EL SEGUNDO, Calif.,
Feb. 1, 2018 /PRNewswire/ --
- Strongest brand growth in Q4 from Barbie® (up 9% in
Q4 as reported and up 6% in constant currency), and the launch of
Disney's Cars 3.
- Barbie delivered third year in a row of mid- to high-single
digit POS growth globally.
- Full year net sales down 11% as
reported and in constant currency. In line with revised guidance provided in
December 2017, full year gross sales
down 9% as reported and down 10% in constant currency.
- Lower sales in the North American Region (full year
net sales and gross sales down 17% as reported and in constant
currency), partially offset by the International Region sales performance (full year net sales flat as reported and
down 1% in constant currency; gross sales up 2% as reported and
flat in constant currency).
- Company progressing well against transformation plan, targeting to achieve a greater proportion of
$650 million net cost elimination
initiative in 2018, and announcing partnerships to accelerate key
adjacencies to unlock IP value in gaming and content.
Mattel, Inc. (NASDAQ: MAT) today reported full year and fourth
quarter 2017 financial results.
"We have taken aggressive action to enter 2018 with a clean
slate so that we can reset our economic model and rapidly improve
profitability," said Margo
Georgiadis, CEO of Mattel. "We are optimistic about
stabilizing revenue in 2018 anchored by our key power brands,
entertainment partnerships and exciting new launches. We continue
to gain momentum toward the medium-term goals we shared at our June
Investor Day."
For the year, net sales were down 11% as reported and in
constant currency, versus the prior year. Gross sales were down 9%
as reported, and down 10% in constant currency. Reported operating
loss was $342.8 million, and adjusted
operating loss was $167.1 million.
Reported loss per share was $3.07,
which was negatively impacted by a net non-cash charge of
$457 million related to a valuation
allowance on U.S. deferred tax assets and U.S. tax reform, and
adjusted loss per share was $1.08.
For the fourth quarter of 2017, net sales were down 12% as
reported, and down 14% in constant currency, versus the prior
year's fourth quarter. Gross sales were down 8% as reported, and
down 10% in constant currency. Reported operating loss was
$252.8 million, and adjusted
operating loss was $164.8 million.
Reported loss per share was $0.82 and
adjusted loss per share was $0.72.
POS Summary2
For the year, consumer
takeaway for Barbie was up high-single digits; Hot
Wheels® was up mid-single digits;
Fisher-Price® was down low-single digits; and Thomas
& Friends® was down double digits. For the quarter,
Barbie was up high-single digits; Hot Wheels was up mid-single
digits; Fisher-Price was down high single digits; and Thomas &
Friends was down double digits.
Financial Overview
For the year, net sales in the
North American Region decreased by 17% as reported and in constant
currency, versus the prior year; gross sales in the North American
Region also decreased by 17% as reported and in constant currency,
primarily driven by lower sales as a result of tighter retailer
inventory management, certain underperforming brands, and the Toys
"R" Us bankruptcy filing. In the International Region, net sales
were flat as reported, and decreased by 1% in constant currency;
gross sales in the International Region increased by 2% as
reported, and were flat in constant currency. The decline in
reported and adjusted gross margin for the year was driven mainly
by inventory management efforts, unfavorable product mix, and
higher freight and logistics expenses. Reported other selling and
administrative expenses increased by $121.1
million, primarily driven by asset impairments and severance
and restructuring charges. Adjusted other selling and
administrative expenses for the year increased $50.6 million, reflecting higher employee-related costs. Reported
operating loss for the year was $342.8
million, compared to the prior year's reported operating
income of $519.2 million. Adjusted
operating loss for the year was $167.1
million, compared to the prior year's adjusted operating
income of $560.8 million.
For the fourth quarter, net sales in the North American Region
decreased by 17% as reported and in constant currency, versus the
prior year's fourth quarter; gross sales in the North American
Region decreased by 16% as reported and in constant currency,
primarily driven by tighter retailer inventory management, certain
underperforming brands, and Toys "R" Us bankruptcy filing. In the
International Region, net sales decreased by 4% as reported, and
decreased by 9% in constant currency; gross sales in the
International Region increased 4% as reported, and decreased by 1%
in constant currency. The decline in reported and adjusted gross
margin for the quarter was driven mainly by inventory management
efforts, unfavorable product mix, and higher freight and logistics
expenses. Reported other selling and administrative expenses
increased by $105.9 million,
primarily driven by severance and restructuring charges, asset
impairments and adjusted other selling and administrative expenses
for the quarter increased $45.1
million, driven primarily by an
unfavorable year over year comparison due to a prior year reversal
of incentive compensation in the fourth quarter of
2016. Reported operating loss
for the quarter was $252.8 million,
compared to the prior year's fourth quarter reported operating
income of $262.6 million. Adjusted
operating loss for the quarter was $164.8
million, compared to the prior year's fourth quarter
adjusted operating income of $269.2
million.
For the year, net cash flows used for operating activities were
approximately $28 million, compared
to net cash flows in the prior year from operating activities of
approximately $595 million, primarily
driven by the net loss for the year, excluding the impact of the
valuation allowance on deferred tax assets, and other non-cash
charges. Cash flows used for investing activities were
approximately $236 million in 2017, a
decrease of approximately $76 million
versus the prior year, primarily driven by higher proceeds from
foreign currency forward exchange contracts and 2016 payments
related to the acquisitions of Fuhu and Sproutling, partially
offset by higher capital spending. Cash flows provided by financing
activities and other were approximately $473
million in 2017, compared to cash flows used for financing
activities and other of approximately $306
million for the prior year, primarily driven by proceeds
from the $1.0 billion issuance of
senior notes in December 2017 and
lower dividend payments, offset by higher net repayments of
short-term borrowings.
As of December 31, 2017, the
Company's debt-to-total capital ratio was 71.3%.
Sales by Brand
Mattel Girls and Boys Brands
For the year, worldwide gross sales for Mattel Girls & Boys
Brands were $3.1 billion, down 4% as
reported, and down 5% in constant currency, versus the prior year.
Worldwide gross sales for the Barbie brand were down 2% as
reported, and down 3% in constant currency, versus the prior year,
primarily driven by a shift in DVD entertainment strategy.
Worldwide gross sales for Other Girls brands were down 36% as
reported, and down 37% in constant currency, versus the prior year,
primarily driven by declines in Monster High® and Ever
After High®, partially offset by initial sales of Enchantimals.
Worldwide gross sales for the Wheels category were down 4% as
reported, and down 5% in constant currency, versus the prior year,
primarily driven by declines in Hot Wheels and
Matchbox®. Worldwide gross sales for the Entertainment
business were up 12% as reported, and up 11% in constant currency,
versus the prior year, primarily driven by increases in
CARS® sales, offset by declines in Minecraft® and DC
Comics® products.
For the fourth quarter, worldwide gross sales for Mattel Girls
& Boys Brands were $1.1 billion,
up 1% as reported, and down 2% in constant currency, versus the
prior year's fourth quarter. Worldwide gross sales for the Barbie
brand were up 9% as reported, and up 6% in constant currency,
versus the prior year's fourth quarter, as a result of shipping
aligning with strong POS. Worldwide gross sales for Other Girls
brands were down 35% as reported, and down 36% in constant
currency, versus the prior year's fourth quarter, primarily driven
by declines in Monster High and DC Super Hero Girls™, partially
offset by initial sales of
Enchantimals. Worldwide gross sales for the Wheels category were
down 7% as reported, and down 10% in constant currency, versus the
prior year's fourth quarter, primarily driven by declines in Hot
Wheels. Worldwide gross sales for the Entertainment business were
up 21% as reported, and up 18% in constant currency, versus the
prior year's fourth quarter, primarily driven by increases in CARS
sales, offset by declines in Dinotrux and Minecraft.
Fisher-Price Brands
For the year, worldwide gross sales for Fisher-Price Brands, which
includes the Fisher-Price Core, Fisher-Price Friends and Power
Wheels® brands, were $1.7
billion, down 11% as reported, and down 12% in constant
currency, versus the prior year, primarily driven by declines in
infant and preschool products and Thomas & Friends. Fourth
quarter worldwide gross sales were $533.8
million, down 12% as reported, and down 14% in constant
currency, versus the prior year's fourth quarter, primarily driven
by declines in infant and preschool products and Thomas &
Friends.
American Girl Brands
For the year, worldwide gross
sales for American Girl Brands, which offers American Girl-branded
products directly to consumers, were $451.5
million, down 21% as reported and in constant currency,
versus the prior year, primarily driven by lower sales across
channels. Fourth quarter worldwide gross sales for American Girl
Brands were $217.3 million, down 23%
as reported and in constant currency, versus the prior year's
fourth quarter, primarily driven by lower sales across
channels.
Construction and Arts & Crafts Brands
For the
year, worldwide gross sales for Construction and Arts & Crafts
Brands, which includes the MEGA BLOKS® and
RoseArt® brands, were $269.5
million, down 29% as reported and in constant currency,
versus the prior year, primarily driven by declines in MEGA BLOKS
licensed and preschool products. Fourth quarter worldwide gross
sales for Construction and Arts & Crafts Brands were
$93.5 million, down 25% as reported,
and down 26% in constant currency, versus the prior year's fourth
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 full year and fourth 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 Thursday, February 8,
2018, and may be accessed by dialing +1-404-537-3406. The
passcode is 5296699.
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
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 competitor's
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,
earnings before interest expense, taxes, depreciation and
amortization ("EBITDA"), adjusted EBITDA, 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 and asset impairments. 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, Venezuela matters,
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 U.S.
deferred tax assets Mattel believes will likely not be realized and
a one-time benefit realized due to U.S. tax reform.
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.
EBITDA and Adjusted EBITDA
EBITDA represents Mattel's
net income (loss), adjusted to exclude the impact of interest
expense, taxes, depreciation and amortization. Adjusted EBITDA
represents EBITDA 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, share-based compensation, asset impairments, the
net sales reversal related to Toys "R" Us filing for bankruptcy,
and Venezuela matters, which are
not part of Mattel's core business. Mattel believes EBITDA and
Adjusted EBITDA are useful supplemental information for investors
to gauge and compare Mattel's business performance to other
companies in our industry with similar capital structures. The
presentation of Adjusted EBITDA differs from how we will calculate
EBITDA for purposes of covenant compliance under the indenture
governing our 6.75% senior notes due 2025 and the syndicated
facility agreement governing our senior secured revolving credit
facilities. Because of these limitations, EBITDA and Adjusted
EBITDA should not be considered as measures of discretionary cash
available to us to invest in the growth of our business. As a
result, we rely primarily on our GAAP results and use EBITDA and
Adjusted EBITDA only supplementally.
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
28,000 people, Mattel operates in
40 countries and territories and sells products in more than 150
nations. Visit us online at www.mattel.com.
Contacts:
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News
Media
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Securities
Analysts
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Alex Clark
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Whitney
Steininger
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310-252-6397
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310-252-2703
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alex.clark@mattel.com
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whitney.steininger@mattel.com
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MAT-FIN MAT-CORP
1
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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), EBITDA, adjusted EBITDA, adjusted earnings (loss) per share
and constant currency.
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2
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Mattel internal
analysis, at wholesale; excludes American Girl.
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MATTEL, INC. AND
SUBSIDIARIES
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EXHIBIT
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CONSOLIDATED
STATEMENTS OF OPERATIONS (Unaudited)1
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For the Three
Months Ended December 31,
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For the Year Ended
December 31,
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Yr /
Yr
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Yr /
Yr
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Yr /
Yr
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Yr /
Yr
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%
Change
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%
Change
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%
Change
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%
Change
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2017
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2016
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as
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in
Constant
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2017
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2016
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as
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in
Constant
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(In millions,
except per share and percentage information)
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$
Amt
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% Net
Sales
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$
Amt
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% Net
Sales
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Reported
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Currency
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$
Amt
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% Net
Sales
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$
Amt
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% Net
Sales
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Reported
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Currency
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Net
Sales
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$
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1,610.9
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$
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1,834.4
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-12%
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-14%
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$
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4,882.0
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$
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5,456.7
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-11%
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-11%
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Cost of
sales
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1,115.7
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69.3%
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973.0
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53.0%
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15%
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3,061.1
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62.7%
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2,902.3
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53.2%
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5%
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Gross
Profit
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495.1
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30.7%
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861.4
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47.0%
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-43%
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-44%
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1,820.8
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37.3%
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2,554.4
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46.8%
|
|
-29%
|
|
-29%
|
Advertising and promotion expenses
|
|
|
293.5
|
|
18.2%
|
|
250.3
|
|
13.6%
|
|
17%
|
|
|
|
|
642.3
|
|
13.2%
|
|
634.9
|
|
11.6%
|
|
1%
|
|
|
Other
selling and administrative expenses
|
|
|
454.4
|
|
28.2%
|
|
348.5
|
|
19.0%
|
|
30%
|
|
|
|
|
1,521.4
|
|
31.2%
|
|
1,400.3
|
|
25.7%
|
|
9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating (Loss)
Income
|
|
|
(252.8)
|
|
-15.7%
|
|
262.6
|
|
14.3%
|
|
-196%
|
|
-195%
|
|
|
(342.8)
|
|
-7.0%
|
|
519.2
|
|
9.5%
|
|
-166%
|
|
-165%
|
Interest
expense
|
|
|
36.7
|
|
2.3%
|
|
25.0
|
|
1.4%
|
|
47%
|
|
|
|
|
105.2
|
|
2.2%
|
|
95.1
|
|
1.7%
|
|
11%
|
|
|
Interest
(income)
|
|
|
(1.4)
|
|
-0.1%
|
|
(1.6)
|
|
-0.1%
|
|
-10%
|
|
|
|
|
(7.8)
|
|
-0.2%
|
|
(9.1)
|
|
-0.2%
|
|
-15%
|
|
|
Other
non-operating expense, net
|
|
|
58.8
|
|
|
|
0.3
|
|
|
|
|
|
|
|
|
64.7
|
|
|
|
23.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) Income
Before Income Taxes
|
|
|
(346.8)
|
|
-21.5%
|
|
238.9
|
|
13.0%
|
|
-245%
|
|
-243%
|
|
|
(505.0)
|
|
-10.3%
|
|
409.7
|
|
7.5%
|
|
-223%
|
|
-220%
|
(Benefit) Provision for income taxes
|
|
|
(65.6)
|
|
|
|
65.1
|
|
|
|
|
|
|
|
|
548.8
|
|
|
|
91.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (Loss)
Income
|
|
$
|
(281.3)
|
|
-17.5%
|
$
|
173.8
|
|
9.5%
|
|
-262%
|
|
|
|
$
|
(1,053.8)
|
|
-21.6%
|
$
|
318.0
|
|
5.8%
|
|
-431%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (Loss) Income
Per Common Share - Basic
|
|
$
|
(0.82)
|
|
|
$
|
0.51
|
|
|
|
|
|
|
|
$
|
(3.07)
|
|
|
$
|
0.93
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average number of common shares
|
|
|
344.3
|
|
|
|
342.7
|
|
|
|
|
|
|
|
|
343.6
|
|
|
|
341.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (Loss) Income
Per Common Share - Diluted
|
|
$
|
(0.82)
|
|
|
$
|
0.50
|
|
|
|
|
|
|
|
$
|
(3.07)
|
|
|
$
|
0.92
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average number of common and potential common shares
|
|
|
344.3
|
|
|
|
345.0
|
|
|
|
|
|
|
|
|
343.6
|
|
|
|
344.2
|
|
|
|
|
|
|
|
|
1
|
Amounts may not foot
due to rounding.
|
MATTEL, INC. AND
SUBSIDIARIES
|
|
EXHIBIT
II
|
|
|
|
|
|
|
CONDENSED
CONSOLIDATED BALANCE SHEETS1
|
|
|
|
|
|
|
|
|
|
December
31,
|
|
|
|
2017
|
|
2016
|
(In
millions)
|
|
|
(Unaudited)
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
Cash and
equivalents
|
|
$
|
1,079.2
|
$
|
869.5
|
Accounts
receivable, net
|
|
|
1,128.6
|
|
1,115.2
|
Inventories
|
|
|
600.7
|
|
613.8
|
Prepaid
expenses and other current assets
|
|
|
303.1
|
|
341.5
|
Total current
assets
|
|
|
3,111.6
|
|
2,940.0
|
|
|
|
|
|
|
Property, plant, and equipment, net
|
|
|
785.3
|
|
774.0
|
Other
noncurrent assets
|
|
|
2,341.6
|
|
2,779.8
|
Total
Assets
|
|
$
|
6,238.5
|
$
|
6,493.8
|
|
|
|
|
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
|
Short-term borrowings
|
|
$
|
-
|
$
|
192.2
|
Current
portion of long-term debt
|
|
|
250.0
|
|
-
|
Accounts
payable and accrued liabilities
|
|
|
1,364.3
|
|
1,293.7
|
Income
taxes payable
|
|
|
9.5
|
|
19.7
|
Total current
liabilities
|
|
|
1,623.8
|
|
1,505.6
|
|
|
|
|
|
|
Long-term debt
|
|
|
2,873.1
|
|
2,134.3
|
Other
noncurrent liabilities
|
|
|
484.1
|
|
446.1
|
Stockholders' equity
|
|
|
1,257.5
|
|
2,407.8
|
Total Liabilities
and Stockholders' Equity
|
|
$
|
6,238.5
|
$
|
6,493.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SUPPLEMENTAL
BALANCE SHEET AND CASH FLOW DATA (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December
31,
|
(In millions,
except days and percentage information)
|
|
|
2017
|
|
2016
|
|
|
|
|
|
|
Key Balance Sheet
Data:
|
|
|
|
|
|
Accounts receivable,
net days of sales outstanding (DSO)
|
|
|
63
|
|
55
|
Total debt
outstanding
|
|
|
$ 3,123.1
|
|
$
2,326.5
|
Total debt-to-total
capital ratio
|
|
|
71.3%
|
|
49.1%
|
|
|
|
|
|
|
|
|
|
Year Ended
December 31,
|
(In
millions)
|
|
|
20172
|
|
2016
|
|
|
|
|
|
|
Condensed Cash
Flow Data:
|
|
|
|
|
|
Cash flows (used for)
provided by operating activities
|
|
|
$
(28)
|
|
$
595
|
|
|
|
|
|
|
Cash flows (used for)
investing activities
|
|
|
(236)
|
|
(312)
|
|
|
|
|
|
|
Cash flows provided
by (used for) financing activities and other
|
|
|
473
|
|
(306)
|
|
|
|
|
|
|
Increase (decrease)
in cash and equivalents
|
|
|
$
210
|
|
$
(23)
|
|
1
|
Amounts may not foot
due to rounding.
|
2
|
Amounts shown are
preliminary estimates. Actual amounts will be reported in Mattel's
Annual Report on Form 10-K for the year ended December 31,
2017.
|
MATTEL, INC. AND
SUBSIDIARIES
|
|
|
|
|
|
EXHIBIT
III
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WORLDWIDE GROSS
SALES INFORMATION (Unaudited)1
|
|
RECONCILIATION OF
GAAP AND NON-GAAP FINANCIAL MEASURES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three
Months Ended December 31,
|
|
|
For the Year Ended
December 31,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions,
except percentage information)
|
|
2017
|
|
2016
|
|
% Change
as Reported
|
|
% Change in
Constant
Currency
|
|
|
2017
|
|
2016
|
|
% Change
as Reported
|
|
% Change in
Constant
Currency
|
|
|
Worldwide Gross
Sales:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Sales
|
|
$ 1,610.9
|
|
$ 1,834.4
|
|
-12
|
%
|
-14
|
%
|
|
$ 4,882.0
|
|
$ 5,456.7
|
|
-11
|
%
|
-11
|
%
|
|
Sales
Adjustments2
|
|
309.9
|
|
249.1
|
|
|
|
|
|
|
632.2
|
|
617.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
Sales
|
|
$ 1,920.8
|
|
$ 2,083.5
|
|
-8
|
%
|
-10
|
%
|
|
$ 5,514.1
|
|
$ 6,073.7
|
|
-9
|
%
|
-10
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Worldwide Gross
Sales by Brand:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mattel Girls &
Boys Brands
|
|
$ 1,059.7
|
|
$ 1,051.4
|
|
1
|
%
|
-2
|
%
|
|
$ 3,077.7
|
|
$ 3,194.1
|
|
-4
|
%
|
-5
|
%
|
|
Fisher-Price
Brands
|
|
533.8
|
|
607.7
|
|
-12
|
|
-14
|
|
|
1,677.2
|
|
1,888.1
|
|
-11
|
|
-12
|
|
|
American Girl
Brands
|
|
217.3
|
|
283.9
|
|
-23
|
|
-23
|
|
|
451.5
|
|
570.8
|
|
-21
|
|
-21
|
|
|
Construction and Arts
& Crafts Brands
|
|
93.5
|
|
124.8
|
|
-25
|
|
-26
|
|
|
269.5
|
|
377.6
|
|
-29
|
|
-29
|
|
|
Other
|
|
16.6
|
|
15.7
|
|
|
|
|
|
|
38.2
|
|
43.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
Sales
|
|
$ 1,920.8
|
|
$ 2,083.5
|
|
-8
|
%
|
-10
|
%
|
|
$ 5,514.1
|
|
$ 6,073.7
|
|
-9
|
%
|
-10
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Worldwide Gross
Sales - Mattel Girls & Boys Brands:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Barbie
|
|
$
349.7
|
|
$
320.5
|
|
9
|
%
|
6
|
%
|
|
$
954.9
|
|
$
971.8
|
|
-2
|
%
|
-3
|
%
|
|
Other
Girls
|
|
102.9
|
|
157.2
|
|
-35
|
|
-36
|
|
|
297.7
|
|
461.7
|
|
-36
|
|
-37
|
|
|
Wheels
|
|
283.7
|
|
306.1
|
|
-7
|
|
-10
|
|
|
847.0
|
|
885.1
|
|
-4
|
|
-5
|
|
|
Entertainment
|
|
323.3
|
|
267.6
|
|
21
|
|
18
|
|
|
978.1
|
|
875.5
|
|
12
|
|
11
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
Sales
|
|
$ 1,059.7
|
|
$ 1,051.4
|
|
1
|
%
|
-2
|
%
|
|
$ 3,077.7
|
|
$ 3,194.1
|
|
-4
|
%
|
-5
|
%
|
|
|
1
|
Amounts may not foot
due to rounding.
|
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
IV
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GROSS SALES BY
REGION (Unaudited)1
|
|
RECONCILIATION OF
GAAP AND NON-GAAP FINANCIAL MEASURES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three
Months Ended December 31,
|
|
|
For the Year Ended
December 31,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 Gross Sales:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Sales
|
|
$ 645.4
|
|
$ 673.8
|
|
-4
|
%
|
-9
|
%
|
|
$ 2,060.8
|
|
$ 2,054.8
|
|
0
|
%
|
-1
|
%
|
|
Sales
Adjustments
|
|
221.1
|
|
159.7
|
|
|
|
|
|
|
442.7
|
|
392.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
Sales
|
|
$ 866.5
|
|
$ 833.5
|
|
4
|
%
|
-1
|
%
|
|
$ 2,503.5
|
|
$ 2,447.6
|
|
2
|
%
|
0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International
Region Gross Sales:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Europe
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Sales
|
|
$ 322.2
|
|
$ 332.0
|
|
-3
|
%
|
-9
|
%
|
|
$ 1,039.7
|
|
$ 1,062.9
|
|
-2
|
%
|
-4
|
%
|
|
Sales
Adjustments2
|
|
116.4
|
|
94.4
|
|
|
|
|
|
|
242.0
|
|
230.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
Sales
|
|
$ 438.5
|
|
$ 426.4
|
|
3
|
%
|
-4
|
%
|
|
$ 1,281.7
|
|
$ 1,293.3
|
|
-1
|
%
|
-3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Latin
America
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Sales
|
|
$ 196.6
|
|
$ 198.2
|
|
-1
|
%
|
-3
|
%
|
|
$
568.1
|
|
$
551.6
|
|
3
|
%
|
1
|
%
|
|
Sales
Adjustments2
|
|
57.8
|
|
35.0
|
|
|
|
|
|
|
107.2
|
|
84.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
Sales
|
|
$ 254.5
|
|
$ 233.2
|
|
9
|
%
|
6
|
%
|
|
$
675.3
|
|
$
636.5
|
|
6
|
%
|
4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asia
Pacific
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Sales
|
|
$ 126.6
|
|
$ 143.6
|
|
-12
|
%
|
-14
|
%
|
|
$
453.1
|
|
$
440.3
|
|
3
|
%
|
3
|
%
|
|
Sales
Adjustments2
|
|
46.9
|
|
30.3
|
|
|
|
|
|
|
93.5
|
|
77.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
Sales
|
|
$ 173.5
|
|
$ 173.9
|
|
0
|
%
|
-3
|
%
|
|
$
546.6
|
|
$
517.8
|
|
6
|
%
|
5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International
Region Gross Sales by Brand:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mattel Girls &
Boys Brands
|
|
$ 582.0
|
|
$ 533.3
|
|
9
|
%
|
4
|
%
|
|
$ 1,653.7
|
|
1,542.6
|
|
7
|
%
|
5
|
%
|
|
Fisher-Price
Brands
|
|
249.1
|
|
257.3
|
|
-3
|
|
-8
|
|
|
748.4
|
|
776.2
|
|
-4
|
|
-5
|
|
|
American Girl
Brands
|
|
0.1
|
|
1.5
|
|
-91
|
|
-91
|
|
|
0.1
|
|
2.5
|
|
-100
|
|
-100
|
|
|
Construction and Arts
& Crafts Brands
|
|
35.3
|
|
41.4
|
|
-15
|
|
-18
|
|
|
101.3
|
|
124.0
|
|
-18
|
|
-20
|
|
|
Other
|
|
-
|
|
-
|
|
|
|
|
|
|
-
|
|
2.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
Sales
|
|
$ 866.5
|
|
$ 833.5
|
|
4
|
%
|
-1
|
%
|
|
$ 2,503.5
|
|
$ 2,447.6
|
|
2
|
%
|
0
|
%
|
|
|
1
|
Amounts may not foot due to
rounding.
|
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
V
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GROSS SALES BY
REGION (Unaudited)1
|
|
RECONCILIATION OF
GAAP AND NON-GAAP FINANCIAL MEASURES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three
Months Ended December 31,
|
|
For the Year Ended
December 31,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 Sales:2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Sales
|
|
$
965.5
|
|
$
1,160.6
|
|
-17
|
%
|
-17
|
%
|
$
2,821.1
|
|
$
3,401.9
|
|
-17
|
%
|
-17
|
%
|
|
Sales
Adjustments3
|
|
88.9
|
|
89.4
|
|
|
|
|
|
189.5
|
|
224.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
Sales
|
|
$
1,054.3
|
|
$
1,250.0
|
|
-16
|
%
|
-16
|
%
|
$
3,010.6
|
|
$
3,626.1
|
|
-17
|
%
|
-17
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North American
Region Gross Sales by Brand:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mattel Girls &
Boys Brands
|
|
$
477.7
|
|
$
518.1
|
|
-8
|
%
|
-8
|
%
|
$
1,424.0
|
|
$
1,651.5
|
|
-14
|
%
|
-14
|
%
|
|
Fisher-Price
Brands
|
|
284.7
|
|
350.4
|
|
-19
|
|
-19
|
|
928.8
|
|
1,111.9
|
|
-16
|
|
-17
|
|
|
American Girl
Brands
|
|
217.2
|
|
282.4
|
|
-23
|
|
-23
|
|
451.4
|
|
568.3
|
|
-21
|
|
-21
|
|
|
Construction and Arts
& Crafts Brands
|
|
58.2
|
|
83.4
|
|
-30
|
|
-31
|
|
168.3
|
|
253.6
|
|
-34
|
|
-34
|
|
|
Other
|
|
16.6
|
|
15.7
|
|
|
|
|
|
38.1
|
|
40.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
Sales
|
|
$
1,054.3
|
|
$
1,250.0
|
|
-16
|
%
|
-16
|
%
|
$
3,010.6
|
|
$
3,626.1
|
|
-17
|
%
|
-17
|
%
|
|
|
1
|
Amounts may not foot due to
rounding.
|
2
|
Consists of U.S., Canada, and
American Girl.
|
3
|
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)1
|
RECONCILIATION OF
GAAP AND NON-GAAP FINANCIAL MEASURES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three
Months Ended December 31,
|
|
|
For the Year Ended
December 31,
|
(In millions,
except per share and percentage information)
|
|
|
2017
|
|
2016
|
|
|
2017
|
|
2016
|
Net
Sales
|
|
|
|
|
|
|
|
|
|
|
Net Sales, As
Reported
|
|
$
|
1,610.9
|
$
|
1,834.4
|
|
$
|
4,882.0
|
$
|
5,456.7
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
Toys "R" Us Net Sales
Reversal2
|
|
|
-
|
|
-
|
|
|
43.0
|
|
-
|
Net Sales, As
Adjusted
|
|
$
|
1,610.9
|
$
|
1,834.4
|
|
$
|
4,925.0
|
$
|
5,456.7
|
|
|
|
|
|
|
|
|
|
|
|
Gross
Profit
|
|
|
|
|
|
|
|
|
|
|
Gross Profit, As
Reported
|
|
$
|
495.1
|
$
|
861.4
|
|
$
|
1,820.8
|
$
|
2,554.4
|
Gross
Margin
|
|
|
30.7%
|
|
47.0%
|
|
|
37.3%
|
|
46.8%
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
Toys "R" Us Net Sales
Reversal2
|
|
|
-
|
|
-
|
|
|
43.0
|
|
-
|
Asset
Impairments3
|
|
|
20.6
|
|
-
|
|
|
20.6
|
|
-
|
Gross Profit, As
Adjusted
|
|
$
|
515.7
|
$
|
861.4
|
|
$
|
1,884.4
|
$
|
2,554.4
|
Adjusted Gross
Margin
|
|
|
32.0%
|
|
47.0%
|
|
|
38.3%
|
|
46.8%
|
|
|
|
|
|
|
|
|
|
|
|
Other Selling and
Administrative Expenses
|
|
|
|
|
|
|
|
|
|
|
Other Selling and
Administrative Expenses, As Reported
|
|
$
|
454.4
|
$
|
348.5
|
|
$
|
1,521.4
|
$
|
1,400.3
|
% of Net
Sales
|
|
|
28.2%
|
|
19.0%
|
|
|
31.2%
|
|
25.7%
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
Non-recurring
Executive Compensation
|
|
|
(3.1)
|
|
-
|
|
|
(11.3)
|
|
-
|
Integration &
Acquisition Costs4
|
|
|
-
|
|
(0.3)
|
|
|
-
|
|
(1.7)
|
Severance and
Restructuring Expenses
|
|
|
(43.6)
|
|
(6.3)
|
|
|
(65.1)
|
|
(39.9)
|
Asset
Impairments
|
|
|
(20.8)
|
|
-
|
|
|
(35.7)
|
|
-
|
Other Selling and
Administrative Expenses, As Adjusted
|
|
$
|
387.0
|
$
|
341.9
|
|
$
|
1,409.3
|
$
|
1,358.7
|
% of Net
Sales
|
|
|
24.0%
|
|
18.6%
|
|
|
28.6%
|
|
24.9%
|
|
|
|
|
|
|
|
|
|
|
|
Operating (Loss)
Income
|
|
|
|
|
|
|
|
|
|
|
Operating (Loss)
Income, As Reported
|
|
$
|
(252.8)
|
$
|
262.6
|
|
$
|
(342.8)
|
$
|
519.2
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
Toys "R" Us Net Sales
Reversal2
|
|
|
-
|
|
-
|
|
|
43.0
|
|
-
|
Asset
Impairments3
|
|
|
41.4
|
|
-
|
|
|
56.3
|
|
-
|
Non-recurring
Executive Compensation
|
|
|
3.1
|
|
-
|
|
|
11.3
|
|
-
|
Integration &
Acquisition Costs4
|
|
|
-
|
|
0.3
|
|
|
-
|
|
1.7
|
Severance and
Restructuring Expenses
|
|
|
43.6
|
|
6.3
|
|
|
65.1
|
|
39.9
|
Operating (Loss)
Income, As Adjusted
|
|
$
|
(164.8)
|
$
|
269.2
|
|
$
|
(167.1)
|
$
|
560.8
|
|
|
|
|
|
|
|
|
|
|
|
1 Amounts
may not foot due to rounding.
|
2As 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.
|
3For the
three and twelve months ended December 31, 2017, Asset Impairments
include tooling write-offs of $20.6 million which were recorded in
Cost of Sales.
|
4Includes
Integration & Acquisition Costs for Fuhu and Sproutling in
2016.
|
|
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share
|
|
|
|
|
|
|
|
|
|
|
Net (Loss) Income Per
Common Share, As Reported
|
|
$
|
(0.82)
|
$
|
0.50
|
|
$
|
(3.07)
|
$
|
0.92
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
Toys "R" Us Net Sales
Reversal2
|
|
|
-
|
|
-
|
|
|
0.13
|
|
-
|
Asset
Impairments3
|
|
|
0.12
|
|
-
|
|
|
0.16
|
|
-
|
Non-recurring
Executive Compensation
|
|
|
0.01
|
|
-
|
|
|
0.03
|
|
-
|
Severance and
Restructuring Expenses
|
|
|
0.13
|
|
0.02
|
|
|
0.19
|
|
0.12
|
Sale of
Assets
|
|
|
-
|
|
-
|
|
|
-
|
|
(0.01)
|
Venezuela
Matters5
|
|
|
0.17
|
|
-
|
|
|
0.17
|
|
0.08
|
Tax Effect of
Adjustments6
|
|
|
(0.02)
|
|
-
|
|
|
(0.03)
|
|
(0.05)
|
Valuation Allowance
and U.S. Tax Reform7
|
|
|
(0.30)
|
|
-
|
|
|
1.33
|
|
-
|
Net (Loss) Income Per
Common Share, As Adjusted
|
|
$
|
(0.72)
|
$
|
0.52
|
|
$
|
(1.08)
|
$
|
1.06
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA and
Adjusted EBITDA
|
|
|
|
|
|
|
|
|
|
|
Net (Loss) Income, As
Reported
|
|
$
|
(281.3)
|
$
|
173.8
|
|
$
|
(1,053.8)
|
$
|
318.0
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
|
36.7
|
|
25.0
|
|
|
105.2
|
|
95.1
|
(Benefit) Provision
for Income Taxes
|
|
|
(65.6)
|
|
65.1
|
|
|
548.8
|
|
91.7
|
Depreciation
|
|
|
61.0
|
|
57.9
|
|
|
240.8
|
|
235.8
|
Amortization
|
|
|
17.7
|
|
7.0
|
|
|
33.9
|
|
26.5
|
EBITDA
|
|
|
(231.5)
|
|
328.8
|
|
|
(125.0)
|
|
767.2
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
Toys "R" Us Net Sales
Reversal2
|
|
|
-
|
|
-
|
|
|
43.0
|
|
-
|
Asset
Impairments3
|
|
|
41.4
|
|
-
|
|
|
56.3
|
|
-
|
Shared-based
compensation
|
|
|
19.5
|
|
15.2
|
|
|
67.1
|
|
54.0
|
Integration &
Acquisition Costs4
|
|
|
-
|
|
0.3
|
|
|
-
|
|
1.7
|
Severance and
Restructuring Expenses
|
|
|
43.6
|
|
6.3
|
|
|
65.1
|
|
39.9
|
Sale of
Assets
|
|
|
-
|
|
-
|
|
|
-
|
|
(4.4)
|
Venezuela
Matters5
|
|
|
59.0
|
|
-
|
|
|
59.0
|
|
26.3
|
Adjusted
EBITDA
|
|
$
|
(68.0)
|
$
|
350.5
|
|
$
|
165.5
|
$
|
884.6
|
|
|
1
|
Amounts may not foot
due to rounding.
|
2
|
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.
|
3
|
For the
three and twelve months ended December 31, 2017, Asset Impairments
include tooling write-offs of $20.6 million which were recorded in
Cost of Sales.
|
4
|
Includes Integration
& Acquisition Costs for Fuhu and Sproutling in 2016.
|
5
|
For the three and
twelve months ended December 31, 2017, the amount includes a $59.0
million loss from the discontinuation of Venezuelan operations. For
the 12 months ended December
31, 2016, the amount includes the Venezuela currency devaluation
loss of $26.3 million.
|
6
|
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
twelve months ended December 31, 2017, U.S. adjustments were not tax effected because of the
valuation allowance on U.S. deferred tax assets.
|
7
|
For the three months ended
December 31, 2017, the amount includes a benefit of approximately
$105 million related to the estimated impact of U.S. Tax
Reform. For the twelve months ended December 31, 2017, the amount
includes a net expense of approximately $457 million related
to the valuation allowance on deferred tax assets and an estimate
of the impact of U.S. Tax Reform.
|
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SOURCE Mattel, Inc.