Mattel 2013 Annual Report Download - page 44

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International Segment
The following table provides a summary of percentage changes in gross sales within the International
segment in 2012 versus 2011:
% Change in
Gross Sales
Impact of Change in
Currency Rates
(in % pts)
Total International Segment ......................................... 4 –6
Europe ...................................................... 4 –6
Latin America ................................................ 2 –7
Asia Pacific .................................................. 13 –2
The following table provides a summary of Mattel’s gross sales by brand for the International segment for
2012 and 2011:
For the Year
2012 2011 % Change
(In millions, except percentage
information)
Mattel Girls & Boys Brands:
Barbie .......................................................... $ 752.7 $ 773.6 –3%
Other Girls ...................................................... 557.7 336.4 66%
Wheels ......................................................... 419.2 428.7 –2%
Entertainment .................................................... 553.0 677.0 –18%
2,282.6 2,215.7 3%
Fisher-Price Brands:
Core Fisher-Price ................................................. 586.0 600.6 –2%
Fisher-Price Friends ............................................... 239.2 166.9 43%
Other Fisher-Price ................................................. 17.8 15.9 11%
843.0 783.4 8%
Other .......................................................... 0.5 2.6
Total Gross Sales ............................................. $3,126.1 $3,001.7 4%
Gross sales for the International segment were $3.13 billion in 2012, up $124.4 million or 4%, as compared
to $3.0 billion in 2011, with an unfavorable impact from changes in currency exchange rates of 6 percentage
points. The increase in the International segment gross sales was due to higher sales of Other Girls and
Fisher-Price Friends products, partially offset by lower sales of Entertainment products. Of the 66% increase in
Other Girls gross sales, 62% was due to higher sales of Monster High products. Of the 43% increase in
Fisher-Price Friends gross sales, 36% was due to the benefit of licensing revenues from the acquisition of HIT
Entertainment, and 14% was due to higher sales of Disney Jake and the Never Land Pirates products. Of the 18%
decrease in Entertainment gross sales, 20% was due to lower sales of CARS 2 products resulting from the timing
of the movie release during 2011. Cost of sales decreased by 2% in 2012, as compared to a 4% increase in net
sales, primarily due to lower product and other costs, lower royalty expenses, and lower freight and logistics
expenses. Gross margins increased as a result of favorable product mix, savings from manufacturing efficiency
and Operational Excellence 2.0 programs, favorable changes in currency exchange rates, and price increases
partially offset by higher input costs, which were partially offset by higher customer benefits. Additionally, gross
margins were positively impacted by the acquisition of HIT Entertainment.
International segment income increased 11% to $571.4 million in 2012, as compared to $513.4 million in
2011, driven primarily by higher gross profit, partially offset by higher other selling and administrative expenses.
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