EL SEGUNDO, Calif.,
Oct. 26, 2017 /PRNewswire/ --
Third Quarter Highlights1
- Worldwide net sales down 13% as reported, and down 14% in
constant currency; worldwide gross sales down 13% as reported, and
down 15% in constant currency.
- Sales performance negatively impacted by Toys "R" Us filing for
bankruptcy, tighter retailer inventory management and challenges
with certain underperforming brands.
- Company announced a significantly expanded initiative to
structurally simplify business and right-size cost structure in
alignment with strategy; Company plans to eliminate at least
$650 million in net costs over the
next two years.
- Suspended quarterly dividend beginning in the fourth quarter of
2017 in order to increase financial flexibility, strengthen balance
sheet and facilitate strategic investments.
- Reported loss per share was $1.75, which was negatively impacted by a
non-cash charge related to a valuation allowance on U.S. deferred
tax assets of $561.9 million, and
adjusted earnings per share was $0.09.
Mattel, Inc. (NASDAQ: MAT) today reported third quarter 2017
financial results.
"Our Q3 performance was clearly disappointing, led by
compression in North America
driven by Toys "R" Us filing for bankruptcy, tighter retailer
inventory management and challenges with certain underperforming
brands," said Margo Georgiadis, CEO
of Mattel. "Despite these challenges, we are making strong progress
against our transformation plan, which we believe will deliver step
change revenue growth and profitability. To accelerate progress
toward these goals, with our new leadership team in place, we are
taking bold steps to simplify our business and right size our cost
structure in alignment with our strategy. This will enable us to
move faster to realize our most attractive opportunities as well as
to unlock significant resources to invest in our transformation. We
are optimistic about the future of Mattel and our ability to
reposition the company to drive enhanced returns for
shareholders."
For the third quarter of 2017, net sales were down 13% as
reported, and down 14% in constant currency, versus the prior
year's third quarter. Gross sales were down 13% as reported, and
down 15% in constant currency. Reported operating income was
$85.7 million, and adjusted operating
income was $159.7 million. Reported
loss per share was $1.75, which was
negatively impacted by a non-cash charge related to a valuation
allowance on U.S. deferred tax assets of $561.9 million, and adjusted earnings per share
was $0.09.
POS Summary2
Year-to-date consumer
takeaway for Barbie® was up double digits; Hot
Wheels® and Fisher-Price® were up mid-single
digits; and Thomas & Friends™ was down high-single digits. For
the quarter, Barbie was up double digits; Hot Wheels and
Fisher-Price were up low-single digits; and Thomas & Friends
was down double digits.
Financial Overview
For the third quarter, net sales in
the North American Region decreased by 22% as reported and in
constant currency, versus the prior year's third quarter; gross
sales in the North American Region also decreased by 22% as
reported and in constant currency, primarily driven by lower sales
as a result of Toys "R" Us filing for bankruptcy and tighter
retailer inventory management. In the International Region, net
sales increased by 1% as reported, and decreased by 1% in constant
currency; gross sales in the International Region were flat as
reported, and decreased by 2% in constant currency. Gross margin
for the quarter decreased 700 basis points, driven mainly by
unfavorable product mix, higher freight and logistics expenses, an
unfavorable impact from Toys "R" Us filing for bankruptcy, and
lower licensing income. Reported other selling and administrative
expenses increased by $31.3 million,
and adjusted other selling and administrative expenses for the
quarter increased $7.0 million,
reflecting higher employee-related costs and costs associated with
the new American Girl® flagship store in New York City. Reported operating income for
the quarter was $85.7 million,
compared to the prior year's third quarter reported operating
income of $317.4 million. Adjusted
operating income for the quarter was $159.7
million, compared to the prior year's third quarter adjusted
operating income of $324.1
million.
For the nine months ended September 30,
2017, net cash flows used for operating activities were
approximately $740 million, an
increase of approximately $409
million versus the same period in the prior year, primarily
driven by a higher net loss, excluding the impact of the valuation
allowance on deferred tax assets, and higher working capital usage.
Cash flows used for investing activities were approximately
$175 million, a decrease of
approximately $30 million versus the
same period in the prior year, primarily driven by an increase in
proceeds from foreign currency forward exchange contracts and
payments related to Fuhu and Sproutling in 2016, partially offset
by higher capital spending. Cash flows provided by financing
activities and other were approximately $227
million, compared to cash flows used for financing
activities and other of approximately $60
million in the same period in the prior year, primarily
driven by higher net short-term borrowings, partially offset by
proceeds from long-term borrowings in 2016.
As of September 30, 2017, the
Company's debt-to-total capital ratio was 66.6%.
Dividend
The Board of Directors determined to suspend
the Company's quarterly dividend beginning in the fourth quarter of
2017 in order to increase financial flexibility, strengthen the
balance sheet and facilitate strategic investments. The suspension
of the quarterly dividend, which was previously $0.15 per share, is expected to result in
additional liquidity of approximately $50
million per quarter.
Sales by Brand
Mattel Girls and Boys Brands
For the third quarter, worldwide gross sales for Mattel Girls &
Boys Brands were $967.0 million, down
9% as reported, and down 10% in constant currency, versus the prior
year's third quarter. Worldwide gross sales for the Barbie brand
were down 6% as reported, and down 7% in constant currency, versus
the prior year's third quarter, primarily driven by a shift in DVD
entertainment strategy. Worldwide gross sales for Other Girls
brands were down 40% as reported, and down 42% in constant
currency, versus the prior year's third quarter, primarily driven
by declines in Monster High® and DC Super Hero Girls™.
Worldwide gross sales for the Wheels category were down 4% as
reported, and down 6% in constant currency, versus the prior year's
third quarter, primarily driven by declines in Tyco™ RC vehicles.
Worldwide gross sales for the Entertainment business were up 1% as
reported, and down 1% in constant currency, versus the prior year's
third quarter, primarily driven by increases in CARS®
sales, offset by declines in Minecraft® and WWE® Wrestling.
Fisher-Price Brands
For the third quarter, worldwide gross sales for Fisher-Price
Brands, which includes the Fisher-Price Core, Fisher-Price Friends
and Power Wheels® brands, were $561.6 million, down 15% as reported, and down
16% in constant currency, versus the prior year's third quarter,
primarily driven by declines in Thomas & Friends and infant
products.
American Girl Brands
For the third quarter, worldwide
gross sales for American Girl Brands, which offers American
Girl-branded products directly to consumers, were $88.0 million, down 30% as reported and in
constant currency, versus the prior year's third quarter, primarily
driven by lower licensing income and initial sales in the prior
year through external distribution channels.
Construction and Arts & Crafts Brands
For the
third quarter, worldwide gross sales for Construction and Arts
& Crafts Brands, which includes the MEGA BLOKS® and
RoseArt® brands, were $84.6
million, down 29% as reported, and down 30% in constant
currency, versus the prior year's third quarter, primarily driven
by declines in MEGA BLOKS licensed and Preschool products.
Conference Call and Live Webcast
At 5:00 p.m. (Eastern Time) today, Mattel will host
a conference call with investors and financial analysts to discuss
its 2017 third quarter financial results. The conference call will
be webcast on Mattel's Investor Relations
website, http://investor.shareholder.com/mattel. To listen to
the live call, log on to the website at least 10 minutes early to
register, download and install any necessary audio software. An
archive of the webcast will be available on the Company's website
for 90 days and may be accessed beginning approximately two hours
after the completion of the live call. A telephonic replay of the
call will be available beginning at 8:00
p.m. Eastern time the evening of the call until Saturday, November 2, 2017, and may be accessed
by dialing +1-404-537-3406. The passcode is 84841057.
Forward-Looking Statements
This press release contains
a number of forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. The use of words
such as "anticipates," "expects," "intends," "plans," "confident
that" and "believes," among others, generally identify
forward-looking statements. These forward-looking statements
are based on currently available operating, financial, economic and
other information, and are subject to a number of significant risks
and uncertainties. A variety of factors, many of which are beyond
our control, could cause actual future results to differ materially
from those projected in the forward-looking statements. Specific
factors that might cause such a difference include, but are not
limited to: (i) Mattel's ability to design, develop, produce,
manufacture, source and ship products on a timely and
cost-effective basis, as well as interest in and purchase of those
products by retail customers and consumers in quantities and at
prices that will be sufficient to profitably recover Mattel's
costs; (ii) downturns in economic conditions affecting Mattel's
markets which can negatively impact retail customers and consumers,
and which can result in lower employment levels, lower consumer
disposable income and spending, including lower spending on
purchases of Mattel's products; (iii) other factors which can lower
discretionary consumer spending, such as higher costs for fuel and
food, drops in the value of homes or other consumer assets, and
high levels of consumer debt; (iv) potential difficulties or delays
Mattel may experience in implementing cost savings and efficiency
enhancing initiatives; (v) other economic and public health
conditions or regulatory changes in the markets in which Mattel and
its customers and suppliers operate, which could create delays or
increase Mattel's costs, such as higher commodity prices, labor
costs or transportation costs, or outbreaks of disease; (vi)
currency fluctuations, including movements in foreign exchange
rates, which can lower Mattel's net revenues and earnings, and
significantly impact Mattel's costs; (vii) the concentration of the
Mattel's customers, potentially increasing the negative impact to
Mattel of difficulties experienced by any of Mattel's customers,
including the bankruptcy of Toys "R" Us, Inc., or changes in their
purchasing or selling patterns; (viii) the future willingness of
licensors of entertainment properties for which Mattel currently
has licenses or would seek to have licenses in the future to
license those products to Mattel; (ix) the inventory policies of
Mattel's retail customers, including retailers' potential decisions
to lower their inventories, even if it results in lost sales, as
well as the concentration of Mattel's revenues in the second half
of the year, which coupled with reliance by retailers on quick
response inventory management techniques increases the risk of
underproduction of popular items, overproduction of less popular
items and failure to achieve compressed shipping schedules; (x) the
increased costs of developing more sophisticated digital and smart
technology products, and the corresponding supply chain and design
challenges associated with such products; (xi) work disruptions,
which may impact Mattel's ability to manufacture or deliver product
in a timely and cost-effective manner; (xii) the bankruptcy of Toys
"R" Us, Inc. or other of Mattel's significant retailers, or the
general lack of success of one of Mattel's significant retailers
which could negatively impact Mattel's revenues or bad debt
exposure; (xiii) the impact of competition on revenues, margins and
other aspects of Mattel's business, including the ability to offer
products which consumers choose to buy instead of competitive
products, the ability to secure, maintain and renew popular
licenses and the ability to attract and retain talented
employees; (xiv) the risk of product recalls or product
liability suits and costs associated with product safety
regulations; (xv) changes in laws or regulations in the United States and/or in other major
markets in which Mattel operates, including, without limitation,
with respect to taxes, tariffs or product safety, which may
increase Mattel's product costs and other costs of doing business,
and reduce Mattel's earnings, (xvi) failure to realize the planned
benefits from any investments or acquisitions made by Mattel,
(xvii) the impact of other market conditions, third party actions
or approvals and competition which could reduce demand for Mattel's
products or delay or increase the cost of implementation of
Mattel's programs or alter Mattel's actions and reduce actual
results; (xviii) changes in financing markets or the inability of
Mattel to obtain financing on attractive terms (xix) the impact of
litigation or arbitration decisions or settlement actions; and (xx)
other risks and uncertainties as may be described in Mattel's
periodic filings with the Securities and Exchange Commission,
including the "Risk Factors" section of Mattel's Annual Report on
Form 10-K for the fiscal year ended December
31, 2016, and Mattel's Quarterly Reports on Form 10-Q for
fiscal year 2017, as well as in Mattel's other public statements.
Mattel does not update forward-looking statements and expressly
disclaims any obligation to do so.
Non-GAAP Financial Measures
To supplement our
financial results presented in accordance with generally accepted
accounting principles in the United
States ("GAAP"), Mattel presents certain non-GAAP financial
measures within the meaning of Regulation G promulgated by the
Securities and Exchange Commission. The non-GAAP financial measures
that Mattel uses in this earnings release include gross sales,
adjusted net sales, adjusted gross profit, adjusted gross margin,
adjusted other selling and administrative expenses, adjusted
operating income (loss), adjusted earnings (loss) per share and
constant currency. Mattel uses these metrics to analyze its
continuing operations and to monitor, assess and identify
meaningful trends in its operating and financial performance, and
each is discussed in detail below. Mattel believes that the
disclosure of non-GAAP financial measures provides useful
supplemental information to investors to be able to better evaluate
ongoing business performance and certain components of the
Company's results. These measures are not, and should not be viewed
as, substitutes for GAAP financial measures. Reconciliations of the
non-GAAP financial measures to the most directly comparable GAAP
financial measures are attached to this earnings release as
exhibits and to our earnings slide presentation as an appendix.
This earnings release and our earnings slide presentation are
available on Mattel's Investor Relations
website, http://investor.shareholder.com/mattel, under the
subheading "Financial Information – Earnings Releases."
Gross sales
Gross sales represent sales to customers,
excluding the impact of sales adjustments. Net sales, as reported,
include the impact of sales adjustments, such as trade discounts
and other allowances. Mattel presents changes in gross sales as a
metric for comparing its aggregate, brand and geographic results to
highlight significant trends in Mattel's business. Changes in gross
sales are discussed because, while Mattel records the details of
such sales adjustments in its financial accounting systems at the
time of sale, such sales adjustments are generally not associated
with brands and individual products, making net sales less
meaningful. Since sales adjustments are determined by customer
rather than at the brand level, Mattel believes that the disclosure
of gross sales by brand is useful supplemental information for
investors to be able to assess the performance of its underlying
brands (e.g., Barbie) and also enhances their ability to compare
sales trends over time.
Adjusted net sales
Adjusted net sales represents
Mattel's reported net sales, adjusted to exclude the net sales
reversal related to Toys "R" Us filing for bankruptcy. Adjusted net
sales is presented to provide additional perspective on underlying
trends in Mattel's core net sales, which Mattel believes is useful
supplemental information for investors to be able to gauge and
compare Mattel's current business performance from one period to
another.
Adjusted gross profit and adjusted gross
margin
Adjusted gross profit and adjusted gross margin
represent reported gross profit and reported gross margin,
respectively, adjusted to exclude the net sales reversal related to
Toys "R" Us filing for bankruptcy. Adjusted gross margin represents
Mattel's adjusted gross margin, as a percentage of adjusted net
sales. Adjusted gross profit and adjusted gross margin are
presented to provide additional perspective on underlying trends in
Mattel's core gross profit and gross margin, which Mattel believes
is useful supplemental information for investors to be able to
gauge and compare Mattel's current business performance from one
period to another.
Adjusted other selling and administrative
expenses
Adjusted other selling and administrative expenses
represents Mattel's reported other selling and administrative
expenses, adjusted to exclude the impact of expenses associated
with the acquisition and integration of an acquired business,
restructuring and restructuring-related expenses, non-recurring
executive compensation and asset impairments, which are not part of
Mattel's core business. Adjusted other selling and administrative
expenses is presented to provide additional perspective on
underlying trends in Mattel's core other selling and administrative
expenses, which Mattel believes is useful supplemental information
for investors to be able to gauge and compare Mattel's current
business performance from one period to another.
Adjusted operating income (loss)
Adjusted operating
income (loss) represents Mattel's reported operating loss, adjusted
to exclude the impact of expenses associated with the acquisition
and integration of an acquired business, restructuring and
restructuring-related expenses, non-recurring executive
compensation, asset impairments and the net sales reversal related
to Toys "R" Us filing for bankruptcy, which are not part of
Mattel's core business. Adjusted operating income (loss) is
presented to provide additional perspective on underlying trends in
Mattel's core operating results, which Mattel believes is useful
supplemental information for investors to be able to gauge and
compare Mattel's current business performance from one period to
another.
Adjusted earnings (loss) per share
Adjusted earnings
(loss) per share represents Mattel's reported diluted earnings
(loss) per common share, adjusted to exclude the impact of expenses
associated with the acquisition and integration of an acquired
business, restructuring and restructuring-related expenses, sale of
non-core assets, non-recurring executive compensation, asset
impairments, the net sales reversal related to Toys "R" Us filing
for bankruptcy and currency devaluations, which are not part of
Mattel's core business. The aggregate tax effect of the adjustments
is calculated by tax effecting the adjustments by the current
effective tax rate, and dividing by the reported weighted average
number of common and potential common shares. Adjusted earnings
(loss) per share also excludes the impact of the valuation
allowance established for the portion of deferred tax assets Mattel
believes will likely not be realized. Adjusted earnings
(loss) per share is presented to provide additional perspective on
underlying trends in Mattel's core business. Mattel believes it is
useful supplemental information for investors to gauge and compare
Mattel's current earnings results from one period to another.
Adjusted earnings (loss) per share is a performance measure and
should not be used as a measure of liquidity.
Constant currency
Percentage changes in results
expressed in constant currency are presented excluding the impact
from changes in currency exchange rates. To present this
information, Mattel calculates constant currency information by
translating current period and prior period results for entities
reporting in currencies other than the US dollar using consistent
exchange rates. The consistent exchange rates are determined by
Mattel at the beginning of each year and are applied consistently
during the year. They are generally different from the actual
exchange rates in effect during the current or prior period due to
volatility in actual foreign exchange rates. Mattel considers
whether any changes to the constant currency rates are appropriate
at the beginning of each year. The exchange rates used for
these constant currency calculations are generally based on prior
year actual exchange rates. The difference between the current
period and prior period results using the consistent exchange rates
reflects the changes in the underlying performance results,
excluding the impact from changes in currency exchange rates.
Mattel analyzes constant currency results to provide additional
perspective on changes in underlying trends in Mattel's operating
performance. Mattel believes that the disclosure of the percentage
change in constant currency is useful supplemental information for
investors to be able to gauge Mattel's current business performance
and the longer term strength of its overall business since foreign
currency changes could potentially mask underlying sales trends.
The disclosure of the percentage change in constant currency
enhances investor's ability to compare financial results from one
period to another.
About Mattel
Mattel is a global learning, development
and play company that inspires the next generation of kids to shape
a brighter tomorrow. Through our portfolio of iconic consumer
brands, including American Girl®, Barbie®, Fisher-Price®, Hot
Wheels® and Thomas & Friends™, we create systems of play,
content and experiences that help kids unlock their full potential.
Mattel also creates inspiring and innovative products in
collaboration with leading entertainment and technology companies
as well as other partners. With a global workforce of approximately
32,000 people, Mattel operates in 40 countries and territories and
sells products in more than 150 nations. Visit us online at
www.mattel.com.
Contacts:
|
|
News
Media
Alex Clark
310-252-6397
alex.clark@mattel.com
|
Securities
Analysts
Whitney
Steininger
310-252-2703
whitney.steininger@mattel.com
|
MAT-FIN MAT-CORP
1 Please refer to Non-GAAP Financial Measures for a
glossary of non-GAAP financial measures used herein, including
gross sales, adjusted net sales, adjusted gross profit, adjusted
gross margin, adjusted other selling and administrative expenses,
adjusted operating income (loss), adjusted earnings (loss) per
share and constant currency.
2 Mattel internal analysis, at wholesale; excludes
American Girl.
MATTEL, INC. AND
SUBSIDIARIES
|
EXHIBIT
I
|
|
CONSOLIDATED
STATEMENTS OF OPERATIONS (Unaudited)
|
|
|
|
|
For the Three
Months Ended September 30,
|
|
|
For the Nine
Months Ended September 30,
|
|
|
|
|
|
|
|
|
|
|
Yr /
Yr
%
Change
as
Reported
|
|
Yr /
Yr
%
Change
in
Constant
Currency
|
|
|
|
|
|
|
|
|
|
|
Yr /
Yr
%
Change
as
Reported
|
|
Yr /
Yr
%
Change
in
Constant
Currency
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
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|
(In millions,
except per share and percentage information)
|
|
2017
|
|
2016
|
|
|
|
|
2017
|
|
2016
|
|
|
|
$
Amt
|
|
% Net
Sales
|
|
$
Amt
|
|
% Net
Sales
|
|
|
|
|
$
Amt
|
|
% Net
Sales
|
|
$
Amt
|
|
% Net
Sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Sales
|
$
|
1,561.0
|
|
|
$
|
1,795.6
|
|
|
|
-13%
|
|
-14%
|
|
$
|
3,271.1
|
|
|
$
|
3,622.3
|
|
|
|
-10%
|
|
-10%
|
Cost of
sales
|
|
913.8
|
|
58.5%
|
|
924.8
|
|
51.5%
|
|
-1%
|
|
|
|
|
1,945.4
|
|
59.5%
|
|
1,929.3
|
|
53.3%
|
|
1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
Profit
|
|
647.2
|
|
41.5%
|
|
870.8
|
|
48.5%
|
|
-26%
|
|
-26%
|
|
|
1,325.7
|
|
40.5%
|
|
1,693.0
|
|
46.7%
|
|
-22%
|
|
-21%
|
Advertising and promotion expenses
|
|
179.7
|
|
11.5%
|
|
202.9
|
|
11.3%
|
|
-11%
|
|
|
|
|
348.8
|
|
10.7%
|
|
384.6
|
|
10.6%
|
|
-9%
|
|
|
Other
selling and administrative expenses
|
|
381.8
|
|
24.5%
|
|
350.5
|
|
19.5%
|
|
9%
|
|
|
|
|
1,066.9
|
|
32.6%
|
|
1,051.8
|
|
29.0%
|
|
1%
|
|
|
Operating Income
(Loss)
|
|
85.7
|
|
5.5%
|
|
317.4
|
|
17.7%
|
|
-73%
|
|
-74%
|
|
|
(90.0)
|
|
-2.8%
|
|
256.6
|
|
7.1%
|
|
-135%
|
|
-132%
|
Interest
expense
|
|
24.7
|
|
1.6%
|
|
25.0
|
|
1.4%
|
|
-1%
|
|
|
|
|
68.6
|
|
2.1%
|
|
70.1
|
|
1.9%
|
|
-2%
|
|
|
Interest
(income)
|
|
(1.5)
|
|
-0.1%
|
|
(2.5)
|
|
-0.1%
|
|
-36%
|
|
|
|
|
(6.3)
|
|
-0.2%
|
|
(7.6)
|
|
-0.2%
|
|
-16%
|
|
|
Other
non-operating expense, net
|
|
1.3
|
|
|
|
0.9
|
|
|
|
|
|
|
|
|
5.9
|
|
|
|
23.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (Loss)
Before Income Taxes
|
|
61.2
|
|
3.9%
|
|
294.0
|
|
16.4%
|
|
-79%
|
|
-80%
|
|
|
(158.2)
|
|
-4.8%
|
|
170.8
|
|
4.7%
|
|
-193%
|
|
-186%
|
Provision for income taxes
|
|
664.5
|
|
|
|
57.7
|
|
|
|
|
|
|
|
|
614.4
|
|
|
|
26.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (Loss)
Income
|
$
|
(603.3)
|
|
-38.6%
|
$
|
236.3
|
|
13.2%
|
|
-355%
|
|
|
|
$
|
(772.6)
|
|
-23.6%
|
$
|
144.2
|
|
4.0%
|
|
-636%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (Loss) Income
Per Common Share - Basic
|
$
|
(1.75)
|
|
|
$
|
0.69
|
|
|
|
|
|
|
|
$
|
(2.25)
|
|
|
$
|
0.42
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average number of common shares
|
|
343.9
|
|
|
|
342.0
|
|
|
|
|
|
|
|
|
343.3
|
|
|
|
341.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (Loss) Income
Per Common Share - Diluted
|
$
|
(1.75)
|
|
|
$
|
0.68
|
|
|
|
|
|
|
|
$
|
(2.25)
|
|
|
$
|
0.42
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average number of common and potential common shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
343.9
|
|
|
|
344.2
|
|
|
|
|
|
|
|
|
343.3
|
|
|
|
343.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MATTEL, INC. AND
SUBSIDIARIES
|
EXHIBIT
II
|
|
|
|
|
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
|
|
|
|
|
|
|
|
|
|
September
30,
|
|
December
31,
|
|
|
2017
|
|
2016
|
|
2016
|
(In
millions)
|
|
(Unaudited)
|
|
|
Assets
|
|
|
|
|
|
|
Cash and
equivalents
|
$
|
181.3
|
$
|
297.1
|
$
|
869.5
|
Accounts
receivable, net
|
|
1,506.1
|
|
1,528.8
|
|
1,115.2
|
Inventories
|
|
990.0
|
|
910.5
|
|
613.8
|
Prepaid
expenses and other current assets
|
|
352.8
|
|
342.4
|
|
341.5
|
Total current
assets
|
|
3,030.2
|
|
3,078.8
|
|
2,940.0
|
|
|
|
|
|
|
|
Property, plant, and equipment, net
|
|
821.2
|
|
747.5
|
|
774.0
|
Other
noncurrent assets
|
|
2,348.3
|
|
2,822.6
|
|
2,779.8
|
Total
Assets
|
$
|
6,199.7
|
$
|
6,648.9
|
$
|
6,493.8
|
|
|
|
|
|
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
|
|
Short-term borrowings
|
$
|
732.6
|
$
|
-
|
$
|
192.2
|
Current
portion of long-term debt
|
|
250.0
|
|
300.0
|
|
-
|
Accounts
payable and accrued liabilities
|
|
1,282.3
|
|
1,323.9
|
|
1,293.7
|
Income
taxes payable
|
|
32.4
|
|
21.7
|
|
19.7
|
Total current
liabilities
|
|
2,297.3
|
|
1,645.6
|
|
1,505.6
|
|
|
|
|
|
|
|
Long-term debt
|
|
1,886.4
|
|
2,133.5
|
|
2,134.3
|
Other
noncurrent liabilities
|
|
576.3
|
|
454.4
|
|
446.1
|
Stockholders' equity
|
|
1,439.7
|
|
2,415.4
|
|
2,407.8
|
Total Liabilities
and Stockholders' Equity
|
$
|
6,199.7
|
$
|
6,648.9
|
$
|
6,493.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SUPPLEMENTAL
BALANCE SHEET AND CASH FLOW DATA (Unaudited)
|
|
|
|
|
|
|
|
|
September
30,
|
|
|
(In millions,
except days and percentage information)
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
|
Key Balance Sheet
Data:
|
|
|
|
|
|
|
Accounts receivable,
net days of sales outstanding (DSO)
|
|
87
|
|
77
|
|
|
Total debt
outstanding
|
|
$ 2,869.0
|
|
$ 2,433.5
|
|
|
Total debt-to-total
capital ratio
|
|
66.6%
|
|
50.2%
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
September 30,
|
|
|
(In
millions)
|
|
2017
(a)
|
|
2016
|
|
|
|
|
|
|
|
|
|
Condensed Cash
Flow Data:
|
|
|
|
|
|
|
Cash flows (used for)
operating activities
|
|
$
(740)
|
|
$
(331)
|
|
|
|
|
|
|
|
|
|
Cash flows (used for)
investing activities
|
|
(175)
|
|
(205)
|
|
|
|
|
|
|
|
|
|
Cash flows provided
by (used for) financing activities and other
|
|
227
|
|
(60)
|
|
|
|
|
|
|
|
|
|
Decrease in cash and
equivalents
|
|
$
(688)
|
|
$
(596)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Amounts shown are
preliminary estimates. Actual amounts will be reported in Mattel's
Quarterly Report on Form 10-Q for the quarter ended September 30, 2017.
|
MATTEL, INC. AND
SUBSIDIARIES
|
|
EXHIBIT
III
|
|
|
|
WORLDWIDE GROSS
SALES INFORMATION (Unaudited)
|
|
|
RECONCILIATION OF
GAAP AND NON-GAAP FINANCIAL MEASURES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three
Months Ended September 30,
|
|
|
For the Nine
Months Ended September 30,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions,
except percentage information)
|
|
2017
|
|
2016
|
|
% Change
as Reported
|
|
% Change in
Constant
Currency
|
|
|
2017
|
|
2016
|
|
% Change
as Reported
|
|
% Change in
Constant
Currency
|
|
|
Reconciliation of
Non-GAAP to GAAP Financial Measure:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Sales
|
|
$ 1,561.0
|
|
$ 1,795.6
|
|
-13
|
%
|
-14
|
%
|
|
$ 3,271.1
|
|
$ 3,622.3
|
|
-10
|
%
|
-10
|
%
|
|
Sales
Adjustments1
|
|
149.2
|
|
179.8
|
|
|
|
|
|
|
322.2
|
|
367.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
Sales
|
|
$ 1,710.2
|
|
$ 1,975.4
|
|
-13
|
%
|
-15
|
%
|
|
$ 3,593.3
|
|
$ 3,990.2
|
|
-10
|
%
|
-10
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Worldwide Gross
Sales by Brand:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mattel Girls &
Boys Brands
|
|
$
967.0
|
|
$ 1,061.1
|
|
-9
|
%
|
-10
|
%
|
|
$ 2,018.0
|
|
$ 2,142.7
|
|
-6
|
%
|
-6
|
%
|
|
Fisher-Price
Brands
|
|
561.6
|
|
661.5
|
|
-15
|
|
-16
|
|
|
1,143.5
|
|
1,280.4
|
|
-11
|
|
-11
|
|
|
American Girl
Brands
|
|
88.0
|
|
125.5
|
|
-30
|
|
-30
|
|
|
234.2
|
|
286.9
|
|
-18
|
|
-18
|
|
|
Construction and Arts
& Crafts Brands
|
|
84.6
|
|
118.6
|
|
-29
|
|
-30
|
|
|
176.1
|
|
252.8
|
|
-30
|
|
-31
|
|
|
Other
|
|
9.0
|
|
8.7
|
|
|
|
|
|
|
21.5
|
|
27.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
Sales
|
|
$ 1,710.2
|
|
$ 1,975.4
|
|
-13
|
%
|
-15
|
%
|
|
$ 3,593.3
|
|
$ 3,990.2
|
|
-10
|
%
|
-10
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Worldwide Gross
Sales - Mattel Girls & Boys Brands:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Barbie
|
|
$
329.6
|
|
$
349.7
|
|
-6
|
%
|
-7
|
%
|
|
$
605.2
|
|
$
651.3
|
|
-7
|
%
|
-7
|
%
|
|
Other
Girls
|
|
96.3
|
|
161.6
|
|
-40
|
|
-42
|
|
|
194.7
|
|
304.5
|
|
-36
|
|
-37
|
|
|
Wheels
|
|
270.3
|
|
281.9
|
|
-4
|
|
-6
|
|
|
563.3
|
|
579.0
|
|
-3
|
|
-3
|
|
|
Entertainment
|
|
270.8
|
|
267.9
|
|
1
|
|
-1
|
|
|
654.8
|
|
607.9
|
|
8
|
|
7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
Sales
|
|
$
967.0
|
|
$ 1,061.1
|
|
-9
|
%
|
-10
|
%
|
|
$ 2,018.0
|
|
$ 2,142.7
|
|
-6
|
%
|
-6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Sales
adjustments are not allocated to individual products. As
such, net sales are only presented on a consolidated basis and not
on a brand level.
|
|
|
|
MATTEL, INC. AND
SUBSIDIARIES
|
EXHIBIT
IV
|
|
|
|
|
|
GROSS SALES BY
REGION (Unaudited)
|
|
|
RECONCILIATION OF
GAAP AND NON-GAAP FINANCIAL MEASURES
|
|
|
|
|
|
|
|
|
|
For the Three
Months Ended September 30,
|
|
|
For the Nine
Months Ended September 30,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions,
except percentage information)
|
2017
|
|
2016
|
|
% Change
as Reported
|
|
% Change in
Constant
Currency
|
|
|
2017
|
|
2016
|
|
% Change
as Reported
|
|
% Change in
Constant
Currency
|
|
|
Total
International Region
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Sales
|
|
$ 675.2
|
|
$ 665.9
|
|
1
|
%
|
-1
|
%
|
|
$ 1,415.4
|
|
$ 1,381.0
|
|
2
|
%
|
2
|
%
|
|
Sales
Adjustments
|
|
101.8
|
|
108.4
|
|
|
|
|
|
|
221.6
|
|
233.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
Sales
|
|
$ 777.0
|
|
$ 774.3
|
|
0
|
%
|
-2
|
%
|
|
$ 1,637.0
|
|
$ 1,614.2
|
|
1
|
%
|
1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International
Region Gross Sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Europe
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Sales
|
|
$ 355.0
|
|
$ 354.6
|
|
0
|
%
|
-3
|
%
|
|
$
717.4
|
|
$
730.9
|
|
-2
|
%
|
-2
|
%
|
|
Sales
Adjustments
|
|
59.4
|
|
64.2
|
|
|
|
|
|
|
125.7
|
|
136.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
Sales
|
|
$ 414.4
|
|
$ 418.8
|
|
-1
|
%
|
-5
|
%
|
|
$
843.1
|
|
$
867.0
|
|
-3
|
%
|
-3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Latin
America
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Sales
|
|
$ 193.9
|
|
$ 186.3
|
|
4
|
%
|
1
|
%
|
|
$
371.5
|
|
$
353.4
|
|
5
|
%
|
3
|
%
|
|
Sales
Adjustments
|
|
22.8
|
|
25.5
|
|
|
|
|
|
|
49.3
|
|
49.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
Sales
|
|
$ 216.7
|
|
$ 211.8
|
|
2
|
%
|
-1
|
%
|
|
$
420.8
|
|
$
403.3
|
|
4
|
%
|
2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asia
Pacific
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Sales
|
|
$ 126.3
|
|
$ 125.0
|
|
1
|
%
|
1
|
%
|
|
$
326.5
|
|
$
296.7
|
|
10
|
%
|
11
|
%
|
|
Sales
Adjustments
|
|
19.6
|
|
18.7
|
|
|
|
|
|
|
46.6
|
|
47.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
Sales
|
|
$ 145.9
|
|
$ 143.7
|
|
2
|
%
|
1
|
%
|
|
$
373.1
|
|
$
343.9
|
|
8
|
%
|
9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International
Region Gross Sales by Brand:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mattel Girls &
Boys Brands
|
|
$ 507.4
|
|
$ 484.0
|
|
5
|
%
|
2
|
%
|
|
$ 1,071.7
|
|
1,009.3
|
|
6
|
%
|
5
|
%
|
|
Fisher-Price
Brands
|
|
239.7
|
|
253.5
|
|
-5
|
|
-8
|
|
|
499.4
|
|
518.8
|
|
-4
|
|
-3
|
|
|
Construction and Arts
& Crafts Brands
|
29.9
|
|
35.7
|
|
-16
|
|
-19
|
|
|
65.9
|
|
82.7
|
|
-20
|
|
-21
|
|
|
Other
|
|
-
|
|
1.1
|
|
|
|
|
|
|
-
|
|
3.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
Sales
|
|
$ 777.0
|
|
$ 774.3
|
|
0
|
%
|
-2
|
%
|
|
$ 1,637.0
|
|
$ 1,614.2
|
|
1
|
%
|
1
|
%
|
MATTEL, INC. AND
SUBSIDIARIES
|
EXHIBIT
V
|
|
|
|
|
|
GROSS SALES
INFORMATION (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three
Months Ended September 30,
|
|
For the Nine
Months Ended September 30,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions,
except percentage information)
|
|
2017
|
|
2016
|
|
% Change
as Reported
|
|
% Change in
Constant
Currency
|
|
2017
|
|
2016
|
|
% Change
as Reported
|
|
% Change in
Constant
Currency
|
|
|
North American
Region Gross Sales1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Sales
|
|
$
885.8
|
|
$
1,129.7
|
|
-22
|
%
|
-22
|
%
|
$
1,855.7
|
|
$
2,241.3
|
|
-17
|
%
|
-17
|
%
|
|
Sales
Adjustments2
|
|
47.4
|
|
71.4
|
|
|
|
|
|
100.6
|
|
134.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
Sales
|
|
$
933.2
|
|
$
1,201.1
|
|
-22
|
%
|
-22
|
%
|
$
1,956.3
|
|
$
2,376.0
|
|
-18
|
%
|
-18
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North American
Region Gross Sales by Brand:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mattel Girls &
Boys Brands
|
|
$
459.6
|
|
$
577.1
|
|
-20
|
%
|
-20
|
%
|
$
946.3
|
|
$
1,133.4
|
|
-17
|
%
|
-17
|
%
|
|
Fisher-Price
Brands
|
|
321.9
|
|
408.0
|
|
-21
|
|
-21
|
|
644.1
|
|
761.5
|
|
-15
|
|
-15
|
|
|
American Girl
Brands
|
|
88.0
|
|
124.5
|
|
-29
|
|
-29
|
|
234.2
|
|
285.9
|
|
-18
|
|
-18
|
|
|
Construction and Arts
& Crafts Brands
|
|
54.7
|
|
82.9
|
|
-34
|
|
-34
|
|
110.2
|
|
170.1
|
|
-35
|
|
-36
|
|
|
Other
|
|
9.0
|
|
8.6
|
|
|
|
|
|
21.5
|
|
25.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
Sales
|
|
$
933.2
|
|
$
1,201.1
|
|
-22
|
%
|
-22
|
%
|
$
1,956.3
|
|
$
2,376.0
|
|
-18
|
%
|
-18
|
%
|
1 Consists
of U.S., Canada, and American Girl.
|
2 Sales
adjustments are not allocated to individual products. As
such, net sales are only presented on a consolidated basis and not
on a brand level.
|
MATTEL, INC. AND
SUBSIDIARIES
|
|
|
|
|
|
|
|
EXHIBIT
VI
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SUPPLEMENTAL
FINANCIAL INFORMATION (Unaudited)
|
|
|
|
|
|
|
|
RECONCILIATION OF
GAAP AND NON-GAAP FINANCIAL MEASURES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three
Months Ended September 30,
|
|
|
For the Nine
Months Ended September 30,
|
(In millions,
except per share and percentage information)
|
|
2017
|
|
2016
|
|
|
2017
|
|
2016
|
Net
Sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Sales, As
Reported
|
|
|
|
$
|
1,561.0
|
$
|
1,795.6
|
|
$
|
3,271.1
|
$
|
3,622.3
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
Toys "R" Us Net Sales
Reversal1
|
|
|
|
|
|
43.0
|
|
-
|
|
|
43.0
|
|
-
|
Net Sales, As
Adjusted
|
|
|
|
$
|
1,604.0
|
$
|
1,795.6
|
|
$
|
3,314.1
|
$
|
3,622.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
Profit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Profit, As
Reported
|
|
|
|
|
$
|
647.2
|
$
|
870.8
|
|
$
|
1,325.7
|
$
|
1,693.0
|
Gross
Margin
|
|
|
|
|
41.5%
|
|
48.5%
|
|
|
40.5%
|
|
46.7%
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Toys "R" Us Net Sales
Reversal1
|
|
|
43.0
|
|
-
|
|
|
43.0
|
|
-
|
Gross Profit, As
Adjusted
|
|
|
|
|
$
|
690.2
|
$
|
870.8
|
|
$
|
1,368.7
|
$
|
1,693.0
|
Adjusted Gross
Margin
|
|
|
|
|
43.0%
|
|
48.5%
|
|
|
41.3%
|
|
46.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Selling and
Administrative Expenses
|
|
|
|
|
|
|
|
|
|
Other Selling and
Administrative Expenses, As Reported
|
$
|
381.8
|
$
|
350.5
|
|
$
|
1,066.9
|
$
|
1,051.8
|
% of Net
Sales
|
|
|
|
|
24.5%
|
|
19.5%
|
|
|
32.6%
|
|
29.0%
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-recurring
Executive Compensation
|
|
|
(3.5)
|
|
-
|
|
|
(8.3)
|
|
-
|
Integration &
Acquisition Costs2
|
|
|
-
|
|
(0.3)
|
|
|
-
|
|
(1.4)
|
Severance and
Restructuring Expenses
|
|
|
(12.6)
|
|
(6.4)
|
|
|
(21.5)
|
|
(33.6)
|
Asset
Impairments
|
|
|
|
(14.9)
|
|
-
|
|
|
(14.9)
|
|
-
|
Other Selling and
Administrative Expenses, As Adjusted
|
$
|
350.8
|
$
|
343.8
|
|
$
|
1,022.2
|
$
|
1,016.8
|
% of Net
Sales
|
|
|
|
|
21.9%
|
|
19.1%
|
|
|
30.8%
|
|
28.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income
(Loss)
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income
(Loss), As Reported
|
|
$
|
85.7
|
$
|
317.4
|
|
$
|
(90.0)
|
$
|
256.6
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
Toys "R" Us Net Sales
Reversal1
|
|
|
43.0
|
|
-
|
|
|
43.0
|
|
-
|
Non-recurring
Executive Compensation
|
|
|
3.5
|
|
-
|
|
|
8.3
|
|
-
|
Integration &
Acquisition Costs2
|
|
|
-
|
|
0.3
|
|
|
-
|
|
1.4
|
Severance and
Restructuring Expenses
|
|
|
12.6
|
|
6.4
|
|
|
21.5
|
|
33.6
|
Asset
Impairments
|
|
|
|
14.9
|
|
-
|
|
|
14.9
|
|
-
|
Operating Income
(Loss), As Adjusted
|
|
$
|
159.7
|
$
|
324.1
|
|
$
|
(2.3)
|
$
|
291.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (Loss) Income Per
Common Share, As Reported
|
$
|
(1.75)
|
$
|
0.68
|
|
$
|
(2.25)
|
$
|
0.42
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
Toys "R" Us Net Sales
Reversal1
|
|
|
0.13
|
|
-
|
|
|
0.13
|
|
-
|
Non-recurring
Executive Compensation
|
|
|
0.01
|
|
-
|
|
|
0.03
|
|
-
|
Severance and
Restructuring Expenses
|
|
|
0.04
|
|
0.02
|
|
|
0.06
|
|
0.10
|
Sale of
Assets
|
|
|
|
|
-
|
|
-
|
|
|
-
|
|
(0.01)
|
Venezuela Currency
Devaluation Loss
|
|
|
-
|
|
-
|
|
|
-
|
|
0.08
|
Asset
Impairments
|
|
|
|
0.04
|
|
-
|
|
|
0.04
|
|
-
|
Tax Effect of
Adjustments3
|
|
|
|
(0.01)
|
|
-
|
|
|
(0.01)
|
|
(0.04)
|
Valuation Allowance
on Deferred Tax Assets
|
|
1.63
|
|
-
|
|
|
1.63
|
|
-
|
Net Income (Loss) Per
Common Share, As Adjusted
|
$
|
0.09
|
$
|
0.70
|
|
$
|
(0.37)
|
$
|
0.55
|
|
1 As a
result of Toys "R" Us filing for bankruptcy, Mattel reversed Net
Sales for the estimated uncollectible portion of its outstanding
receivables. As such, Gross Profit, As Reported includes the
Cost of Sales for the inventory sold to Toys "R" Us but excludes
the corresponding Net Sales.
|
2 Includes
Integration & Acquisition Costs for Fuhu and Sproutling in
2016.
|
3 The
aggregate tax effect of the adjustments is calculated by tax
effecting the adjustments by the current effective tax rate, and
dividing by the reported weighted average number of common
and potential common shares. For the three and nine months ended
September 30, 2017, U.S. adjustments were not tax effected
because of the valuation allowance on U.S. deferred tax
assets.
|
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SOURCE Mattel, Inc.