Mattel 2002 Annual Report Download - page 85

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$43.3 million has been incurred related to the termination of 2,350 employees, of which 1,370 were terminated
during 2002. Of the 2,350 employee terminations, approximately 1,300 related to the North American Strategy.
The components of the restructuring charges are as follows (in millions):
Severance
and Other
Compensation
Asset
Writedowns
Lease
Termination
Costs Other
Total
Restructuring
Charge
2000 charges .............................. $18.5 $2.2 $1.0 $1.2 $22.9
Amounts incurred ...................... (2.8) (2.2) — (0.4) (5.4)
Balance at Dec. 31, 2000 .................... 15.7 — 1.0 0.8 17.5
2001 charges .......................... 9.3 0.7 1.5 4.2 15.7
Amounts incurred ...................... (16.2) (0.7) (0.6) (4.0) (21.5)
Balance at Dec. 31, 2001 .................... 8.8 — 1.9 1.0 11.7
2002 charges .......................... 19.4 — 1.2 4.0 24.6
Amounts incurred ...................... (24.3) — (1.8) (4.4) (30.5)
Balance at Dec. 31, 2002 .................... $ 3.9 $ — $1.3 $0.6 $ 5.8
In February 2003, as part of its financial realignment plan, Mattel announced the consolidation of its US
Girls and US Boys-Entertainment segments into one segment, renamed Mattel Brands. Additionally, Pleasant
Company, which was previously part of the US Girls segment, is now a separate segment for management
reporting purposes in 2003. The creation of the Mattel Brands segment will result in the streamlining and
consolidating of redundant activities that supported the US Girls and US Boys-Entertainment businesses. Costs
associated with this reorganization include elimination of approximately 5% of executive level positions,
including the position of president of the Girls division.
Note 11—Segment Information
The tables below present information about revenues, income and assets by segment. Mattel’s reportable
segments are separately managed business units and are divided on a geographic basis between domestic and
international. The domestic segment is further divided into US Girls, US Boys-Entertainment, and US Infant &
Preschool. The US Girls segment includes products such as Barbie®, Polly Pocket!®, Diva Starz™, What’s Her
Face!™, ello™, and American Girl®. The US Boys-Entertainment segment includes Hot Wheels®, Matchbox®
and Tyco®Radio Control vehicles and playsets (collectively “Wheels”), and Nickelodeon®, Harry Potter™,
Yu-Gi-Oh!™, He-Man®and Masters of the Universe®, and games and puzzles (collectively “Entertainment”)
products. The US Infant & Preschool segment includes Fisher-Price®, Power Wheels®, Sesame Street®, Disney
preschool and plush, Winnie the Pooh, Blue’s Clues™, Rescue Heroes™, Barney™, Dora the Explorer™,and
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. Such adjustments are, however, included
in the determination of segment income from operations. Segment income from operations represents operating
income from continuing operations, while consolidated income from operations represents income from
continuing operations before income taxes as reported in the consolidated statements of operations. The
corporate and other category includes costs not allocated to individual segments, including charges related to the
financial realignment plan, incentive compensation and corporate headquarters functions managed on a
worldwide basis. Segment assets are comprised of accounts receivable and inventories, net of applicable reserves
and allowances.
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