Mattel 2013 Annual Report Download - page 76

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In conjunction with the Polly Pocket trade name impairment test, Mattel reassessed the intangible asset’s
nonamortizable classification and determined that the nonamortizable classification could no longer be
supported. During the second quarter of 2013, the Polly Pocket trade name was reclassified as an amortizable
intangible asset, and the remaining fair value of the asset is being amortized over its estimated remaining useful
life.
Mattel tests nonamortizable intangible assets, including trademarks and trade names, for impairment
annually in the third quarter and whenever events or changes in circumstances indicate that the carrying values
may exceed the fair values. During 2013 and 2012, Mattel performed the annual impairment tests and determined
that the remaining nonamortizable intangible assets were not impaired.
Mattel also tests its amortizable intangible assets for impairment whenever events or changes in
circumstances indicate that the carrying value of the asset may not be recoverable. Mattel determined that its
amortizable intangible assets were not impaired during 2013 and 2012.
Note 3—Income Taxes
Consolidated pre-tax income consists of the following:
For the Year
2013 2012 2011
(In thousands)
US operations ................................................. $ 231,372 $104,707 $169,706
Foreign operations ............................................. 867,756 840,338 800,967
$1,099,128 $945,045 $970,673
The provision (benefit) for current and deferred income taxes consists of the following:
For the Year
2013 2012 2011
(In thousands)
Current
Federal .................................................... $ 38,227 $ 69,639 $ 15,933
State ...................................................... 6,447 8,660 5,268
Foreign .................................................... 130,878 126,465 131,596
175,552 204,764 152,797
Deferred
Federal .................................................... 30,342 (26,489) 49,853
State ...................................................... (512) 520 (2,629)
Foreign .................................................... (10,198) (10,214) 2,144
19,632 (36,183) 49,368
Provision for income taxes ......................................... $195,184 $168,581 $202,165
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