Mattel 2004 Annual Report Download - page 86

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Comprehensive Income (Loss)
The changes in the components of other comprehensive income, net of tax, are as follows (in thousands):
For the Year
2004 2003 2002
Income from continuing operations ................................. $572,723 $537,632 $ 455,042
Gain from discontinued operations .................................. — — 27,253
Cumulative effect of change in accounting principle .................... — — (252,194)
Net income .................................................... 572,723 537,632 230,101
Currency translation adjustments ................................... 36,380 57,847 13,017
Minimum pension liability adjustments .............................. (1,430) (7,721) (48,021)
Net unrealized loss on derivative instruments:
Unrealized holding losses ..................................... (33,232) (51,198) (42,714)
Less: reclassification adjustment for realized losses included in net
income .................................................. 31,820 50,220 16,560
(1,412) (978) (26,154)
Net unrealized (loss) gain on securities:
Unrealized holding (losses) gains ............................... (4,820) 14,300 28,309
Less: reclassification adjustment for realized gains included in net
income .................................................. (11,539) (9,808) —
(16,359) 4,492 28,309
$589,902 $591,272 $ 197,252
For 2004, currency translation adjustments resulted in a net gain of $36.4 million, with gains from the
strengthening of the British pound sterling, Euro, and Mexican peso against the US dollar being partially offset
by losses from the weakening of the Indonesian rupiah against the US dollar. For 2003, currency translation
adjustments resulted in a net gain of $57.8 million, with gains from the strengthening of the Euro, British pound
sterling, and Hong Kong dollar against the US dollar being partially offset by losses from the weakening of the
Mexican peso against the US dollar. For 2002, currency translation adjustments resulted in a net gain of
$13.0 million, with gains from the strengthening of the Euro, British pound sterling, and Indonesian rupiah
against the US dollar being partially offset by losses from the weakening of the Mexican peso against the US
dollar.
The components of accumulated other comprehensive loss are as follows (in thousands):
As of Year End
2004 2003
Currency translation adjustments ............................................ $(199,792) $(236,172)
Minimum pension liability adjustments ....................................... (61,472) (60,042)
Net unrealized gain on securities ............................................ 16,442 32,801
Net unrealized (loss) on derivative instruments ................................. (25,006) (23,594)
$(269,828) $(287,007)
Note 7—Stock Compensation Plans
Mattel Stock Option Plans
Under various plans, Mattel has the ability to grant incentive stock options, nonqualified stock options,
stock appreciation rights, nonvested stock awards, and shares of common stock to officers, key employees, and
other persons providing services to Mattel. In addition, nonqualified stock options are granted to members of
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