Mattel 2005 Annual Report Download - page 22

15(d) of the Securities Exchange Act of 1934 (the “Exchange Act”) with the SEC. The public may read and copy
any materials that Mattel files with the SEC at the SEC’s Public Reference Room at 450 Fifth Street, NW,
Washington, DC 20549. The public may obtain information on the operation of the Public Reference Room by
calling the SEC at 1-800-SEC-0330. The SEC maintains an Internet website that contains reports, proxy and
other information regarding issuers that file electronically with the SEC at http://www.sec.gov.
Mattel’s Internet website address is http://www.mattel.com. Mattel makes available on its Internet website, free
of charge, its Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, Proxy
Statements and amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Exchange
Act as soon as reasonably practicable after such materials are electronically filed with, or furnished to, the SEC.
Item 1A. Risk Factors.
Factors That May Affect Future Results
(Cautionary Statement Under the Private Securities Litigation Reform Act of 1995)
Certain written and oral statements made or incorporated by reference from time to time by Mattel or its
representatives in this Annual Report on Form 10-K, other filings or reports filed with the SEC, press releases,
conferences, or otherwise, are “forward-looking statements” within the meaning of the Private Securities
Litigation Reform Act of 1995 and may include, but are not limited to, statements about: sales and inventory
levels; brand and customer management programs; increased competition; initiatives to promote revenue growth;
globalization initiatives; restructuring and financial realignment plans; special charges and other non-recurring
charges; initiatives aimed at anticipated cost savings; initiatives to invigorate the Barbie®brand, improve the
execution of the core business, extend brands, catch new trends, create new brands and enter new categories,
develop people, improve productivity, simplify processes, maintain customer service levels and improve supply
chain; operating efficiencies; capital and investment framework (including statements about free cash flow,
seasonal working capital, debt-to-total capital ratios, capital expenditures, strategic acquisitions, dividends and
share repurchases); cost increases; advertising and promotion spending; profitability; and the impact of recent
organizational changes. Mattel is including this Cautionary Statement to make applicable and take advantage of
the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 for any such forward-looking
statements. Forward-looking statements include any statement that may predict, forecast, indicate, or imply
future results, performance, or achievements. Forward-looking statements can be identified by the use of
terminology such as “believe,” “anticipate,” “expect,” “estimate,” “may,” “will,” “should,” “project,” “continue,”
“plans,” “aims,” “intends,” “likely,” or other similar words or phrases. Except for historical matters, the matters
discussed in this Annual Report on Form 10-K and other statements or filings made by Mattel from time-to-time
may be forward-looking statements. Management cautions you that forward-looking statements involve risks and
uncertainties that may cause actual results to differ materially from the forward-looking statements. In addition to
the important factors detailed herein and from time-to-time in other reports filed by Mattel with the SEC,
including Forms 8-K, 10-Q and 10-K, the following important factors could cause actual results to differ
materially from past results or those suggested by any forward-looking statements.
If Mattel does not successfully satisfy consumer preferences, enhance existing products, develop and
introduce new products and achieve market acceptance of those products, Mattel’s results of operations
may be adversely affected.
Mattel’s business and operating results depend largely upon the appeal of its toy products. Consumer
preferences, particularly among end users of Mattel’s products–children–are continuously changing. The toy
industry experiences significant, sudden shifts in demand caused by “hit” toys and trends, which are often
unpredictable. Mattel competes with many other toy companies, both large and small, which means that Mattel’s
market position is always at risk. Mattel’s ability to maintain its current category share, and increase its category
share or establish category share in new product categories, will depend on Mattel’s ability to satisfy consumer
preferences, enhance existing products, develop and introduce new products, and achieve market acceptance of
these products. In recent years there have been trends towards shorter life cycles for individual toy products, the
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