Mattel Inc. has a market cap of $8.99 billion; its shares were traded at around $25.055 with a P/E ratio of 13.4 and P/S ratio of 1.5. The dividend yield of Mattel Inc. stocks is 3.3%. Mattel Inc. had an annual average earning growth of 4% over the past 10 years.Hedge Fund Gurus that owns MAT: Carl Icahn of Icahn Capital Management LP, Kenneth Fisher of Fisher Asset Management, LLC, Steven Cohen of SAC Capital Advisors, Jim Simons of Renaissance Technologies LLC, Paul Tudor Jones of The Tudor Group, Tom Russo of Gardner Russo & Gardner, Bruce Kovner of Caxton Associates, George Soros of Soros Fund Management LLC, Manning & Napier Advisors, Inc. Mutual Fund and Other Gurus that owns MAT: Richard Aster Jr of Meridian Fund, Brian Rogers of T Rowe Price Equity Income Fund, RS Investment Management, John Rogers of Ariel Capital Management, John Buckingham of Al Frank Asset Management, Inc., PRIMECAP Management, David Dreman of Dreman Value Management, Jeremy Grantham of GMO LLC, Mario Gabelli of GAMCO Investors.
Highlight of Business Operations:Through its product design and development group, Mattel regularly refreshes, redesigns, and extends existing toy product lines and develops innovative new toy product lines for all segments. Mattel believes its success is dependent on its ability to continue this activity effectively. See Item 1A Risk FactorsFactors That May Affect Future Results. Product design and development activities are principally conducted by a group of professional designers and engineers employed by Mattel. During 2010, 2009, and 2008, Mattel incurred expenses of $173.9 million, $171.3 million, and $190.2 million, respectively, in connection with the design and development of products, exclusive of royalty payments. See Item 8 Financial Statements and Supplementary DataNote 16 to the Consolidated Financial StatementsSupplemental Financial Information.
During 2010, 2009, and 2008, Mattel incurred expenses of $647.3 million (11.1% of net sales), $609.8 million (11.2% of net sales), and $719.2 million (12.2% of net sales), respectively, for advertising and promotion.
During 2010, Mattels three largest customers (Wal-Mart at $1.1 billion, Toys R Us at $0.8 billion, and Target at $0.5 billion) accounted for approximately 41% of worldwide consolidated net sales in the aggregate. Within countries in the International segment, there is also a concentration of sales to certain large customers that do not operate in the US, none of which exceed 10% of net sales. The customers and the degree of concentration vary depending upon the region or nation. See Item 1A Risk FactorsFactors That May Affect Future Results and Item 8 Financial Statements and Supplementary DataNote 15 to the Consolidated Financial StatementsSegment Information.
Royalty expense for 2010, 2009, and 2008 was $245.9 million, $188.5 million, and $241.2 million, respectively. See Commitments and Item 8 Financial Statements and Supplementary DataNote 14 to the Consolidated Financial StatementsCommitments and Contingencies.
Purchase and service agreements with terms extending through 2015 and beyond contain future minimum payments aggregating approximately $445 million. Licensing and similar agreements with terms extending through 2015 contain provisions for future guaranteed minimum payments aggregating approximately $251 million. Lease commitments with terms extending through 2015 and beyond contain future minimum obligations aggregating approximately $546 million. See Item 7 Managements Discussion and Analysis of Financial Condition and Results of OperationsCommitments and Item 8 Financial Statements and Supplementary DataNote 14 to the Consolidated Financial StatementsCommitments and Contingencies.
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