Mattel 2012 Annual Report Download - page 46

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International Segment
The following table provides a summary of percentage changes in gross sales within the International
segment in 2011 versus 2010:
% Change in
Gross Sales
Impact of Change in
Currency Rates
(in % pts)
Total International ................................................. 12 3
Europe ...................................................... 10 3
Latin America ................................................ 14 1
Asia Pacific .................................................. 15 5
Gross sales for the International segment were $3.00 billion in 2011, up $322.4 million or 12%, as compared
to $2.68 billion in 2010, with favorable changes in currency exchange rates of 3 percentage points. Gross sales of
Mattel Girls & Boys Brands increased 17%, with favorable changes in currency exchange rates of 3 percentage
points. Gross sales of Barbie increased 14%, with favorable changes in currency exchange rates of 3 percentage
points. Gross sales of Other Girls Brands increased 34%, with favorable changes in currency exchange rates of 3
percentage points, driven primarily by higher sales of Monster High and Disney Princess products, partially
offset by lower sales of Polly Pocket and Little Mommy products. Gross sales of Wheels products increased
11%, with favorable changes in currency exchange rates of 2 percentage points, driven primarily by higher sales
of Hot Wheels products. Gross sales of Entertainment products increased by 17%, with favorable changes in
currency exchange rates of 4 percentage points, driven primarily by higher sales of CARS 2 products, partially
offset by lower sales of Toy Story 3 products. Fisher-Price Brands gross sales were flat with 2010, with favorable
changes in currency exchange rates of 2 percentage points. Gross sales of Core Fisher-Price products increased
3%, with favorable changes in currency exchange rates of 2 percentage points. Gross sales of Fisher-Price
Friends products decreased 10%, with favorable changes in currency exchange rates of 2 percentage points,
driven primarily by the discontinuation of the Sesame Street license. Cost of sales increased 14% in 2011, as
compared to a 12% increase in net sales, primarily due to higher product and other costs and higher royalty
expenses. Gross margins decreased primarily due to higher input costs and unfavorable changes in foreign
currency exchange rates, partially offset by price increases.
International segment income increased 5% to $513.4 million in 2011 from $490.7 million in 2010, driven
primarily by higher net sales, partially offset by lower gross margins.
American Girl Segment
Gross sales for the American Girl segment were $542.4 million in 2011, up $25.4 million or 5%, as
compared to $517.0 million in 2010, driven primarily by sales from the American Girl virtual world and
Kanani®, the 2011 Girl of the Year doll, and the benefit of two new American Girl stores in McLean, Virginia
and Lynwood, Washington, which opened in June 2011 and July 2011, respectively. Cost of sales increased by
6% in 2011, as compared to a 5% increase in net sales, driven primarily by higher product and other costs and
freight and logistics expenses. Gross margins decreased slightly driven primarily by higher input costs, partially
offset by price increases.
American Girl segment income decreased 2% to $111.1 million in 2011 from $113.4 million in 2010, driven
primarily by higher other selling and administrative expenses from retail expansion and higher advertising and
promotion expenses, partially offset by higher net sales.
34