What’s Next for Mattel? I’ve heard that question quite a few times as our company has In our Wheels business, both Hot Wheels® and Matchbox® worked to weather uncertain economic times and strengthen experienced strong global performance, and we saw growth operations while also creating toys that are relevant to the way in core games brands like UNO® and Apples to Apples.® today’s children play. Last year, I said companies that deliver We also introduced an exciting new game, Mindfl ex,™ which improved execution during the tough times will be the ones best was an early sell-out and ultimately one of the hottest toys positioned to capitalize on the economic turnaround, which of the year. Our Fisher-Price® BabyGear™ line experienced will most certainly occur. I also made some commitments to double-digit growth for the holiday season. And unlike many you, the shareholders of Mattel: to run the business well and premium-priced products facing the current economic responsibly, reward investors and make kids’ lives fun. environment, American Girl® held its own through continued exemplary brand development. Looking back, I am proud of how well Mattel’s employees delivered on our promises. As expected, sales were down We also experienced success with our partners and another due to retailer inventory management, our lack of toys tied to year of outstanding performance in our Disney Princess™ line. movie properties compared to prior years and the effect of The Disney®/Pixar® relaunch of the Toy Story® franchise in foreign exchange rates. That said, we succeeded in improving Fall 2009 drove performance with our Toy Story® line of toys execution across the supply chain and throughout the company and Disney/Pixar’s Cars® had another strong year further by realigning our structure; controlling costs and expenses; establishing it as an evergreen brand. tightly managing working capital, especially inventories; and reducing capital spending by doing only business-critical And even though 2009 was a year of sacrifi ce and hard work projects and doing them exceptionally well. for Mattel employees, I am extremely proud that, for the third consecutive year, FORTUNE Magazine named Mattel to its The result was improved profi tability, a stronger balance sheet “100 Best Companies to Work For” list. and improved cash fl ow, which we used to lower debt, increase cash balances and continue to reward shareholders We published our third Global Citizenship Report, which through our strong annual dividend. focused on our efforts to create safe, high-quality products and to manufacture them in a responsible and ethical manner We also were successful in bringing magic to the lives of while managing our environmental impact. I am also pleased to children through innovative new toys, including the continued share that Mattel was again named to the “100 Best Corporate revitalization of some of our classic and time-honored brands, Citizens” list by Corporate Responsibility Magazine. such as Barbie® and Hot Wheels.® The year 2010 is a personal milestone for me – May 17 marks Last year, we celebrated the 50th anniversary of the world’s my 10-year anniversary with Mattel. I joined the company during most iconic doll – and the world celebrated with us. This some tough times and in the midst of change. On my fi rst day, incredible milestone for the Barbie® brand allowed us a unique I told Mattel employees gathered in the company’s cafeteria that platform to reconnect girls of all ages with the legacy of we were going to do three things: build brands, cut costs and the brand: fashion, aspiration and cultural relevance. develop people. We’ve made good progress on all three fronts. So after 10 years, what investors and employees ask me most Boys of all ages can now take their Hot Wheels® radio control often is “What’s next for Mattel?” Let me start with where we vehicles anywhere with the new Hot Wheels® R/C Stealth Rides. have been. In 2000, the senior management team created a About the size of a deck of cards, these fully functioning radio vision for the company to be: “The World’s Premier Toy Brands – control vehicles fold fl at to fi t in a very thin carrying case that Today and Tomorrow.” In the context of what’s next, we doubles as the control for the vehicle. challenged our thinking around the vision itself. To encourage girls to play outdoors, American Girl® introduces In 2010, we are launching a new guiding vision for the company: Lanie™, the 2010 Girl of the Year®, a thoughtful, energetic girl “Creating the Future of Play.” who discovers the world in her own backyard. Available for only one year, Lanie™ launched with two books that tell her story. At Mattel, we are the imaginations behind some of the most recognized and best-loved products around the world. But I This year, Mattel has partnered with the biggest names in kids’ will let you in on a secret: we don’t just make toys. We create entertainment from Disney® and Pixar® to World Wrestling emotional connections that last a lifetime by encouraging children Entertainment (WWE®) and Thomas & Friends™, developing to stretch their imaginations, creating joy and allowing children innovative toys that evoke creativity, foster role play and to become lost in play. That’s the real value of our toys. continue storylines off-screen and onto living room fl oors. That’s the value of play. So with our new vision in mind, what’s next in the world of play? Creating the future of play is evolution. Our goal is to build on the progress we’ve made and to push ourselves to achieve First, we believe in reinventing favorites while creating new more. That’s consistent with our 2010 goals: we will capitalize products and play opportunities to captivate generations on opportunities to increase revenues by continuing core brand to come. After a year-long celebration of 50 years of Barbie® performance while maximizing the opportunities surrounding as a fashion icon, 2010 is about reclaiming the Barbie® brand’s our new entertainment properties (WWE®, Toy Story® 3 and heritage as an inspiration to girls of all ages. Thomas & Friends™); maintain cost and expense controls; and deliver another strong year of profi ts and cash fl ow. This year, Barbie® celebrates another milestone – her 125th career and kicks off the global “I Can Be…™” campaign. For the We believe in the value of play – the possibilities it creates and fi rst time ever, consumers around the world helped select the the joy that it brings. At Mattel, we have the unique opportunity next career. With more than a half-million votes counted, her to work at the intersection of what is enduring and what is 125th career was selected by girls around the world and is innovative. When we do this, there are no limits to what we a News Anchor. But consumers of all ages and both genders can invent and the joy we can create. loudly campaigned for another Barbie® career. Therefore, we’re also launching Computer Engineer Barbie®, debuting in Winter 2010, to inspire a new generation of girls to explore this important high-tech career. Innovation can redefi ne what it is to play and what makes something a toy. Adding a new twist to today’s play experiences, our innovative engineering team is transforming small toys into sophisticated gadgets that bring a new dimension to how boys and girls play today. One of my favorite examples is the Fisher-Price® iXL™ learning system, a child’s portable window to a whole new world of learning and entertainment, featuring six applications: Story Book, Game Player, Note Book, Art Studio, Music Player and Photo Album. Chairman of the Board and Chief Executive Offi cer To learn more about Mattel and our family of brands, visit http://corporate.mattel.com for an interactive message from Bob Eckert. MATTEL, INC. FORM 10-K 2009 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) È ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2009 or ‘ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 001-05647 MATTEL, INC. (Exact name of registrant as specified in its charter) Delaware 95-1567322 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.) 333 Continental Blvd. El Segundo, CA 90245-5012 (Address of principal executive offices) (310) 252-2000 (Registrant’s telephone number) Securities registered pursuant to Section 12(b) of the Act: Title of each class Name of each exchange on which registered Common Stock, $1.00 par value The NASDAQ Global Select Market Securities registered pursuant to Section 12(g) of the Act: NONE Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes È No ‘ Indicate by check mark whether the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Act. Yes ‘ No È Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes È No ‘ Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulations S-T(§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).