MATTEL, INC. AND SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES EXHIBIT 12
(Amounts in thousands, except ratios) (PAGE 1 OF 2)
(Unaudited)
FOR THE
THREE MONTHS ENDED FOR THE YEARS ENDED DECEMBER 31, (a)(b)
-------------------- ------------------------------------------------------------
March 31, March 31,
2002 2001 2001 2000 1999 1998 1997
-------- --------- -------- -------- -------- -------- --------
EARNINGS AVAILABLE FOR FIXED CHARGES:
Income (loss) from continuing
operations before income taxes,
cumulative effect of changes in
accounting principles and
extraordinary items ($6,468) ($29,230) $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 (337) 123 170 440 145 (165) (144)
Add:
Interest expense 29,607 34,944 155,132 152,979 131,609 110,833 90,130
Appropriate portion of rents (c) 4,200 4,325 14,923 14,748 11,974 16,262 17,665
-------- --------- -------- -------- -------- -------- --------
Earnings available for fixed charges $27,002 $10,162 $600,235 $393,591 $313,892 $586,376 $532,733
======== ========= ======== ======== ======== ======== ========
FIXED CHARGES:
Interest expense $29,607 $34,944 $155,132 $152,979 $131,609 $110,833 $90,130
Capitalized interest 13 - 6 507 527 993 991
Appropriate portion of rents (c) 4,200 4,325 14,923 14,748 11,974 16,262 17,665
-------- --------- -------- -------- -------- -------- --------
Fixed charges $33,820 $39,269 $170,061 $168,234 $144,110 $128,088 $108,786
======== ========= ======== ======== ======== ======== ========
Ratio of earnings to fixed charges 0.80 (d) 0.26 (e) 3.53 X 2.34 X 2.18 X 4.58 X 4.90 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 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 $6.8 million for the three-month
period ended March 31, 2002.
(e) Earnings did not cover fixed charges by $29.1 million for the three-month
period ended March 31, 2001.
MATTEL, INC. AND SUBSIDIARIES EXHIBIT 12
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES (PAGE 2 OF 2)
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,
2002 2001 2001 2000 1999 1998 1997
------------ ------------ -------- --------- -------- -------- --------
EARNINGS AVAILABLE FOR FIXED
CHARGES:
Income (loss) from continuing operations
before income taxes, cumulative effect
of changes in accounting principles and
extraordinary items $ (6,468) $ (29,230) $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 (337) 123 170 440 145 (165) (144)
Add:
Interest expense 29,607 34,944 155,132 152,979 131,609 110,833 90,130
Appropriate portion of rents(c) 4,200 4,325 14,923 14,748 11,974 16,262 17,665
-------- --------- -------- -------- -------- -------- --------
Earnings available for fixed charges $ 27,002 $ 10,162 $600,235 $393,591 $313,892 $586,376 $532,733
======== ========= ======== ======== ======== ======== ========
FIXED CHARGES:
Interest expense $ 29,607 $ 34,944 $155,132 $152,979 $131,609 $110,833 $ 90,130
Capitalized interest 13 -- 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) 4,200 4,325 14,923 14,748 11,974 16,262 17,665
-------- --------- -------- -------- -------- -------- --------
Fixed charges $33,820 $ 39,269 $170,061 $168,234 $148,090 $136,048 $119,291
======== ========= ======== ======== ======== ======== ========
Ratio of earnings to combined fixed charges and
preferred stock dividends 0.80 (d) 0.26 (e) 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.
(d) Earnings did not cover fixed charges by $6.8 million for the three-month
period ended March 31, 2002.
(e) Earnings did not cover fixed charges by $29.1 million for
the three-month period ended March 31, 2001.