Mattel 2007 Annual Report Download - page 85

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Note 2—Goodwill and Other Intangibles
The change in the carrying amount of goodwill by reporting unit for 2007 and 2006 is shown below.
Brand-specific goodwill held by foreign subsidiaries is allocated to the US reporting units selling those brands,
thereby causing foreign currency translation impact to the US reporting units.
Mattel
Girls Brands
US Division
Mattel
Boys Brands
US Division
Fisher-Price
Brands US
American Girl
Brands International Total
(In thousands)
Balance at December 31,
2005 .................... $34,003 $ 54,134 $216,455 $207,571 $205,906 $718,069
Radica acquisition ........... — 71,726 — — 35,858 107,584
Impact of currency exchange
rate changes .............. 4,275 333 836 — 14,227 19,671
Balance at December 31,
2006 .................... 38,278 126,193 217,291 207,571 255,991 845,324
Radica acquisition ........... — (1,760) — — (880) (2,640)
Impact of currency exchange
rate changes .............. 473 36 92 — 2,364 2,965
Balance at December 31,
2007 .................... $38,751 $124,469 $217,383 $207,571 $257,475 $845,649
Identifiable intangibles include the following:
December 31,
2007 2006
(In thousands)
Identifiable intangibles (net of amortization of $52.0 million and $42.7 million in 2007 and
2006, respectively) ....................................................... $ 70,628 $55,193
Nonamortizable identifiable intangibles ......................................... 128,382 15,400
$199,010 $70,593
In 2007, Mattel performed the annual impairment tests required by SFAS No. 142 and determined that its
goodwill and nonamortizable intangible assets were not impaired.
On August 16, 2007, Mattel acquired the rights to manufacture, distribute and market several game
properties, including Apples to Apples®, Snorta®, and Blink®for $25.3 million, including acquisition costs.
On May 23, 2007, Mattel acquired Origin Products Limited (“Origin”), which owns the Polly Pocket®
trademark and trade name rights, for $79.1 million in cash, including acquisition costs. Prior to the acquisition,
Mattel had exclusive rights to manufacture, design and distribute Polly Pocket®products. In connection with the
acquisition of Origin, Mattel recorded nonamortizable intangible assets totaling $113.0 million, including the
$79.1 million for the purchase price and acquisition costs, along with related deferred tax liabilities.
On October 3, 2006, Mattel completed its acquisition of Radica Games Limited (“Radica”) for net cash paid
of $196.4 million, which includes the purchase price and acquisition costs of $235.1 million, net of cash acquired
of $38.7 million. Radica manufactures and markets a diverse line of electronic entertainment products including
electronic games carrying the Radica, 20Q™, Cube World™, and Play TV®brand names and youth electronics
carrying the Girl Tech®brand name. Under the Agreement and Plan of Amalgamation (the “Amalgamation
Agreement”) between Radica and certain of Mattel’s wholly owned subsidiaries, shareholders of Radica received
$11.55 in cash for each share of Radica common stock at the effective time of the amalgamation. Mattel, Inc. is a
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