Mattel 2011 Annual Report Download - page 85

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plan assets, are 35% in US equities, 35% in non-US equities, 20% in US long-term bonds, and 10% in US
Treasury inflation protected securities. The US equities are benchmarked against the S&P 500 and the non-US
equities are benchmarked against a combination of developed and emerging markets indexes. Fixed income
securities are long-duration bonds intended to closely match the duration of the liabilities and include US
government treasuries and agencies, corporate bonds from various industries, and mortgage-backed and asset-
backed securities.
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, 2011
Level 1 Level 2 Level 3 Total
(In thousands)
Collective trust funds:
US equity securities .................................... $ — $101,747 $ — $101,747
International equity securities ............................. — 101,956 — 101,956
International fixed income ............................... — 36,128 — 36,128
US government and US government agency securities ............. — 51,897 — 51,897
US corporate debt instruments ................................ — 19,346 — 19,346
International corporate debt instruments ........................ — 5,887 — 5,887
Mutual funds .............................................. 4,883 — — 4,883
Other .................................................... — 16,237 — 16,237
Total ............................................ $4,883 $333,198 $ — $338,081
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
US corporate debt instruments ................................ — 16,301 — 16,301
International corporate debt instruments ........................ — 5,005 — 5,005
Mutual funds .............................................. 3,082 — — 3,082
Other .................................................... — 11,929 — 11,929
Total ............................................ $3,082 $313,713 $ — $316,795
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 securities, 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, 2011 is reasonable based on
historical returns.
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