Mattel 2003 Annual Report Download - page 97

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First
Quarter
Second
Quarter
Third
Quarter
Fourth
Quarter
(In thousands, except per share amounts)
Year Ended December 31, 2002
Net sales (a) ....................................... $741,984 $804,444 $1,669,424 $1,669,488
Gross profit ....................................... 331,894 354,358 840,400 834,335
Advertising and promotion expenses .................... 82,671 82,858 186,980 199,993
Other selling and administrative expenses ................ 213,719 221,168 286,359 329,098
Restructuring and other charges ....................... 14,800 6,900 — 2,900
Operating income ................................... 20,704 43,432 367,061 302,344
Income (loss) from continuing operations before
income taxes ..................................... (6,468) 25,649 347,168 255,148
Income (loss) from continuing operations ................ (3,951) 19,578 253,321 186,094
Gain from discontinued operations, net of tax (b) .......... — — 27,253 —
Cumulative effect of change in accounting principles,
net of tax ....................................... (252,194) — — —
Net income (loss) ................................... (256,145) 19,578 280,574 186,094
Income (loss) per common share—Basic:
Income (loss) from continuing operations ............ $ (0.01) $ 0.04 $ 0.58 $ 0.43
Gain from discontinued operations (b) .............. — — 0.06 —
Cumulative effect of change in accounting principles . . . (0.58) — — —
Net income (loss) ............................... $ (0.59) $ 0.04 $ 0.64 $ 0.43
Weighted average number of common shares ......... 432,640 436,134 436,959 437,354
Income (loss) per common share—Diluted:
Income (loss) from continuing operations ............ $ (0.01) $ 0.04 $ 0.57 $ 0.42
Gain from discontinued operations (b) .............. — — 0.06 —
Cumulative effect of change in accounting principles . . . (0.58) — — —
Net income (loss) ............................... $ (0.59) $ 0.04 $ 0.63 $ 0.42
Weighted average number of common and common
equivalent shares ............................. 432,640 442,163 442,151 442,235
Dividends declared per common share .................. $ — $ — $ — $ 0.05
Common stock market price:
High ......................................... $ 21.05 $ 22.20 $ 20.95 $ 20.70
Low ......................................... 16.80 19.71 17.36 15.75
(a) 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 a reduction of cost of sales. Commencing October 1, 2003, close out sales are reported as net
sales in Mattel’s consolidated statements of operations. Accordingly, close out sales for the fourth quarter
of 2003, totaling $19.2 million, are included in reported net sales and all prior close out sales were
classified as a reduction of cost of sales. The following table provides the quantification of close out sales
by quarter for 2002 (in thousands):
First
Quarter
Second
Quarter
Third
Quarter
Fourth
Quarter
2002 ................................................. $25,034 $28,659 $30,053 $28,927
(b) As more fully described in Note 14 to the consolidated financial statements, the Consumer Software
segment, which was comprised primarily of Learning Company, was reported as a discontinued operation
effective March 31, 2000, and the consolidated statements of operations were reclassified to segregate the
operating results of the Consumer Software segment.
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