Mattel 2002 Annual Report Download - page 80

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The fair values of cash, cash equivalents, accounts receivable and payable, and short-term borrowings
approximated carrying values because of the short-term nature of these instruments. The estimated fair values of
other financial instruments subject to fair value disclosure, determined based on broker quotes or rates for the
same or similar instruments, and the related carrying amounts are as follows as of year end (in millions):
2002 2001
Book
Value
Fair
Value
Book
Value
Fair
Value
Long-term debt .......................................... $ 822.4 $ 878.8 $1,231.0 $1,206.5
Risk management contracts:
Foreign exchange forwards ............................. 1,113.0 1,147.8 715.2 708.8
$1,935.4 $2,026.6 $1,946.2 $1,915.3
Credit Concentrations
Credit is granted to customers on an unsecured basis. Sales to Mattel’s three largest customers accounted for
50% of consolidated net sales for each of the years ended 2002, 2001 and 2000. Sales to Mattel’s three largest
customers are as follows (in billions):
For the Year Ended
2002 2001 2000
Wal-Mart .................................................................. $1.1 $1.0 $0.9
Toys “R” Us ................................................................ 0.9 0.9 1.0
Target ..................................................................... 0.5 0.4 0.4
Note 9—Commitments and Contingencies
Leases
Mattel routinely enters into noncancelable lease agreements for premises and equipment used in the normal
course of business. The following table shows the future minimum obligations under lease commitments in effect
at December 31, 2002 (in thousands):
Capitalized
Leases
Operating
Leases
2003 .................................................................. $ 300 $ 46,000
2004 .................................................................. 300 46,000
2005 .................................................................. 300 41,000
2006 .................................................................. 300 35,000
2007 .................................................................. 300 30,000
Thereafter .............................................................. 8,300 154,000
$9,800 (a) $352,000
(a) Includes $7.6 million of imputed interest.
Rental expense under operating leases amounted to $65.1 million, $60.9 million and $60.8 million for 2002,
2001 and 2000, respectively, net of sublease income of $0.8 million, $0.9 million and $0.7 million in 2002, 2001
and 2000, respectively.
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