MATTEL, INC. AND SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES EXHIBIT 12.1
(Amounts in thousands, except ratios) (PAGE 1 OF 2)
(Unaudited)
FOR THE
NINE MONTHS ENDED FOR THE YEARS ENDED DECEMBER 31, (a)(b)
-------------------------------------------------------------------------------------
Sept. 30, Sept. 30,
2001 2000 2000 1999 1998 1997 1996
------------ ----------- ---------- --------- ---------- --------- ----------
EARNINGS AVAILABLE FOR FIXED
CHARGES:
Income from continuing operations before
income taxes, cumulative effect of
changes in accounting principles
and extraordinary items $239,569 $ 81,904 $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 381 451 440 145 (165) (144) 303
Add:
Interest expense 114,065 102,926 152,979 131,609 110,833 90,130 100,226
Appropriate portion of rents (c) 12,700 9,091 14,748 11,974 16,262 17,665 19,527
------------ ----------- ---------- --------- ---------- --------- ----------
Earnings available for fixed charges $366,715 $194,372 $393,591 $313,892 $586,376 $532,733 $656,812
============ =========== ========== ========= ========== ========= ==========
FIXED CHARGES:
Interest expense $114,065 $102,926 $152,979 $131,609 $110,833 $ 90,130 $100,226
Capitalized interest - 74 507 527 993 991 1,789
Appropriate portion of rents (c) 12,700 9,091 14,748 11,974 16,262 17,665 19,527
------------ ----------- ---------- --------- ---------- --------- ----------
Fixed charges $126,765 $112,091 $168,234 $144,110 $128,088 $108,786 $121,542
============ =========== ========== ========= ========== ========= ==========
Ratio of earnings to fixed charges 2.89 X 1.73 X 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.
MATTEL, INC. AND SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES
AND PREFERRED STOCK DIVIDENDS
(Amounts in thousands, except ratios) EXHIBIT 12.1
(PAGE 2 OF 2)
(Unaudited)
FOR THE
NINE MONTHS ENDED FOR THE YEARS ENDED DECEMBER 31, (a)(b)
----------------------- ----------------------------------------------------------
Sept. 30, Sept. 30,
2001 2000 2000 1999 1998 1997 1996
----------- ---------- ---------- ---------- --------- --------- -----------
EARNINGS AVAILABLE FOR FIXED
CHARGES:
Income from continuing operations before
income taxes, cumulative effect of
changes in accounting principles
and extraordinary items $239,569 $ 81,904 $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 381 451 440 145 (165) (144) 303
Add:
Interest expense 114,065 102,926 152,979 131,609 110,833 90,130 100,226
Appropriate portion of rents (c) 12,700 9,091 14,748 11,974 16,262 17,665 19,527
----------- --------- ---------- --------- --------- --------- -----------
Earnings available for fixed charges $366,715 $194,372 $393,591 $313,892 $586,376 $532,733 $656,812
=========== ========= ========== ========= ========= ========= ===========
FIXED CHARGES:
Interest expense $114,065 $102,926 $152,979 $131,609 $110,833 $90,130 $100,226
Capitalized interest - 74 507 527 993 991 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) 12,700 9,091 14,748 11,974 16,262 17,665 19,527
----------- --------- ---------- --------- --------- --------- -----------
Fixed charges $126,765 $112,091 $168,234 $148,090 $136,048 $119,291 $128,933
=========== ========= ========== ========= ========= ========= ===========
Ratio of earnings to combined fixed charges
and preferred stock dividends 2.89 X 1.73 X 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.