Mattel(MAT)2023-02-21 16:00Customer Concentration - In 2022, Mattel's three largest customers accounted for approximately 43% of worldwide consolidated net sales, with Walmart at 0.76 billion, and Amazon at 230.8 million in 2022 from 158.5 million in 2020[38]. - The company incurred advertising and promotion expenses of 545.7 million in 2021, which was 10.0% of net sales[46]. - Elevated retailer inventory levels are expected to negatively impact net sales in 2023, especially in the first half of the year[33]. Market Segmentation - The North America segment markets and sells toys and consumer products across all categories, with no individual country in the International segment exceeding 7% of worldwide consolidated net sales during 2022[27]. - Mattel's business is highly seasonal, with significant sales occurring during the third and fourth quarters, particularly in anticipation of the holiday season[31]. Product Development and Innovation - The company plans to expand its product offerings in 2023, including new lines for Barbie, Fisher-Price, Hot Wheels, and Monster High, as well as collaborations with Disney and Universal[19][20][22]. - The company continues to innovate in its product lines, including the introduction of new toys tied to popular franchises and digital experiences[24][26]. Workforce and Employment Practices - As of December 31, 2022, Mattel employed approximately 33,900 individuals, with 86% located outside the United States[54]. - Approximately 24,400 employees are part of Mattel's global manufacturing labor workforce[54]. - Mattel maintained 100% base pay equity globally for employees performing similar work, with women comprising 58% of the global workforce[60]. - Women comprise 58% of Mattel's global workforce and 47% of all management positions, reflecting a commitment to representation at all levels[60]. - The total representation of ethnically diverse employees in the U.S. increased to 44%[60]. - The company offers flexible work hours, health and welfare insurance options, and retirement plans to promote employee well-being[63]. Diversity, Equity, and Inclusion - Mattel has been recognized for its diversity, equity, and inclusion efforts, receiving a perfect score on the Human Rights Campaign Foundation's Corporate Equality Index[59]. - The company was ranked among Forbes 2022 World's Best Employers and 2023 America's Best Midsize Employers, highlighting its strong workplace culture[59]. - Mattel's Employee Resource Groups (ERGs) play a crucial role in fostering an inclusive culture and enhancing employee engagement[58]. - The company continues to strengthen relationships with schools and organizations to establish a talent pipeline for women in key positions[60]. Training and Development - In 2022, employees participated in several hundred thousand hours of learning content across various training programs[61]. - Mattel's employee engagement strategy includes regular feedback collection through an annual global engagement survey[56]. Compliance and Environmental Responsibility - Mattel's operations are subject to various environmental laws, and the company believes it is in substantial compliance with these regulations[51]. - Mattel has established a comprehensive set of standards for responsible manufacturing, focusing on health, safety, and environmental protections[62].