Mattel 2003 Annual Report Download - page 113

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EXHIBIT 12.0
(Page 1 of 2)
MATTEL, INC. AND SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(In thousands, except ratios)
For The Year Ended December 31, (a)
2003 2002 2001 2000 1999
Earnings Available For Fixed Charges:
Income from continuing operations before
income taxes and cumulative effect of change
in accounting principles .................. $740,854 $621,497 $430,010 $225,424 $170,164
Less (plus) minority interest and undistributed
income (loss) of less-than-majority-owned
affiliates, net ........................... 345 126 170 440 145
Add:
Interest expense ...................... 80,577 113,897 155,132 152,979 131,609
Appropriate portion of rents (b) .......... 16,627 16,615 14,923 14,748 11,974
Earnings available for fixed charges . . $838,403 $752,135 $600,235 $393,591 $313,892
Fixed Charges:
Interest expense .......................... $ 80,577 $113,897 $155,132 $152,979 $131,609
Capitalized interest ........................ — 43 6 507 527
Appropriate portion of rents (b) .............. 16,627 16,615 14,923 14,748 11,974
Fixed charges ........................ $ 97,204 $130,555 $170,061 $168,234 $144,110
Ratio of earnings to fixed charges .... 8.63X 5.76X 3.53X 2.34X 2.18X
(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) Portion of rental expenses which is deemed representative of an interest factor, not to exceed one-third of
total rental expense.