Mattel 2006 Annual Report Download - page 13

Operations—Results of Operations—Operating Segment Results” and Item 8 “Financial Statements and
Supplementary Data—Note 10 to the Consolidated Financial Statements.” For additional information regarding
geographic areas, see Item 8 “Financial Statements and Supplementary Data—Note 10 to the Consolidated
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!™, Pixel Chix™, Winx Club™, 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 Batman™, CARS™, Justice League™, MegaMan™, Superman™,
Yu-Gi-Oh!™, and Radica:®products, as well as games and puzzles.
In 2007, 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™III: Magic of the Rainbow™in spring 2007, and Barbie®as The Island Princess™in fall
2007. Polly Pocket!™will be expanding into new categories in 2007, with the introduction of Polly®Fliers and
the Polly®Jet. In the Wheels category, Hot Wheels®will launch an all-new track set strategy, including new
Flip N Go™“No Assembly” sets. In the Entertainment category, Mattel will expand on the success of CARS™
and Scene It?™brands, and introduce new products including toys and games from Disney’s Ratatouille movie in
summer 2007. Mattel’s Radica:®products will expand on the success of 20Q™and Girl Tech®brands with new
releases, and add U.B. FUNKEYS™, an all new platform in 2007.
The Fisher-Price Brands US segment includes Fisher-Price®, Little People®, Rescue Heroes®, BabyGear™,
View-Master®, Sesame Street®, Dora the Explorer™, Go-Diego-Go!™, Winnie the Pooh, InteracTV™,
See ‘N Say®, and Power Wheels®. New product introductions for 2007 are expected to include the Smart
Cycle™, Digital Arts & Crafts Studio, Laugh & Learn™Kitchen, Rainforest™Bouncer, T.M.X.™Friend Ernie,
T.M.X.™Friend Cookie Monster, Dora’s Let’s Get Ready Vanity™, I Can Play™Guitar, and Diego’s Mobile
Rescue Unit.
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 January 2007, American Girl introduced Nicki™, the newest Girl of the Year doll.
In addition, American Girl is launching American Girl Boutique and Bistro™, a new experiential retail concept,
in Dallas, Texas and Atlanta, Georgia in mid-to-late 2007, and a new historical doll in September 2007.
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.
4