Mattel 2001 Annual Report Download

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ENERGIZE
GLOBALIZE
MOBILIZE
2001 MATTEL, INC. ANNUAL REPORT

Table of contents

  • Page 1
    ENERGIZE GLOBALIZE MOBILIZE 2001 MATTEL, INC. ANNUAL REPORT

  • Page 2
    op.ti.mize (op ˘ 't -miz' ) tr.v. -mized, -miz.ing, -miz.es 1. To make as perfect or effective as possible. 2. To increase the computing speed and efficiency of. 3. To make the most of. e

  • Page 3
    ... data for toy sales at the consumer level, we gained th DESPITE THE SIGNIFICANT CHALLENGES WE FACED DURING 2001, MATTEL HAD A SUCCESSFUL YEAR AND IS POISED TO CONTINUE IMPROVING ITS PERFORMANCE IN THE YEARS AHEAD. 2001 presented substantial obstacles for our company. Global economies softened...

  • Page 4
    ...major European markets, as well as in Canada, Mexico and Australia. In 2001, perhaps the most dramatic evidence of our improved supply chain performance was seen in the successful, worldwide benefits of our strategic partnership with Bandai, Japan's largest toy maker, eliminating chronic operating...

  • Page 5
    ... and engineers closer to production locations. We developed and have begun executing a three-year plan to fully integrate and upgrade our information systems and technology infrastructure. We have added warehouse and office space in China to capitalize on the region's structural cost advantages. We...

  • Page 6
    ..., talent and resources needed to build a children's hospital in Tijuana, Mexico, several elementary schools in Indonesia and a daycare center in China. Here in the U.S., construction of the new, world-class Mattel Children's Hospital at the University of California, Los Angeles is underway thanks...

  • Page 7
    ... in last year's shareholder letter. I would like to tell you how we intend to build upon these objectives this year: 1. listened-to scores. New action figures supporting Yu-Gi-Oh!™ will debut based on the successful cartoon and card game from Japan. Masters of the Universe®, including He-Man...

  • Page 8
    ... processes. In 2002, advanced leadership and global leadership classes will be added to our training curriculum, and a new innovation platform will be offered to product designers to further hone their creativity. E-learning initiatives will be expanded, allowing more employees the power to develop...

  • Page 9
    ... El Segundo, California 90245-5012 (Address of principal executive offices) (310) 252-2000 (Registrant's telephone number) Securities registered pursuant to Section 12(b) of the Act: Title of each class Name of each exchange on which registered Common Stock, $1.00 par value New York Stock...

  • Page 10
    ... customer service levels by enhancing supply chain performance. Mattel also initiated significant employee development measures, including performance tracking, leadership classes, global employee surveys and follow-up action plans. In addition, in 2001, Mattel added two new independent directors...

  • Page 11
    ...Blue's Clues௡ Music Studio, Rescue Heroes௣ new Power Force figures, Pixter௣ PRO digital creative system, Lightning PAC௣ battery-powered kid scooter and a preschool Grow With Me௣ Remote Control Raceway. International Segment Generally, products marketed by the International segment are the...

  • Page 12
    ...Management's Discussion and Analysis of Financial Condition and Results of Operations-Factors That May Affect Future Results.'' Mattel bases its production schedules for toy products on customer orders, taking into account historical trends, results of market research and current market information...

  • Page 13
    ...paid a royalty on the net selling price of products licensed to Mattel. These independent toy designers may also create different products for other toy companies. With respect to new product introductions, Mattel's strategy is to begin production on a limited basis until a product's initial success...

  • Page 14
    ... utilize the trademark, character, or inventions of the licensor in product lines that Mattel manufactures. A number of these licenses relate to product lines that are significant to Mattel's business and operations. An important licensor is Warner Bros., which licenses the Harry Potter௣ book and...

  • Page 15
    ...379 million. See Item 8 ''Financial Statements and Supplementary Data-Note 7 to the Consolidated Financial Statements.'' Mattel ships products in accordance with delivery schedules specified by its customers, which usually request delivery within three to six months. In the toy industry, orders are...

  • Page 16
    ... the recall and repurchase or repair of products that do not meet their respective standards. In 2001, Fisher-Price announced plans to exit the car seat business. Mattel maintains a quality control program to ensure compliance with various US federal, state and applicable foreign product safety...

  • Page 17
    .../Entertainment Executive Vice President, Worldwide Operations Chief Information Officer Chief Financial Officer President, Girls/Barbie President, Fisher-Price Brands Senior Vice President, Human Resources Senior Vice President and Corporate Controller Senior Vice President, General Counsel and...

  • Page 18
    ... to a $42 million mortgage, and an adjacent 55,000 square foot office building. Mattel also leases buildings in El Segundo consisting of approximately 327,000 square feet. All segments use these facilities. Mattel's Fisher-Price subsidiary owns its headquarters facilities in East Aurora, New York...

  • Page 19
    ... segment. Mattel's principal manufacturing facilities are located in China, Indonesia, Italy, Malaysia, Mexico and Thailand. See Item 1 ''Business-Manufacturing.'' With respect to leases that are scheduled to expire during the next twelve months, Mattel may negotiate new lease agreements, renew...

  • Page 20
    ... Registrant's Common Equity and Related Stockholder Matters For information regarding the markets in which Mattel's common stock, par value $1.00 per share, is traded, see the cover page hereof. For information regarding the high and low closing prices of the common stock for the last two calendar...

  • Page 21
    ... of the merger, accounted for as a pooling of interests, with The Learning Company, Inc. (''Learning Company'') in May 1999. As more fully described in Note 13 to the Consolidated Financial Statements, the Consumer Software segment, which was comprised primarily of Learning Company, was reported as...

  • Page 22
    ..., develop and introduce new products, and achieve market acceptance of such products. If Mattel does not successfully meet these challenges in a timely and cost-effective manner, demand for its products will decrease and Mattel's results of operations will suffer. Seasonality, Managing Production...

  • Page 23
    ... losses for bad debt, or increase costs associated with manufacturing and distributing these products. Customer Concentration A small number of Mattel's customers account for a large share of net sales. For the year ended December 31, 2001, Mattel's three largest customers, Wal-Mart, Toys 'R Us and...

  • Page 24
    ...and Promotion Mattel's products are marketed worldwide through a diverse spectrum of advertising and promotional programs. Mattel's ability to sell products is dependent in part upon the success of such programs. If Mattel does not successfully market its products or if media or other advertising or...

  • Page 25
    ... to the current management structure. See ''Business Segment Results.'' Mattel designs, manufactures, and markets a broad variety of toy products on a worldwide basis through both sales to retailers (i.e., ''customers'') and direct to consumers. Mattel's business is dependent in great part on its...

  • Page 26
    ...௡, Hot Wheels௡ Electric Racing, and Tyco௡ Radio Control vehicles and playsets (collectively ''Wheels''), and Disney, Nickelodeon௡, Harry Potter௣, Max Steel௣, and games and puzzles (collectively ''Entertainment'') Infant & Preschool-including Fisher-Price௡, Power Wheels௡, Sesame...

  • Page 27
    ...at, while international sales decreased 4%, or 3% in local currency. Growth in sales of core Fisher-Price௡ and Power Wheels௡ products was offset by a decline in licensed character brands. In 2001, Mattel executed a worldwide license agreement to sell Barney௣ products, the full impact of which...

  • Page 28
    ... related to exiting certain product lines. Excluding these financial realignment charges, advertising and promotion expenses, as a percentage of net sales, declined from 14.6% in 2000 to 13.8% in 2001, largely due to lower prices charged by media companies on a cost per rating point basis. Mattel...

  • Page 29
    ... the unfavorable foreign exchange impact, sales grew by 13% due to double digit growth in Barbie௡, Polly Pocket!௡, core Fisher-Price௡ and Hot Wheels௡ products combined with the expansion of Diva Starz௣ and Harry Potter௣ products. Mattel also recorded strong market share gains outside the...

  • Page 30
    ... offset by higher selling and administrative expenses to support certain new product lines. All the US segments benefited from lower costs per rating point for media purchases. The International segment operating profit increased 26%, largely due to increased sales volume and improved margins...

  • Page 31
    ... currency. Worldwide sales of core Fisher-Price௡ products grew 26%, up 37% in the US and ï¬,at in international markets. Excluding the unfavorable exchange impact, core Fisher-Price௡ products were up 11% in international markets. Declines in worldwide sales for Sesame Street௡, Disney preschool...

  • Page 32
    ...of profitability; Eliminate product lines that do not meet required levels of profitability; Improve supply chain performance and economics; Eliminate positions at US-based headquarters locations in El Segundo, Fisher-Price and Pleasant Company through a combination of layoffs, elimination of open...

  • Page 33
    ... positions at headquarters locations in El Segundo, Fisher-Price and Pleasant Company, closure of certain international offices, and consolidation of facilities. During 2001, Mattel recorded a $15.7 million pre-tax restructuring charge as part of the financial realignment plan, largely related to...

  • Page 34
    ... to support new products and construction of new manufacturing facilities. In 2001, Mattel acquired Pictionary௡ for approximately $29 million, of which approximately $21 million was paid in 2001 and the remaining $8 million will be paid over the next 3 years. Financing Activities In 2001, as part...

  • Page 35
    ... and 2000, Mattel did not repurchase treasury stock. Seasonal Financing Mattel expects to finance its seasonal working capital requirements for the coming year by using existing and internally generated cash, issuing commercial paper, selling certain trade receivables and using various short-term...

  • Page 36
    ..., Mattel plans to continue to build inventory levels for preschool products in conjunction with executing the North American Strategy. Mattel intends to continue its plan to move towards more optimal accounts receivable and inventory levels through its focus on improving its supply chain performance...

  • Page 37
    ... be recorded as part of the discontinued operations. In December 2000 and January 2001, Mattel entered into worldwide, multi-year licensing agreements with Vivendi Universal Publishing and THQ, respectively, for the development and publishing of gaming, educational and productivity software based on...

  • Page 38
    ... action. Mattel believes that the actions are without merit and intends to defend them vigorously. Environmental Fisher-Price Fisher-Price has executed a consent order with the State of New York to implement a groundwater remediation system at one of its former manufacturing plants. The execution...

  • Page 39
    ... December 31, 2001. Beaverton, Oregon Mattel previously operated a manufacturing facility on a leased property in Beaverton, Oregon that was acquired as part of the March 1997 merger with Tyco. In March 1998, samples of groundwater used by the facility for process water and drinking water disclosed...

  • Page 40
    .... Changes in public and consumer preferences and demand for product or changes in the buying patterns and inventory management of customers, could adversely impact the inventory valuation. Impairment of Long-Lived Assets Long-lived assets, identifiable intangibles and goodwill related to those...

  • Page 41
    ... results of operations. Based on preliminary results of its valuation study, Mattel anticipates that the total impairment to be recognized as a result of the transitional goodwill impairment test will be approximately $400 million pretax, relating entirely to the Pleasant Company reporting unit. In...

  • Page 42
    ..., 2001, Mattel translated its Argentina peso denominated financial statements using the free ï¬,oating market exchange rate as of January 11, 2002, of 1.6 pesos to the dollar. This translation did not have a significant impact on Mattel's results of operations in 2001 and management believes that...

  • Page 43
    ... British pounds sterling for the purchase of Euros. As of December 31, 2001, these contracts had a notional amount of $79.5 million and a fair value of $80.7 million. Had Mattel not entered into hedges to limit the effect of exchange rate ï¬,uctuations on results of operations and cash ï¬,ows, pre...

  • Page 44
    ..., in all material respects, the information set forth therein when read in conjunction with the related consolidated financial statements. These financial statements and financial statement schedule are the responsibility of Mattel's management; our responsibility is to express an opinion on...

  • Page 45
    ...receivable, less allowances of $55.9 million at December 31, 2001 and $24.6 million at December 31, 2000 ...Inventories ...Prepaid expenses and other current assets ...Property, Plant and Equipment Land ...Buildings ...Machinery and equipment . . Capitalized leases ...Leasehold improvements ...$ 616...

  • Page 46
    ... $1.00 par value, 1.0 billion shares authorized; 436.3 million shares and 435.6 million shares issued in 2001 and 2000, respectively ...Additional paid-in capital ...Treasury stock at cost; 5.4 million shares and 9.6 million shares in 2001 and 2000, respectively ...Retained earnings (accumulated...

  • Page 47
    ... stock dividend requirements ...Net Income (Loss) Applicable to Common Shares ...Basic Income (Loss) Per Common Share Income from continuing operations ...Loss from discontinued operations ...Cumulative effect of change in accounting principles ...Net income (loss) ...Weighted average number...

  • Page 48
    ...other current assets ...Accounts payable, accrued liabilities and income taxes payable ...Deferred income taxes ...Other, net ...Cash Flows From Investing Activities: Purchases of tools, dies and molds ...Purchases of other property, plant and equipment ...Payment for businesses acquired ...Proceeds...

  • Page 49
    ... issued for acquisitions ...Conversion of exchangeable shares ...Shares issued under employee stock purchase plan ...Tax adjustment related to 1987 quasi-reorganization ...Exercise of warrants ...Nonvested stock activity ...Dividends declared on common stock ...Dividends declared on preferred stock...

  • Page 50
    ...stock warrant ...Shares issued for Learning Company treasury stock ...Dividends declared on common stock ...Balance, December 31, 2000 ...Comprehensive income: Net income ...Unrealized holding losses ...Transition adjustment related to FAS 133 ...Net gain on derivative instruments ...Minimum pension...

  • Page 51
    ... of the merger, accounted for as a pooling of interests, with The Learning Company, Inc. (''Learning Company'') in May 1999. As more fully described in Note 13, the Consumer Software segment, which was comprised primarily of Learning Company, was reported as a discontinued operation effective March...

  • Page 52
    ... goodwill impairment test will be approximately $400 million pre-tax, relating entirely to the Pleasant Company reporting unit. Revenue Recognition Revenue from the sale of toy products is recognized upon shipment or upon receipt of products by the customer, depending on customer terms. Accruals...

  • Page 53
    ... of operations for nonqualified stock options granted under Mattel's plans as such options are granted at not less than the quoted market price of Mattel's common stock on the date of grant. Income Taxes Mattel accounts for certain income and expense items differently for financial reporting and...

  • Page 54
    ... the change in fair value of the derivative in its results of operations currently. Due to the short-term nature of the contracts involved, Mattel does not use hedge accounting for its fair value hedges for intercompany loans and management fees. Changes in the fair value of these derivatives are...

  • Page 55
    ... are capitalized as part of the carrying amount of the long-lived asset. All provisions of this statement will be effective at the beginning of fiscal 2003. Mattel is in the process of determining the impact of this standard on its financial results when effective. In October 2001, the FASB issued...

  • Page 56
    ... tax on the unremitted foreign earnings, if repatriated, would be offset in whole or in part by foreign tax credits. As of December 31, 2001, Mattel has US net operating loss carryforwards totaling $889.6 million and credit carryforwards of $139.1 million for federal income tax purposes. The net...

  • Page 57
    ... is currently examining Mattel's federal income tax returns for fiscal years 1995 through 1997. Note 3-Employee Benefits Mattel and certain of its subsidiaries have retirement plans covering substantially all employees of these companies. Expense related to these plans totaled $23.7 million, $31...

  • Page 58
    ... 2000 was $36.8 million and $69.0 million, respectively. Mattel's contribution to these plans and the related administrative expense were not significant to the results of operations during any year. Mattel has purchased group trust-owned life insurance contracts designed to assist in funding these...

  • Page 59
    ...unfunded postretirement health insurance plan covering certain eligible domestic employees hired prior to January 1, 1993. Details of the expense for the Fisher-Price plan recognized in the consolidated statements of operations are as follows (in thousands): 2001 For the Year 2000 1999 Service cost...

  • Page 60
    ... to the recruitment and retention of senior executives. For 1999, $22.0 million was charged to operating expense related to a special award. This special broad-based employee award was approved by Mattel's board of directors and was designed to provide a competitive compensation level to retain...

  • Page 61
    ... is used to support letters of credit. Mattel expects to extend these credit lines throughout 2002 and believes available amounts will be adequate to meet its seasonal financing requirements. Mattel also enters into agreements with banks of its foreign subsidiaries for non-recourse sales of certain...

  • Page 62
    ...,009 Total ...Note 5-Stockholders' Equity Preference Stock and Preference Share Purchase Rights $41,686 Mattel is authorized to issue up to 20.0 million shares of $0.01 par value preference stock, of which none is currently outstanding. There are 2.0 million shares of $0.01 par value preference...

  • Page 63
    ... converted will be redeemed at the current market price of Mattel's common stock multiplied by 1.2. The redemption price will be paid in the form of Mattel's common stock, plus cash equal to any unpaid dividends. The board of directors of Softkey Software Products Inc. may extend the automatic...

  • Page 64
    ... Mattel's stock option plans. The number of shares to be repurchased is authorized on an annual basis by the board of directors based upon anticipated reissuance needs. No shares were repurchased in 2001 and 2000 under this plan. During 1999, Mattel repurchased 4.0 million shares. Dividends As part...

  • Page 65
    ... agreements. The aggregate number of shares of common stock available for grant under the 1997, 1996 and 1999 plans cannot exceed 24.0 million, 50.0 million and 12.8 million shares, respectively. The following is a summary of stock option information and weighted average exercise prices for Mattel...

  • Page 66
    ... as a result of the 1999 merger. The following is a summary of stock option information and weighted average exercise prices for Learning Company's stock option plans during the year (options in thousands): 2001 Number Price 2000 Number Price 1999 Number Price Outstanding at January 1 ...Options...

  • Page 67
    ... operations in 1999. Employee Stock Purchase Plan In December 1997, Learning Company stockholders approved the 1997 Employee Stock Purchase Plan, which provided certain eligible employees with the opportunity to purchase shares of common stock at a price of 85% of the price listed on the New York...

  • Page 68
    ... arrangements to obtain and protect Mattel's right to create and market certain products, and for future purchases of goods and services to ensure availability and timely delivery. Such arrangements include royalty payments pursuant to licensing agreements and commitments for future inventory...

  • Page 69
    ...corporate assets, and grossly mismanaged Mattel in connection with Mattel's acquisition of Learning Company and its approval of severance packages to certain former executives. These derivative actions have been filed in the Court of Chancery in Delaware, in Los Angeles Superior Court in California...

  • Page 70
    ... action. Mattel believes that the actions are without merit and intends to defend them vigorously. Environmental Fisher-Price Fisher-Price has executed a consent order with the State of New York to implement a groundwater remediation system at one of its former manufacturing plants. The execution...

  • Page 71
    ... entered into a derivative transaction designed to limit the impact of market ï¬,uctuations in the fair value of the stock on Mattel's results of operations. During the first quarter of 2001, Mattel recorded a pre-tax loss of $5.5 million in other expense, net related to the decrease in fair value...

  • Page 72
    ... substantial portion of trade receivables being collected during the latter half of the year. Mattel's three largest customers accounted for the following percentage of consolidated net sales and net accounts receivable: 2001 2000 1999 Worldwide sales for the year ended ...Accounts receivable as of...

  • Page 73
    ... headquarters locations in El Segundo, Fisher-Price and Pleasant Company through a combination of layoffs, elimination of open requisitions, attrition and retirements; and Close and consolidate certain international offices. • In April 2001, as part of the financial realignment plan, Mattel...

  • Page 74
    ... Hot Wheels௡ Electric Racing and Tyco௡ Radio Control (collectively ''Wheels''), and Disney, Nickelodeon௡, Harry Potter௣, Max Steel௣ and games and puzzles (collectively ''Entertainment'') products. The US Infant & Preschool segment includes Fisher-Price௡, Disney preschool and plush, Power...

  • Page 75
    ... year ended December 31, 1999 corporate and other includes $281.1 million related to the 1999 restructuring plan and other charges (see Note 9). (b) Asset information was not maintained by individual segment in 1999 and 2000. Mattel sells a broad variety of toy products, which are grouped into three...

  • Page 76
    ... common share: Income (loss) from continuing operations ...Cumulative effect of change in accounting principles . . Net income (loss) ...Weighted average number of common and common equivalent shares ...Dividends declared per common share ...Common stock market price: High ...Low ...68 $731,948 327...

  • Page 77
    ...) per common share: Income (loss) from continuing operations ...Loss from discontinued operations (a) ...Net income (loss) ...Weighted average number of common and common equivalent shares ...Dividends declared per common share ...Common stock market price: High ...Low ... $693,261 $817,797 $1,583...

  • Page 78
    ... Deferred income taxes ...Other ...Short-term borrowings include the following: Notes payable ...Commercial paper ...Accrued liabilities include the following: Advertising and promotion ...Receivable collections due to banks . . Royalties ...Restructuring and other charges ...Other ... $ 34,922 452...

  • Page 79
    ...of Learning Company's Canadian subsidiary, Softkey Software Products Inc., remained outstanding, but upon consummation of the merger became exchangeable for 1.2 shares of Mattel common stock. This transaction was accounted for as a pooling of interests. On March 31, 2000, Mattel's board of directors...

  • Page 80
    Summary financial information for the discontinued operations is as follows (in millions): For the Year 2000 1999 Net sales ...Loss before income ...part of the loss from discontinued operations for 2000. Transaction costs of approximately $24 million related to the disposal of the Consumer Software...

  • Page 81
    PART III Item 10. Directors and Executive Officers of the Registrant Information required under this Item relating to members of Mattel's board of directors is incorporated by reference herein from its 2002 Notice of Annual Meeting of Stockholders and Proxy Statement to be filed with the ...

  • Page 82
    ... 40 41-42 43-72 Agreement and Plan of Merger, dated as of December 13, 1998, between Mattel and The Learning Company, Inc. (incorporated by reference to Exhibit 2.1 of Mattel's Current Report on Form 8-K dated December 15, 1998) Sale and Purchase Agreement between Mattel and Alec E. Gores, Trustee...

  • Page 83
    ...) Support Agreement Amending Agreement dated as of May 12, 1999 between Mattel, Learning Company and Softkey Software Products Inc. (incorporated by reference to Exhibit 99.4 of Mattel's Quarterly Report on Form 10-Q for the quarter ended March 31, 1999) Warrant to Purchase Shares of Common Stock of...

  • Page 84
    ... Agreement between Mattel and its directors and certain of its executive officers (incorporated by reference to Exhibit 10.9 to Mattel's Annual Report on Form 10-K for the year ended December 31, 2000) Executive Employment Agreement dated October 18, 2000 between Mattel and Robert A. Eckert...

  • Page 85
    ... 10-K for the year ended December 31, 2000) Amendment to Employment Agreement dated March 6, 2002 between Mattel and Kevin M. Farr Mattel, Inc. Management Incentive Plan (incorporated by reference to Exhibit 10.37 to Mattel's Annual Report on Form 10-K for the year ended December 31, 2000) Amendment...

  • Page 86
    ... 1999) Pleasant Company Retirement Savings Plan and Trust Agreement, dated July 1, 1995 (incorporated by reference to Exhibit 10.19 to Mattel's Annual Report on Form 10-K for the year ended December 31, 1998) Mattel, Inc. Amended and Restated 1990 Stock Option Plan Amendment No. 1 to the Mattel, Inc...

  • Page 87
    ... No. 4 to the Mattel, Inc. 1997 Premium Price Stock Option Plan (incorporated by reference to Exhibit 10.75 to Mattel's Annual Report on Form 10-K for the year ended December 31, 2000) Form of Option and TLSAR Agreement under the Mattel, Inc. 1997 Premium Price Stock Option Plan (25% Premium Grant...

  • Page 88
    ... of Earnings to Combined Fixed Charges and Preferred Stock Dividends Subsidiaries of the Registrant Consent of PricewaterhouseCoopers LLP Power of Attorney (on page 81 of Form 10-K) Filed herewith (b) Reports on Form 8-K Mattel filed no Current Reports on Form 8-K during the quarterly period ended...

  • Page 89
    ...: As of March 28, 2002 POWER OF ATTORNEY We, the undersigned directors and officers of Mattel, Inc. do hereby severally constitute and appoint Robert A. Eckert, Robert Normile, Christopher O'Brien, and John L. Vogelstein, and each of them, our true and lawful attorneys and agents, to do any and all...

  • Page 90
    Signature Title Date /s/ ANDREA L. RICH Andrea L. Rich /s/ WILLIAM D. ROLLNICK William D. Rollnick /s/ CHRISTOPHER A. SINCLAIR ... Director March 28, 2002 Director March 28, 2002 Director March 28, 2002 Director March 28, 2002 Director March 28, 2002 Director March 28, 2002 Director ...

  • Page 91
    SCHEDULE II MATTEL, INC. AND SUBSIDIARIES VALUATION AND QUALIFYING ACCOUNTS AND ALLOWANCES (In thousands) Balance at Beginning of Year Additions Charged to Operations Net Deductions Balance at End of Year Allowance for Doubtful Accounts...in bad debt expense charged to operations in...related inventory...

  • Page 92
    .... Consolidated financial information for 1997 has been restated retroactively for the effects of the March 1997 merger with Tyco Toys, Inc. ("Tyco"), accounted for as a pooling of interests. (b) Per share data reflect the retroactive effect of the mergers with Learning Company and Tyco in 1999 and...

  • Page 93
    ... operating results of the Consumer Software segment. Consolidated financial information for 1997 has been restated retroactively for the effects of the March 1997 merger with Tyco, accounted for as a pooling of interests. (b) Per share data reflect the retroactive effect of the mergers with Learning...

  • Page 94
    ...operations of Learning Company have not been included in this calculation since the Consumer Software segment was reported as a discontinued operation effective March 31, 2000. (b) The ratio of earnings to fixed charges for 1997 has been restated for the effects of the March 1997 merger of Tyco Toys...

  • Page 95
    ...since the Consumer Software segment was reported as a discontinued operation effective March 31, 2000. (b) The ratio of earnings to combined fixed charges and preferred stock dividends for 1997 has been restated for the effects of the March 1997 merger of Tyco into Mattel, which was accounted for as...

  • Page 96
    ... such tests and related procedures as they deem necessary to arrive at an opinion on the fairness of the financial statements. Robert A. Eckert Chairman of the Board and Chief Executive Officer Kevin M. Farr Chief Financial Officer Douglas E. Kerner Senior Vice President and Corporate Controller

  • Page 97
    ... (6) Chairman and Chief Executive Officer, Friedman Fleischer & Lowe, LLC Douglas E. Kerner Ralph V. Whitworth (2) (6) Managing Member, Relational Investors LLC Senior Vice President and Corporate Controller Ronald M. Loeb (1) (3) (6) Senior Vice President and General Counsel, Williams-Sonoma, Inc...

  • Page 98
    ... Inquiries relating to stockholder accounting records, stock transfer, dividends (including dividend reinvestment) and direct stock purchase for Mattel, Inc. Common Stock should be directed to: EquiServe Trust Company, N.A. P.O. Box 43010 Providence, Rhode Island 02940-3010 Telephone numbers: 888...

  • Page 99
    END OF DOCUMENT ® Mattel, Inc., 333 Continental Boulevard, El Segundo, California 90245