Mattel 2012 Annual Report Download - page 51

Accounts receivable decreased $19.9 million from December 31, 2011 to $1.23 billion at December 31,
2012, primarily due to the timing of cash collections.
Inventories decreased $21.9 million from December 31, 2011 to $465.1 million at December 31, 2012,
driven primarily by lower raw material and finished goods levels.
Accounts payable and accrued liabilities increased $319.3 million from December 31, 2011 to $1.27 billion
at December 31, 2012, driven primarily by the accrual related to the Litigation Charge of $137.8 million, the
timing and amount of payments to vendors and various accrued liabilities, including incentive compensation and
taxes other than income taxes.
As of December 31, 2012, Mattel had foreign short-term bank loans outstanding of $9.8 million, an increase
of $1.8 million from 2011. The current portion of long-term debt increased $350.0 million from December 31,
2011 to $400.0 million at December 31, 2012, due to the reclassification of $350.0 million of 2008 Senior Notes
and $50.0 million of Medium-term notes to current, partially offset by the repayment of $50.0 million of
Medium-term notes.
A summary of Mattel’s capitalization is as follows:
December 31,
2012 2011
(In millions, except percentage
information)
Medium-term notes ................................................. $ — 0%$ 50.0 1%
2008 Senior Notes .................................................. — 0 350.0 7
2010 Senior Notes .................................................. 500.0 10 500.0 11
2011 Senior Notes .................................................. 600.0 13 600.0 13
Total noncurrent long-term debt ....................................... 1,100.0 23 1,500.0 32
Other noncurrent liabilities ........................................... 643.7 13 522.1 12
Stockholders’ equity ................................................ 3,067.0 64 2,610.6 56
$4,810.7 100% $4,632.7 100%
Total long-term debt decreased $400.0 million from December 31, 2011 to $1.10 billion at December 31,
2012, due to the reclassification of $350.0 million of the 2008 Senior Notes that mature in March 2013 and the
reclassification of $50.0 million of Medium-term notes that mature in November 2013 to current. Mattel expects
to satisfy its future long-term capital needs through the generation of corporate earnings and issuance of long-
term debt instruments, as needed.
Stockholders’ equity increased $456.4 million from December 31, 2011 to $3.07 billion at December 31,
2012, primarily as a result of net income, issuance of treasury stock for the exercise of stock options, and share-
based compensation expense, partially offset by dividend payments and share repurchases.
Mattel’s debt-to-capital ratio, including short-term borrowings and the current portion of long-term debt,
decreased to 33.0% at December 31, 2012 from 37.4% at December 31, 2011, primarily as a result of the
increase to stockholders’ equity. Mattel’s objective is to maintain a year-end debt-to-capital ratio of about 35%.
Off-Balance Sheet Arrangements
Mattel has no off-balance sheet arrangements that have or are reasonably likely to have a current or future
material effect on its financial condition, revenues or expenses, results of operations, liquidity, capital
expenditures, or capital resources.
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