Mattel 2012 Annual Report Download - page 61

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In the normal course of business, Mattel is regularly audited by federal, state, local, and foreign tax
authorities. The ultimate settlement of any particular issue with the applicable taxing authority could have a
material impact on Mattel’s consolidated financial statements.
New Accounting Pronouncements
See Item 8 “Financial Statements and Supplementary Data—Note 1 to the Consolidated Financial
Statements—Summary of Significant Accounting Policies.”
Non-GAAP Financial Measure
In this Annual Report on Form 10-K, Mattel includes a non-GAAP financial measure, gross sales, which it
uses to analyze its operations and to monitor, assess, and identify meaningful trends in its operating and financial
performance. Net sales, as reported in the consolidated statements of operations, include the impact of sales
adjustments such as trade discounts and other allowances. Gross sales represent sales to customers, excluding the
impact of sales adjustments. Consistent with its segment reporting, Mattel presents changes in gross sales as a
metric for comparing its aggregate, business unit, brand, and geographic results to highlight significant trends in
Mattel’s business. Changes in gross sales are discussed because, while Mattel records the detail of such sales
adjustments in its financial accounting systems at the time of sale, such sales adjustments are generally not
associated with individual products, making net sales less meaningful.
A reconciliation of gross sales to the most directly comparable GAAP financial measure, net sales, is as
follows:
For the Year
2012 2011 2010
(In thousands)
Revenues by Segment
North America .............................................. $3,330,217 $3,296,995 $3,190,305
International ............................................... 3,126,088 3,001,705 2,679,273
American Girl .............................................. 596,298 542,387 517,032
Gross sales ................................................. 7,052,603 6,841,087 6,386,610
Sales adjustments ........................................... (631,722) (575,050) (530,415)
Net sales .................................................. $6,420,881 $6,266,037 $5,856,195
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