XML 105 R27.htm IDEA: XBRL DOCUMENT
v3.3.0.814

Segment Information | 9 Months Ended
--- | ---
Sep. 30, 2015
Segment Information |
21. | Segment Information
Mattel, through its subsidiaries, sells a broad variety of toy products which are grouped into four major brand categories, including the Construction and Arts & Crafts brand category, which was introduced in the second quarter of 2014: 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® and Matchbox® vehicles and play sets (collectively “Wheels”), and CARS®, Disney Planes™, BOOMco™, 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 Truly Me™, BeForever™, 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. Construction and Arts & Crafts Brands—including MEGA BLOKS®, RoseArt®, and Board Dudes®. Mattel’s 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, Fisher-Price Brands, and Construction and Arts & Crafts Brands categories, although some are developed and adapted for particular international markets. 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” and reconciled to net sales in Part I, Item 2 “Management’s Discussion and Analysis of Financial Condition and Results of Operations–Non-GAAP Financial Measures” of this Quarterly Report on Form 10-Q). 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 chief operating decision maker 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 (expense), 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 exchange rates on intercompany transactions.
|  | For the Three Months Ended |  |  | For the Nine Months Ended |
|  | September 30, 2015 |  |  | September 30, 2014 |  |  | September 30, 2015 |  |  | September 30, 2014 |
|  | (In thousands) |
Revenues by Segment |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
North America |  | $ | 1,069,116 |  |  | $ | 1,124,463 |  |  | $ | 2,053,053 |  |  | $ | 2,079,357 |
International |  |  | 798,584 |  |  |  | 989,228 |  |  |  | 1,732,125 |  |  |  | 2,048,403 |
American Girl |  |  | 115,651 |  |  |  | 119,025 |  |  |  | 313,504 |  |  |  | 317,314 |
Gross sales |  |  | 1,983,351 |  |  |  | 2,232,716 |  |  |  | 4,098,682 |  |  |  | 4,445,074 |
Sales adjustments |  |  | (191,383 | ) |  |  | (211,292 | ) |  |  | (395,813 | ) |  |  | (415,221 | )
Net sales |  | $ | 1,791,968 |  |  | $ | 2,021,424 |  |  | $ | 3,702,869 |  |  | $ | 4,029,853 |
Segment Income |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
North America |  | $ | 230,216 |  |  | $ | 257,496 |  |  | $ | 283,356 |  |  | $ | 345,716 |
International |  |  | 142,576 |  |  |  | 183,142 |  |  |  | 160,250 |  |  |  | 245,476 |
American Girl |  |  | 7,142 |  |  |  | 7,618 |  |  |  | 5,617 |  |  |  | 15,599 |
|  |  | 379,934 |  |  |  | 448,256 |  |  |  | 449,223 |  |  |  | 606,791 |
Corporate and other expense (a) |  |  | (79,161 | ) |  |  | (38,777 | ) |  |  | (202,354 | ) |  |  | (190,086 | )
Operating income |  |  | 300,773 |  |  |  | 409,479 |  |  |  | 246,869 |  |  |  | 416,705 |
Interest expense |  |  | 21,409 |  |  |  | 21,009 |  |  |  | 62,516 |  |  |  | 57,220 |
Interest (income) |  |  | (1,990 | ) |  |  | (1,773 | ) |  |  | (5,757 | ) |  |  | (5,238 | )
Other non-operating (income), net |  |  | (4,785 | ) |  |  | (3,937 | ) |  |  | (2,984 | ) |  |  | (5,665 | )
Income before income taxes |  | $ | 286,139 |  |  | $ | 394,180 |  |  | $ | 193,094 |  |  | $ | 370,388 |
(a) | Corporate and other expense includes severance and other termination-related costs of $13.3 million and $61.1 million for the three and nine months ended September 30, 2015, respectively, and $5.0 million and $39.1 million for the three and nine months ended September 30, 2014, respectively, and share-based compensation expense of $13.8 million and $41.1 million for the three and nine months ended September 30, 2015, respectively, and $12.0 million and $36.5 million for the three and nine months ended September 30, 2014, respectively.
Segment assets are comprised of accounts receivable and inventories, net of applicable reserves and allowances.
|  | September 30, 2015 |  |  | September 30, 2014 |  |  | December 31, 2014 |
|  | (In thousands) |
Assets by Segment |  |  |  |  |  |  |  |  |  |  |  |
North America |  | $ | 1,011,546 |  |  | $ | 1,078,388 |  |  | $ | 698,357 |
International |  |  | 1,063,727 |  |  |  | 1,244,067 |  |  |  | 778,849 |
American Girl |  |  | 147,517 |  |  |  | 160,754 |  |  |  | 108,667 |
|  |  | 2,222,790 |  |  |  | 2,483,209 |  |  |  | 1,585,873 |
Corporate and other |  |  | 99,245 |  |  |  | 36,419 |  |  |  | 70,334 |
Accounts receivable and inventories, net |  | $ | 2,322,035 |  |  | $ | 2,519,628 |  |  | $ | 1,656,207 |
The table below presents worldwide revenues by brand category:
|  | For the Three Months Ended |  |  | For the Nine Months Ended |
|  | September 30, 2015 |  |  | September 30, 2014 |  |  | September 30, 2015 |  |  | September 30, 2014 |
|  | (In thousands) |
Worldwide Revenues by Brand Category |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Mattel Girls & Boys Brands |  | $ | 1,120,612 |  |  | $ | 1,323,273 |  |  | $ | 2,327,555 |  |  | $ | 2,669,111 |
Fisher-Price Brands |  |  | 625,277 |  |  |  | 663,446 |  |  |  | 1,226,023 |  |  |  | 1,263,655 |
American Girl Brands |  |  | 109,879 |  |  |  | 113,291 |  |  |  | 300,128 |  |  |  | 302,375 |
Construction and Arts & Crafts Brands |  |  | 118,480 |  |  |  | 123,415 |  |  |  | 221,560 |  |  |  | 185,015 |
Other |  |  | 9,103 |  |  |  | 9,291 |  |  |  | 23,416 |  |  |  | 24,918 |
Gross sales |  |  | 1,983,351 |  |  |  | 2,232,716 |  |  |  | 4,098,682 |  |  |  | 4,445,074 |
Sales adjustments |  |  | (191,383 | ) |  |  | (211,292 | ) |  |  | (395,813 | ) |  |  | (415,221 | )
Net sales |  | $ | 1,791,968 |  |  | $ | 2,021,424 |  |  | $ | 3,702,869 |  |  | $ | 4,029,853 |

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 34 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8981-108599 Reference 2: 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=51669610&loc=d3e9038-108599 Reference 3: 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=51669610&loc=d3e8971-108599 Reference 4: 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=51669610&loc=d3e8595-108599 Reference 5: 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=51669610&loc=d3e8380-108599 Reference 6: 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=51669610&loc=d3e8933-108599 Reference 7: 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=51669610&loc=d3e8844-108599 Reference 8: 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=51669610&loc=d3e8984-108599 Reference 9: 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=51669610&loc=d3e9031-108599 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=51669610&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 10 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8538-108599 Reference 12: 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=51669610&loc=d3e8864-108599 Reference 13: 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=51669610&loc=d3e8924-108599 Reference 14: 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=51669610&loc=d3e8906-108599 + Details
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration