Mattel 2011 Annual Report Download - page 101
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Please find page 101 of the 2011 Mattel annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.-
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Licensing and similar agreements in effect at December 31, 2011 contain provisions for future minimum
payments as shown in the following table:
Licensing and
Similar
Agreements
(In thousands)
2012 ........................................................................... $ 55,170
2013 ........................................................................... 100,000
2014 ........................................................................... 83,943
2015 ........................................................................... 60,937
2016 ........................................................................... 13,704
Thereafter ...................................................................... 254
$314,008
Royalty expense for 2011, 2010, and 2009 was $262.4 million, $245.9 million, and $188.5 million,
respectively.
The following table shows the future minimum obligations for purchases of inventory, other assets, and
services at December 31, 2011:
Other
Purchase
Obligations
(In thousands)
2012 ........................................................................... $356,117
2013 ........................................................................... 16,766
2014 ........................................................................... 15,480
2015 ........................................................................... 13,983
2016 ........................................................................... 3,336
$405,682
Insurance
Mattel has a wholly owned subsidiary, Far West Insurance Company, Ltd. (“Far West”), that was
established to insure Mattel’s workers’ compensation, general, automobile, product liability, and foreign property
risks. Far West insures the first $1.0 million per occurrence for workers’ compensation risks, the first $0.5
million for general and automobile liability risks, the first $2.0 million per occurrence and $2.0 million per year
for product liability risks, and $0.5 million per occurrence for foreign property risks. Various insurance
companies, that have an “A” or better AM Best rating at the time the policies are purchased, reinsure Mattel’s
risk in excess of the amounts insured by Far West. Mattel’s liability for reported and incurred but not reported
claims at December 31, 2011 and 2010 totaled $16.3 million and $16.9 million, respectively, and is included in
other noncurrent liabilities. Loss reserves are accrued based on Mattel’s estimate of the aggregate liability for
claims incurred.
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