Mattel 2009 Annual Report Download - page 90

Sales of receivables pursuant to the domestic receivables sales facility occur periodically, generally
quarterly. The receivables are sold by Mattel Sales Corp., Fisher-Price, Inc., and Mattel Direct Import, Inc. to
Mattel Factoring, who then sells such receivables to the bank group at a slight discount, and Mattel acts as a
servicer for such receivables. Mattel has designated Mattel Sales Corp. and Fisher-Price, Inc. as sub-servicers, as
permitted by the facility. Mattel’s appointment as a servicer is subject to termination events that are customary
for such transactions. The domestic receivables sales facility is also subject to conditions to funding,
representations and warranties, undertakings and early termination events that are customary for transactions of
this nature. Mattel retains a servicing interest in the receivables sold under this facility. The fair value of the net
servicing asset is based on an estimate of interest Mattel earns on cash collections prior to remitting the funds to
the bank group, partially offset by an estimate of the cost of servicing the trade receivables sold. The fair value of
the net servicing asset totaled $0.1 million and $0.2 million as of December 31, 2009 and 2008, respectively.
Mattel’s aggregate losses on receivables sold under the domestic and other trade receivables facilities were
$7.4 million, $5.4 million, and $9.3 million during 2009, 2008, and 2007, respectively.
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:
December 31,
2009 2008
(In thousands)
Receivables sold pursuant to the:
Domestic receivables facility ............................................ $299,688 $217,755
Other factoring arrangements ............................................ 33,393 35,581
$333,081 $253,336
Short-Term Borrowings
As of December 31, 2009 and 2008, Mattel had foreign short-term bank loans outstanding of $2.0 million
and $0, respectively. As of December 31, 2009 and 2008, Mattel had no borrowings outstanding under the
domestic unsecured committed credit facilities.
During 2009 and 2008, Mattel had average borrowings of $6.9 million and $9.1 million, respectively, under
its foreign short-term bank loans, and $323.7 million and $559.7 million, respectively, under its domestic
unsecured committed credit facilities and other short-term borrowings, to help finance its seasonal working
capital requirements. The weighted average interest rate during 2009 and 2008 was 12.4% and 15.3%,
respectively, on foreign short-term bank loans and 2.3% and 3.6%, respectively, on domestic unsecured
committed credit facilities and other short-term borrowings.
Long-Term Debt
Mattel’s long-term debt consists of the following:
December 31,
2009 2008
(In thousands)
Medium-term notes due May 2010 to November 2013 ............................ $200,000 $ 250,000
2006 Senior Notes due June 2011 ............................................ 200,000 300,000
2008 Senior Notes due March 2013 ........................................... 350,000 350,000
750,000 900,000
Less: current portion .................................................. (50,000) (150,000)
Total long-term debt ...................................................... $700,000 $ 750,000
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