Mattel 2008 Annual Report Download - page 107

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Note 15—Quarterly Financial Information (Unaudited)
First
Quarter
Second
Quarter
Third
Quarter
Fourth
Quarter
(In thousands, except per share amounts)
Year Ended December 31, 2008
Net sales ......................................... $919,299 $1,112,431 $1,946,315 $1,939,957
Gross profit ....................................... 396,836 495,334 900,070 892,166
Advertising and promotion expenses ................... 102,961 116,805 223,826 275,567
Other selling and administrative expenses ............... 330,410 347,921 360,895 384,229
Operating (loss) income ............................. (36,535) 30,608 315,349 232,370
(Loss) Income before income taxes .................... (59,802) 14,933 307,108 225,725
Net (loss) income .................................. (46,646) 11,783 238,098 176,401
Net (loss) income per common share—basic ............. $ (0.13) $ 0.03 $ 0.66 $ 0.49
Weighted average number of common shares ............ 361,751 361,262 360,881 358,779
Net (loss) income per common share—diluted ........... $ (0.13) $ 0.03 $ 0.66 $ 0.49
Weighted average number of common and potential
common shares .................................. 361,751 363,919 362,795 359,920
Dividends declared per common share ................. $ — $ — $ — $ 0.75
Common stock market price:
High ........................................ $ 21.89 $ 21.80 $ 21.79 $ 18.14
Low......................................... 16.65 17.12 16.98 11.42
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
(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.
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