Mattel 2009 Annual Report Download - page 92

Comprehensive Income
The changes in the components of comprehensive income, net of tax, are as follows:
For the Year
2009 2008 2007
(In thousands)
Net income .................................................... $528,704 $ 379,636 $599,993
Currency translation adjustments ................................... 52,210 (192,577) 86,653
Defined benefit pension plans, net prior service cost and net actuarial loss . . 18,696 (87,636) 28,316
Net unrealized (loss) gain on derivative instruments:
Unrealized holding (losses) gains ............................... (29,602) 17,616 (38,057)
Reclassification adjustment for realized losses included in net
income .................................................. 9,797 7,772 24,139
51,101 (254,825) 101,051
$579,805 $ 124,811 $701,044
For 2009, currency translation adjustments resulted in a net gain of $52.2 million, with gains from the
strengthening of the Brazilian real, Euro, Chilean peso, and British pound sterling against the US dollar. 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.
The components of accumulated other comprehensive loss are as follows:
December 31,
2009 2008
(In thousands)
Currency translation adjustments ............................................ $(222,641) $(274,851)
Defined benefit pension and other postretirement plans, net of tax .................. (142,017) (160,713)
Net unrealized (loss) gain on derivative instruments, net of tax .................... (14,876) 4,929
$(379,534) $(430,635)
Note 10—Share-Based Payments
Mattel Stock Option Plans
In May 2005, Mattel’s stockholders approved the Mattel, Inc. 2005 Equity Compensation Plan
(the “2005 Plan”). Upon approval of the 2005 Plan, Mattel terminated its Amended and Restated 1996 Stock
Option Plan (the “1996 Plan”) and its 1999 Stock Option Plan (the “1999 Plan”), except with respect to grants
then outstanding under the 1996 Plan and the 1999 Plan. Restricted stock awards made under the 1996 Plan
continue to vest pursuant to the terms of their respective grant agreements. Outstanding stock option grants under
plans that have expired or have been terminated continue to be exercisable under the terms of their respective
grant agreements. All such stock options expire no later than ten years from the date of grant and generally
provide for vesting over a period of three years from the date of grant. Stock options generally were granted with
exercise prices equal to the fair market value of Mattel’s common stock on the date of grant, although there are
some outstanding stock options that were granted with an exercise price in excess of the fair market value of
Mattel’s common stock on the date of grant, as to which vesting was dependent upon Mattel’s common stock
achieving a specified fair market value during a specified time period. Options were granted to non-employee
members of Mattel’s Board of Directors under the 1996 Plan with exercise prices equal to the fair market value
of Mattel’s common stock on the date of grant; such options expire no later than ten years from the date of grant
and vest over a period of four years from the date of grant.
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