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&lt;table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0"&gt;
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&lt;td valign="top" align="left" width="4%"&gt;&lt;font style="FONT-FAMILY: Times New Roman" size="2"&gt;&lt;b&gt;1.&lt;/b&gt;&lt;/font&gt;&lt;/td&gt;
&lt;td valign="top" align="left"&gt;&lt;font style="FONT-FAMILY: Times New Roman" size="2"&gt;&lt;b&gt;Basis of
Presentation&lt;/b&gt;&lt;/font&gt;&lt;/td&gt;
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&lt;font style="FONT-FAMILY: Times New Roman" size="2"&gt;The
accompanying unaudited consolidated financial statements and
related disclosures have been prepared in accordance with
accounting principles generally accepted in the United States of
America applicable to interim financial information and with the
instructions to Form 10-Q and Rule 10-01 of Regulation S-X. In the
opinion of management, all adjustments, consisting of only those of
a normal recurring nature, considered necessary for a fair
presentation of the financial position and interim results of
Mattel, Inc. and its subsidiaries (&amp;#x201C;Mattel&amp;#x201D; or the
&amp;#x201C;Company&amp;#x201D;) as of and for the periods presented, have
been included. Because Mattel&amp;#x2019;s business is seasonal, results
for interim periods are not necessarily indicative of those that
may be expected for a full year. In preparing these financial
statements, Mattel evaluated the events and transactions that
occurred between September&amp;#xA0;30, 2009 through October&amp;#xA0;28,
2009, the date these financial statements were issued.&lt;/font&gt;&lt;/p&gt;
&lt;p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"&gt;
&lt;font style="FONT-FAMILY: Times New Roman" size="2"&gt;The year-end
balance sheet data was derived from audited financial statements,
however, the accompanying interim notes to the consolidated
financial statements do not include all disclosures required by
accounting principles generally accepted in the United States of
America.&lt;/font&gt;&lt;/p&gt;
&lt;p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"&gt;
&lt;font style="FONT-FAMILY: Times New Roman" size="2"&gt;The financial
information included herein should be read in conjunction with
Mattel&amp;#x2019;s consolidated financial statements and related notes
in its 2008 Annual Report on Form 10-K.&lt;/font&gt;&lt;/p&gt;
&lt;p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"&gt;
&lt;font style="FONT-FAMILY: Times New Roman" size="2"&gt;On July&amp;#xA0;1,
2009, Mattel adopted Financial Accounting Standards Board
(&amp;#x201C;FASB&amp;#x201D;) Accounting Standards Codification
(&amp;#x201C;ASC&amp;#x201D;) 105-10 (formerly Statement of Financial
Accounting Standards (&amp;#x201C;SFAS&amp;#x201D;)&amp;#xA0;No.&amp;#xA0;168, &lt;i&gt;The
FASB Accounting Standards Codification and Hierarchy of Generally
Accepted Accounting Principles, a replacement of FASB Statement
No.&amp;#xA0;162&lt;/i&gt;). ASC 105-10 establishes the FASB ASC as the
source of authoritative accounting principles recognized by the
FASB to be applied in preparation of financial statements in
conformity with generally accepted accounting principles in the
United States of America. The adoption of this standard had no
impact on Mattel&amp;#x2019;s consolidated financial
statements.&lt;/font&gt;&lt;/p&gt;
&lt;p style="MARGIN-TOP: 0px; FONT-SIZE: 18px; MARGIN-BOTTOM: 0px"&gt;
&amp;#xA0;&lt;/p&gt;
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Basis of
Presentation



The
accompanying unaudited consolidated financial statements and
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