Mattel 2013 Annual Report Download - page 13

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Imaginext will continue to encourage imagination, language, and social skills with a new space-themed product
line. New character-based toys inspired by children’s programming will include Disney Jake and the Never Land
Pirates Battle at Shipwreck Falls, Minnie’s Polka Dot House, and Dora & Friends™ Chat & Sparkle Dora®. The
Thomas & Friends brand will feature new products to support the release of the Spills & Thrills DVD in spring
2014 and the Tale of the Brave DVD in fall 2014. In addition, Thomas & Friends will continue to be supported
with various product lines, including a TrackMaster®Revolution re-launch in fall 2014.
International Segment
Products marketed by the International segment are generally the same as those developed and marketed by
the North America segment, although some are developed or adapted for particular international markets.
Mattel’s products are sold directly to retailers and wholesalers in most European, Latin American, and Asian
countries, and in Australia and New Zealand, and through agents and distributors in those countries where Mattel
has no direct presence.
Mattel’s International segment revenue represented 46% of worldwide consolidated gross sales in 2013.
Within the International segment, Mattel operates in three regional groups that generated the following gross
sales during 2013:
Amount
Percentage of
International
Gross Sales
(In millions, except
percentage information)
Europe .............................................................. $1,806.7 55%
Latin America ......................................................... 1,011.7 31%
Asia Pacific .......................................................... 459.4 14%
$3,277.8 100%
No individual country within the International segment exceeded 7% of worldwide consolidated gross sales
during 2013.
The strength of the US dollar relative to other currencies can significantly affect the revenues and
profitability of Mattel’s international operations. Mattel enters into foreign currency forward exchange contracts,
primarily to hedge its purchase and sale of inventory and other intercompany transactions denominated in foreign
currencies, to limit the impact of exchange rate fluctuations on its results of operations and cash flows. See Part
II, Item 7A “Quantitative and Qualitative Disclosures About Market Risk” and Part II, Item 8 “Financial
Statements and Supplementary Data—Note 9 to the Consolidated Financial Statements—Derivative
Instruments.” For financial information by geographic area, see Part II, Item 8 “Financial Statements and
Supplementary Data—Note 12 to the Consolidated Financial Statements—Segment Information.”
American Girl Segment
The American Girl segment is a direct marketer, children’s publisher, and retailer best known for its
flagship line of historical dolls, books, and accessories, as well as the My American Girl and Bitty Baby brands.
American Girl also publishes best-selling Advice & Activity books and the award-winning American Girl
magazine. In January 2014, American Girl introduced Isabelle™, the 2014 Girl of the Year®doll. American Girl
products are sold in the US and Canada.
Manufacturing and Materials
Mattel manufactures toy products for all segments in both company-owned facilities and through third-party
manufacturers. Products are also purchased from unrelated entities that design, develop, and manufacture those
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