Mattel 2015 Annual Report Download - page 21

17
postretirement liability and related costs. Funding obligations are determined based on the value of assets and liabilities on a
specific date as required under relevant government regulations for each plan. Future pension funding requirements, and the
timing of funding payments, could be affected by legislation enacted by the relevant governmental authorities.
If Mattel’s nonamortizable intangible assets or goodwill becomes impaired, Mattel’s results of operations could be
adversely affected.
Mattel tests its nonamortizable intangible assets, including trademarks and trade names, and goodwill for impairment
annually or more often if an event or circumstance indicates that an impairment may have occurred. The impairment test for
nonamortizable intangible assets is performed by comparing the estimated fair values of the assets with their carrying values.
Future changes in estimates used to determine the fair values may impact the fair value of Mattel’s intangible assets, which
could result in a write-down, negatively impacting its results of operations. For purposes of evaluating whether goodwill is
impaired, goodwill is allocated to various reporting units, which are at the operating segment level. Declines in profitability of
Mattel’s reporting units may impact the fair value of its reporting units, which could result in a write-down of its goodwill,
negatively impacting its results of operations.
Mattel’s stock price has been volatile over the past several years and could decline in the future, resulting in losses for
our investors.
All the factors discussed in this section or any other material announcements or events could affect our stock price. In
addition, quarterly fluctuations in our operating results, changes in investor and analyst perception of our business risks and
conditions of our business, our ability to meet earnings estimates and other performance expectations of financial analysts or
investors, unfavorable commentary or downgrades of our stock by research analysts, fluctuations in the stock prices of our peer
companies or in stock markets in general, and general economic or political conditions could also cause the price of our stock
to change. A significant drop in the price of our stock could expose us to the risk of securities class action lawsuits, which could
result in substantial costs and divert management’s attention and resources, adversely affecting our business.
* * * * * * * * * * * * * * * * *
If any of the risks and uncertainties described in the cautionary risk factors listed above actually occurs, Mattel’s
business, financial condition and results of operations could be significantly and adversely affected. The risk factors listed
above are not exhaustive. Other sections of this Annual Report on Form 10-K include additional factors that could materially
and adversely impact Mattel’s business, financial condition and results of operations. Moreover, Mattel operates in a very
competitive and rapidly changing environment. New factors emerge from time to time, and it is not possible for management to
predict the impact of all of these factors on Mattel’s business, financial condition or results of operations, or the extent to which
any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking
statements. Given these risks and uncertainties, investors should not rely on forward-looking statements as a prediction of
actual results. Any or all of the forward-looking statements contained in this Annual Report on Form 10-K and any other public
statement made by Mattel or its representatives may turn out to be wrong. Mattel expressly disclaims any obligation to update
or revise any forward-looking statements, whether as a result of new developments or otherwise.
Item 1B. Unresolved Staff Comments.
None.
Item 2. Properties.
Mattel owns its corporate headquarters in El Segundo, California, consisting of approximately 335,000 square feet, and
an adjacent office building consisting of approximately 55,000 square feet. Mattel also leases buildings in El Segundo
consisting of approximately 327,000 square feet. All segments use these facilities. Mattel also owns facilities in East Aurora,
New York, consisting of approximately 535,000 square feet, which is used by the North America segment and for brand and
corporate support functions. American Girl owns its headquarters facilities in Middleton, Wisconsin, consisting of
approximately 180,000 square feet, a warehouse in Middleton, consisting of approximately 215,000 square feet, and
distribution facilities in Middleton, DeForest, and Wilmot, Wisconsin, consisting of a total of approximately 948,000 square
feet, all of which are used by the American Girl segment. Additionally, Mattel leases a facility in Montreal, Canada, consisting
of approximately 817,000 square feet, which is used for brand support and manufacturing functions, and a warehouse in
Lachine, Canada, consisting of approximately 360,000 square feet. These facilities in Canada are used by both the North
America and International segments. Mattel also owns its principal manufacturing facilities located in Indonesia, Malaysia,
Mexico, and Thailand.