Mattel 2002 Annual Report Download - page 86

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Effective January 1, 2002, Mattel ceased amortization of its goodwill in accordance with SFAS No. 142. To
maintain a consistent basis for measurement of segment performance and to facilitate a comparison of current
year segment results to that of the prior year, management revised its previously reported segment information to
correspond to the earnings measurements by which management evaluated the business segments during 2002.
Accordingly, segment income for 2001 and 2000 has been restated to exclude goodwill amortization of
$46.1 million and $46.6 million, respectively.
For the Year
2002 2001 2000
(In thousands)
Revenues
Domestic:
US Girls ............................................... $1,380,208 $1,402,549 $1,457,444
US Boys-Entertainment ................................... 766,073 768,005 753,149
US Infant & Preschool ................................... 1,282,221 1,234,169 1,232,992
Other ................................................. 16,550 8,878 6,484
Total Domestic ............................................. 3,445,052 3,413,601 3,450,069
International ............................................... 1,897,427 1,690,513 1,531,590
5,342,479 5,104,114 4,981,659
Sales adjustments ........................................... (457,139) (416,190) (416,170)
Net sales from continuing operations ............................ $4,885,340 $4,687,924 $4,565,489
Segment Income
Domestic:
US Girls ............................................... $ 389,788 $ 372,491 $ 378,441
US Boys-Entertainment ................................... 110,004 82,132 59,603
US Infant & Preschool ................................... 187,009 157,030 153,123
Total Domestic ............................................. 686,801 611,653 591,167
International ............................................... 304,989 198,242 153,639
991,790 809,895 744,806
Goodwill amortization ........................................ — 46,121 46,561
Corporate and other expense (a) ................................ 258,249 184,454 327,621
Operating income ........................................... 733,541 579,320 370,624
Interest expense ............................................. 113,897 155,132 152,979
Interest (income) ............................................ (17,724) (15,481) (11,005)
Non-operating expense, net .................................... 15,871 9,659 3,226
Income from continuing operations before income taxes ............. $ 621,497 $ 430,010 $ 225,424
(a) Corporate and other increased in 2002 compared to 2001, largely due to higher incentive compensation
expense and a $25.4 million charge resulting from the settlement of shareholder litigation related to the
1999 acquisition of Learning Company. Corporate and other decreased in 2001 compared to 2000,
primarily due to lower financial realignment plan charges in 2001 and a $53.1 million charge in 2000
related to the departure of certain senior executives.
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