Mattel 2005 Annual Report Download - page 82

The outstanding amounts of accounts receivable that have been sold under these facilities and other
factoring arrangements, net of collections from customers, have been excluded from Mattel’s consolidated
balance sheets and are summarized as follows (in thousands):
December 31,
2005 2004
Receivables sold pursuant to the:
Domestic receivables facility .......................................... $ 251,372 $ 253,378
European receivables facility .......................................... 95,946 93,766
Other factoring arrangements .............................................. 95,763 99,117
$ 443,081 $ 446,261
Short-Term Borrowings
As of December 31, 2005 and 2004, Mattel had foreign short-term bank loans outstanding totaling
$18.0 million and $29.0 million, respectively. The weighted average interest rate on these borrowings as of
December 31, 2005 and 2004 was 6.5% and 10.5%, respectively. As of December 31, 2005 and 2004, Mattel had
short-term revolving loans outstanding of $100.0 million and $0, respectively, under the MAPS revolving loan
facility, at a rate of 4.9% for 2005.
During 2005 and 2004, Mattel had average borrowings of $640.0 million and $824.8 million, respectively,
under its domestic unsecured committed credit facilities, $2.7 million and $0, respectively, under the MAPS
revolving loan facility, and $32.9 million and $29.1 million, respectively, under its foreign credit lines and other
short-term borrowings to help finance its seasonal working capital requirements. The weighted average interest
rate on domestic borrowings was 3.1% and 1.5% during 2005 and 2004, respectively, 4.9% on the MAPS
revolving loan facility during 2005, and 10.8% and 9.4% during 2005 and 2004, respectively, on the foreign
credit lines and short-term borrowings.
Long-Term Debt
Mattel’s long-term debt consists of the following (in thousands):
December 31,
2005 2004
6
1
⁄ 8 % senior notes due July 2005 ............................................ $ — $150,000
Medium-term notes due May 2006 to November 2013 ........................... 400,000 400,000
MAPS term loan facility due December 2006 to December 2008 ................... 225,000 —
10.15% mortgage note due November 2005 ................................... — 39,130
625,000 589,130
Less: current portion .................................................. (100,000) (189,130)
Total long-term debt ...................................................... $525,000 $ 400,000
Mattel’s medium-term notes bear interest at fixed rates ranging from 6.50% to 7.49%, with a weighted
average interest rate of 7.08% as of December 31, 2005 and 2004, respectively. During 2004, Mattel repaid
$50.0 million of medium-term notes upon maturity.
During 2005, Mattel repaid $150.0 million of 6
1
⁄ 8 % senior notes and the 10.15% mortgage note for
$39.1 million upon maturity.
The MAPS term loan facility bears interest at various rates as selected by Mattel, based on Eurodollar rates
or bank reference rates, with a weighted average interest rate of 5.2% during 2005.
73