Mattel 2001 Annual Report Download - page 61

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Mattel also has a $200.0 million senior unsecured term loan that matures in July 2003. Interest is charged at
various rates, ranging from a LIBOR-based rate to the bank reference rate (3.66% as of December 31, 2001). The
unsecured credit facilities and term loan require Mattel to meet financial covenants for consolidated debt-to-capital
and interest coverage. Mattel was in compliance with such covenants during 2001. In addition, Mattel avails itself
of uncommitted domestic facilities provided by certain banks to issue short-term money market loans.
To meet seasonal borrowing requirements of certain foreign subsidiaries, Mattel negotiates individual
financing arrangements, generally with the same group of banks that provided credit in the prior year. Foreign
credit lines total approximately $368 million, a portion of which is used to support letters of credit. Mattel expects
to extend these credit lines throughout 2002 and believes available amounts will be adequate to meet its seasonal
financing requirements. Mattel also enters into agreements with banks of its foreign subsidiaries for non-recourse
sales of certain of its foreign subsidiary receivables. In fourth quarter 2001, Mattel entered into a securitization
agreement to sell certain receivables of its French and German subsidiaries with one of its European banks.
Information relating to Mattel’s unsecured committed credit facilities, foreign credit lines and other short-
term borrowings is summarized as follows (in thousands):
For the Year
2001 2000 1999
Balance at end of year
Domestic ........................................... $ — $ 178,017 $ 293,744
Foreign ............................................ 38,108 48,386 75,805
Maximum amount outstanding
Domestic .............................................. $1,028,090 $1,320,000 $1,207,000
Foreign ............................................... 64,158 85,905 117,000
Average borrowing
Domestic .............................................. $ 694,900 $ 835,200 $ 573,100
Foreign ............................................... 43,168 79,561 40,000
Weighted average interest rate on average borrowing
Domestic (computed daily) ................................. 4.6% 6.7% 5.5%
Foreign (computed monthly) ............................... 17.5% 15.7% 33.0%
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
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