MATTEL, INC. AND SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES EXHIBIT 12
(Amounts in thousands, except ratios) (PAGE 1 0F 2)
(Unaudited)
FOR THE
SIX MONTHS ENDED
--------------------------------
June 30, June 30,
2001 2000
----------- -----------
EARNINGS AVAILABLE FOR FIXED
CHARGES:
Income (loss) from continuing operations before income taxes,
cumulative effect of changes in accounting principles and
extraordinary items ($36,022) ($53,354)
Less (plus) minority interest and undistributed income (loss)
of less-than-majority-owned affiliates, net 242 441
Add:
Interest expense 74,512 60,301
Appropriate portion of rents (c) 8,463 7,001
-------- --------
Earnings available for fixed charges $47,195 $14,389
======== =======
FIXED CHARGES:
Interest expense $74,512 $60,301
Capitalized interest - 51
Appropriate portion of rents (c) 8,463 7,001
-------- --------
Fixed charges $82,975 $67,353
======== =======
Ratio of earnings to fixed charges 0.57 (d) 0.21 (e)
======== =======
FOR THE YEARS ENDED DECEMBER 31, (a)(b)
-----------------------------------------------------
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 $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 440 145 (165) (144) 303
Add:
Interest expense 152,979 131,609 110,833 90,130 100,226
Appropriate portion of rents (c) 14,748 11,974 16,262 17,665 19,527
-------- -------- -------- -------- --------
Earnings available for fixed charges $393,591 $313,892 $586,376 $532,733 $656,812
======== ======== ======== ======== ========
FIXED CHARGES:
Interest expense $152,979 $131,609 $110,833 $ 90,130 $100,226
Capitalized interest 507 527 993 991 1,789
Appropriate portion of rents (c) 14,748 11,974 16,262 17,665 19,527
-------- -------- -------- -------- --------
Fixed charges $168,234 $144,110 $128,088 $108,786 $121,542
======== ======== ======== ======== ========
Ratio of earnings to fixed charges 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
reported 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 $35.8 million for the six-month
period ended June 30, 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 $53.0 million for the
six month period ended June 30, 2000.
MATTEL, INC. AND SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES
AND PREFERRED STOCK DIVIDENDS EXHIBIT 12
(Amounts in thousands, except ratios) (Page 2 of 2)
(Unaudited)
FOR THE
SIX MONTHS ENDED
-------------------------------
June 30, June 30,
2001 2000
---------- ----------
EARNINGS AVAILABLE FOR FIXED
CHARGES:
Income (loss) from continuing operations before income taxes,
cumulative effect changes in accounting principles and
extraordinary items ($36,022) ($53,354)
Less (plus) minority interest and undistributed income (loss)
of less-than-majority-owned affiliates, net 242 441
Add:
Interest expense 74,512 60,301
Appropriate portion of rents (c) 8,463 7,001
-------- --------
Earnings available for fixed charges $47,195 $14,389
======== ========
FIXED CHARGES:
Interest expense $74,512 $60,301
Capitalized interest - 51
Dividends-Series B preferred stock - -
Dividends-Series C preferred stock - -
Appropriate portion of rents (c) 8,463 7,001
-------- --------
Fixed charges $82,975 $67,353
======== ========
Ratio of earnings to combined fixed charges and
preferred stock dividends 0.57 (d) 0.21 (e)
======== ========
FOR THE YEARS ENDED DECEMBER 31, (a)(b)
------------------------------------------------------
2000 1999 1998 1997 1996
--------- --------- --------- ---------- ---------
EARNINGS AVAILABLE FOR FIXED
CHARGES:
Income (loss) from continuing operations before income taxes,
cumulative effect changes in accounting principles and
extraordinary items $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 440 145 (165) (144) 303
Add:
Interest expense 152,979 131,609 110,833 90,130 100,226
Appropriate portion of rents (c) 14,748 11,974 16,262 17,665 19,527
-------- -------- -------- -------- --------
Earnings available for fixed charges $393,591 $313,892 $586,376 $532,733 $656,812
======== ======== ======== ======== ========
FIXED CHARGES:
Interest expense $152,979 $131,609 $110,833 $90,130 $100,226
Capitalized interest 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) 14,748 11,974 16,262 17,665 19,527
-------- -------- -------- -------- --------
Fixed charges $168,234 $148,090 $136,048 $119,291 $128,933
======== ======== ======== ======== ========
Ratio of earnings to combined fixed charges and
preferred stock dividends 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 fixed charges 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 $35.8 million for the six-month
period ended June 30, 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 $53.0 million for the
six month period ended June 30, 2000.