Mattel 2008 Annual Report Download - page 29

Download and view the complete annual report

Please find page 29 of the 2008 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 130

  • 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

Item 6. Selected Financial Data.
For the Year Ended December 31,
2008 2007 2006 2005 2004
(In thousands, except per share and percentage information)
Operating Results:
Net sales ............................. $5,918,002 $5,970,090 $5,650,156 $5,179,016 $5,102,786
Gross profit ........................... 2,684,406 2,777,300 2,611,793 2,372,868 2,410,725
% of net sales ........................ 45.4% 46.5% 46.2% 45.8% 47.2%
Operating income ...................... 541,792 730,078 728,818 664,529 730,817
% of net sales ........................ 9.2% 12.2% 12.9% 12.8% 14.3%
Income before income taxes .............. 487,964 703,398 683,756 652,049 696,254
Provision for income taxes (a) ............ 108,328 103,405 90,829 235,030 123,531
Net income ........................... $ 379,636 $ 599,993 $ 592,927 $ 417,019 $ 572,723
Net income per common share—basic .... $ 1.05 $ 1.56 $ 1.55 $ 1.02 $ 1.37
Net income per common share—diluted . . . $ 1.05 $ 1.54 $ 1.53 $ 1.01 $ 1.35
Dividends declared per common share .... $ 0.75 $ 0.75 $ 0.65 $ 0.50 $ 0.45
December 31,
2008 2007 2006 2005 2004
(In thousands)
Financial Position:
Total assets ........................... $4,675,039 $4,805,455 $4,955,884 $4,372,313 $4,756,492
Noncurrent liabilities .................... 1,297,930 928,284 940,390 807,395 643,509
Stockholders’ equity .................... 2,117,135 2,306,742 2,432,974 2,101,733 2,385,812
(a) 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”).
25