Mattel 2007 Annual Report Download - page 37

Download and view the complete annual report

Please find page 37 of the 2007 Mattel annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 142

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142

Item 6. Selected Financial Data.
For the Year Ended December 31,
2007 2006 2005 2004 2003
(In thousands, except per share and percentage information)
Operating Results:
Net sales (a) .......................... $5,970,090 $5,650,156 $5,179,016 $5,102,786 $4,960,100
Gross profit .......................... 2,777,300 2,611,793 2,372,868 2,410,725 2,429,483
% of net sales ....................... 46.5% 46.2% 45.8% 47.2% 49.0%
Operating income ..................... 730,078 728,818 664,529 730,817 785,710
% of net sales ....................... 12.2% 12.9% 12.8% 14.3% 15.8%
Income before income taxes ............. 703,398 683,756 652,049 696,254 740,854
Provision for income taxes (b) ........... 103,405 90,829 235,030 123,531 203,222
Net income .......................... $ 599,993 $ 592,927 $ 417,019 $ 572,723 $ 537,632
Net income per common share—basic . . . $ 1.56 $ 1.55 $ 1.02 $ 1.37 $ 1.23
Net income per common
share—diluted ..................... $ 1.54 $ 1.53 $ 1.01 $ 1.35 $ 1.22
Dividends Declared Per Common
Share ............................. $ 0.75 $ 0.65 $ 0.50 $ 0.45 $ 0.40
December 31,
2007 2006 2005 2004 2003
(In thousands)
Financial Position: .....................
Total assets .......................... $4,805,455 $4,955,884 $4,372,313 $4,756,492 $4,510,950
Noncurrent liabilities ................... 928,284 940,390 807,395 643,509 826,983
Stockholders’ equity ................... 2,306,742 2,432,974 2,101,733 2,385,812 2,216,221
(a) Effective October 1, 2003, close out sales previously classified as a reduction of cost of sales are now
classified as net sales in Mattel’s consolidated statements of operations. Close out sales during 2003 totaled
$57.3 million. Close out sales for the fourth quarter of 2003, totaling $19.2 million, were included in
reported net sales. This change in classification had no impact on gross profit, operating income, net
income, net income per common share, balance sheets or cash flows.
(b) The provision for income taxes in 2007 was positively impacted by net tax benefits related to prior years of
$42.0 million related to reassessments of tax exposures based on the status of current audits in various
jurisdictions around the world, including settlements, partially offset by enacted tax law changes. The
provision for income taxes in 2006 was positively impacted by the Tax Increase Prevention and
Reconciliation Act (the “Tax Act”) passed in May 2006, and tax benefits of $63.0 million related to tax
settlements and refunds of ongoing audits with foreign and state tax authorities. The provision for income
taxes in 2005 was negatively impacted by incremental tax expense of $107.0 million, resulting from Mattel’s
decision to repatriate $2.4 billion in previously unremitted foreign earnings under the American Jobs
Creation Act (the “Jobs Act”), partially offset by $38.6 million of tax benefits primarily relating to tax
settlements reached with various tax authorities and reassessments of tax exposures based on the status of
current audits in various jurisdictions around the world. The provision for income taxes in 2004 was
positively impacted by $65.1 million of tax benefits related to an audit settlement with the US Internal
Revenue Service (“IRS”).
27