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Stockholders' Equity
 12 Months Ended
Dec. 31, 2014
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 2014, Mattel repurchased 4.9 million shares of its common stock at a cost of $177.2 million. 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. Mattel’s share repurchase program was first announced on July 21, 2003. On July 17, 2013, the Board of Directors authorized Mattel to increase its share repurchase program by $500.0 million. At December 31, 2014, share repurchase authorizations of $203.0 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 2014, 2013, and 2012, Mattel paid total dividends per share of $1.52, $1.44, and $1.24, 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 Income (Loss)

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 (loss):

 

     For the Year Ended December 31, 2014  
     Derivative
Instruments		     Defined Benefit
Pension Plans		     Currency
Translation
Adjustments		     Total  
     (In thousands)  

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

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

Other comprehensive income (loss) before reclassifications

      39,931        (38,969 )      (189,666 )      (188,704 ) 

Amounts reclassified from accumulated other comprehensive income (loss)

      883        9,408        —       10,291   
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in other comprehensive income

      40,814      $ (29,561 )    $ (189,666 )    $ (178,413 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Accumulated Other Comprehensive Income (Loss), Net of Tax, as of December 31, 2014

    $ 30,025      $ (161,507 )    $ (490,607 )    $ (622,089 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  
     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 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

 

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
     2014     2013     2012    
     (In thousands)      

Derivative Instruments

         

(Loss) gain on foreign currency forward exchange contracts

    $ (916 )    $ (5,735 )    $ 29,978      Cost of sales
     33        838        (45 )    Provision for income taxes
  

 

 

    

 

 

    

 

 

    
   $ (883 )    $ (4,897 )    $ 29,933      Net income
  

 

 

    

 

 

    

 

 

    

Defined Benefit Pension Plans

         

Amortization of prior service credit

    $ 1,037      $ 1,057      $ 502      (a)

Recognized actuarial loss

      (15,788 )      (21,771 )      (19,137 )    (a)

Settlement loss

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

 

 

    

 

 

    

 

 

    
     (14,751 )      (22,549 )      (22,169 )   
     5,343        8,127        8,037      Provision for income taxes
  

 

 

    

 

 

    

 

 

    
   $ (9,408 )    $ (14,422 )    $ (14,132 )    Net income
  

 

 

    

 

 

    

 

 

    

 

(a) The amortization of prior service credit, 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 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. For 2012, currency translation adjustments resulted in a net gain of $27.6 million, primarily due to 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.