Mattel 2014 Annual Report Download - page 28

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If Mattel’s nonamortizable intangible assets or goodwill becomes impaired, Mattel’s results of operations
could be adversely affected.
Mattel tests its nonamortizable intangible assets, including trademarks and trade names, and goodwill for
impairment annually or more often if an event or circumstance indicates that an impairment may have occurred.
The impairment test for nonamortizable intangible assets is performed by comparing the estimated fair values of
the assets with their carrying values. Future changes in estimates used to determine the fair values may impact
the fair value of Mattel’s intangible assets, which could result in a write-down, negatively impacting its results of
operations. For purposes of evaluating whether goodwill is impaired, goodwill is allocated to various reporting
units, which are at the operating segment level. Declines in profitability of Mattel’s reporting units may impact
the fair value of its reporting units, which could result in a write-down of its goodwill, negatively impacting its
results of operations.
Mattel’s stock price has been volatile over the past several years and could decline in the future, resulting
in losses for our investors.
All the factors discussed in this section or any other material announcements or events could affect our
stock price. In addition, quarterly fluctuations in our operating results, changes in investor and analyst perception
of our business risks and conditions of our business, our ability to meet earnings estimates and other performance
expectations of financial analysis or investors, unfavorable commentary or downgrades of our stock by research
analysts, fluctuations in the stock prices of our peer companies or in stock markets in general, and general
economic or political conditions could also cause the price of our stock to change. A significant drop in the price
of our stock could expose us to the risk of securities class action lawsuits, which could result in substantial costs
and divert management’s attention and resources, adversely affecting our business.
*****************
If any of the risks and uncertainties described in the cautionary risk factors listed above actually occurs,
Mattel’s business, financial condition and results of operations could be significantly and adversely affected. The
risk factors listed above are not exhaustive. Other sections of this Annual Report on Form 10-K include
additional factors that could materially and adversely impact Mattel’s business, financial condition and results of
operations. Moreover, Mattel operates in a very competitive and rapidly changing environment. New factors
emerge from time to time, and it is not possible for management to predict the impact of all of these factors on
Mattel’s business, financial condition or results of operations, or the extent to which any factor, or combination
of factors, may cause actual results to differ materially from those contained in any forward-looking statements.
Given these risks and uncertainties, investors should not rely on forward-looking statements as a prediction of
actual results. Any or all of the forward-looking statements contained in this Annual Report on Form 10-K and
any other public statement made by Mattel or its representatives may turn out to be wrong. Mattel expressly
disclaims any obligation to update or revise any forward-looking statements, whether as a result of new
developments or otherwise.
Item 1B. Unresolved Staff Comments.
None.
Item 2. Properties.
Mattel owns its corporate headquarters in El Segundo, California, consisting of approximately
335,000 square feet, and an adjacent office building consisting of approximately 55,000 square feet. Mattel also
leases buildings in El Segundo consisting of approximately 327,000 square feet. All segments use these facilities.
Mattel also owns facilities in East Aurora, New York, consisting of approximately 535,000 square feet, which is
used by the North America segment and for brand and corporate support functions. American Girl owns its
headquarters facilities in Middleton, Wisconsin, consisting of approximately 180,000 square feet, a warehouse in
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