Mattel 2014 Annual Report Download - page 11

line, Fisher-Price will introduce BeatBo, a new character that will get babies singing, dancing, and moving along.
Also in 2015, Thomas & Friends will celebrate 70 years of friendship with a year’s worth of great products and
programming. In summer 2015, the first permanent US theme park for Thomas & Friends, located at Edaville
USA, will open to the public. Thomas & Friends will continue to be supported with new products, including
Turbo Flip Thomas™ and Trackmaster®Shipwreck.
The Construction and Arts & Crafts Brands category includes MEGA BLOKS, RoseArt, and Board Dudes.
MEGA BLOKS will celebrate 30 years of construction in 2015 and will continue to expand its Preschool,
Kids, and Collectors portfolios of building sets. MEGA BLOKS’ junior construction line will partner with
Fisher-Price to offer Fisher-Price endorsed First Builders products. In honor of this year’s Thomas & Friends
DVD release, Sodor’s Legend of the Lost Treasure, MEGA BLOKS will introduce a range of buildable Thomas
construction sets that include motorized features. For boys, the brand will feature new MEGA BLOKS
SpongeBob SquarePants™ and Despicable Me™ sets, each based on the franchises’ 2015 movie releases, The
SpongeBob™Movie: Sponge Out of Water and Minions. For girls, the brand will introduce a line of build &
display Monster High sets with secret reveals, electronic features, and fully articulated mini-monster figures. The
MEGA BLOKS Collectors portfolio will bring highly detailed builds, product features, and micro action figures
based on the highly anticipated 2015 releases of Halo®, Call of Duty®, and Assassin’s Creed™ video games.
New to the Collectors portfolio this year is the launch of MEGA BLOKS Terminator Genisys construction sets
with all-new characters, vehicles, and locations.
International Segment
Products marketed by the International segment are generally the same as those developed and marketed by
the North America segment, although some are developed or adapted for particular international markets.
Mattel’s products are sold directly to retailers and wholesalers in most European, Latin American, and Asian
countries, and in Australia and New Zealand, and through agents and distributors in those countries where Mattel
has no direct presence.
Mattel’s International segment revenue represented 46% of worldwide consolidated gross sales in 2014.
Within the International segment, Mattel operates in three regional groups that generated the following gross
sales during 2014:
Amount
Percentage of
International
Gross Sales
(In millions, except
percentage information)
Europe .............................................................. $1,687.1 55%
Latin America ......................................................... 909.4 30%
Asia Pacific .......................................................... 465.0 15%
$3,061.5 100%
No individual country within the International segment exceeded 6% of worldwide consolidated gross sales
during 2014.
The strength of the US dollar relative to other currencies can significantly affect the revenues and
profitability of Mattel’s international operations. Mattel enters into foreign currency forward exchange contracts,
primarily to hedge its purchase and sale of inventory and other intercompany transactions denominated in foreign
currencies, to limit the impact of exchange rate fluctuations on its results of operations and cash flows. See Part
II, Item 7A “Quantitative and Qualitative Disclosures About Market Risk” and Part II, Item 8 “Financial
Statements and Supplementary Data—Note 9 to the Consolidated Financial Statements—Derivative
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