Mattel 2014 Annual Report Download - page 94

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The following table presents the classification and amount of the reclassifications from accumulated other
comprehensive income (loss) to the consolidated statement of operations:
For the Year Statements of Operations
Classification2014 2013 2012
(In thousands)
Derivative Instruments
(Loss) gain on foreign currency forward
exchange contracts .................. $ (916) $ (5,735) $ 29,978 Cost of sales
33 838 (45) Provision for income taxes
$ (883) $ (4,897) $ 29,933 Net income
Defined Benefit Pension Plans
Amortization of prior service credit ....... $ 1,037 $ 1,057 $ 502 (a)
Recognized actuarial loss ............... (15,788) (21,771) (19,137) (a)
Settlement loss ....................... — (1,835) (3,534) (a)
(14,751) (22,549) (22,169)
5,343 8,127 8,037 Provision for income taxes
$ (9,408) $(14,422) $(14,132) Net income
(a) The amortization of prior service credit, recognized actuarial loss, and settlement loss are included in the
computation of net periodic benefit cost. Refer to “Note 4 to the Consolidated Financial Statements—
Employee Benefit Plans” for additional information regarding Mattel’s net periodic benefit cost.
Currency Translation Adjustments
For 2014, currency translation adjustments resulted in a net loss of $189.7 million, primarily due to the
weakening of the Euro, Mexican peso, British pound sterling, Russian ruble, and Brazilian real against the US
dollar. For 2013, currency translation adjustments resulted in a net loss of $29.7 million, primarily due to the
weakening of the Brazilian real, Australian dollar, and Indonesian rupiah against the US dollar, partially offset by
the strengthening of the Euro against the US dollar. For 2012, currency translation adjustments resulted in a net
gain of $27.6 million, primarily due to the strengthening of the Euro, Mexican peso, and British pound sterling
against the US dollar, partially offset by the weakening of the Brazilian real against the US dollar.
Note 7—Share-Based Payments
Mattel Stock Option Plans
In May 2010, Mattel’s stockholders approved the Mattel, Inc. 2010 Equity and Long-Term Compensation
Plan (the “2010 Plan”). Upon approval of the 2010 Plan, Mattel terminated its 2005 Equity Compensation Plan
(the “2005 Plan”), except with respect to grants then outstanding under the 2005 Plan. All restricted stock unit
(“RSU”) awards made under the 2005 Plan have vested as of December 31, 2014. Outstanding stock option
grants under the 2005 Plan that have not expired or have not been terminated continue to be exercisable under the
terms of their respective grant agreements. The terms of the 2010 Plan are substantially similar to the terms of the
2005 Plan.
Under the 2010 Plan, Mattel has the ability to grant nonqualified stock options, incentive stock options,
stock appreciation rights, restricted stock, RSUs, dividend equivalent rights, performance awards, and shares of
common stock to officers, employees, and other persons providing services to Mattel. Generally, options vest and
become exercisable contingent upon the grantees’ continued employment or service with Mattel. Nonqualified
stock options are granted at not less than 100% of the fair market value of Mattel’s common stock on the date of
grant, expire no later than ten years from the date of grant, and vest on a schedule determined by the
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