we can

we can

IMAGINE
the future – mattel, inc. and subsidiaries consolidated balance sheets
IMAGINE
the future – mattel, inc. and subsidiaries consolidated statements
of cash flows For the Year
December 31, December 31, 2009 2008 2007
2009 2009 (In thousands)
(In thousands, except share data)
Cash Flows From Operating Activities:
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 528,704 $ 379,636 $ 599,993
ASSETS Adjustments to reconcile net income to net cash flows from operating
Current Assets activities:
Cash and equivalents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,116,997 $ 617,694 Net loss on sale of other property, plant, and equipment . . . . . . 1,491 6,831 2,790
Depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 152,065 160,048 160,790
Accounts receivable, less allowance of $24.5 million and $25.9 million in
Amortization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17,765 12,047 11,290
2009 and 2008, respectively . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 749,335 873,542 Asset impairments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,146 4,000 —
Inventories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 355,663 485,925 Deferred income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (21,971) (13,535) 23,034
Prepaid expenses and other current assets . . . . . . . . . . . . . . . . . . . . . . . . . . . 332,624 409,689 Tax benefits from share-based payment arrangements . . . . . . . . (36,726) 2,303 (5,706)
Share-based compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49,962 35,757 22,163
Total current assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,554,619 2,386,850 Increase (decrease) from changes in assets and liabilities:
Accounts receivable, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 154,909 (20,159) 15,510
Property, plant, and equipment, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 504,808 536,162 Inventories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 137,072 (96,645) (17,218)
Goodwill . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 828,468 815,803 Prepaid expenses and other current assets . . . . . . . . . . . . . . . . . . . (5,350) (24,064) 41,859
Other noncurrent assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 892,660 936,224 Accounts payable and income taxes payable . . . . . . . . . . . . . . . . . (10,472) (10,341) (306,235)
Other, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (33,554) 460 12,262
Total Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 4,780,555 $ 4,675,039
Net cash flows from operating activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 945,041 436,338 560,532
LIABILITIES AND STOCKHOLDERS’ EQUITY Cash Flows From Investing Activities:
Current Liabilities Purchases of tools, dies, and molds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (76,994) (84,012) (68,275)
Short-term borrowings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,950 $ — Purchases of other property, plant, and equipment . . . . . . . . . . . . . . . . . . . . (43,493) (114,796) (78,358)
Payments for businesses acquired . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (3,299) (58,396) (104,484)
Current portion of long-term debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50,000 150,000
Increase in investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — (85,300) (35,000)
Accounts payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 350,675 421,736 Proceeds from sale of investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73,132 — —
Accrued liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 617,881 649,383 Proceeds from sale of other property, plant, and equipment . . . . . . . . . . . . 1,351 7,199 827
Income taxes payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40,368 38,855 Proceeds from foreign currency forward exchange contracts . . . . . . . . . . . . 15,774 23,633 —
Net cash flows used for investing activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . (33,529) (311,672) (285,290)
Total current liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,060,874 1,259,974
Cash Flows From Financing Activities:
Noncurrent Liabilities Payments of short-term borrowings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (451,815) (976,266) (43,665)
Long-term debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 700,000 750,000 Proceeds from short-term borrowings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 453,090 633,410 389,926
Other noncurrent liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 488,692 547,930 Payments of long-term borrowings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (150,000) (50,000) (100,000)
Proceeds from long-term borrowings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 347,183 —
Total noncurrent liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,188,692 1,297,930 Payment of credit facility renewal costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (11,452) — —
Share repurchases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — (90,570) (806,349)
Commitments and Contingencies (See Note 14) Payment of dividends on common stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (271,353) (268,854) (272,343)
Stockholders’ Equity Proceeds from exercise of stock options . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30,896 18,303 222,561
Tax benefits from share-based payment arrangements . . . . . . . . . . . . . . . . . 36,726 (2,303) 5,706
Common stock $1.00 par value, 1.0 billion shares authorized; 441.4 million Other, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (12,182) (6,598) 16,399
shares issued . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 441,369 441,369 Net cash flows used for financing activities . . . . . . . . . . . . . . . . . . . . . . . . . . . (376,090) (395,695) (587,765)
Additional paid-in capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,684,694 1,642,092
Effect of Currency Exchange Rate Changes on Cash . . . . . . . . . . . . . . . . (36,119) (12,425) 8,119
Treasury stock at cost; 79.5 million shares and 82.9 million shares in 2009 and
Increase (Decrease) in Cash and Equivalents . . . . . . . . . . . . . . . . . . . . . . . 499,303 (283,454) (304,404)
2008, respectively . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,555,046) (1,621,264)
Cash and Equivalents at Beginning of Year . . . . . . . . . . . . . . . . . . . . . . . . . 617,694 901,148 1,205,552
Retained earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,339,506 2,085,573 Cash and Equivalents at End of Year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,116,997 $ 617,694 $ 901,148
Accumulated other comprehensive loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (379,534) (430,635)
Supplemental Cash Flow Information:
Total stockholders’ equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,530,989 2,117,135 Cash paid during the year for:
Income taxes, gross . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 131,333 $ 118,347 $ 173,617
Total Liabilities and Stockholders’ Equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 4,780,555 $ 4,675,039 Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69,503 77,466 70,195
The accompanying notes are an integral part of these statements. The accompanying notes are an integral part of these statements.

35 Mattel 2010 Annual Report 36