Mattel 2001 Annual Report Download - page 36

Mattel’s accounts receivable sold or anticipated, and therefore excluded from its consolidated balance
sheets, is summarized as follows (in millions):
As of Year End
2001 2000
Domestic factoring and anticipation .......................................... $261.5 $347.5
Foreign factoring ........................................................ 237.2 196.9
Total factoring and anticipation .............................................. $498.7 $544.4
Financial Position
Mattel’s cash and short-term investments increased by $384.2 million to $616.6 million at year end 2001
compared to $232.4 million at year end 2000. The increase was primarily due to cash flows generated from
operating activities. Accounts receivable, net decreased by $143.0 million to $696.6 million at year end 2001,
reflecting improved cash collections and the bad debt write-off resulting from the bankruptcy of Kmart.
Inventories decreased slightly to $487.5 million at year end 2001. Inventory levels were negatively impacted by
lower than expected domestic fourth quarter sales and the pre-build initiative to prepare for the closing of the
Murray, Kentucky plant in 2002 in connection with the North American Strategy. During 2002, Mattel plans to
continue to build inventory levels for preschool products in conjunction with executing the North American
Strategy. Mattel intends to continue its plan to move towards more optimal accounts receivable and inventory
levels through its focus on improving its supply chain performance. Prepaid expenses and other current assets
increased by $102.1 million to $291.9 million at year end 2001 compared to 2000, primarily due to increased
prepaid income taxes and receivable collections deposits with banks. Property, plant and equipment, net decreased
$21.1 million to $626.7 million at year end 2001, largely due to depreciation, partially offset by capital spending.
Intangibles decreased $26.9 million to $1.1 billion at year end 2001, mainly due to goodwill amortization,
partially offset by the acquisition of Pictionaryin June 2001. Other noncurrent assets declined by $54.3 million
to $711.3 million at year end 2001, principally due to decreased noncurrent deferred tax assets.
Short-term borrowings decreased $188.3 million to $38.1 million at year end 2001 compared to $226.4
million at year end 2000, due to the repayment of debt. Current portion of long-term debt increased by $177.4
million to $210.1 million at year end 2001, largely due to the reclassification of 200 million of Euro Notes
from long-term debt since they mature in July 2002.
A summary of Mattel’s capitalization is as follows (in millions):
As of Year End
2001 2000
Medium-term notes ........................................... $ 480.0 17% $ 510.0 18%
Senior notes ................................................ 500.0 17 690.7 25
Other long-term debt obligations ................................. 40.9 1 41.7 1
Total long-term debt .......................................... 1,020.9 35 1,242.4 44
Other long-term liabilities ...................................... 184.2 6 165.5 6
Stockholders’ equity .......................................... 1,738.5 59 1,403.1 50
$2,943.6 100% $2,811.0 100%
Total long-term debt decreased by $221.5 million at year end 2001 compared to year end 2000 due to the
aforementioned reclassification of 200 million of Euro Notes and $30.0 million of medium-term notes maturing
in the next twelve months to current portion of long-term debt. Mattel expects to satisfy its future long-term
capital needs through the retention of corporate earnings and the issuance of long-term debt instruments.
Stockholders’ equity of $1.7 billion at year end 2001 increased $335.4 million from year end 2000, primarily as
a result of income from continuing operations and cash received from exercise of employee stock options,
partially offset by payment of common dividends and the unfavorable effect of foreign currency translation.
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