Mattel 2003 Annual Report Download - page 110

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SCHEDULE II
MATTEL, INC. AND SUBSIDIARIES
VALUATION AND QUALIFYING ACCOUNTS AND ALLOWANCES
Balance at
Beginning
of Year
Additions
Charged to
Operations
Net
Deductions
Balance
at End
of Year
(In thousands)
Allowance for Doubtful Accounts
Year ended December 31, 2003 ....................... $23,251 $10,688(a) $ (6,488)(b) $27,451
Year ended December 31, 2002 ....................... 55,912 53,365(a) (86,026)(b)(c) 23,251
Year ended December 31, 2001 ....................... 24,640 57,746(a) (26,474)(b) 55,912
Allowance for Inventory Obsolescence
Year ended December 31, 2003 ....................... $49,118 $36,992 $(32,463)(d) $53,647
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
(a) Decrease in bad debt expense charged to the results of operations in 2003 compared to 2002 and 2001 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) Includes writeoffs, recoveries of previous writeoffs, and currency translation adjustments.
(c) Increase in net deductions in 2002 compared to 2001 is primarily due to the writeoff of Kmart receivables
totaling $55.6 million during 2002.
(d) Primarily represents relief of previously established reserves resulting from the disposal of related
inventory, raw materials, writedowns and currency translation adjustments.