EX-12 3 dex12.txt COMPUTATION OF RATIO OF EARNINGS TO CHARGES 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)(b) ------------------------------- ------------------------------------------------------------------- March 31, March 31, 2001 2000 2000 1999 1998 1997 1996 ------------ -------------- ---------- --------- ---------- --------- ----------- EARNINGS AVAILABLE FOR FIXED CHARGES: Income (loss) from continuing operations before income taxes, cumulative effect of changes in accounting principles and extraordinary items ($29,230) ($61,644) $225,424 $170,164 $459,446 $425,082 $536,756 Less (plus) minority interest and undistributed income (loss) of less- than-majority-owned affiliates, net 123 195 440 145 (165) (144) 303 Add: Interest expense 34,944 24,356 152,979 131,609 110,833 90,130 100,226 Appropriate portion of rents (c) 4,325 3,288 14,748 11,974 16,262 17,665 19,527 ---------- ----------- ---------- ---------- ---------- ---------- ---------- Earnings available for fixed charges $ 10,162 ($33,805) $393,591 $313,892 $586,376 $532,733 $656,812 ========== =========== ========== ========== ========== ========== ========== FIXED CHARGES: Interest expense $ 34,944 $ 24,356 $152,979 $131,609 $110,833 $ 90,130 $100,226 Capitalized interest - 49 507 527 993 991 1,789 Appropriate portion of rents (c) 4,325 3,288 14,748 11,974 16,262 17,665 19,527 ---------- ----------- ---------- --------- ---------- ---------- ---------- Fixed charges $ 39,269 $ 27,693 $168,234 $144,110 $128,088 $108,786 $121,542 ========== =========== ========== ========= ========== ========== ========== Ratio of earnings to fixed charges 0.26 (d) (1.22)(e) 2.34 X 2.18 X 4.58 X 4.90 X 5.40 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 seported as a discontinued operation effective March 31, 2000. (b) The ratio of earnings to fixed charges for 1996 and 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 $29.1 million for the three-month period ended March 31, 2001. (e) Primarily as a result of a $53.1 million charge to earnings taken in the first quarter of 2000 related to the departure of certain senior executives, earnings did not cover fixed charges by $61.5 million for the three-month period ended March 31, 2000. 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)(b) ----------------------------- ----------------------------------------------------------------- March 31, March 31, 2001 2000 2000 1999 1998 1997 1996 ----------------------------- ----------------------------------------------------------------- EARNINGS AVAILABLE FOR FIXED CHARGES: Income (loss) from continuing operations before income taxes, cumulative effect of changes in accounting principles and extraordinary items ($29,230) ($61,644) $225,424 $170,164 $459,446 $425,082 $536,756 Less (plus) minority interest and undistributed income (loss) of less-than- majority-owned affiliates, net 123 195 440 145 (165) (144) 303 Add: Interest expense 34,944 24,356 152,979 131,609 110,833 90,130 100,226 Appropriate portion of rents (c) 4,325 3,288 14,748 11,974 16,262 17,665 19,527 ---------- --------- ---------- ---------- ---------- ---------- ---------- Earnings available for fixed charges $10,162 ($33,805) $393,591 $313,892 $586,376 $532,733 $656,812 ========== ========= ========== ========== ========== ========== ========== FIXED CHARGES: Interest expense $34,944 $24,356 $152,979 $131,609 $110,833 $90,130 $100,226 Capitalized interest - 49 507 527 993 991 1,789 Dividends - Series B preferred stock - - - - - 2,537 3,406 Dividends - Series C preferred stock - - - 3,980 7,960 7,968 3,985 Appropriate portion of rents (c) 4,325 3,288 14,748 11,974 16,262 17,665 19,527 ---------- --------- ---------- ---------- ---------- ---------- ---------- Fixed charges $39,269 $27,693 $168,234 $148,098 $136,048 $119,291 $128,933 ========== ========= ========== ========== ========== ========== ========== Ratio of earnings to combined fixed charges and preferred stock dividends 0.26 (d) (1.22) (e) 2.34 X 2.12 X 4.31 X 4.47 X 5.09 X ========== ========= ========== ========== ========== ========== ==========
(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 1996 and 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 $29.1 million for the three-month period ended March 31, 2001. (e) Primarily as a result of a $53.1 million charge to earnings taken in the first quarter of 2000 related to the departure of certain senior executives, earnings did not cover fixed charges by $61.5 million for the three-month period ended March 31, 2000.