Mattel 2008 Annual Report Download - page 88

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Note 9—Stockholders’ Equity
Preference Stock
Mattel is authorized to issue up to 20.0 million shares of $0.01 par value preference stock, of which none is
currently outstanding.
Preferred Stock
Mattel is authorized to issue up to 3.0 million shares of $1.00 par value preferred stock, of which none is
currently outstanding.
Common Stock Repurchase Program
During 2008, 2007, and 2006, the Board of Directors authorized Mattel to increase its share repurchase
program by $500.0 million, $750.0 million, and $250.0 million, respectively. During 2008, Mattel repurchased
4.9 million shares at a cost of $90.6 million. During 2007, Mattel repurchased 35.9 million shares at a cost of
$806.3 million. During 2006, Mattel repurchased 11.8 million shares at a cost of $192.7 million. Repurchases
will take place from time to time, depending on market conditions. Mattel’s share repurchase program has no
expiration date.
Dividends
In 2008 and 2007, Mattel paid a dividend per share of $0.75 to holders of its common stock. In 2006, Mattel
paid a dividend per share of $0.65 to holders of its common stock. The Board of Directors declared the dividends
in November, and Mattel paid the dividends in December of each year. The payment of dividends on common
stock is at the discretion of the Board of Directors and is subject to customary limitations.
Comprehensive Income (Loss)
The changes in the components of comprehensive income (loss), net of tax, are as follows:
For the Year
2008 2007 2006
(In thousands)
Net income ..................................................... $379,636 $599,993 $592,927
Currency translation adjustments .................................... (192,577) 86,653 69,632
Minimum pension liability adjustments ............................... — — 21,465
Defined benefit pension plans, net prior service cost and net actuarial loss . . . (87,636) 28,316 —
Net unrealized (loss) gain on derivative instruments:
Unrealized holding gains (losses) ............................... 17,616 (38,057) (13,063)
Reclassification adjustment for realized losses included in net income . . 7,772 24,139 2,276
(254,825) 101,051 80,310
Total comprehensive income ....................................... $124,811 $701,044 $673,237
For 2008, currency translation adjustments resulted in a net loss of $192.6 million, with losses from the
weakening of the British pound sterling, Mexican Peso, Brazilian real, Euro, and Chilean peso against the US
dollar. For 2007, currency translation adjustments resulted in a net gain of $86.7 million, with gains from the
strengthening of the Euro, Brazilian real, Australian dollar, and British pound sterling against the US dollar,
partially offset by the weakening of the Indonesian rupiah and Mexican peso against the US dollar. For 2006,
currency translation adjustments resulted in a net gain of $69.6 million, with gains from the strengthening of the
Euro and British pound sterling against the US dollar being partially offset by the weakening of the Mexican
peso against the US dollar.
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