Mattel 1999 Annual Report Download - page 44

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Mattel, Inc. and Subsidiaries
Note 10 - Supplemental Financial Information
As of Year End
( In thousands) 199 9 19 9 8
Inventories include the following:
Raw materials and work in process $ 48 ,5 69 $ 4 8 ,473
Finished goods 49 5 ,7 2 7 59 5 ,7 9 7
$ 54 4 ,296 $ 64 4 ,2 7 0
Prepaid expenses and other current assets
include the following:
Deferred income taxes $ 9 1 ,5 4 5 $ 2 1 5 ,3 7 0
Other 23 9 ,1 5 7 1 56,40 2
$ 33 0 ,702 $ 371,7 7 2
Intangibles, net include the following:
Goodwill $1 ,2 7 4 ,643 $ 1 ,3 3 5 ,183
Other 11 8 ,6 7 2 1 49,45 1
$1 ,3 9 3 ,315 $ 1 ,4 8 4 ,634
Other assets include the following:
Deferred income taxes $ 29 6 ,8 05 $ 55 ,3 4 2
Other 26 7 ,3 8 1 2 08,98 2
$ 5 6 4 ,1 8 6 $ 26 4 ,324
Short-term borrowings include the following:
Notes payable $ 12 1 ,805 $ 1 2 1 ,006
Commercial paper 2 4 7 ,7 4 4 78 ,000
$ 36 9 ,5 4 9 $ 19 9 ,0 0 6
Accrued liabilities include the following:
Advertising and promotion $ 18 6 ,558 $ 16 4 ,5 4 3
Restructuring and other charges 170,84 5 85 ,6 2 3
Royalties 109,39 9 1 1 2 ,839
Other 35 9 ,0 7 2 3 85,83 2
$ 82 5 ,8 74 $ 748 ,8 3 7
For the Year
( In thousands) 1 9 9 9 1 9 9 8 1 9 9 7
Selling and administrative expenses
include the following:
Research and development $20 7 ,6 6 4 $274,8 2 0 $ 2 4 6,33 7
Supplemental disclosure of cash flow information:
Cash paid during the year for:
Interest $ 1 4 7,53 0 $ 1 2 4 ,087 $1 2 4 ,2 3 4
Income taxes 79 ,0 9 9 10 2 ,1 6 3 11 3 ,4 9 6
Noncash investing and financing activities:
Common stock issued for acquisitions:
Settlement of earn-out agreements $ 5 ,5 4 7 $ 5,57 2 $ 2 ,02 3
Sofsource, Inc. – 45,00 0 –
Mindscape, Inc. – 30 ,0 0 0 –
Other – – 7,32 1
Conversion of 5-1/ 2% Notes – 9 6 ,695 2 0 2 ,033
Conversion of 7% Notes – – 16,0 3 4
Increase in paid-in capital due to value of in-the-money
employee stock options acquired in connection
with acquisitions – – 2 ,969
Note 11 - New Accounting Pronouncement
In June 1 99 8, the Financial Accounting Standards Board issued Statement of
Financial Accounting Standards No. 1 33 , Accounting for Derivative Instruments and
Hedging Activities. This statement requires companies to record derivatives on the
balance sheet as assets or liabilities, measured at fair value. It also requires that
gains or losses resulting from changes in the values of those derivatives be accounted
for depending on the use of the derivative and whether it qualifies for hedge account-
ing. Mattel is required to adopt this statement for its fiscal year beginning January 1 ,
20 01 . Management believes the adoption of this statement will not have a material
impact on Mattel’s consolidated financial position or results of operations.