Mattel 2008 Annual Report Download - page 24

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The level of returns on pension plan assets and the actuarial assumptions used for valuation purposes
could affect our earnings in future periods. Changes in standards and government regulations could also
affect our pension plan expense and funding requirements.
Assumptions used in determining projected benefit obligations and the fair value of plan assets for our
pension plan are evaluated by us in consultation with outside actuaries. In the event that we determine that
changes are warranted in the assumptions used, such as the discount rate, expected long term rate of return, or
health care costs, our future pension benefit expenses could increase or decrease. Due to changing market
conditions or changes in the participant population, the actuarial assumptions that we use may differ from actual
results, which could have a significant impact on our pension and postretirement liability and related costs.
Funding obligations are determined based on the value of assets and liabilities on a specific date as required
under relevant government regulations for each plan. Future pension funding requirements, and the timing of
funding payments, could be affected by legislation enacted by the relevant governmental authorities.
*****************
If any of the risks and uncertainties described in the cautionary factors listed above actually occurs, Mattel’s
business, financial condition and results of operations could be materially and adversely affected. The factors
listed above are not exhaustive. Other sections of this Annual Report on Form 10-K include additional factors
that could materially and adversely impact Mattel’s business, financial condition and results of operations.
Moreover, Mattel operates in a very competitive and rapidly changing environment. New factors emerge from
time to time, and it is not possible for management to predict the impact of all of these factors on Mattel’s
business, financial condition or results of operations, or the extent to which any factor, or combination of factors,
may cause actual results to differ materially from those contained in any forward-looking statements. Given these
risks and uncertainties, investors should not rely on forward-looking statements as a prediction of actual results.
Any or all of the forward-looking statements contained in this Annual Report on Form 10-K and any other public
statement made by Mattel or its representatives may turn out to be wrong. Mattel expressly disclaims any
obligation to update or revise any forward-looking statements, whether as a result of new developments or
otherwise.
Item 1B. Unresolved Staff Comments.
None.
Item 2. Properties.
Mattel owns its corporate headquarters in El Segundo, California, consisting of approximately
335,000 square feet, and an adjacent office building consisting of approximately 55,000 square feet. Mattel also
leases buildings in El Segundo consisting of approximately 327,000 square feet. All segments use these facilities.
Mattel’s Fisher-Price®subsidiary owns its headquarters facilities in East Aurora, New York, consisting of
approximately 535,000 square feet, which is used by the Fisher-Price Brands US segment and for corporate
support functions. American Girl Brands owns its headquarters facilities in Middleton, Wisconsin, consisting of
approximately 180,000 square feet, a warehouse in Middleton, consisting of approximately 215,000 square feet,
and distribution facilities in Middleton, DeForest and Wilmot, Wisconsin, consisting of a total of approximately
948,000 square feet, all of which are used by the American Girl Brands segment.
Mattel maintains leased sales offices in California, Illinois, Minnesota, New York, and Arkansas, and leased
warehouse and distribution facilities in California, New Jersey, and Texas, all of which are used by the Domestic
segment. Mattel has leased retail and related office space in Chicago, Illinois, New York, New York, and
Los Angeles, California for its American Girl Place®stores, Dallas, Texas, Atlanta, Georgia, Natick,
Massachusetts, and Bloomington, Minnesota for its American Girl Boutique and Bistro®and leased retail space
in Oshkosh, Wisconsin, which are used by the American Girl Brands segment, and Pomona, California, which is
used by Mattel Brands. Mattel also has leased office space in Florida, which is used by the International segment,
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