Mattel 2012 Annual Report Download - page 50

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Operating Activities
Cash flows from operating activities were $1.28 billion during 2012, as compared to $664.7 million during
2011 and $528.0 million during 2010. The increase in cash flows from operating activities in 2012 from 2011
was primarily due to reductions in working capital. The increase in cash flows from operating activities in 2011
from 2010 was primarily due to the decision not to factor $300.0 million of domestic receivables in 2010 and
higher net income in 2011, partially offset by higher working capital usage.
Investing Activities
Cash flows used for investing activities were $900.2 million during 2012, as compared to $174.5 million
during 2011 and $146.7 million during 2010. The increase in cash flows used for investing activities in 2012
from 2011 was primarily due to the acquisition of HIT Entertainment and higher purchases of other property,
plant, and equipment. The increase in cash flows used for investing activities in 2011 from 2010 was primarily
due to higher purchases of tools, dies, molds and other property, plant, and equipment, partially offset by higher
net proceeds from settled foreign currency forward exchange contracts.
Financing Activities
Cash flows used for financing activities were $410.9 million during 2012, as compared to $397.3 million
during 2011 and $224.8 million during 2010. The increase in cash flows used for financing activities in 2012
from 2011 was primarily due to lower net proceeds from long-term borrowings and higher dividend payments,
partially offset by lower share repurchases and lower repayments of long-term borrowings. The increase in cash
flows used for financing activities in 2011 from 2010 was primarily due to repayments of long-term borrowings,
higher share repurchases, and higher dividend payments, partially offset by higher net proceeds from long-term
borrowings and higher proceeds from the exercise of stock options.
During 2012, Mattel repurchased 2.3 million shares of its common stock at a cost of $77.9 million, of which
$23.5 million was unsettled at December 31, 2012. 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 2011 and
2010, the Board of Directors authorized Mattel to increase its share repurchase program by $500.0 million. At
December 31, 2012, share repurchase authorizations of $349.4 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.
During 2012, 2011, and 2010, Mattel paid total dividends per share of $1.24, $0.92, and $0.83, respectively,
to holders of its common stock. During 2012 and 2011, the Board of Directors declared the dividends on a
quarterly basis, and Mattel paid the dividends during the quarters in which the dividends were declared. During
2010, the Board of Directors declared an annual dividend in November, and Mattel paid the dividend in
December. Dividend payments were $423.4 million, $316.5 million, and $291.3 million in 2012, 2011, and 2010,
respectively.
Seasonal Financing
See Item 8 “Financial Statements and Supplementary Data—Note 5 to the Consolidated Financial
Statements—Seasonal Financing and Debt.”
Financial Position
Mattel’s cash and equivalents were $1.34 billion at December 31, 2012, a decrease of $33.4 million from
2011. The decrease was primarily driven by the acquisition of HIT Entertainment, dividend payments, purchases
of other property, plant, and equipment, purchases of tools, dies, and molds, share repurchases, and payment of
long-term debt, partially offset by cash flow from operating activities.
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