Mattel 2009 Annual Report Download - page 13

PART I
Item 1. Business.
Mattel, Inc. (“Mattel”) designs, manufactures, and markets a broad variety of toy products worldwide
through sales to its customers and directly to consumers. Mattel’s vision is to provide “the world’s premier toy
brands—today and tomorrow.” Management has set six key company strategies: (i) improve execution of the
existing toy business; (ii) globalize the brands; (iii) extend the brands into new areas; (iv) catch new trends,
create new brands, and enter new categories; (v) develop people; and (vi) improve productivity, simplify
processes, and maintain customer service levels.
Mattel believes its products are among the most widely recognized toy products in the world. Mattel’s
portfolio of brands and products are grouped in the following categories:
Mattel Girls & Boys Brands—including Barbie®fashion dolls and accessories (“Barbie®”), Polly Pocket®,
Little Mommy®, Disney Classics®, and High School Musical®(collectively “Other Girls Brands”),
Hot Wheels®, Matchbox®, Battle Force 5™, Speed Racer®, and Tyco R/C®vehicles and play sets
(collectively “Wheels”), and CARS™, Radica®, Toy Story®, Max Steel®, Speed Racer®, Batman®, and
Kung Fu Panda®products, and games and puzzles (collectively “Entertainment”).
Fisher-Price Brands—including Fisher-Price®, Little People®, BabyGear™, and View-Master®
(collectively “Core Fisher-Price®”), Sesame Street®, Dora the Explorer®, Go Diego Go! ®, and See ‘N Say®
(collectively “Fisher-Price®Friends”), and Power Wheels®.
American Girl Brands—including Just Like You®, the historical collection, and Bitty Baby®. American Girl
Brands products are sold directly to consumers via its catalogue, website, and proprietary retail stores. Its
children’s publications are also sold to certain retailers.
Mattel was incorporated in California in 1948 and reincorporated in Delaware in 1968. Its executive offices
are located at 333 Continental Blvd., El Segundo, California 90245-5012, telephone number [phone].
Business Segments
“Mattel” refers to Mattel, Inc. and its subsidiaries as a whole, unless the context requires otherwise. This
narrative discussion applies to all segments except where otherwise stated. Mattel’s reportable segments are
separately managed business units and are divided on a geographic basis between domestic and international.
The Domestic segment is further divided into Mattel Girls & Boys Brands US, Fisher-Price Brands US, and
American Girl Brands.
For additional information on Mattel’s operating segment reporting, including revenues, segment income,
and assets, see Item 7 “Management’s Discussion and Analysis of Financial Condition and Results of
Operations—Results of Operations—Operating Segment Results” and Item 8 “Financial Statements and
Supplementary Data—Note 15 to the Consolidated Financial Statements—Segment Information.” For additional
information regarding geographic areas, see Item 8 “Financial Statements and Supplementary Data—Note 15 to
the Consolidated Financial Statements—Segment Information.” For a discussion of the risks inherent in the
foreign operations of Mattel, which affect each segment, see Item 1A “Risk Factors—Factors That May Affect
Future Results.”
Domestic Segment
The Domestic segment develops toys that it markets and sells through the Mattel Girls & Boys Brands US,
Fisher-Price Brands US, and American Girl Brands segments.
In the Mattel Girls & Boys Brands US segment, Barbie®includes brands such as Barbie®fashion dolls and
accessories, and Polly Pocket®, Little Mommy®, Disney Classics®, and High School Musical®are included
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