<PAGE>   1
                                    FORM 10-Q

                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                   Quarterly Report Under Section 13 or 15 (d)
                     of the Securities Exchange Act of 1934

For The Quarter Ended                        September 30, 1999
--------------------------------------------------------------------------------


Commission File Number                  0-7024
--------------------------------------------------------------------------------


                              THE FIRST YEARS INC.
--------------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)


Massachusetts                                         04-2149581
--------------------------------------------------------------------------------
(State or other jurisdiction of                    (I.R.S. Employer
incorporation or organization)                    Identification No.)


                One Kiddie Drive, Avon, Massachusetts 02322-1171
--------------------------------------------------------------------------------
                    (Address of principal executive offices)
                                   (Zip Code)

                                 (508) 588-1220
--------------------------------------------------------------------------------
              (Registrant's telephone number, including area code)


--------------------------------------------------------------------------------
              (Former name, former address and former fiscal year,
                          if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by section 13 or 15(d) of the securities exchange act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.

Yes _X_. No ___.

The number of shares of registrant's common stock outstanding on October 31,
1999 was 9,994,657.


<PAGE>   2


                              THE FIRST YEARS INC.



                                      INDEX



<TABLE>
<CAPTION>
<S>                                                   <C>
PART I - FINANCIAL INFORMATION:

Condensed Consolidated Balance Sheets           Page  1

Condensed Consolidated Statements of Income           2

Condensed Consolidated Statements of Cash Flows       3

Notes to Condensed Consolidated Financial Statements  4 - 6

Management's Discussion and Analysis of Financial
  Condition and Results of Operations                 7 - 10

PART II - OTHER INFORMATION

Other Information                                     11

Signatures                                            12

Exhibit Index                                         13
</TABLE>


<PAGE>   3


                              THE FIRST YEARS INC.

                      Condensed Consolidated Balance Sheets

                                     ASSETS

<TABLE>
<CAPTION>
                                                                          September 30,         December 31,
                                                                              1999                  1998
                                                                          -------------         ------------
                                                                           (Unaudited)
<S>                                                                        <C>                  <C>
CURRENT ASSETS:
Cash and cash equivalents                                                  $13,887,320          $19,776,897
 Accounts receivable, net                                                   22,404,289           19,013,127
 Inventories                                                                19,052,378           18,520,023
 Prepaid expenses and other assets                                             476,555            2,638,634
 Deferred tax assets                                                         1,424,500            1,424,500
                                                                           -----------          -----------
       Total current assets                                                 57,245,042           61,373,181
                                                                           -----------          -----------

PROPERTY, PLANT, AND EQUIPMENT:
 Land                                                                          167,266              167,266
 Building                                                                    5,114,510            4,199,790
 Machinery and molds                                                         8,685,541            7,878,103
 Furniture and equipment                                                     4,498,513            4,571,636
                                                                           -----------          -----------
       Total                                                                18,465,830           16,816,795
 Less accumulated depreciation                                               8,616,158            8,914,081
                                                                           -----------          -----------
     Property, plant, and equipment - net                                    9,849,672            7,902,714
                                                                           -----------          -----------

TOTAL ASSETS                                                               $67,094,714          $69,275,895
                                                                           ===========          ===========


                              LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES:
 Accounts payable                                                          $ 7,870,590          $ 9,400,966
 Accrued royalty expense                                                     2,002,653            2,130,027
 Accrued payroll expenses                                                      283,402            1,200,966
 Accrued selling expenses                                                    2,234,783            3,098,232
                                                                           -----------          -----------
       Total current liabilities                                            12,391,428           15,830,191
                                                                           -----------          -----------


DEFERRED TAX LIABILITY                                                         798,300              798,300
                                                                           -----------          -----------


STOCKHOLDERS' EQUITY:
 Common stock                                                                1,057,025            1,046,141
 Paid-in capital                                                             8,056,666            7,472,398
 Retained earnings                                                          51,864,321           44,438,589
 Less treasury stock at cost, 575,594
  and 21,394 shares as of September 30,
  1999 and December 31, 1998, respectively                                  (7,073,026)            (309,724)
                                                                           -----------          -----------
       Total stockholders' equity                                           53,904,986           52,647,404
                                                                           -----------          -----------

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                                 $67,094,714          $69,275,895
                                                                           ===========          ===========
</TABLE>


     See accompanying notes to condensed consolidated financial statements.

                                     Page 1
<PAGE>   4


                        THE FIRST YEARS INC.

             Condensed Consolidated Statements of Income
                             (Unaudited)

<TABLE>
<CAPTION>
                                       Three Months Ended             Nine Months Ended
                                          September 30,                 September 30,
                                       ------------------             -----------------

                                      1999            1998           1999            1998
                                      ----            ----           ----            ----

<S>                               <C>             <C>            <C>             <C>
NET SALES                         $31,794,094     $32,735,238    $103,594,089    $103,219,645

COST OF PRODUCTS SOLD              17,682,789      18,951,345      59,945,118      61,038,625
                                  -----------     -----------    ------------    ------------

GROSS PROFIT                       14,111,305      13,783,893      43,648,971      42,181,020


SELLING, GENERAL, AND
 ADMINISTRATIVE EXPENSES           10,137,311       9,241,221      30,526,706      29,451,127
                                  -----------     -----------    ------------    ------------

OPERATING INCOME                    3,973,994       4,542,672      13,122,265      12,729,893

OTHER INCOME:
  Interest income                     124,798         188,259         417,459         390,738
                                  -----------     -----------    ------------    ------------


INCOME BEFORE INCOME TAXES          4,098,792       4,730,931      13,539,724      13,120,631

PROVISION FOR INCOME TAXES          1,660,000       1,916,000       5,483,600       5,313,800
                                  -----------     -----------    ------------    ------------

NET INCOME                        $ 2,438,792     $ 2,814,931    $  8,056,124    $  7,806,831
                                  ===========     ===========    ============    ============


BASIC EARNINGS PER SHARE          $      0.24     $      0.27    $       0.78    $       0.76
                                  ===========     ===========    ============    ============

DILUTED EARNINGS PER SHARE        $      0.24     $      0.26    $       0.76    $       0.73
                                  ===========     ===========    ============    ============

CASH DIVIDENDS PAID PER SHARE     $      0.00     $      0.00    $       0.06    $       0.06
                                  ===========     ===========    ============    ============
</TABLE>


     See accompanying notes to condensed consolidated financial statements.

                                     Page 2
<PAGE>   5


             Condensed Consolidated Statements of Cash Flows for the
                  Nine Months Ended September 30, 1999 and 1998
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                                1999              1998
                                                                ----              ----
<S>                                                        <C>               <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
 Net income                                                $  8,056,124      $  7,806,831
 Adjustments to reconcile net income to net
  cash provided by (used for) operations:
    Depreciation                                              1,403,128         1,260,768
    Provision for doubtful accounts                              76,712           115,000
    Loss on disposal of equipment                               452,271           476,067
 Increase (decrease) arising from working
    capital items:
    Accounts receivable                                      (3,467,874)       (1,979,406)
    Inventories                                                (532,355)        5,051,281
    Prepaid expenses and other assets                         2,162,079           (18,957)
    Accounts payable and accrued expenses                    (1,407,876)          (75,513)
    Accrued royalties                                          (127,374)           10,825
    Accrued payroll expense                                    (917,564)          133,971
    Accrued selling expenses                                   (863,449)          626,395
                                                           ------------      ------------
     Net cash provided by (used for)
       operating activities                                   4,833,822        13,407,262
                                                           ------------      ------------

CASH FLOWS FROM INVESTING ACTIVITIES:
    Expenditures for property, plant,
       and equipment                                         (3,802,357)       (1,424,169)
                                                           ------------      ------------

CASH FLOWS FROM FINANCING ACTIVITIES:
    Cash dividend                                              (630,392)         (621,935)
    Common stock issued under stock
      option plans                                              378,077           625,820
    Purchase of treasury stock                               (6,668,727)               --
                                                           ------------      ------------
     Net cash provided by (used for)
       financing activities                                  (6,921,042)            3,885
                                                           ------------      ------------
INCREASE (DECREASE) IN CASH AND
  CASH EQUIVALENTS                                           (5,889,577)       11,986,978

CASH AND CASH EQUIVALENTS, BEGINNING
  OF PERIOD                                                  19,776,897         7,697,040
                                                           ------------      ------------

CASH AND CASH EQUIVALENTS, END OF PERIOD                   $ 13,887,320      $ 19,684,018
                                                           ============      ============
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
    Cash paid for:
         Interest                                          $        762      $        850
                                                           ============      ============
         Income taxes                                      $  4,189,226      $  4,656,800
                                                           ============      ============

SUPPLEMENTAL SCHEDULE OF NONCASH FINANCING ACTIVITIES:
    Tax benefit of stock option exercises                  $    122,500      $    506,400
                                                           ============      ============
    Issuance of treasury stock                             $     94,575      $    227,911
                                                           ============      ============
</TABLE>


     See accompanying notes to condensed consolidated financial statements.

                                     Page 3
<PAGE>   6


                              THE FIRST YEARS INC.

              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

1.   Amounts in the accompanying balance sheet as of December 31, 1998 are
     condensed from the Company's audited balance sheet as of that date. All
     other condensed financial statements are unaudited but, in the opinion of
     the Company, contain all normal and recurring adjustments necessary to
     present fairly the financial position as of September 30, 1999, and the
     results of operations and cash flows for the periods ended September 30,
     1999 and 1998. Certain reclassifications were made to the prior year
     amounts in order to conform with the current year presentation.

2.   The Company has 50,000,000 authorized shares of $.10 par value common stock
     with 9,994,657 and 10,440,014 shares issued and outstanding as of September
     30, 1999 and December 31, 1998, respectively.

     On May 6, 1999 the Board of Directors authorized a $0.06 per share annual
     cash dividend payable on June 15, 1999 to holders of record at the close of
     business on May 28, 1999.

     During the period ended September 30, 1999 the company purchased 545,800
     shares of the company's common stock on the open market. The cost of the
     shares amounted to $6,668,727 and are currently being held as treasury
     stock.

3.   Computation of the earnings per share ("EPS") in accordance with SFAS No.
     128 are as follows:

<TABLE>
<CAPTION>
                                     Three Months Ended               Nine Months Ended
                                        September 30,                   September 30,
                                     ------------------               -----------------

                                    1999            1998            1999            1998
                                    ----            ----            ----            ----

<S>                              <C>             <C>             <C>             <C>
AVERAGE SHARES OUTSTANDING       10,204,475      10,391,816      10,353,059      10,306,828

EFFECT OF DILUTIVE SHARES           142,179         305,155         206,450         352,809
                                -----------     -----------     -----------     -----------

AVERAGE DILUTED
  SHARES OUTSTANDING             10,346,654      10,696,971      10,559,509      10,659,637
                                ===========     ===========     ===========     ===========

NET INCOME                      $ 2,438,792     $ 2,814,931     $ 8,056,124     $ 7,806,831
                                ===========     ===========     ===========     ===========


BASIC EARNINGS PER SHARE        $      0.24     $      0.27     $      0.78     $      0.76
                                ===========     ===========     ===========     ===========

DILUTED EARNINGS PER SHARE      $      0.24     $      0.26     $      0.76     $      0.73
                                ===========     ===========     ===========     ===========
</TABLE>


                                     Page 4
<PAGE>   7


                              THE FIRST YEARS INC.

              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

3.   (cont):

          As of September 30, 1999, options to purchase 510,295 shares of common
          stock were not included in the computation of diluted EPS because the
          option's exercise price was greater than the average price of the
          common shares. The options, expiring from 2007 to 2009, had exercise
          prices ranging from 12 3/16 to 17 3/4 per share.

          As of September 30, 1998, options to purchase 33,964 shares of common
          stock were not included in the computation of diluted EPS because the
          option's exercise price was greater than the average price of the
          common shares. The options, expiring from 2008 to 2009, had exercise
          prices ranging from 15 15/16 to 17 3/4 per share.

4.   The results of operations for the nine-month period ended September 30,
     1999 and 1998 are not necessarily indicative of the results to be expected
     for the full year.

5.   During the first nine months of 1999 and 1998, the Company did not borrow
     against its unsecured line of credit totaling $10,000,000 available from a
     bank.

6.   In June 1998, the Financial Accounting Standards Board issued SFAS No. 133
     "Accounting for Derivative Instruments and Hedging Activities," as amended
     in May, 1999 by SFAS No. 137 Which will require recognition of all
     derivatives as either assets or liabilities on the balance sheet at fair
     value. The Company is currently evaluating the effect of implementing SFAS
     No. 133, as amended, which will be effective for the year beginning January
     1, 2001.

7.   During 1999, Mark A. Freeman and Timothy K. Stringer brought a civil action
     against the Company in the United States District Court for the District of
     Kansas, Civil Action No. 99 2058 KHV. The complaint in the civil action
     alleges that the Company's Tumble Mates(R) valved drinking cups infringe
     U.S. Patent 5,186,347 and seeks injunctive relief, treble damages in an
     amount unspecified, and attorney fees. It is the Company's position that it
     does not infringe any valid claims of U.S. Patent 5,186,347 and the Company
     is vigorously defending the civil action.


                                     Page 5
<PAGE>   8


                              THE FIRST YEARS INC.

              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

8.   During the fourth quarter of 1998, the Company incurred a charge relating
     to sales returns and the write-off of inventory of certain products
     containing diisononyl phthalate ("DINP"), a plastic softener. Although the
     results of a study on DINP conducted by the U.S. Consumer Product Safety
     Commission resulted in the Commission not recommending a ban on products
     containing DINP, some retailers decided to return certain products
     containing this material.

     Net sales for the three months and nine months ended September 30, 1999
     increased by $384,000 and cost of sales decreased by $629,000 for the same
     period due to lower than expected sales returns and inventory write offs of
     certain products containing diisononyl phthalate, for which a charge was
     previously recorded in the fourth quarter of 1998. Net income for the three
     months and the nine months ended September 30, 1999 reflect the total
     after-tax increase of $603,000 related to the phthalate issue.


                                     Page 6
<PAGE>   9


     Management's Discussion and Analysis of Financial Condition and Results
                                  of Operations

Statements in this Report on Form 10-Q that are not strictly historical are
"forward-looking" statements, as defined in the Private Securities Litigation
Reform Act of 1995. Forward-looking statements are typically identified by the
words: believe, expects, anticipates, intends, is confident, estimates and
similar expressions which by their nature refer to future events.
Forward-looking statements involve risks, uncertainties or other factors which
may cause material differences in actual results or performance. These factors
include, but are not limited to, the successful introduction of new products,
growth in international sales, the outcome of a patent lawsuit, efficiencies
resulting from new order entry and warehouse systems, dependence on licensed
products, the renewal of licenses, reliance upon major customers and foreign
suppliers, competitive market pressures, changes in consumer preferences and in
the retail industry, risks related to year 2000 compliance and other factors,
described more fully in Exhibit 99 of the Annual Report on Form 10K for the year
ended December 31, 1998, filed with the Securities and Exchange Commission.
Forward looking statements speak only as of the date they are made and the
Company undertakes no obligation to update such statements in light of new
information or future events.

Net sales for the first nine months of 1999 were $103.6 million, an increase of
$.4 million or 0.4%, as compared to $103.2 million for the comparable period
last year. The increase was primarily due to a reversal of a portion of a 1998
accrual for sales returns of certain products containing diisononyl phthalate
("DINP"), a plastic softener, for which a charge was previously recorded in the
fourth quarter of 1998. The reversal is due to lower than expected sales returns
of such products. Excluding the effect on sales due to DINP, net sales remained
consistent at $103.2 million and were effected by a decline in sales of licensed
products. The decline in licensed products is part of an industry-wide trend
that reflects the cyclical nature of licenses in the juvenile industry. The
decreases were offset by increases in demand for non-licensed products.

Cost of products sold for the first nine months of 1999 was $59.9 million, a
decrease of $1.1 million, as compared to $61.0 million for the comparable period
last year. As a percentage of sales, cost of products sold in the first nine
months of 1999 decreased to 57.9% from 59.1% in the same period of 1998
resulting from lower than expected inventory write-offs of certain products
containing DINP for which a charge was previously recorded in the fourth quarter
of 1998. Without the adjustment related to DINP, cost of products sold, as a
percent of sales, would have decreased slightly to 58.8% from 59.1% due to
normal business fluctuations.


                                     Page 7
<PAGE>   10


         Management's Discussion and Analysis of Financial Condition and
                         Results of Operations (Con't)

Selling, general, and administrative expenses for the first nine months of 1999
were $30.5 million, an increase of $1.0 million or 3.7%, as compared to $29.5
million over such expenses for the first nine months of 1998. The increase
resulted primarily from costs related to legal expenses incurred in the defense
of a patent infringement lawsuit as well as expenses resulting from upgraded
logistics systems implemented in the Company's Avon Massachusetts warehouse. As
a percentage of net sales, selling, general, and administrative expenses for the
first nine months of 1999 increased to 29.5% from 28.5% in the comparable period
of 1998.

Income tax expense as a percentage of pretax income remained consistent at 40.5%
for the first nine months of 1999 and 1998.

Net working capital decreased by $0.6 million in the first nine months of 1999
primarily due to a decrease in cash related to the investing and financing
activities of the Company. Cash decreased by $5.9 million primarily due to the
repurchase of treasury stock shares amounting to $6.7 million and the purchase
of $3.8 million for property, plant, and equipment primarily for product molds,
new information technology systems and a new inventory racking system for the
Company's Avon Massachusetts warehouse facility. The cash outlays for the
investing and financing activities were offset by cash generated from profitable
operations which included an increase in accounts receivable of $3.5 million, a
decrease in accounts payable and accrued expenses of $1.5 million and a decrease
in prepaid expenses of $2.2 million. The changes in operational activity
accounts are due to normal business fluctuations.

On October 28, 1999 the Company announced that its Board of Directors has
approved an increase in the total dollar amount that can be used by the Company
to repurchase shares of common stock of the Company under the Company's
discretionary stock repurchase program. The total amount authorized by the Board
has been increased by 50% to $15 million from the original amount of $10
million. As of September 30, 1999, the Company has purchased 545,800 shares of
the Company's common stock at a cost of $6.7 million.

An unsecured bank line of credit of $10.0 million is subject to annual renewal.
Amounts outstanding under this line are payable upon demand by the bank. During
the first nine months of 1999 and 1998, the Company incurred no borrowings under
the line and had no balances outstanding as of September 30, 1999 and 1998,
respectively.


                                     Page 8
<PAGE>   11


         Management's Discussion and Analysis of Financial Condition and
                          Results of Operations (Con't)

YEAR 2000 ISSUE

The "Year 2000 Issue" (Y2K) relates to problems that may result from the
incorrect processing of information using dates or date sensitive data by
computers and other machines utilizing embedded microprocessors. The problem is
attributable to the computer or software recognizing the year as a two digit
number "00" as opposed to the Year "2000". As Year 2000 approaches, uncertainty
relating to these Y2K issues must be addressed in order to correct the problem
or properly plan contingencies to handle anticipated issues, if any.

The Company started addressing the Y2K issue in 1996 and has been following a
plan, in phases, to identify, inventory, prioritize and correct all known Y2K
issues. The project plan incorporates the various phases and will evaluate both
information technology (IT) related hardware and software as well as non-IT
issues such as facilities operations and product related technology.

The project will also attempt to obtain assurance from mission critical vendors
(banks, transfer agents, manufacturing suppliers, utilities and other suppliers
of critical services to the Company) about their Y2K readiness and develop
contingency plans for issues that may arise from the failure of those vendors as
well as customers to achieve Y2K compliance. The Company has substantially
completed its review of all IT related systems and currently believes those
systems are substantially Y2K compliant.

The Company substantially completed the identification and inventory phase of
the review of non-IT systems and mission critical third party relationships.
Based on the review of responses from third-party vendors, which has been
substantially completed, the Company has concluded that it's mission critical
third party vendors are representing to the Company that they have addressed
their Y2K issues and will be Y2K compliant by year end.

The Company has initiated the contingency planning phase of the Y2K project. A
committee, including members of senior management, has been formed to evaluate
the responses from mission critical third parties regarding assurance of their
Y2K readiness. Additionally, the committee has evaluated general operational
issues that may be affected by Y2K problems not limited to direct third party
relationships and has incorporated potential issues into a formal contingency
plan. The contingency plan development is substantially complete and various
aspects of the plan have been incorporated into the work processes and plans of
the Company so they are in place as Year 2000 approaches.


                                     Page 9
<PAGE>   12


         Management's Discussion and Analysis of Financial Condition and
                          Results of Operations (Con't)

YEAR 2000 ISSUE (con't)

The costs to address the Y2K Issue have not been and are not expected to be
material to the Company's financial position or have a material impact on
operating results. Since 1996 the Company has incurred expenses of approximately
$200,000 to address the Y2K issue. Additional expenses related to implementation
of the contingency plans, specifically, storage related to safety inventory, may
approximate $50,000 to $100,000 and is not anticipated to be material.
Additional costs do not consider costs, if any, related to the failure of third
party relationships to become "Year 2000" compliant.

All expenses incurred to date have been recognized as expense in the Company's
consolidated financial statements in the period incurred. Costs, if any, related
to the correction of Y2K issues caused by a third party's failure to be Y2K
compliant would be expensed as incurred.

Based on the Y2K assessment information currently obtained and corrections
implemented to date, the Company believes that the "Year 2000" Issue will not
have a material adverse effect on its financial position or results of
operations. The Company believes that its most reasonably likely, worst case
scenario may involve non-compliant third parties, including the failure of
suppliers, distributors, shipping carriers, utility companies and other similar
third parties to provide their services to the Company. The Company has
substantially completed the review of results of a vendor compliance survey
which facilitated the risk assessment and contingency planning phase of non-IT
related issues which included planning for worst case scenarios. However, there
can be no assurance that the failure to ensure "Year 2000" capability by a
supplier, customer, or another third party would not have a material adverse
effect on the Company.

In June 1998, the Financial Accounting Standards Board issued SFAS No. 133
"Accounting for Derivative Instruments and Hedging Activities," as amended in
May, 1999 by SFAS No. 137 which will require recognition of all derivatives as
either assets or liabilities on the balance sheet at fair value. The Company is
currently evaluating the effect of implementing SFAS No. 133, as amended, which
will be effective for the year beginning January 1, 2001.


                                     Page 10
<PAGE>   13


                              THE FIRST YEARS INC.

                           PART II - OTHER INFORMATION

Item 1: Legal Proceedings.

     On February 11, 1999, Mark A. Freeman and Timothy K. Stringer brought a
     civil action against the Company in the United States District Court for
     the District of Kansas, Civil Action No. 99 2058 KHV. The Complaint in the
     civil action alleges that the Company's Tumble Mates(R) valved drinking
     cups infringe U.S. Patent 5,186,347 and seeks injunctive relief, treble
     damages in an amount unspecified, and attorney fees. It is the Company's
     position that it does not infringe any valid claims of U.S. Patent
     5,186,347 and the Company is vigorously defending the civil action.

Items 2 through 5 - Not Applicable

Item 6: Exhibits and Reports on Form 8-K

     (a)  Exhibits - The following exhibits are filed as part of this Report:

<TABLE>
<CAPTION>
          Exhibit      Description
          -------      -----------

<S>                    <C>
           10(t)       The First Years Inc. 1993 Equity Incentive Plan,
                       as amended through May 20, 1999.
           10(u)       Employment Agreement between The First Years Inc. and
                       Ronald J. Sidman dated September 30, 1999.
           10(v)       Letter Agreement between The First Years Inc. and Jerome
                       M. Karp dated August 8, 1999.

           27          Financial Data Schedule
</TABLE>

     (b)  No reports on Form 8-K have been filed during the past quarter covered
          by this report.

Item 7A: Quantitative and Qualitative Disclosure about Market Risk

     At September 30, 1999, the Company held foreign currency forward contracts
     with a bank whereby the Company is committed to deliver foreign currency at
     predetermined rates. The contracts expire within one year. The Company's
     future commitment under these contracts totaled approximately $1,341,000
     and the fair market value of the contracts approximated their predetermined
     rates included therein.

     Also see the discussion of the Company's disclosure regarding Market Risk
     in Item 7A of Form 10K filed with the Securities and Exchange Commission.


                                     Page 11
<PAGE>   14


                              THE FIRST YEARS INC.

                                   SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.

                                   THE FIRST YEARS INC.
                                   --------------------
                                       Registrant



Date   11/12/99                       /s/   John R. Beals
    -------------------            ----------------------------
                                   John R. Beals, Senior Vice
                                   President and Treasurer,
                                   Duly Authorized Officer and
                                   Principal Financial Officer


                                     Page 12
<PAGE>   15


                              THE FIRST YEARS INC.

                                  EXHIBIT INDEX

<TABLE>
<CAPTION>
   Exhibit   Description                                                   Page
   -------   -----------                                                   ----


<S>          <C>
    10(t)    The First Years Inc. 1993 Equity Incentive Plan, as amended through
             May 20, 1999.

    10(u)    Employment Agreement between The First Years Inc. and Ronald J.
             Sidman dated September 30, 1999.

    10(v)    Letter Agreement between The First Years Inc. and Jerome M. Karp
             dated August 8, 1999.

    27       Financial Data Schedule
</TABLE>


                                     Page 13