Mattel 2014 Annual Report Download - page 48

million. At December 31, 2014, share repurchase authorizations of $203.0 million had not been executed.
Repurchases under the program will take place from time to time, depending on market conditions. Mattel’s
share repurchase program has no expiration date.
During 2014, 2013, and 2012, Mattel paid total dividends per share of $1.52, $1.44, and $1.24, respectively,
to holders of its common stock. The Board of Directors declared the dividends on a quarterly basis, and Mattel
paid the dividends during the quarters in which the dividends were declared. The payment of dividends on
common stock is at the discretion of the Board of Directors and is subject to customary limitations. Dividend
payments were $514.8 million, $494.4 million, and $423.4 million in 2014, 2013, and 2012, respectively.
Seasonal Financing
See Item 8 “Financial Statements and Supplementary Data—Note 5 to the Consolidated Financial
Statements—Seasonal Financing and Debt.”
Financial Position
Mattel’s cash and equivalents decreased $67.6 million to $971.7 million at December 31, 2014, as compared
to $1.04 billion at December 31, 2013. The decrease was primarily due to dividend payments, the acquisition of
MEGA Brands, purchases of tools, dies, and molds and other property, plant, and equipment, and share
repurchases, partially offset by cash flow from operating activities and net proceeds from the issuance of $500.0
million of 2.35% senior unsecured notes due May 6, 2019 (the “2014 Senior Notes”).
Accounts receivable decreased $166.9 million to $1.09 billion at December 31, 2014, as compared to $1.26
billion at December 31, 2013. Inventory decreased $6.8 million to $562.0 million at December 31, 2014, as
compared to $568.8 million at December 31, 2013. The decrease in accounts receivable was primarily due to
lower sales volume and the timing of cash collections. The decrease in inventory was primarily due to efforts to
tightly manage inventory as a result of sales volume declines and lower advanced purchases of raw materials.
The change in accounts receivable and inventory from December 31, 2013 includes an increase of $84.5 million
and $32.7 million, respectively, related to the MEGA Brands acquisition.
Accounts payable and accrued liabilities increased $54.7 million to $1.07 billion at December 31, 2014, as
compared to $1.02 billion at December 31, 2013. The increase was primarily due to the timing and amount of
payments for various liabilities, including royalties and advertising and promotion, partially offset by lower
incentive compensation accruals. The change in accounts payable and accrued liabilities from December 31,
2013 includes an increase of $45.3 million related to the MEGA Brands acquisition.
As of December 31, 2014, Mattel had no foreign short-term bank loans outstanding, which is a decrease of
$4.3 million from December 31, 2013.
A summary of Mattel’s capitalization is as follows:
December 31,
2014 2013
(In millions, except percentage
information)
2010 Senior Notes ................................................ $ 500.0 9% $ 500.0 9%
2011 Senior Notes ................................................ 600.0 11 600.0 12
2013 Senior Notes ................................................ 500.0 9 500.0 9
2014 Senior Notes ................................................ 500.0 9 — —
Total noncurrent long-term debt ..................................... 2,100.0 38 1,600.0 30
Other noncurrent liabilities ......................................... 584.0 10 540.6 10
Stockholders’ equity .............................................. 2,949.1 52 3,251.6 60
$5,633.1 100% $5,392.2 100%
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