The investigation determined that income tax expense was understated by $109 million in the third quarter of 2017, and overstated by $109 million in the fourth quarter of 2017, with no impact for the full year. The errors were non-cash, did not affect operating income or EBITDA, and had no impact on Mattel’s full year financial results for 2017 or subsequent periods. The investigation also determined that Mattel has certain material weaknesses in its internal control over financial reporting.
Mattel, Inc. (NASDAQ: MAT) today announced that Chief Financial Officer Joseph J. Euteneuer will leave the Company after a transition period of up to six months. Mattel is conducting a search for its next CFO.
Ynon Kreiz, Chairman and Chief Executive Officer of Mattel, said, “Joe has been a valued member of our leadership team since joining Mattel two years ago. He has played a key role in our Structural Simplification program which is nearing completion, and made meaningful contributions to the significant progress we have made in the first phase of our strategy to restore profitability. I thank him for his commitment through the transition of the CFO role.”
Mr. Euteneuer said, “It has been a privilege to work alongside Ynon and the talented team at Mattel. I have great confidence in the Company’s ability to achieve its strategic and financial goals and believe Mattel is well-positioned to capitalize on opportunities for value creation. I am grateful for my time at the Company and look forward to continue working with the leadership and finance teams to ensure a seamless transition.
“It was known within Mattel that if we took this approach, at worst we might get a slap on the wrist from the Securities and Exchange Commission, but if the company disclosed a material weakness, a senior executive said to me it would be ‘the kiss of death"
"Kiss of death"So dramatic! Mattel has been creatively dead for a while now anyway. Aside from a few hits in their Jurassic Park line, their "boy" toys are terrible. I wonder how Barbie sales aredoing?Coincidentally, I just finished re-watching Breaking Bad to prepare for El Camino. I wonder if Ted Beneke works at Mattel now? haha!
18 hours ago, JayC said:I hate to break it to you but being a smaller company doesn't necessarily make you immune from doing shady stuff. The biggest difference is, it can sometimes be easier for it to happen in large companies because often the left hand doesn't always know what the right hand is doing due to the size and so many moving parts. For instance if everything in this report did happen as reported, and lets keep in mind much of it is based on only one persons retelling of those events, the CEO and Board of Directors weren't even made aware of the actions being taken by those lower down on the corporate ladder at the time it happened. That's not meant as a justification for it happening, just simply stating why it can seem like it happens more with lager companies than smaller ones.
Agreed 100%. I guess the argument I was going for is that there's less room to be a money grubbing a$$hole in a small toy biz being that CEO, office staff and the packers could all be in house. still i must always admit that it only takes one person to make a good thing bad.
13 hours ago, Nickg253 said:This is why i've been enjoying toys from smaller lines and companies. I guess i just don't feel like i'm just part of the machine. Don't get me wrong, I do still love my big lines but dang. Big companies suck.
I hate to break it to you but being a smaller company doesn't necessarily make you immune from doing shady stuff. The biggest difference is, it can sometimes be easier for it to happen in large companies because often the left hand doesn't always know what the right hand is doing due to the size and so many moving parts. For instance if everything in this report did happen as reported, and lets keep in mind much of it is based on only one persons retelling of those events, the CEO and Board of Directors weren't even made aware of the actions being taken by those lower down on the corporate ladder at the time it happened. That's not meant as a justification for it happening, just simply stating why it can seem like it happens more with lager companies than smaller ones.
Troubling news but big companies and shady practices is not unheard of.
This is why i've been enjoying toys from smaller lines and companies. I guess i just don't feel like i'm just part of the machine. Don't get me wrong, I do still love my big lines but dang. Big companies suck.
Gosh What a surprise! Everything else Mattel has done has been above board and beyond reproach, I'm shocked.
