Mattel 2002 Annual Report Download - page 75

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The fair value of both of these warrants is amortized as a component of royalty expense when the related
properties are introduced over the period the related revenues are recognized. During 2002, 2001 and 2000,
$3.3 million, $8.0 million and $10.4 million, respectively, was recognized in the results of operations related to
these warrants.
Common Stock Repurchase Plan
Mattel’s common stock repurchase plan, initiated in May 1990, provides for the repurchase of common
shares to fund 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 2002,
2001 and 2000 under this plan.
Dividends
As part of its financial realignment plan, Mattel announced during the third quarter of 2000 a change in its
dividend policy consisting of a reduction in the annual cash dividend from $0.36 per share to $0.05 per share. In
2002 and 2001, a $0.05 per share dividend was declared by the board of directors in November and paid in
December. During 2000, dividends totaling $0.27 per share were declared and paid. The payment of dividends on
common stock is at the discretion of Mattel’s board of directors and is subject to customary limitations.
Comprehensive Income (Loss)
The changes in the components of other comprehensive income (loss), net of tax, are as follows (in
thousands):
For the Year Ended
2002 2001 2000
Income from continuing operations ................................. $455,042 $310,920 $ 170,177
Gain (loss) from discontinued operations ............................ 27,253 — (601,146)
Cumulative effect of change in accounting principles .................. (252,194) (12,001) —
Netincome(loss)............................................... 230,101 298,919 (430,969)
Currency translation adjustments .................................. 13,017 (14,596) (50,485)
Minimum pension liability adjustments ............................. (48,021) (2,518) (1,782)
Net unrealized gain (loss) on derivative instruments:
Unrealized holding gains (losses) .............................. (42,714) 13,997 —
Less: reclassification adjustment for realized (gains) losses included in
netincome(loss) ......................................... 16,560 (10,459) —
(26,154) 3,538 —
Net unrealized gain (loss) on securities:
Unrealized holding gains (losses) .............................. 28,309 (186) (25,118)
Less: reclassification adjustment for realized losses included in net
income(loss) ............................................ — 12,001 10,995
28,309 11,815 (14,123)
Comprehensiveincome(loss) ..................................... $197,252 $297,158 $(497,359)
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