Mattel 2006 Annual Report Download - page 30

assurance that Mattel will be able to identify suitable acquisition targets or merger partners or that, if identified, it
will be able to acquire these targets on acceptable terms or agree to terms with merger partners. There can also be
no assurance that Mattel will be successful in integrating any acquired company into its overall operations, or
that any such acquired company will operate profitably or will not otherwise adversely impact Mattel’s results of
operations. Further, Mattel cannot be certain that key talented individuals at these acquired companies will
continue to work for Mattel after the acquisition or that they will continue to develop popular and profitable
products or services. In addition, Mattel has certain anti-takeover provisions in its bylaws that may make it more
difficult for a third party to acquire Mattel without its consent, which may adversely affect Mattel’s stock price.
If any of the risks and uncertainties described in the cautionary factors listed above actually occurs, Mattel’s
business, financial condition and results of operations could be materially and adversely affected. The factors
listed above are not exhaustive. Other sections of this Annual Report on Form 10-K include additional factors
that could materially and adversely impact Mattel’s business, financial condition and results of operations.
Moreover, Mattel operates in a very competitive and rapidly changing environment. New factors emerge from
time to time and it is not possible for management to predict the impact of all of these factors on Mattel’s
business, financial condition or results of operations or the extent to which any factor, or combination of factors,
may cause actual results to differ materially from those contained in any forward-looking statements. Given these
risks and uncertainties, investors should not rely on forward-looking statements as a prediction of actual results.
Any or all of the forward-looking statements contained in this Annual Report on Form 10-K and any other public
statement made by Mattel or its representatives may turn out to be wrong. Mattel expressly disclaims any
obligation to update or revise any forward-looking statements, whether as a result of new developments or
otherwise.
Item 1B. Unresolved Staff Comments.
None.
Item 2. Properties.
Mattel owns its corporate headquarters in El Segundo, California, consisting of approximately
335,000 square feet, and an adjacent office building consisting of approximately 55,000 square feet. Mattel also
leases buildings in El Segundo consisting of approximately 327,000 square feet. All segments use these facilities.
Mattel’s Fisher-Price subsidiary owns its headquarters facilities in East Aurora, New York, consisting of
approximately 535,000 square feet, which is used by the Fisher-Price Brands US segment and for corporate
support functions. American Girl Brands owns its headquarters facilities in Middleton, Wisconsin, consisting of
approximately 180,000 square feet, a warehouse in Middleton, consisting of approximately 215,000 square feet,
and distribution facilities in Middleton, DeForest and Wilmot, Wisconsin, consisting of a total of approximately
948,000 square feet, all of which are used by the American Girl Brands segment.
Mattel maintains leased sales offices in California, Illinois, Minnesota, New York, and Arkansas and leased
warehouse and distribution facilities in California, New Jersey and Texas, all of which are used by the Domestic
segment. Mattel has leased retail and related office space in Chicago, Illinois, New York, New York and Los
Angeles, California for its American Girl Place®stores, leased retail space in Oshkosh, Wisconsin, which are
used by the American Girl Brands segment, and Pomona, California which is used by Mattel Brands. Mattel also
has leased office space in Florida, which is used by the International segment, and California, Massachusetts, and
Texas, which are used by Radica Games Limited (“Radica”). Mattel leases a computer facility in Phoenix,
Arizona used by all segments. Internationally, Mattel has offices and/or warehouse space in Argentina, Australia,
Austria, Belgium, Bermuda, Brazil, Canada, Chile, China, Colombia, Costa Rica, Czech Republic, Denmark,
Finland, France, Germany, Greece, Hong Kong, Hungary, India, Italy, Japan, Korea, Macau, Mexico, The
Netherlands, New Zealand, Norway, Peru, Poland, Portugal, Puerto Rico, Romania, Singapore, South Korea,
Spain, Switzerland, Taiwan, Turkey, the United Kingdom and Venezuela which are leased (with the exception of
office space in Chile, certain warehouse space in France, and office and warehouse space in Hong Kong, that is
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