EX-12.0 4 dex120.txt COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES 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.