Mattel 2013 Annual Report Download - page 106

Download and view the complete annual report

Please find page 106 of the 2013 Mattel annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 132

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132

Segment Data
The following tables present information about revenues, income, and assets by segment. Mattel does not
include sales adjustments such as trade discounts and other allowances in the calculation of segment revenues
(referred to as “gross sales”). Mattel records these adjustments in its financial accounting systems at the time of
sale to each customer, but the adjustments are not allocated to individual products. For this reason, Mattel’s
CODM uses gross sales by segment as one of the metrics to measure segment performance. Such sales
adjustments are included in the determination of segment income from operations based on the adjustments
recorded in the financial accounting systems. Segment income represents each segment’s operating income,
while consolidated operating income represents income from operations before net interest, other non-operating
income, and income taxes as reported in the consolidated statements of operations. The corporate and other
expense category includes costs not allocated to individual segments, including charges related to incentive
compensation, share-based payments, and corporate headquarters functions managed on a worldwide basis, and
the impact of changes in foreign currency rates on intercompany transactions.
For the Year
2013 2012 2011
(In thousands)
Revenues by Segment
North America .............................................. $3,181,205 $3,330,217 $3,296,995
International ............................................... 3,277,840 3,126,088 3,001,705
American Girl .............................................. 658,768 596,298 542,387
Gross sales ................................................. 7,117,813 7,052,603 6,841,087
Sales adjustments ........................................... (632,921) (631,722) (575,050)
Net sales .................................................. $6,484,892 $6,420,881 $6,266,037
Segment Income
North America .............................................. $ 723,834 $ 810,271 $ 770,276
International ............................................... 622,910 571,413 513,414
American Girl .............................................. 138,029 121,642 111,104
1,484,773 1,503,326 1,394,794
Corporate and other expense (a) ................................ (316,670) (482,311) (353,693)
Operating income ........................................... 1,168,103 1,021,015 1,041,101
Interest expense ............................................. 78,505 88,835 75,332
Interest (income) ............................................ (5,555) (6,841) (8,093)
Other non-operating (income) expense, net ....................... (3,975) (6,024) 3,189
Income before income taxes ................................... $1,099,128 $ 945,045 $ 970,673
(a) Corporate and other expense includes (i) incentive compensation expense of $65.0 million, $108.1 million,
and $75.3 million for 2013, 2012, and 2011, respectively, (ii) $17.6 million, $13.4 million, and $14.9 million
of charges related to severance and other termination-related costs for 2013, 2012, and 2011, respectively,
(iii) share-based compensation expense of $61.7 million, $63.3 million, and $53.5 million for 2013, 2012,
and 2011, respectively, (iv) the Litigation Charge of $137.8 million for 2012, (v) $7.5 million Gunther-Wahl
Productions legal settlement for 2011, and (vi) legal fees associated with MGA litigation matters.
98