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 for the fiscal year ended
December 31, 1996.
[_] Transition report pursuant to section 15(d) of the Securities
Exchange Act of 1934 for the transition period
from _________ to _________.
Commission File Number 001-10783
- ---------------------------------
A. Full title of the plan and the address of the plan, if different
from that of the issuer named below:
FISHER-PRICE, INC. MATCHING SAVINGS PLAN
636 GIRARD AVENUE
EAST AURORA, NEW YORK 14052
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
---------------------------------
May 22, 1997
To the Participants and Plan Administrator of the
Fisher-Price, Inc. Matching Savings Plan
In our opinion, the accompanying statements of net assets available for plan
benefits with fund information and the related statements of changes in net
assets available for plan benefits with fund information present fairly, in
all material respects, the net assets available for plan benefits of the
Fisher-Price, Inc. Matching Savings Plan at December 31, 1996 and 1995, and
the changes in net assets available for plan 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 supplemental schedules of
assets held for investment purposes at December 31, 1996 and reportable
transactions for the year then ended are presented for purposes of
additional analysis and are not a required part of the basic financial
statements but are additional information required by ERISA. The Fund
Information in the statements of net assets available for plan benefits and
the statements of changes in net assets available for plan benefits is
presented for purposes of additional analysis rather than to present the
net assets available for plan benefits and the changes in net assets
available for plan benefits of each fund. The supplemental schedules and
Fund Information have been subjected to the auditing procedures applied in
the audits of the basic financial statements and, in our opinion, are
fairly stated in all material respects in relation to the basic financial
statements taken as a whole.
/s/ Price Waterhouse LLP
- ------------------------
<PAGE>
<TABLE>
<CAPTION>
FISHER-PRICE, INC. MATCHING SAVINGS PLAN
- ----------------------------------------
STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS, WITH FUND INFORMATION
AT DECEMBER 31, 1996
- --------------------------------------------------------------------------
Fund Information
------------------------------------------------------------------------
Growth & Managed
Income Income
Mattel, Inc. Diversified Magellan Portfolio Portfolio II
Stock Fund Fund Fund Fund Fund
------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
Assets
Investments at fair market value:
Shares of Fidelity Investments,
registered investment company:
Fidelity Magellan Fund $ 13,294,726
Fidelity Growth & Income
Portfolio $ 18,238,493
Units of Fidelity Management
Trust Company:
Fidelity Managed Income
Portfolio II $ 32,985,465
Short-term investments $ 296,976 $ 3,673,887
Common stock 25,288,437 50,741,729
------------ ------------ ------------ ------------ ------------
Total investments 25,585,413 54,415,616 13,294,726 18,238,493 32,985,465
Participant loans receivable
Receivables:
Accrued interest and
dividends 55,001 90,472
Other 100,000 6,500
------------ ------------ ------------ ------------ ------------
155,001 96,972 - - -
------------ ------------ ------------ ------------ ------------
Total assets 25,740,414 54,512,588 13,294,726 18,238,493 32,985,465
------------ ------------ ------------ ------------ ------------
Liabilities
Due to brokers for securities
purchased 98,402 138,344
------------ ------------ ------------ ------------ ------------
Total liabilities 98,402 138,344 - - -
------------ ------------ ------------ ------------ ------------
Net assets available for
plan benefits $ 25,642,012 $ 54,374,244 $ 13,294,726 $ 18,238,493 $ 32,985,465
============ ============ ============ ============ ============
<CAPTION>
FISHER-PRICE, INC. MATCHING SAVINGS PLAN
- ----------------------------------------
STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS, WITH FUND INFORMATION
AT DECEMBER 31, 1996
- --------------------------------------------------------------------------
Participant
Loans Total
------------ ------------
<S> <C> <C>
Assets
Investments at fair market value:
Shares of Fidelity Investments,
registered investment company:
Fidelity Magellan Fund $ 13,294,726
Fidelity Growth & Income
Portfolio 18,238,493
Units of Fidelity Management
Trust Company:
Fidelity Managed Income
Portfolio II 32,985,465
Short-term investments 3,970,863
Common stock 76,030,166
------------ ------------
Total investments - 144,519,713
Participant loans receivable $ 2,745,667 2,745,667
Receivables:
Accrued interest and
dividends 145,473
Other 106,500
------------ ------------
- 251,973
------------ ------------
Total assets 2,745,667 147,517,353
------------ ------------
Liabilities
Due to brokers for securities
purchased 236,746
------------ ------------
Total liabilities - 236,746
------------ ------------
Net assets available for
plan benefits $ 2,745,667 $147,280,607
============ ============
<FN>
The accompanying notes are an integral part of these financial statements.
</TABLE>
-2-
<PAGE>
<TABLE>
<CAPTION>
FISHER-PRICE, INC. MATCHING SAVINGS PLAN
- ----------------------------------------
STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS, WITH FUND INFORMATION
AT DECEMBER 31, 1995
- --------------------------------------------------------------------------
Fund Information
------------------------------------------------------------------------
Growth & Managed
Income Income
Mattel, Inc. Diversified Magellan Portfolio Portfolio II
Stock Fund Fund Fund Fund Fund
------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
Assets
Investments at fair market value:
Shares of Fidelity Investments,
registered investment company:
Fidelity Magellan Fund $ 13,371,247
Fidelity Growth & Income
Portfolio $ 12,132,581
Units of Fidelity Management
Trust Company:
Fidelity Managed Income
Portfolio II $ 36,808,384
Short-term investments $ 3,058,687
Common stock $ 24,758,855 38,432,285
------------ ------------ ------------ ------------ ------------
Total investments 24,758,855 41,490,972 13,371,247 12,132,581 36,808,384
Participant loans receivable
Receivables:
Due from brokers for
securities sold 187,603
Accrued interest and
dividends 49,362 77,760
Other 30,685
------------ ------------ ------------ ------------ ------------
80,047 265,363 - - -
------------ ------------ ------------ ------------ ------------
Total assets 24,838,902 41,756,335 13,371,247 12,132,581 36,808,384
------------ ------------ ------------ ------------ ------------
Liabilities
Accounts payable 119,230
Due to brokers for securities
purchased 349,594
------------ ------------ ------------ ------------ ------------
Total liabilities 119,230 349,594 - - -
------------ ------------ ------------ ------------ ------------
Net assets available for
plan benefits $ 24,719,672 $ 41,406,741 $ 13,371,247 $ 12,132,581 $ 36,808,384
============ ============ ============ ============ ============
<CAPTION>
FISHER-PRICE, INC. MATCHING SAVINGS PLAN
- ----------------------------------------
STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS, WITH FUND INFORMATION
AT DECEMBER 31, 1995
- --------------------------------------------------------------------------
Participant
Loans Total
------------ ------------
<S> <C> <C>
Assets
Investments at fair market value:
Shares of Fidelity Investments,
registered investment company:
Fidelity Magellan Fund $ 13,371,247
Fidelity Growth & Income
Portfolio 12,132,581
Units of Fidelity Management
Trust Company:
Fidelity Managed Income
Portfolio II 36,808,384
Short-term investments 3,058,687
Common stock 63,191,140
------------ ------------
Total investments - 128,562,039
Participant loans receivable $ 2,424,520 2,424,520
Receivables:
Due from brokers for
securities sold 187,603
Accrued interest and
dividends 127,122
Other 30,685
------------ ------------
- 345,410
------------ ------------
Total assets 2,424,520 131,331,969
------------ ------------
Liabilities
Accounts payable 119,230
Due to brokers for securities
purchased 349,594
------------ ------------
Total liabilities - 468,824
------------ ------------
Net assets available for
plan benefits $ 2,424,520 $130,863,145
============ ============
<FN>
The accompanying notes are an integral part of these financial statements.
</TABLE>
-3-
<PAGE>
<TABLE>
<CAPTION>
FISHER-PRICE, INC. MATCHING SAVINGS PLAN
- ----------------------------------------
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS, WITH FUND
INFORMATION, FOR THE YEAR ENDED DECEMBER 31, 1996
- -------------------------------------------------------------------------
Fund Information
------------------------------------------------------------------------
Growth & Managed
Income Income
Mattel, Inc. Diversified Magellan Portfolio Portfolio II
Stock Fund Fund Fund Fund Fund
------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
Additions to net assets attributed to:
Investment Income:
Interest $ 19,658 $ 196,561 $ - $ - $ -
Dividends 231,390 876,003 2,172,973 865,994 2,027,150
Net appreciation (depreciation)
in fair value of assets 3,229,262 10,057,981 (668,614) 1,996,728 -
Contributions:
Employer 290,581 168,985 525,132 451,267 224,272
Employee 669,521 510,466 1,267,064 1,116,887 466,538
------------ ------------ ------------ ------------ ------------
Total additions 4,440,412 11,809,996 3,296,555 4,430,876 2,717,960
------------ ------------ ------------ ------------ ------------
Deductions from net assets attributed
to:
Benefit payments 1,684,704 2,568,750 748,590 1,054,518 4,118,656
------------ ------------ ------------ ------------ ------------
Total deductions 1,684,704 2,568,750 748,590 1,054,518 4,118,656
------------ ------------ ------------ ------------ ------------
Net increase (decrease) prior to
interfund transfers 2,755,708 9,241,246 2,547,965 3,376,358 (1,400,696)
Interfund transfers (1,833,368) 3,726,257 (2,624,486) 2,729,554 (2,422,223)
------------ ------------ ------------ ------------ ------------
Net increase (decrease) 922,340 12,967,503 (76,521) 6,105,912 (3,822,919)
------------ ------------ ------------ ------------ ------------
Net assets available for plan
benefits:
Beginning of year 24,719,672 41,406,741 13,371,247 12,132,581 36,808,384
------------ ------------ ------------ ------------ ------------
End of year $ 25,642,012 $ 54,374,244 $ 13,294,726 $ 18,238,493 $ 32,985,465
============ ============ ============ ============ ============
<CAPTION>
FISHER-PRICE, INC. MATCHING SAVINGS PLAN
- ----------------------------------------
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS, WITH FUND
INFORMATION, FOR THE YEAR ENDED DECEMBER 31, 1996
- -------------------------------------------------------------------------
Participant
Loans Total
------------ ------------
<S> <C> <C>
Additions to net assets attributed to:
Investment Income:
Interest $ 221,130 $ 437,349
Dividends - 6,173,510
Net appreciation (depreciation)
in fair value of assets - 14,615,357
Contributions:
Employer - 1,660,237
Employee - 4,030,476
------------ ------------
Total additions 221,130 26,916,929
------------ ------------
Deductions from net assets attributed
to:
Benefit payments 324,249 10,499,467
------------ ------------
Total deductions 324,249 10,499,467
------------ ------------
Net increase (decrease) prior to
interfund transfers (103,119) 16,417,462
Interfund transfers 424,266 -
------------ ------------
Net increase (decrease) 321,147 16,417,462
------------ ------------
Net assets available for plan
benefits:
Beginning of year 2,424,520 130,863,145
------------ ------------
End of year $ 2,745,667 $147,280,607
============ ============
<FN>
The accompanying notes are an integral part of these financial statements.
</TABLE>
-4-
<PAGE>
<TABLE>
<CAPTION>
FISHER-PRICE, INC. MATCHING SAVINGS PLAN
- ----------------------------------------
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS, WITH FUND
INFORMATION, FOR THE YEAR ENDED DECEMBER 31, 1995
- -------------------------------------------------------------------------
Fund Information
------------------------------------------------------------------------
Growth & Managed
Income Income
Mattel, Inc. Diversified Magellan Portfolio Portfolio II
Stock Fund Fund Fund Fund Fund
------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
Additions to net assets attributed to:
Investment Income:
Interest $ 8,423 $ 150,909 $ - $ - $ -
Dividends 110,015 778,135 758,595 542,074 2,284,615
Net appreciation
in fair value of assets 9,767,229 11,305,126 2,241,442 2,202,477 -
Contributions:
Employer 328,895 57,653 613,240 508,974 294,859
Employee 800,399 266,380 1,560,703 1,272,528 665,794
------------ ------------ ------------ ------------ ------------
Total additions 11,014,961 12,558,203 5,173,980 4,526,053 3,245,268
------------ ------------ ------------ ------------ ------------
Deductions from net assets attributed
to:
Benefit payments 1,797,926 3,017,125 580,284 550,604 5,080,198
Other - (185) 423 344 (399)
------------ ------------ ------------ ------------ ------------
Total deductions 1,797,926 3,016,940 580,707 550,948 5,079,799
------------ ------------ ------------ ------------ ------------
Net increase (decrease) prior to
interfund transfers 9,217,035 9,541,263 4,593,273 3,975,105 (1,834,531)
Interfund transfers (3,677,368) 146,420 1,153,626 1,600,714 918,990
------------ ------------ ------------ ------------ ------------
Net increase (decrease) 5,539,667 9,687,683 5,746,899 5,575,819 (915,541)
------------ ------------ ------------ ------------ ------------
Net assets available for plan
benefits:
Beginning of year 19,180,005 31,719,058 7,624,348 6,556,762 37,723,925
------------ ------------ ------------ ------------ ------------
End of year $ 24,719,672 $ 41,406,741 $ 13,371,247 $ 12,132,581 $ 36,808,384
============ ============ ============ ============ ============
<CAPTION>
FISHER-PRICE, INC. MATCHING SAVINGS PLAN
- ----------------------------------------
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS, WITH FUND
INFORMATION, FOR THE YEAR ENDED DECEMBER 31, 1995
- -------------------------------------------------------------------------
Participant
Loans Total
------------ ------------
<S> <C> <C>
Additions to net assets attributed to:
Investment Income:
Interest $ 203,437 $ 362,769
Dividends - 4,473,434
Net appreciation
in fair value of assets - 25,516,274
Contributions:
Employer - 1,803,621
Employee - 4,565,804
------------ ------------
Total additions 203,437 36,721,902
------------ ------------
Deductions from net assets attributed
to:
Benefit payments 260,416 11,286,553
Other - 183
------------ ------------
Total deductions 260,416 11,286,736
------------ ------------
Net increase (decrease) prior to
interfund transfers (56,979) 25,435,166
Interfund transfers (142,382) -
------------ ------------
Net increase (decrease) (199,361) 25,435,166
------------ ------------
Net assets available for plan
benefits:
Beginning of year 2,623,881 105,427,979
------------ ------------
End of year $ 2,424,520 $130,863,145
============ ============
<FN>
The accompanying notes are an integral part of these financial statements.
</TABLE>
-5-
<PAGE>
FISHER-PRICE, INC. MATCHING SAVINGS PLAN
- ----------------------------------------
NOTES TO FINANCIAL STATEMENTS
- -----------------------------
1. DESCRIPTION OF PLAN
The Fisher-Price, Inc. Matching Savings Plan (the Plan), was
established January 1, 1992 as a defined contribution plan to cover
all eligible employees of Fisher-Price, Inc. (the Company). In
accordance with the Plan agreement, eligibility is defined as a common
law employee with at least six months of service and an age of twenty
and one-half years or older. The Plan is subject to certain
provisions of the Employee Retirement Income Security Act of 1974
(ERISA).
On June 30, 1994, the Plan was merged with the Fisher-Price Profit
Sharing and Retirement Savings Plan (the Profit Sharing Plan) such
that all assets of the Profit Sharing Plan were transferred into the
Plan. The Plan was restated on July 1, 1994 to replace the January 1,
1992 original plan document. The restatement was made to reflect the
merger of the plans and to meet requirements of the Internal Revenue
Service in obtaining a favorable determination letter. These changes
had no significant impact on the Plan. Participants should refer to
the 1994 Restatement plan document for more complete information.
In addition, on November 30, 1993, the Company became a wholly-owned
subsidiary of Mattel, Inc. (Mattel). There was no effect on Plan
provisions as a result of the merger.
Participants may elect to make voluntary contributions of 1% to 10% of
their annual compensation subject to certain limitations. The Company
will match 100% of the first $300 of a participant's contribution, 75%
of the next $200 contributed and 40% of contributions over $500 up to
a maximum of 6% of annual compensation. Additionally, the Board of
Directors of Mattel can authorize an additional "discretionary"
contribution of up to 50% of the participant's contribution, limited
to 6% of his or her annual compensation. There were no discretionary
contributions for the 1996 and 1995 plan years. Participants are
immediately vested in their voluntary contributions, the Company's
contributions, and their share of actual earnings.
INVESTMENT PROGRAMS
The Plan allows participants to direct their contributions, in 1%
increments, to any combination of five investment accounts. All
investment accounts are maintained by Fidelity Management Trust
Company (FMTC). The investment options are as follows:
- MATTEL, INC. STOCK FUND
The underlying assets of the fund consist of Mattel, Inc. common
stock, which is listed on the New York Stock Exchange (Symbol:
MAT) and a money market type fund to provide daily liquidity.
The Mattel, Inc. Stock Fund was unitized by FMTC (the Trustee)
and shares of the fund are reflected as units. The unitization
allows participants to transfer monies into and out of the fund
on any business day and also provides FMTC with additional
flexibility in managing the fund. At December 31, 1996 and 1995,
participants had 1,477,926 units with a net asset value of $17.35 per
unit and 1,615,665 units with a net asset value of
-6-
$15.30 per unit, respectively. Shares of Mattel, Inc. common
stock held by the fund at December 31, 1996 and 1995 were
911,295 with a fair market value of $25,288,437 and 1,006,548
with a fair market value of $24,758,855, respectively.
- DIVERSIFIED FUND
This fund invests principally in large capitalization U.S.
equities, U.S. Treasury fixed income securities and high grade money
market instruments. The equities portion of the fund is diversified
among a variety of economic sectors and industries. Similar to the
Mattel, Inc. Stock Fund, this fund is a unitized fund, such that the
shares in the fund are stated in units and a short-term investment fund
provides liquidity. At December 31, 1996 and 1995, participants had
2,980,554 units with a net asset value of $18.243 per unit and
2,869,490 units with a net asset value of $14.43 per unit, respectively.
Shares of Mattel, Inc. common stock held by the fund at December 31,
1996 and 1995 were 11,000 with a fair market value of $305,250 and
15,500 with a fair market value of $381,300, respectively.
- FIDELITY MAGELLAN FUND
This fund invests primarily in common stock and securities
convertible to common stock issued by domestic and foreign
companies offering long-term capital growth.
- FIDELITY GROWTH & INCOME PORTFOLIO FUND
This fund invests in any combination of common stock, securities
convertible to common stock, preferred stock and fixed income
securities of domestic and foreign companies offering growth of
earnings potential while paying current dividends.
- FIDELITY MANAGED INCOME PORTFOLIO II FUND
This fund invests primarily in guaranteed investment contracts
issued by insurance companies and commercial banks and other
similar types of fixed principal investments.
- PARTICIPANT LOANS
Participant loans consist of amounts borrowed by participants less
principal repayments. Participants may borrow from their accounts
from a minimum of $1,000 to a maximum equal to the lesser of $50,000
or 50% of their vested account balance. Loan terms range from 1-4
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 1%. The interest rate is set for the
duration of the loan. As of December 31, 1996, interest rates on loans
outstanding ranged from 7% to 10%. 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.
-7-
Income earned by each fund, including realized and unrealized gains
and losses on investments, is allocated to participants' accounts
based on their pro-rata share of contributions and income earned
thereon. At December 31, 1996 there were 2,986 participants in the
Plan. The Plan provides participants the flexibility to reallocate
their account balances among the investment options at various times
throughout the year as stipulated in the Plan agreement.
WITHDRAWALS, DISTRIBUTIONS AND LOANS
A participant undergoing certain types of financial hardship, as
defined by the Plan, may request the Plan administrator to distribute
all or a portion of his or her account. Such distributions may be
granted by the Plan administrator if the participant meets certain
criteria defined by the Plan.
If a participant dies, is permanently disabled or attains normal
retirement age, distributions under the Plan may commence immediately.
If a participant's account balance is less than $3,500 upon
termination, the participant's interest in the Plan is distributed in
the form of a lump sum payment. If the amount in a participant's account
exceeds $3,500, benefit payments will be delayed until a participant
dies, is permanently disabled or attains normal retirement age;
however, a participant may request in writing to receive his or her
benefits at any time after employment terminates. The Plan provides
certain elections for participants under which distributions from the
Plan may be deferred.
Additionally, an active participant may elect to borrow from the
accumulated amount of assets in his or her account. All loans are
subject to the review and approval of the Plan administrator. Terms
and conditions of loans are discussed in the Plan agreement.
ADMINISTRATION
The Plan is administered by the Company. The Company has selected
Fidelity Management Trust Company to be the Trustee of the Plan. The
Trustee is responsible for maintaining the assets of the Plan and
reporting on the earnings and assets of the Plan. In addition, the
Company has selected Institutional Capital Corporation (ICAP) as the
investment manager for the Diversified Fund. ICAP manages the fund
using defined investment objectives and guidelines established by
the Plan's Investment Committee. All administrative expenses, excluding
broker commissions paid for the purchase and sale of securities for
the Mattel, Inc. Stock Fund and the Diversified Fund, are paid by the
Company.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
BASIS OF ACCOUNTING
The financial statements are prepared using the accrual basis of
accounting.
-8-
INVESTMENTS
Investments are reflected at current market value as measured by
quoted market prices in an active market or as determined in good
faith by the Trustee. Net realized gains or losses on the disposition
of investments and investment income are also determined by the
Trustee. The unrealized appreciation (depreciation) of investments
is determined from information provided by the Trustee.
PAYMENT OF BENEFITS
Benefits are recorded when paid.
3. INVESTMENTS
The following table presents the Plan's investments. During 1996,
the Plan's investments (including investments bought, sold, and held
during the year) appreciated (depreciated) in value as follows:
<TABLE>
<CAPTION>
Net
Appreciation
(Depreciation)
In Value December 31,
During 1996 1996
-------------- ------------
<S> <C> <C>
Investments at fair value
as determined by quoted
market price:
Fidelity Magellan Fund $ (668,614) $ 13,294,726
Fidelity Growth & Income
Portfolio 1,996,728 18,238,493
Common stock:
Mattel, Inc.* 3,229,262 25,288,437
Other 10,057,981 50,741,729
Short term investments - 3,970,863
Investments at fair value
as determined in good
faith by the Trustee:
Fidelity Management Trust
Company Managed Income
Portfolio II - 32,985,465
-------------- ------------
$ 14,615,357 $144,519,713
============== ============
<FN>
* Party-in-interest
</TABLE>
-9-
4. FEDERAL INCOME TAXES
The Internal Revenue Service has determined and informed the Company
by letter dated June 29, 1995 that the Plan, as restated and amended
in 1994, constitutes a qualified plan under Section 401(a) of the
Internal Revenue Code (IRC). The applicable provisions of the IRC
exempt the Plan from federal income taxes. Accordingly, no provision
for income taxes has been recorded on the Plan's financial statements.
5. PLAN MERGER
On April 1, 1997, the Plan was merged and all assets were transferred
into the Mattel, Inc. Personal Investment Plan.
-10-
<TABLE>
<CAPTION>
FISHER-PRICE, INC. MATCHING SAVINGS PLAN
- ----------------------------------------
ITEM 27a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
AT DECEMBER 31, 1996
- ----------------------------------------------------------
FIDELITY MANAGED ASSETS
-----------------------
FIDELITY INVESTMENTS:
- ---------------------
Shares/ Market
Units Description Cost Value
- ---------- ---------------------------------- ----------- -----------
<S> <C> <C> <C>
164,845 MAGELLAN FUND $12,341,585 $13,294,726
=========== ===========
593,508 GROWTH & INCOME PORTFOLIO $14,796,180 $18,238,493
=========== ===========
FMTC:
- -----
32,985,465 MANAGED INCOME PORTFOLIO II $32,985,465 $32,985,465
=========== ===========
MATTEL, INC. STOCK FUND
Short-Term Investements
-----------------------
296,976 Fidelity Institutional
Cash Portfolio, Class A $ 296,976 $ 296,976
=========== ===========
Common Stock
------------
911,295 Mattel, Inc.* $12,241,838 $25,288,437
=========== ===========
Total assets held by the
Mattel, Inc. Stock Fund $12,538,814 $25,585,413
=========== ===========
<FN>
* Party-in-interest
-11-
<CAPTION>
FISHER-PRICE, INC. MATCHING SAVINGS PLAN
- ----------------------------------------
ITEM 27a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
AT DECEMBER 31, 1996 (CONTINUED)
- ----------------------------------------------------------
ICAP MANAGED ASSETS
-------------------
Par Value/ Market
Shares Description Cost Value
- ---------- ---------------------------------- ----------- -----------
<S> <C> <C> <C>
DIVERSIFIED FUND
Short-Term Investments
----------------------
990,230 Bankers Trust Company Short-Term
Investment Fund $ 990,230 $ 990,230
1,300,000 Lucent Technologies Commerical
Paper, 01/29/97 1,291,886 1,291,886
1,400,000 Xerox Corp. Commercial
Paper, 01/14/97 1,391,771 1,391,771
----------- -----------
Total short-term investments
held by the Diversified Fund $ 3,673,887 $ 3,673,887
----------- -----------
-12-
<CAPTION>
FISHER-PRICE, INC. MATCHING SAVINGS PLAN
- ----------------------------------------
ITEM 27a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
AT DECEMBER 31, 1996 (CONTINUED)
- ----------------------------------------------------------
ICAP MANAGED ASSETS
-------------------
Par Value/ Market
Shares Description Cost Value
- ---------- ---------------------------------- ----------- -----------
<S> <C> <C> <C>
Common Stock
------------
8,300 Aetna Inc. $ 541,382 $ 664,000
20,200 Allegheny Teledyne Inc. 416,816 464,600
25,899 Allstate Corporation 847,485 1,498,905
23,300 American Home Products Corp. 1,184,747 1,365,963
18,850 Amoco Corp. 1,239,504 1,517,425
11,700 AMR Corp. 989,222 1,031,063
28,300 Banc One Corp. 1,079,838 1,216,900
15,200 Boeing Corporation 1,311,515 1,616,900
13,150 Bristol Myers 1,137,066 1,430,063
14,600 Burlington Northern Santa Fe 959,554 1,261,075
12,400 Citicorp 544,637 1,277,200
38,900 CS Holding Sponsored ADR 985,285 995,879
18,150 Dow Chemical Co. 1,419,759 1,422,506
30,950 Dun & Bradstreet Corp. 720,931 735,063
14,050 Dupont (EI) De Nemours 1,023,352 1,325,969
37,500 ELF Aquitaine ADR 1,484,544 1,696,875
34,400 Federated Department Stores Inc. 928,189 1,173,900
16,600 General Instrument Corp. 383,892 358,975
29,100 General Motors Corp. 1,514,068 1,622,325
14,400 Hasbro Inc. 503,015 559,800
35,100 Host Mariott Corp. 551,943 561,600
8,950 International Business Machines Corp. 927,289 1,351,450
23,600 ITT Corp. 1,314,985 1,023,650
12,050 Loews Corp. 945,945 1,135,713
11,000 Mattel Inc. * 207,524 305,250
39,500 MCI Communications Corp. 1,252,302 1,291,156
16,350 Motorola Inc. 825,236 1,003,481
14,050 Nokia Corp. PFD Sponsored ADR 542,107 809,631
13,500 Northrop Grumman Corp 928,632 1,117,125
33,546 Novaria AG Sponsored ADR 1,491,505 1,914,990
31,900 NYNEX Corp. 1,428,491 1,535,188
48,550 Pacific Telesis Group 1,642,598 1,784,213
37,400 Peninsular & Oriental ADR 747,241 755,229
41,600 Philips Electronic NV NY 1,309,375 1,664,000
23,150 Raytheon Company 1,112,778 1,114,090
36,400 Rhone-Poulenc ADR 974,873 1,233,050
21,600 Scripps Co. (EW) Class A 707,784 756,000
<FN>
* Party-in-interest
-13-
<CAPTION>
FISHER-PRICE, INC. MATCHING SAVINGS PLAN
- ----------------------------------------
ITEM 27a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
AT DECEMBER 31, 1996 (CONTINUED)
- ----------------------------------------------------------
ICAP MANAGED ASSETS
-------------------
Par Value/ Market
Shares Description Cost Value
- ---------- ---------------------------------- ----------- -----------
<S> <C> <C> <C>
34,600 Tenet Healthcare Corp. $ 673,880 $ 756,875
24,866 Travelers Group Inc. 546,741 1,128,295
27,350 Union Pacific Corp. 1,246,174 1,644,419
17,050 W R Grace & Company 837,368 882,338
56,400 Walmart Stores Inc. 1,413,929 1,290,150
5,400 Wells Fargo & Co. 1,325,459 1,456,650
30,400 WMX Technologies Inc. 1,022,716 991,800
----------- -----------
Total common stock 43,191,676 50,741,729
----------- -----------
Total assets held by the
Diversified Fund $46,865,563 $54,415,616
=========== ===========
</TABLE>
-14-
<TABLE>
<CAPTION>
FISHER-PRICE, INC. MATCHING SAVINGS PLAN
- ----------------------------------------
ITEM 27d - SCHEDULE OF REPORTABLE TRANSACTIONS FOR THE YEAR ENDED
DECEMBER 31, 1996 (1)
- -----------------------------------------------------------------
Identity of Description Purchase
Party Involved of Asset Price Transaction(s)
- -------------------- ------------ ----------- --------------
<S> <C> <C> <C>
Series of Transactions:
Fidelity Investments Magellan $ 7,507,851 218
(FI) Fund - -
FI Growth & 8,376,075 222
Income - -
Portfolio
FI Managed 10,983,450 217
Income - -
Portfolio
II
Fidelity Mgmt. Bankers Trust 35,124,514 132
Trust Co. (FMTC) Co. STIF - -
FMTC Fidelity Inst'l 11,529,372 119
Cash Portfolio - -
CI A
FMTC Mattel, Inc. 7,409,585 46
Common Stock - -
<CAPTION>
FISHER-PRICE, INC. MATCHING SAVINGS PLAN
- ----------------------------------------
ITEM 27d - SCHEDULE OF REPORTABLE TRANSACTIONS FOR THE YEAR ENDED
DECEMBER 31, 1996 (1)
- -----------------------------------------------------------------
Current
Expense Value of
Incurred Asset on
Identity of Description Selling With Cost of Transaction Net Gain
Party Involved of Asset Price Transaction(s) Transaction Asset Date or (Loss)
- -------------------- ------------ ----------- -------------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
Series of Transactions:
Fidelity Investments Magellan $ - - $ - $ 7,507,851 $ 7,507,851 $ -
(FI) Fund 6,915,757 188 - 6,720,338 6,915,757 195,419
FI Growth & - - - 8,376,075 8,376,075 -
Income 4,266,891 143 - 3,771,683 4,266,891 495,208
Portfolio
FI Managed - - - 10,983,450 10,983,450 -
Income 14,806,368 198 - 14,806,368 14,806,368 -
Portfolio
II
Fidelity Mgmt. Bankers Trust - - - 35,124,514 35,124,514 -
Trust Co. (FMTC) Co. STIF 35,204,389 120 - 35,204,389 35,204,389 -
FMTC Fidelity Inst'l - - - 11,529,372 11,529,372 -
Cash Portfolio 11,232,384 118 - 11,232,384 11,232,384 -
CI A
FMTC Mattel, Inc. - - 8,097 7,417,682 7,409,585 -
Common Stock 10,115,219 69 9,627 4,361,674 10,115,219 5,743,918
<FN>
(1) Computed based on the net asset value of the Plan at December 31, 1995
of $130,863,145
Prepared from data certified by FMTC.
-15-
<PAGE>
POWER OF ATTORNEY
-----------------
We, the undersigned directors of Fisher-Price, Inc., the Plan
Administrator for the Fisher-Price, Inc. Matching Savings Plan, do hereby
severally constitute and appoint Jill E. Barad, Ned Mansour, Robert Normile,
Barnett Rosenberg, 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 directors and officers 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 trustees (or other persons who administer the employee benefit
plan) have duly caused this annual report to be signed on its behalf by the
undersigned hereunto duly authorized.
Fisher-Price, Inc. Matching Savings Plan
----------------------------------------
(Name of Plan)
Fisher-Price, Inc., Plan Administrator
/s/ Ned Mansour
---------------------
Ned Mansour, Director
/s/ Gary Baughman
Date: June 30, 1997 ------------------------
------------- Gary Baughman, President
<PAGE>
</TABLE>
EXHIBIT 23.0
CONSENT OF INDEPENDENT ACCOUNTANTS
----------------------------------
We hereby consent to the incorporation by reference in this Registration
Statement on Form S-8 (No. 033-54391) of the Fisher-Price, Inc. Matching
Savings Plan, as amended, of our report dated May 22, 1997 appearing on
page 1 of this Form 11-K.
/s/ Price Waterhouse LLP
- ------------------------
Buffalo, New York
June 19, 1997
<PAGE>
