Mattel 2013 Annual Report Download - page 80

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deferred tax liability associated with these undistributed earnings due to the availability of foreign tax credits, the
complexity of our international holding company structure, the rules governing the utilization of foreign tax
credits, and the interplay between utilization of such foreign tax credits and Mattel’s other significant tax
attributes.
US GAAP requires that windfall income tax benefits related to the exercise of nonqualified stock options
and vesting of other stock compensation awards be credited to additional paid-in capital in the period in which
such amounts reduce current taxes payable. The exercise of nonqualified stock options and vesting of other stock
compensation awards resulted in an increase to additional paid-in capital for related windfall income tax benefits
totaling $50.4 million, $35.8 million, and $24.2 million in 2013, 2012, and 2011, respectively.
Note 4—Employee Benefit Plans
Mattel and certain of its subsidiaries have qualified and nonqualified retirement plans covering substantially
all employees of these companies. These plans include defined benefit pension plans, defined contribution
retirement plans, postretirement benefit plans, and deferred compensation and excess benefit plans. In addition,
Mattel makes contributions to government-mandated retirement plans in countries outside the US where its
employees work.
A summary of retirement plan expense is as follows:
For the Year
2013 2012 2011
(In thousands)
Defined contribution retirement plans ................................... $43,694 $40,266 $36,873
Defined benefit pension plans ......................................... 30,747 33,597 37,597
Deferred compensation and excess benefit plans ........................... 9,298 5,740 730
Postretirement benefit plans ........................................... 2,245 1,607 1,601
$85,984 $81,210 $76,801
Defined Benefit Pension and Postretirement Benefit Plans
Mattel provides defined benefit pension plans for eligible domestic employees, which are intended to
comply with the requirements of the Employee Retirement Income Security Act of 1974 (“ERISA”). Some of
Mattel’s foreign subsidiaries have defined benefit pension plans covering substantially all of their eligible
employees. Mattel funds these plans in accordance with the terms of the plans and local statutory requirements,
which differ for each of the countries in which the subsidiaries are located. Mattel also has unfunded
postretirement health insurance plans covering certain eligible domestic employees.
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