Mattel 2010 Annual Report Download - page 32

Download and view the complete annual report

Please find page 32 of the 2010 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 136

  • 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
  • 135
  • 136

Item 6. Selected Financial Data.
For the Year Ended December 31,
2010 2009 2008 2007 2006
(In thousands, except per share and percentage information)
Operating Results:
Net sales .............................. $5,856,195 $5,430,846 $5,918,002 $5,970,090 $5,650,156
Gross profit ............................ 2,954,973 2,714,697 2,684,406 2,777,300 2,611,793
% of net sales ......................... 50.5% 50.0% 45.4% 46.5% 46.2%
Operating income ....................... 901,902 731,168 541,792 730,078 728,818
% of net sales ......................... 15.4% 13.5% 9.2% 12.2% 12.9%
Income before income taxes ............... 846,825 660,047 487,964 703,398 683,756
Provision for income taxes (a) ............. 161,962 131,343 108,328 103,405 90,829
Net income ............................ $ 684,863 $ 528,704 $ 379,636 $ 599,993 $ 592,927
Net income per common share—basic ..... $ 1.88 $ 1.45 $ 1.04 $ 1.55 $ 1.54
Net income per common share—diluted .... $ 1.86 $ 1.45 $ 1.04 $ 1.53 $ 1.53
Dividends declared per common share ..... $ 0.83 $ 0.75 $ 0.75 $ 0.75 $ 0.65
December 31,
2010 2009 2008 2007 2006
(In thousands)
Financial Position:
Total assets ............................ $5,417,733 $4,780,555 $4,675,039 $4,805,455 $4,955,884
Noncurrent liabilities ..................... 1,438,867 1,188,692 1,297,930 928,284 940,390
Stockholders’ equity ..................... 2,628,584 2,530,989 2,117,135 2,306,742 2,432,974
(a) The provision for income taxes in 2010 was positively impacted by net tax benefits of $16.8 million,
primarily related to the release of a valuation allowance related to the anticipated utilization of excess
foreign tax credit carryforwards, reassessments of prior years’ tax liabilities based on the status of current
audits and tax filings in various jurisdictions around the world, settlements, and enacted tax law changes,
partially offset by the incremental tax cost to repatriate earnings from certain foreign subsidiaries for which
income taxes had not been previously provided. The provision for income taxes in 2009 was positively
impacted by net tax benefits of $28.8 million related to reassessments of prior years’ tax liabilities based on
the status of audits in various jurisdictions around the world, settlements, and enacted tax law changes. The
provision for income taxes in 2007 was positively impacted by net tax benefits of $42.0 million related to
reassessments of prior years’ tax liabilities based on the status of 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 passed in May 2006,
and tax benefits of $63.0 million related to tax settlements and refunds as a result of ongoing audits with
foreign and state tax authorities.
24