Short answer
Mattel Inc (MAT) filed its fiscal 2015 10-K annual report with the SEC on Feb 25, 2016.
- Top risk flagged: Product-safety regulation: US and foreign safety standards, testing requirements, and recalls could increase costs or trigger sanctions
Mattel Inc FY2015 10-K analysis
AI summary of each section, grounded in the filing text
Business Overview
- Global toy maker selling branded play products through North America, International, and direct-to-consumer American Girl segments
- New Toy Box division with My Mini MixieQs and Vs. Spin Warriors launches emphasizing faster, more innovative product development
- Strategic reset toward growth and profitability, centered on core-brand franchises, toy leadership, supply chain, emerging markets, and cost improvement
- International sales 41% of worldwide gross sales, totaling $2,603.5 million in 2015
- Disney Princess license expired without renewal, despite $455.6 million in 2015 gross sales and renewed CARS 3 and Toy Story 4 agreements
Management Discussion & Analysis
- Net sales $5.70B, down 5% YoY reported, up 2% constant currency from $6.02B
- Operating margin 9.5% vs 10.9%; gross margin 49.2% vs 49.8%; operating income $540.9M vs $653.7M
- Best segment North America: sales $3.08B, up 2%; income $538.2M, up 17%
- Worst segment American Girl: sales $596.2M, down 8%; income $69.9M, down 38%
- Operating cash flow $734.6M; dividends $515.1M; no share repurchases; 2016 risks include Disney Princess loss and foreign exchange headwinds
Risk Factors
- Product-safety regulation: US and foreign safety standards, testing requirements, and recalls could increase costs or trigger sanctions
- China exposure: 43% of net sales international, with currency restrictions affecting the Chinese yuan and Venezuelan bolivar fuerte
- Supply chain: Manufacturing concentrated in China, Indonesia, Malaysia, and Thailand, exposing holiday deliveries to disruption
- Technology disruption: Tablets, mobile devices, video games, and sophisticated technology compete with traditional toys
- Customer concentration: Wal-Mart, Toys “R” Us, and Target represented approximately 37% of 2015 net sales
Generated from the filing text; verify against the original. How to read a 10-K
Other Mattel Inc annual reports
Ask about this 10-K
Compare years, dig into a risk factor or check the numbers against insider trades and fund holders.