Mattel 2014 Annual Report Download - page 50

Subsequent Event
On January 26, 2015, Mattel announced that its Board of Directors declared a first quarter dividend of $0.38
per common share. The dividend is payable on March 6, 2015 to stockholders of record on February 19, 2015.
Litigation
The content of Item 8 “Financial Statements and Supplementary Data—Note 11 to the Consolidated
Financial Statements—Commitments and Contingencies—Litigation” is hereby incorporated by reference in this
Item 7.
Effects of Inflation
Inflation rates in the US and in major foreign countries where Mattel does business have not had a
significant impact on its results of operations or financial position during 2014, 2013, or 2012. Mattel receives
some protection from the impact of inflation from high turnover of inventories and its ability, under certain
circumstances and at certain times, to pass on higher prices to its customers.
Employee Savings Plan
Mattel sponsors a 401(k) savings plan, the Mattel, Inc. Personal Investment Plan (the “Plan”), for its
domestic employees. Contributions to the Plan include voluntary contributions by eligible employees and
employer automatic and matching contributions by Mattel. The Plan allows employees to allocate both their
voluntary contributions and their employer automatic and matching contributions to a variety of investment
funds, including a fund that is invested in Mattel common stock (the “Mattel Stock Fund”). Employees are not
required to allocate any of their Plan account balance to the Mattel Stock Fund, allowing employees to limit or
eliminate their exposure to market changes in Mattel’s stock price. Furthermore, the Plan limits the percentage of
the employee’s total account balance that may be allocated to the Mattel Stock Fund to 25%. Employees may
generally reallocate their account balances on a daily basis. However, pursuant to Mattel’s insider trading policy,
employees classified as insiders and restricted personnel under Mattel’s insider trading policy are limited to
certain periods in which they may make allocations into or out of the Mattel Stock Fund.
Application of Critical Accounting Policies and Estimates
Mattel makes certain estimates and assumptions that affect the reported amounts of assets and liabilities and
the reported amounts of revenues and expenses. The accounting policies and estimates described below are those
Mattel considers most critical in preparing its consolidated financial statements. Management has discussed the
development and selection of these critical accounting policies and estimates with the Audit Committee of its
Board of Directors, and the Audit Committee has reviewed the disclosures included below. These accounting
policies and estimates include significant judgments made by management using information available at the
time the estimates are made. As described below, however, these estimates could change materially if different
information or assumptions were used instead.
For a summary of Mattel’s significant accounting policies, estimates, and methods used in the preparation of
Mattel’s consolidated financial statements, see Item 8 “Financial Statements and Supplementary Data—Note 1 to
the Consolidated Financial Statements—Summary of Significant Accounting Policies.” In most instances, Mattel
must use an accounting policy or method because it is the only policy or method permitted under accounting
principles generally accepted in the United States of America (“US GAAP”).
Accounts Receivable—Allowance for Doubtful Accounts
The allowance for doubtful accounts represents adjustments to customer trade accounts receivable for
amounts deemed partially or entirely uncollectible. Management believes the accounting estimate related to the
allowance for doubtful accounts is a “critical accounting estimate” because significant changes in the
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