Mattel 2007 Annual Report Download - page 101

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Note 7—Stockholders’ Equity
Preference Stock
Mattel is authorized to issue up to 20.0 million shares of $0.01 par value preference stock, of which none is
currently outstanding.
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
During 2007, 2006, and 2005, the Board of Directors authorized Mattel to increase its share repurchase
program by $750.0 million, $250.0 million, and $500.0 million, respectively. During 2007, Mattel repurchased
35.9 million shares at a cost of $806.3 million. During 2006, Mattel repurchased 11.8 million shares at a cost of
$192.7 million. During 2005, Mattel repurchased 28.9 million shares at a cost of $500.4 million. At
December 31, 2007, share repurchase authorizations of $0.9 million had not been executed. In January 2008, the
Board of Directors authorized Mattel to increase its previously announced share repurchase program by an
additional $500 million. Repurchases will take place from time to time, depending on market conditions. Mattel’s
share repurchase program has no expiration date.
Dividends
In 2007, 2006, and 2005, Mattel paid a dividend per share of $0.75, $0.65 and $0.50, 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 the 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:
For the Year
2007 2006 2005
(In thousands)
Net income ..................................................... $599,993 $592,927 $417,019
Currency translation adjustments .................................... 86,653 69,632 (38,767)
Minimum pension liability adjustments ............................... — 21,465 (7,243)
Defined benefit pension plans, net prior service cost and net actuarial loss . . . 28,316 — —
Net unrealized (loss) gain on derivative instruments:
Unrealized holding (losses) gains ............................... (38,057) (13,063) 25,348
Reclassification adjustment for realized losses included in net income . . 24,139 2,276 3,904
101,051 80,310 (16,758)
Net unrealized gains on securities:
Unrealized holding gains ...................................... — — (195)
Reclassification adjustment for realized gains included in net income . . . — — (16,247)
— — (16,442)
$701,044 $673,237 $383,819
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