Mattel 2011 Annual Report Download - page 81

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In connection with these cost savings programs, Mattel recorded severance and other termination-related
charges of $14.9 million, $13.0 million, and $31.5 million during 2011, 2010, and 2009, respectively, which are
included within other selling and administrative expenses. The following table summarizes Mattel’s severance
and other termination costs activity:
Severance
Other
Termination
Costs Total
(In thousands)
Balance at December 31, 2008 .................................... $17,115 $ 881 $ 17,996
Charges ....................................................... 31,176 324 31,500
Payments ...................................................... (29,508) (980) (30,488)
Balance at December 31, 2009 .................................... 18,783 225 19,008
Charges ....................................................... 12,951 10 12,961
Payments ...................................................... (26,463) (90) (26,553)
Balance at December 31, 2010 .................................... 5,271 145 5,416
Charges ....................................................... 14,806 54 14,860
Payments ...................................................... (15,747) (40) (15,787)
Balance at December 31, 2011 .................................... $ 4,330 $ 159 $ 4,489
Note 6—Employee Benefit Plans
Mattel and certain of its subsidiaries have qualified and nonqualified retirement plans covering substantially
all employees of these companies. These plans include defined benefit pension plans, defined contribution
retirement plans, postretirement benefit plans, and deferred compensation and excess benefit plans. In addition,
Mattel makes contributions to government-mandated retirement plans in countries outside the US where its
employees work.
A summary of retirement plan expense is as follows:
For the Year
2011 2010 2009
(In millions)
Defined contribution retirement plans ......................................... $36.9 $33.3 $33.4
Defined benefit pension plans ............................................... 37.6 31.7 27.7
Deferred compensation and excess benefit plans ................................. 0.7 4.6 6.0
Postretirement benefit plans ................................................. 1.6 1.9 2.6
$76.8 $71.5 $69.7
Defined Benefit Pension and Postretirement Benefit Plans
Mattel provides defined benefit pension plans for eligible domestic employees, which are intended to
comply with the requirements of the Employee Retirement Income Security Act of 1974 (“ERISA”). Some of
Mattel’s foreign subsidiaries have defined benefit pension plans covering substantially all of their eligible
employees. Mattel funds these plans in accordance with the terms of the plans and local statutory requirements,
which differ for each of the countries in which the subsidiaries are located. Mattel also has unfunded
postretirement health insurance plans covering certain eligible domestic employees.
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