Mattel 2015 Annual Report Download - page 38

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During 2015, 2014, and 2013, Mattel paid total dividends per share of $1.52, $1.52, and $1.44, respectively, to holders of
its common stock. 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. The payment of dividends on common stock is at the discretion of the Board of
Directors and is subject to customary limitations. Dividend payments were $515.1 million, $514.8 million, and $494.4 million
in 2015, 2014, and 2013, 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 decreased $78.9 million to $892.8 million at December 31, 2015, as compared to $971.7
million at December 31, 2014. The decrease was primarily due to dividend payments, purchases of tools, dies, and molds and
other property, plant, and equipment, partially offset by cash flows from operating activities.
Accounts receivable increased $50.6 million to $1.15 billion at December 31, 2015, as compared to $1.09 billion at
December 31, 2014. Inventory increased $25.7 million to $587.5 million at December 31, 2015, as compared to $561.8 million
at December 31, 2014. The increase in accounts receivable was primarily due to the later timing of sales in the US. The
increase in inventory was primarily due to a shift in North America from direct import sales to trade sales, which requires
longer lead times.
Accounts payable and accrued liabilities increased $239.8 million to $1.31 billion at December 31, 2015, as compared to
$1.07 billion at December 31, 2014. The increase was primarily due to the extension of credit terms with third-party vendors,
tighter management of vendor disbursements, and higher incentive compensation.
As of December 31, 2015, Mattel had foreign short-term borrowings outstanding of $16.9 million, an increase of $16.9
million from December 2014. The current portion of long-term debt increased to $300.0 million at December 31, 2015 due to
the scheduled repayment of 2011 Senior Notes in 2016.
A summary of Mattel’s capitalization is as follows:
December 31,
2015 2014
(In millions, except percentage
information)
2010 Senior Notes $ 500.0 10% $ 500.0 9%
2011 Senior Notes 300.0 6 600.0 11
2013 Senior Notes 500.0 10 500.0 9
2014 Senior Notes 500.0 10 500.0 9
Total noncurrent long-term debt 1,800.0 36 2,100.0 38
Other noncurrent liabilities 473.9 10 584.0 10
Stockholders’ equity 2,633.3 54 2,949.1 52
$ 4,907.2 100% $ 5,633.1 100%
Noncurrent long-term debt decreased by $300.0 million from December 31, 2014 to $1.80 billion at December 31, 2015
due to the reclassification of the 2011 Senior Notes due in November 2016 to current.
Stockholders’ equity decreased $315.8 million from December 31, 2014 to $2.63 billion at December 31, 2015, primarily
due to dividend payments and currency translation adjustments, partially offset by net income.
Mattel’s debt-to-total capital ratio, including short-term borrowings and the current portion of long-term debt, increased
from 41.6% at December 31, 2014 to 44.6% at December 31, 2015 as a result of lower stockholders’ equity.
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.