Mattel 2009 Annual Report Download - page 59

Download and view the complete annual report

Please find page 59 of the 2009 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 134

  • 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
  • 131
  • 132
  • 133
  • 134

New Accounting Pronouncements
See Item 8 “Financial Statements and Supplementary Data—Note 1 to the Consolidated Financial
Statements—Summary of Significant Accounting Policies.”
Non-GAAP Financial Measure
In this Annual Report on Form 10-K, Mattel includes a non-GAAP financial measure, gross sales, which it
uses to analyze its operations and to monitor, assess and identify meaningful trends in its operating and financial
performance. Net sales, as reported in the consolidated statements of operations, include the impact of sales
adjustments such as trade discounts and other allowances. Gross sales represent sales to customers, excluding the
impact of sales adjustments, the 2007 Product Recalls, and the 2008 Product Withdrawal. Consistent with its
segment reporting, Mattel presents changes in gross sales as a metric for comparing its aggregate, business unit,
brand and geographic results to highlight significant trends in Mattel’s business. Changes in gross sales are
discussed because, while Mattel records the detail of such sales adjustments in its financial accounting systems at
the time of sale, such sales adjustments are generally not associated with individual products, making net sales
less meaningful.
A reconciliation of gross sales to the most directly comparable GAAP financial measure, net sales, is as
follows:
For the Year
2009 2008 2007
(In thousands)
Revenues
Domestic:
Mattel Girls & Boys Brands US ............................ $1,402,224 $1,437,933 $1,445,028
Fisher-Price Brands US ................................... 1,310,886 1,418,213 1,511,055
American Girl Brands .................................... 462,899 463,056 431,510
Total Domestic ............................................. 3,176,009 3,319,202 3,387,593
International ............................................... 2,758,315 3,166,820 3,205,341
Gross sales ................................................. 5,934,324 6,486,022 6,592,934
Sales adjustments ........................................... (503,478) (568,020) (622,844)
Net sales .................................................. $5,430,846 $5,918,002 $5,970,090
49