Mattel 2012 Annual Report Download - page 63

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Buy Sell
Contract
Amount
Weighted
Average
Contract
Rate
Fair
Value
Contract
Amount
Weighted
Average
Contract
Rate
Fair
Value
(In thousands of US dollars, except for rates)
Australian dollar* ....................... $ 55,773 1.05 $ (667) $ — — $ —
British pound sterling* ................... 14,652 1.63 (4) — — —
Canadian dollar* ........................ 11,164 1.02 (76) 23,027 1.01 21
Czech koruna ........................... 4,867 19.05 16 — — —
Danish krone ........................... — — — 6,066 5.64 22
Euro* ................................. 471,073 1.32 (1,412) 354,653 1.30 (4,840)
Hungarian forint ........................ 2,592 217.88 (28) — — —
Indonesian rupiah ....................... 80,701 9,859.58 (229) — — —
Japanese yen ........................... 17,462 84.00 (428) 18,221 83.98 446
Mexican peso ........................... 128,369 13.01 1,701 51,568 12.79 417
New Turkish lira ........................ — — — 5,164 1.78 (3)
New Zealand dollar* ..................... 15,998 1.19 (239) — — —
Norwegian krone ........................ 9,896 5.60 68 — — —
Polish zloty ............................ — — — 1,669 3.09 6
Russian ruble ........................... — — — 9,279 31.19 (181)
Singapore dollar ........................ 4,073 1,220.00 (11) — — —
Swedish krona .......................... 7,358 6.60 101 — — —
Swiss franc ............................. 25,653 0.91 (99) — — —
Taiwan dollar ........................... — — — 12,892 29.23 (115)
$849,631 $(1,307) $482,539 $(4,227)
*The weighted average contract rate for these contracts is quoted in US dollar per local currency.
For the purchase of foreign currencies, fair value reflects the amount, based on dealer quotes, that Mattel
would pay at maturity for contracts involving the same notional amounts, currencies, and maturity dates, if they
had been entered into as of December 31, 2012. For the sale of foreign currencies, fair value reflects the amount,
based on dealer quotes, that Mattel would receive at maturity for contracts involving the same notional amounts,
currencies, and maturity dates, if they had been entered into as of December 31, 2012. The differences between
the market forward amounts and the contract amounts are expected to be fully offset by currency transaction
gains and losses on the underlying hedged transactions.
In addition to the contracts involving the US dollar detailed in the above table, Mattel also had contracts to
sell British pound sterling for the purchase of Euro. As of December 31, 2012, these contracts had a contract
amount of $27.4 million and a fair value of $(0.2) million.
Had Mattel not entered into hedges to limit the effect of currency exchange rate fluctuations on its results of
operations and cash flows, its income before income taxes would have decreased by approximately $35 million
in 2012, increased by approximately $5 million in 2011, and increased by approximately $4 million in 2010.
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