Mattel 2013 Annual Report Download - page 31

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PART II
Item 5. Market for the Registrant’s Common Equity, Related Stockholder Matters and Issuer
Purchases of Equity Securities.
Market Information
For information regarding the markets in which Mattel’s common stock, par value $1.00 per share, is traded,
see the cover page hereof. For information regarding the high and low closing prices of Mattel’s common stock
for the last two calendar years, see Item 8 “Financial Statements and Supplementary Data—Note 14 to the
Consolidated Financial Statements—Quarterly Financial Information (Unaudited).”
Holders of Record
As of February 13, 2014, Mattel had approximately 31,000 holders of record of its common stock.
Dividends
During 2013, 2012, and 2011, Mattel paid total dividends per share of $1.44, $1.24, and $0.92, respectively,
to holders of its common stock. The Board of Directors declared the dividends on a quarterly basis, and Mattel
paid the dividends during the quarters in which the dividends were declared. The payment of dividends on
common stock is at the discretion of the Board of Directors and is subject to customary limitations.
Mattel has reported a change in the tax treatment of its dividends. Mattel’s 2013 dividends are classified as a
non-dividend distribution for US federal income tax purposes. Under US federal income tax rules, corporate
dividends are designated as a dividend or a non-dividend distribution based on the applicable “earnings and
profits” of the entity paying the dividend. Although Mattel has significant retained earnings, these earnings do
not constitute “earnings and profits” as defined in US federal tax rules. Non-dividend distributions are considered
a return of capital and are generally not taxable; however, the recipient must adjust his cost basis to reflect the
distribution. For 2013, 100% of the distribution is a non-dividend distribution for US federal income tax
purposes. Mattel expects more than 50% of its future dividends to be designated as a non-dividend distribution
for US federal income tax purposes, assuming no changes to current business operations or current tax laws.
Recent Sales of Unregistered Securities
During the fourth quarter of 2013, Mattel did not sell any unregistered securities.
Issuer Purchases of Equity Securities
During 2013, Mattel repurchased 11.0 million shares of its common stock at a cost of $469.2 million.
During 2012, Mattel repurchased 2.3 million shares of its common stock at a cost of $77.9 million. During 2011,
Mattel repurchased 20.4 million shares of its common stock at a cost of $536.3 million. On July 17, 2013,
Mattel’s Board of Directors authorized the repurchase of an additional $500.0 million of Mattel’s common stock
under its share repurchase program. Mattel’s share repurchase program was first announced on July 21, 2003. At
December 31, 2013, share repurchase authorizations of $380.2 million had not been executed. Repurchases under
the program will take place from time to time, depending on market conditions. Mattel’s share repurchase
program has no expiration date.
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