Mattel 2003 Annual Report Download - page 73

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Note 4—Employee Benefit Plans
Mattel and certain of its subsidiaries have qualified and non-qualified retirement plans covering
substantially all employees of these companies. These plans include defined benefit pension plans, defined
contribution retirement plans, postretirement benefit plans, and deferred compensation and excess benefit plans.
In addition, Mattel makes contributions to government-mandated retirement plans in the countries outside the US
where its employees work. A summary of retirement plan expense (income) is as follows (in millions):
For the Year Ended
2003 2002 2001
Defined benefit pension plans ....................................... $16.4 $ (6.3) $ (5.6)
Defined contribution retirement plans ................................. 24.0 22.9 23.3
Postretirement benefit plans ......................................... 5.0 5.0 3.5
Deferred compensation and excess benefit plans ......................... 3.0 2.7 2.4
Government-mandated plans outside the US ............................ 1.2 1.0 0.3
$49.6 $25.3 $23.9
Defined Benefit Pension Plans
Mattel provides defined benefit pension plans for eligible domestic employees, which satisfy the
requirements of the Employee Retirement Income Security Act of 1974 (“ERISA”). Some of Mattel’s foreign
subsidiaries have defined benefit pension plans covering substantially all of their eligible employees. Mattel
funds these plans in accordance with the terms of the plans and local statutory requirements, which differ for
each of the countries in which the subsidiaries are located.
The status of Mattel’s defined benefit pension plans is as follows (in thousands):
As of Year End
2003 2002
Change in Plan Assets
Plan assets at fair value, beginning of year ...................................... $231,893 $270,125
Actual return on plan assets ................................................. 31,172 (31,300)
Company contributions ..................................................... 1,829 415
Participant contributions .................................................... 360 277
Impact of currency exchange rate changes ...................................... 4,934 3,226
Benefits paid ............................................................. (10,406) (10,850)
Plan assets at fair value, end of year ........................................... $259,782 $231,893
Change in Projected Benefit Obligation
Projected benefit obligation, beginning of year .................................. $334,290 $300,051
Service cost .............................................................. 7,162 6,996
Interest cost .............................................................. 21,019 20,120
Company contributions ..................................................... 1,829 415
Participant contributions .................................................... 360 277
Plan amendments .......................................................... (169) —
Impact of currency exchange rate changes ...................................... 7,856 7,266
Actuarial loss ............................................................. 22,062 15,874
Benefits paid ............................................................. (17,013) (16,709)
Projected benefit obligation, end of year ....................................... $377,396 $334,290
Accumulated Benefit Obligation ............................................ $357,429 $319,318
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