EXHIBIT 12
(PAGE 1 0F 2)
MATTEL, INC. AND SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(Amounts in thousands, except ratios)
(Unaudited)
FOR THE
THREE MONTHS ENDED FOR THE YEARS ENDED DECEMBER 31,(a)
------------------------ -------------------------------------------------------------
March 31, March 31,
1999 1998 1998 1997 1996 1995 1994
--------- --------- -------- --------- -------- -------- --------
EARNINGS AVAILABLE FOR FIXED
CHARGES:
Income (loss) before income taxes,
cumulative effect of changes in
accounting principles and
extraordinary items $(25,008) $17,756 $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 256 (5) (165) (144) 303 (36) (649)
Add:
Interest expense 24,858 16,392 110,833 90,130 100,226 102,983 87,071
Appropriate portion of rents(b) 3,831 3,947 16,262 17,665 19,527 19,450 16,224
-------- ------- -------- --------- -------- -------- --------
Earnings available for fixed charges $ 3,937 $38,090 $591,993 $532,733 $656,812 $627,065 $464,803
======== ======= ======== ======== ======== ======== ========
FIXED CHARGES:
Interest expense $ 24,858 $16,392 $110,833 $ 90,130 $100,226 $102,983 $ 87,071
Capitalized interest 36 - 993 991 1,789 693 285
Appropriate portion of rents(b) 3,831 3,947 16,262 17,665 19,527 19,450 16,224
-------- -------- -------- --------- -------- -------- --------
Fixed charges $ 28,725 $20,339 $128,088 $108,786 $121,542 $123,126 $103,580
======== ======= ======== ======== ======== ======== ========
Ratio of earnings to fixed charges 0.14 X 1.87 X 4.62 X 4.90 X 5.40 X 5.09 X 4.49 X
======== ======= ======== ======== ======== ======== ========
(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
(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)
(Unaudited)
FOR THE
THREE MONTHS ENDED FOR THE YEARS ENDED DECEMBER 31,(a)
------------------------ -------------------------------------------------------------
March 31, March 31,
1999 1998 1998 1997 1996 1995 1994
--------- --------- -------- --------- -------- -------- --------
EARNINGS AVAILABLE FOR FIXED
CHARGES:
Income (loss) before income taxes,
cumulative effect of changes in
accounting principles and
extraordinary items $(25,008) $17,756 $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 256 (5) (165) (144) 303 (36) (649)
Add:
Interest expense 24,858 16,392 110,833 90,130 100,226 102,983 87,071
Appropriate portion of rents(b) 3,831 3,947 16,262 17,665 19,527 19,450 16,224
-------- ------- -------- -------- -------- -------- --------
Earnings available for fixed charges $ 3,937 $38,090 $591,993 $532,733 $656,812 $627,065 $464,803
======== ======= ======== ======== ======== ======== ========
FIXED CHARGES:
Interest expense $ 24,858 $16,392 $110,833 $ 90,130 $100,226 $102,983 $ 87,071
Capitalized interest 36 - 993 991 1,789 693 285
Dividends - Series B preferred stock - - - 2,537 3,406 3,200 2,157
Dividends - Series C preferred stock 1,990 1,990 7,960 7,968 3,985 - -
Dividends - Series F preference stock - - - - - 3,342 4,689
Appropriate portion of rents(b) 3,831 3,947 16,262 17,665 19,527 19,450 16,224
-------- ------- -------- -------- -------- -------- --------
Fixed charges $ 30,715 $22,329 $136,048 $119,291 $128,933 $129,668 $110,426
======== ======= ======== ======== ======== ======== ========
Ratio of earnings to combined fixed
charges and preferred stock dividends 0.13 X 1.71 X 4.35 X 4.47 X 5.09 X 4.84 X 4.21 X
======== ======== ======== ======== ======== ======== ========
(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.