EXHIBIT 12
(Page 1 of 2)
MATTEL, INC. AND SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(AMOUNTS IN THOUSANDS, EXCEPT RATIOS)
(UNAUDITED)
FOR THE
NINE MONTHS ENDED FOR THE YEARS ENDED DECEMBER 31, (A)
-------------------- --------------------------------------------
SEPT. 30, SEPT. 30,
1996 1995 1995 1994 1993 1992 1991
-------- -------- -------- -------- -------- -------- --------
EARNINGS AVAILABLE FOR FIXED
CHARGES:
Income before income taxes, cumulative effect of
changes in accounting principles and extraordinary item $391,385 $369,580 $532,902 $393,632 $236,646 $282,945 $214,326
Less (plus) minority interest and
undistributed income (loss)
of less-than-majority-owned
affiliates, net 253 (136) 197 215 124 (23) 2,432
Add:
Interest expense 52,491 51,804 73,589 55,449 62,614 68,716 64,334
Appropriate portion of rents (b) 10,984 10,448 14,276 11,242 11,276 11,898 7,871
-------- -------- -------- -------- -------- -------- --------
Earnings available for fixed charges $455,113 $431,696 $620,964 $460,538 $310,660 $363,536 $288,963
======== ======== ======== ======== ======== ======== ========
FIXED CHARGES:
Interest expense $ 52,491 $ 51,804 $ 73,589 $ 55,449 $ 62,614 $ 68,716 $ 64,334
Capitalized interest 1,457 439 693 285 - - -
Appropriate portion of rents (b) 10,984 10,448 14,276 11,242 11,276 11,898 7,871
-------- -------- -------- -------- -------- -------- --------
Fixed charges (c) $ 64,932 $ 62,691 $ 88,558 $ 66,976 $ 73,890 $ 80,614 $ 72,205
======== ======== ======== ======== ======== ======== ========
Ratio of earnings to fixed charges 7.01 X 6.89 X 7.01 X 6.88 X 4.20 X 4.51 X 4.00 X
======== ======== ======== ======== ======== ======== ========
(a) Consolidated financial information for 1993, 1992 and 1991 has been
restated for the effects of the November 1993 merger of Fisher-Price, Inc.
into a wholly-owned subsidiary of the Company, accounted for as a pooling
of interests. Fisher-Price, Inc. was excluded from periods prior to July 1,
1991, while its business was operated as a division of The Quaker Oats
Company.
(b) Portion of rental expenses which is deemed representative of an interest
factor, not to exceed one-third of total rental expense.
(c) Until July 1, 1991, the Company was a guarantor of certain foreign bank
lines of credit extended to less-than-majority-owned joint ventures.
Performance by the Company pursuant to these guarantees was deemed
unlikely; thus the associated fixed charges have been excluded from the
computation of the ratio of earnings to fixed charges. The portion of
fixed charges paid by less-than-majority-owned joint ventures for which
the Company was guarantor was approximately $4.5 million in 1991.
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
NINE MONTHS ENDED FOR THE YEARS ENDED DECEMBER 31, (A)
--------------------- ----------------------------------------------------
SEPT. 30, SEPT. 30,
1996 1995 1995 1994 1993 1992 1991
--------- --------- -------- -------- -------- -------- --------
EARNINGS AVAILABLE FOR FIXED
CHARGES:
Income before income taxes, cumulative effect of
changes in accounting principles and extraordinary
item $391,385 $369,580 $532,902 $393,632 $236,646 $282,945 $214,326
Less (plus) minority interest and
undistributed income (loss)
of less-than-majority-owned
affiliates, net 253 (136) 197 215 124 (23) 2,432
Add:
Interest expense 52,491 51,804 73,589 55,449 62,614 68,716 64,334
Dividends-STAR preferred stock - - - - - - 1,257
Appropriate portion of rents (b) 10,984 10,448 14,276 11,242 11,276 11,898 7,871
-------- -------- -------- -------- -------- -------- --------
Earnings available for fixed charges $455,113 $431,696 $620,964 $460,538 $310,660 $363,536 $290,220
======== ======== ======== ======== ======== ======== ========
FIXED CHARGES AND PREFERRED STOCK DIVIDENDS:
Interest expense $ 52,491 $ 51,804 $ 73,589 $ 55,449 $ 62,614 $ 68,716 $ 64,334
Capitalized interest 1,457 439 693 285 - - -
Dividends-STAR preferred stock - - - - - - 1,257
Dividends-Series F preference stock - 3,297 3,342 4,689 4,894 4,826 4,830
Appropriate portion of rents (b) 10,984 10,448 14,276 11,242 11,276 11,898 7,871
-------- -------- -------- -------- -------- -------- --------
Fixed charges (c) $ 64,932 $ 65,988 $ 91,900 $ 71,665 $ 78,784 $ 85,440 $ 78,292
======== ======== ======== ======== ======== ======== ========
Ratio of earnings to combined
fixed charges and preferred
stock dividends 7.01 X 6.54 X 6.76 X 6.43 X 3.94 X 4.25 X 3.71 X
======== ======== ======== ======== ======== ======== ========
(a) Consolidated financial information for 1993, 1992 and 1991 has been
restated for the effects of the November 1993 merger of Fisher-Price, Inc.
into a wholly-owned subsidiary of the Company, accounted for as a pooling
of interests. Fisher-Price, Inc. was excluded from periods prior to July 1,
1991, while its business was operated as a division of The Quaker Oats
Company.
(b) Portion of rental expenses which is deemed representative of an interest
factor, not to exceed one-third of total rental expense.
(c) Until July 1, 1991, the Company was a guarantor of certain foreign bank
lines of credit extended to less-than-majority-owned joint ventures.
Performance by the Company pursuant to these guarantees was deemed
unlikely; thus the associated fixed charges have been excluded from the
computation of the ratio of earnings to combined fixed charges and
preferred stock dividends. The portion of fixed charges paid by
less-than-majority-owned joint ventures for which the Company was guarantor
was approximately $4.5 million in 1991.