Mattel 2002 Annual Report Download - page 70

Deferred Compensation and Excess Benefit Plans
Mattel provides a deferred compensation plan that permits certain officers and key employees to elect to
defer portions of their compensation. The deferred compensation plan, together with certain contributions made
by Mattel and employees to an excess benefit plan, earn various rates of return. The liability for these plans as of
year end 2002 and 2001 was $36.1 million and $36.8 million, respectively. Mattel’s contribution to these plans
and the related administrative expense were not significant to the results of operations during any year.
Mattel has purchased group trust-owned life insurance contracts designed to assist in funding these
programs. The cash surrender value of these policies, valued at $59.3 million and $57.8 million as of year end
2002 and 2001, respectively, are held in an irrevocable rabbi trust which is included in other assets in the
consolidated balance sheets.
Postretirement Benefits
Fisher-Price has an unfunded postretirement health insurance plan covering certain eligible domestic
employees hired prior to January 1, 1993. Details of the expense for the Fisher-Price plan recognized in the
consolidated statements of operations are as follows (in thousands):
For the Year
2002 2001 2000
Servicecost .......................................................... $ 189 $ 273 $ 201
Interest cost .......................................................... 3,498 2,808 2,886
Curtailment loss ....................................................... — 76 —
Recognized net actuarial loss ............................................. 1,217 303 202
Net postretirement benefit cost ........................................... $4,904 $3,460 $3,289
Amounts included in the consolidated balance sheets for this plan are as follows (in thousands):
As of Year End
2002 2001
Current retirees ............................................................ $48,477 $34,758
Fully eligible active employees ............................................... 3,139 3,621
Other active employees ..................................................... 4,159 4,799
Accumulated postretirement benefit obligation ............................... 55,775 43,178
Unrecognized net actuarial loss ............................................... (23,822) (12,974)
Accrued postretirement benefit liability ......................................... $31,953 $30,204
Reconciliation of the liabilities of Fisher-Price’s postretirement health insurance plan is as follows (in
thousands):
As of Year End
2002 2001
Change in Accumulated Postretirement Benefit Obligation
Accumulated postretirement benefit obligation, beginning of year ................. $43,178 $39,720
Servicecost ............................................................ 189 273
Interest cost ............................................................ 3,498 2,808
Actuarial loss ........................................................... 12,065 4,248
Benefits paid, net of participant contributions ................................. (3,155) (3,871)
Accumulated postretirement benefit obligation, end of year ...................... $55,775 $43,178
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