Mattel 2014 Annual Report Download - page 100

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The net (losses) gains of $(0.9) million, $(4.9) million, and $29.9 million reclassified from accumulated
other comprehensive loss to the consolidated statements of operations during 2014, 2013, and 2012, respectively,
are offset by the changes in cash flows associated with the underlying hedged transactions.
Derivatives Not Designated As
Hedging Instruments
Statements of Operations
Classification
For the Year
2014
For the Year
2013
For the Year
2012
(In thousands)
Amount of gain (loss) recognized in
the statements of operations:
Foreign currency forward exchange
contracts ..................... $(31,485) $ 17,975 $ 6,317 Non-operating income/expense
Foreign currency forward exchange
contracts ..................... 732 (4,455) (910) Cost of sales
Total .......................... $(30,753) $ 13,520 $ 5,407
The net (losses) gains of $(30.8) million, $13.5 million, and $5.4 million recognized in the consolidated
statements of operations during 2014, 2013, and 2012, 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, 2014 and 2013 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, 2014
Level 1 Level 2 Level 3 Total
(In thousands)
Assets:
Foreign currency forward exchange contracts (a) .............. $ — $33,743 $ — $33,743
Auction rate security (b) ................................. — — 30,960 30,960
Total assets ........................................... $ — $33,743 $30,960 $64,703
Liabilities:
Foreign currency forward exchange contracts (a) .............. $ — $13,398 $ — $13,398
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