Mattel 2001 Annual Report Download - page 74

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domestic and international. The domestic segment is further divided into US Girls, US Boys-Entertainment, and
US Infant & Preschool. The US Girls segment includes brands such as Barbie, Polly Pocket!, Diva Starz,
What’s Her Face!and American Girl. The US Boys-Entertainment segment includes Hot Wheels,
Matchbox, Hot WheelsElectric Racing and TycoRadio Control (collectively ‘‘Wheels’’), and Disney,
Nickelodeon, Harry Potter, Max Steeland games and puzzles (collectively ‘‘Entertainment’’) products.
The US Infant & Preschool segment includes Fisher-Price, Disney preschool and plush, Power Wheels,
Sesame Streetand other preschool products. The International segment sells products in all toy categories.
Segment revenues do not include sales adjustments such as trade discounts and other allowances. However,
such adjustments are included in the determination of segment income from operations. Segment income from
operations represents income from continuing operations before interest expense and income taxes, while
consolidated income from operations represents income from continuing operations before income taxes as
reported in the consolidated statements of operations. The segment assets are comprised of accounts receivable
and inventories, net of applicable reserves and allowances.
Certain information presented in the tables below has been restated to conform to the current management
structure as of January 2001. Specifically, the results and assets of Pleasant Company, which had been reported
as part of Other, are now being reported as part of US Girls, which is consistent with management
responsibility for this business. Additionally, Mattel’s toy manufacturing unit is now being managed as a cost
center instead of as a profit center; therefore, toy manufacturing is no longer being reported as a separate
segment. Lastly, certain overhead costs incurred at the headquarters’ level in El Segundo, including facilities,
information technology, and other administration support costs, are now being allocated to the US Girls and US
Boys-Entertainment segments, to more accurately reflect the costs associated with operating these businesses.
These types of overhead costs were already being reported as part of the US Infant & Preschool and
International segments since these businesses maintain their own headquarters locations.
For the Year
2001 2000 1999
(In thousands)
Revenues
Domestic:
US Girls .......................................... $1,402,549 $1,457,444 $1,325,273
US Boys-Entertainment ............................... 768,005 753,149 786,578
US Infant & Preschool ................................ 1,234,169 1,232,992 1,185,484
Other ............................................. 8,878 6,484 28,187
Total Domestic ......................................... 3,413,601 3,450,069 3,325,522
International ........................................... 1,690,513 1,531,590 1,571,149
5,104,114 4,981,659 4,896,671
Sales adjustments ....................................... (300,052) (311,717) (301,181)
Net sales from continuing operations ......................... $4,804,062 $4,669,942 $4,595,490
Operating Profit
Domestic:
US Girls .......................................... $ 355,319 $ 361,670 $ 331,187
US Boys-Entertainment ............................... 78,644 56,627 76,773
US Infant & Preschool ................................ 141,714 139,219 130,409
Total Domestic ......................................... 575,677 557,516 538,369
International ........................................... 184,351 146,776 182,043
760,028 704,292 720,412
Interest expense ......................................... (155,132) (152,979) (131,609)
Corporate and other (a) ................................... (174,886) (325,889) (418,639)
Income from continuing operations before income taxes ........... $ 430,010 $ 225,424 $ 170,164
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