Mattel 2015 Annual Report Download - page 65

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61
impairment charge of approximately $14 million, which was reflected within other selling and administrative expenses in the
consolidated statement of operations for the North America and International operating segments during 2013.
In conjunction with the Polly Pocket trade name impairment test, Mattel reassessed the intangible asset’s nonamortizable
classification and determined that the nonamortizable classification could no longer be supported. During the second quarter of
2013, the Polly Pocket trade name was reclassified as an amortizable intangible asset, and the remaining fair value of the asset
is being amortized over its estimated remaining useful life.
Mattel tests nonamortizable intangible assets, including trademarks and trade names, for impairment annually in the third
quarter and whenever events or changes in circumstances indicate that the carrying values may exceed the fair values. During
2015, Mattel performed the annual impairment tests and determined that its nonamortizable intangible assets were not
impaired.
Mattel also tests its amortizable intangible assets for impairment whenever events or changes in circumstances indicate
that the carrying value of the asset may not be recoverable. Mattel determined that its amortizable intangible assets were not
impaired during 2015.
Note 3—Income Taxes
Consolidated pre-tax income consists of the following:
For the Year
2015 2014 2013
(In thousands)
US operations $(3,435) $ 39,149 $ 231,372
Foreign operations 467,350 547,761 867,756
$ 463,915 $ 586,910 $ 1,099,128
The provision (benefit) for current and deferred income taxes consists of the following:
For the Year
2015 2014 2013
(In thousands)
Current
Federal $(1,405)$ (25,075) $ 38,227
State 1,946 (2,029) 6,447
Foreign 89,825 106,998 130,878
90,366 79,894 175,552
Deferred
Federal (3,802) 21,987 30,342
State (2,200) 8,233 (512)
Foreign 10,135 (22,078)(10,198)
4,133 8,142 19,632
Provision for income taxes $ 94,499 $ 88,036 $ 195,184
Deferred income taxes are provided principally for tax credit carryforwards, research and development expenses, net
operating loss carryforwards, employee compensation-related expenses, and certain other reserves that are recognized in
different years for financial statement and income tax reporting purposes. Mattel’s deferred income tax assets (liabilities) are
composed of the following: