Mattel 2010 Annual Report Download - page 94

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The following tables present the location and amount of gains and losses, net of taxes, from derivatives
reported in the consolidated statements of operations:
For the Year Ended
December 31, 2010
For the Year Ended
December 31, 2009
Statements of
Operations
Classification
Amount of Gain
(Loss) Recognized
in OCI
Amount of
Gain (Loss)
Reclassified from
Accumulated OCI
to Statements of
Operations
Amount of Gain
(Loss) Recognized
in OCI
Amount of
Gain (Loss)
Reclassified from
Accumulated OCI
to Statements of
Operations
(In thousands)
Derivatives designated
as hedging
instruments:
Foreign currency
forward exchange
contracts .......... $8,725 $(3,024) $(29,253) $(8,247) Cost of sales
Interest rate swaps .... — — (349) (1,550) Interest expense
Total ............... $8,725 $(3,024) $(29,602) $(9,797)
The net losses of $3.0 million and $9.8 million reclassified from accumulated OCI to the consolidated
statements of operations during 2010 and 2009, respectively, are offset by the changes in cash flows associated
with the underlying hedged transactions.
Amount of Gain
(Loss) Recognized in the
Statements of Operations
Statements of Operations
Classification
For the Year Ended
December 31,
2010
For the Year Ended
December 31,
2009
(In thousands)
Derivatives not designated as hedging
instruments:
Foreign currency forward exchange
contracts ......................... $(3,797) $16,633 Non-operating income/expense
Foreign currency forward exchange
contracts ......................... 3,052 4,160 Cost of sales
Total .............................. $ (745) $20,793
The net loss of $0.7 million recognized in the consolidated statements of operations during 2010 is offset by
foreign currency transaction gains on the related hedged balances. The net gain of $20.8 million recognized in the
consolidated statements of operations during 2009 is offset by foreign currency transaction losses on the related
hedged balances.
Note 12—Fair Value Measurements
The following table presents information about Mattel’s assets and liabilities measured and reported in the
financial statements at fair value on a recurring basis as of December 31, 2010 and indicates the fair value
hierarchy of the valuation techniques utilized to determine such fair value. The three levels of the fair value
hierarchy are as follows:
• Level 1 – Valuations based on unadjusted quoted prices in active markets for identical assets or
liabilities that the entity has the ability to access.
86