Segment Information (Tables)

12 Months Ended

Dec. 31, 2013

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.

Segment Depreciation/Amortization


	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

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

Worldwide Revenues by Brand Category

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

Revenues by Geographic Area

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

Long-lived Assets by Geographic Area


	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