Mattel 2015 Annual Report Download - page 79

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The following table presents the classification and amount of the reclassifications from accumulated other comprehensive
income (loss) to the consolidated statement of operations:
For the Year Statements of Operations
Classification
2015 2014 2013
(In thousands)
Derivative Instruments
Gain (loss) on foreign currency forward
exchange contracts $ 52,037 $ (916)$ (5,735) Cost of sales
551 33 838 Provision for income taxes
$ 52,588 $ (883)$ (4,897) Net income
Defined Benefit Pension Plans
Amortization of prior service credit $ 465 $ 1,037 $ 1,057 (a)
Recognized actuarial loss (15,316) (15,788)(21,771)(a)
Settlement loss (6,453) — (1,835)
Other selling and
administrative expenses
Curtailment gain 8,639 — —
Other selling and
administrative expenses
(12,665) (14,751)(22,549)
4,573 5,343 8,127 Provision for income taxes
$ (8,092) $ (9,408)$ (14,422) Net income
(a) The amortization of prior service credit and recognized actuarial loss are included in the computation of net periodic
benefit cost. Refer to “Note 4 to the Consolidated Financial Statements—Employee Benefit Plans” for additional
information regarding Mattel’s net periodic benefit cost.
Currency Translation Adjustments
For 2015, currency translation adjustments resulted in a net loss of $213.8 million, primarily due to the weakening of the
Euro, Brazilian real, Mexican peso, and British pound sterling against the US dollar. For 2014, currency translation adjustments
resulted in a net loss of $189.7 million, primarily due to the weakening of the Euro, Mexican peso, British pound sterling,
Russian ruble, and Brazilian real against the US dollar. For 2013, currency translation adjustments resulted in a net loss of
$29.7 million, primarily due to the weakening of the Brazilian real, Australian dollar, and Indonesian rupiah against the US
dollar, partially offset by the strengthening of the Euro against the US dollar.
Note 7—Share-Based Payments
Mattel Stock Option Plans
In May 2015, Mattel’s stockholders approved the Mattel, Inc. Amended and Restated 2010 Equity and Long-Term
Compensation Plan (the “Amended 2010 Plan”). The 2010 Equity and Long-Term Compensation Plan was approved by
Mattel's stockholders in May 2010 (the "2010 Plan"). Upon approval of the 2010 Plan, Mattel terminated its 2005 Equity
Compensation Plan (the “2005 Plan”), except with respect to grants then outstanding under the 2005 Plan. All restricted stock
unit (“RSU”) awards made under the 2005 Plan have vested as of December 31, 2015. Outstanding stock option grants under
the 2005 Plan that have not expired or have not been terminated continue to be exercisable under the terms of their respective
grant agreements. The terms of the Amended 2010 Plan are substantially similar to the terms of the 2010 Plan and the 2005
Plan.
Under the Amended 2010 Plan, Mattel has the ability to grant nonqualified stock options, incentive stock options, stock
appreciation rights, restricted stock, RSUs, dividend equivalent rights, performance awards, and shares of common stock to
officers, employees, and other persons providing services to Mattel. Generally, options vest and become exercisable contingent
upon the grantees’ continued employment or service with Mattel. Nonqualified stock options are granted at not less than 100%
of the fair market value of Mattel’s common stock on the date of grant, expire no later than 10 years from the date of grant, and
vest on a schedule determined by the Compensation Committee of the Board of Directors, generally during a period of 3 years
from the date of grant. In the event of a retirement of an employee aged 55 years or older with 5 or more years of service, or the
death or disability of an employee, that occurs in each case at least 6 months after the grant date, nonqualified stock options
become fully vested. Similar provisions exist for non-employee directors. Time-vesting RSUs granted under the Amended 2010