Mattel 2005 Annual Report Download - page 13

Financial Statements.” For a discussion of the risks inherent in the foreign operations of Mattel, which affect
each segment, see Item 1A “Risk Factors—Factors That May Affect Future Results.”
Domestic Segment
The Domestic segment develops toys that it markets and sells through the Mattel Girls & Boys Brands US,
Fisher-Price Brands US and American Girl Brands segments.
In the Mattel Girls & Boys 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 vehicles and playsets.
Entertainment includes Harry Potter™, Yu-Gi-Oh!™, Batman™, Justice League™and MegaMan™products, as
well as games and puzzles.
In 2006, Mattel expects to introduce new products, including continuing to leverage content within its core
brands. In the Mattel Girls Brands category, new product introductions include full-length animated launches of
Barbie®in Fairytopia™II: Mermaidia™for spring, Barbie®as a teen in Barbie®Diaries for summer, and
Barbie®in the 12 Dancing Princesses in Fall 2006. In 2006, there will also be a Polly Pocket!™animated full-
length movie, Pollyworld™. Mattel will also reintroduce both Barbie®Dream Home and Barbie®Party Cruiser in
Fall 2006. In the Wheels category, new product introductions include Hot Wheels®innovations like Micro
Madnetics™and Double Shotz™. In the Entertainment category, new Superman™and CARS products, the new
Scene it? ™Nickelodeon edition and Disney DVD Bingo will be introduced in 2006.
The Fisher-Price Brands US segment includes Fisher-Price®, Little People®, Rescue Heroes®, BabyGear™,
View-Master®, Sesame Street®, Barney™, Dora the Explorer™, Winnie the Pooh, InteracTV™, See ‘N Say®, and
Power Wheels®. New product introductions for 2006 are expected to include the Fun 2 Learn™Preschool Center,
Amazing Animals™, SparkArt Creativity System™, Kid-Tough™Digital Camera, I Can Play™Piano, Fairy
Wishes™Dora, Dora’s Magical Castle and a new Elmo product.
The American Girl Brands segment is a direct marketer, children’s publisher and retailer best known for its
flagship line of historical dolls, books and accessories, as well as the Just Like You™and Bitty Baby®brands.
American Girl Brands also publishes best-selling Advice & Activity books and the award-winning American Girl®
magazine. In 2006, American Girl Brands, in association with Warner Bros. Entertainment Inc., is creating a third
made-for-TV movie scheduled to air in the fall of 2006 featuring Molly McIntire®, a classic American Girl®
character. New product introductions include the Emily™doll, Molly®’s best friend from the movie, and Jess™,the
newest Girl of the Year doll for 2006. American Girl Brands products are sold only in the US and Canada.
International Segment
Products marketed by the International segment are generally the same as those developed and marketed by
the Domestic segment, with the exception of American Girl Brands, although some are developed or adapted for
particular international markets. Mattel’s products are sold directly to retailers and wholesalers in most European,
Latin American and Asian countries, and in Australia, Canada and New Zealand, and through agents and
distributors in those countries where Mattel has no direct presence.
Mattel’s International segment revenue represented approximately 44% of worldwide consolidated gross
sales in 2005. Within the International segment, Mattel operates in four regions that generated the following
gross sales during 2005 (in millions):
Amount
Percentage of
International
Gross Sales
Europe ................................................................ $1,408.7 57%
Latin America .......................................................... 644.9 26
Asia Pacific ............................................................ 218.2 9
Other ................................................................. 192.2 8
$2,464.0 100%
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