Mattel 2004 Annual Report Download - page 26

Item 6. Selected Financial Data.
For the Year Ended December 31,
2004 2003 2002 2001 2000
(In thousands, except per share and percentage information)
Operating Results:
Net sales (a) ............................ $5,102,786 $4,960,100 $4,885,340 $4,687,924 $4,565,489
Gross profit ............................. 2,410,725 2,429,483 2,360,987 2,148,934 1,993,242
% of net sales ......................... 47.2% 49.0% 48.3% 45.8% 43.7%
Operating income (b) ..................... 730,817 785,710 733,541 579,320 370,624
% of net sales ......................... 14.3% 15.8% 15.0% 12.4% 8.1%
Income from continuing operations before
income taxes .......................... 696,254 740,854 621,497 430,010 225,424
Provision for income taxes ................. 123,531 203,222 166,455 119,090 55,247
Income from continuing operations .......... 572,723 537,632 455,042 310,920 170,177
Gain (loss) from discontinued operations, net of
tax(c) ............................... — — 27,253 — (601,146)
Cumulative effect of change in accounting
principle, net of tax ..................... — — (252,194) (12,001) —
Net income (loss) ........................ 572,723 537,632 230,101 298,919 (430,969)
Net Income (Loss) Per Common Share:
Income from continuing operations .......... $ 1.37 $ 1.23 $ 1.04 $ 0.72 $ 0.40
Gain (loss) from discontinued operations (c) . . . — — 0.06 — (1.41)
Cumulative effect of change in accounting
principle ............................. — — (0.58) (0.03) —
Net income (loss) per common share—basic . . . 1.37 1.23 0.52 0.69 (1.01)
Income from continuing operations .......... 1.35 1.22 1.03 0.71 0.40
Gain (loss) from discontinued operations (c) . . . — — 0.06 — (1.41)
Cumulative effect of change in accounting
principle ............................. — — (0.57) (0.03) —
Net income (loss) per common
share—diluted ......................... 1.35 1.22 0.52 0.68 (1.01)
Dividends Declared Per Common Share .... $ 0.45 $ 0.40 $ 0.05 $ 0.05 $ 0.27
As of Year End
2004 2003 2002 2001 2000
(In thousands)
Financial Position:
Total assets ............................. $4,756,492 $4,510,950 $4,459,659 $4,509,817 $4,268,279
Long-term liabilities ...................... 643,509 826,983 832,194 1,205,122 1,407,892
Stockholders’ equity ...................... 2,385,812 2,216,221 1,978,712 1,738,458 1,403,098
(a) As discussed in Note 1 to the consolidated financial statements, effective October 1, 2003, close out sales
previously classified as a reduction of cost of sales are now classified as net sales in Mattel’s consolidated
statements of income. Close out sales for the fourth quarter of 2003, totaling $19.2 million, were included in
reported net sales. This change in classification had no impact on gross profit, operating income, net
income (loss), net income (loss) per common share, balance sheets or cash flows. The following table
provides the quantification of total close out sales by year (in thousands):
For the Year Ended
2003 2002 2001 2000
$57,328 $112,673 $163,388 $98,378
(b) Effective on January 1, 2002, Mattel adopted Statement of Financial Accounting Standards (“SFAS”)
No. 142, Goodwill and Other Intangible Assets. In accordance with the adoption of SFAS No. 142, Mattel
ceased amortization of goodwill effective January 1, 2002. Operating income in 2001 and 2000 includes
goodwill amortization of $46.1 million and $46.6 million, respectively.
(c) As more fully described in Note 14 to the consolidated financial statements, the Consumer Software
segment, which was comprised primarily of The Learning Company, Inc. (“Learning Company”), was
reported as a discontinued operation effective March 31, 2000, and the consolidated financial statements
were reclassified to segregate the operating results of the Consumer Software segment.
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