Mattel 2006 Annual Report Download - page 93

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Preferred Stock
Mattel is authorized to issue up to 3.0 million shares of $1.00 par value preferred stock, of which none is
currently outstanding.
Common Stock Repurchase Program
The Board of Directors approved an increase to the share repurchase program of an additional
$250.0 million in November 2003 and, at that time, there were share repurchase authorizations that had not been
executed totaling $5.6 million. During 2004, Mattel repurchased 14.7 million shares at a cost of $255.1 million.
In 2005, the Board of Directors approved the repurchase of an additional $500.0 million of Mattel’s common
stock. During 2005, Mattel repurchased 28.9 million shares at a cost of $500.4 million. In January 2006, the
Board of Directors authorized Mattel to increase its share repurchase program by an additional $250.0 million.
During 2006, Mattel repurchased 11.8 million shares at a cost of $192.7 million. At December 31, 2006, share
repurchase authorizations of $57.3 million had not been executed. Repurchases take place from time to time,
depending on market conditions. Mattel’s share repurchase program has no expiration date.
Dividends
In 2006, 2005 and 2004, Mattel paid a dividend per share of $0.65, $0.50 and $0.45, respectively, to holders
of its common stock. The Board of Directors declared the dividend in November, and Mattel paid the dividend in
December of each year. The payment of dividends on common stock is at the discretion of Mattel’s Board of
Directors and is subject to customary limitations.
Comprehensive Income (Loss)
The changes in the components of other comprehensive income (loss), net of tax, are as follows (in
thousands):
For the Year
2006 2005 2004
Net income ..................................................... $592,927 $417,019 $572,723
Currency translation adjustments .................................... 69,632 (38,767) 36,380
Minimum pension liability adjustments ............................... 21,465 (7,243) (1,430)
Net unrealized gain (loss) on derivative instruments:
Unrealized holding (losses) gains ............................... (13,063) 25,348 (33,232)
Reclassification adjustment for realized losses included in net income . . 2,276 3,904 31,820
80,310 29,252 (1,412)
Net unrealized gains on securities:
Unrealized holding gains ...................................... — (195) (4,820)
Reclassification adjustment for realized gains included in net income . . . — (16,247) (11,539)
— (16,442) (16,359)
$673,237 $383,819 $589,902
For 2006, currency translation adjustments resulted in a net gain of $69.6 million, with gains from the
strengthening of the Euro and British pound sterling against the US dollar, partially offset by the weakening of
the Mexican peso against the US dollar. For 2005, currency translation adjustments resulted in a net loss of
$38.8 million, with losses from the weakening of the Euro and British pound sterling against the US dollar being
partially offset by gains from the strengthening of the Mexican peso against the US dollar. For 2004, currency
translation adjustments resulted in a net gain of $36.4 million, with gains from the strengthening of the British
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