-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, LN2eLirzoIX24C6Nl9OaVPBrjpf0bUvAzUqbjdoaYDMDX+3ues8N5vv9CvNvsOPq YmkYGKlwacXJsgTM54xZPQ== 0000063276-96-000031.txt : 19960718 0000063276-96-000031.hdr.sgml : 19960718 ACCESSION NUMBER: 0000063276-96-000031 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 19960717 ITEM INFORMATION: Other events ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 19960717 SROS: NYSE SROS: PSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: MATTEL INC /DE/ CENTRAL INDEX KEY: 0000063276 STANDARD INDUSTRIAL CLASSIFICATION: DOLLS & STUFFED TOYS [3942] IRS NUMBER: 951567322 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-05647 FILM NUMBER: 96595950 BUSINESS ADDRESS: STREET 1: 333 CONTINENTAL BLVD CITY: EL SEGUNDO STATE: CA ZIP: 90245 BUSINESS PHONE: 3102522000 8-K 1 PRESS RELEASE RE: INDEPENDENT INVESTIGATION SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K Current Report Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934 Date of Report: July 17, 1996 MATTEL, INC. ------------ (Exact name of registrant as specified in its charter) Delaware 001-05647 95-1567322 - ------------------------------------------------------------------------------ (State or other jurisdiction (Commission (I.R.S. Employer of incorporation) File No.) Identification No.) 333 Continental Boulevard, El Segundo, California 90245-5012 - ------------------------------------------------------------------------------ (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code (310) 252-2000 ---------------------------- N/A - ------------------------------------------------------------------------------ (Former name or former address, if changed since last report) Item 5. Other Events - ------- ------------ Mattel, Inc. hereby incorporates by reference herein a press release dated July 16, 1996, regarding the recently completed investigation of its accounting practices, a copy of which is included as Exhibit 99.1 attached hereto. Mattel, Inc. hereby incorporates by reference herein its press release dated July 16, 1996, regarding its response to the conclusions reached in connection with the investigation of its accounting practices, a copy of which is included as Exhibit 99.2 attached hereto. Item 7. Financial Statements and Exhibits - ------- --------------------------------- (a) Financial statements of businesses acquired: None (b) Pro forma financial information: None (c) Exhibits: 99.1 Press release dated July 16, 1996. 99.2 Press release dated July 16, 1996. SIGNATURES ---------- Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. MATTEL, INC. Registrant By: /s/ Leland P. Smith ----------------------------- Leland P. Smith Assistant General Counsel Date: July 17, 1996 and Assistant Secretary ------------- EX-99.1 2 PRESS RELEASE DATED JULY 16, 1996 EXHIBIT 99.1 FOR IMMEDIATE RELEASE CONTACT: David Kronfeld Kekst and Company (212) 593-2655 INDEPENDENT INVESTIGATION FINDS MATTEL'S PRACTICES CONSISTENT WITH GENERALLY ACCEPTED ACCOUNTING PRINCIPLES ---------------------------------------- New York, NY, July 16, 1996 -- On July 16, 1996, the Audit Committee of the Board of Directors of Mattel, Inc. received and accepted a report prepared by the law firm of Davis Polk & Wardwell concerning allegations of accounting irregularities at Mattel. Starting with Davis Polk's retention in early April 1996, Davis Polk, with the expert assistance of the accounting firm of Ernst & Young LLP, conducted an investigation into allegations raised by Michelle Greenwald, a former Senior Vice President at Mattel, who was terminated in July 1995. Greenwald's allegations of accounting irregularities fall into two categories - (1) general allegations that Mattel did not account properly for sales and certain costs associated with sales; and (2) more specific allegations that Mattel failed to account properly for certain royalty obligations to The Walt Disney Company. Davis Polk and Ernst & Young found no evidence that Mattel accounted for sales and costs associated with sales in a manner which is inconsistent with generally accepted accounting principles ("GAAP"). Davis Polk and Ernst & Young conducted a factual investigation and analysis of Mattel's policies and practices with respect to accounting for sales recognition, sales incentives, and customer-related costs. Davis Polk and Ernst & Young also investigated whether Mattel had entered into any consignment sales with customers. Davis Polk and Ernst & Young found that none of the issues raised by Greenwald concerning consignment sales or improper accounting treatment for sales and costs associated with sales is supported by the facts. With respect to the Disney royalty obligations, Davis Polk and Ernst & Young concluded that Mattel's accounting treatment for the Disney royalties represented a reasonable application of GAAP given the facts and circumstances as they existed at the time the accounting decisions were made. Davis Polk and Ernst & Young noted that the determination not to accrue for the royalties at issue was considered by Mattel with its outside auditor, Price Waterhouse, at the time the accounting decisions were made and that Price Waterhouse concurred with the Company's judgment. Furthermore, Davis Polk and Ernst & Young have concluded that the amount of royalties at issue is clearly immaterial to Mattel's earnings for fiscal year 1994. The Audit Committee will submit the report to the Board of Directors and considers the inquiry closed. EX-99.2 3 PRESS RELEASE DATED JULY 16, 1996 EXHIBIT 99.2 FOR IMMEDIATE RELEASE CONTACT: Glenn Bozarth July 16, 1996 Mattel, Inc. (310) 252-3521 MATTEL CHAIRMAN SAYS INDEPENDENT REVIEW HAS SET THE RECORD STRAIGHT --------------------------- LOS ANGELES, July 16 -- Mattel Chairman John W. Amerman said today that the recently completed independent review conducted by Davis Polk & Wardwell and Ernst & Young proves that allegations of accounting irregularities are wholly without merit. "The conclusion of this investigation shows that the company's accounting treatment of the transactions in question is in conformance with generally accepted accounting principles," Amerman said. "From the beginning of this process, we have stated that each and every allegation was entirely without merit. "We are very happy to set the record straight, and to get this issue behind us once and for all," Amerman said. "We can now turn all of our energies toward increasing Mattel's shareholder value." -###- -----END PRIVACY-ENHANCED MESSAGE-----