Mattel 2007 Annual Report Download - page 120

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(a) Operating income for 2007 includes recall-related expenses of approximately $42 million in the fourth
quarter of 2007, approximately $40 million in the third quarter of 2007, and approximately $29 million in
the second quarter of 2007.
(b) Net income for the fourth quarter of 2007 was favorably impacted by tax benefits related to prior years of
$47.3 million, as a result of reassessments of tax exposures based on the status of current audits in various
jurisdictions around the world, including settlements, and net income for the first quarter of 2007 included
income tax expense of $5.3 million related to enacted tax law changes. Net income in the first quarter of
2006 was favorably impacted by tax benefits of $56.8 million as a result of settlements with foreign tax
authorities.
(c) Other selling and administrative expenses for the third quarter of 2006 included stock compensation
expense of $19.3 million related to prior period unintentional accounting errors.
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