EX-12.0 5 dex120.htm COMPUTATION OF EARNINGS TO FIXED CHARGES Computation of Earnings to Fixed Charges

EXHIBIT 12.0

MATTEL, INC. AND SUBSIDIARIES

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

 

(Unaudited; in thousands, except ratios)

   For the Three
Months Ended
March 31,
2008		     For the Year Ended December 31,
    2007   2006   2005   2004     2003

Earnings Available for Fixed Charges:

            

(Loss) Income from continuing operations before income taxes and cumulative effect of changes in accounting principles

   $ (59,802 )   $ 703,398   $ 683,756   $ 652,049   $ 696,254     $ 740,854

Add: Minority interest (income) losses in consolidated subsidiaries

     (285 )     255     271     142     (93 )     345

Add:

            

Interest expense

     16,049       70,974     79,853     76,490     77,764       80,577

Appropriate portion of rents (a)

     7,245       28,245     25,724     20,475     18,831       16,627
                                       

(Losses) earnings available for fixed charges

   $ (36,793 )   $ 802,872   $ 789,604   $ 749,156   $ 792,756     $ 838,403
                                       

Fixed Charges:

            

Interest expense

   $ 16,049     $ 70,974   $ 79,853   $ 76,490   $ 77,764     $ 80,577

Appropriate portion of rents (a)

     7,245       28,245     25,724     20,475     18,831       16,627
                                       

Fixed charges

   $ 23,294     $ 99,219   $ 105,577   $ 96,965   $ 96,595     $ 97,204
                                       

Ratio of earnings to fixed charges

     (b)       8.09 X     7.48 X     7.73 X     8.21 X       8.63 X
                                       

 

(a) Portion of rental expenses that is deemed representative of an interest factor, which is one-third of total rental expense.
(b) Earnings for the three months ended March 31, 2008 were inadequate to cover fixed charges by approximately $60 million.