MAT » Topics » Note 9-Financial Instruments

These excerpts taken from the MAT 10-K filed Feb 24, 2010.

Financial Instruments

 

Currency exchange rate fluctuations may impact Mattel’s results of operations and cash flows. Mattel seeks to mitigate its exposure to market risk by monitoring its foreign currency transaction exposure for the year and partially hedging such exposure using foreign currency forward exchange contracts primarily to hedge its purchase and sale of inventory, and other intercompany transactions denominated in foreign currencies. These contracts generally have maturity dates of up to 18 months. In addition, Mattel manages its exposure to currency exchange rate fluctuations through the selection of currencies used for international borrowings. Mattel does not trade in financial instruments for speculative purposes.

 

For additional information regarding foreign currency contracts, see “International Segment” above, Item 7A “Quantitative and Qualitative Disclosures About Market Risk” and Item 8 “Financial Statements and Supplementary Data—Note 11 to the Consolidated Financial Statements—Derivative Instruments.”

 

Note 13—Financial Instruments

 

Mattel’s financial instruments include cash and equivalents, investments, accounts receivable and payable, short-term borrowings, and accrued liabilities. The carrying amount of these instruments approximates fair value because of their short-term nature.

 

The estimated fair value of Mattel’s long-term debt, including the current portion, is $794.7 million (compared to a carrying amount of $750.0 million) as of December 31, 2009 and $853.5 million (compared to a carrying amount of $900.0 million) as of December 31, 2008. The estimated fair value has been calculated based on broker quotes or rates for the same or similar instruments.

 

The fair value related disclosures for Mattel’s derivative financial instruments are included in “Note 11 to the Consolidated Financial Statements—Derivative Instruments” and “Note 12 to the Consolidated Financial Statements—Fair Value Measurements.”

 

87


Table of Contents
These excerpts taken from the MAT 10-K filed Feb 26, 2009.

Financial Instruments

 

Currency exchange rate fluctuations may impact Mattel’s results of operations and cash flows. Mattel seeks to mitigate its exposure to market risk by monitoring its foreign currency transaction exposure for the year and partially hedging such exposure using foreign currency forward exchange contracts primarily to hedge its purchase and sale of inventory, and other intercompany transactions denominated in foreign currencies. These contracts generally have maturity dates of up to 18 months. In addition, Mattel manages its exposure to currency exchange rate fluctuations through the selection of currencies used for international borrowings. Mattel does not trade in financial instruments for speculative purposes.

 

For additional information regarding foreign currency contracts, see “International Segment” above, Item 7A “Quantitative and Qualitative Disclosures About Market Risk” and Item 8 “Financial Statements and Supplementary Data—Note 11 to the Consolidated Financial Statements—Financial Instruments.”

 

Note 11—Financial Instruments

 

Derivative Financial Instruments

 

Currency exchange rate fluctuations may impact Mattel’s results of operations and cash flows. Inventory sale transactions denominated in the Euro, British pound sterling, Canadian dollar, Mexican peso, Hong Kong dollar, Indonesian rupiah, and Venezuelan bolivar fuerte are the primary transactions that caused currency transaction exposure for Mattel during 2008 and 2007. Mattel seeks to mitigate its exposure to market risk by monitoring its currency transaction exposure for the year and partially hedging such exposure using foreign currency forward exchange contracts. Such contracts are primarily used to hedge Mattel’s purchase and sale of inventory, and other intercompany transactions denominated in foreign currencies. These contracts generally have maturity dates of up to 18 months. In addition, Mattel manages its exposure to currency exchange rate fluctuations through the selection of currencies used for international borrowings. Mattel does not trade in financial instruments for speculative purposes. The ineffectiveness related to cash flow hedges was not significant during any year.

 

Mattel uses fair value derivatives to hedge most intercompany loans and advances denominated in foreign currencies. Due to the short-term nature of the contracts involved, Mattel does not use hedge accounting for these contracts. Changes in the fair value of these derivatives were not significant to the results of operations during any year.

 

As of December 31, 2008 and 2007, Mattel held foreign currency forward exchange contracts with notional amounts totaling $888.1 million and $1.07 billion, respectively. The notional amounts of these contracts were equal to the exposure hedged in both years.

 

88


Table of Contents

The loss on derivative financial instruments, net of tax, reclassified from accumulated other comprehensive loss to Mattel’s results of operations was $7.8 million, $24.1 million, and $2.3 million during 2008, 2007, and 2006, respectively. As of December 31, 2008, $4.2 million of pre-tax unrealized gains ($4.9 million net of tax benefit) and December 31, 2007, $22.0 million of pre-tax unrealized losses ($20.5 million net of tax benefit), related to derivative instruments have been recorded in accumulated other comprehensive loss. Mattel expects to reclassify the unrealized gains as of December 31, 2008 from accumulated other comprehensive loss to its results of operations over the life of the contracts, generally within 18 months or less.

 

Fair Value of Financial Instruments

 

Mattel’s financial instruments include cash, cash equivalents, investments, accounts receivable and payable, short-term borrowings, and accrued liabilities. The carrying amount of these instruments approximates fair value because of their short-term nature.

 

The estimated fair value of Mattel’s long-term debt, including the current portion, is $853.5 million (compared to a carrying amount of $900.0 million) as of December 31, 2008 and $613.1 million (compared to a carrying amount of $600.0 million) as of December 31, 2007. The estimated fair value has been calculated based on broker quotes or rates for the same or similar instruments.

 

The estimated fair value of derivative financial instruments recognized in Mattel’s consolidated balance sheets is as follows:

 

     December 31,  
     2008     2007  
     (In thousands)  

Accounts receivable

   $ 772     $ 1,033  

Prepaid expenses and other current assets

     23,914       2,202  

Other noncurrent assets

     28       152  

Accrued liabilities

     (11,757 )     (22,700 )

Other noncurrent liabilities

     (2,503 )     (855 )

 

The estimated fair value of derivative financial instruments is based on dealer quotes and reflects the amount that Mattel would receive or pay at maturity for contracts involving the same currencies and maturity dates, if they had been entered into as of December 31, 2008 or 2007.

 

89


Table of Contents
These excerpts taken from the MAT 10-K filed Feb 26, 2008.

Note 9—Financial Instruments

 

Marketable Securities

 

During 2005, Mattel sold marketable securities for proceeds totaling $42.0 million. Gains on sales of these securities totaling $25.8 million, net of transaction costs, were recorded in other non-operating income, net in the consolidated statements of operations for 2005.

 

Derivative Financial Instruments

 

Currency exchange rate fluctuations may impact Mattel’s results of operations and cash flows. Inventory sale transactions denominated in the Euro, British pound sterling, Canadian dollar, Mexican peso, Hong Kong dollar and Indonesian rupiah are the primary transactions that caused currency transaction exposure for Mattel during 2007 and 2006. Mattel seeks to mitigate its exposure to market risk by monitoring its currency transaction exposure for the year and partially hedging such exposure using foreign currency forward exchange contracts. Such contracts are primarily used to hedge Mattel’s purchase and sale of inventory, and other intercompany transactions denominated in foreign currencies. These contracts generally have maturity dates of up to 18 months. In addition, Mattel manages its exposure to currency exchange rate fluctuations through the selection of currencies used for international borrowings. Mattel does not trade in financial instruments for speculative purposes. The ineffectiveness related to cash flow hedges was not significant during any year.

 

Mattel uses fair value derivatives to hedge most intercompany loans and advances denominated in foreign currencies. Due to the short-term nature of the contracts involved, Mattel does not use hedge accounting for these contracts. Changes in the fair value of these derivatives were not significant to the results of operations during any year.

 

As of December 31, 2007 and 2006, Mattel held foreign currency forward exchange contracts with notional amounts totaling $1.07 billion and $1.09 billion, respectively. The notional amounts of these contracts were equal to the exposure hedged in both years.

 

The loss on derivative financial instruments, net of tax, reclassified from accumulated other comprehensive loss to Mattel’s results of operations was $24.1 million, $2.3 million, and $3.9 million during 2007, 2006, and 2005, respectively. As of December 31, 2007, $22.0 million of pre-tax unrealized losses ($20.5 million net of tax) and December 31, 2006, $6.7 million of pre-tax unrealized gains ($6.5 million net of tax), related to derivative instruments have been recorded in accumulated other comprehensive loss. Mattel expects to reclassify the unrealized losses as of December 31, 2007 from accumulated other comprehensive loss to its results of operations over the life of the contracts, generally within 18 months or less.

 

Fair Value of Financial Instruments

 

Mattel’s financial instruments include cash, cash equivalents, marketable securities, investments, accounts receivable and payable, short-term borrowings, and accrued liabilities. The carrying amount of these instruments approximates fair value because of their short-term nature.

 

The estimated fair value of Mattel’s long-term debt, including the current portion, is $613.1 million (compared to a carrying amount of $600.0 million) as of December 31, 2007 and $714.9 million (compared to a carrying amount of $700.0 million) as of December 31, 2006. The estimated fair value has been calculated based on broker quotes or rates for the same or similar instruments.

 

96


The estimated fair value of derivative financial instruments recognized in Mattel’s consolidated balance sheets is as follows:

 

     December 31,  
     2007     2006  
     (In thousands)  

Accounts receivable

   $ 1,033     $ 2,961  

Prepaid expenses and other current assets

     2,202       2,072  

Other noncurrent assets

     152       68  

Accrued liabilities

     (22,700 )     (8,706 )

Other noncurrent liabilities

     (855 )     (81 )

 

The estimated fair value of derivative financial instruments is based on dealer quotes and reflects the amount that Mattel would receive or pay at maturity for contracts involving the same currencies and maturity dates, if they had been entered into as of December 31, 2007 or 2006, respectively.

 

Note 9—Financial
Instruments

 

Marketable Securities

STYLE="margin-top:0px;margin-bottom:-6px"> 

During 2005, Mattel sold marketable securities for proceeds totaling $42.0
million. Gains on sales of these securities totaling $25.8 million, net of transaction costs, were recorded in other non-operating income, net in the consolidated statements of operations for 2005.

STYLE="margin-top:0px;margin-bottom:0px"> 

Derivative Financial Instruments

STYLE="margin-top:0px;margin-bottom:-6px"> 

Currency exchange rate fluctuations may impact Mattel’s results of
operations and cash flows. Inventory sale transactions denominated in the Euro, British pound sterling, Canadian dollar, Mexican peso, Hong Kong dollar and Indonesian rupiah are the primary transactions that caused currency transaction exposure for
Mattel during 2007 and 2006. Mattel seeks to mitigate its exposure to market risk by monitoring its currency transaction exposure for the year and partially hedging such exposure using foreign currency forward exchange contracts. Such contracts are
primarily used to hedge Mattel’s purchase and sale of inventory, and other intercompany transactions denominated in foreign currencies. These contracts generally have maturity dates of up to 18 months. In addition, Mattel manages its exposure
to currency exchange rate fluctuations through the selection of currencies used for international borrowings. Mattel does not trade in financial instruments for speculative purposes. The ineffectiveness related to cash flow hedges was not
significant during any year.

 

Mattel uses fair value
derivatives to hedge most intercompany loans and advances denominated in foreign currencies. Due to the short-term nature of the contracts involved, Mattel does not use hedge accounting for these contracts. Changes in the fair value of these
derivatives were not significant to the results of operations during any year.

 

FACE="Times New Roman" SIZE="2">As of December 31, 2007 and 2006, Mattel held foreign currency forward exchange contracts with notional amounts totaling $1.07 billion and $1.09 billion, respectively. The notional amounts of these contracts were
equal to the exposure hedged in both years.

 

The loss on
derivative financial instruments, net of tax, reclassified from accumulated other comprehensive loss to Mattel’s results of operations was $24.1 million, $2.3 million, and $3.9 million during 2007, 2006, and 2005, respectively. As of
December 31, 2007, $22.0 million of pre-tax unrealized losses ($20.5 million net of tax) and December 31, 2006, $6.7 million of pre-tax unrealized gains ($6.5 million net of tax), related to derivative instruments have been recorded in
accumulated other comprehensive loss. Mattel expects to reclassify the unrealized losses as of December 31, 2007 from accumulated other comprehensive loss to its results of operations over the life of the contracts, generally within 18 months
or less.

 

Fair Value of Financial Instruments

STYLE="margin-top:0px;margin-bottom:-6px"> 

Mattel’s financial instruments include cash, cash equivalents,
marketable securities, investments, accounts receivable and payable, short-term borrowings, and accrued liabilities. The carrying amount of these instruments approximates fair value because of their short-term nature.

STYLE="margin-top:0px;margin-bottom:0px"> 

The estimated fair value of Mattel’s long-term debt, including the
current portion, is $613.1 million (compared to a carrying amount of $600.0 million) as of December 31, 2007 and $714.9 million (compared to a carrying amount of $700.0 million) as of December 31, 2006. The estimated fair value has been
calculated based on broker quotes or rates for the same or similar instruments.

 


96








The estimated fair value of derivative financial instruments recognized in Mattel’s consolidated
balance sheets is as follows:

 


















































































   December 31, 
   2007  2006 
   (In thousands) 

Accounts receivable

  $1,033  $2,961 

Prepaid expenses and other current assets

   2,202   2,072 

Other noncurrent assets

   152   68 

Accrued liabilities

   (22,700)  (8,706)

Other noncurrent liabilities

   (855)  (81)

 

The estimated fair
value of derivative financial instruments is based on dealer quotes and reflects the amount that Mattel would receive or pay at maturity for contracts involving the same currencies and maturity dates, if they had been entered into as of
December 31, 2007 or 2006, respectively.

 

This excerpt taken from the MAT 10-K filed Feb 26, 2007.

Note 8—Financial Instruments

 

Marketable Securities

 

As of December 31, 2006 and 2005, Mattel held no marketable securities.

 

During 2005 and 2004, Mattel sold marketable securities for proceeds totaling $42.0 million and $28.2 million, respectively. Gains on sales of these securities totaling $25.8 million and $18.3 million, net of transaction costs, were recorded in other non-operating (income), net in the consolidated statements of operations for 2005 and 2004, respectively.

 

Derivative Financial Instruments

 

Currency exchange rate fluctuations may impact Mattel’s results of operations and cash flows. Inventory sale transactions denominated in the Euro, British pound sterling, Canadian dollar Mexican peso, Hong Kong dollar and Indonesian rupiah are the primary transactions that caused currency transaction exposure for Mattel during 2006 and 2005. Mattel seeks to mitigate its exposure to market risk by monitoring its currency transaction exposure for the year and partially hedging such exposure using foreign currency forward exchange and option contracts. Such contracts are primarily used to hedge Mattel’s purchase and sale of inventory, and other intercompany transactions denominated in foreign currencies. These contracts generally have maturity dates of up to 18 months. In addition, Mattel manages its exposure to currency exchange rate fluctuations through the selection of currencies used for international borrowings. Mattel does not trade in financial instruments for speculative purposes. The ineffectiveness related to cash flow hedges was not significant during any year.

 

Mattel uses fair value derivatives to hedge most intercompany loans and advances denominated in foreign currencies. Due to the short-term nature of the contracts involved, Mattel does not use hedge accounting for these contracts. Changes in the fair value of these derivatives were not significant to the results of operations during any year.

 

As of December 31, 2006 and 2005, Mattel held foreign currency forward exchange contracts with notional amounts totaling $1,088.6 million and $727.2 million. The notional amounts of these contracts were equal to the exposure hedged in both years.

 

The net loss on derivative financial instruments reclassified from accumulated other comprehensive loss to Mattel’s results of operations was $2.3 million, $3.9 million and $31.8 million during 2006, 2005 and 2004, respectively. As of December 31, 2006, $6.7 million of pre-tax unrealized losses ($6.5 million net of tax) and

 

90


Table of Contents

December 31, 2005, $4.5 million of pre-tax unrealized gains ($4.2 million net of tax), related to derivative instruments have been recorded in accumulated other comprehensive loss. Mattel expects to reclassify the unrealized gains as of December 31, 2006 from accumulated other comprehensive loss to its results of operations over the life of the contracts, generally within 18 months or less.

 

Fair Value of Financial Instruments

 

Mattel’s financial instruments include cash, cash equivalents, marketable securities, investments, accounts receivable and payable, short-term borrowings, and accrued liabilities. The carrying amount of these instruments approximates fair value because of their short-term nature.

 

The estimated fair value of Mattel’s long-term debt, including the current portion, is $714.9 million (compared to a carrying amount of $700.0 million) as of December 31, 2006 and $644.6 million (compared to a carrying amount of $625.0 million) as of December 31, 2005. The estimated fair value has been calculated based on broker quotes or rates for the same or similar instruments.

 

The estimated fair value of derivative financial instruments recognized in Mattel’s consolidated balance sheets is as follows (in thousands):

 

     December 31,

 
     2006

    2005

 

Accounts receivable

   $ 2,961     $ 1,309  

Prepaid expenses and other current assets

     2,072       6,218  

Accrued liabilities

     (8,706 )     (2,231 )

Other non-current liabilities

     (81 )      

 

The estimated fair value of derivative financial instruments is based on dealer quotes and reflects the amount that Mattel would receive or pay at maturity for contracts involving the same currencies and maturity dates, if they had been entered into as of December 31, 2006 or 2005, respectively.

 

This excerpt taken from the MAT 10-K filed Feb 27, 2006.

Note 8—Financial Instruments

 

Marketable Securities

 

As of December 31, 2005, Mattel held no marketable securities. As of December 31, 2004, Mattel held marketable securities totaling $43.6 million, stated at fair market value based on quoted market prices. These equity securities were classified as securities available-for-sale and included in other noncurrent assets in the consolidated balance sheets. As of December 31, 2005 and 2004, Mattel held no marketable securities for which cost exceeded the fair market value of the securities. Unrealized pre-tax gains of $26.1 million ($16.4 million net of tax) as of December 31, 2004 were deferred in accumulated other comprehensive loss related to these securities.

 

During 2005 and 2004, Mattel sold marketable securities for proceeds totaling $42.0 million and $28.2 million, respectively. Gains on sales of these securities totaling $25.8 million and $18.3 million, net of transaction costs, were recorded in other non-operating (income), net in the consolidated statements of operations for 2005 and 2004, respectively.

 

Derivative Financial Instruments

 

Currency exchange rate fluctuations may impact Mattel’s results of operations and cash flows. Inventory purchase transactions denominated in the Euro, British pound sterling, Mexican peso, Hong Kong dollar and Indonesian rupiah are the primary transactions that caused currency transaction exposure for Mattel during 2005 and 2004. Mattel seeks to mitigate its exposure to market risk by monitoring its currency transaction exposure for the year and partially hedging such exposure using foreign currency forward exchange and option contracts. Such contracts are primarily used to hedge Mattel’s purchase and sale of inventory, and other intercompany transactions denominated in foreign currencies. These contracts generally have maturity dates of up to 18 months. In addition, Mattel manages its exposure to currency exchange rate fluctuations through the selection of currencies used for international borrowings. Mattel does not trade in financial instruments for speculative purposes. The ineffectiveness related to cash flow hedges was not significant during any year.

 

Mattel uses fair value derivatives to hedge most intercompany loans and advances denominated in foreign currencies. Due to the short-term nature of the contracts involved, Mattel does not use hedge accounting for these contracts. Changes in the fair value of these derivatives were not significant to the results of operations during any year.

 

As of December 31, 2005 and 2004, Mattel held foreign currency forward exchange contracts with notional amounts totaling $727.2 million and $859.2 million. The notional amounts of these contracts were equal to the exposure hedged in both years.

 

The net loss on derivative financial instruments reclassified from accumulated other comprehensive loss to Mattel’s results of operations was $3.9 million, $31.8 million and $50.2 million during 2005, 2004 and 2003, respectively. As of December 31, 2005 and 2004, $4.5 million of pre-tax unrealized gains ($4.2 million net of tax) and $28.5 million of pre-tax unrealized losses ($25.0 million net of tax), respectively, related to derivative instruments have been recorded in accumulated other comprehensive loss. Mattel expects to reclassify the unrealized gains as of December 31, 2005 from accumulated other comprehensive loss to its results of operations over the life of the contracts, generally within 18 months or less.

 

Fair Value of Financial Instruments

 

Mattel’s financial instruments include cash, cash equivalents, marketable securities, investments, accounts receivable and payable, short-term borrowings, and accrued liabilities. The carrying amount of these instruments approximates fair value because of their short-term nature.

 

The estimated fair value of Mattel’s long-term debt, including the current portion, is $644.6 million (compared to a carrying amount of $625.0 million) as of December 31, 2005 and $632.9 million (compared to a

 

78


Table of Contents

carrying amount of $589.1 million) as of December 31, 2004. The estimated fair value has been calculated based on broker quotes or rates for the same or similar instruments.

 

The estimated fair value of derivative financial instruments recognized in Mattel’s consolidated balance sheets is as follows (in thousands):

 

     December 31,

 
     2005

     2004

 

Accounts receivable

   $     1,309      $ 2,120  

Prepaid expenses and other current assets

     6,218        1,094  

Accrued liabilities

     (2,231 )      (25,298 )

Other noncurrent liabilities

            (1,458 )

 

The estimated fair value of derivative financial instruments is based on dealer quotes and reflects the amount that Mattel would receive or pay at maturity for contracts involving the same currencies and maturity dates, if they had been entered into as of December 31, 2005 or 2004, respectively.

 

This excerpt taken from the MAT 10-K filed Mar 8, 2005.

Note 8—Financial Instruments

 

Marketable Securities

 

Marketable securities totaling $43.6 million and $78.6 million as of year end 2004 and 2003, respectively, are stated at fair market value based on quoted market prices. These equity securities are classified as securities available-for-sale and are included in other noncurrent assets in the consolidated balance sheets. As of year end 2004 and 2003, Mattel had no marketable securities for which cost exceeded the fair market value of the securities. Unrealized pre-tax gains of $26.1 million ($16.4 million net of tax) and $52.1 million ($32.8 million net of tax) as of year end 2004 and 2003, respectively, have been deferred in accumulated other comprehensive loss related to these securities.

 

During 2004 and 2003, Mattel sold marketable securities for proceeds totaling $28.2 million and $23.6 million, respectively. Gains on sales of these securities totaling $18.3 million and $15.5 million, net of transaction costs, were recorded in other non-operating (income) expense, net in the consolidated statements of income for 2004 and 2003, respectively.

 

Derivative Financial Instruments

 

Currency exchange rate fluctuations may impact Mattel’s results of operations and cash flows. Inventory purchase transactions denominated in the Euro, British pound sterling, Mexican peso, Hong Kong dollar and Indonesian rupiah are the primary transactions that cause currency transaction exposure for Mattel. Mattel seeks to mitigate its exposure to market risk by monitoring its currency transaction exposure for the year and partially hedging such exposure using foreign currency forward exchange and option contracts. Such contracts are primarily used to hedge Mattel’s purchase and sale of inventory, and other intercompany transactions

 

77


Table of Contents

denominated in foreign currencies. These contracts generally have maturity dates of up to 18 months. In addition, Mattel manages its exposure through the selection of currencies used for international borrowings. Mattel does not trade in financial instruments for speculative purposes. The ineffectiveness related to cash flow hedges was not significant during any year.

 

Mattel entered into a cross currency interest rate swap to convert the interest and principal amounts from Euros to US dollars on its 200 million Euro notes due 2002. The debt and related interest payable were marked-to-market as of each balance sheet date with the change in fair value of the derivative recorded in accumulated other comprehensive loss within stockholders’ equity until the loan and related interest were repaid at maturity in 2002.

 

Mattel uses fair value derivatives to hedge most intercompany loans and advances denominated in foreign currencies. Due to the short-term nature of the contracts involved, Mattel does not use hedge accounting for these contracts. Changes in fair value of these derivatives were not significant to the results of operations during any year.

 

As of year end 2004 and 2003, Mattel held foreign currency forward exchange contracts with notional amounts totaling $859.2 million and $1.07 billion. The notional amounts of these contracts were equal to the exposure hedged in both years.

 

The net loss reclassified from accumulated other comprehensive loss to Mattel’s results of operations was $31.8 million, $50.2 million and $16.6 million during 2004, 2003 and 2002, respectively. As of year end 2004 and 2003, $28.5 million of pre-tax unrealized losses ($25.0 million net of tax) and $26.7 million ($23.6 million net of tax), respectively, related to derivative instruments have been recorded in accumulated other comprehensive loss. Mattel expects to reclassify the unrealized losses as of year end 2004 from accumulated other comprehensive loss to its results of operations over the life of the contracts, generally within 18 months or less.

 

Fair Value of Financial Instruments

 

Mattel’s financial instruments include cash, cash equivalents, marketable securities, investments, accounts receivable and payable, short-term borrowings, and accrued liabilities. The carrying amount of these instruments approximates fair value because of their short-term nature.

 

The estimated fair value of Mattel’s long-term debt, including the current portion, is $632.9 million (compared to a carrying amount of $589.1 million) as of year end 2004 and $701.8 million (compared to a carrying amount of $641.4 million) as of year end 2003. The estimated fair value has been calculated based on broker quotes or rates for the same or similar instruments.

 

The estimated fair value of derivative financial instruments recognized in Mattel’s consolidated balance sheets is as follows (in millions):

 

     As of Year End

 
     2004

    2003

 

Accounts receivable

   $ 2.1     $ 5.0  

Prepaid expenses and other current assets

     1.1       0.9  

Accrued liabilities

     (25.3 )     (43.4 )

Other long-term liabilities

     (1.4 )     (0.2 )

 

The estimated fair value of derivative financial instruments is based on dealer quotes and reflects the amount that Mattel would receive or pay at maturity for contracts involving the same currencies and maturity dates, if they had been entered into as of year end 2004 or 2003, respectively.

 

78


Table of Contents
Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki