Mattel 2003 Annual Report Download - page 95

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As discussed in Note 1 to the consolidated financial statements, effective October 1, 2003, Mattel changed
the way certain close out sales are classified in its consolidated statement of operations. Close out sales are sales
of certain products that are no longer included in current product lines. These sales were previously classified as
areduction of cost of sales. Commencing October 1, 2003, close out sales are reported as net sales in Mattel’s
consolidated statements of operations. This change in classification has no impact on gross profit, operating
income, net income, income per common share, or any element of the consolidated balance sheets or
consolidated statements of cash flows for any date or period presented. The following table provides the
quantification of close out sales by segment, worldwide and geographic area:
For the Year
2003 (a) 2002 2001
(In thousands)
Segment
Domestic:
Mattel Brands US ............................................. $17,814 $ 43,299 $ 85,308
Fisher-Price Brands US ........................................ 10,313 37,753 44,341
American Girl Brands ......................................... — — —
Total Domestic ................................................... 28,127 81,052 129,649
International ..................................................... 9,997 31,621 33,739
$38,124 $112,673 $163,388
Worldwide
Mattel Brands .................................................... $25,492 $ 64,113 $107,829
Fisher-Price Brands ............................................... 12,556 46,030 53,351
American Girl Brands ............................................. — — —
Other ........................................................... 76 2,530 2,208
$38,124 $112,673 $163,388
Geographic Area
United States .................................................... $28,127 $ 81,052 $129,649
International:
Europe ..................................................... 6,202 15,072 15,240
Latin America ................................................ 1,382 8,814 6,508
Canada ..................................................... 621 2,540 4,975
Asia Pacific ................................................. 1,792 5,195 7,016
Total International ................................................ 9,997 31,621 33,739
$38,124 $112,673 $163,388
(a) Close out sales for the three months ended December 31, 2003, totaling $19.2 million, are included in
reported sales. Close out sales for the first nine months of 2003, totaling $38.1 million, are classified as a
reduction of cost of sales.
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