Mattel 2011 Annual Report Download - page 74

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defers specific requirements to present reclassification adjustments for each component of accumulated other
comprehensive income. ASU 2011-05 will be retroactively effective for Mattel for fiscal years beginning after
December 15, 2011. Mattel does not expect the adoption of ASU 2011-05 to have a material effect on its
operating results or financial position.
In September 2011, the FASB issued ASU 2011-08, Intangibles – Goodwill and Other (Topic 350): Testing
Goodwill for Impairment, which permits an entity to first assess qualitative factors to determine whether it is
more likely than not that the fair value of a reporting unit is less than its carrying value as a basis for determining
whether it is necessary to perform the two-step goodwill impairment test. ASU 2011-08 will be effective for
Mattel for fiscal years beginning after December 15, 2011. Mattel does not expect the adoption of ASU 2011-08
to have a material effect on its operating results or financial position.
In December 2011, the FASB issued ASU 2011-11, Balance Sheet (Topic 210): Disclosure about Offsetting
Assets and Liabilities, which requires an entity to include additional disclosures about financial instruments and
transactions eligible for offset in the statement of financial position, as well as financial instruments subject to a
master netting agreement or similar arrangement. ASU 2011-11 will be retroactively effective for Mattel for
fiscal years beginning on or after January 1, 2013. Mattel does not expect the adoption of ASU 2011-11 to have a
material effect on its operating results or financial position.
Note 2—Goodwill and Other Intangibles
The change in the carrying value of goodwill by reporting unit for 2011 and 2010 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, 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
Impact of currency exchange rate
changes .................... (125) (9) (24) — (1,710) (1,868)
Balance at December 31, 2011 . . . $30,946 $130,649 $215,855 $207,571 $237,118 $822,139
In 2011, 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 Accounting
Standards Codification (“ASC”) 350-20, Goodwill, on January 1, 2002.
Identifiable intangibles include the following:
December 31,
2011 2010
(In thousands)
Nonamortizable identifiable intangibles ........................................ $122,223 $122,223
Identifiable intangibles (net of amortization of $55.5 million and $64.2 million at
December 31, 2011 and 2010, respectively) ................................... 84,486 91,359
$206,709 $213,582
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