Mattel 2013 Annual Report Download - page 49

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Financial Position
Mattel’s cash and equivalents were $1.04 billion at December 31, 2013, a decrease of $296.5 million from
December 31, 2012. The decrease was primarily due to dividend payments, share repurchases, repayment of
long-term borrowings, and purchases of tools, dies, and molds, and other property, plant, and equipment,
partially offset by cash flow from operating activities, net proceeds from the issuance of long term borrowings,
and proceeds from the exercise of stock options.
Accounts receivable increased $33.3 million from December 31, 2012 to $1.26 billion at December 31,
2013, primarily due to the timing of cash collections.
Inventories increased $103.8 million from December 31, 2012 to $568.8 million at December 31, 2013,
primarily due to lower sales volume in the fourth quarter of 2013.
Accounts payable and accrued liabilities decreased $257.6 million from December 31, 2012 to $1.02 billion
at December 31, 2013, primarily due to the payment of a litigation accrual of approximately $138 million, lower
incentive compensation, and the timing of payables.
As of December 31, 2013, Mattel had foreign short-term bank loans outstanding of $4.3 million, a decrease
of $5.6 million from December 31, 2012. The current portion of long-term debt decreased from $400.0 million at
December 31, 2012 to $0 at December 31, 2013 due to the repayments of $350.0 million of 2008 Senior Notes
and $50.0 million of Medium-term notes in connection with their scheduled maturities.
A summary of Mattel’s capitalization is as follows:
December 31,
2013 2012
(In millions, except percentage
information)
2010 Senior Notes ................................................ $ 500.0 9% $ 500.0 10%
2011 Senior Notes ................................................ 600.0 12 600.0 13
2013 Senior Notes ................................................ 500.0 9 — —
Total noncurrent long-term debt ..................................... 1,600.0 30 1,100.0 23
Other noncurrent liabilities ......................................... 540.6 10 643.7 13
Stockholders’ equity .............................................. 3,251.6 60 3,067.0 64
$5,392.2 100% $4,810.7 100%
Noncurrent long-term debt increased $500.0 million from December 31, 2012 to $1.60 billion at
December 31, 2013, due to the issuance of $500.0 million of 2013 Senior Notes.
Stockholders’ equity increased $184.5 million from December 31, 2012 to $3.25 billion at December 31,
2013, primarily due to net income and the issuance of treasury stock for the exercise of stock options, partially
offset by dividend payments and share repurchases.
Mattel’s debt-to-capital ratio, including short-term borrowings and the current portion of long-term debt,
was 33.0% at both December 31, 2013 and December 31, 2012. Mattel’s objective is to maintain a year-end debt-
to-capital ratio of about 35%.
Off-Balance Sheet Arrangements
Mattel has no off-balance sheet arrangements that have or are reasonably likely to have a current or future
material effect on its financial condition, revenues or expenses, results of operations, liquidity, capital
expenditures, or capital resources.
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