Mattel 2012 Annual Report Download - page 97

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The net gain of $29.9 million and net loss of $9.8 million reclassified from accumulated other
comprehensive loss to the consolidated statements of operations during 2012 and 2011, respectively, are offset
by the changes in cash flows associated with the underlying hedged transactions.
Amount of Gain
(Loss) Recognized in the
Statements of Operations
Statements of Operations
Classification
For the Year Ended
December 31,
2012
For the Year Ended
December 31,
2011
(In thousands)
Derivatives not designated as hedging
instruments:
Foreign currency forward exchange
contracts ....................... $ 6,317 $ 3,955 Non-operating income/expense
Foreign currency forward exchange
contracts ....................... (910) 747 Cost of sales
Total ........................... $ 5,407 $ 4,702
The net gains of $5.4 million and $4.7 million recognized in the consolidated statements of operations
during 2012 and 2011, respectively, are offset by foreign currency transaction gains and losses on the related
hedged balances.
Note 10—Fair Value Measurements
The following table presents information about Mattel’s assets and liabilities measured and reported in the
financial statements at fair value on a recurring basis as of December 31, 2012 and 2011 and indicates the fair
value hierarchy of the valuation techniques utilized to determine such fair value. The three levels of the fair value
hierarchy are as follows:
• Level 1 – Valuations based on unadjusted quoted prices in active markets for identical assets or
liabilities that the entity has the ability to access.
• Level 2 – Valuations based on quoted prices for similar assets or liabilities, quoted prices in markets
that are not active, or other inputs that are observable or can be corroborated by observable data for
substantially the full term of the assets or liabilities.
• Level 3 – Valuations based on inputs that are unobservable, supported by little or no market activity
and that are significant to the fair value of the assets or liabilities.
Mattel’s financial assets and liabilities include the following:
December 31, 2012
Level 1 Level 2 Level 3 Total
(In thousands)
Assets:
Foreign currency forward exchange contracts (a) ............... $ — $ 3,068 $ — $ 3,068
Auction rate securities (b) ................................. — — 19,256 19,256
Total assets ............................................ $ — $ 3,068 $19,256 $22,324
Liabilities:
Foreign currency forward exchange contracts (a) ............... $ — $8,757 $ — $ 8,757
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