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 Years Ended December 31,(a) ----------------------------------------------- 1998 1997 1996 1995 1994 -------- -------- -------- -------- -------- Earnings Available for Fixed Charges: Income before income taxes, cumulative effect of changes in accounting principles and extraordinary items.......... $465,063 $425,082 $536,756 $504,668 $362,157 Less (plus) minority interest and undistributed income (loss) of less-than-majority- owned affiliates, net........ (165) (144) 303 (36) (649) Add: Interest expense............ 110,833 90,130 100,226 102,983 87,071 Appropriate portion of rents(b)................... 16,262 17,665 19,527 19,450 16,224 -------- -------- -------- -------- -------- Earnings available for fixed charges...................... $591,993 $532,733 $656,812 $627,065 $464,803 ======== ======== ======== ======== ======== Fixed Charges: Interest expense.............. $110,833 $ 90,130 $100,226 $102,983 $ 87,071 Capitalized interest.......... 993 991 1,789 693 285 Appropriate portion of rents(b)..................... 16,262 17,665 19,527 19,450 16,224 -------- -------- -------- -------- -------- Fixed charges................. $128,088 $108,786 $121,542 $123,126 $103,580 ======== ======== ======== ======== ======== Ratio of earnings to fixed charges...................... 4.62X 4.90X 5.40X 5.09X 4.49X ======== ======== ======== ======== ======== - -------- (a) The ratio of earnings to fixed charges for 1994 through 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. (b) 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 Years Ended December 31,(a) ----------------------------------------------- 1998 1997 1996 1995 1994 -------- -------- -------- -------- -------- Earnings Available for Fixed Charges: Income before income taxes, cumulative effect of changes in accounting principles and extraordinary items.......... $465,063 $425,082 $536,756 $504,668 $362,157 Less (plus) minority interest and undistributed income (loss) of less-than-majority- owned affiliates, net........ (165) (144) 303 (36) (649) Add: Interest expense............ 110,833 90,130 100,226 102,983 87,071 Appropriate portion of rents(b)................... 16,262 17,665 19,527 19,450 16,224 -------- -------- -------- -------- -------- Earnings available for fixed charges...................... $591,993 $532,733 $656,812 $627,065 $464,803 ======== ======== ======== ======== ======== Fixed Charges: Interest expense.............. $110,833 $ 90,130 $100,226 $102,983 $ 87,071 Capitalized interest.......... 993 991 1,789 693 285 Dividends--Series B preferred stock........................ -- 2,537 3,406 3,200 2,157 Dividends--Series C preferred stock........................ 7,960 7,968 3,985 -- -- Dividends--Series F preference stock........................ -- -- -- 3,342 4,689 Appropriate portion of rents (b).......................... 16,262 17,665 19,527 19,450 16,224 -------- -------- -------- -------- -------- Fixed charges................. $136,048 $119,291 $128,933 $129,668 $110,426 ======== ======== ======== ======== ======== Ratio of earnings to fixed charges...................... 4.35X 4.47X 5.09X 4.84X 4.21X ======== ======== ======== ======== ======== - -------- (a) The ratio of earnings to combined fixed charges and preferred stock dividends for 1994 through 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. (b) Portion of rental expenses which is deemed representative of an interest factor, not to exceed one-third of total rental expense.