Mattel 2002 Annual Report Download - page 105

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SCHEDULE II
MATTEL, INC. AND SUBSIDIARIES
VALUATION AND QUALIFYING ACCOUNTS AND ALLOWANCES
(In thousands)
Balance at
Beginning
of Year
Additions
Charged to
Operations
Net
Deductions
Balance
at End
of Year
Allowance for Doubtful Accounts
Year Ended December 31, 2002 ........................ $55,912 $53,365(a) $(86,026)(b) $23,251
Year Ended December 31, 2001 ........................ 24,640 57,746(a) (26,474)(c) 55,912
Year Ended December 31, 2000 ........................ 29,520 18,280 (23,160)(c) 24,640
Allowance for Inventory Obsolescence
Year Ended December 31, 2002 ........................ $63,116 $40,367 $(54,365)(d) $49,118
Year Ended December 31, 2001 ........................ 58,559 40,813 (36,256)(d) 63,116
Year Ended December 31, 2000 ........................ 35,327 61,313 (38,081)(d) 58,559
(a) Increase in bad debt expense charged to the results of operations compared to prior years is primarily due
to charges totaling $33.5 million in 2002 and $22.1 million in 2001 related to the Kmart bankruptcy and
charges totaling $8.5 million in 2001 largely related to the bankruptcy declared by another US retailer.
(b) Increase in net deductions compared to prior years is primarily due to the writeoff of Kmart receivables
totaling $55.6 million during 2002.
(c) Includes writeoffs, recoveries of previous writeoffs, and currency translation adjustments.
(d) Primarily represents relief of previously established reserves resulting from the disposal of related
inventory, raw materials, writedowns and currency translation adjustments.