Mattel 1999 Annual Report Download - page 42

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Mattel, Inc. and Subsidiaries
For the Year
( In thousands) 1 9 9 9 1 9 9 8 1 9 9 7
Revenues
Toy Marketing
USA Toys $ 2,1 9 9 ,329 $ 2,2 0 7 ,018 $ 2 ,3 3 0,65 8
US Fisher-Price/ Tyco Preschool 94 1 ,2 0 8 90 2 ,0 1 8 1 ,030,90 6
Other 31 6 ,9 0 2 2 5 6 ,0 8 9 58 ,330
International 1,59 6 ,4 4 9 1,71 2 ,5 0 9 1 ,73 3 ,6 0 5
Learning Company 7 7 0 ,4 8 8 8 3 9 ,3 1 5 62 0 ,9 3 1
Operations 1,426 ,1 6 7 1 ,488 ,5 0 2 1 ,554,0 4 7
Segment total 7,2 5 0 ,543 7 ,40 5 ,4 5 1 7 ,3 28,47 7
Elimination of intersegment sales ( 1 ,426 ,1 6 7 ) ( 1,48 6 ,3 2 0 ) (1,55 2 ,0 2 9)
Sales adjustments ( 3 0 9,42 6 ) ( 29 7 ,9 24) ( 3 2 0 ,901 )
Net sales $ 5 ,5 1 4,95 0 $ 5,6 2 1 ,20 7 $ 5,4 5 5 ,547
Operating Profit (Loss)
Toy Marketing
USA Toys $3 2 2 ,7 5 5 $ 348,14 2 $ 4 7 8 ,579
US Fisher-Price/ Tyco Preschool 10 5 ,5 1 9 97 ,813 87,74 2
Other 5,43 3 2 0 ,235 7 ,3 0 0
International 11 2 ,2 2 2 1 56,20 7 2 1 8 ,659
Learning Company ( 205,4 7 2 ) 1 1 4 ,3 44 ( 3 1 2,47 8 )
Operations 22 3 ,9 5 2 1 51,90 5 1 4 4 ,058
Segment total 56 4 ,409 8 8 8 ,646 6 2 3 ,8 60
Restructuring and other charges (3 4 5 ,9 96) ( 1 5 7 ,314 ) ( 34 3 ,6 0 6 )
Charge for incomplete technology – ( 56 ,8 2 6) ( 2 0 ,300)
Interest expense ( 1 5 1 ,60 9 ) ( 12 8 ,4 6 8) ( 1 1 2 ,612)
Corporate and other ( 17 7 ,547) ( 1 5 4 ,40 6 ) ( 14 6 ,1 2 6)
Income ( loss) before income taxes $( 11 0 ,7 4 3) $ 39 1 ,6 3 2 $ 1 ,2 1 6
Depreciation/ Amortization (a)
Toy Marketing
USA Toys $ 75 ,7 4 5 $ 61 ,5 1 0 $ 51 ,3 5 8
US Fisher-Price/ Tyco Preschool 38 ,6 7 3 41 ,3 76 43 ,92 6
Other 27,9 1 2 1 4 ,071 –
International 52 ,366 49,2 3 4 4 5 ,024
Learning Company 51,82 0 97 ,7 7 9 46 4 ,0 8 6
Operations 28 ,8 5 9 2 5 ,62 9 3 2 ,1 4 5
Segment total 27 5 ,375 2 8 9 ,599 6 3 6 ,5 39
Corporate and other 23 ,2 2 4 23 ,0 85 17 ,45 8
Depreciation and amortization $2 9 8 ,599 $ 3 1 2 ,6 84 $653 ,9 9 7
( a) Included in depreciation and amortization are charges for tooling. Such charges are allocated among segments
based on a percentage of relative sales.
As of Year End
( In thousands) 1 9 9 9 1 9 9 8 1 9 9 7
Assets
Toy Marketing
USA Toys $ 5 7 0 ,8 9 2 $ 5 7 1,97 6 $ 58 8 ,154
US Fisher-Price/ Tyco Preschool 23 0 ,2 3 7 27 9 ,7 7 3 33 7 ,6 8 0
Other 96,5 3 8 7 1 ,575 –
International 56 6 ,2 0 3 6 02,06 3 5 3 8 ,099
Learning Company 3 0 2 ,8 1 8 2 2 6 ,9 1 3 20 1 ,3 0 9
Operations 60 ,7 9 6 8 8 ,61 3 7 3 ,0 4 8
Segment total 1,8 2 7 ,484 1 ,84 0 ,9 1 3 1 ,7 38,29 0
Corporate and other (13 ,1 8 3 ) ( 4 6 ,5 9 2) ( 1 6 ,721)
Accounts receivable and inventories, net $1 ,8 1 4 ,301 $1 ,7 9 4 ,321 $1 ,7 2 1 ,569
The Toy Marketing segments sell a broad variety of children’s toy products,
which are grouped into four major categories: Girls, Infant and Preschool,
Entertainment and Wheels. Learning Company is a leading publisher of consumer
software for the personal computer. The table below presents revenues from external
customers by category:
For the Year
( In thousands) 1 9 9 9 1 9 9 8 1 9 9 7
Girls $2,082,841 $2,136,354 $2,217,400
Infant and Preschool 1,6 3 5,28 6 1,6 8 4,19 6 1,7 3 9,90 0
Wheels 75 9 ,8 1 3 7 14,50 6 5 9 0 ,700
Entertainment 5 3 1 ,5 4 0 479,89 1 4 2 1 ,700
Other 44 ,4 0 8 64 ,869 18 5 ,8 1 7
5,0 5 3 ,888 5,0 7 9 ,816 5,15 5 ,5 17
Sales adjustments ( 3 0 9,42 6 ) ( 29 7 ,9 24) ( 3 2 0 ,901 )
Toy category 4,7 4 4 ,462 4,7 8 1 ,892 4,8 3 4 ,616
Learning Company 7 7 0 ,4 8 8 8 3 9 ,3 1 5 62 0 ,9 3 1
Consolidated total $5,5 1 4 ,950 $ 5 ,621 ,2 0 7 $ 5 ,4 5 5 ,54 7
The tables below present information by geographic area. Revenues are
attributed to countries based on location of customer. Long-lived assets principally
include net property, plant and equipment, and goodwill.
For the Year
( In thousands) 1 9 9 9 1 9 9 8 1 9 9 7
Net Sales
United States $ 3 ,98 3 ,2 1 7 $ 3 ,9 9 8,82 3 $3 ,7 7 0 ,540
International 1,5 3 1 ,733 1,6 2 2 ,384 1,68 5 ,0 07
Consolidated total $5,5 1 4 ,950 $ 5 ,621 ,2 0 7 $ 5 ,4 5 5 ,54 7
As of Year End
( In thousands) 1 9 9 9 1 9 9 8 1 9 9 7
Long-Lived Assets
United States $1 ,4 7 7 ,202 $1,58 0 ,6 2 5 $ 7 7 0 ,1 4 7
International 675 ,2 0 2 6 3 5 ,23 8 5 1 8 ,1 98
2,1 5 2 ,404 2,2 1 5 ,863 1,28 8 ,3 45
Corporate and other 25 7 ,7 8 6 24 5 ,9 8 5 22 9 ,6 2 5
Consolidated total $2,4 1 0 ,190 $ 2 ,461 ,8 4 8 $ 1 ,5 1 7 ,97 0
Credit is granted to customers on an unsecured basis, and generally provides
for extended payment terms, which result in a substantial portion of trade receivables
being collected during the latter half of the year. Mattel’s two largest customers
accounted for the follow ing percentage of consolidated net sales and net accounts
receivable:
19 9 9 1 9 9 8 1 9 97
Worldw ide sales for the year ended 3 3 % 2 8% 30 %
Accounts receivable as of December 31 27 % 2 6 % 36%