Mattel 2011 Annual Report Download - page 97

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The following tables present the location and amount of gains and losses, net of tax, from derivatives
reported in the consolidated statements of operations:
For the Year Ended
December 31, 2011
For the Year Ended
December 31, 2010
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 .......... $17,900 $(9,843) $8,725 $(3,024) Cost of sales
The net losses of $9.8 million and $3.0 million reclassified from accumulated OCI to the consolidated
statements of operations during 2011 and 2010, 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,
2011
For the Year Ended
December 31,
2010
(In thousands)
Derivatives not designated as hedging
instruments:
Foreign currency forward exchange
contracts ......................... $3,955 $(3,797) Non-operating income/expense
Foreign currency forward exchange
contracts ......................... 747 3,052 Cost of sales
Total .............................. $4,702 $ (745)
The net gain of $4.7 million and net loss of $0.7 million recognized in the consolidated statements of
operations during 2011 and 2010, respectively, is offset by foreign currency transaction gains/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, 2011 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.
• Level 2 – Valuations based on quoted prices for similar assets or liabilities, quoted prices in markets
that are not active, or other inputs that are observable or can be corroborated by observable data for
substantially the full term of the assets or liabilities.
• Level 3 – Valuations based on inputs that are unobservable, supported by little or no market activity
and that are significant to the fair value of the assets or liabilities.
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