EXHIBIT 12.0
(Page 1 of 2)
MATTEL, INC. AND SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(Amounts in thousands, except ratios)
For the Year Ended December 31, (a)(b)
------------------------------------------------
2001 2000 1999 1998 1997
-------- -------- -------- -------- --------
Earnings available for fixed
charges:
Income from continuing
operations before income
taxes, cumulative effect
of change in accounting
principles and
extraordinary item........ $430,010 $225,424 $170,164 $459,446 $425,082
Less (plus) minority
interest and undistributed
income (loss) of less-
than-majority-owned
affiliates, net........... 170 440 145 (165) (144)
Add:
Interest expense......... 155,132 152,979 131,609 110,833 90,130
Appropriate portion of
rents (c)............... 14,923 14,748 11,974 16,262 17,665
-------- -------- -------- -------- --------
Earnings available for
fixed charges........... $600,235 $393,591 $313,892 $586,376 $532,733
======== ======== ======== ======== ========
Fixed charges:
Interest expense........... $155,132 $152,979 $131,609 $110,833 $ 90,130
Capitalized interest....... 6 507 527 993 991
Appropriate portion of
rents (c)................. 14,923 14,748 11,974 16,262 17,665
-------- -------- -------- -------- --------
Fixed charges.............. $170,061 $168,234 $144,110 $128,088 $108,786
======== ======== ======== ======== ========
Ratio of earnings to fixed
charges..................... 3.53x 2.34x 2.18x 4.58x 4.90x
======== ======== ======== ======== ========
- --------
(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 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.
EXHIBIT 12.0
(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)
For the Year Ended December 31, (a)(b)
------------------------------------------------
2001 2000 1999 1998 1997
-------- -------- -------- -------- --------
Earnings available for fixed
charges:
Income from continuing
operations before income
taxes, cumulative effect
of change in accounting
principles and
extraordinary item........ $430,010 $225,424 $170,164 $459,446 $425,082
Less (plus) minority
interest and undistributed
income (loss) of less-
than-majority-owned
affiliates, net........... 170 440 145 (165) (144)
Add:
Interest expense......... 155,132 152,979 131,609 110,833 90,130
Appropriate portion of
rents (c)............... 14,923 14,748 11,974 16,262 17,665
-------- -------- -------- -------- --------
Earnings available for
fixed charges........... $600,235 $393,591 $313,892 $586,376 $532,733
======== ======== ======== ======== ========
Fixed charges:
Interest expense........... $155,132 $152,979 $131,609 $110,833 $ 90,130
Capitalized interest....... 6 507 527 993 991
Dividends--Series B
preferred stock........... -- -- -- -- 2,537
Dividends--Series C
preferred stock........... -- -- 3,980 7,960 7,968
Appropriate portion of
rents (c)................. 14,923 14,748 11,974 16,262 17,665
-------- -------- -------- -------- --------
Fixed charges.............. $170,061 $168,234 $148,090 $136,048 $119,291
======== ======== ======== ======== ========
Ratio of earnings to combined
fixed charges and preferred
stock dividends............. 3.53x 2.34x 2.12x 4.31x 4.47x
======== ======== ======== ======== ========
- --------
(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 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.