Mattel 2007 Annual Report Download - page 54

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A summary of Mattel’s capitalization is as follows:
December 31,
2007 2006
(In millions, except percentage
information)
Medium-term notes ............................................... $ 250.0 8% $ 300.0 9%
Senior Notes .................................................... 300.0 9 300.0 9
MAPS term loan ................................................. — — 35.7 1
Total noncurrent long-term debt ..................................... 550.0 17 635.7 19
Other noncurrent liabilities ......................................... 378.3 12 304.7 9
Stockholders’ equity .............................................. 2,306.7 71 2,433.0 72
$3,235.0 100% $3,373.4 100%
Total noncurrent long-term debt decreased $85.7 million at December 31, 2007 as compared to December 31,
2006, due to the $50.0 million repayment of the MAPS term loan facility in January 2007, of which $35.7 million was
classified as noncurrent at December 31, 2006, and the reclassification of $50.0 million of Medium-term notes to
current portion of long-term debt. Mattel expects to satisfy its future long-term capital needs through the generation of
earnings and issuance of long-term debt instruments. Stockholders’ equity of $2.3 billion at December 31, 2007
decreased by $126.2 million from December 31, 2006, primarily as a result of share repurchases and payment of the
annual dividend on common stock in the fourth quarter of 2007, partially offset by net income and proceeds from the
exercise of stock options.
Mattel’s debt-to-capital ratio, including short-term borrowings and the current portion of long-term debt,
increased to 29.1% at December 31, 2007 from 22.3% at December 31, 2006, primarily due to higher short-term
borrowings of $349.0 million, share repurchases, and the annual dividend payment, partially offset by net income,
proceeds from the exercise of stock options, $50.0 million repayment of the MAPS term loan facility, and
$50.0 million of Medium-term notes repayments. Mattel’s objective is to maintain a year-end debt-to-capital ratio of
approximately 25%.
Off-Balance Sheet Arrangements
Mattel has no off-balance sheet arrangements that have or are reasonably likely to have a current or future effect
on its financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital
resources that is material to stockholders.
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