Mattel 2014 Annual Report Download - page 49

Download and view the complete annual report

Please find page 49 of the 2014 Mattel annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 134

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134

Noncurrent long-term debt increased $500.0 million from December 31, 2013 to $2.10 billion at
December 31, 2014, due to the issuance of $500.0 million of 2014 Senior Notes.
Stockholders’ equity decreased $302.5 million from December 31, 2013 to $2.95 billion at December 31,
2014, primarily due to dividend payments, currency translation adjustments, and share repurchases, partially
offset by net income.
Mattel’s debt-to-total capital ratio, including short-term borrowings and the current portion of long-term
debt, increased from 33.0% at December 31, 2013 to 41.6% at December 31, 2014 as a result of higher
borrowings and lower stockholders’ equity.
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.
Commitments
In the normal course of business, Mattel enters into debt agreements and contractual arrangements to obtain
and protect Mattel’s right to create and market certain products and for future purchases of goods and services to
ensure availability and timely delivery. These arrangements include commitments for future inventory and
service purchases and royalty payments pursuant to licensing agreements. Certain of these commitments
routinely contain provisions for guarantees or minimum expenditures during the terms of the contracts. Mattel
also has defined benefit and postretirement benefit plans, which require future cash contributions and benefit
payments. Additionally, Mattel routinely enters into noncancelable lease agreements for premises and equipment
used, which contain minimum rental payments.
The following table summarizes Mattel’s contractual commitments and obligations:
Total 2015 2016 2017 2018 2019 Thereafter
(In millions)
Long-term debt ............. $ 2,100.0 $ — $ 300.0 $ — $ 250.0 $ 500.0 $1,050.0
Interest on long-term debt ..... 1,043.5 74.1 72.9 66.6 63.2 54.7 712.0
Capital leases* .............. 1.5 0.3 0.3 0.3 0.3 0.3 —
Operating leases ............. 519.5 113.8 93.9 73.3 54.5 40.2 143.8
Minimum guarantees under
licensing and similar
agreements ............... 284.6 62.9 108.9 66.1 29.1 17.5 0.1
Defined benefit and
postretirement benefit
plans .................... 415.4 34.7 43.7 45.2 46.5 44.3 201.0
Purchases of inventory, services,
and other ................ 387.4 363.0 21.1 2.6 0.7 — —
Total ...................... $ 4,751.9 $ 648.8 $ 640.8 $ 254.1 $ 444.3 $ 657.0 $2,106.9
*Represents total obligation, including imputed interest of $0.3 million.
Liabilities for uncertain tax positions for which a cash tax payment is not expected to be made in the next
twelve months are classified as other noncurrent liabilities. Due to the uncertainty about the periods in which
examinations will be completed and limited information related to current audits, Mattel is not able to make
reasonably reliable estimates of the periods in which cash settlements will occur with taxing authorities for the
noncurrent liabilities.
43