Mattel 2011 Annual Report Download - page 50

Financing Activities
Cash flows used for financing activities were $397.3 million during 2011, as compared to $224.8 million
during 2010 and $376.1 million during 2009. The increase in cash flows used for financing activities in 2011
from 2010 was primarily due to repayments of long-term debt consistent with scheduled maturities, higher share
repurchases, and higher dividend payments, partially offset by higher net proceeds from the issuance of senior
notes and higher proceeds from the exercise of stock options. The decrease in cash flows used for financing
activities in 2010 from 2009 primarily reflects net proceeds from the $500.0 million issuance of senior notes in
September 2010 and higher proceeds from the exercise of stock options, partially offset by higher share
repurchases.
During both 2011 and 2010, the Board of Directors authorized Mattel to increase its share repurchase
program by $500.0 million. During 2011, Mattel repurchased 20.4 million shares of its common stock at a cost of
$536.3 million, of which $12.3 million was unsettled at December 31, 2011. During 2010, Mattel repurchased
18.6 million shares of its common stock at a cost of $446.7 million. During 2009, Mattel did not repurchase any
shares of its common stock. At December 31, 2011, share repurchase authorizations of $427.3 million had not
been executed. Repurchases will take place from time to time, depending on market conditions. Mattel’s share
repurchase program has no expiration date.
In 2011, 2010, and 2009, Mattel paid total dividends per share of $0.92, $0.83, and $0.75, respectively, to
holders of its common stock, respectively. During 2011, the Board of Directors declared the dividends on a
quarterly basis, and Mattel paid the dividends during the quarter in which the dividends were declared. During
2010 and 2009, the Board of Directors declared the dividends in November of the respective years, and Mattel
paid the dividends in December of the respective years. Dividend payments were $316.5 million, $291.3 million,
and $271.4 million in 2011, 2010, and 2009, respectively.
Seasonal Financing
See Item 8 “Financial Statements and Supplementary Data—Note 7 to the Consolidated Financial
Statements—Seasonal Financing and Debt.”
Financial Position
Mattel’s cash and equivalents were $1.37 billion at December 31, 2011, an increase of $88.0 million from
2010. The increase was primarily driven by cash flows from operations, net proceeds from the $600.0 million
issuance of senior notes in November 2011, and proceeds from the exercise of stock options. The increase was
partially offset by $524.0 million of share repurchases, $316.5 million of dividend payments, $250.0 million of
scheduled long-term debt repayments, and $190.9 million of purchases of tools, dies, and molds, and other
property, plant, and equipment.
Accounts receivable increased $100.6 million from December 31, 2010 to $1.25 billion at December 31,
2011, primarily due to higher net sales and a shift in sales mix to countries with longer sales terms.
Inventories increased $23.2 million from December 31, 2010 to $487.0 million at December 31, 2011,
driven primarily by higher raw materials and higher product costs.
Accounts payable and accrued liabilities decreased $94.7 million from December 31, 2010 to $953.8 million
at December 31, 2011, driven primarily by the timing and amount of payments to vendors and various accrued
liabilities, including incentive compensation, royalties, and taxes other than income taxes.
As of December 31, 2011, Mattel had foreign short-term bank loans outstanding of $8.0 million. As of
December 31, 2010, Mattel had no foreign short-term bank loans outstanding. The current portion of long-term
debt decreased $200.0 million from December 31, 2010 to $50.0 million at December 31, 2011, due to scheduled
repayments of $200.0 million of 2006 Senior Notes and $50.0 million of Medium-term notes during 2011,
partially offset by the reclassification of $50.0 million of Medium-term notes to current.
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