Mattel 2010 Annual Report Download - page 82

Download and view the complete annual report

Please find page 82 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

Mattel’s defined benefit pension plan assets are measured and reported in the financial statements at fair
value using inputs, which are more fully described in “Note 12 to the Consolidated Financial Statements—Fair
Value Measurements,” as follows:
December 31, 2010
Level 1 Level 2 Level 3 Total
(In thousands)
Collective trust funds:
US equity securities .................................... $ — $ 97,885 $ — $ 97,885
International equity securities ............................. — 115,114 — 115,114
International fixed income ............................... — 28,309 — 28,309
Short-term investments .................................. — 1,452 — 1,452
US Government and US Government agency securities ............ — 37,718 — 37,718
Corporate debt instruments ................................... — 21,306 — 21,306
Mutual funds .............................................. 3,082 — — 3,082
Other .................................................... — 11,929 — 11,929
Total ............................................ $3,082 $313,713 $ — $316,795
December 31, 2009
Level 1 Level 2 Level 3 Total
(In thousands)
Collective trust funds:
US equity securities .................................... $ — $102,494 $ — $102,494
International equity securities ............................. — 92,704 — 77,782
International fixed income ............................... — 25,269 — 25,269
US Government and US Government agency securities ............ — 36,625 — 36,625
Corporate debt instruments ................................... — 23,588 — 23,588
Mutual funds .............................................. — 4,850 — 4,850
Other .................................................... — 11,298 — 11,298
Total ............................................ $ — $296,828 $ — $296,828
The fair value of collective trust funds and mutual funds shares are determined based on the net asset value
of shares held at year-end. The fair value of US Government, US Government agency securities, and corporate
debt instruments are determined based on quoted market prices, or are estimated using pricing models, quoted
prices of securities with similar characteristics, or discounted cash flows.
Mattel’s defined benefit pension plan assets are not directly invested in Mattel common stock. Mattel
believes that the long-term rate of return on plan assets of 8.0% as of December 31, 2010 is reasonable based on
historical returns.
During 1999, Mattel amended the Fisher-Price Pension Plan to convert it from a career-average plan to a
cash balance plan and applied for a determination letter from the IRS. In 2003, Mattel amended the Fisher-Price
Pension Plan to reflect recent changes in regulations and court cases associated with cash balance plans and
submitted a new application for a determination letter to the IRS. Mattel plans to convert the Fisher-Price
Pension Plan to a cash balance plan upon receipt of a determination letter.
Defined Contribution Retirement Plans
Domestic employees are eligible to participate in a 401(k) savings plan, the Mattel, Inc. Personal Investment
Plan (the “Plan”), sponsored by Mattel, which is a funded defined contribution plan intended to comply with
ERISA’s requirements. Contributions to the Plan include voluntary contributions by eligible employees and
74