Mattel 2003 Annual Report Download - page 92

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The tables below present information about revenues, income and assets by segment. 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.
For the Year
2003 2002 2001
(In thousands)
Revenues
Domestic:
Mattel Brands US ....................................... $1,594,144 $1,790,006 $1,817,272
Fisher-Price Brands US ................................... 1,265,224 1,282,221 1,234,169
American Girl Brands .................................... 344,446 350,178 340,843
Total Domestic ............................................. 3,203,814 3,422,405 3,392,284
International ............................................... 2,175,709 1,890,939 1,680,291
Gross sales ................................................. 5,379,523 5,313,344 5,072,575
Sales adjustments ........................................... (419,423) (428,004) (384,651)
Net sales from continuing operations ............................ $4,960,100 $4,885,340 $4,687,924
Segment Income
Domestic:
Mattel Brands US ....................................... $ 388,666 $ 445,982 $ 403,933
Fisher-Price Brands US ................................... 180,133 187,009 157,030
American Girl Brands .................................... 61,968 58,106 49,907
Total Domestic ............................................. 630,767 691,097 610,870
International ............................................... 364,963 304,989 198,242
995,730 996,086 809,112
Goodwill amortization ........................................ — — 46,121
Corporate and other expense (a) ................................ 210,020 262,545 183,671
Operating income ........................................... 785,710 733,541 579,320
Interest expense ............................................. 80,577 113,897 155,132
Interest (income) ............................................ (18,966) (17,724) (15,481)
Other non-operating (income) expense, net ....................... (16,755) 15,871 9,659
Income from continuing operations before income taxes ............. $ 740,854 $ 621,497 $ 430,010
(a) Corporate and other expense is higher in 2002 compared to 2003 and 2001, largely due to higher incentive
compensation expense and a $25.4 million charge in 2002 resulting from the settlement of shareholder
litigation related to the 1999 acquisition of Learning Company.
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