Mattel 2007 Annual Report Download - page 119

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For the Year
2007 2006 2005
(In thousands)
Currency transaction (gains)/losses included in:
Operating income ........................................... $ (95,921) $ (32,008) $ (57,356)
Other non-operating (income) expense, net ....................... (12,875) (1,652) 3,120
Net transaction (gains) ................................... $(108,796) $ (33,660) $ (54,236)
Other selling and administrative expenses include the following:
Design and development ...................................... $189,407 $173,514 $182,015
Bad debt expense ........................................... 6,203 3,399 3,108
Identifiable intangible asset amortization ......................... 9,331 3,906 2,315
Note 13—Quarterly Financial Information (Unaudited)
First
Quarter
Second
Quarter
Third
Quarter
Fourth
Quarter
(In thousands, except per share amounts)
Year Ended December 31, 2007
Net sales ......................................... $940,265 $1,002,625 $1,838,574 $2,188,626
Gross profit ....................................... 418,686 443,162 864,712 1,050,740
Advertising and promotion expenses ................... 105,310 107,106 211,436 284,916
Other selling and administrative expenses ............... 292,745 299,207 342,748 403,754
Operating income (a) ............................... 20,631 36,849 310,528 362,070
Income before income taxes .......................... 15,638 36,465 307,688 343,607
Net income (b) .................................... 11,963 22,804 236,750 328,476
Net income per common share—basic ................. $ 0.03 $ 0.06 $ 0.61 $ 0.90
Weighted average number of common shares ............ 389,883 396,196 386,346 364,829
Net income per common share—diluted ................ $ 0.03 $ 0.06 $ 0.61 $ 0.89
Weighted average number of common and potential
common shares .................................. 396,750 402,840 391,294 368,655
Dividends declared per common share ................. $ — $ — $ — $ 0.75
Common stock market price:
High ........................................ $ 28.73 $ 29.65 $ 27.20 $ 24.08
Low......................................... 22.93 25.14 21.17 18.97
Year Ended December 31, 2006
Net sales ......................................... $793,347 $ 957,655 $1,790,312 $2,108,842
Gross profit ....................................... 331,958 416,120 851,369 1,012,346
Advertising and promotion expenses ................... 88,853 100,554 205,886 255,682
Other selling and administrative expenses (c) ............ 275,096 265,655 323,248 368,001
Operating (loss) income ............................. (31,991) 49,911 322,235 388,663
Income (loss) before income taxes ..................... (36,495) 42,354 304,553 373,344
Net income (b) .................................... 30,170 37,380 239,025 286,352
Net income per common share—basic ................. $ 0.08 $ 0.10 $ 0.63 $ 0.76
Weighted average number of common shares ............ 388,766 386,191 378,628 378,261
Net income per common share—diluted ................ $ 0.08 $ 0.10 $ 0.62 $ 0.75
Weighted average number of common and potential
common shares .................................. 391,287 388,777 382,664 384,008
Dividends declared per common share ................. $ — $ — $ — $ 0.65
Common stock market price:
High ........................................ $ 18.13 $ 17.57 $ 19.79 $ 23.80
Low......................................... 14.78 15.94 15.88 19.44
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