XML 94 R19.htm IDEA: XBRL DOCUMENT
v2.4.0.8

Segment Information | 12 Months Ended
--- | ---
Dec. 31, 2013
Segment Information | Note 12—Segment Information Description of Segments Mattel sells a broad variety of toy products which are grouped into three major brand categories: Mattel Girls & Boys Brands—including Barbie fashion dolls and accessories (“Barbie”), Monster High, Disney Classics, Ever After High, Little Mommy, and Polly Pocket (collectively “Other Girls”), Hot Wheels, Matchbox, and Tyco R/C vehicles and play sets (collectively “Wheels”), and CARS, Disney Planes, Radica, Toy Story, Max Steel, WWE Wrestling, Batman, and games and puzzles (collectively “Entertainment”). Fisher-Price Brands—including Fisher-Price, Little People, BabyGear, Laugh & Learn, and Imaginext (collectively “Core Fisher-Price”), Thomas & Friends, Dora the Explorer, Mickey Mouse Clubhouse, and Disney Jake and the Never Land Pirates (collectively “Fisher-Price Friends”), and Power Wheels. American Girl Brands—including My American Girl, the historical collection, and Bitty Baby. American Girl Brands products are sold directly to consumers via its catalog, website, and proprietary retail stores. Its children’s publications are also sold to certain retailers. Prior to 2012, Mattel’s operating segments were divided on a geographic basis between domestic and international. The domestic segment was further divided into Mattel Girls & Boys Brands US, Fisher-Price Brands US, and American Girl Brands. Effective January 1, 2012, Mattel modified its organizational structure into North America, International, and American Girl divisions. This reorganization was implemented in order to simplify the organization and to move decision-making for the North America business closer to its retail customers and its toy consumers. Prior to the reorganization, the functions of the US operations were divided between the Mattel Girls & Boys Brands US and Fisher-Price Brands US operating segments. Both of these segments had distinct and separate reporting structures. The reorganization consolidated functions within the US into a single reporting structure that is no longer structured around brands, including the US sales, customer marketing, customer forecasting, customer service, and finance teams. The new structure is primarily organized based on customer-focused teams that are designated to specific retail customers. As a result, the reorganization changed the way the US business is being operated, and combined the US business with Canada under one leadership team, to form the North America division. As part of the reorganization, new executive positions were created and prior executive positions within the US operations were eliminated or restructured to align to the North America division. Mattel’s strategic goals and internal reporting of financial information have also been changed consistent with this reorganization into the North America division. The change to Mattel’s organizational structure and formation of the North America division resulted in changes to Mattel’s operating segments. The new operating segments are: (i) North America, which consists of the US and Canada, (ii) International, and (iii) American Girl. The North America and International segments sell products in the Mattel Girls & Boys Brands and Fisher-Price Brands categories, although some are developed and adapted for particular international markets. Factors considered in determining the new operating segments include the nature of business activities, the management structure directly accountable to the Chief Operating Decision Maker (“CODM”) for operating and administrative activities, availability of discrete financial information, and strategic priorities within the new organizational structure. These factors correspond to the manner in which the CODM currently reviews and evaluates operating performance to make decisions about resources to be allocated to these operating segments. Effective January 1, 2012, the CODM reviews key financial information, including gross sales, operating income, accounts receivable, and inventory for the new operating segments. Prior to 2012, the CODM reviewed and evaluated operating performance to make decisions about resources to be allocated based on the Mattel Girls & Boys Brands US, Fisher-Price Brands US, American Girl Brands, and International segments. Operating performance for Mattel Girls & Boys Brands US and Fisher-Price Brands US is no longer reviewed by the CODM. The 2011 operating segment results have been reclassified to conform to the current presentation. Segment Data The following tables present information about revenues, income, and assets by segment. Mattel does not include sales adjustments such as trade discounts and other allowances in the calculation of segment revenues (referred to as “gross sales”). Mattel records these adjustments in its financial accounting systems at the time of sale to each customer, but the adjustments are not allocated to individual products. For this reason, Mattel’s CODM uses gross sales by segment as one of the metrics to measure segment performance. Such sales adjustments are included in the determination of segment income from operations based on the adjustments recorded in the financial accounting systems. Segment income represents each segment’s operating income, while consolidated operating income represents income from operations before net interest, other non-operating income, and income taxes as reported in the consolidated statements of operations. The corporate and other expense category includes costs not allocated to individual segments, including charges related to incentive compensation, share-based payments, and corporate headquarters functions managed on a worldwide basis, and the impact of changes in foreign currency rates on intercompany transactions.
|  | For the Year |
|  | 2013 |  |  | 2012 |  |  | 2011 |
|  | (In thousands) |
Revenues by Segment |  |  |  |  |  |  |  |  |  |  |  |
North America |  | $ | 3,181,205 |  |  | $ | 3,330,217 |  |  | $ | 3,296,995 |
International |  |  | 3,277,840 |  |  |  | 3,126,088 |  |  |  | 3,001,705 |
American Girl |  |  | 658,768 |  |  |  | 596,298 |  |  |  | 542,387 |
Gross sales |  |  | 7,117,813 |  |  |  | 7,052,603 |  |  |  | 6,841,087 |
Sales adjustments |  |  | (632,921 | ) |  |  | (631,722 | ) |  |  | (575,050 | )
Net sales |  | $ | 6,484,892 |  |  | $ | 6,420,881 |  |  | $ | 6,266,037 |
Segment Income |  |  |  |  |  |  |  |  |  |  |  |
North America |  | $ | 723,834 |  |  | $ | 810,271 |  |  | $ | 770,276 |
International |  |  | 622,910 |  |  |  | 571,413 |  |  |  | 513,414 |
American Girl |  |  | 138,029 |  |  |  | 121,642 |  |  |  | 111,104 |
|  |  | 1,484,773 |  |  |  | 1,503,326 |  |  |  | 1,394,794 |
Corporate and other expense (a) |  |  | (316,670 | ) |  |  | (482,311 | ) |  |  | (353,693 | )
Operating income |  |  | 1,168,103 |  |  |  | 1,021,015 |  |  |  | 1,041,101 |
Interest expense |  |  | 78,505 |  |  |  | 88,835 |  |  |  | 75,332 |
Interest (income) |  |  | (5,555 | ) |  |  | (6,841 | ) |  |  | (8,093 | )
Other non-operating (income) expense, net |  |  | (3,975 | ) |  |  | (6,024 | ) |  |  | 3,189 |
Income before income taxes |  | $ | 1,099,128 |  |  | $ | 945,045 |  |  | $ | 970,673 |
(a) | Corporate and other expense includes (i) incentive compensation expense of $65.0 million, $108.1 million, and $75.3 million for 2013, 2012, and 2011, respectively, (ii) $17.6 million, $13.4 million, and $14.9 million of charges related to severance and other termination-related costs for 2013, 2012, and 2011, respectively, (iii) share-based compensation expense of $61.7 million, $63.3 million, and $53.5 million for 2013, 2012, and 2011, respectively, (iv) the Litigation Charge of $137.8 million for 2012, (v) $7.5 million Gunther-Wahl Productions legal settlement for 2011, and (vi) legal fees associated with MGA litigation matters.
|  | For the Year |
|  | 2013 |  |  | 2012 |  |  | 2011 |
|  | (In thousands) |
Depreciation/Amortization by Segment |  |  |  |  |  |  |  |  |  |  |  |
North America |  | $ | 84,935 |  |  | $ | 76,593 |  |  | $ | 66,477 |
International |  |  | 71,380 |  |  |  | 65,340 |  |  |  | 63,026 |
American Girl |  |  | 17,364 |  |  |  | 15,622 |  |  |  | 15,210 |
|  |  | 173,679 |  |  |  | 157,555 |  |  |  | 144,713 |
Corporate and other |  |  | 22,714 |  |  |  | 16,727 |  |  |  | 16,585 |
Depreciation and amortization |  | $ | 196,393 |  |  | $ | 174,282 |  |  | $ | 161,298 |
Segment assets are comprised of accounts receivable and inventories, net of applicable reserves and allowances.
|  | December 31, |
|  | 2013 |  |  | 2012 |
|  | (In thousands) |
Assets by Segment |  |  |  |  |  |  |  |
North America |  | $ | 723,886 |  |  | $ | 694,479 |
International |  |  | 920,770 |  |  |  | 807,911 |
American Girl |  |  | 100,438 |  |  |  | 90,335 |
|  |  | 1,745,094 |  |  |  | 1,592,725 |
Corporate and other |  |  | 83,854 |  |  |  | 99,165 |
Accounts receivable and inventories, net |  | $ | 1,828,948 |  |  | $ | 1,691,890 |
Mattel sells a broad variety of toy products, which are grouped into three major categories: Mattel Girls & Boys Brands, Fisher-Price Brands, and American Girl Brands. The table below presents worldwide revenues by brand category:
|  | For the Year |
|  | 2013 |  |  | 2012 |  |  | 2011 |
|  | (In thousands) |
Worldwide Revenues by Brand Category |  |  |  |  |  |  |  |  |  |  |  |
Mattel Girls & Boys Brands |  | $ | 4,315,855 |  |  | $ | 4,186,550 |  |  | $ | 4,120,564 |
Fisher-Price Brands |  |  | 2,120,719 |  |  |  | 2,252,339 |  |  |  | 2,159,178 |
American Girl Brands |  |  | 632,515 |  |  |  | 567,521 |  |  |  | 510,936 |
Other |  |  | 48,724 |  |  |  | 46,193 |  |  |  | 50,409 |
Gross sales |  |  | 7,117,813 |  |  |  | 7,052,603 |  |  |  | 6,841,087 |
Sales adjustments |  |  | (632,921 | ) |  |  | (631,722 | ) |  |  | (575,050 | )
Net sales |  | $ | 6,484,892 |  |  | $ | 6,420,881 |  |  | $ | 6,266,037 |
Geographic Information The tables below present information by geographic area. Revenues are attributed to countries based on location of customer. Long-lived assets principally include goodwill, property, plant, and equipment, net, and identifiable intangibles, net.
|  | For the Year |
|  | 2013 |  |  | 2012 |  |  | 2011 |
|  | (In thousands) |
Revenues |  |  |  |  |  |  |  |  |  |  |  |
North American Region (a) |  | $ | 3,839,973 |  |  | $ | 3,926,515 |  |  | $ | 3,839,382 |
International Region: |  |  |  |  |  |  |  |  |  |  |  |
Europe |  |  | 1,806,707 |  |  |  | 1,685,274 |  |  |  | 1,626,120 |
Latin America |  |  | 1,011,718 |  |  |  | 1,008,236 |  |  |  | 991,435 |
Asia Pacific |  |  | 459,415 |  |  |  | 432,578 |  |  |  | 384,150 |
Total International Region |  |  | 3,277,840 |  |  |  | 3,126,088 |  |  |  | 3,001,705 |
Gross sales |  |  | 7,117,813 |  |  |  | 7,052,603 |  |  |  | 6,841,087 |
Sales adjustments |  |  | (632,921 | ) |  |  | (631,722 | ) |  |  | (575,050 | )
Net sales |  | $ | 6,484,892 |  |  | $ | 6,420,881 |  |  | $ | 6,266,037 |
|  | December 31, |
|  | 2013 |  |  | 2012 |  |  | 2011 |
|  | (In thousands) |
Long-Lived Assets |  |  |  |  |  |  |  |  |  |  |  |
North American Region (b) |  | $ | 1,361,538 |  |  | $ | 1,252,938 |  |  | $ | 1,074,914 |
International Region |  |  | 1,326,457 |  |  |  | 1,342,375 |  |  |  | 679,185 |
Consolidated total |  | $ | 2,687,995 |  |  | $ | 2,595,313 |  |  | $ | 1,754,099 |
(a) | Revenues for the North American Region include revenues attributable to the US of $3.58 billion, $3.61 billion, and $3.58 billion for 2013, 2012, and 2011, respectively.
(b) | Long-lived assets for the North American Region include long-lived assets attributable to the US of $1.36 billion, $1.25 billion, and $1.05 billion for 2013, 2012, and 2011, respectively.
Major Customers Sales to Mattel’s three largest customers accounted for 36%, 37%, and 38% of worldwide consolidated net sales for 2013, 2012, and 2011, respectively, as follows:
|  | For the Year |
|  | 2013 |  |  | 2012 |  |  | 2011 |
|  | (In billions) |
Wal-Mart |  | $ | 1.2 |  |  | $ | 1.2 |  |  | $ | 1.2 |
Toys “R” Us |  |  | 0.7 |  |  |  | 0.7 |  |  |  | 0.7 |
Target |  |  | 0.5 |  |  |  | 0.5 |  |  |  | 0.5 |
The North America segment sells products to each of Mattel’s three largest customers. The International segment sells products to Wal-Mart and Toys “R” Us. The American Girl segment sells its children’s publications to Wal-Mart and Target.

X
- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8380-108599 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8933-108599 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8538-108599 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8844-108599 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 29 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8864-108599 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8981-108599 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 35 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8984-108599 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8906-108599 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9054-108599 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8924-108599 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9031-108599 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 33 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8971-108599 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8595-108599 + Details
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration