Mattel 2009 Annual Report Download - page 48

Accounts receivable decreased $124.2 million from December 31, 2008 to $749.3 million at December 31,
2009, reflecting higher factored receivables and improved days of sales outstanding.
Inventories decreased $130.3 million from December 31, 2008 to $355.7 million at December 31, 2009,
primarily driven by tight inventory management within the current economic environment and lower costs of
producing inventory in 2009.
Accounts payable and accrued liabilities decreased $102.6 million from December 31, 2008 to $968.6
million at December 31, 2009, primarily due to the timing and amount of payments of accounts payable and
various accrued liability balances, including receivable collections due bank related to the domestic receivable
facility, freight, and royalty obligations, partially offset by an increase in accrued incentive compensation.
At December 31, 2009 and 2008, Mattel’s total short-term borrowings totaled $2.0 million and $0,
respectively. The current portion of long-term debt decreased $100.0 million to $50.0 million at December 31,
2009 as compared to December 31, 2008 due to the repayments of $100.0 million of the 2006 Senior Notes and
$50.0 million of Medium-term notes, partially offset by the reclassification of $50 million of Medium-term notes
to current.
A summary of Mattel’s capitalization is as follows:
December 31,
2009 2008
(In millions, except percentage
information)
Medium-term notes .............................................. $ 150.0 4% $ 200.0 6%
2006 Senior Notes ............................................... 200.0 5 200.0 6
2008 Senior Notes ............................................... 350.0 10 350.0 10
Total noncurrent long-term debt .................................... 700.0 19 750.0 22
Other noncurrent liabilities ........................................ 488.7 13 547.9 16
Stockholders’ equity ............................................. 2,531.0 68 2,117.1 62
$3,719.7 100% $3,415.0 100%
Total noncurrent long-term debt decreased $50.0 million at December 31, 2009 as compared to
December 31, 2008, due to the reclassification of $50.0 million of Medium-term notes to current. Mattel expects
to satisfy its future long-term capital needs through the generation of corporate earnings and issuance of long-
term debt instruments, as needed. Other noncurrent liabilities decreased $59.2 million at December 31, 2009, as
compared to December 31, 2008, due primarily to decreases in long-term defined benefit pension plan
obligations and income taxes payable. Stockholders’ equity of $2.53 billion at December 31, 2009 increased by
$413.9 million from December 31, 2008, primarily as a result of net income and favorable currency translation
adjustments, partially offset by payment of the annual dividend on common stock in the fourth quarter of 2009.
Mattel’s debt-to-capital ratio, including short-term borrowings and the current portion of long-term debt,
decreased to 22.9% at December 31, 2009 from 29.8% at December 31, 2008, due to the aforementioned increase
in stockholders’ equity and decrease in debt. 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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