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Stockholders' Equity
 12 Months Ended
Dec. 31, 2013
Stockholders' Equity

Note 6—Stockholders’ Equity

Preference Stock

Mattel is authorized to issue up to 20.0 million shares of $0.01 par value preference stock, of which none is currently outstanding.

 

Preferred Stock

Mattel is authorized to issue up to 3.0 million shares of $1.00 par value preferred stock, of which none is currently outstanding.

Common Stock Repurchase Program

During 2013, Mattel repurchased 11.0 million shares of its common stock at a cost of $469.2 million. During 2012, Mattel repurchased 2.3 million shares of its common stock at a cost of $77.9 million. During 2011, Mattel repurchased 20.4 million shares of its common stock at a cost of $536.3 million. During both 2013 and 2011, the Board of Directors authorized Mattel to increase its share repurchase program by $500.0 million. At December 31, 2013, share repurchase authorizations of $380.2 million had not been executed. Repurchases will take place from time to time, depending on market conditions. Mattel’s share repurchase program has no expiration date.

Dividends

During 2013, 2012, and 2011, Mattel paid total dividends per share of $1.44, $1.24, and $0.92, respectively, to holders of its common stock. The Board of Directors declared the dividends on a quarterly basis, and Mattel paid the dividends during the quarters in which the dividends were declared. The payment of dividends on common stock is at the discretion of the Board of Directors and is subject to customary limitations.

Accumulated Other Comprehensive Loss

In 2013, Mattel adopted ASU 2013-02, Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income, which requires an entity to present either on the face of the statement where net income is presented or in the notes to the financial statements, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income. The following tables present changes in the accumulated balances for each component of other comprehensive income, including current period other comprehensive income and reclassifications out of accumulated other comprehensive income:

 

     For the Year Ended December 31, 2013  
     Derivative
Instruments		     Defined Benefit
Pension Plans		     Currency
Translation
Adjustments		     Total  
     (In thousands)  

Accumulated Other Comprehensive Income (Loss), Net of Tax, as of December 31, 2012

    $ (2,583 )    $ (190,656 )    $ (271,247 )    $ (464,486 ) 

Other comprehensive (loss) income before reclassifications

      (13,103 )      44,288        (29,694 )      1,491   

Amounts reclassified from accumulated other comprehensive income (loss)

      4,897        14,422        —        19,319   
  

 

 

    

 

 

    

 

 

    

 

 

  

Net (decrease) increase in other comprehensive income

      (8,206 )      58,710        (29,694 )      20,810   
  

 

 

    

 

 

    

 

 

    

 

 

  

Accumulated Other Comprehensive Income (Loss), Net of Tax, as of December 31, 2013

    $ (10,789 )    $ (131,946 )    $ (300,941 )    $ (443,676 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  
     For the Year Ended December 31, 2012  
     Derivative
Instruments		     Defined Benefit
Pension Plans		     Currency
Translation
Adjustments		     Total  
     (In thousands)  

Accumulated Other Comprehensive Income (Loss), Net of Tax, as of December 31, 2011

    $ 24,616      $ (172,398 )    $ (298,863 )    $ (446,645 ) 

Other comprehensive income (loss) before reclassifications

      2,734        (32,390 )      27,616        (2,040 ) 

Amounts reclassified from accumulated other comprehensive (loss) income

      (29,933 )      14,132        —        (15,801 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net (decrease) increase in other comprehensive income

      (27,199 )      (18,258 )      27,616        (17,841 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Accumulated Other Comprehensive Income (Loss), Net of Tax, as of December 31, 2012

    $ (2,583 )    $ (190,656 )    $ (271,247 )    $ (464,486 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

 

     For the Year Ended December 31, 2011  
     Derivative
Instruments		     Defined Benefit
Pension Plans		     Currency
Translation
Adjustments		     Total  
     (In thousands)  

Accumulated Other Comprehensive Income (Loss), Net of Tax, as of December 31, 2010

    $ (3,127 )    $ (134,314 )    $ (221,758 )    $ (359,199 ) 

Other comprehensive income (loss) before reclassifications

      17,900        (51,303 )      (77,105 )      (110,508 ) 

Amounts reclassified from accumulated other comprehensive income (loss)

      9,843        13,219        —        23,062   
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in other comprehensive income

      27,743        (38,084 )      (77,105 )      (87,446 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Accumulated Other Comprehensive Income (Loss), Net of Tax, as of December 31, 2011

    $ 24,616      $ (172,398 )    $ (298,863 )    $ (446,645 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

The following table presents the classification and amount of the reclassifications from accumulated other comprehensive income to the consolidated statement of operations:

 

     For the Year    

Statements of Operations
Classification
     2013     2012     2011    
     (In thousands)      

Derivative Instruments

         

(Loss) gain on foreign currency forward exchange contracts

    $ (5,735 )    $ 29,978      $ (8,502 )    Cost of sales
     838        (45 )      (1,341 )    Provision for income taxes
  

 

 

    

 

 

    

 

 

    
   $ (4,897 )    $ 29,933      $ (9,843 )    Net income
  

 

 

    

 

 

    

 

 

    

Defined Benefit Pension Plans

         

Amortization of prior service credit (cost)

    $ 1,057      $ 502      $ (1,776 )    (a)

Recognized actuarial loss

      (21,771 )      (19,137 )      (19,444 )    (a)

Settlement loss

      (1,835 )      (3,534 )      —      (a)
  

 

 

    

 

 

    

 

 

    
     (22,549 )      (22,169 )      (21,220 )   
     8,127        8,037        8,001      Provision for income taxes
  

 

 

    

 

 

    

 

 

    
   $ (14,422 )    $ (14,132 )    $ (13,219 )    Net income
  

 

 

    

 

 

    

 

 

    

 

(a) The amortization of prior service credit (cost), recognized actuarial loss, and settlement 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 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. For 2012, currency translation adjustments resulted in a net gain of $27.6 million, with gains from the strengthening of the Euro, Mexican peso, and British pound sterling against the US dollar, partially offset by the weakening of the Brazilian real against the US dollar. For 2011, currency translation adjustments resulted in a net loss of $77.1 million, with losses from the weakening of the Euro, Mexican peso, Brazilian real, and British pound sterling against the US dollar.