EXHIBIT 99.2
MATTEL, INC. AND SUBSIDIARIES
===================================================================================================================
1997 AND 1998 PRO FORMA CONSOLIDATED STATEMENTS OF OPERATIONS
Year Ended Dec. 31, 1997
---------------------------------------------
Impact of
As Charges &
(In millions, except per share amounts) Reported (a) Goodwill Pro Forma
- --------------------------------------- -------------- ------------ --------------
Net Sales $ 4,646.4 $ 0.0 $ 4,646.4
Cost of sales 2,422.3 0.0 2,422.3
---------- -------- ---------
Gross Profit 2,224.1 0.0 2,224.1
Advertising and promotion expenses 620.7 0.0 620.7
Other selling and administrative expenses 779.8 0.0 779.8
Restructuring and other charges 275.0 275.0 0.0
Other expense, net 1.2 0.0 1.2
---------- -------- ---------
Operating Income Before Amortization 547.4 (275.0) 822.4
Amortization of other intangibles 1.4 0.0 1.4
---------- -------- ---------
Operating Income Before Amortization of Goodwill 546.0 (275.0) 821.0
Amortization of goodwill 30.8 30.8 0.0
---------- -------- ---------
Operating Income 515.2 (305.8) 821.0
Interest expense 90.1 0.0 90.1
---------- -------- ---------
Income Before Income Taxes 425.1 (305.8) 730.9
Provision for income taxes 135.3 (71.0) 206.3
---------- -------- ---------
Income From Continuing Operations 289.8 (234.8) 524.6
Loss from discontinued operations, net of tax (467.9) (467.9) 0.0
Loss from extraordinary item, net of tax (4.6) (4.6) 0.0
---------- -------- ---------
Net Income (Loss) $ (182.7) $ (707.3) $ 524.6
========== ======== =========
Income (Loss) Per Share - Basic
Income from continuing operations $ 0.76 $ (0.63) $ 1.39
Loss from discontinued operations (1.27) (1.27) 0.00
Loss from extraordinary item (0.01) (0.01) 0.00
---------- -------- ---------
$ (0.52) $ (1.91) $ 1.39
========== ======== =========
Average Number of Common Shares
Outstanding - Basic 369.9 369.9 369.9
========== ======== =========
Income (Loss) Per Share - Diluted
Income from continuing operations $ 0.74 $ (0.62) $ 1.36
Loss from discontinued operations (1.24) (1.24) 0.00
Loss from extraordinary item (0.01) (0.01) 0.00
---------- -------- ---------
$ (0.51) $ (1.87) $ 1.36
========== ======== =========
Average Number of Common and Common
Equivalent Shares Outstanding - Diluted 378.7 378.7 378.7
========== ======== =========
Year Ended Dec. 31, 1998
---------------------------------------------
Impact of
As Charges &
(In millions, except per share amounts) Reported (a) Goodwill Pro Forma
- --------------------------------------- -------------- ------------ --------------
Net Sales $ 4,579.5 $ 0.0 $ 4,579.5
Cost of sales 2,425.0 0.0 2,425.0
--------- --------- ----------
Gross Profit 2,154.5 0.0 2,154.5
Advertising and promotion expenses 631.1 0.0 631.1
Other selling and administrative expenses 862.5 0.0 862.5
Restructuring and other charges 44.0 44.0 0.0
Other expense, net 5.3 0.0 5.3
--------- --------- ----------
Operating Income Before Amortization 611.6 (44.0) 655.6
Amortization of other intangibles 3.1 0.0 3.1
--------- --------- ----------
Operating Income Before Amortization of Goodwill 608.5 (44.0) 652.5
Amortization of goodwill 38.2 38.2 0.0
--------- --------- ----------
Operating Income 570.3 (82.2) 652.5
Interest expense 110.8 0.0 110.8
--------- --------- ----------
Income Before Income Taxes 459.5 (82.2) 541.7
Provision for income taxes 131.2 (21.0) 152.2
--------- --------- ----------
Income From Continuing Operations 328.3 (61.2) 389.5
Loss from discontinued operations, net of tax (122.2) (122.2) 0.0
Loss from extraordinary item, net of tax 0.0 0.0 0.0
--------- --------- ----------
Net Income (Loss) $ 206.1 $ (183.4) $ 389.5
========= ========= ==========
Income (Loss) Per Share - Basic
Income from continuing operations $ 0.82 $ (0.16) $ 0.98
Loss from discontinued operations (0.31) (0.31) 0.00
Loss from extraordinary item 0.00 0.00 0.00
--------- --------- ----------
$ 0.51 $ (0.47) $ 0.98
========= ========= ==========
Average Number of Common Shares
Outstanding - Basic 390.2 390.2 390.2
========= ========= ==========
Income (Loss) Per Share - Diluted
Income from continuing operations $ 0.76 $ (0.14) $ 0.90
Loss from discontinued operations (0.29) (0.29) 0.00
Loss from extraordinary item 0.00 0.00 0.00
--------- --------- ----------
$ 0.47 $ (0.43) $ 0.90
========= ========= ==========
Average Number of Common and Common
Equivalent Shares Outstanding - Diluted 421.7 421.7 421.7
========= ========= ==========
(a) Reported in accordance with Generally Accepted Accounting Principles and
restated from previously reported amounts to reflect reclassifications for
the impact of EITF Issue No. 01-09, "Accounting for Consideration Given by
a Vender to a Customer."
MATTEL, INC. AND SUBSIDIARIES
================================================================================
1999 PRO FORMA CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months Ended March 31, 1999
------------------------------------------------
Impact of
As Charges &
(In millions, except per share amounts) Reported (a) Goodwill Pro Forma
- --------------------------------------- ---------------- -------------- --------------
Net Sales $ 676.0 $ 0.0 $676.0
Cost of sales 375.9 0.0 375.9
------- ------ ------
Gross Profit 300.1 0.0 300.1
Advertising and promotion expenses 75.9 0.0 75.9
Other selling and administrative expenses 201.5 0.0 201.5
Restructuring and other charges 0.0 0.0 0.0
Other (income) expense, net 2.2 0.0 2.2
------- ------ ------
Operating Income (Loss) Before Amortization 20.5 0.0 20.5
Amortization of other intangibles 1.3 0.0 1.3
------- ------ ------
Operating Income (Loss) Before Amortization of Goodwill 19.2 0.0 19.2
Amortization of goodwill 11.7 11.7 0.0
------- ------ ------
Operating Income (Loss) 7.5 (11.7) 19.2
Interest expense 24.9 0.0 24.9
------- ------ ------
Income (Loss) Before Income Taxes (17.4) (11.7) (5.7)
Provision (benefit) for income taxes (4.8) (3.2) (1.6)
------- ------ ------
Income (Loss) From Continuing Operations (12.6) (8.5) (4.1)
Income (loss) from discontinued operations, net of tax 17.7 17.7 0.0
------- ------ ------
Net Income (Loss) $ 5.1 $ 9.2 $ (4.1)
======= ====== ======
Income (Loss) Per Share - Basic
Income (loss) from continuing operations $ (0.04) $(0.02) $(0.02)
Income (loss) from discontinued operations 0.05 0.05 0.00
------- ------ ------
$ 0.01 $ 0.03 $(0.02)
======= ====== ======
Average Number of Common Shares
Outstanding - Basic 396.5 396.5 396.5
======= ====== ======
Income (Loss) Per Share - Diluted
Income (loss) from continuing operations $ (0.04) $(0.02) $(0.02)
Income (loss) from discontinued operations 0.05 0.05 0.00
------- ------ ------
$ 0.01 $ 0.03 $(0.02)
======= ====== ======
Average Number of Common and Common
Equivalent Shares Outstanding - Diluted 396.5 396.5 396.5
======= ====== ======
Three Months Ended June 30, 1999
-------------------------------------------------
Impact of
As Charges &
(In millions, except per share amounts) Reported (a) Goodwill Pro Forma
- --------------------------------------- ---------------- ------------- --------------
Net Sales $ 791.5 $ 0.0 $791.5
Cost of sales 448.1 0.0 448.1
------- ------- ------
Gross Profit 343.4 0.0 343.4
Advertising and promotion expenses 80.6 0.0 80.6
Other selling and administrative expenses 198.5 0.0 198.5
Restructuring and other charges 293.1 293.1 0.0
Other (income) expense, net 1.0 0.0 1.0
------- ------- ------
Operating Income (Loss) Before Amortization (229.8) (293.1) 63.3
Amortization of other intangibles 1.3 0.0 1.3
------- ------- ------
Operating Income (Loss) Before Amortization of Goodwill (231.1) (293.1) 62.0
Amortization of goodwill 11.7 11.7 0.0
------- ------- ------
Operating Income (Loss) (242.8) (304.8) 62.0
Interest expense 27.6 0.0 27.6
------- ------- ------
Income (Loss) Before Income Taxes (270.4) (304.8) 34.4
Provision (benefit) for income taxes (59.4) (68.8) 9.4
------- ------- ------
Income (Loss) From Continuing Operations (211.0) (236.0) 25.0
Income (loss) from discontinued operations, net of tax 6.6 6.6 0.0
------- ------- ------
Net Income (Loss) $(204.4) $(229.4) $ 25.0
======= ======= ======
Income (Loss) Per Share - Basic
Income (loss) from continuing operations $ (0.52) $ (0.58) $ 0.06
Income (loss) from discontinued operations 0.02 0.02 0.00
------- ------- ------
$ (0.50) $ (0.56) $ 0.06
======= ======= ======
Average Number of Common Shares
Outstanding - Basic 409.0 409.0 409.0
======= ======= ======
Income (Loss) Per Share - Diluted
Income (loss) from continuing operations $ (0.52) $ (0.58) $ 0.06
Income (loss) from discontinued operations 0.02 0.02 0.00
------- ------- ------
$ (0.50) $ (0.56) $ 0.06
======= ======= ======
Average Number of Common and Common
Equivalent Shares Outstanding - Diluted 409.0 409.0 409.0
======= ======= ======
Three Months Ended Sept. 30, 1999
------------------------------------------------
Impact of
As Charges &
(In millions, except per share amounts) Reported (a) Goodwill Pro Forma
- --------------------------------------- ---------------- ------------- --------------
Net Sales $1,557.4 $ 0.0 $1,557.4
Cost of sales 812.9 0.0 812.9
-------- ------- --------
Gross Profit 744.5 0.0 744.5
Advertising and promotion expenses 185.3 0.0 185.3
Other selling and administrative expenses 204.7 0.0 204.7
Restructuring and other charges 0.0 0.0 0.0
Other (income) expense, net (1.4) 0.0 (1.4)
-------- ------- --------
Operating Income (Loss) Before Amortization 355.9 0.0 355.9
Amortization of other intangibles 1.3 0.0 1.3
-------- ------ --------
Operating Income (Loss) Before Amortization of Goodwill 354.6 0.0 354.6
Amortization of goodwill 11.8 11.8 0.0
-------- ------ --------
Operating Income (Loss) 342.8 (11.8) 354.6
Interest expense 36.0 0.0 36.0
-------- ------ --------
Income (Loss) Before Income Taxes 306.8 (11.8) 318.6
Provision (benefit) for income taxes 84.7 (1.9) 86.6
-------- ------ --------
Income (Loss) From Continuing Operations 222.1 (9.9) 232.0
Income (loss) from discontinued operations, net of tax (86.8) (86.8) 0.0
-------- ------ --------
Net Income (Loss) $ 135.3 $(96.7) $ 232.0
======== ====== ========
Income (Loss) Per Share - Basic
Income (loss) from continuing operations $ 0.52 $(0.03) $ 0.55
Income (loss) from discontinued operations (0.20) (0.20) 0.00
-------- ------ --------
$ 0.32 $(0.23) $ 0.55
======== ====== ========
Average Number of Common Shares
Outstanding - Basic 425.1 425.1 425.1
======== ====== ========
Income (Loss) Per Share - Diluted
Income (loss) from continuing operations $ 0.52 $(0.02) $ 0.54
Income (loss) from discontinued operations (0.20) (0.20) 0.00
-------- ------ --------
$ 0.32 $(0.22) $ 0.54
======== ====== ========
Average Number of Common and Common
Equivalent Shares Outstanding - Diluted 429.5 429.5 429.5
======== ====== ========
Three Months Ended Dec. 31, 1999
------------------------------------------------
Impact of
As Charges &
(In millions, except per share amounts) Reported (a) Goodwill Pro Forma
- --------------------------------------- ---------------- -------------- --------------
Net Sales $1,477.8 $ 0.0 $1,477.8
Cost of sales 798.6 0.0 798.6
-------- ------- --------
Gross Profit 679.2 0.0 679.2
Advertising and promotion expenses 227.9 0.0 227.9
Other selling and administrative expenses 263.2 0.0 263.2
Restructuring and other charges (12.0) (12.0) 0.0
Other (income) expense, net (7.1) 0.0 (7.1)
-------- ------- --------
Operating Income (Loss) Before Amortization 207.2 12.0 195.2
Amortization of other intangibles 1.3 0.0 1.3
-------- ------- --------
Operating Income (Loss) Before Amortization of Goodwill 205.9 12.0 193.9
Amortization of goodwill 11.6 11.6 0.0
-------- ------- --------
Operating Income (Loss) 194.3 0.4 193.9
Interest expense 43.1 0.0 43.1
-------- ------- --------
Income (Loss) Before Income Taxes 151.2 0.4 150.8
Provision (benefit) for income taxes 41.3 0.3 41.0
-------- ------- --------
Income (Loss) From Continuing Operations 109.9 0.1 109.8
Income (loss) from discontinued operations, net of tax (128.3) (128.3) 0.0
-------- ------- --------
Net Income (Loss) $ (18.4) $(128.2) $ 109.8
======== ======= ========
Income (Loss) Per Share - Basic
Income (loss) from continuing operations $ 0.26 $ 0.00 $ 0.26
Income (loss) from discontinued operations (0.30) (0.30) 0.00
-------- ------- --------
$ (0.04) $ (0.30) $ 0.26
======== ======= ========
Average Number of Common Shares
Outstanding - Basic 425.7 425.7 425.7
======== ======= ========
Income (Loss) Per Share - Diluted
Income (loss) from continuing operations $ 0.26 $ 0.00 $ 0.26
Income (loss) from discontinued operations (0.30) (0.30) 0.00
-------- ------- --------
$ (0.04) $ (0.30) $ 0.26
======== ======= ========
Average Number of Common and Common
Equivalent Shares Outstanding - Diluted 426.5 426.5 426.5
======== ======= ========
Year Ended Dec. 31, 1999
----------------------------------------------
Impact of
As Charges &
(In millions, except per share amounts) Reported (a) Goodwill Pro Forma
- --------------------------------------- -------------- -------------- --------------
Net Sales $4,502.7 $ 0.0 $4,502.7
Cost of sales 2,435.5 0.0 2,435.5
-------- ------- --------
Gross Profit 2,067.2 0.0 2,067.2
Advertising and promotion expenses 569.7 0.0 569.7
Other selling and administrative expenses 867.9 0.0 867.9
Restructuring and other charges 281.1 281.1 0.0
Other (income) expense, net (5.3) 0.0 (5.3)
-------- ------- --------
Operating Income (Loss) Before Amortization 353.8 (281.1) 634.9
Amortization of other intangibles 5.2 0.0 5.2
-------- ------- --------
Operating Income (Loss) Before Amortization of Goodwill 348.6 (281.1) 629.7
Amortization of goodwill 46.8 46.8 0.0
-------- ------- --------
Operating Income (Loss) 301.8 (327.9) 629.7
Interest expense 131.6 0.0 131.6
-------- ------- --------
Income (Loss) Before Income Taxes 170.2 (327.9) 498.1
Provision (benefit) for income taxes 61.8 (73.6) 135.4
-------- ------- --------
Income (Loss) From Continuing Operations 108.4 (254.3) 362.7
Income (loss) from discontinued operations, net of tax (190.8) (190.8) 0.0
-------- ------- --------
Net Income (Loss) $ (82.4) $(445.1) $ 362.7
======== ======= ========
Income (Loss) Per Share - Basic
Income (loss) from continuing operations $ 0.25 $ (0.62) $ 0.87
Income (loss) from discontinued operations (0.46) (0.46) 0.00
-------- ------- --------
$ (0.21) $ (1.08) $ 0.87
======== ======= ========
Average Number of Common Shares
Outstanding - Basic 414.2 414.2 414.2
======== ======= ========
Income (Loss) Per Share - Diluted
Income (loss) from continuing operations $ 0.25 $ (0.59) $ 0.84
Income (loss) from discontinued operations (0.45) (0.45) 0.00
-------- ------- --------
$ (0.20) $ (1.04) $ 0.84
======== ======= ========
Average Number of Common and Common
Equivalent Shares Outstanding - Diluted 425.3 425.3 425.3
======== ======= ========
(a) Reported in accordance with Generally Accepted Accounting Principles and
restated from previously reported amounts to reflect reclassifications for
the impact of EITF Issue No. 01-09, "Accounting for Consideration Given by a
Vender to a Customer."
MATTEL, INC. AND SUBSIDIARIES
================================================================================
2000 PRO FORMA CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months Ended March 31, 2000
-----------------------------------------------
Impact of
As Charges &
(In millions, except per share amounts) Reported (a) Goodwill Pro Forma
- --------------------------------------- ------------ ----------- -----------
Net Sales $ 679.6 $ 0.0 $ 679.6
Cost of sales 379.7 0.0 379.7
---------- ---------- ----------
Gross Profit 299.9 0.0 299.9
Advertising and promotion expenses 76.8 0.0 76.8
Other selling and administrative expenses 254.2 53.1 201.1
Restructuring and other charges 0.0 0.0 0.0
Other (income) expense, net (6.4) 0.0 (6.4)
---------- ---------- ----------
Operating Income (Loss) Before Amortization (24.7) (53.1) 28.4
Amortization of other intangibles 1.3 0.0 1.3
---------- ---------- ----------
Operating Income (Loss) Before Amortization of Goodwill (26.0) (53.1) 27.1
Amortization of goodwill 11.2 11.2 0.0
---------- ---------- ----------
Operating Income (Loss) (37.2) (64.3) 27.1
Interest expense 24.4 0.0 24.4
---------- ---------- ----------
Income (Loss) Before Income Taxes (61.6) (64.3) 2.7
Provision (benefit) for income taxes (17.0) (17.7) 0.7
---------- ---------- ----------
Income (Loss) From Continuing Operations (44.6) (46.6) 2.0
Loss from discontinued operations, net of tax (126.6) (126.6) 0.0
---------- ---------- ----------
Net Income (Loss) $ (171.2) $ (173.2) $ 2.0
========== ========== ==========
Income (Loss) Per Share - Basic
Income (loss) from continuing operations $ (0.10) $ (0.11) $ 0.01
Loss from discontinued operations (0.30) (0.30) 0.00
---------- ---------- ----------
$ (0.40) $ (0.41) $ 0.01
========== ========== ==========
Average Number of Common Shares
Outstanding - Basic 425.5 425.5 425.5
========== ========== ==========
Income (Loss) Per Share - Diluted
Income (loss) from continuing operations $ (0.10) $ (0.11) $ 0.01
Loss from discontinued operations (0.30) (0.30) 0.00
---------- ---------- ----------
$ (0.40) $ (0.41) $ 0.01
========== ========== ==========
Average Number of Common and Common
Equivalent Shares Outstanding - Diluted 425.5 425.5 425.5
========== ========== ==========
Three Months Ended June 30, 2000
-----------------------------------------------
Impact of
As Charges &
(In millions, except per share amounts) Reported (a) Goodwill Pro Forma
- --------------------------------------- ------------ ----------- -----------
Net Sales $ 803.0 $ 0.0 $ 803.0
Cost of sales 454.7 0.0 454.7
---------- ---------- ----------
Gross Profit 348.3 0.0 348.3
Advertising and promotion expenses 83.0 0.0 83.0
Other selling and administrative expenses 218.7 0.0 218.7
Restructuring and other charges (2.0) (2.0) 0.0
Other (income) expense, net (9.0) 0.0 (9.0)
---------- ---------- ----------
Operating Income (Loss) Before Amortization 57.6 2.0 55.6
Amortization of other intangibles 1.3 0.0 1.3
---------- ---------- ----------
Operating Income (Loss) Before Amortization of Goodwill 56.3 2.0 54.3
Amortization of goodwill 12.1 12.1 0.0
---------- ---------- ----------
Operating Income (Loss) 44.2 (10.1) 54.3
Interest expense 35.9 0.0 35.9
---------- ---------- ----------
Income (Loss) Before Income Taxes 8.3 (10.1) 18.4
Provision (benefit) for income taxes 2.3 (2.7) 5.0
---------- ---------- ----------
Income (Loss) From Continuing Operations 6.0 (7.4) 13.4
Loss from discontinued operations, net of tax 0.0 0.0 0.0
---------- ---------- ----------
Net Income (Loss) $ 6.0 $ (7.4) $ 13.4
========== ========== ==========
Income (Loss) Per Share - Basic
Income (loss) from continuing operations $ 0.01 $ (0.02) $ 0.03
Loss from discontinued operations 0.00 0.00 0.00
---------- ---------- ----------
$ 0.01 $ (0.02) $ 0.03
========== ========== ==========
Average Number of Common Shares
Outstanding - Basic 425.8 425.8 425.8
========== ========== ==========
Income (Loss) Per Share - Diluted
Income (loss) from continuing operations $ 0.01 $ (0.02) $ 0.03
Loss from discontinued operations 0.00 0.00 0.00
---------- ---------- ----------
$ 0.01 $ (0.02) $ 0.03
========== ========== ==========
Average Number of Common and Common
Equivalent Shares Outstanding - Diluted 427.8 427.8 427.8
========== ========== ==========
Three Months Ended Sept. 30, 2000
-----------------------------------------------
Impact of
As Charges &
(In millions, except per share amounts) Reported (a) Goodwill Pro Forma
- --------------------------------------- ------------ ----------- -----------
Net Sales $ 1,549.6 $ 0.0 $ 1,549.6
Cost of sales 917.9 72.0 845.9
---------- ---------- ----------
Gross Profit 631.7 (72.0) 703.7
Advertising and promotion expenses 190.3 3.8 186.5
Other selling and administrative expenses 224.7 2.1 222.6
Restructuring and other charges 17.9 17.9 0.0
Other (income) expense, net 7.6 9.0 (1.4)
---------- ---------- ----------
Operating Income (Loss) Before Amortization 191.2 (104.8) 296.0
Amortization of other intangibles 1.7 0.5 1.2
---------- ---------- ----------
Operating Income (Loss) Before Amortization of Goodwill 189.5 (105.3) 294.8
Amortization of goodwill 11.6 11.6 0.0
---------- ---------- ----------
Operating Income (Loss) 177.9 (116.9) 294.8
Interest expense 42.6 0.0 42.6
---------- ---------- ----------
Income (Loss) Before Income Taxes 135.3 (116.9) 252.2
Provision (benefit) for income taxes 31.6 (37.2) 68.8
---------- ---------- ----------
Income (Loss) From Continuing Operations 103.7 (79.7) 183.4
Loss from discontinued operations, net of tax (440.6) (440.6) 0.0
---------- ---------- ----------
Net Income (Loss) $ (336.9) $ (520.3) $ 183.4
========== ========== ==========
Income (Loss) Per Share - Basic
Income (loss) from continuing operations $ 0.24 $ (0.19) $ 0.43
Loss from discontinued operations (1.03) (1.03) 0.00
---------- ---------- ----------
$ (0.79) $ (1.22) $ 0.43
========== ========== ==========
Average Number of Common Shares
Outstanding - Basic 426.4 426.4 426.4
========== ========== ==========
Income (Loss) Per Share - Diluted
Income (loss) from continuing operations $ 0.24 $ (0.19) $ 0.43
Loss from discontinued operations (1.03) (1.03) 0.00
---------- ---------- ----------
$ (0.79) $ (1.22) $ 0.43
========== ========== ==========
Average Number of Common and Common
Equivalent Shares Outstanding - Diluted 426.9 426.9 426.9
========== ========== ==========
Three Months Ended Dec. 31, 2000
-----------------------------------------------
Impact of
As Charges &
(In millions, except per share amounts) Reported (a) Goodwill Pro Forma
- --------------------------------------- ------------ ----------- -----------
Net Sales $ 1,533.3 $ 0.0 $ 1,533.3
Cost of sales 820.0 6.6 813.4
---------- ---------- ----------
Gross Profit 713.3 (6.6) 719.9
Advertising and promotion expenses 228.2 1.0 227.2
Other selling and administrative expenses 269.4 3.8 265.6
Restructuring and other charges 0.0 0.0 0.0
Other (income) expense, net 9.4 11.9 (2.5)
---------- ---------- ----------
Operating Income (Loss) Before Amortization 206.3 (23.3) 229.6
Amortization of other intangibles 1.2 0.0 1.2
---------- ---------- ----------
Operating Income (Loss) Before Amortization of Goodwill 205.1 (23.3) 228.4
Amortization of goodwill 11.6 11.6 0.0
---------- ---------- ----------
Operating Income (Loss) 193.5 (34.9) 228.4
Interest expense 50.1 0.0 50.1
---------- ---------- ----------
Income (Loss) Before Income Taxes 143.4 (34.9) 178.3
Provision (benefit) for income taxes 38.3 (10.3) 48.6
---------- ---------- ----------
Income (Loss) From Continuing Operations 105.1 (24.6) 129.7
Loss from discontinued operations, net of tax (34.0) (34.0) 0.0
---------- ---------- ----------
Net Income (Loss) $ 71.1 $ (58.6) $ 129.7
========== ========== ==========
Income (Loss) Per Share - Basic
Income (loss) from continuing operations $ 0.25 $ (0.05) $ 0.30
Loss from discontinued operations (0.08) (0.08) 0.00
---------- ---------- ----------
$ 0.17 $ (0.13) $ 0.30
========== ========== ==========
Average Number of Common Shares
Outstanding - Basic 426.9 426.9 426.9
========== ========== ==========
Income (Loss) Per Share - Diluted
Income (loss) from continuing operations $ 0.25 $ (0.05) $ 0.30
Loss from discontinued operations (0.08) (0.08) 0.00
---------- ---------- ----------
$ 0.17 $ (0.13) $ 0.30
========== ========== ==========
Average Number of Common and Common
Equivalent Shares Outstanding - Diluted 428.5 428.5 428.5
========== ========== ==========
Year Ended Dec. 31, 2000
-----------------------------------------------
Impact of
As Charges &
(In millions, except per share amounts) Reported (a) Goodwill Pro Forma
- --------------------------------------- ------------ ----------- -----------
Net Sales $ 4,565.5 $ 0.0 $ 4,565.5
Cost of sales 2,572.3 78.6 2,493.7
---------- ---------- ----------
Gross Profit 1,993.2 (78.6) 2,071.8
Advertising and promotion expenses 578.3 4.8 573.5
Other selling and administrative expenses 967.0 59.0 908.0
Restructuring and other charges 15.9 15.9 0.0
Other (income) expense, net 1.6 20.9 (19.3)
---------- ---------- ----------
Operating Income (Loss) Before Amortization 430.4 (179.2) 609.6
Amortization of other intangibles 5.5 0.5 5.0
---------- ---------- ----------
Operating Income (Loss) Before Amortization of Goodwill 424.9 (179.7) 604.6
Amortization of goodwill 46.5 46.5 0.0
---------- ---------- ----------
Operating Income (Loss) 378.4 (226.2) 604.6
Interest expense 153.0 0.0 153.0
---------- ---------- ----------
Income (Loss) Before Income Taxes 225.4 (226.2) 451.6
Provision (benefit) for income taxes 55.2 (67.9) 123.1
---------- ---------- ----------
Income (Loss) From Continuing Operations 170.2 (158.3) 328.5
Loss from discontinued operations, net of tax (601.2) (601.2) 0.0
---------- ---------- ----------
Net Income (Loss) $ (431.0) $ (759.5) $ 328.5
========== ========== ==========
Income (Loss) Per Share - Basic
Income (loss) from continuing operations $ 0.40 $ (0.37) $ 0.77
Loss from discontinued operations (1.41) (1.41) 0.00
---------- ---------- ----------
$ (1.01) $ (1.78) $ 0.77
========== ========== ==========
Average Number of Common Shares
Outstanding - Basic 426.2 426.2 426.2
========== ========== ==========
Income (Loss) Per Share - Diluted
Income (loss) from continuing operations $ 0.40 $ (0.37) $ 0.77
Loss from discontinued operations (1.41) (1.41) 0.00
---------- ---------- ----------
$ (1.01) $ (1.78) $ 0.77
========== ========== ==========
Average Number of Common and Common
Equivalent Shares Outstanding - Diluted 427.1 427.1 427.1
========== ========== ==========
(a) Reported in accordance with Generally Accepted Accounting Principles and
restated from previously reported amounts to reflect reclassifications for
the impact of EITF Issue No. 01-09, "Accounting for Consideration Given by
a Vender to a Customer."
MATTEL, INC. AND SUBSIDIARIES
================================================================================
2001 PRO FORMA CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months Ended March 31, 2001
--------------------------------------------
Impact of
As Charges &
(In millions, except per share amounts) Reported (a) Goodwill Pro Forma
- --------------------------------------- ------------ ----------- ----------
Net Sales $ 715.2 $ 0.0 $ 715.2
Cost of sales 405.2 6.6 398.6
---------- ----------- ---------
Gross Profit 310.0 (6.6) 316.6
Advertising and promotion expenses 79.7 0.3 79.4
Other selling and administrative expenses 205.3 0.1 205.2
Restructuring and other charges 0.0 0.0 0.0
Other expense, net 6.5 5.5 1.0
---------- ----------- ---------
Operating Income Before Amortization 18.5 (12.5) 31.0
Amortization of other intangibles 1.3 0.0 1.3
---------- ----------- ---------
Operating Income Before Amortization of Goodwill 17.2 (12.5) 29.7
Amortization of goodwill 11.5 11.5 0.0
---------- ----------- ---------
Operating Income 5.7 (24.0) 29.7
Interest expense 34.9 0.0 34.9
---------- ----------- ---------
Income (Loss) Before Income Taxes (29.2) (24.0) (5.2)
Provision (benefit) for income taxes (7.2) (5.8) (1.4)
---------- ----------- ---------
Income (Loss) From Continuing Operations (22.0) (18.2) (3.8)
Cumulative effect of change in accounting principles,
net of tax (12.0) (12.0) 0.0
---------- ----------- ---------
Net Income (Loss) $ (34.0) $ (30.2) $ (3.8)
========== =========== =========
Income (Loss) Per Share - Basic
Income (loss) from continuing operations $ (0.05) $ (0.04) $ (0.01)
Cumulative effect of change in accounting principles (0.03) (0.03) 0.00
---------- ----------- ---------
$ (0.08) $ (0.07) $ (0.01)
========== =========== =========
Average Number of Common Shares
Outstanding - Basic 429.9 429.9 429.9
========== =========== =========
Income (Loss) Per Share - Diluted
Income (loss) from continuing operations $ (0.05) $ (0.04) $ (0.01)
Cumulative effect of change in accounting principles (0.03) (0.03) 0.00
---------- ----------- ---------
$ (0.08) $ (0.07) $ (0.01)
========== =========== =========
Average Number of Common and Common
Equivalent Shares Outstanding - Diluted 429.9 429.9 429.9
========== =========== =========
Three Months Ended June 30, 2001
--------------------------------------------
Impact of
As Charges &
(In millions, except per share amounts) Reported (a) Goodwill Pro Forma
- --------------------------------------- ------------ ----------- ----------
Net Sales $ 836.2 $ 0.0 $ 836.2
Cost of sales 475.8 7.2 468.6
---------- ----------- ---------
Gross Profit 360.4 (7.2) 367.6
Advertising and promotion expenses 84.9 0.0 84.9
Other selling and administrative expenses 214.3 0.0 214.3
Restructuring and other charges 13.0 13.0 0.0
Other expense, net 2.7 0.6 2.1
---------- ----------- ---------
Operating Income Before Amortization 45.5 (20.8) 66.3
Amortization of other intangibles 1.2 0.0 1.2
---------- ----------- ---------
Operating Income Before Amortization of Goodwill 44.3 (20.8) 65.1
Amortization of goodwill 11.5 11.5 0.0
---------- ----------- ---------
Operating Income 32.8 (32.3) 65.1
Interest expense 39.6 0.0 39.6
---------- ----------- ---------
Income (Loss) Before Income Taxes (6.8) (32.3) 25.5
Provision (benefit) for income taxes (1.9) (8.9) 7.0
---------- ----------- ---------
Income (Loss) From Continuing Operations (4.9) (23.4) 18.5
Cumulative effect of change in accounting principles,
net of tax 0.0 0.0 0.0
---------- ----------- ---------
Net Income (Loss) $ (4.9) $ (23.4) $ 18.5
========== =========== =========
Income (Loss) Per Share - Basic
Income (loss) from continuing operations $ (0.01) $ (0.05) $ 0.04
Cumulative effect of change in accounting principles 0.00 0.00 0.00
---------- ----------- ---------
$ (0.01) $ (0.05) $ 0.04
========== =========== =========
Average Number of Common Shares
Outstanding - Basic 430.9 430.9 430.9
========== =========== =========
Income (Loss) Per Share - Diluted
Income (loss) from continuing operations $ (0.01) $ (0.05) $ 0.04
Cumulative effect of change in accounting principles 0.00 0.00 0.00
---------- ----------- ---------
$ (0.01) $ (0.05) $ 0.04
========== =========== =========
Average Number of Common and Common
Equivalent Shares Outstanding - Diluted 430.9 430.9 430.9
========== =========== =========
Three Months Ended Sept. 30, 2001
--------------------------------------------
Impact of
As Charges &
(In millions, except per share amounts) Reported (a) Goodwill Pro Forma
- --------------------------------------- ------------ ----------- ----------
Net Sales $ 1,575.3 $ 0.0 $ 1,575.3
Cost of sales 840.0 10.2 829.8
---------- ----------- ---------
Gross Profit 735.3 (10.2) 745.5
Advertising and promotion expenses 174.9 0.0 174.9
Other selling and administrative expenses 230.3 0.0 230.3
Restructuring and other charges 0.0 0.0 0.0
Other expense, net 2.3 1.0 1.3
---------- ----------- ---------
Operating Income Before Amortization 327.8 (11.2) 339.0
Amortization of other intangibles 1.2 0.0 1.2
---------- ----------- ---------
Operating Income Before Amortization of Goodwill 326.6 (11.2) 337.8
Amortization of goodwill 11.5 11.5 0.0
---------- ----------- ---------
Operating Income 315.1 (22.7) 337.8
Interest expense 39.5 0.0 39.5
---------- ----------- ---------
Income (Loss) Before Income Taxes 275.6 (22.7) 298.3
Provision (benefit) for income taxes 75.8 (5.8) 81.6
---------- ----------- ---------
Income (Loss) From Continuing Operations 199.8 (16.9) 216.7
Cumulative effect of change in accounting principles,
net of tax 0.0 0.0 0.0
---------- ----------- ---------
Net Income (Loss) $ 199.8 $ (16.9) $ 216.7
========== =========== =========
Income (Loss) Per Share - Basic
Income (loss) from continuing operations $ 0.46 $ (0.04) $ 0.50
Cumulative effect of change in accounting principles 0.00 0.00 0.00
---------- ----------- ---------
$ 0.46 $ (0.04) $ 0.50
========== =========== =========
Average Number of Common Shares
Outstanding - Basic 431.2 431.2 431.2
========== =========== =========
Income (Loss) Per Share - Diluted
Income (loss) from continuing operations $ 0.46 $ (0.04) $ 0.50
Cumulative effect of change in accounting principles 0.00 0.00 0.00
---------- ----------- ---------
$ 0.46 $ (0.04) $ 0.50
========== =========== =========
Average Number of Common and Common
Equivalent Shares Outstanding - Diluted 436.3 436.3 436.3
========== =========== =========
Three Months Ended Dec. 31, 2001
--------------------------------------------
Impact of
As Charges &
(In millions, except per share amounts) Reported (a) Goodwill Pro Forma
- --------------------------------------- ------------ ----------- ----------
Net Sales $ 1,561.2 $ 0.0 $ 1,561.2
Cost of sales 818.0 4.2 813.8
---------- ----------- ---------
Gross Profit 743.2 (4.2) 747.4
Advertising and promotion expenses 204.0 0.0 204.0
Other selling and administrative expenses 286.2 1.4 284.8
Restructuring and other charges 2.7 2.7 0.0
Other expense, net 5.9 2.9 3.0
---------- ----------- ---------
Operating Income Before Amortization 244.4 (11.2) 255.6
Amortization of other intangibles 1.3 0.0 1.3
---------- ----------- ---------
Operating Income Before Amortization of Goodwill 243.1 (11.2) 254.3
Amortization of goodwill 11.6 11.6 0.0
---------- ----------- ---------
Operating Income 231.5 (22.8) 254.3
Interest expense 41.1 0.0 41.1
---------- ----------- ---------
Income (Loss) Before Income Taxes 190.4 (22.8) 213.2
Provision (benefit) for income taxes 52.4 (5.9) 58.3
---------- ----------- ---------
Income (Loss) From Continuing Operations 138.0 (16.9) 154.9
Cumulative effect of change in accounting principles,
net of tax 0.0 0.0 0.0
---------- ----------- ---------
Net Income (Loss) $ 138.0 $ (16.9) $ 154.9
========== =========== =========
Income (Loss) Per Share - Basic
Income (loss) from continuing operations $ 0.32 $ (0.04) $ 0.36
Cumulative effect of change in accounting principles 0.00 0.00 0.00
---------- ----------- ---------
$ 0.32 $ (0.04) $ 0.36
========== =========== =========
Average Number of Common Shares
Outstanding - Basic 431.8 431.8 431.8
========== =========== =========
Income (Loss) Per Share - Diluted
Income (loss) from continuing operations $ 0.31 $ (0.04) $ 0.35
Cumulative effect of change in accounting principles 0.00 0.00 0.00
---------- ----------- ---------
$ 0.31 $ (0.04) $ 0.35
========== =========== =========
Average Number of Common and Common
Equivalent Shares Outstanding - Diluted 437.5 437.5 437.5
========== =========== =========
Year Ended Dec. 31, 2001
--------------------------------------------
Impact of
As Charges &
(In millions, except per share amounts) Reported (a) Goodwill Pro Forma
- --------------------------------------- ------------ ----------- ----------
Net Sales $ 4,687.9 $ 0.0 $ 4,687.9
Cost of sales 2,539.0 28.2 2,510.8
---------- ----------- ---------
Gross Profit 2,148.9 (28.2) 2,177.1
Advertising and promotion expenses 543.5 0.3 543.2
Other selling and administrative expenses 936.1 1.5 934.6
Restructuring and other charges 15.7 15.7 0.0
Other expense, net 17.4 10.0 7.4
---------- ----------- ---------
Operating Income Before Amortization 636.2 (55.7) 691.9
Amortization of other intangibles 5.0 0.0 5.0
---------- ----------- ---------
Operating Income Before Amortization of Goodwill 631.2 (55.7) 686.9
Amortization of goodwill 46.1 46.1 0.0
---------- ----------- ---------
Operating Income 585.1 (101.8) 686.9
Interest expense 155.1 0.0 155.1
---------- ----------- ---------
Income (Loss) Before Income Taxes 430.0 (101.8) 531.8
Provision (benefit) for income taxes 119.1 (26.4) 145.5
---------- ----------- ---------
Income (Loss) From Continuing Operations 310.9 (75.4) 386.3
Cumulative effect of change in accounting principles,
net of tax (12.0) (12.0) 0.0
---------- ----------- ---------
Net Income (Loss) $ 298.9 $ (87.4) $ 386.3
========== =========== =========
Income (Loss) Per Share - Basic
Income (loss) from continuing operations $ 0.72 $ (0.18) $ 0.90
Cumulative effect of change in accounting principles (0.03) (0.03) 0.00
---------- ----------- ---------
$ 0.69 $ (0.21) $ 0.90
========== =========== =========
Average Number of Common Shares
Outstanding - Basic 431.0 431.0 431.0
========== =========== =========
Income (Loss) Per Share - Diluted
Income (loss) from continuing operations $ 0.71 $ (0.18) $ 0.89
Cumulative effect of change in accounting principles (0.03) (0.03) 0.00
---------- ----------- ---------
$ 0.68 $ (0.21) $ 0.89
========== =========== =========
Average Number of Common and Common
Equivalent Shares Outstanding - Diluted 436.2 436.2 436.2
========== =========== =========
(a) Reported in accordance with Generally Accepted Accounting Principles and
restated from previously reported amounts to reflect reclassifications for
the impact of EITF Issue No. 01-09, "Accounting for Consideration Given by
a Vender to a Customer."