Mattel 2004 Annual Report Download - page 15

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In the Mattel Brands US segment, Barbie®includes brands such as Barbie®fashion dolls and accessories,
My Scene™, and Barbie®Collector. Polly Pocket!™and Disney Classics are included within Other Girls Brands.
Wheels is comprised of Hot Wheels®, Matchbox®, and Tyco®R/C. Entertainment includes Harry Potter™,
Yu-Gi-Oh!™, Batman™, Justice League™and Megaman™products, as well as games and puzzles.
In 2005, Mattel expects to expand its existing products or introduce new products, including continuing to
leverage content within the core brands. For example, entertainment-themed fashion dolls and accessories related
to Barbie®and The Magic of Pegasus, the first ever Fairytopia™full-length movie on DVD and Barbie®
American Idol™will be introduced in 2005. In the Wheels category, new product introductions include
Hot Wheels®AcceleRacers™and Tyco®R/C Shell Shocker™. In the Entertainment category, new Batman™
products as well as Scene It?™TV Edition will be available in 2005.
The Fisher-Price Brands US segment includes Fisher-Price®, Power Wheels®, Sesame Street®,
Little People®, BabyGear™, Winnie the Pooh, Rescue Heroes®, Barney™, See ’N Say®, Dora the Explorer™,
InteracTV™and View-Master®brands. New product introductions for 2005 are expected to include
Baby Gymtastics™, the Star Station™entertainment system, Read with Me DVD, Tumble Time™Tigger and
Shout! Elmo plush doll.
The American Girl Brands segment is a direct marketer, children’s publisher and retailer that includes the
following brands: The American Girls Collection®, American Girl Today®and Bitty Baby®. American Girl
Brands also publishes best-selling books from American Girl Library®, as well as the award-winning American
Girl®magazine. In 2005, American Girl Brands, in association with Warner Bros., is creating a second
made-for-TV movie scheduled to air in the fall of 2005 featuring Felicity Merriman®, a classic American Girl®
character. Product introductions include Elizabeth™, Felicity®’s best friend from the movie, and Marisol™, both
new American Girl®dolls for 2005. American Girl Brands products are sold only in the US and Canada.
International Segment
Products marketed by the International segment, with the exception of American Girl Brands, are generally
the same as those developed and marketed by the Domestic segment, although some are developed or adapted for
particular international markets. Mattel’s products are sold directly to retailers and wholesalers in Canada and
most European, Asian and Latin American countries, and through agents and distributors in those countries
where Mattel has no direct presence.
Mattel’s International segment revenue represented approximately 42% of consolidated gross sales in 2004.
Within the International segment, Mattel operates in four regions that generated the following gross sales during
2004 (in millions):
Amount Percentage
Europe .............................................................. $1,410.5 60%
Latin America ......................................................... 524.5 22
Canada .............................................................. 197.6 9
Asia Pacific .......................................................... 203.6 9
$2,336.2 100%
No individual country within the International segment exceeded 6% of worldwide, consolidated gross sales
during 2004.
The strength of the US dollar relative to other currencies can significantly affect the revenues and
profitability of Mattel’s international operations. Mattel enters into foreign currency forward exchange and
option contracts primarily to hedge its purchase and sale of inventory, and other intercompany transactions
denominated in foreign currencies to limit the effect of exchange rate fluctuations on its results of operations and
cash flows. See Item 7A “Quantitative and Qualitative Disclosures About Market Risk” and Item 8 “Financial
Statements and Supplementary Data—Note 8 to the Consolidated Financial Statements.” For financial
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