Mattel experienced significant changes in 2000 including new leadership and senior management. The company refocused on its core toy business, sold The Learning Company, and forged partnerships in the interactive space. Worldwide sales increased for major brands like Barbie and Fisher-Price. Mattel announced a financial plan to reduce costs by $200 million over three years. Going forward, Mattel will focus on strengthening brands globally, executing the cost savings plan, improving supply chain performance, and developing employees.
The document is Mattel's 1998 annual report. It summarizes Mattel's financial performance for 1998, which saw a 1% decrease in sales due to retailers reducing inventories more quickly than expected. It outlines Mattel's strategic initiatives to position itself for future growth, such as acquisitions of other toy companies and a planned merger with The Learning Company to expand into educational software. Key brands like Barbie, Fisher-Price, and American Girl are discussed as drivers of long-term growth.
1) Mattel faced challenges in 2001 due to a slowing global economy, terrorist attacks hurting US consumer confidence, and retailers canceling orders. However, Mattel achieved 3% worldwide revenue growth and record levels.
2) Mattel gained market share around the world and in the US across multiple toy categories. International sales grew 10% while the US declined 1%.
3) Robert Eckert outlines Mattel's priorities for 2002 - strengthening core brands, delivering $200M in cost savings, improving supply chain performance, and developing employees. Mattel aims to optimize its business and become "the world's premier toy brands."
Mattel had a successful year in 2006 with global net sales up 9%. The company benefited from strong movie toy sales but also had growth in its core brands like Polly Pocket and Fisher-Price. Mattel sees opportunities for continued growth both in the US and internationally, especially in emerging markets. The CEO is optimistic about Mattel's future prospects to capitalize on opportunities through innovation and strong customer relationships.
The annual report summarizes Mattel's financial performance in 2002. Key points include:
- Sales and operating income increased while costs declined, leading to record cash flow of $1.2 billion.
- Challenges included a weak retail environment, high competition, and economic uncertainty.
- Mattel focused on optimizing operations, delivering cost savings, and developing innovative new products.
- Looking ahead, Mattel will focus on core brands, retail channels, costs, and cash to drive further innovation.
NIKE reported strong financial results for Q2 FY07 with 10% revenue growth and 12% growth in earnings per share. Revenue increased in all regions and business units led by 11% growth in both apparel and equipment. Futures orders were up 7% globally. Mark Parker expressed confidence in NIKE's strategies and ability to drive continued growth and competitive advantage through focus on key categories and innovation. Don Blair provided details on the financials including gross margin stabilization, tax benefits from an agreement with Dutch authorities, and shareholder returns through dividends and share repurchases totaling $776M year-to-date. Inventories grew 15% primarily due to currency impacts.
The document provides background information and context for a marketing plan being presented by Garrick Oil to address declining sales in their Northern Ontario region. It summarizes the previous failed attempts to address the issue, outlines the current state of the business and market, analyzes strengths/weaknesses and opportunities/threats. It then evaluates alternative approaches, recommending creating two sales teams to foster collaboration and improve customer relationships and service. If unsuccessful, enhancing incentives for salespeople is recommended.
- GameStop completed a merger with EB Games in 2005, becoming the world's largest video game and entertainment software retailer with over 4,400 stores globally.
- In fiscal year 2005, GameStop saw significant growth with sales increasing 67.7% to $3.09 billion and net earnings growing to $100.8 million, up from $60.9 million the previous year.
- GameStop anticipates continued growth and profitability in 2006 and beyond driven by the launch of new video game consoles from Microsoft, Sony, and Nintendo as well as expansion of its global store footprint and other business initiatives.
The document is a transcript of Nike's fiscal year 2008 third quarter earnings call.
1) Nike reported strong financial results for the third quarter with net revenue up 16% and diluted earnings per share growing 35%.
2) Nike saw increased revenues in every region and business, with the international business growing 24% and the subsidiary businesses contributing over $600 million in revenue, up 15%.
3) While some consumer and retail markets face economic uncertainty, Nike remains focused on growing revenue through key categories like football and businesses in the US and China.
The document is Mattel's 1998 annual report. It summarizes Mattel's financial performance for 1998, which saw a 1% decrease in sales due to retailers reducing inventories more quickly than expected. It outlines Mattel's strategic initiatives to position itself for future growth, such as acquisitions of other toy companies and a planned merger with The Learning Company to expand into educational software. Key brands like Barbie, Fisher-Price, and American Girl are discussed as drivers of long-term growth.
1) Mattel faced challenges in 2001 due to a slowing global economy, terrorist attacks hurting US consumer confidence, and retailers canceling orders. However, Mattel achieved 3% worldwide revenue growth and record levels.
2) Mattel gained market share around the world and in the US across multiple toy categories. International sales grew 10% while the US declined 1%.
3) Robert Eckert outlines Mattel's priorities for 2002 - strengthening core brands, delivering $200M in cost savings, improving supply chain performance, and developing employees. Mattel aims to optimize its business and become "the world's premier toy brands."
Mattel had a successful year in 2006 with global net sales up 9%. The company benefited from strong movie toy sales but also had growth in its core brands like Polly Pocket and Fisher-Price. Mattel sees opportunities for continued growth both in the US and internationally, especially in emerging markets. The CEO is optimistic about Mattel's future prospects to capitalize on opportunities through innovation and strong customer relationships.
The annual report summarizes Mattel's financial performance in 2002. Key points include:
- Sales and operating income increased while costs declined, leading to record cash flow of $1.2 billion.
- Challenges included a weak retail environment, high competition, and economic uncertainty.
- Mattel focused on optimizing operations, delivering cost savings, and developing innovative new products.
- Looking ahead, Mattel will focus on core brands, retail channels, costs, and cash to drive further innovation.
NIKE reported strong financial results for Q2 FY07 with 10% revenue growth and 12% growth in earnings per share. Revenue increased in all regions and business units led by 11% growth in both apparel and equipment. Futures orders were up 7% globally. Mark Parker expressed confidence in NIKE's strategies and ability to drive continued growth and competitive advantage through focus on key categories and innovation. Don Blair provided details on the financials including gross margin stabilization, tax benefits from an agreement with Dutch authorities, and shareholder returns through dividends and share repurchases totaling $776M year-to-date. Inventories grew 15% primarily due to currency impacts.
The document provides background information and context for a marketing plan being presented by Garrick Oil to address declining sales in their Northern Ontario region. It summarizes the previous failed attempts to address the issue, outlines the current state of the business and market, analyzes strengths/weaknesses and opportunities/threats. It then evaluates alternative approaches, recommending creating two sales teams to foster collaboration and improve customer relationships and service. If unsuccessful, enhancing incentives for salespeople is recommended.
- GameStop completed a merger with EB Games in 2005, becoming the world's largest video game and entertainment software retailer with over 4,400 stores globally.
- In fiscal year 2005, GameStop saw significant growth with sales increasing 67.7% to $3.09 billion and net earnings growing to $100.8 million, up from $60.9 million the previous year.
- GameStop anticipates continued growth and profitability in 2006 and beyond driven by the launch of new video game consoles from Microsoft, Sony, and Nintendo as well as expansion of its global store footprint and other business initiatives.
The document is a transcript of Nike's fiscal year 2008 third quarter earnings call.
1) Nike reported strong financial results for the third quarter with net revenue up 16% and diluted earnings per share growing 35%.
2) Nike saw increased revenues in every region and business, with the international business growing 24% and the subsidiary businesses contributing over $600 million in revenue, up 15%.
3) While some consumer and retail markets face economic uncertainty, Nike remains focused on growing revenue through key categories like football and businesses in the US and China.
The NIKE earnings call discusses a very strong fiscal year with 9% revenue growth for Q4 and the year. Key highlights included:
- Revenue grew to $16.3B for the year, up 9%
- EPS grew 34% for Q4 and 11% for the year
- All regions saw increased revenue and futures orders
- Subsidiaries like Converse had record growth with revenue up 23% and PTI up 133%
- Inventory levels improved and were well below revenue growth
- Retail strategies around partnerships and owned stores will differentiate NIKE
- Multiple categories like basketball, soccer, and running are positioned for growth in key markets
The document is Campbell Soup Company's 2001 annual report. It summarizes the company's transformation plan to revitalize the business and return to growth. The plan focuses on 5 strategies: 1) revitalizing US soup sales, 2) strengthening the broader portfolio, 3) building new growth avenues, 4) improving quality while driving productivity, and 5) improving organizational excellence. The report provides details on initiatives under each strategy, and discusses financial performance and outlook.
Rodolfo Jimenez is an experienced international business executive with over 20 years of experience in Latin America and the United States. He has founded two companies, GGI Energy and ProfitMania, and held senior leadership roles with Pollo Campero, Coca-Cola, and McCann-Erickson. Through his career, he has generated $9 billion in sales and expanded brands and businesses into over 15 countries. He specializes in strategic business planning, brand development, market expansion, and operational leadership.
ACQ Magazine recently released its new publication "GameChangers". GameChangers™ is a network for today’s most influential organisations and individuals. They offer insight into every facet of leaders’ professional lives by telling their stories - from department structure and team management to intellectual property and emerging technology. With engaging editorial, we bring local and global innovators across industries together to share their stories, learn from each other, and connect. Read H.E.Dr.Ambassador Tal Edgars' story and the bigger vision of the GBSH Consult Group
Rocky Brands' annual report summarizes its strong financial performance in fiscal year 2019. Key highlights include:
- Rocky Brands achieved the highest earnings per share in the Company's history in 2019.
- Wholesale sales increased 3.7% and diluted EPS increased 20.5% compared to 2018.
- The retail segment saw a 21.8% increase in sales, its strongest growth ever.
- Gross margin increased 170 basis points and the Company was well positioned for continued long-term success.
- The Walt Disney Company reported higher earnings before restructuring and impairment charges for both the quarter and six months ended March 31, 2001 compared to the same period in the previous year.
- Earnings increased 33% for the quarter and 31% for the six months when excluding restructuring and impairment charges.
- Segment operating income increased at Parks & Resorts, Media Networks, Studio Entertainment, and Consumer Products, but decreased at Internet Group.
- Restructuring and impairment charges totaled $1 billion for the quarter and $1.2 billion for the six months, primarily related to the closure of the GO.com portal business.
1. The document presents a bull case analysis for Target stock through 2024, forecasting a 30% internal rate of return based on sustained revenue growth and margin expansion. This is driven by COVID permanently damaging competitors and boosting Target's positioning, as well as investments made by CEO Brian Cornell in 2017.
2. Segment sales forecasts through 2024 show growth across all categories except hardlines, with beauty/household essentials and food/beverage expected to see especially durable gains. Competitor closures in home goods and apparel/accessories will allow Target to capture significant market share.
3. Analysis of retail sales data finds furniture/home and apparel sectors experienced major declines during the pandemic, with
- Nike reported strong fiscal year 2008 results, with net revenue up 16% for Q4 and 14% for the full year, reaching $18.6 billion total.
- Gross margins improved despite a rising cost environment and global futures orders increased 11% for the 30th consecutive quarter of growth.
- EPS grew 14% for Q4 and 28% for the full year through strategic investments in areas like retail and marketing.
- Nike's affiliate portfolio brands like Converse and Nike Golf also saw strong growth, with Converse revenue up 29% and nearing $2 billion in total sales.
This transcript summarizes Nike's fiscal year 2008 first quarter earnings call from September 20, 2007. The operator introduces the call and reminds participants that forward-looking statements are based on current expectations and estimates. Pamela Catlett, Vice President of Investor Relations, introduces Nike CEO Mark Parker to provide opening remarks. Parker notes revenue, earnings, futures, and regional growth were all up for the quarter. He highlights Nike's category focus and growth strategies. Charlie Denson, President of the Nike Brand, then discusses regional performances and innovations. Denson focuses on improvements in Europe, growth in key categories globally, and strategic tests in the US marketplace.
The Campbell North America division had sales of $5.2 billion in fiscal 2004. Its portfolio includes leading brands like Campbell's, Pace, Prego, Swanson, Pepperidge Farm, and Godiva. The division sees opportunities to grow the U.S. soup business through convenient ready-to-serve soups and expanding production capacity. It will also continue investing in growth drivers like V8, Pepperidge Farm, Prego, Pace, and Godiva while supporting the core soup franchise.
R&R Ice Cream is ranked number one on this year's Sunday Times PwC Profit Track 100 list, which measures the profits of Britain's top-performing private companies. R&R Ice Cream has seen 210% annual profit growth over the last three years, growing profits from £1.4 million to over £43 million. Many companies on the list have pursued growth through overseas expansion, acquisitions, and cost-cutting measures implemented during the economic downturn. The 100 companies on the list collectively grew profits by an average of 72% annually over the last three years.
- Disney reported earnings for the quarter ended December 31, 1999, with revenues increasing 5% to $6.8 billion and operating income increasing 8% to $1.1 billion compared to the same period last year.
- Key drivers of increased revenues and operating income were strong performances from Who Wants to Be a Millionaire at ABC and record attendance at Walt Disney World, along with growth at ESPN and Disney's cable networks.
- Earnings per share increased 9% to $0.25, while net income rose 7% to $515 million, excluding Disney's retained interest in GO.com. Including GO.com, net income increased 1% to $324 million.
The document summarizes the company's financial performance for the fiscal year, noting that they surpassed their financial goals for net sales growth, earnings before interest and taxes growth, and earnings per share growth. It highlights growth in various product lines and brands like Campbell's condensed soups and Pepperidge Farm. It discusses strategies to expand brands in growing categories like Simple Meals and Baked Snacks, as well as initiatives to appeal to consumer preferences for convenience, wellness, and quality products.
The document is Mattel's 2007 annual report. It discusses Mattel's commitment to addressing issues from 2007 product recalls and improving performance. While revenues grew 6% globally in 2007, costs increased from recalls and quality testing. The report expresses commitment to shareholders, employees, communities, and the toy industry. It aims to strengthen the business through strategic acquisitions, dividends, share repurchases, international growth, and leadership in quality standards.
Mattel faced challenges in 2005 including decreased Barbie sales and higher costs, but other brands like American Girl and Fisher-Price had record years. While challenges remained, Mattel generated $467 million in cash flow and returned $1.5 billion to shareholders over three years through dividends and share repurchases. Looking ahead, Mattel will focus on innovation, improved execution, and leveraging its scale to strengthen its brands and grow internationally.
This document brings together a set
of latest data points and publicly
available information relevant for
Retail & Consumer good. We are
very excited to share this content and
believe that readers will benefit from
this periodic publication immensely
The document is the annual report for Best Buy Co., Inc for fiscal year 2002. It discusses how Best Buy extended its leadership in retailing in the past year through revenue growth of 28% to $19.6 billion, earnings growth of over 40% to $570 million, and acquiring Future Shop in Canada. It outlines goals to continue growing revenues and earnings by 17-21% in fiscal year 2003 through new store openings, comparable store sales growth, and leveraging capabilities across brands. Key opportunities discussed to further extend leadership are new markets, sales productivity gains, new products/services, and financial performance improvements.
Best Buy had an extremely successful fiscal year 1999, with record revenues of over $10 billion, earnings of $224 million (a 138% increase over 1998), and a market capitalization exceeding $10 billion. Best Buy opened 28 new stores, entered the New England market, and saw a 13.5% increase in comparable store sales. Looking ahead, Best Buy plans to open approximately 45 new stores in fiscal 2000 as it aggressively expands its national presence.
This document provides an overview of the U-Vend company, which operates in several business segments including novelty ice cream, automated retail through vending machines, digital advertising, fantasy sports, and sports collectibles. It describes U-Vend's growth in revenue and points of sale over the past year. The document also outlines opportunities in each of U-Vend's business segments and strategies for expanding into new markets in North America by identifying popular sports, attractions and interests in different regions. It presents financial summaries showing increased revenue and gross profit for U-Vend over the past year.
U vend Presentation Virtual Investor Final Global Online Growth Conference - ...RedChip Companies, Inc.
This document provides an overview of U-Vend, a company that offers automated retail kiosks and digital merchandisers. It discusses U-Vend's business segments including professional sports brands, wholesale distribution, and digital advertising. The company has experienced significant revenue and profit growth. U-Vend plans to expand into new markets by identifying sports, attractions, and interests and developing corresponding products and services. Its goal is to engage customers through a sales cycle from product purchase to online registration and sharing.
This document provides an overview of U-Vend, a company that offers automated retail kiosks and digital merchandisers. It discusses U-Vend's business segments including professional sports brands, wholesale distribution, and digital advertising. The company has partnerships with the NHL and MLB. The document outlines U-Vend's growth strategies of expanding into new markets based on analyzing sports, attractions, and local interests. It provides financial information showing increased revenue and profit quarter-over-quarter. U-Vend sees opportunities in novelty ice cream, automated retail, fantasy sports, and digital advertising globally.
This document provides an integrated marketing communications plan for The Home Depot for 2016. It begins with an executive summary that outlines the key objectives of appealing to millennials and developing relationships with a new type of customer. It then provides background on The Home Depot, including its history, values, financials, products/services. It analyzes competitors like Lowe's and Ace Hardware. The plan also identifies the target audience, provides a SWOT analysis, and outlines marketing objectives and strategies. It proposes approaches for creative content, media planning, public relations, direct marketing, sales promotion, and evaluation. The goal is to use an integrated approach across traditional, digital and other channels to connect with customers.
The NIKE earnings call discusses a very strong fiscal year with 9% revenue growth for Q4 and the year. Key highlights included:
- Revenue grew to $16.3B for the year, up 9%
- EPS grew 34% for Q4 and 11% for the year
- All regions saw increased revenue and futures orders
- Subsidiaries like Converse had record growth with revenue up 23% and PTI up 133%
- Inventory levels improved and were well below revenue growth
- Retail strategies around partnerships and owned stores will differentiate NIKE
- Multiple categories like basketball, soccer, and running are positioned for growth in key markets
The document is Campbell Soup Company's 2001 annual report. It summarizes the company's transformation plan to revitalize the business and return to growth. The plan focuses on 5 strategies: 1) revitalizing US soup sales, 2) strengthening the broader portfolio, 3) building new growth avenues, 4) improving quality while driving productivity, and 5) improving organizational excellence. The report provides details on initiatives under each strategy, and discusses financial performance and outlook.
Rodolfo Jimenez is an experienced international business executive with over 20 years of experience in Latin America and the United States. He has founded two companies, GGI Energy and ProfitMania, and held senior leadership roles with Pollo Campero, Coca-Cola, and McCann-Erickson. Through his career, he has generated $9 billion in sales and expanded brands and businesses into over 15 countries. He specializes in strategic business planning, brand development, market expansion, and operational leadership.
ACQ Magazine recently released its new publication "GameChangers". GameChangers™ is a network for today’s most influential organisations and individuals. They offer insight into every facet of leaders’ professional lives by telling their stories - from department structure and team management to intellectual property and emerging technology. With engaging editorial, we bring local and global innovators across industries together to share their stories, learn from each other, and connect. Read H.E.Dr.Ambassador Tal Edgars' story and the bigger vision of the GBSH Consult Group
Rocky Brands' annual report summarizes its strong financial performance in fiscal year 2019. Key highlights include:
- Rocky Brands achieved the highest earnings per share in the Company's history in 2019.
- Wholesale sales increased 3.7% and diluted EPS increased 20.5% compared to 2018.
- The retail segment saw a 21.8% increase in sales, its strongest growth ever.
- Gross margin increased 170 basis points and the Company was well positioned for continued long-term success.
- The Walt Disney Company reported higher earnings before restructuring and impairment charges for both the quarter and six months ended March 31, 2001 compared to the same period in the previous year.
- Earnings increased 33% for the quarter and 31% for the six months when excluding restructuring and impairment charges.
- Segment operating income increased at Parks & Resorts, Media Networks, Studio Entertainment, and Consumer Products, but decreased at Internet Group.
- Restructuring and impairment charges totaled $1 billion for the quarter and $1.2 billion for the six months, primarily related to the closure of the GO.com portal business.
1. The document presents a bull case analysis for Target stock through 2024, forecasting a 30% internal rate of return based on sustained revenue growth and margin expansion. This is driven by COVID permanently damaging competitors and boosting Target's positioning, as well as investments made by CEO Brian Cornell in 2017.
2. Segment sales forecasts through 2024 show growth across all categories except hardlines, with beauty/household essentials and food/beverage expected to see especially durable gains. Competitor closures in home goods and apparel/accessories will allow Target to capture significant market share.
3. Analysis of retail sales data finds furniture/home and apparel sectors experienced major declines during the pandemic, with
- Nike reported strong fiscal year 2008 results, with net revenue up 16% for Q4 and 14% for the full year, reaching $18.6 billion total.
- Gross margins improved despite a rising cost environment and global futures orders increased 11% for the 30th consecutive quarter of growth.
- EPS grew 14% for Q4 and 28% for the full year through strategic investments in areas like retail and marketing.
- Nike's affiliate portfolio brands like Converse and Nike Golf also saw strong growth, with Converse revenue up 29% and nearing $2 billion in total sales.
This transcript summarizes Nike's fiscal year 2008 first quarter earnings call from September 20, 2007. The operator introduces the call and reminds participants that forward-looking statements are based on current expectations and estimates. Pamela Catlett, Vice President of Investor Relations, introduces Nike CEO Mark Parker to provide opening remarks. Parker notes revenue, earnings, futures, and regional growth were all up for the quarter. He highlights Nike's category focus and growth strategies. Charlie Denson, President of the Nike Brand, then discusses regional performances and innovations. Denson focuses on improvements in Europe, growth in key categories globally, and strategic tests in the US marketplace.
The Campbell North America division had sales of $5.2 billion in fiscal 2004. Its portfolio includes leading brands like Campbell's, Pace, Prego, Swanson, Pepperidge Farm, and Godiva. The division sees opportunities to grow the U.S. soup business through convenient ready-to-serve soups and expanding production capacity. It will also continue investing in growth drivers like V8, Pepperidge Farm, Prego, Pace, and Godiva while supporting the core soup franchise.
R&R Ice Cream is ranked number one on this year's Sunday Times PwC Profit Track 100 list, which measures the profits of Britain's top-performing private companies. R&R Ice Cream has seen 210% annual profit growth over the last three years, growing profits from £1.4 million to over £43 million. Many companies on the list have pursued growth through overseas expansion, acquisitions, and cost-cutting measures implemented during the economic downturn. The 100 companies on the list collectively grew profits by an average of 72% annually over the last three years.
- Disney reported earnings for the quarter ended December 31, 1999, with revenues increasing 5% to $6.8 billion and operating income increasing 8% to $1.1 billion compared to the same period last year.
- Key drivers of increased revenues and operating income were strong performances from Who Wants to Be a Millionaire at ABC and record attendance at Walt Disney World, along with growth at ESPN and Disney's cable networks.
- Earnings per share increased 9% to $0.25, while net income rose 7% to $515 million, excluding Disney's retained interest in GO.com. Including GO.com, net income increased 1% to $324 million.
The document summarizes the company's financial performance for the fiscal year, noting that they surpassed their financial goals for net sales growth, earnings before interest and taxes growth, and earnings per share growth. It highlights growth in various product lines and brands like Campbell's condensed soups and Pepperidge Farm. It discusses strategies to expand brands in growing categories like Simple Meals and Baked Snacks, as well as initiatives to appeal to consumer preferences for convenience, wellness, and quality products.
The document is Mattel's 2007 annual report. It discusses Mattel's commitment to addressing issues from 2007 product recalls and improving performance. While revenues grew 6% globally in 2007, costs increased from recalls and quality testing. The report expresses commitment to shareholders, employees, communities, and the toy industry. It aims to strengthen the business through strategic acquisitions, dividends, share repurchases, international growth, and leadership in quality standards.
Mattel faced challenges in 2005 including decreased Barbie sales and higher costs, but other brands like American Girl and Fisher-Price had record years. While challenges remained, Mattel generated $467 million in cash flow and returned $1.5 billion to shareholders over three years through dividends and share repurchases. Looking ahead, Mattel will focus on innovation, improved execution, and leveraging its scale to strengthen its brands and grow internationally.
This document brings together a set
of latest data points and publicly
available information relevant for
Retail & Consumer good. We are
very excited to share this content and
believe that readers will benefit from
this periodic publication immensely
The document is the annual report for Best Buy Co., Inc for fiscal year 2002. It discusses how Best Buy extended its leadership in retailing in the past year through revenue growth of 28% to $19.6 billion, earnings growth of over 40% to $570 million, and acquiring Future Shop in Canada. It outlines goals to continue growing revenues and earnings by 17-21% in fiscal year 2003 through new store openings, comparable store sales growth, and leveraging capabilities across brands. Key opportunities discussed to further extend leadership are new markets, sales productivity gains, new products/services, and financial performance improvements.
Best Buy had an extremely successful fiscal year 1999, with record revenues of over $10 billion, earnings of $224 million (a 138% increase over 1998), and a market capitalization exceeding $10 billion. Best Buy opened 28 new stores, entered the New England market, and saw a 13.5% increase in comparable store sales. Looking ahead, Best Buy plans to open approximately 45 new stores in fiscal 2000 as it aggressively expands its national presence.
This document provides an overview of the U-Vend company, which operates in several business segments including novelty ice cream, automated retail through vending machines, digital advertising, fantasy sports, and sports collectibles. It describes U-Vend's growth in revenue and points of sale over the past year. The document also outlines opportunities in each of U-Vend's business segments and strategies for expanding into new markets in North America by identifying popular sports, attractions and interests in different regions. It presents financial summaries showing increased revenue and gross profit for U-Vend over the past year.
U vend Presentation Virtual Investor Final Global Online Growth Conference - ...RedChip Companies, Inc.
This document provides an overview of U-Vend, a company that offers automated retail kiosks and digital merchandisers. It discusses U-Vend's business segments including professional sports brands, wholesale distribution, and digital advertising. The company has experienced significant revenue and profit growth. U-Vend plans to expand into new markets by identifying sports, attractions, and interests and developing corresponding products and services. Its goal is to engage customers through a sales cycle from product purchase to online registration and sharing.
This document provides an overview of U-Vend, a company that offers automated retail kiosks and digital merchandisers. It discusses U-Vend's business segments including professional sports brands, wholesale distribution, and digital advertising. The company has partnerships with the NHL and MLB. The document outlines U-Vend's growth strategies of expanding into new markets based on analyzing sports, attractions, and local interests. It provides financial information showing increased revenue and profit quarter-over-quarter. U-Vend sees opportunities in novelty ice cream, automated retail, fantasy sports, and digital advertising globally.
This document provides an integrated marketing communications plan for The Home Depot for 2016. It begins with an executive summary that outlines the key objectives of appealing to millennials and developing relationships with a new type of customer. It then provides background on The Home Depot, including its history, values, financials, products/services. It analyzes competitors like Lowe's and Ace Hardware. The plan also identifies the target audience, provides a SWOT analysis, and outlines marketing objectives and strategies. It proposes approaches for creative content, media planning, public relations, direct marketing, sales promotion, and evaluation. The goal is to use an integrated approach across traditional, digital and other channels to connect with customers.
The Walt Disney Company announced Q1 FY09 Financial Results finance7
The document summarizes Disney's Q1 FY09 earnings conference call. Bob Iger, President and CEO of Disney, noted that Disney's businesses were impacted by the weak economy and secular changes in consumer behavior. Iger discussed steps Disney is taking to mitigate the economic impact, including cost cuts, while protecting quality. He also addressed challenges in broadcasting, home video, and other businesses. CFO Tom Staggs provided details on financial results and outlook, noting weakness across many of Disney's lines of business due to the economy. Staggs also discussed Disney's strategies to manage costs while maintaining brand strength.
MetLife exceeded its financial targets for 2002, delivering an operating return on equity of 11.7% compared to its target of 11.5%. It continued focusing on capital management through real estate sales and debt offerings, enhancing its risk-based capital ratio. Business growth outpaced the market across lines as Institutional Business achieved a 23% operating return on equity and Individual Business exceeded its $200 million expense reduction goal. MetLife also achieved milestones such as growing its international business and signing a new 10-year Snoopy advertising contract.
Best Buy successfully met many challenges in fiscal 2003, including executive succession, a slowdown in consumer spending, and increased competition in certain product categories. Employees helped deliver record profits through initiatives like opening new stores, cutting costs, boosting productivity, and increasing market share in digital products. Looking ahead, Best Buy aims to increase revenue and earnings through strategies like opening more stores, improving operating margins, gaining a larger share of customers' entertainment spending, and developing employee leadership.
The document is a report analyzing the toy industry and Mattel Inc. specifically. It identifies three key success factors for companies in the toy industry: innovating products into digital entertainment, expanding into emerging markets, and advantageous licensing partnerships. The report ranks Mattel second compared to competitors Hasbro and JAKKS Pacific based on performance in these three areas. It provides recommendations to help Mattel improve, such as partnering with Electronic Arts to further establish a digital presence, gaining licensing rights to an upcoming movie to boost sales, and improving international reputation through retail partnerships in India and China.
This document is the 2006 annual report for Mohawk Industries, a leading global flooring manufacturer. It discusses Mohawk's financial performance in 2006, noting that while the housing market slowdown presented challenges, Mohawk still saw sales and earnings growth through acquisitions and price increases. The report outlines Mohawk's business segments and growth strategies, including expanding product categories, markets, and geographic reach. It expresses optimism about Mohawk's long-term prospects given projected growth in households and flooring demand.
Mohawk Industries is a leading global flooring manufacturer that produces carpet, rugs, ceramic tile, wood, stone, laminate, and other flooring products. In 2006, Mohawk saw sales growth of 19% to $7.9 billion despite challenges in the housing market, due to its recent acquisition of Unilin and price increases. Earnings per share grew 17% compared to 2005. Mohawk invested $166 million in capital expenditures to increase production capacity and enhance customer service. Going forward, Mohawk aims to continue expanding its product categories, customer markets, and global presence through strategic investments and organizational changes.
This document is a letter from the CEO of The Walt Disney Company to shareholders summarizing the company's performance in fiscal year 2008. The letter discusses Disney achieving record revenue and earnings per share despite economic challenges. It highlights successful films like Wall-E and TV coverage of the 2008 US election on ABC News. The letter also outlines Disney's strategy of leveraging its brands across businesses and technology to create value for shareholders over the long term.
circuit city stores 2008 Annual Report and Form 10-Kfinance22
- Circuit City is a leading specialty retailer of consumer electronics, home office products, and entertainment software. It operates stores in the US and Canada.
- In fiscal 2008, Circuit City implemented numerous changes that negatively impacted financial performance as part of a turnaround effort. The goal is to rebuild customer service and selling culture.
- Going forward, Circuit City will focus on growth strategies including winning in home entertainment, growing its services business, leveraging multi-channel retailing, and improving its real estate position.
Samsung experienced a challenging year in 2008 due to the global economic downturn, but still achieved record sales and profits through effective management. While markets weakened, Samsung grew its semiconductor, mobile phone, LCD, and TV businesses through technical leadership and cost reductions. It also strengthened its brand and pursued innovation, filing over 3,500 patents. Looking ahead, Samsung recognizes more challenges but believes its creative spirit will help it overcome difficulties and further its leadership in consumer electronics.
Leslie Wexner, CEO of The Limited, provides a summary of the company's performance in 2001, a difficult year marked by economic challenges and the September 11th attacks. While sales were impacted, strategic decisions like inventory control helped manage risks. The company's major brands - Victoria's Secret, Bath & Body Works, and Express - saw growth. Wexner outlines an ambitious vision to build these into multi-billion dollar "master brands" through expanding products/categories. He expresses confidence that the company's strategies, capabilities, and talent will support continued growth and development of powerful retail brands.
The document is The Home Depot's 2002 Annual Report. It provides the following key information:
1) The Home Depot is the world's largest home improvement retailer with fiscal 2002 sales of $58.2 billion. It operates various store formats across the US, Canada, and Mexico.
2) In 2002, The Home Depot achieved net earnings of $3.7 billion, earnings per share growth of 21%, and a return on invested capital of 18.8%. It ended the year with $2.3 billion in cash after repurchasing $2 billion in stock.
3) The Home Depot made significant investments in 2002 to transform the business through technology upgrades, merchandising
This financial review provides operating and financial information for Northeast Utilities (NU) and its subsidiaries through June 30, 2008. Key information includes:
- NU's consolidated revenues for 2007 were $5.822 billion and operating income was $539 million.
- The largest subsidiary, The Connecticut Light and Power Company (CL&P), had revenues of $3.682 billion in 2007 and operating income of $285 million.
- Financial information such as sales, revenues, income, capitalization, debt ratings and dividend payments are presented for NU, CL&P and other subsidiaries from 2007 back to 2003.
1. The 2008 Annual Meeting of Shareholders of Northeast Utilities will be held on May 13, 2008 at 10:30am at the offices of Public Service Company of New Hampshire.
2. Matters to be voted on include electing 12 trustee nominees and ratifying the selection of Deloitte & Touche LLP as the independent auditors for 2008.
3. Directions to the meeting location in Manchester, NH are provided. Shareholders are urged to vote their shares whether attending the meeting or not.
- Net sales increased significantly from $4.74 billion in 1999 to $7.13 billion in 2000. Net income increased slightly from $515.8 million in 1999 to $422 million in 2000.
- The Telecommunications segment saw the largest increase in revenues from $2.96 billion in 1999 to $5.12 billion in 2000, driving the overall revenue growth.
- Pro forma diluted earnings per share, which excludes certain one-time items, increased from $0.67 in 1999 to $1.23 in 2000 despite a smaller increase in net income, reflecting share repurchases.
This annual report summarizes Corning Inc.'s financial performance in 2001, which saw a significant downturn from 2000 due to challenging conditions in the telecommunications sector and global economic weakness. Net sales fell 12% to $6.3 billion and the company reported a net loss of $5.5 billion compared to net income of $409 million in 2000. Corning took actions to reduce costs, including eliminating 12,000 jobs and closing plants. However, the company ended 2001 with $2.2 billion in cash and believes it is well positioned financially and strategically for long-term growth opportunities in key markets like optical fiber and displays.
The annual report summarizes Corning's financial performance in 2002, a challenging year due to the downturn in the telecommunications industry. Corning reported a net loss of $1.3 billion on sales of $3.2 billion, down significantly from 2001. In response, Corning restructured operations, cutting costs and jobs to preserve its financial position. It aims to return to profitability in 2003 by focusing on growing its display glass, environmental, and semiconductor businesses within Corning Technologies. While telecommunications remains weak, Corning maintains its leadership in optical fiber and intends to benefit when the market rebounds.
Corning Inc. is a 152-year-old diversified technology company that focuses on high-impact growth opportunities through specialty glass, ceramics, polymers, and light manipulation. It develops innovative products for telecommunications, displays, environmental, life sciences, semiconductors, and other materials markets. The 2003 annual report discusses priorities of protecting financial health, returning to profitability, and continuing to invest in the future. It emphasizes growth through global innovation, achieving balance and stability, and preserving trust through living the company's values.
The document is Corning's 2006 Annual Report and 2007 Proxy Statement. It provides an overview of Corning's financial performance and highlights in 2006, including record net income and earnings per share. It discusses Corning's strategies of protecting financial health, improving profitability, and investing in the future. It also outlines Corning's leadership transition with Wendell Weeks becoming Chairman and CEO and Peter Volanakis becoming President. Key financial figures for 2006 show net sales of $5.17 billion and net income of $1.85 billion, up significantly from 2005.
Corning Inc. reported strong financial performance in its 2007 Annual Report. Net income reached an all-time high of $2.15 billion, up 16% from 2006. Sales increased 13% to $5.86 billion, driven by high demand for LCD glass and new diesel filtration products. Corning also achieved records for earnings per share at $1.34 and operating cash flow at $2.1 billion. The report discusses Corning's strategy of focusing on innovation to drive growth, maintaining financial stability, and improving business portfolio balance. Key accomplishments in 2007 included expanding LCD glass capacity and developing innovations in optical fiber and life sciences technologies.
Corning posted record performance in the first half of 2008 but experienced weak performance in the second half due to the global recession. While sales were up 21% in the first half, they declined 30% in the fourth quarter compared to the third quarter and previous year. Corning implemented cost-cutting measures like job cuts and spending reductions to prepare for a weak 2009. However, Corning remains confident in its long-term strategies and innovative products to drive future growth once the economy recovers.
Atmos Energy Corporation is a natural gas distribution and pipeline company headquartered in Dallas, Texas. In fiscal year 2008, the company reported $180.3 million in net income on $7.2 billion in operating revenues. Atmos Energy distributes natural gas to 3.2 million customers across 12 states and owns one of the largest intrastate pipeline systems in Texas. The company has grown through acquisitions, adding over 2.9 million customers since 1983, and pursues a strategy of growing its regulated and complementary nonregulated natural gas businesses.
Atmos Energy Corporation will host a conference call on February 4, 2009 at 8:00 am ET to discuss its fiscal 2009 first quarter financial results. Atmos Energy, headquartered in Dallas, is the largest natural gas-only distributor in the US, serving about 3.2 million customers across 12 states. Interested parties can access the conference call by dialing 800-218-0204 or listening online at Atmos Energy's website, where an archive of the call will also be made available until April 30, 2009.
Atmos Energy Corporation reported earnings for the first quarter of fiscal year 2009. Net income was $76.0 million, up slightly from $73.8 million in the prior year. Regulated gas distribution operations contributed $57.8 million in net income, up 25% from the prior year. The company affirmed its fiscal year 2009 earnings guidance of $2.05 to $2.15 per share, excluding mark-to-market impacts. Capital expenditures for the year are expected to be $500-$515 million.
Atmos Energy Corporation declared a quarterly dividend of 33 cents per share to shareholders of record on February 25, 2009. This marks the company's 101st consecutive quarterly dividend. Atmos Energy is the country's largest natural-gas-only distributor, serving about 3.2 million customers across 12 states. It also provides natural gas marketing and pipeline management services.
Fred Meisenheimer was promoted to senior vice president and chief financial officer of Atmos Energy Corporation. Meisenheimer has been acting as interim CFO since January 1, 2009. He joined Atmos Energy in 2000 as vice president and controller and has made valuable contributions to the company's success over eight years. Prior to joining Atmos Energy, Meisenheimer held financial and accounting roles at other energy companies.
Atmos Energy Corporation is a natural gas distribution and pipeline company headquartered in Dallas, Texas. In fiscal year 2008, the company reported $180.3 million in net income on $7.2 billion in operating revenues. Atmos Energy distributes natural gas to 3.2 million customers in 1,600 communities across 8 states. The company has grown significantly through acquisitions, adding over 2.7 million customers since 1983. Atmos Energy aims to continue growing its regulated natural gas distribution operations and complementary nonregulated energy businesses.
This document provides an overview of the nonutility operations of Atmos Energy Corporation. It discusses the corporate structure and business segments, including gas marketing, pipeline and storage, and other nonutility operations. It then provides more detailed descriptions of the storage business models, including proprietary storage, full requirements storage, billable plan storage, and parking and loaning transactions. The storage business models are explained in terms of associated risks, risk management strategies, and impact on margins.
The document discusses forward-looking statements and risks associated with them. It provides an overview of Atmos Energy, including its scope of operations across 12 states in the utility segment and 22 states in the nonutility segment. It also summarizes Atmos Energy's financial and operational performance over time, including earnings growth, dividend increases, and acquisition history such as the purchase of TXU Gas.
A conference call was scheduled for February 8, 2006 at 8:00 am EST to review the company's fiscal 2006 first quarter financial results. The company reported a net income of $100 million, up 19% from the prior year quarter. Earnings per share were $0.88, up 11% from the previous year. Key drivers included a contribution from acquisitions and weather that was colder than the prior year. The utility segment saw higher throughput and gross profit.
The document summarizes a conference call to review the company's fiscal 2006 second quarter financial results. Key points from the quarter include a 1.3% increase in net income compared to the prior year quarter, driven by higher contributions from the natural gas marketing segment due to favorable storage and marketing positions. Earnings per share increased 1.3% while operating expenses rose due to higher employee, bad debt, and regulatory costs. Weather during the quarter was warmer than normal, negatively impacting utility throughput.
The document discusses a conference call to review the company's fiscal 2006 third quarter financial results. It provides details on the company's net income, earnings per share, capital expenditures, and performance by business segment for the quarter. The company reported a net loss for the quarter, driven by unrealized mark-to-market losses in natural gas marketing and warmer than normal weather across many utility divisions.
"Does Foreign Direct Investment Negatively Affect Preservation of Culture in the Global South? Case Studies in Thailand and Cambodia."
Do elements of globalization, such as Foreign Direct Investment (FDI), negatively affect the ability of countries in the Global South to preserve their culture? This research aims to answer this question by employing a cross-sectional comparative case study analysis utilizing methods of difference. Thailand and Cambodia are compared as they are in the same region and have a similar culture. The metric of difference between Thailand and Cambodia is their ability to preserve their culture. This ability is operationalized by their respective attitudes towards FDI; Thailand imposes stringent regulations and limitations on FDI while Cambodia does not hesitate to accept most FDI and imposes fewer limitations. The evidence from this study suggests that FDI from globally influential countries with high gross domestic products (GDPs) (e.g. China, U.S.) challenges the ability of countries with lower GDPs (e.g. Cambodia) to protect their culture. Furthermore, the ability, or lack thereof, of the receiving countries to protect their culture is amplified by the existence and implementation of restrictive FDI policies imposed by their governments.
My study abroad in Bali, Indonesia, inspired this research topic as I noticed how globalization is changing the culture of its people. I learned their language and way of life which helped me understand the beauty and importance of cultural preservation. I believe we could all benefit from learning new perspectives as they could help us ideate solutions to contemporary issues and empathize with others.
Independent Study - College of Wooster Research (2023-2024) FDI, Culture, Glo...AntoniaOwensDetwiler
"Does Foreign Direct Investment Negatively Affect Preservation of Culture in the Global South? Case Studies in Thailand and Cambodia."
Do elements of globalization, such as Foreign Direct Investment (FDI), negatively affect the ability of countries in the Global South to preserve their culture? This research aims to answer this question by employing a cross-sectional comparative case study analysis utilizing methods of difference. Thailand and Cambodia are compared as they are in the same region and have a similar culture. The metric of difference between Thailand and Cambodia is their ability to preserve their culture. This ability is operationalized by their respective attitudes towards FDI; Thailand imposes stringent regulations and limitations on FDI while Cambodia does not hesitate to accept most FDI and imposes fewer limitations. The evidence from this study suggests that FDI from globally influential countries with high gross domestic products (GDPs) (e.g. China, U.S.) challenges the ability of countries with lower GDPs (e.g. Cambodia) to protect their culture. Furthermore, the ability, or lack thereof, of the receiving countries to protect their culture is amplified by the existence and implementation of restrictive FDI policies imposed by their governments.
My study abroad in Bali, Indonesia, inspired this research topic as I noticed how globalization is changing the culture of its people. I learned their language and way of life which helped me understand the beauty and importance of cultural preservation. I believe we could all benefit from learning new perspectives as they could help us ideate solutions to contemporary issues and empathize with others.
Fabular Frames and the Four Ratio ProblemMajid Iqbal
Digital, interactive art showing the struggle of a society in providing for its present population while also saving planetary resources for future generations. Spread across several frames, the art is actually the rendering of real and speculative data. The stereographic projections change shape in response to prompts and provocations. Visitors interact with the model through speculative statements about how to increase savings across communities, regions, ecosystems and environments. Their fabulations combined with random noise, i.e. factors beyond control, have a dramatic effect on the societal transition. Things get better. Things get worse. The aim is to give visitors a new grasp and feel of the ongoing struggles in democracies around the world.
Stunning art in the small multiples format brings out the spatiotemporal nature of societal transitions, against backdrop issues such as energy, housing, waste, farmland and forest. In each frame we see hopeful and frightful interplays between spending and saving. Problems emerge when one of the two parts of the existential anaglyph rapidly shrinks like Arctic ice, as factors cross thresholds. Ecological wealth and intergenerational equity areFour at stake. Not enough spending could mean economic stress, social unrest and political conflict. Not enough saving and there will be climate breakdown and ‘bankruptcy’. So where does speculative design start and the gambling and betting end? Behind each fabular frame is a four ratio problem. Each ratio reflects the level of sacrifice and self-restraint a society is willing to accept, against promises of prosperity and freedom. Some values seem to stabilise a frame while others cause collapse. Get the ratios right and we can have it all. Get them wrong and things get more desperate.
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Optimizing Net Interest Margin (NIM) in the Financial Sector (With Examples).pdfshruti1menon2
NIM is calculated as the difference between interest income earned and interest expenses paid, divided by interest-earning assets.
Importance: NIM serves as a critical measure of a financial institution's profitability and operational efficiency. It reflects how effectively the institution is utilizing its interest-earning assets to generate income while managing interest costs.
5 Tips for Creating Standard Financial ReportsEasyReports
Well-crafted financial reports serve as vital tools for decision-making and transparency within an organization. By following the undermentioned tips, you can create standardized financial reports that effectively communicate your company's financial health and performance to stakeholders.
OJP data from firms like Vicinity Jobs have emerged as a complement to traditional sources of labour demand data, such as the Job Vacancy and Wages Survey (JVWS). Ibrahim Abuallail, PhD Candidate, University of Ottawa, presented research relating to bias in OJPs and a proposed approach to effectively adjust OJP data to complement existing official data (such as from the JVWS) and improve the measurement of labour demand.
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
A toxic combination of 15 years of low growth, and four decades of high inequality, has left Britain poorer and falling behind its peers. Productivity growth is weak and public investment is low, while wages today are no higher than they were before the financial crisis. Britain needs a new economic strategy to lift itself out of stagnation.
Scotland is in many ways a microcosm of this challenge. It has become a hub for creative industries, is home to several world-class universities and a thriving community of businesses – strengths that need to be harness and leveraged. But it also has high levels of deprivation, with homelessness reaching a record high and nearly half a million people living in very deep poverty last year. Scotland won’t be truly thriving unless it finds ways to ensure that all its inhabitants benefit from growth and investment. This is the central challenge facing policy makers both in Holyrood and Westminster.
What should a new national economic strategy for Scotland include? What would the pursuit of stronger economic growth mean for local, national and UK-wide policy makers? How will economic change affect the jobs we do, the places we live and the businesses we work for? And what are the prospects for cities like Glasgow, and nations like Scotland, in rising to these challenges?
3. one
To our shareholders
MATTEL EXPERIENCED SIGNIFICANT CHANGE DURING 2000 AND WE HAVE ALSO MADE
PROGRESS TOWARDS RESTORING THE STRENGTH OF OUR BUSINESS.
The most visible change occurred in the company’s Joe Eckroth, our Chief Information
leadership. In May, I joined Mattel as Chairman of Officer, came to Mattel in August from General
the Board and Chief Executive Officer after spend- Electric Company, and is leading our global
ing 23 years at Kraft Foods, most recently as Kraft’s information technology functions and e-business
President and Chief Executive Officer. After 10 initiatives. As Executive Vice President of
months, I can say that I am truly delighted to have Business Planning and Development since
made the decision to join Mattel. It is a pleasure to November, Bryan Stockton, a 24-year veteran
work for a company with such incredible brands and of the food industry, is devoting his efforts to
talented people. Clearly, I believe we have a promis- developing strategies that will help us refocus on
ing future ahead of us. our core toy business. And Tom Debrowski,
I also am fortunate to have very skilled Executive Vice President, Worldwide Operations,
leaders as part of the senior management team. is a global manufacturing and logistics executive
In addition to Mattel veterans Adrienne Fontanella, with 29 years of experience, primarily at The
President, Girls/Barbie; Matt Bousquette, President, Pillsbury Company. He also joined us in November,
Boys/Entertainment; Neil Friedman, President, and is responsible for overseeing our procurement,
Fisher-Price Brands, and Kevin Farr, Chief Financial manufacturing and distribution functions. Both
Officer, we recruited three new executives who will individually and collectively, these well-seasoned
help us strengthen our business and execute our executives are experts in their fields who are
growth strategy. focused on delivering outstanding results.
4. two
Our first priority as a management team was while Vivendi Universal Publishing and THQ pro-
to articulate a vision that defined success for Mattel, vide software development and distribution expertise.
and to establish strategies that would support that As licensing agreements, these partnerships enable us
vision. Simply stated, our vision is to create and to improve earnings as royalties grow, and require no
market “the world’s premier toy brands for today capital investment. This strategy for extending into
and tomorrow.” We intend to reach our vision by the interactive segment will provide attractive oppor-
building brands, cutting costs, developing people tunities for growth going forward.
and keeping our promises. For 2000, Mattel’s domestic sales increased
“Refocus” is the one word we chose to use 4 percent, while international sales declined 3 percent
on the cover of this annual report, because – in one due to foreign exchange rates. In local currency, our
word – it describes our mission going forward. Our international sales grew 6 percent for the year.
new vision refocuses Mattel on its core business – Worldwide sales for our major brands increased across
toys; its core competency – building brands; its all divisions: Barbie grew by 5 percent; Hot Wheels
opportunity for global growth, and its leadership was up 2 percent; American Girl advanced 7 percent,
position with children and their parents. and Fisher-Price posted a strong 26 percent gain.
Consistent with our strategy of returning to In the United States, the world’s largest toy
our roots, we sold The Learning Company in market, sales within the Girls division grew 10 per-
October to Gores Technology Group. The Learning cent, led by 9 percent growth in Barbie and the suc-
Company was not a good fit with Mattel, and it cessful launch of new products, including Diva
quickly became clear that we did not need to own a Starz. Sales in our Infant and Preschool division
software company in order to capitalize on the grew 3 percent as strong core Fisher-Price perfor-
growth potential of the interactive games category. mance offset weakness in licensed character brands.
To ensure our continued participation in this impor- Our domestic Wheels business, which includes
tant segment, in January of this year we forged Hot Wheels, Matchbox and Tyco R/C, gained
worldwide licensing partnerships with two leaders in market share. However, sales fell slightly below
the interactive arena – Vivendi Universal Publishing year-ago levels as relatively high retail inventories
and THQ. These partnerships are consistent with were adjusted down throughout 2000.
our brand building strategy, in which Mattel provides As expected, our U.S. Entertainment business
the content from its vast library of power brands, declined from record 1999 sales related to Toy Story 2
5. three
movie-related products. Additionally, we restruc- Throughout the company, we are increasing
tured our relationship with Disney in 2000 to focus our focus on profitability and cost reduction. Our
on infant and preschool products, which is a more margins have deteriorated in recent years, and we
profitable business for us. Finally, we introduced our intend to reverse that trend. To jump start our cost
Harry Potter products late in 2000, which registered reduction initiative, we announced a financial realign-
strong sales during the holiday season, and we are ment plan in September, which will achieve $200
optimistic about the potential of these products million in savings during the next three years. Early
given the upcoming worldwide release of the first progress is on-track with the established targets.
Harry Potter movie in the fall of 2001. The deployment of our cash flow has also
Looking at our international performance, been scrutinized. As a result, 2000 capital spending
our business in Europe, the world’s second largest was cut and we took the painful action of reducing
toy market, grew slightly in local currencies, revers- the dividend paid to shareholders. The cash we save
ing a four-year decline. Latin America sales grew at will be used to reduce debt, and thereby strengthen
double-digit rates for the year, led by exceptional our balance sheet, providing substantial benefits to
performance in Mexico. Our Canadian business, shareholders in the years to come.
benefiting from new strategies, also performed well Going forward, we will not only invest in
to achieve nearly double-digit growth. While more our brands, we will also invest in our people. It
work needs to be done to complete the turnaround takes talented people to innovate and execute better
of our international business, we are increasingly than the competition, and we are fortunate to have
confident about our future, as second-half 2000 the very best employees in the toy industry. In order
sales advanced 10 percent in local currencies, follow- to achieve this objective, we recently launched a new,
ing two years of decline. comprehensive Strategic Plan for Human Resources,
For 2000, worldwide income from continu- a first in Mattel’s history.
ing operations was $293.3 million or $0.69 per We also added depth to the Board of
share, excluding restructuring and non-recurring Directors, with the election in 2000 of board mem-
charges, compared with $326.7 million or $0.76 per bers Eugene Beard and Ralph Whitworth, and the
share in 1999. Including non-recurring charges, recently announced election of G. Craig Sullivan,
full-year earnings per share from continuing opera- Chairman and Chief Executive Officer of The
tions were $0.40. Clorox Company. The Board supports strong
6. four
corporate governance principles and management I am honored to lead Mattel. When I joined
accountability for enhancing shareholder value. the company in May, I committed to building our
Finally, focusing our efforts to ensure indus- brands, cutting costs and developing our people.
try leadership for Mattel is paramount. Therefore, We have subsequently turned those objectives into
we are committed to helping improve the communi- action, and have refocused the company on strategies
ties we serve. We continue to advance our work that have historically provided top-tier returns to
with the Mattel Independent Monitoring Council shareholders across the entire consumer goods sector.
(MIMCO), whose role is to develop standards for We have defined success for Mattel and,
working conditions and to monitor the performance most important, you have my unwavering commit-
of our plants around the world in meeting those ment to achieving it.
standards. In response to MIMCO’s recommenda-
tions, we have made new capital investments in Sincerely,
China. And our charitable support allows the
Mattel Children’s Hospital at UCLA to continue its
pioneering research while beginning construction of
a new, world-class facility.
Robert A. Eckert
Looking ahead, we have four priorities for Mattel: Chairman of the Board and Chief Executive Officer
1. To strengthen core brand momentum in
the U.S. and abroad; March 22, 2001
2. To execute the financial realignment plan,
and deliver the cost savings announced in
September;
3. To improve supply chain performance and
customer service levels; and
4. To develop our people, and improve our
employee development processes.
8. six
Improve.
THE IMPROVED EXECUTION OF OUR EXISTING TOY BUSINESS WILL HELP TO INCREASE
PROFITABILITY OVER THE LONG TERM.
Mattel’s success depends on more than just great made up of employees who are working with
toys. We will succeed by having the right product our top customers to identify and implement
in the right place at the right time, and always improvements in all elements of the supply chain,
doing it in such a way that we maximize profitabil- from Product Planning to Manufacturing to
ity, since this is our first priority. Distribution, as well as Finance, Information
We are committed to improving the execu- Technology and Sales.
tion of our existing toy business. We will ensure We have undertaken a financial realignment
that all of our business systems provide maximum that will provide $200 million in pre-tax savings
speed and efficiency, and are closely aligned with over the next three years, and we will continue to
the needs of our retail customers, supply chain identify opportunities for new efficiencies and cost
partners and ultimate consumers. For example, we reduction. All of these improvements will con-
have formed a Supply Chain Optimization Team tribute to our underlying goal of profitable growth.
9.
10. eight
Globalize.
INCREASING OUR GLOBAL MARKET SHARE IN DEVELOPED MARKETS AND PENETRATING
NEW MARKETS IS KEY TO OUR FUTURE GROWTH.
With the majority of the world’s children Barbie is the best-selling fashion doll of all
living outside of the United States and Western time and one of the most popular girls’ brands
Europe, substantial opportunity exists for in the world; Fisher-Price is the number one
Mattel to grow its business abroad through brand worldwide for infant and preschool; and
international expansion. Our goal is to be the Hot Wheels vehicles are number one, outselling
toy industry leader not only in the U.S., but in all other toy categories in the U.S.
Europe, Latin America, Asia and emerging mar- And we have the people. Beginning
kets across the globe. We will not only seek to in 2000, our three business unit presidents
gain market share in developed markets, but will assumed worldwide responsibilities for their
penetrate new markets. brand categories. As a result, we have improved
We already have the brands. Whether global strategies for product development and
it’s Barbie, Fisher-Price or Hot Wheels, these customer planning.
time-tested favorites have proven kid appeal.
11.
12. ten
Partner.
PARTNERSHIPS WILL GIVE US THE ABILITY TO EXTEND OUR BRANDS INTO AREAS SUCH AS
INTERACTIVE, THE INTERNET, PUBLISHING AND LICENSING .
Mattel’s portfolio of products includes some of the And, as a result of one of our most recent
strongest brands in the industry, and we plan to take partnerships with Sony Family Pictures Entertainment,
those unparalleled brands and leverage them into new we produced the number one selling new 12-inch
areas including interactive, the Internet, publishing action figure of 2000: Max Steel.
and licensing. At the same time, we will combine A most promising entertainment alliance
other companies’ entertainment properties with our was formed in 2000, when Mattel partnered with
design and marketing prowess to successfully leverage Warner Bros. Worldwide Consumer Products to
those properties within the toy market. acquire the most anticipated license of the year –
In January of 2001, we announced multi- Harry Potter.
year, worldwide licensing agreements with two inter- In addition to these partnerships, we have
active industry leaders – Vivendi Universal Publishing other long-standing, successful alliances with a variety
and THQ – that will allow us to extend our brands of entertainment giants, including Disney, Viacom
like never before into the gaming, educational and International Inc. and its Nickelodeon brand, and
productivity software arenas. Sesame Workshop and its Sesame Street brand.
13.
14. twelve
Invent.
CATCHING NEW TRENDS WILL PROVIDE US WITH GROWTH OPPORTUNITIES WITHIN OUR EXISTING
BUSINESSES AND THE POTENTIAL TO CREATE NEW BRANDS AND ENTER NEW CATEGORIES.
Catching new trends is important in the toy what we already knew about girls and their
industry. Children are constantly moving in new play patterns and taking that knowledge to
directions, and in order to remain relevant and the interactive arena, Mattel created the hottest
fresh, a toy company must remain in like step. new trend in the small doll aisle with these
One of our core strategies at Mattel is unique interactive fashion dolls. Hot Wheels
to catch new trends and apply them not only Thunder Roller Racing Game was the first
within our existing businesses, but by creating handheld electronic game that used a real
new brands and entering new categories. We Hot Wheels die-cast car with a handheld
are also committed to foreseeing new technolo- game for realistic racing. And intelli-Table by
gies, and incorporating them into our core Fisher-Price, developed with Microsoft Smart
business – toys. Technology, literally brought computer appli-
The recent success of Diva Starz pro- cations away from the computer and into the
vides a perfect illustration. By expanding on hands of toddlers.
15.
16. fourteen
Develop.
WE WILL INVEST IN THE DEVELOPMENT OF OUR EMPLOYEES AND PROVIDE THEM
WITH AMPLE OPPORTUNITIES FOR GROWTH.
There are over 30,000 employees worldwide A comprehensive people development
behind the Mattel name, and it is their creativ- program, unveiled in 2000, will address train-
ity and talent that makes us the world’s largest ing, professional development, reward and pro-
and most innovative toy company today. Much motion. Employees will be given an opportu-
like our brands, our people also need develop- nity to have their achievements measured and
ment and growth opportunities. We plan to their accomplishments rewarded while receiving
focus on their needs as one of our most vital training for the next job level. Emphasis will
objectives going forward. also be placed on goal development and “best
practice” sharing.
17.
18. sixteen
Mattel’s Family of Brands.
Hot Wheels®
Fisher-Price®
Barbie®
Max Steel™ licensed toys
Little People®
Diva Starz™
Harry Potter™ licensed toys
Sesame Street® licensed toys
American Girl®
19. seventeen
Five-Year Financial Summary
Mattel, Inc. and Subsidiaries
For the Year Ended December 31 (a) (b)
(In thousands, except per share and percentage information) 2000 1999 1998 1997 1996
OPERATING RESULTS:
Net sales $4,669,942 $4,595,490 $4,698,337 $4,778,663 $4,535,332
Gross profit 2,100,785 2,182,021 2,309,795 2,364,085 2,219,758
% of net sales 45.0% 47.5% 49.2% 49.5% 48.9%
Operating profit (c) 378,403 301,773 570,279 515,212 636,982
% of net sales 8.1% 6.6% 12.1% 10.8% 14.0%
Income from continuing operations before income
taxes and extraordinary item 225,424 170,164 459,446 425,082 536,756
Provision for income taxes 55,247 61,777 131,193 135,288 164,532
Income from continuing operations before extraordinary item 170,177 108,387 328,253 289,794 372,224
Loss from discontinued operations (a) (601,146) (190,760) (122,200) (467,905) (350,262)
Extraordinary item - loss on early retirement of debt (4,610)
– – – –
Net income (loss) (430,969) (82,373) 206,053 (182,721) 21,962
INCOME (LOSS) PER COMMON SHARE (d):
Income (loss) per common share - Basic
Income from continuing operations 0.40 0.25 0.82 0.76 1.02
Loss from discontinued operations (a) (1.41) (0.46) (0.31) (1.27) (0.98)
Extraordinary item (0.01)
– – – –
Net income (loss) (1.01) (0.21) 0.51 (0.52) 0.04
Income (loss) per common share - Diluted
Income from continuing operations 0.40 0.25 0.76 0.74 0.99
Loss from discontinued operations (a) (1.41) (0.45) (0.29) (1.24) (0.95)
Extraordinary item (0.01)
– – – –
Net income (loss) (1.01) (0.20) 0.47 (0.51) 0.04
DIVIDENDS DECLARED PER COMMON SHARE (d) 0.27 0.35 0.31 0.27 0.24
As of Year End (a) (b)
(In thousands) 2000 1999 1998 1997 1996
FINANCIAL POSITION:
Total assets $4,313,397 $4,673,964 $4,612,770 $3,915,059 $3,885,006
Long-term liabilities 1,407,892 1,145,856 1,124,756 808,297 633,342
Stockholders’ equity 1,403,098 1,962,687 2,170,803 1,933,338 2,109,787
(a) Financial data for 1997 through 1999 reflect the retroactive effect of the merger, accounted for as a pooling of interests, with The Learning Company, Inc. (“Learning Company”) in May 1999. As more fully
described in Note 13 to the Consolidated Financial Statements, the Consumer Software segment, which was comprised primarily of Learning Company, was reported as a discontinued operation effective
March 31, 2000, and the consolidated financial statements were reclassified to segregate the net investment in, and the liabilities and operating results of the Consumer Software segment.
(b) Consolidated financial information for 1996 and 1997 has been restated retroactively for the effects of the March 1997 merger with Tyco Toys, Inc. (“Tyco”), accounted for as a pooling of interests.
(c) Represents income from continuing operations before interest expense and provision for income taxes.
(d) Per share data reflect the retroactive effect of a stock split distributed to stockholders in March 1996, and the mergers with Learning Company and Tyco in 1999 and 1997, respectively.
20. eighteen
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Mattel, Inc. and Subsidiaries
CAUTIONARY STATEMENT Other Risks
Certain written and oral statements made or incorporated by reference - Mattel’s inability to ensure successful implemention of all phases
from time to time by Mattel, Inc. and its subsidiaries (“Mattel”) or its repre- of its financial realignment plan and realization of the anticipated
sentatives in this Annual Report, other filings or reports filed with the cost savings and improved cash flows
Securities and Exchange Commission, press releases, conferences, or other- - Development of new technologies, including digital media and the
wise, are “forward-looking statements” within the meaning of the Private Internet, which may create new risks to Mattel’s ability to protect
Securities Litigation Reform Act of 1995. Mattel is including this caution- its intellectual property rights or affect the development, marketing
ary statement to make applicable and take advantage of the safe harbor and sales of Mattel’s products
provisions of the Private Securities Litigation Reform Act of 1995 for any - Changes in laws or regulations, both domestically and internation-
such forward-looking statements. Forward-looking statements include ally, including those affecting the Internet, consumer products,
any statement that may predict, forecast, indicate, or imply future results, environmental activities, import and export laws or trade restrictions,
performance, or achievements. Forward-looking statements can be identi- which may lead to increased costs or interruption of normal business
fied by the use of terminology such as “believe”, “anticipate”, “expect”, operations of Mattel
“estimate”, “may”, “will”, “should”, “project”, “continue”, “plans”, “aims”, - Current and future litigation, governmental proceedings or environ-
“intends”, “likely”, or other words or phrases of similar terminology. mental matters, which may lead to increased costs or interruption
Management cautions you that forward-looking statements involve risks of normal business operations of Mattel
and uncertainties that may cause actual results to differ materially from - Labor disputes, which may lead to increased costs or disruption of
the forward-looking statements. In addition to the risk factors listed in any of Mattel’s operations
Mattel’s Annual Report on Form 10-K and other important factors detailed
herein and from time to time in other reports filed by Mattel with the The risks included herein are not exhaustive. Other sections of
Securities and Exchange Commission, including Forms 8-K, 10-Q and 10-K, this Annual Report may include additional factors, which could materi-
the following important factors could cause actual results to differ materi- ally and adversely impact Mattel’s business, financial condition and
ally from those suggested by any forward-looking statements. results of operations. Moreover, Mattel operates in a very competitive
and rapidly changing environment. New risk factors emerge from time
Marketplace Risks to time and it is not possible for management to predict the impact of
- Increased competitive pressure, both domestically and internation- all such risk factors on Mattel’s business, financial condition or results
ally, which may negatively affect the sales of Mattel’s products of operations or the extent to which any factor, or combination of fac-
- Changes in public and consumer preferences, which may negatively tors, may cause actual results to differ materially from those contained
affect Mattel’s business in any forward-looking statements. Given these risks and uncertainties,
- Significant changes in the play patterns of children, whereby they investors should not place undue reliance on forward-looking state-
are increasingly attracted to more developmentally advanced prod- ments as a prediction of actual results.
ucts at younger ages, which may affect brand loyalty and the per-
ceived value of and demand for Mattel’s products SUMMARY
- Possible weaknesses in economic conditions, both domestically and The following discussion should be read in conjunction with the consoli-
internationally, which may negatively affect the sales of Mattel’s dated financial statements and the related notes that appear elsewhere
products and the costs associated with manufacturing and distrib- in this Annual Report. Mattel’s consolidated financial statements for all
uting these products periods present the Consumer Software segment as a discontinued opera-
- Concentration of Mattel’s business with a small group of major tion. Unless otherwise indicated, the following discussion relates only to
customers Mattel’s continuing operations. Additionally, the segment and brand
- Significant changes in the buying patterns of major customers category information was restated from prior year presentation to
- Shortages of raw materials or components, which may affect conform to the current management structure.
Mattel’s ability to produce product in time to meet customer demand Mattel designs, manufactures, and markets a broad variety of toy
- Mattel’s inability to accurately predict future consumer demand, products on a worldwide basis through both sales to retailers (i.e. “cus-
including during the peak holiday season tomers”) and direct to consumers. Mattel’s business is dependent in
great part on its ability each year to redesign, restyle and extend existing
Financing Considerations core products and product lines, to design and develop innovative new
- Foreign currency exchange fluctuations, which may affect Mattel’s products and product lines, and to successfully market those products
reportable income and product lines. Mattel plans to continue to focus on its portfolio
- Significant increases in interest rates, both domestically and inter- of traditional brands that have historically had worldwide sustainable
nationally, which may negatively affect Mattel’s cost of financing appeal, to create new brands utilizing its knowledge of children’s play
both its operations and investments patterns and to target customer and consumer preferences around the
- Reductions in Mattel’s credit ratings, which may negatively impact world. Mattel also intends to expand its core brands through the
the cost of satisfying its financing requirements Internet, and licensing and entertainment partnerships.
21. nineteen
Mattel, Inc. and Subsidiaries
Mattel’s portfolio of brands and products are grouped in the The $22.9 million restructuring charge for 2000 relates to
following categories: the elimination of positions at headquarters locations in El Segundo,
Fisher-Price and Pleasant Company, closure of certain international
Girls - including Barbie® fashion dolls and accessories, collector offices, and consolidation of facilities. Total worldwide headcount
dolls, Cabbage Patch Kids®, Polly Pocket®, and Diva Starz™ reduction as a result of the restructuring is approximately 500
Boys-Entertainment - including Hot Wheels®, Matchbox®, Tyco® employees, of which 340 were terminated during 2000. The compo-
Electric Racing and Tyco® Radio Control (collectively “Wheels”), and nents of the restructuring charges are as follows (in millions):
Disney, Nickelodeon®, Harry Potter™, Max Steel™ and games and
Balance
puzzles (collectively “Entertainment”)
Total Amounts December 31,
Infant & Preschool - including Fisher-Price®, Power Wheels®, Charges Incurred 2000
Sesame Street®, Disney preschool and plush, Winnie the Pooh®, Severance and other compensation $19 $(3) $16
Blue’s Clues®, See ‘N Say®, Magna Doodle®, and View-Master® Asset writedowns 2 (2) -
Direct Marketing - American Girl®, Barbie®, Wheels, and Lease termination costs 1 - 1
Other 1 - 1
Fisher-Price®
Total restructuring charge and asset writedowns $23 $(5) $18
2000 FINANCIAL REALIGNMENT PLAN
Under the plan, Mattel expects to generate approximately
During the third quarter of 2000, Mattel initiated a financial realign-
$200 million of cost savings over the next three years. However, there
ment plan designed to improve gross margin; selling, general and
is no assurance that Mattel will be able to successfully implement all
administrative expenses; operating profit, and cash flow. The plan
phases of its financial realignment plan or that it will realize the
was one of the first major initiatives led by Mattel’s new chief execu-
anticipated cost savings and improved cash flows.
tive officer, Robert Eckert. The financial realignment plan, together
with the disposition of Learning Company, was part of new manage-
1999 RESTRUCTURING AND NONRECURRING CHARGES
ment’s strategic plan to focus on growing Mattel’s core brands and
During 1999, Mattel initiated a restructuring plan for its continuing
lowering operating costs and interest expense. The plan will require
operations and incurred certain other nonrecurring charges totaling
a total pre-tax charge estimated at approximately $250 million or
$281.1 million, approximately $218 million after-tax or $0.51 per
$170 million on an after-tax basis, of which approximately $100 mil-
diluted share. The restructuring plan was aimed at leveraging global
lion represents cash expenditures and $70 million represents non-cash
resources in the areas of manufacturing, marketing and distribution,
writedowns. Total cash outlay will be funded from existing cash bal-
eliminating duplicative functions worldwide and achieving improved
ances and internally generated cash flows from operations. During
operating efficiencies. The plan, which was designed to reduce prod-
2000, Mattel recorded a pre-tax charge of $125.2 million, approxi-
uct costs and overhead spending, resulted in actual cost savings of
mately $84 million after-tax or $0.20 per diluted share, related to the
approximately $35 million in 1999 and approximately $80 million in
initial phase of the financial realignment plan. In accordance with
2000. Total cash outlays are funded from existing cash balances and
generally accepted accounting principles, future pre-tax implementa-
internally generated cash from continuing operations.
tion costs of approximately $125 million could not be accrued in 2000.
The following were the major restructuring initiatives:
These costs will be recorded over the next two years.
The following are the major initiatives included in the financial
- Consolidation of the Infant & Preschool businesses;
realignment plan:
- Consolidation of the domestic and international back-office functions;
- Consolidation of direct marketing operations;
- Reduce excess manufacturing capacity;
- Realignment of the North American sales force;
- Terminate a variety of licensing and other contractual arrange-
- Termination of various international distributor contracts; and
ments that do not deliver an adequate level of profitability;
- Closure of three higher-cost manufacturing facilities.
- Eliminate product lines that do not meet required levels of profitability;
- Improve supply chain performance and economics;
The termination of approximately 3,000 employees around
- Eliminate approximately 350 positions at US-based headquarters
the world was completed during 2000. Through December 31, 2000,
locations in El Segundo, Fisher-Price and Pleasant Company
a total of approximately $60 million was incurred related to employee
through a combination of layoffs, elimination of open requisitions,
terminations.
attrition and retirements; and
- Close and consolidate certain international offices.
Mattel incurred a $22.9 million pre-tax restructuring charge
related to the 2000 financial realignment plan. This charge, combined
with a $7.0 million adjustment to the 1999 restructuring plan, resulted
in $15.9 million of net pre-tax restructuring and other charges in 2000.
22. twenty
Mattel, Inc. and Subsidiaries
Components of the accrued restructuring and other charges, The following table provides a comparison of the reported
including adjustments, related to continuing operations are as follows results and the results excluding nonrecurring charges for 2000
(in millions): versus 1999 (in millions):
Balance Balance For The Year
December 31, Amounts December 31, 2000 1999
1999 Adjustments Incurred 2000
Results Excl.
Severance and other compensation $ 54 $(14) $(35) $5 Reported Nonrecurring Nonrecurring Reported
Distributor, license and other Results Charges Charges Results
contract terminations 10 (4) (6) -
Net sales $4,670 $ - $4,670 $4,595
Lease termination costs 15 1 (10) 6
Gross profit $2,101 45% $ (79) $2,180 47% $2,182 48%
Total restructuring costs 79 (17) (51) 11
Advertising and
Merger-related transaction
and other costs 4 (1) - 3 promotion expenses 686 15 5 681 15 684 15
Other nonrecurring charges 19 11 (6) 24 Other selling and admin.
expenses 967 21 59 908 19 868 19
Total restructuring and
Amortization of intangibles 52 1 - 52 1 52 1
other charges $102 $ (7) $(57) $38
Restructuring and
other charges 16 - 16 - - 281 6
The adjustments made in 2000 to restructuring and merger- Other (income) expense, net 2 - 21 (19) - (5) -
related transaction costs largely reflect the reversal of excess reserves Operating income 378 8 (180) 558 12 302 7
Interest expense 153 3 - 153 3 132 3
as a result of lower than anticipated costs to complete certain actions
Income from continuing
compared to previous estimates. The restructuring actions were com-
operations before
pleted in 2000; however, future cash outlays will extend beyond this income taxes $ 225 5% $(180) $ 405 9% $ 170 4%
date, largely due to severance payment options available to affected
employees and future lease payments on vacated spaces.
Net sales from continuing operations for 2000 increased 2% to
The other nonrecurring charges principally relate to the 1998
$4.7 billion, from $4.6 billion in 1999. In local currency, sales were up
recall of Mattel’s Power Wheels® vehicles and environmental remedia-
4% compared to a year ago. Sales within the US increased 4% and
tion costs related to a former manufacturing facility on a leased prop-
accounted for 71% of consolidated sales in 2000 compared to 70% in
erty in Beaverton, Oregon. The adjustment to other nonrecurring
1999. Sales outside the US decreased 3% from a year ago. However,
charges reflects increases in reserves for these activities.
before the unfavorable exchange impact, international sales increased by
6% compared to 1999.
RESULTS OF CONTINUING OPERATIONS
Worldwide sales in the Girls category increased 4% due to a 5%
2000 Compared to 1999
worldwide increase in Barbie® products, partially offset by decreases in
Consolidated Results
sales of large dolls. Barbie® sales were up 9% in the US and down 1% in
Net income from continuing operations for 2000 was $170.2 million
international markets. Excluding the unfavorable exchange impact,
or $0.40 per diluted share as compared to net income from continuing
Barbie® sales were up 8% in international markets.
operations of $108.4 million or $0.25 per diluted share in 1999.
Sales in the Boys-Entertainment category were flat worldwide, or
Profitability in 2000 was negatively impacted by a $125.2 million pre-
up 2% before the unfavorable impact of foreign exchange. The Boys-
tax charge related to the initial phase of the 2000 financial realignment
Entertainment category was negatively impacted by lower sales of Toy
plan, a $53.1 million pre-tax charge for the departure of certain senior
Story 2 products in 2000 compared to 1999. Excluding the impact of Toy
executives in the first quarter, and an $8.4 million pre-tax charge
Story 2 and this year’s Harry Potter™ products, the Boys-Entertainment
related to losses realized on the disposition of a portion of the stock
category grew 2% for the year. Worldwide Wheels sales decreased 2%,
received as part of the sale of CyberPatrol. These charges were partially
or were flat before the unfavorable impact of foreign exchange. Sales of
offset by a $7.0 million reversal of the 1999 reserve related to restruc-
Entertainment products increased 2% worldwide, driven by continued
turing and other charges. The combined effect of the above items (the
strength of Max Steel™, Mattel games and Harry Potter™ products, par-
“nonrecurring charges”) resulted in a pre-tax net charge of $179.7 mil-
tially offset by lower sales of Toy Story 2 products.
lion, approximately $123 million after-tax or $0.29 per diluted share.
Sales in the Infant & Preschool category were flat worldwide, or
Profitability in 1999 was negatively impacted by a $281.1 million
up 2% compared to last year before the unfavorable impact of foreign
charge, approximately $218 million after-tax or $0.51 per diluted
exchange. Worldwide sales of core Fisher-Price® products grew 26%,
share, related to restructuring and other nonrecurring charges.
up 37% in the US and flat in international markets. Excluding the unfa-
vorable exchange impact, core Fisher-Price® products were up 11% in
international markets. Declines in worldwide sales for Sesame Street®,
Disney preschool and Winnie the Pooh® offset domestic growth in core
Fisher-Price® products.
23. twenty one
Mattel, Inc. and Subsidiaries
Direct marketing sales, which include Pleasant Company, Barbie® The US Girls segment sales increased by 10% in 2000 com-
collector and Fisher-Price® catalogs, increased 13% compared to last pared to 1999 due to a 9% increase in sales of Barbie® products.
year due to strong sales of the new American Girl® character Kit Within the Barbie® product line, Mattel has employed strategies
Kittredge™, introduction of AG Mini*s™, Angelina Ballerina™ and the including targeting products for specific age groups, creating a new
Fisher-Price® and Everything Barbie® catalogs. logo and package design, and supporting retailer demand for products
Gross profit, as a percentage of net sales, was 45.0% in 2000 in terms of earlier shipments and product offerings. The US Boys-
compared to 47.5% last year. Reported cost of sales includes a Entertainment segment sales decreased 4% due to a 3% decrease in
$78.6 million nonrecurring charge related to the termination of a variety sales of Wheels products and a 7% decrease in sales of Entertainment
of licensing agreements, other contractual arrangements and elimination products. Within the Wheels category, Mattel gained market share.
of product lines that did not deliver an adequate level of profitability. However, sales fell below last year as relatively high retail inventories
Excluding the nonrecurring charge, gross profit was 46.7% in 2000 were adjusted down throughout 2000. Within the Entertainment cat-
compared to 47.5% a year ago due to unfavorable product mix, egory, growth from Max Steel™ and Mattel games were more than
unfavorable foreign exchange rates and higher shipping costs. offset by lower sales of movie-related toy products relative to the
Excluding the $4.8 million nonrecurring charge related to the 1999 strong sales of Toy Story 2 products. Excluding Harry Potter™
termination of a contractual arrangement, advertising and promotion and Toy Story 2, Entertainment sales were up 10% in domestic mar-
expenses as a percentage of net sales were 14.6% compared to 14.9% in kets. The US Infant & Preschool segment sales increased 3%, largely
1999. The decrease is attributable to improved efficiencies of promo- due to increased sales of core Fisher-Price® and Power Wheels® prod-
tional spending. ucts, partially offset by declines in sales of Sesame Street®, Disney
Excluding the $5.9 million nonrecurring charge related to settle- preschool and Winnie the Pooh® products.
ment of certain litigation matters and the $53.1 million charge related Sales in the Other segment increased 5% compared to last
to termination costs for the departure of senior executives, other selling year, primarily due to higher sales of American Girl® products. The
and administrative expenses were 19.4% of net sales in 2000 compared International Toy Marketing segment sales decreased by 3% compared
to 18.9% in 1999. The increase is largely due to compensation costs to last year. Excluding the unfavorable foreign exchange impact, sales
incurred for the recruitment and retention of senior executives. grew by 6% due to increased sales across all core categories, includ-
Other expense, net includes a $12.6 million nonrecurring ing Barbie®, Fisher-Price®, Wheels and Entertainment products.
charge primarily related to the writeoff of certain noncurrent assets Operating profit in the US Girls segment increased by 13%,
and an $8.4 million charge related to losses realized on the disposition largely due to higher sales volume. The US Boys-Entertainment seg-
of a portion of the stock received as part of the sale of CyberPatrol. ment experienced an 11% decline in operating profit, largely due to
Excluding the nonrecurring charges, the increase in other income of lower sales volume and higher shipping costs. Operating profit in the
$14.1 million is due to investment and interest income. US Infant & Preschool segment increased 12% due to greater sales of
Interest expense was $153.0 million in 2000 compared with relatively higher margin core Fisher-Price® products. Operating profit
$131.6 million in 1999, largely due to higher borrowings necessitated in the Other segment increased by 4%, largely due to increased direct
by the funding of Mattel’s Consumer Software business. In addition, marketing volume, partially offset by higher operating costs to sup-
Mattel’s overall interest rate was higher due to increased market rates port the expansion of the direct marketing business. The International
and debt refinancing that occurred during the second half of the year. Toy Marketing segment operating profit decreased 17%, largely due to
Mattel’s tax rate before nonrecurring charges was 27.6%, consistent unfavorable foreign exchange rates.
with the targeted rate for the year.
1999 Compared to 1998
Business Segment Results Consolidated Results
Mattel’s reportable segments are separately managed business units Net income from continuing operations for 1999 was $108.4 million
and include toy marketing and toy manufacturing. The Toy Marketing or $0.25 per diluted share as compared to net income from continu-
segment is divided on a geographic basis between domestic and inter- ing operations of $328.3 million or $0.76 per diluted share in 1998.
national. The domestic Toy Marketing segment is further divided into The 1999 results were negatively impacted by restructuring and other
US Girls, US Boys-Entertainment, US Infant & Preschool and Other. charges totaling $281.1 million, approximately $218 million after-tax
The US Girls segment includes products such as Barbie®, Polly Pocket® or $0.51 per diluted share, related to the 1999 restructuring plan and
and Cabbage Patch Kids®. The US Boys-Entertainment segment other nonrecurring charges. The 1998 results of operations were neg-
includes products in the Wheels and Entertainment categories. atively impacted by a $44.0 million nonrecurring charge in connection
The US Infant & Preschool segment includes Fisher-Price®, Disney with the voluntary recall of Power Wheels® ride-on vehicles and a
preschool and plush, Power Wheels®, Sesame Street® and other customer-related antitrust litigation settlement. The 1998 nonrecur-
preschool products. The Other segment principally sells girls specialty ring charge of approximately $31 million after-tax impacted earnings
products, including American Girl®, which are sold through the direct by $0.07 per diluted share.
marketing distribution channel. The International Toy Marketing seg-
ment sells products in all toy categories.
24. twenty two
Mattel, Inc. and Subsidiaries
The following table provides a comparison of the reported Interest expense increased $20.8 million, primarily due to
results for 1999 versus 1998 (in millions): increased short- and long-term borrowings to fund Learning Company’s
cash requirements and to finance Mattel’s 1998 acquisitions.
For the Year
1999 1998 Business Segment Results
Net sales $4,595 $4,698 The US Girls segment sales reached $1.0 billion in 1999, consistent
Gross profit $2,182 48% $2,310 49% with 1998. Increased sales of Barbie® product was offset by declines
Advertising and promotion expenses 684 15 787 17
in sales of Cabbage Patch Kids® products. The US Boys-Entertainment
Other selling and admin. expenses 868 19 863 18
segment sales increased slightly from 1998, as a 4% increase in sales
Amortization of intangibles 52 1 41 1
Restructuring and other charges 281 6 44 1 of Entertainment product was offset by a 2% decrease in sales of
Other (income) expense, net (5) - 5 -
Wheels product. The US Infant & Preschool segment sales declined
Operating income 302 7 570 12
by 1%, mainly due to lower sales of Sesame Street®, Disney preschool
Interest expense 132 3 111 2
and Winnie the Pooh® product, offset by increased sales of core
Income from continuing operations
Fisher-Price® and Power Wheels® products. Sales in the Other segment
before income taxes $ 170 4% $ 459 10%
increased by 13%, largely due to incremental sales resulting from the
July 1998 acquisition of the Pleasant Company. The International Toy
Net sales for 1999 were $4.6 billion, a decrease of 2% from
Marketing segment sales decrease of 8% was partially attributable to
$4.7 billion in 1998. In local currency, sales declined 1% compared to
unfavorable foreign exchange rates and unfavorable industry-wide
1998. Sales in the US remained relatively flat and accounted for 70%
trends, especially the shift amongst European retailers to just-in-time
and 68% of consolidated net sales in 1999 and 1998, respectively.
inventory management. By brand, the International Toy Marketing
Sales outside the US were down 8%. Excluding the unfavorable for-
segment experienced lower sales of Barbie® and core Fisher-Price®
eign exchange impact, international sales declined by 5%.
products, partially offset by sales increases in Wheels and
Worldwide sales in the Girls category decreased 9%, largely
Entertainment products.
due to declines in Barbie® and Cabbage Patch Kids® products. Barbie®
Operating profit for the US Girls, US Boys-Entertainment
sales were up 2% in the US and down 13% in international markets.
and US Infant & Preschool segments in total declined by 4%, largely
Excluding the unfavorable exchange, Barbie® sales were down 10% in
due to unfavorable product mix partially offset by lower advertising
international markets.
costs. Operating profit in the Other segment declined by 69%, largely
Sales in the Boys-Entertainment category were up 9% world-
due to incremental amortization and overhead expenses resulting
wide. Sales in the Wheels category grew 4%, largely due to increased
from the July 1998 acquisition of Pleasant Company. The International
sales of Hot Wheels® product. Sales in the Entertainment category
Toy Marketing segment operating profit decreased by 25%, primarily
increased 19% worldwide, largely due to the success in 1999 of toys
due to lower sales volume and unfavorable product mix partially
associated with Disney’s feature motion picture Toy Story 2.
offset by lower advertising costs.
Sales in the Infant & Preschool category declined 3% world-
wide, largely attributable to the success of Sesame Street® products
INCOME TAXES
in 1998 including ‘Tickle Me Elmo’, and decreased sales of Disney’s
The effective income tax rate on continuing operations was 24.5% in
Winnie the Pooh® products, partially offset by an increase in sales
2000 compared to 36.3% in 1999 and 28.6% in 1998. The effective
of core Fisher-Price® and Power Wheels® products.
rate on continuing operations, excluding restructuring and nonrecurring
Direct marketing sales, which include Pleasant Company,
charges, was 27.6% for 2000 and 1999, and was favorably impacted by
Barbie® collector and Fisher-Price® catalogs, increased by 24% com-
income earned in foreign jurisdictions taxed at lower rates.
pared to 1998, largely due to incremental sales of American Girl®
The difference in the overall tax rate on continuing operations
product resulting from the Pleasant Company acquisition. Pleasant
between 1999 and 2000 is caused by the restructuring and nonrecur-
Company was acquired in July 1998 and, therefore, the results of
ring charges. In 1999, a significant portion of the restructuring
operations for 1998 only reflect six months of results.
expenses consisted of expenses which were not deductible for tax pur-
Gross profit, as a percentage of net sales, was 47.5% in 1999,
poses, resulting in a lower effective tax benefit on these restructuring
down from 49.2% in 1998. This decline was largely due to overall
charges, and a higher overall effective tax rate. In 2000, most of the
change in product mix, unfavorable foreign exchange rates and higher
restructuring and nonrecurring charges are deductible for tax purposes
shipping costs. As a percentage of net sales, advertising and promo-
and provide a benefit at or near the effective US tax rate, resulting
tion expenses were 14.9%, a decrease of 1.8 percentage points versus
in a lower overall effective tax rate for 2000 as compared to 1999.
1998. Other selling and administrative expenses increased from
The pre-tax loss from US operations includes interest expense,
18.4% of net sales in 1998 to 18.9% of net sales in 1999. Amortization
amortization of intangibles and corporate headquarters expenses.
of intangibles increased by $10.7 million, mainly as a result of a full
Therefore, the pre-tax losses from US operations as a percentage of
year of incremental amortization for Pleasant Company and Bluebird
the consolidated pre-tax income was less than the sales to US cus-
Toys PLC acquired in mid-year 1998.
tomers as a percentage of the consolidated gross sales.
25. twenty three
Mattel, Inc. and Subsidiaries
FINANCIAL POSITION income from continuing operations and cash received from exercise
Mattel’s cash and short-term investments decreased slightly to of employee stock options.
$232.4 million at year end 2000 compared to $247.4 million at year
end 1999. The repayment of the $100.0 million 6-3/4% Senior Notes, LIQUIDITY
the reduction in short-term borrowings, and the funding of the Mattel’s primary sources of liquidity over the last three years have
Consumer Software business, including repayment of Learning been cash on hand at the beginning of the year, cash flows generated
Company’s $201.0 million 5-1/2% Senior Notes, was offset by proceeds from continuing operations, long-term debt issuances and short-term
received from the issuance of the Euro Notes and the term loan and seasonal borrowings. Operating activities generated cash flows from
cash generated from continuing operations. The disposition of continuing operations of $555.1 million during 2000, compared to
Learning Company is expected to have a positive impact on Mattel’s $430.5 million in 1999 and $586.2 million in 1998. The increase in
cash position, since it will no longer need to fund the losses cash flows from operating activities in 2000 is largely due to increased
generated by that business. Accounts receivable, net decreased by income from continuing operations and increased cash collections.
$162.4 million to $839.6 million at year end 2000, principally due to Mattel invested its cash flows during the last three years mainly
improved cash collections. Inventories increased by $53.4 million to in additions to tooling in support of new products and construction
$489.7 million at year end 2000. Mattel intends to move toward a of new manufacturing facilities. In 1998, Mattel also invested in its
more optimal inventory level through its current focus on improving acquisitions of Pleasant Company and Bluebird Toys PLC.
its supply chain performance. Property, plant and equipment, net Over the last three years, Mattel received cash inflows from the
decreased $77.0 million to $647.8 million at year end 2000, largely issuance of long-term debt and short-term borrowings, which were
due to depreciation. Intangibles decreased $63.8 million to $1.14 primarily used to support operating activities, repay long-term debt
billion at year end 2000, mainly due to goodwill amortization. Other and, in 1998, to fund acquisitions. In 2000, Mattel received proceeds
noncurrent assets increased by $331.0 million to $765.7 million at from the issuance of a term loan and Euro Notes, which were used to
year end 2000, principally due to increased noncurrent deferred tax repay its 6-3/4% Senior Notes upon maturity and support operating
assets resulting from operating losses. Net investment in discontin- activities. In 1999, Mattel increased its short-term borrowings to
ued operations decreased by $450.4 million to $11.5 million at year support its operating activities and to fund the Consumer Software
end 2000, primarily due to the disposition of Learning Company. segment. During 1999, Mattel repaid $30.0 million of its medium-
Short-term borrowings decreased $143.1 million compared to term notes. In 1998, Mattel received cash flows from the issuance of
1999 year end, primarily due to the repayment of debt. Current por- senior notes and medium-term notes, which were used to fund its
tion of long-term debt increased by $29.6 million, largely due to the 1998 acquisitions, retire higher-cost debt and support operating
reclassification of $30.5 million in medium-term notes maturing in activities. In 1998, Mattel repaid the long-term debt and mortgage
2001 from long-term debt. note assumed as part of the Pleasant Company acquisition. During
A summary of Mattel’s capitalization is as follows (in millions): the last three years, Mattel paid dividends on its common stock and,
in 1998 and 1999, Mattel repurchased treasury stock. In 2000, Mattel
As of Year End did not repurchase treasury stock.
2000 1999 Mattel announced during the third quarter of 2000 a change
Medium-term notes $ 510.0 18% $ 540.5 17% in its dividend policy consisting of a reduction in the annual cash div-
Senior notes 690.7 25 400.0 13
idend from $0.36 per share to $0.05 per share. No quarterly dividend
Other long-term debt obligations 41.7 1 42.4 2
for the fourth quarter of 2000 was declared. The $0.05 per share
Total long-term debt 1,242.4 44 982.9 32
annual dividend rate under the new dividend policy is expected to
Other long-term liabilities 165.5 6 163.0 5
Stockholders’ equity 1,403.1 50 1,962.7 63 become effective in December 2001, when and as declared by the
$2,811.0 100% $3,108.6 100% board of directors. The reduction of the dividend will result in annual
cash savings of approximately $130 million. Mattel currently intends
to use the cash savings to reduce debt, and thereby strengthen the
Total long-term debt increased by $259.5 million at year end
balance sheet. In addition, the disposition of Learning Company is
2000 compared to year end 1999 due to issuance of Euro 200 million
expected to result in improved cash flows since Mattel is no longer
Notes and a $200.0 million term loan, partially offset by the repay-
required to fund this business.
ment of $100.0 million of senior notes. Mattel expects to satisfy its
future long-term capital needs through the retention of corporate
SEASONAL FINANCING
earnings and the issuance of long-term debt instruments. In
Mattel expects to finance its seasonal working capital requirements
November 1998, Mattel filed its current universal shelf registration
for the coming year by using existing and internally generated cash,
statement allowing it to issue up to $400.0 million of debt and equity
issuing commercial paper, selling certain trade receivables and using
securities, all of which was available to be issued as of December 31,
various short-term bank lines of credit. Mattel’s domestic unsecured
2000. Stockholders’ equity of $1.4 billion at year end 2000 decreased
committed revolving credit facility provides $1.0 billion in short-term
$559.6 million from year end 1999, primarily due to cumulative losses
borrowings from a commercial bank group. In first quarter 2000,
from discontinued operations, common dividends declared and the
Mattel implemented a 364-day, $400.0 million unsecured committed
unfavorable effect of foreign currency translation, partially offset by
26. twenty four
Mattel, Inc. and Subsidiaries
credit facility, with essentially the same terms and conditions as the a voluntary recall involving up to 10 million battery-powered Power
$1.0 billion revolving credit facility. The $400.0 million, 364-day facility Wheels® ride-on vehicles. The recall involves the replacement of elec-
is expected to be renewed in first quarter 2001. Under both domestic tronic components that may overheat, particularly when consumers
credit facilities, Mattel is required to meet financial covenants for con- make alterations to the product, and covers vehicles sold nationwide
solidated debt-to-capital and interest coverage. Currently, Mattel is in since 1984 under nearly 100 model names. Additionally, Fisher-Price
compliance with such covenants. has been notified by the Consumer Product Safety Commission that
Mattel also expects to have approximately $392 million of the Commission is considering whether Fisher-Price may be subject
individual short-term foreign credit lines with a number of banks to a fine for delayed reporting of the facts underlying the recall.
available in 2001, which will be used as needed to finance seasonal
working capital requirements of certain foreign subsidiaries. Greenwald Litigation
On October 13, 1995, Michelle Greenwald filed a complaint against
DISCONTINUED OPERATIONS Mattel in Superior Court of the State of California, County of Los
In May 1999, Mattel completed its merger with Learning Company, in Angeles. Ms. Greenwald is a former employee whom Mattel terminat-
which Learning Company was merged with and into Mattel, with Mattel ed. Her complaint sought general and special damages, plus punitive
being the surviving corporation. Due to substantial losses experienced damages, for breach of oral, written and implied contract, wrongful
by its Consumer Software segment, which was comprised primarily of termination in violation of public policy and violation of California
Learning Company, Mattel’s board of directors, on March 31, 2000, Labor Code Section 970. Ms. Greenwald claimed that her termination
resolved to dispose of its Consumer Software segment. As a result resulted from complaints she made to management concerning gen-
of this decision, the Consumer Software segment was reported as a eral allegations that Mattel did not account properly for sales and
discontinued operation effective March 31, 2000, and the consolidated certain costs associated with sales and more specific allegations that
financial statements were reclassified to segregate the net invest- Mattel failed to account properly for certain royalty obligations to
ment in, and the liabilities and operating results of the Consumer The Walt Disney Company.
Software segment. In 1996, Mattel’s motion for summary adjudication of Ms.
On October 18, 2000, Mattel disposed of Learning Company Greenwald’s public policy claim was granted, with Mattel’s motion for
to an affiliate of Gores Technology Group in return for a contractual summary judgment of Ms. Greenwald’s remaining claims being granted
right to receive future consideration based on income generated from in 1997. Ms. Greenwald appealed the dismissal of her suit in 1998. In
its business operations and/or the net proceeds derived by the new 2000, the California Court of Appeal filed an opinion that affirmed in
company upon the sale of its assets or other liquidating events, or part and reversed in part the judgment in favor of Mattel. The Court of
20% of its enterprise value at the end of five years. However, there Appeal ruled that disputed factual issues existed which precluded sum-
can be no assurance that Mattel will receive any future consideration mary adjudication of certain claims and that a jury at trial must resolve
with respect to the disposition of Learning Company. Furthermore, such factual issues. As a result, Ms. Greenwald’s claims for termination
upon the disposition of Learning Company, Mattel had no further in violation of public policy, termination in breach of an implied agree-
obligation to fund its operations. ment, and violation of California Labor Code Section 970 were ordered
In December 2000 and January 2001, Mattel entered into world- remanded to the trial court for further proceedings. The Court of
wide, multi-year licensing agreements with Vivendi Universal Publishing Appeal did not rule on whether Ms. Greenwald’s claims had merit; it
and THQ, respectively, for the development and publishing of gaming, merely held that the claims should be presented to a jury. Jurisdiction
educational and productivity software based on Mattel’s brands, which was then restored to the trial court for further proceedings. In
Mattel had previously developed and sold directly through its Mattel December 2000, the lawsuit was settled for an amount that was not
Media division. These partnerships allow Mattel to provide the content material to Mattel’s financial condition or results of operations.
from its library of power brands, while Vivendi Universal Publishing
and THQ provide software development and distribution expertise. This Litigation Related to Learning Company
strategy for extending into the interactive arena will provide opportuni- Following Mattel’s announcement in October 1999 of the expected
ties for future growth with no capital investment. Management results of its Learning Company division for the third quarter of 1999,
believes such a licensing program is likely to result in a lower risk of several of Mattel’s stockholders filed purported class action complaints
loss from operations than the Consumer Software segment. However, naming Mattel and certain of its present and former officers and
a licensing program will result in greater dependence by Mattel on its directors as defendants. The complaints generally allege, among other
licensing partners, and less direct control by Mattel over research and things, that the defendants made false or misleading statements in
development, marketing, and sales decisions related to its consumer the joint proxy statement for the merger of Mattel and Learning
software products. As a result, Mattel’s ability to create innovative new Company and elsewhere, that artificially inflated the price of Mattel’s
consumer software products may be reduced. common stock.
In March 2000, these shareholder complaints were consolidat-
LITIGATION ed into two lead cases: Thurber v. Mattel, Inc. et al. (containing claims
Power Wheels® Recall under § 10(b) of the 1934 Securities Exchange Act (“Act”)) and Dusek
On October 22, 1998, Mattel announced that Fisher-Price, in coopera- v. Mattel, Inc. et al. (containing claims under § 14(a) of the Act). Mattel
tion with the Consumer Product Safety Commission, would conduct and the other defendants filed motions to dismiss both lawsuits for
27. twenty five
Mattel, Inc. and Subsidiaries
failure to state a claim. In January 2001, the Court granted defen- and to continue the community outreach program. Mattel has
dants’ motions to dismiss both Thurber and Dusek, and gave plaintiffs recorded pre-tax charges totaling $19.0 million for environmental
leave to amend. Plaintiffs are expected to file amended consolidated remediation costs related to this property, based on the completion
complaints in March 2001 in both actions. and approval of the remediation plan and feasibility study.
Other purported class action litigation has been brought against
Mattel as successor to Learning Company and the former directors of General
Learning Company on behalf of former stockholders of Broderbund Mattel is also involved in various other litigation and legal matters,
Software, Inc. who acquired shares of Learning Company in exchange including claims related to intellectual property, product liability
for their Broderbund common stock in connection with the Learning and labor, which Mattel is addressing or defending in the ordinary
Company-Broderbund merger on August 31, 1998. The consolidated course of business. Management believes that any liability that
complaint in In re Broderbund generally alleges that Learning Company may potentially result upon resolution of such matters will not
misstated its financial results prior to the time it was acquired by have a material adverse effect on Mattel’s business, financial
Mattel. Mattel and the other defendants have filed a motion to dis- condition or results of operations.
miss the complaint in In re Broderbund, and are awaiting a ruling.
Thurber, Dusek, and In re Broderbund are all currently pending in the COMMITMENTS
United States District Court for the Central District of California. In the normal course of business, Mattel enters into contractual
Several stockholders have filed derivative complaints on behalf arrangements for future purchases of goods and services to ensure
and for the benefit of Mattel, alleging, among other things, that availability and timely delivery, and to obtain and protect Mattel’s right
Mattel’s directors breached their fiduciary duties, wasted corporate to create and market certain products. These arrangements include
assets, and grossly mismanaged Mattel in connection with Mattel’s commitments for future inventory purchases and royalty payments.
acquisition of Learning Company and its approval of severance pack- Certain of these commitments routinely contain provisions for guaran-
ages to certain former executives. All of these derivative actions, one teed or minimum expenditures during the term of the contracts.
of which was filed in the Court of Chancery in Delaware and the As of December 31, 2000, Mattel’s Toy Manufacturing seg-
remainder in Los Angeles Superior Court in California, have been ment had outstanding commitments for 2001 purchases of invento-
stayed pending the outcome of motions to dismiss in the federal ry of approximately $134 million. Licensing and similar agreements
securities actions. with terms extending through the year 2006 contain provisions for
Mattel believes that the purported class actions and derivative future minimum payments aggregating approximately $342 million.
suits are without merit and intends to defend them vigorously.
RISK MANAGEMENT
Environmental Foreign Currency
Fisher-Price Mattel’s results of operations and cash flows may be impacted by
Fisher-Price has executed a consent order with the State of New York exchange rate fluctuations. Mattel seeks to mitigate its exposure to
to implement a groundwater remediation system at one of its former market risk by monitoring its currency exchange exposure for the year
manufacturing plants. Mattel anticipates that the New York State and partially or fully hedging such exposure using foreign currency
Department of Environmental Conservation will issue a Record of forward exchange and option contracts primarily to hedge its pur-
Decision in March 2001. The ultimate liability associated with this chase and sale of inventory, and other intercompany transactions
cleanup presently is estimated to be approximately $1.76 million, denominated in foreign currencies. These contracts generally have
approximately $1.26 million of which has been incurred through maturity dates of up to 18 months. In addition, Mattel manages its
December 31, 2000. exposure through the selection of currencies used for international
borrowings and intercompany invoicing. Mattel’s results of opera-
Beaverton, Oregon tions can also be affected by the translation of foreign revenues and
Mattel previously operated a manufacturing facility on a leased prop- earnings into US dollars. Mattel does not trade in financial instru-
erty in Beaverton, Oregon that was acquired as part of the March ments for speculative purposes.
1997 merger with Tyco. In March 1998, samples of groundwater used Mattel entered into a cross currency interest rate swap to con-
by the facility for process water and drinking water disclosed elevated vert the interest rate and principal amount from Euros to US dollars
levels of certain chemicals, including trichloroethylene. Mattel imme- on its 200 million Euro Notes due 2002.
diately closed the water supply and self-reported the sample results Mattel’s foreign currency forward exchange contracts that
to the Oregon Department of Environmental Quality and the Oregon were used to hedge firm foreign currency commitments as of
Health Division. Mattel also implemented a community outreach pro- December 31, 2000 are shown in the following table. All contracts are
gram to employees, former employees and surrounding landowners. against the US dollar and are maintained by reporting units with a US
In November 1998, Mattel and another potentially responsible dollar functional currency, with the exception of the Indonesian rupi-
party entered into a consent order with the Oregon Department of ah and Thai baht contracts that are maintained by entities with either
Environmental Quality to conduct a remedial investigation/feasibility a rupiah or baht functional currency.
study at the property, to propose an interim remedial action measure,