EX-12.0 3 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 Six
Months Ended
June 30,
2008		     For the Years Ended December 31,
    2007   2006   2005   2004     2003

Earnings Available for Fixed Charges:

            

(Loss) income from continuing operations before income taxes

   $ (44,869 )   $ 703,398   $ 683,756   $ 652,049   $ 696,254     $ 740,854

Add: Minority interest (income) losses in consolidated subsidiaries

     (341 )     255     271     142     (93 )     345

Add:

            

Interest expense

     32,615       70,974     79,853     76,490     77,764       80,577

Appropriate portion of rents (a)

     14,770       28,245     25,724     20,475     18,831       16,627
                                       

Earnings available for fixed charges

   $          2,175     $   802,872   $   789,604   $   749,156   $   792,756     $   838,403
                                       

Fixed Charges:

            

Interest expense

   $ 32,615     $ 70,974   $ 79,853   $ 76,490   $ 77,764     $ 80,577

Appropriate portion of rents (a)

     14,770       28,245     25,724     20,475     18,831       16,627
                                       

Fixed charges

   $ 47,385     $ 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 six months ended June 30, 2008 were inadequate to cover fixed charges by approximately $45 million.