Mattel 2003 Annual Report Download - page 96

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Note 12—Quarterly Financial Information (Unaudited)
First
Quarter
Second
Quarter
Third
Quarter
Fourth
Quarter
(In thousands, except per share amounts)
Year Ended December 31, 2003
Net sales (a) ........................................ $745,283 $768,994 $1,704,674 $1,741,149
Gross profit ........................................ 368,006 356,324 840,069 865,084
Advertising and promotion expenses .................... 83,806 80,748 196,638 274,913
Other selling and administrative expenses ................ 222,870 230,530 263,275 286,224
Restructuring and other charges ........................ 8,700 3,300 (7,631) 400
Operating income ................................... 52,630 41,746 387,787 303,547
Income before income taxes ........................... 44,651 28,822 373,432 293,949
Net income ........................................ 32,843 20,892 270,031 213,866
Income per common share—Basic:
Net income .................................... $ 0.07 $ 0.05 $ 0.61 $ 0.50
Weighted average number of common shares ......... 438,265 439,700 439,315 430,827
Income per common share—Diluted:
Net income .................................... $ 0.07 $ 0.05 $ 0.61 $ 0.49
Weighted average number of common and common
equivalent shares .............................. 443,934 445,491 444,004 435,285
Dividends declared per common share ................... $ — $ — $ — $ 0.40
Common stock market price:
High .......................................... $ 23.05 $ 22.99 $ 20.62 $ 20.58
Low .......................................... 19.05 18.92 18.80 18.85
(a) As discussed in Note 1 to the consolidated financial statements, effective October 1, 2003, Mattel changed
the way certain close out sales are classified in its consolidated statement of operations. Close out sales are
sales of certain products that are no longer included in current product lines. These sales were previously
classified as a reduction of cost of sales. Commencing October 1, 2003, close out sales are reported as net
sales in Mattel’s consolidated statements of operations. Accordingly, close out sales for the fourth quarter
of 2003, totaling $19.2 million, are included in reported net sales and all prior close out sales were
classified as a reduction of cost of sales. The following table provides the quantification of close out sales
by quarter for 2003 (in thousands):
First
Quarter
Second
Quarter
Third
Quarter
Fourth
Quarter
2003 ................................................. $13,334 $12,043 $12,747 $19,204
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