Mattel 2014 Annual Report Download - page 87

equities are benchmarked against a combination of developed and emerging markets indices. Fixed income
securities are long-duration bonds intended to closely match the duration of the liabilities and include US
government treasuries and agencies, corporate bonds from various industries, and mortgage-backed and asset-
backed securities.
Mattel’s defined benefit pension plan assets are measured and reported in the financial statements at fair
value using inputs, which are more fully described in “Note 10 to the Consolidated Financial Statements—Fair
Value Measurements,” as follows:
December 31, 2014
Level 1 Level 2 Level 3 Total
(In thousands)
Collective trust funds:
US equity securities ................................. $ — $174,027 $ — $174,027
International equity securities ......................... — 166,432 — 166,432
International fixed income ........................... — 47,260 — 47,260
US government and US government agency securities ......... — 36,531 — 36,531
US corporate debt instruments ............................ — 24,628 — 24,628
International corporate debt instruments ..................... — 4,700 — 4,700
Mutual funds .......................................... 561 15,000 — 15,561
Other ................................................ — 6,801 — 6,801
Total ........................................ $ 561 $475,379 $ — $475,940
December 31, 2013
Level 1 Level 2 Level 3 Total
(In thousands)
Collective trust funds:
US equity securities ................................. $ — $174,735 $ — $174,735
International equity securities ......................... — 164,998 — 164,998
International fixed income ........................... — 41,523 — 41,523
US government and US government agency securities ......... — 31,434 — 31,434
US corporate debt instruments ............................ — 21,171 — 21,171
International corporate debt instruments ..................... — 4,996 — 4,996
Mutual funds .......................................... 1,520 7,221 — 8,741
Other ................................................ — 8,847 — 8,847
Total ........................................ $ 1,520 $454,925 $ — $456,445
The fair value of collective trust funds and mutual funds are determined based on the net asset value of
shares held at year-end. The fair value of US government securities, US government agency securities, and
corporate debt instruments are determined based on quoted market prices or are estimated using pricing models
with observable inputs, quoted prices of securities with similar characteristics, or discounted cash flows.
Mattel’s defined benefit pension plan assets are not directly invested in Mattel common stock. Mattel
believes that the long-term rate of return on plan assets of 8.0% used in determining plan expense for the year
ended December 31, 2014 was reasonable based on historical returns.
Defined Contribution Retirement Plans
Domestic employees are eligible to participate in a 401(k) savings plan, the Mattel, Inc. Personal Investment
Plan (the “Plan”), sponsored by Mattel, which is a funded defined contribution plan intended to comply with
ERISA’s requirements. Contributions to the Plan include voluntary contributions by eligible employees and
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