Mattel 2010 Annual Report Download - page 38

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2009 Compared to 2008
Consolidated Results
Net sales for 2009 were $5.43 billion, an 8% decrease as compared to $5.92 billion in 2008, including
unfavorable changes in currency exchange rates of 2 percentage points. Net income for 2009 was $528.7 million,
or $1.45 per diluted share as compared to net income of $379.6 million, or $1.04 per diluted share, for 2008. Net
income for 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.
Gross profit as a percentage of net sales increased to 50.0% in 2009 from 45.4% in 2008. The increase in
gross profit as a percentage of net sales was primarily due to price increases and net cost savings related to the
Global Cost Leadership program, partially offset by unfavorable changes in foreign exchange rates.
Income before income taxes as a percentage of net sales increased to 12.2% in 2009 from 8.2% in 2008.
Contributing to this increase were higher gross profit and lower advertising and promotion expenses, partially
offset by higher other selling and administrative expenses.
The following table provides a summary of Mattel’s consolidated results for 2009 and 2008 (in millions,
except percentage and basis point information):
For the Year
2009 2008 Year/Year Change
Amount
% of Net
Sales Amount
% of Net
Sales %
Basis Points
of Net Sales
Net sales .................................. $5,430.8 100.0% $5,918.0 100.0% –8%
Gross profit ............................... $2,714.7 50.0% $2,684.4 45.4% 1% 460
Advertising and promotion expenses ............ 609.8 11.2 719.2 12.2 –15% (100)
Other selling and administrative expenses ........ 1,373.7 25.3 1,423.4 24.1 –3% 120
Operating income ........................... 731.2 13.5 541.8 9.2 35% 430
Interest expense ............................ 71.8 1.3 81.9 1.4 –12% (10)
Interest (income) ........................... (8.1) –0.1 (25.0) –0.4 –68% 30
Other non-operating expense (income), net ....... 7.5 (3.1)
Income before income taxes .................. $ 660.0 12.2% $ 488.0 8.2% 35% 400
Sales
Net sales for 2009 were $5.43 billion, an 8% decrease as compared to $5.92 billion in 2008, including
unfavorable changes in currency exchange rates of 2 percentage points. Gross sales within the US decreased 4%
from 2008, and accounted for 54% and 51% of consolidated gross sales in 2009 and 2008, respectively. Gross
sales in international markets decreased 13% in 2009, including unfavorable changes in currency exchange rates
of 4 percentage points.
Worldwide gross sales of Mattel Girls & Boys Brands decreased 10% to $3.29 billion in 2009 as compared
to 2008, including unfavorable changes in currency exchange rates of 3 percentage points. Domestic gross sales
of Mattel Girls & Boys Brands decreased 2% and international gross sales of Mattel Girls & Boys Brands
decreased 15%, including unfavorable changes in currency exchange rates of 4 percentage points. Worldwide
gross sales of Barbie®decreased 3%, including unfavorable changes in currency exchange rates of 3 percentage
points. Domestic gross sales of Barbie®increased 4% and international gross sales of Barbie®decreased 6%,
including unfavorable changes in currency exchange rates of 4 percentage points. Worldwide gross sales of Other
Girls Brands decreased 20%, including unfavorable changes in currency exchange rates of 2 percentage points,
30