Mattel 2002 Annual Report Download - page 66

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Prior to implementing SFAS No. 142, Mattel reviewed all goodwill assets for impairment under the
methodology of SFAS No. 121, Accounting for the Impairment of Long-Lived Assets and for Long-Lived Assets
to Be Disposed Of. The undiscounted cash flows associated with all goodwill assets were in excess of the book
value of the related goodwill assets, including Pleasant Company goodwill. Therefore, no goodwill assets,
including Pleasant Company’s goodwill, were considered impaired under SFAS No. 121.
The following table provides a reconciliation of the net income (loss) reported for the years ended 2001 and
2000, adjusted to exclude amortization of goodwill that is no longer required under SFAS No. 142 (in thousands,
except per share amounts):
For the Year
2001 2000
Earnings
Per Share
Earnings
Per Share
Amount Basic Diluted Amount Basic Diluted
Reported net income (loss) ..................... $298,919 $0.69 $0.68 $(430,969) $(1.01) $(1.01)
Addback: goodwill amortization, net of tax ......... 34,668 0.08 0.08 35,158 0.08 0.08
Adjusted net income (loss) ...................... $333,587 $0.77 $0.76 $(395,811) $(0.93) $(0.93)
Note 3—Income Taxes
Consolidated income from continuing operations before income taxes consists of the following (in
thousands):
For the Year
2002 2001 2000
US operations .................................................. $ 89,461 $ 29,431 $(140,747)
Foreign operations .............................................. 532,036 400,579 366,171
$621,497 $430,010 $ 225,424
The provision for current and deferred income taxes consists of the following (in thousands):
For the Year
2002 2001 2000
Current
Federal ..................................................... $ 27,762 $ 28,748 $ 2,860
State ....................................................... 8,300 4,700 3,500
Foreign .................................................... 109,814 75,786 52,900
145,876 109,234 59,260
Deferred
Federal ..................................................... 42,949 787 (9,890)
State ....................................................... (800) 5,500 (13,400)
Foreign .................................................... (21,570) 3,569 19,277
20,579 9,856 (4,013)
Total provision for income taxes .................................... $166,455 $119,090 $ 55,247
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