Mattel 2010 Annual Report Download - page 71

financial assets; the effects of the transfer on its financial position, financial performance, and cash flows; and a
transferor’s continuing involvement, if any, in transferred financial assets. This pronouncement also eliminates
the concept of a qualifying special-purpose entity, creates more stringent conditions for reporting a transfer of a
portion of a financial asset as a sale, clarifies other sale-accounting criteria, and changes the initial measurement
of a transferor’s interest in transferred financial assets. The adoption of this pronouncement did not impact
Mattel’s financial position or results of operations during 2010.
During 2010, Mattel adopted ASU 2009-17, Improvements to Financial Reporting by Enterprises Involved
with Variable Interest Entities. This pronouncement requires an enterprise to determine whether its variable
interest or interests give it a controlling financial interest in a variable interest entity. The primary beneficiary of
a variable interest entity is the enterprise that has both (i) the power to direct the activities of a variable interest
entity that most significantly impact the entity’s economic performance, and (ii) the obligation to absorb losses of
the entity that could potentially be significant to the variable interest entity or the right to receive benefits from
the entity that could potentially be significant to the variable interest entity. The adoption of this pronouncement
did not impact Mattel’s financial position or results of operations during 2010.
During 2010, Mattel adopted ASU 2010-11, Derivatives and Hedging (Topic 815): Scope Exception Related
to Embedded Credit Derivatives. This pronouncement eliminates the derivative scope exception for most credit
derivative features embedded in beneficial interests in securitized financial assets, clarifies that the derivative
scope exception related to subordination applies only to the embedded credit derivative features created by the
transfer of credit risk between tranches as a result of subordination, and allows an entity to elect the fair value
option for any beneficial interest in securitized financial assets upon adoption of the pronouncement. The
adoption of this pronouncement did not materially impact Mattel’s financial position or results of operations
during 2010 (see “Note 12 to the Consolidated Financial Statements—Fair Value Measurements”).
Note 2—Goodwill and Other Intangibles
The change in the carrying amount of goodwill by reporting unit for 2010 and 2009 is shown below. Brand-
specific goodwill held by foreign subsidiaries is allocated to the US reporting units selling those brands, thereby
causing foreign currency translation impact to the US reporting units.
Mattel
Girls Brands
US
Mattel
Boys Brands
US
Fisher-
Price
Brands
US
American Girl
Brands International Total
(In thousands)
Balance at December 31, 2008 .... $29,224 $130,883 $215,520 $207,571 $232,605 $815,803
Impact of currency exchange rate
changes .................... 2,858 (146) 560 — 9,393 12,665
Balance at December 31, 2009 .... 32,082 130,737 216,080 207,571 241,998 828,468
Impact of currency exchange rate
changes .................... (1,011) (79) (201) — (3,170) (4,461)
Balance at December 31, 2010 .... $31,071 $130,658 $215,879 $207,571 $238,828 $824,007
In 2010, Mattel performed the annually required impairment tests and determined that its goodwill was not
impaired. Mattel has not recorded any goodwill impairment subsequent to its initial adoption of ASC 350-20
(formerly SFAS No. 142, Goodwill and Other Intangible Assets), which was on January 1, 2002.
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