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
<PAGE>
[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
- ------------------------
<PAGE>
<TABLE>
<CAPTION>
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
------
<S> <C> <C> <C> <C> <C>
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
============ ============ ============ ============ ============
<CAPTION>
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
------
<S> <C> <C>
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
============ ============
<FN>
The accompanying notes are an integral part of these financial statements.
</TABLE>
-2-
<PAGE>
<TABLE>
<CAPTION>
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
------
<S> <C> <C> <C> <C> <C>
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
============ ============ ============ ============ ============
<CAPTION>
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
------
<S> <C> <C>
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
============ ============
<FN>
The accompanying notes are an integral part of these financial statements.
</TABLE>
-3-
<PAGE>
<TABLE>
<CAPTION>
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
------------ ----------- ----------- ---------- ------------
<S> <C> <C> <C> <C> <C>
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
============ =========== =========== ========== ============
<CAPTION>
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
------------ -------------
<S> <C> <C>
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
============ ============
<FN>
(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.
</TABLE>
-4-
<PAGE>
<TABLE>
<CAPTION>
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
------------ ----------- ----------- ---------- ------------
<S> <C> <C> <C> <C> <C>
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
============ =========== =========== ========== ============
<CAPTION>
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
------------ -------------
<S> <C> <C>
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
============ ============
<FN>
(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.
</TABLE>
-5-
<PAGE>
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:
<TABLE>
<CAPTION>
December 31, December 31,
1995 1994
------------ ------------
<S> <C> <C>
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-
<CAPTION>
NOTE 3: (Continued)
- ------
December 31, December 31,
1995 1994
------------ ------------
<S> <C> <C>
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-
<CAPTION>
NOTE 3: (Continued)
- ------
December 31, December 31,
1995 1994
------------ ------------
<S> <C> <C>
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-
<CAPTION>
NOTE 3: (Continued)
- ------
December 31, December 31,
1995 1994
------------ ------------
<S> <C> <C>
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
============ ============
</TABLE>
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:
<TABLE>
<CAPTION>
December 31, December 31,
1995 1994
------------ ------------
<S> <C> <C>
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)
============ ============
</TABLE>
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:
<TABLE>
<CAPTION>
December 31, December 31,
1995 1994
------------ ------------
<S> <C> <C>
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
============ ============
</TABLE>
The following is a reconciliation of benefits paid to participants per
the financial statements to the Form 5500:
<TABLE>
<CAPTION>
December 31, December 31,
1995 1994
------------ ------------
<S> <C> <C>
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
============ ============
</TABLE>
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-
<TABLE>
<CAPTION>
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
- ---------------------------- --------------- ------------ -------------
<S> <C> <C> <C>
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
------------ -------------
<CAPTION>
Guaranteed Investment Contracts Contract Number Cost Contract Value
- ------------------------------------ --------------- ------------ --------------
(Issuer/Rate/Maturity)
<S> <C> <C> <C>
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
<FN>
* 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-
<CAPTION>
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
--------------- ------------ --------------
<C> <C> <C>
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-
<CAPTION>
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
--------------- ------------ --------------
<S> <C> <C> <C>
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
============ =============
</TABLE>
-16-
<TABLE>
<CAPTION>
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
- -------------------- ------------ ----------- ------------
<S> <C> <C> <C>
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
<CAPTION>
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
- -------------------- ------------ ----------- ------------ ----------- ------------ -----------
<S> <C> <C> <C> <C> <C> <C>
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
<FN>
* 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.
</TABLE>
-17-
<PAGE>
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
<PAGE>
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
