16,262 17,665 19,527
---------- --------- ---------- ---------- ---------- ---------- ----------
Earnings available
for fixed charges $10,162 ($33,805) $393,591 $313,892 $586,376 $532,733 $656,812
========== ========= ========== ========== ========== ========== ==========
FIXED CHARGES:
Interest expense $34,944 $24,356 $152,979 $131,609 $110,833 $90,130 $100,226
Capitalized interest - 49 507 527 993 991 1,789
Dividends - Series
B preferred stock - - - - - 2,537 3,406
Dividends - Series C
preferred stock - - - 3,980 7,960 7,968 3,985
Appropriate portion
of rents (c) 4,325 3,288 14,748 11,974 16,262 17,665 19,527
---------- --------- ---------- ---------- ---------- ---------- ----------
Fixed charges $39,269 $27,693 $168,234 $148,098 $136,048 $119,291 $128,933
========== ========= ========== ========== ========== ========== ==========
Ratio of earnings to
combined fixed
charges and
preferred stock dividends 0.26 (d) (1.22) (e) 2.34 X 2.12 X 4.31 X 4.47 X 5.09 X
========== ========= ========== ========== ========== ========== ==========
(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 was reported as a discontinued
operation effective March 31, 2000.
(b) The ratio of earnings to combined fixed charges and preferred stock
dividends for 1996 and 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.
(d) Earnings did not cover fixed charges by $29.1 million for the three-month
period ended March 31, 2001.
(e) Primarily as a result of a $53.1 million charge to earnings taken in the
first quarter of 2000 related to the departure of certain senior
executives, earnings did not cover fixed charges by $61.5 million for the
three-month period ended March 31, 2000.