Mattel 2011 Annual Report Download - page 6

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In 2011, we continued to build
on our operating margin im-
provements by delivering gross
margins consistent with our
long-term target of about 50%
for the third year in a row and
leveraging Mattel’s scale. Mattel
remained disciplined
and generated approximately
$665 million in cash fl ow from
operations, which the Board of
Directors deployed consistent
with our focus on increasing
Total Shareholder Return
(TSR). We also invested
in our portfolio of
intellectual properties
by acquiring HIT
Entertainment, the
home of such iconic
brands as Thomas &
Friends, Mike the Knight™,
Angelina Ballerina™, Bob the
Builder® and Fireman Sam™.
We continued to drive our focus
on the power of play through
Corporate Responsibility. In its
second year, the award-winning
Mattel 12 Days of Play™ pro-
gram embodies a creative
approach to giving with Mattel
employees worldwide foregoing
holiday parties to create extraor-
dinary, magical play experiences
for underserved children around
the world. And on the sustain-
ability front, we announced the
Mattel Sustainable Sourcing
Principles, which will advance
the use of sustainably-sourced
paper and wood fi ber in our
packaging and products.
All in all, we are proud of
Mattel’s performance in 2011!
Effective with this year’s
stockholder meeting, Tully M.
Friedman, a 28-year Mattel
director, and G. Craig Sullivan,
an 11-year Mattel director,
will retire from Board service.
I want to personally thank
Tully and Craig for their years
of service to Mattel and for
their thought-leadership during
their tenures. In the wake of
Tully’s and Craig’s retirements,
the Board has elected
Dirk Van de Put, president
and chief executive
offi cer of McCain
Foods Limited, and
Trevor A. Edwards,
vice president of global
brand and category
management of N ,
Inc., as Mattel directors.
We look forward to the
global insights and experience
Dirk and Trevor will bring to
the Board.
Lastly, as we look back on
2011, we were saddened
by the loss of Elliot Handler.
Elliot was one of the founders
of Mattel along with his
wife, Ruth. Elliot leaves behind
a legacy that we will continue
to build upon – to bring joy
to children and parents around
the world.
All in all,
we are proud
of Mattel’s
performance
in 2011!”
4
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