Mattel 2011 Annual Report Download - page 52

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Total 2012 2013 2014 2015 2016 Thereafter
(In millions)
Long-term debt ...................... $1,550.0 $ 50.0 $400.0 $ — $ — $300.0 $ 800.0
Interest on long-term debt .............. 1,109.8 75.5 63.4 50.2 50.2 49.0 821.5
Capital leases* ....................... 2.4 0.3 0.3 0.3 0.3 0.3 0.9
Operating leases ...................... 472.8 86.0 70.9 57.3 48.9 45.9 163.8
Minimum guarantees under licensing and
similar agreements .................. 314.0 55.2 100.0 83.9 60.9 13.7 0.3
Defined benefit and postretirement benefit
plans ............................. 379.3 77.0 29.3 29.9 30.8 32.0 180.3
Purchases of inventory, other assets, and
services .......................... 405.7 356.1 16.8 15.5 14.0 3.3 —
Total ............................... $4,234.0 $700.1 $680.7 $237.1 $205.1 $444.2 $1,966.8
* Represents total obligation, including imputed interest of $0.6 million.
Liabilities for uncertain tax positions for which a cash tax payment is not expected to be made in the next
twelve months are classified as other noncurrent liabilities. Due to the uncertainty about the periods in which
examinations will be completed and limited information related to current audits, Mattel is not able to make
reasonably reliable estimates of the periods in which cash settlements will occur with taxing authorities for the
noncurrent liabilities.
Subsequent Events
On January 31, 2012, Mattel announced that the Board of Directors declared a first quarter dividend of
$0.31 per common share. On February 1, 2012, Mattel completed its acquisition of HIT Entertainment for $680.0
million. See Item 8 “Financial Statements and Supplementary Data—Note 17 to the Consolidated Financial
Statements—Subsequent Events.”
Litigation
The content of Item 8 “Financial Statements and Supplementary Data—Note 13 to the Consolidated
Financial Statements—Commitments and Contingencies—Litigation” is hereby incorporated by reference in this
Item 7.
Effects of Inflation
Inflation rates in the US and in major foreign countries where Mattel does business have not had a
significant impact on its results of operations or financial position during 2011, 2010, or 2009. Mattel receives
some protection from the impact of inflation from high turnover of inventories and its ability, under certain
circumstances and at certain times, to pass on higher prices to its customers.
Employee Savings Plan
Mattel sponsors a 401(k) savings plan, the Mattel, Inc. Personal Investment Plan (the “Plan”), for its
domestic employees. Contributions to the Plan include voluntary contributions by eligible employees and
employer automatic and matching contributions by Mattel. The Plan allows employees to allocate both their
voluntary contributions and their employer automatic and matching contributions to a variety of investment
funds, including a fund that is fully invested in Mattel common stock (the “Mattel Stock Fund”). Employees are
not required to allocate any of their Plan account balance to the Mattel Stock Fund, which allows employees to
limit or eliminate their exposure to market changes in Mattel’s stock price. Furthermore, the Plan limits the
percentage of the employee’s total account balance that may be allocated to the Mattel Stock Fund to 25%.
40