Mattel 2004 Annual Report Download - page 95

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Mattel’s portfolio of brands and products are grouped in the following categories:
Mattel Brands—including Barbie®fashion dolls and accessories (“Barbie®”), Polly Pocket!™and
Disney Classics (collectively “Other Girls Brands”), Hot Wheels®, Matchbox®and Tyco®R/C
vehicles and playsets (collectively “Wheels”) and Harry Potter™, Yu-Gi-Oh!™, Batman™,
Justice League™, Megaman™and games and puzzles (collectively “Entertainment”).
Fisher-Price Brands—including Fisher-Price®, Little People®, Rescue Heroes®, BabyGear™and
View-Master®(collectively “Core Fisher-Price®”), Sesame Street®, Barney™, Dora the Explorer™,
Winnie the Pooh, InteracTV™and See ’N Say®(collectively “Fisher-Price®Friends”) and
Power Wheels®.
American Girl Brands—including American Girl Today®, The American Girls Collection®and
Bitty Baby®. American Girl Brands products are sold directly to consumers and its children’s
publications are also sold to certain retailers.
The International segment sells products in all toy categories, except American Girl Brands.
Segment Data
The tables below present information about revenues, income and assets by segment. Mattel does not
include sales adjustments such as trade discounts and other allowances in the calculation of segment revenues
(hereinafter referred to as “gross sales”). Mattel records these adjustments in its financial accounting systems at
the time of sale to each customer, but the adjustments are not allocated to individual products. For this reason,
Mattel’s chief operating decision maker uses gross sales by segment as one of the metrics to measure segment
performance. Such sales adjustments are included in the determination of segment income from operations based
on the adjustments recorded in the financial accounting systems. 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 income. 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
2004 2003 2002
(In thousands)
Revenues
Domestic:
Mattel Brands US ....................................... $1,511,550 $1,594,144 $1,790,006
Fisher-Price Brands US ................................... 1,319,200 1,265,224 1,282,221
American Girl Brands .................................... 379,112 344,446 350,178
Total Domestic ............................................. 3,209,862 3,203,814 3,422,405
International ............................................... 2,336,236 2,175,709 1,890,939
Gross sales ................................................. 5,546,098 5,379,523 5,313,344
Sales adjustments ........................................... (443,312) (419,423) (428,004)
Net sales from continuing operations ............................ $5,102,786 $4,960,100 $4,885,340
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