Mattel 2010 Annual Report Download - page 88

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Comprehensive Income
The changes in the components of comprehensive income, net of tax, are as follows:
For the Year
2010 2009 2008
(In thousands)
Net income .................................................... $684,863 $528,704 $ 379,636
Currency translation adjustments ................................... 883 52,210 (192,577)
Defined benefit pension plans, net prior service cost and net actuarial loss . . 7,703 18,696 (87,636)
Net unrealized gain (loss) on derivative instruments:
Unrealized holding gains (losses) ............................... 8,725 (29,602) 17,616
Reclassification adjustment for realized losses included in net
income .................................................. 3,024 9,797 7,772
11,749 (19,805) 25,388
$705,198 $579,805 $ 124,811
For 2010, currency translation adjustments resulted in a net gain of $0.9 million, with gains from the
strengthening of the Mexican peso, Brazilian real, and Chilean peso against the US dollar, partially offset by the
weakening of the Euro and British pound sterling against the US dollar. 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.
The components of accumulated other comprehensive loss are as follows:
December 31,
2010 2009
(In thousands)
Currency translation adjustments ............................................ $(221,758) $(222,641)
Defined benefit pension and other postretirement plans, net of tax .................. (134,314) (142,017)
Net unrealized loss on derivative instruments, net of tax .......................... (3,127) (14,876)
$(359,199) $(379,534)
Note 9—Share-Based Payments
Mattel Stock Option Plans
In May 2010, Mattel’s stockholders approved the Mattel, Inc. 2010 Equity and Long-Term Compensation
Plan (the “2010 Plan”). Upon approval of the 2010 Plan, Mattel terminated its 2005 Equity Compensation Plan
(the “2005 Plan”), except with respect to grants then outstanding under the 2005 Plan. RSU awards made under
the 2005 Plan continue to vest pursuant to the terms of their respective grant agreements. Outstanding stock
option grants under the 2005 Plan that have not expired or have not been terminated continue to be exercisable
under the terms of their respective grant agreements. The terms of the 2010 Plan are substantially similar to the
2005 Plan.
Under the 2010 Plan, Mattel has the ability to grant nonqualified stock options, incentive stock options,
stock appreciation rights, restricted stock, RSUs, dividend equivalent rights, and shares of common stock to
officers, employees, and other persons providing services to Mattel. Generally, options vest and become
exercisable contingent upon the grantees’ continued employment or service with Mattel. Nonqualified stock
options are granted at not less than 100% of the fair market value of Mattel’s common stock on the date of grant,
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