-----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, Im4ji71RnHTfcGUHdI5fQF1EDK9z0NOVFoDS9GS92fs+pqMQ1pl/YW6fJnVTB4UV GmZMQzg+ezoxAHIMYqo8QA== 0000063276-96-000028.txt : 19960701 0000063276-96-000028.hdr.sgml : 19960701 ACCESSION NUMBER: 0000063276-96-000028 CONFORMED SUBMISSION TYPE: 11-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19951231 FILED AS OF DATE: 19960628 SROS: NYSE SROS: PSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: MATTEL INC /DE/ CENTRAL INDEX KEY: 0000063276 STANDARD INDUSTRIAL CLASSIFICATION: GAMES, TOYS & CHILDREN'S VEHICLES (NO DOLLS & BICYCLES) [3944] IRS NUMBER: 951567322 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 11-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-05647 FILM NUMBER: 96588434 BUSINESS ADDRESS: STREET 1: 333 CONTINENTAL BLVD CITY: EL SEGUNDO STATE: CA ZIP: 90245 BUSINESS PHONE: 3102522000 11-K 1 MATTEL PIP 1995 11-K SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 11-K (Mark One) [X] Annual report pursuant to section 15(d) of the Securities Exchange Act of 1934 [Fee Required] for the fiscal year ended December 31, 1995. [_] Transition report pursuant to section 15(d) of the Securities Exchange Act of 1934 [No Fee Required] for the transition period from _________ to _________. Commission File Number 001-04777 - --------------------------------- A. Full title of the plan and the address of the plan, if different from that of the issuer named below: MATTEL, INC. PERSONAL INVESTMENT PLAN B. Name of issuer of the securities held pursuant to the plan and the address of its principal executive office: MATTEL, INC. 333 CONTINENTAL BOULEVARD EL SEGUNDO, CALIFORNIA 90245-5012 [Price Waterhouse LLP letterhead] REPORT OF INDEPENDENT ACCOUNTANTS --------------------------------- June 21, 1996 To the Plan Administrator and Participants of the Mattel, Inc. Personal Investment Plan In our opinion, the accompanying statements of net assets available for benefits with fund information and the related statements of changes in net assets available for benefits with fund information present fairly, in all material respects, the net assets available for benefits of the Mattel, Inc. Personal Investment Plan at December 31, 1995 and 1994, and the changes in net assets available for benefits for the years then ended, in conformity with generally accepted accounting principles. These financial statements are the responsibility of the plan's management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these statements in accordance with generally accepted auditing standards which require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for the opinion expressed above. Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The additional information included in Schedules I and V is presented for purposes of additional analysis and is not a required part of the basic financial statements but is additional information required by ERISA. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. /s/ Price Waterhouse LLP - ------------------------
MATTEL, INC. PERSONAL INVESTMENT PLAN STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS WITH FUND INFORMATION -------------------------------------------------------------------- DECEMBER 31, 1995 ----------------- Participant Directed ------------------------------------------------------------------------ Fixed Managed Equity Mattel Income Equity Index Stock Participant Account Account Account Account Loans ------------ ------------ ------------ ------------ ------------ ASSETS ------ Investments, at fair value (Notes 2 and 3): Stock index fund - - $ 24,309,000 - - Managed equity fund - $ 23,518,000 - - - Mattel stock fund - - - $ 8,291,000 - Participant loans receivable (Note 1) - - - - $ 6,671,000 ------------ ------------ ------------ ------------ ------------ - 23,518,000 24,309,000 8,291,000 6,671,000 Deposits with insurance companies, at contract value (Note 3) $113,633,000 - - - - ------------ ------------ ------------ ------------ ------------ Total investments 113,633,000 23,518,000 24,309,000 8,291,000 6,671,000 ------------ ------------ ------------ ------------ ------------ Cash and cash equivalents 4,276,000 - - 66,000 - ------------ ------------ ------------ ------------ ------------ Receivables: Accrued interest and dividends receivable 16,000 - - 16,000 - Contributions receivable (8,000) 2,000 15,000 3,000 - ------------ ------------ ------------ ------------ ------------ Total receivables 8,000 2,000 15,000 19,000 - ------------ ------------ ------------ ------------ ------------ Total net assets $117,917,000 $ 23,520,000 $ 24,324,000 $ 8,376,000 $ 6,671,000 ============ ============ ============ ============ ============ MATTEL, INC. PERSONAL INVESTMENT PLAN STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS WITH FUND INFORMATION - -------------------------------------------------------------------- DECEMBER 31, 1995 ----------------- Non- Participant Directed ------------ Clearing Account Total ------------ ------------ ASSETS ------ Investments, at fair value (Notes 2 and 3): Stock index fund - $ 24,309,000 Managed equity fund - 23,518,000 Mattel stock fund - 8,291,000 Participant loans receivable (Note 1) - 6,671,000 ------------ ------------ - 62,789,000 Deposits with insurance companies, at contract value (Note 3) - 113,633,000 ------------ ------------ Total investments - 176,422,000 ------------ ------------ Cash and cash equivalents $ 29,000 4,371,000 ------------ ------------ Receivables: Accrued interest and dividends receivable - 32,000 Contributions receivable - 12,000 ------------ ------------ Total receivables - 44,000 ------------ ------------ Total net assets $ 29,000 $180,837,000 ============ ============ The accompanying notes are an integral part of these financial statements.
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MATTEL, INC. PERSONAL INVESTMENT PLAN STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS WITH FUND INFORMATION -------------------------------------------------------------------- DECEMBER 31, 1994 ----------------- Participant Directed ------------------------------------------------------------------------ Fixed Managed Equity Mattel Income Equity Index Stock Participant Account Account Account Account Loans ------------ ------------ ------------ ------------ ------------ ASSETS ------ Investments, at fair value (Notes 2 and 3): Stock index fund - - $ 13,389,000 - - Managed equity fund - $ 13,293,000 - - - Mattel stock fund - - - $ 2,715,000 - Participant loans receivable (Note 1) - - - - $ 5,764,000 ------------ ------------ ------------ ------------ ------------ - 13,293,000 13,389,000 2,715,000 5,764,000 Deposits with insurance companies, at contract value (Note 3) $119,565,000 - - - - ------------ ------------ ------------ ------------ ------------ Total investments 119,565,000 13,293,000 13,389,000 2,715,000 5,764,000 ------------ ------------ ------------ ------------ ------------ Cash and cash equivalents 3,061,000 - - 110,000 - ------------ ------------ ------------ ------------ ------------ Receivables: Accrued interest and dividends receivable 12,000 - - 7,000 - Contributions receivable (47,000) - - 51,000 - ------------ ------------ ------------ ------------ ------------ Total receivables (35,000) - - 58,000 - ------------ ------------ ------------ ------------ ------------ Total net assets $122,591,000 $ 13,293,000 $ 13,389,000 $ 2,883,000 $ 5,764,000 ============ ============ ============ ============ ============ MATTEL, INC. PERSONAL INVESTMENT PLAN STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS WITH FUND INFORMATION - -------------------------------------------------------------------- DECEMBER 31, 1994 ----------------- Non- Participant Directed ------------ Clearing Account Total ------------ ------------ ASSETS ------ Investments, at fair value (Notes 2 and 3): Stock index fund - $ 13,389,000 Managed equity fund - 13,293,000 Mattel stock fund - 2,715,000 Participant loans receivable (Note 1) - 5,764,000 ------------ ------------ - 35,161,000 Deposits with insurance companies, at contract value (Note 3) - 119,565,000 ------------ ------------ Total investments - 154,726,000 ------------ ------------ Cash and cash equivalents $ 159,000 3,330,000 ------------ ------------ Receivables: Accrued interest and dividends receivable - 19,000 Contributions receivable - 4,000 ------------ ------------ Total receivables - 23,000 ------------ ------------ Total net assets $ 159,000 $158,079,000 ============ ============ The accompanying notes are an integral part of these financial statements.
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MATTEL, INC. PERSONAL INVESTMENT PLAN STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS WITH FUND INFORMATION FOR THE YEAR ENDED DECEMBER 31, 1995 ------------------------------------ Participant Directed --------------------------------------------------------------------- Fixed Managed Equity Mattel Income Equity Index Stock Participant Account Account Account Account Loans ------------ ----------- ----------- ---------- ------------ Investment income: Interest $ 7,844,000 - - $ 7,000 $ 450,000 Dividends - $ 64,000 - 52,000 - Net appreciation in fair value of investments (Note 3) - 5,696,000 $ 5,618,000 2,167,000 - Contributions: Employer 5,348,000 1,324,000 1,187,000 495,000 - Employee 7,497,000 2,296,000 2,153,000 1,003,000 - Fund transfers (8,797,000) 2,296,000 3,896,000 1,985,000 665,000 Benefit payments (16,566,000) (1,449,000) (1,919,000) (216,000) (208,000) ------------ ----------- ----------- ---------- ------------ (Decrease)/increase in net assets available for benefits (4,674,000) 10,227,000 10,935,000 5,493,000 907,000 ------------ ----------- ----------- ---------- ------------ Net assets available for benefits: Beginning of year 122,591,000 13,293,000 13,389,000 2,883,000 5,764,000 ------------ ----------- ----------- ---------- ------------ End of year $117,917,000 $23,520,000 $24,324,000 $8,376,000 $ 6,671,000 ============ =========== =========== ========== ============ MATTEL, INC. PERSONAL INVESTMENT PLAN STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS WITH FUND INFORMATION FOR THE YEAR ENDED DECEMBER 31, 1995 ------------------------------------ Non- Participant Directed ------------ Clearing Account Total ------------ ------------- Investment income: Interest $ 11,000 $ 8,312,000 (a) Dividends - 116,000 Net appreciation in fair value of investments (Note 3) 6,000 13,487,000 Contributions: Employer 24,000 8,378,000 Employee (37,000) 12,912,000 (a) Fund transfers (45,000) - Benefit payments (89,000) (20,447,000) ------------ ------------ (Decrease)/increase in net assets available for benefits (130,000) 22,758,000 ------------ ------------ Net assets available for benefits: Beginning of year 159,000 158,079,000 ------------ ------------ End of year $ 29,000 $180,837,000 ============ ============ (a) Interest income related to participant loans of $450,000 was reclassified from employee contributions to interest income. The accompanying notes are an integral part of these financial statements.
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MATTEL, INC. PERSONAL INVESTMENT PLAN STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS WITH FUND INFORMATION FOR THE YEAR ENDED DECEMBER 31, 1994 ------------------------------------ Participant Directed --------------------------------------------------------------------- Fixed Managed Equity Mattel Income Equity Index Stock Participant Account Account Account Account Loans ------------ ----------- ----------- ---------- ------------ Investment income: Interest $ 7,803,000 - - $ 3,000 $ 384,000 Dividends - - - 21,000 - Net appreciation (depreciation) in fair value of investments (Note 3) - $ (424,000) $ 154,000 17,000 - Contributions: Employer 5,004,000 1,092,000 969,000 289,000 - Employee 5,655,000 1,465,000 1,265,000 410,000 - Fund transfers (2,425,000) 186,000 558,000 897,000 784,000 Benefit payments (7,767,000) (1,043,000) (805,000) (175,000) (164,000) ------------ ----------- ----------- ---------- ------------ Increase in net assets available for benefits 8,270,000 1,276,000 2,141,000 1,462,000 1,004,000 ------------ ----------- ----------- ---------- ------------ Net assets available for benefits: Beginning of year 114,321,000 12,017,000 11,248,000 1,421,000 4,760,000 ------------ ----------- ----------- ---------- ------------ End of year $122,591,000 $13,293,000 $13,389,000 $2,883,000 $ 5,764,000 ============ =========== =========== ========== ============ MATTEL, INC. PERSONAL INVESTMENT PLAN STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS WITH FUND INFORMATION FOR THE YEAR ENDED DECEMBER 31, 1994 ------------------------------------ Non- Participant Directed ------------ Clearing Account Total ------------ ------------- Investment income: Interest $ 3,000 $ 8,193,000 (a) Dividends - 21,000 Net appreciation (depreciation) in fair value of investments (Note 3) - (253,000) Contributions: Employer (4,000) 7,350,000 Employee (16,000) 8,779,000 (a) Fund transfers 7,000 7,000 Benefit payments 169,000 (9,785,000) ------------ ------------ Increase in net assets available for benefits 159,000 14,312,000 ------------ ------------ Net assets available for benefits: Beginning of year - 143,767,000 ------------ ------------ End of year $ 159,000 $158,079,000 ============ ============ (a) Interest income related to participant loans of $384,000 was reclassified from employee contributions to interest income. The accompanying notes are an integral part of these financial statements.
-5- MATTEL, INC. PERSONAL INVESTMENT PLAN NOTES TO FINANCIAL STATEMENTS ----------------------------- NOTE 1 - GENERAL DESCRIPTION OF THE PLAN: - ----------------------------------------- The following description of the Mattel, Inc. (the "Company") Personal Investment Plan (the "Plan") provides only general information. Participants should refer to the Plan agreement for a more complete description of the Plan's provisions. General - ------- Established November 1, 1983, the Plan is a contributory thrift savings form of a defined contribution plan covering all nonunion employees of the Company and certain subsidiaries of Mattel, Inc. The Plan is administered by the Company under the direction of the Pension Committee of the Board of Directors of the Company. Plan assets at December 31, 1995 were held by The Northern Trust Company (the "Trustee") under the direction of the Pension Committee. There were approximately 3,783 participants in the Plan as of December 31, 1995. In 1989, the Plan was amended retroactive to January 1, 1987 in order to comply with rules and regulations set forth in the Tax Reform Act of 1986. In August 1992, the Plan was amended to provide to participants the option to invest in Mattel common stock as a fourth investment alternative. Effective in January 1993, the Plan was amended and restated to reflect technical provisions as required by the Unemployment Compensation Amendments of 1992 to the Internal Revenue Code of 1986 relating to direct rollovers between qualified plans and mandatory withholding rules, and to adjust the provisions relating to the voting of stock in the Mattel stock fund. There were four technical amendments made to the Plan during the current year which had no impact on the financial statements. Contributions - ------------- The Company makes automatic contributions ranging from 2 percent to 7 percent of compensation based upon covered participants' ages, regardless of whether the employees elect to personally contribute to the Plan. The Company will match 100 percent of the first 2 percent of compensation contributed by an employee and 50 percent of the next 4 percent. In addition, each employee may contribute up to an additional 9 percent of compensation, with no matching contribution by the Company. Participants are permitted to direct all contributions made to the Plan into one or more of four separate investment funds: a fixed income account, a managed equity account, an equity index account and the Mattel stock account. Participants may change their investment options twice each quarter. Participants can invest a maximum of 25 percent of their current contributions in the Mattel stock fund. In addition, participants cannot transfer more than 25 percent of their account balance to the Mattel stock fund. -6- NOTE 1: (Continued) - ------ Vesting - ------- Each participant hired prior to July 1, 1989 has a 100 percent vested interest in all contributions and earnings in his or her account, including the Company's matching contributions. Each participant hired after July 1, 1989 is immediately vested in their contributions plus actual earnings thereon. Vesting in the Company's matching and discretionary contribution portion of the participant's account plus actual earnings thereon is based on years of continuous service. Participants become 25 percent vested after two years of credited service and vest an additional 25 percent for each additional year of service through the fifth year at which time 100 percent vesting occurs. Participant Loans Receivable - ---------------------------- Participants may borrow from their accounts from a minimum of $2,000 to a maximum equal to the lesser of $50,000 or 50 percent of their vested account balance. Loan terms range from 1-5 years or up to 15 years for the purchase of a primary residence. The loans are secured by the balance in the participant's account and bear interest at the prime rate plus one percent set at the beginning of the month in which the loan is granted. The interest rate is set for the duration of the loan. As of December 31, 1995, interest rates on loans outstanding ranged from 7 percent to 11 percent. Principal and interest are paid ratably through payroll deductions. In addition, funds may be withdrawn by participants prior to retirement under limited circumstances, subject to restrictions as defined by the Plan. Participant Accounts - -------------------- Each participant's account is credited with the participant's contribution and allocations of (a) the Company's contribution and (b) Plan earnings. Allocations are made based on the fund allocation percentages used for the employees' contributions. Forfeited balances of terminated participants' nonvested accounts are used to reduce future Company contributions. The benefit to which a participant is entitled is the benefit that can be provided from the participant's vested account. Payment of Benefits - ------------------- Upon termination of service due to death, disability, retirement or other reasons, a participant or beneficiary may receive a lump-sum amount equal to the value of the participant's vested interest in his or her account. Participants automatically become 100 percent vested in their account balance if their termination is due to total disability or retirement. Expenses of the Plan - -------------------- Expenses incurred in the administration of the Plan are paid by the Company. -7- NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: - ---------------------------------------------------- Basis of Accounting - ------------------- The financial statements of the Plan are prepared using the accrual basis of accounting. Valuation of Investments - ------------------------ Investments are presented in the accompanying statements of net assets available for benefits at their fair value. Investments held in the managed equity fund, equity index fund and Mattel stock fund are valued using quoted market prices. Investments in the fixed income fund, made primarily pursuant to guaranteed investment contracts, are valued at contract value as determined by the insurance companies. Contract value represents contributions made under a guaranteed investment contract, plus interest at the contract rate, less administrative expenses charged by the insurance company. Participant loans receivable are valued at cost which approximates fair value. Contributions - ------------- Contributions from Plan participants are recorded in the period in which the Company makes payroll deductions from the employee's compensation. The Company's matching contributions are recorded in the period corresponding with the employee contributions. Employee rollover contributions are included as Employee Contributions in the financial statements. Income Recognition - ------------------ In accordance with the policy of presenting investments at current fair value, the net appreciation or depreciation in the fair value of investments during the period is reflected in the statement of changes in net assets available for benefits. Such net appreciation or depreciation in current fair value includes realized gains and losses on dispositions of securities during the period. Securities transactions are recorded on a trade date basis. Interest income is recorded as earned on an accrual basis. Dividend income is recorded on the ex-dividend date. Payment of Benefits - ------------------- Benefits payable to former employees are recorded in the period in which payment occurs. -8- NOTE 3 - INVESTMENTS: - --------------------- The fair value of investments held by the Trustee at December 31, 1995 and 1994 is summarized in the following table:
December 31, December 31, 1995 1994 ------------ ------------ Investments at contract value - ----------------------------- (Issuer/Contract Number) - ------------------------ All America Life Insurance Co. GA-92121-A-1 $ 1,667,000 $ - GA-92121-A-2 1,667,000 - GA-92121-A-3 1,112,000 - GA-92121-A-4 2,224,000 - Allstate Life Insurance Co. GA 4900 - 1,522,000 GA 5048 - 1,413,000 GA 5117 1,476,000 1,363,000 GA 5199 2,072,000 1,921,000 GA 5256 1,319,000 1,228,000 GA 5304 1,318,000 1,223,000 GA 5395 2,473,000 2,311,000 Canada Life Assurance Co. P 45354 - 1,048,000 Commonwealth Life Assurance Co. 00040TR - 3,170,000 00040TR2 - 4,991,000 00593FR 1,121,000 2,099,000 ADA 153TR 2,668,000 - ADA 153TR2 5,001,000 - Confederation Life Insurance Co. 62002 528,000 528,000 62003 528,000 528,000 62571 1,061,000 1,061,000 62572 1,056,000 1,056,000 62624 1,202,000 1,202,000 Crown Life Insurance Co. GACR - 9003541 - 515,000 -9- NOTE 3: (Continued) - ------ December 31, December 31, 1995 1994 ------------ ------------ Hartford Life Insurance Co. GA - 8943 $ - $ 1,483,000 GA - 9780 1,092,000 1,044,000 GA - 9781 1,107,000 1,052,000 GA - 9925 4,510,000 4,209,000 GA - 10148 4,408,000 4,109,000 John Hancock Life Insurance Co. GAC - 6111 2,631,000 2,458,000 GAC - 7166 1,117,000 2,128,000 GAC - 7188 1,114,000 1,062,000 Lehman Brothers 06530394G 2,510,000 2,510,000 04972095G 4,562,000 - Life of Virginia GS - 2744 1,105,000 2,114,000 GS - 2725 4,571,000 4,331,000 Mutual Benefit Life Insurance Co. 2565 1,236,000 1,211,000 Nationwide Life Insurance Co. 5015 1,672,000 1,549,000 New York Life GA - 6830 3,370,000 3,204,000 GA - 6830-2 2,814,000 2,673,000 GA - 6830-3 2,238,000 2,115,000 GA - 06830-004 1,638,000 1,514,000 Northwestern National Life Insurance Co. 21815-4 3,006,000 4,156,000 Ohio National Life Insurance Co. GA 5084-2 - 766,000 GA 5462 644,000 600,000 GA 5376 1,371,000 1,272,000 GA 5463 644,000 600,000 -10- NOTE 3: (Continued) - ------ December 31, December 31, 1995 1994 ------------ ------------ Penn Mutual Life Insurance Co. 91084 $ - $ 551,000 91139 1,505,000 2,773,000 Principal Mutual Life Insurance Co. GA 4749 1,626,000 1,513,000 GA 4749-2 1,339,000 1,239,000 GA 4749-3 1,341,000 1,241,000 GA 4749-4 3,636,000 3,427,000 Protective Life Insurance Co. GA 333 - 1,525,000 GA 571 1,047,000 1,047,000 GA 602 1,536,000 1,537,000 Provident National Life Assurance Co. 027-04668 - 893,000 Prudential Life GA-7773-211 6,451,000 8,157,000 GA-7773-212 1,112,000 1,051,000 Safeco Life Insurance Co. 1051603-01 2,058,000 - State Mutual Life Assurance Co. GA-92121-A-1 - 1,577,000 GA-92121-A-2 - 1,577,000 GA-92121-A-3 - 1,039,000 GA-92121-A-4 - 2,078,000 Sun Life Assurance Co. of Canada S0658G 3,023,000 2,782,000 S0749G 1,340,000 1,248,000 S0781G 1,318,000 1,223,000 S0787G 2,338,000 2,175,000 S0860G 2,342,000 2,213,000 S0860G 2,342,000 2,212,000 The Travelers Life Insurance Co. GR 15744 1,950,000 1,792,000 GR 15862 1,476,000 1,356,000 ------------ ------------ Total guaranteed investment contracts 113,633,000 119,565,000 ------------ ------------ -11- NOTE 3: (Continued) - ------ December 31, December 31, 1995 1994 ------------ ------------ Investment Funds: Wells Fargo Bank Index Fund $ 24,309,000 $ 13,389,000 Warburg Pincus/Counsellors Capital Appreciation Fund 23,518,000 13,293,000 Mattel Stock Fund 8,291,000 2,715,000 ------------ ------------ Total investment funds 56,118,000 29,397,000 Participant loans receivable 6,671,000 5,764,000 ------------ ------------ Total investments $176,422,000 $154,726,000 ============ ============
During the years ended December 31, 1995 and 1994, the Plan's investments, including investments bought and sold as well as those held during the year, appreciated/(depreciated) in value as follows:
December 31, December 31, 1995 1994 ------------ ------------ Fixed Income Account $ - $ - Wells Fargo Bank Index Fund 5,618,000 154,000 Warburg Pincus/Counsellors Capital Appreciation Fund 5,696,000 (424,000) Mattel Stock Fund 2,167,000 17,000 Mattel Clearing Account 6,000 - ------------ ------------ $ 13,487,000 $ (253,000) ============ ============
A portion of the Plan's assets has been invested in guaranteed investment contracts with various insurance companies. These contracts provide a minimum guaranteed annual return on investment with rates ranging from 3.50 percent to 8.85 percent. The Plan administrator has directed the Trustee to invest any excess cash balances in The Northern Trust COLTV Short Term Investment Fund, which is a diversified portfolio of short-term investment securities. -12- NOTE 4 - PLAN OBLIGATIONS: - -------------------------- The following is a reconciliation of net assets available for benefits per the financial statements to the Form 5500:
December 31, December 31, 1995 1994 ------------ ------------ Net assets available for benefits per the financial statements $180,837,000 $158,079,000 Amounts allocated to withdrawing participants (29,000) (159,000) Other - 6,000 ------------ ------------ Net assets available for benefits per the Form 5500 $180,808,000 $157,926,000 ============ ============
The following is a reconciliation of benefits paid to participants per the financial statements to the Form 5500:
December 31, December 31, 1995 1994 ------------ ------------ Benefits paid to participants per the financial statements $ 20,447,000 $ 9,785,000 Add: Amounts allocated to withdrawing participants at current year end 29,000 159,000 Less: Amounts allocated to withdrawing participants at prior year end (159,000) (972,000) ------------ ------------ Benefits paid to participants per the Form 5500 $ 20,317,000 $ 8,972,000 ============ ============
Amounts allocated to withdrawing participants are recorded in the Form 5500 for benefit claims that have been processed and approved for payment prior to December 31 but not yet paid as of that date. NOTE 5 - TAX STATUS OF THE PLAN: - -------------------------------- The Plan administrator has received a determination letter from the Internal Revenue Service which confirmed the qualified and tax-exempt status of the Plan and of the Plan Amendments through May 1, 1995. Therefore, no provision for federal or state income tax has been made. NOTE 6 -PLAN TERMINATION: - ------------------------- The Company anticipates that the Plan will continue without interruption, but reserves the right to discontinue the Plan. In the event such discontinuance results in the termination of the Plan, participants shall be entitled to receive their account balance. -13-
SCHEDULE I ---------- Page 1 of 3 MATTEL, INC. PERSONAL INVESTMENT PLAN ITEM 27a - ASSETS HELD FOR INVESTMENT AT DECEMBER 31, 1995 ---------------------------------------------------------- Description Investment Funds of Investment Cost Current Value - ---------------------------- --------------- ------------ ------------- Wells Fargo Bank Index Fund Stock Index Fund $ 18,847,000 $ 24,309,000 Warburg Pincus/Counsellors Managed Equity Capital Appreciation Fund* Fund 20,689,000 23,518,000 Mattel Stock Fund* Stock Fund 5,852,000 8,291,000 ------------ ------------- Total investment funds 45,388,000 56,118,000 Participant Loans Receivable Interest Rates: - ---------------------------- 7%-11% Maturity Dates: 1-15 years - 6,671,000 ------------ ------------- 45,388,000 62,789,000 ------------ ------------- Guaranteed Investment Contracts Contract Number Cost Contract Value - ------------------------------------ --------------- ------------ -------------- (Issuer/Rate/Maturity) All America Life Insurance Co. 5.76% 03/26/98 GA 92121 A1 $ 1,667,000 $ 1,667,000 5.76% 02/09/99 GA 92121 A2 1,667,000 1,667,000 7.05% None GA 92121 A3 1,112,000 1,112,000 7.05% 07/07/99 GA 92121 A4 2,224,000 2,224,000 Allstate Life Insurance Co. 8.30% 05/10/96 GA 5117 1,476,000 1,476,000 7.83% 09/02/96 GA 5199 2,072,000 2,072,000 7.37% 02/05/97 GA 5256 1,319,000 1,319,000 7.76% 04/23/97 GA 5304 1,318,000 1,318,000 7.00% 11/12/97 GA 5395 2,473,000 2,473,000 Commonwealth Life Assurance Co. 6.173% 11/25/97 ADA 153TR 2,668,000 2,668,000 5.065% 07/15/97 ADA 153TR2 5,001,000 5,001,000 6.78% 04/07/99 00593FR 1,121,000 1,121,000 Confederation Life Insurance Co. (a) 0.00% 01/02/95 62002 528,000 528,000 0.00% 01/04/95 62003 528,000 528,000 0.00% 11/08/96 62571 1,061,000 1,061,000 0.00% 12/02/97 62572 1,056,000 1,056,000 0.00% 02/21/97 62624 1,202,000 1,202,000 * Party-in-interest (a) Company is currently in rehabilitation and has suspended accruing interest on its contracts. Contract value may not equal the value realized upon completion of rehabilitation. -14- SCHEDULE I ---------- Page 2 of 3 MATTEL, INC. PERSONAL INVESTMENT PLAN ITEM 27a - ASSETS HELD FOR INVESTMENT AT DECEMBER 31, 1995 (Continued) ---------------------------------------------------------- Contract Number Cost Contract Value --------------- ------------ -------------- Hartford Life Insurance Co. 4.51% 07/01/96 GA-9780 $ 1,092,000 $ 1,092,000 5.23% 01/04/99 GA-9781 1,107,000 1,107,000 7.17% 05/07/99 GA-9925 4,510,000 4,510,000 7.28% 08/04/99 GA-10148 4,408,000 4,408,000 John Hancock Life Insurance Co. 7.05% 01/02/97 GAC-6111 2,631,000 2,631,000 4.92% 09/30/98 GAC-7166 1,117,000 1,117,000 4.94% 10/01/98 GAC-7188 1,114,000 1,114,000 Lehman Brothers 7.57% 12/12/99 06530394G 2,510,000 2,510,000 7.13% 04/20/00 04972095G 4,562,000 4,562,000 Life of Virginia 4.57% 07/01/97 GS-2744 1,105,000 1,105,000 5.55% 07/13/98 GS-2725 4,571,000 4,571,000 Mutual Benefit Life Insurance Co. 3.50% 01/02/04 2565 1,236,000 1,236,000 Nationwide Life Insurance Co. 7.92% 08/26/96 5015 1,672,000 1,672,000 New York Life 5.2% 08/31/98 GA-6830 3,370,000 3,370,000 5.3% 10/15/98 GA-6830-2 2,814,000 2,814,000 5.8% 01/29/99 GA-6830-3 2,238,000 2,238,000 8.2% 11/17/99 GA-06830-004 1,638,000 1,638,000 Northwestern Nat'l Life Insurance 8.5% 02/02/96 21815-4 3,006,000 3,006,000 Ohio National Life Insurance Co. 7.33% 06/04/96 GA 5462 644,000 644,000 7.73% 11/02/96 GA 5376 1,371,000 1,371,000 7.33% 07/03/97 GA 5463 644,000 644,000 Penn Mutual Life Insurance Co. 8.56% 03/08/96 91139 1,505,000 1,505,000 -15- SCHEDULE I ---------- Page 3 of 3 MATTEL, INC. PERSONAL INVESTMENT PLAN ITEM 27a - ASSETS HELD FOR INVESTMENT AT DECEMBER 31, 1995 (Continued) ---------------------------------------------------------- Contract Number Cost Contract Value --------------- ------------ -------------- Principal Mutual Life Insurance Co. 7.5% 11/18/96 GA 4749 $ 1,626,000 $ 1,626,000 8.05% 03/25/97 GA 4749-2 1,339,000 1,339,000 8.1% 04/26/97 GA 4749-3 1,341,000 1,341,000 6.1% 09/10/97 GA 4749-4 3,636,000 3,636,000 Protective Life Insurance Co. 8.83% 06/16/96 GA 571 1,047,000 1,047,000 8.02% 10/10/96 GA 602 1,536,000 1,536,000 Prudential Life 5.44% 12/30/98 GA-7773-211 6,451,000 6,451,000 5.83% 02/16/99 GA-7773-212 1,112,000 1,112,000 Safeco Life Insurance Co. 6.4% 06/16/00 1051603-01 2,058,000 2,058,000 Sun Life Assurance Co. of Canada 8.67% 04/11/96 S0658G 3,023,000 3,023,000 7.38% 01/20/97 S0749G 1,340,000 1,340,000 7.50% 06/01/97 S0781G 1,318,000 1,318,000 7.5% 06/01/97 S0787G 2,338,000 2,338,000 5.82% 03/18/98 S0860G 2,342,000 2,342,000 5.85% 04/23/98 S0860G 2,342,000 2,342,000 The Travelers Life Insurance Co. 8.85% 07/01/96 GR15744 1,950,000 1,950,000 8.8% 09/30/96 GR15862 1,476,000 1,476,000 ------------ ------------- Total guaranteed investment contracts 113,633,000 113,633,000 ------------ ------------- Total investments $159,021,000 $ 176,422,000 ============ =============
-16-
SCHEDULE V ---------- MATTEL, INC. PERSONAL INVESTMENT PLAN ITEM 27d - SCHEDULE OF TRANSACTIONS IN EXCESS OF 5% OF CURRENT VALUE OF PLAN ASSETS FOR THE YEAR ENDED DECEMBER 31, 1995 (1) ------------------------------------------------------------- Description Purchase Party Involved of Asset Price Transactions - -------------------- ------------ ----------- ------------ The Northern Trust * COLTV Short $64,931,000 320 Term Invest- ment Fund The Northern Trust * Wells Fargo $ 8,457,000 146 Equity Index Fund The Northern Trust * Warburg Pin- $10,142,000 143 cus/Counsel- lors Capital Appreciation Fund SCHEDULE V ---------- MATTEL, INC. PERSONAL INVESTMENT PLAN ITEM 27d - SCHEDULE OF TRANSACTIONS IN EXCESS OF 5% OF CURRENT VALUE OF PLAN ASSETS FOR THE YEAR ENDED DECEMBER 31, 1995 (1) ------------------------------------------------------------- Current Value of Asset on Description Selling Cost of Transaction Party Involved of Asset Price Transactions Asset Date Net Gain - -------------------- ------------ ----------- ------------ ----------- ------------ ----------- The Northern Trust * COLTV Short $63,891,000 356 $63,891,000 $ 63,891,000 -0- Term Invest- ment Fund The Northern Trust * Wells Fargo $ 3,141,000 76 $ 2,716,000 $ 3,141,000 $ 425,000 Equity Index Fund The Northern Trust * Warburg Pin- $ 2,869,000 83 $ 2,491,000 $ 2,869,000 $ 378,000 cus/Counsel- lors Capital Appreciation Fund * Party-in-interest (1) Computed based on the net asset value of the Plan at December 31, 1994 of $158,079,000. Prepared from data certified by The Northern Trust.
-17- POWER OF ATTORNEY ----------------- We, the undersigned members of the Committee designated to administer the Mattel, Inc. Personal Investment Plan, do hereby severally constitute and appoint Ned Mansour, Leland P. Smith and John L. Vogelstein, and each of them, our true and lawful attorneys and agents, to do any and all acts and things in our name and behalf in our capacities as members of said Committee and to execute any and all instruments for us and in our names in the capacities indicated below, which said attorneys and agents, or any of them, may deem necessary or advisable to enable said Plan to comply with the Securities Exchange Act of 1934, as amended, and any rules, regulations and requirements of the Securities and Exchange Commission, in connection with this Annual Report on Form 11-K, including specifically, but without limitation, power and authority to sign for us or any of us, in our names in the capacities indicated below, any and all amendments hereto; and we do each hereby ratify and confirm all that said attorneys and agents or any one of them, shall do or cause to be done by virtue hereof. Pursuant to the requirements of the Securities Exchange Act of 1934, the members of the Committee designated to administer the Mattel, Inc. Personal Investment Plan have duly caused this Annual Report on Form 11-K to be signed on behalf of the Plan by the undersigned, thereunto duly authorized in the City of El Segundo, State of California, on June 28, 1996. MATTEL, INC. PERSONAL INVESTMENT PLAN --------------------- (Name of Plan) By: /s/ Harold Brown ---------------- Harold Brown By: /s/ Edward H. Malone -------------------- Edward H. Malone By: /s/ Edward N. Ney ----------------- Edward N. Ney EX-23.0 2 ACCOUNTANTS CONSENT EXHIBIT - 23.0 Consent of Independent Accountants ---------------------------------- We hereby consent to the incorporation by reference in this Registration Statement on Form S-8 (No. 33-51454) of Mattel, Inc. of our report dated June 21, 1996, appearing on page 1 of this Form 11-K. /s/ Price Waterhouse LLP - ------------------------ June 28, 1996 Los Angeles, California -----END PRIVACY-ENHANCED MESSAGE-----