Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Feb. 12, 2016 | Jun. 30, 2015 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | MAT | ||
Entity Registrant Name | MATTEL INC /DE/ | ||
Entity Central Index Key | 63,276 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 340,006,335 | ||
Entity Public Float | $ 8,698,634,000 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Current Assets | ||
Cash and equivalents | $ 892,814 | $ 971,650 |
Accounts receivable, net of allowances of $24.4 million and $26.3 million in 2015 and 2014, respectively | 1,145,099 | 1,094,452 |
Inventories | 587,521 | 561,755 |
Prepaid expenses and other current assets | 571,429 | 559,074 |
Total current assets | 3,196,863 | 3,186,931 |
Noncurrent Assets | ||
Property, plant, and equipment, net | 741,147 | 737,869 |
Goodwill | 1,384,520 | 1,392,925 |
Other noncurrent assets | 1,230,159 | 1,404,258 |
Total Assets | 6,552,689 | 6,721,983 |
Current Liabilities | ||
Short-term borrowings | 16,914 | 0 |
Current portion of long-term debt | 300,000 | 0 |
Accounts payable | 651,681 | 430,259 |
Inventories | 658,225 | 639,844 |
Income taxes payable | 18,752 | 18,783 |
Total current liabilities | 1,645,572 | 1,088,886 |
Noncurrent Liabilities | ||
Long-term debt | 1,800,000 | 2,100,000 |
Other noncurrent liabilities | 473,863 | 584,026 |
Total noncurrent liabilities | $ 2,273,863 | $ 2,684,026 |
Commitments and Contingencies | ||
Stockholders' Equity | ||
Common stock $1.00 par value, 1.0 billion shares authorized; 441.4 million shares issued | $ 441,369 | $ 441,369 |
Additional paid-in capital | 1,789,870 | 1,767,096 |
Treasury stock at cost: 101.7 million shares and 103.3 million shares in 2015 and 2014, respectively | (2,494,901) | (2,533,566) |
Retained earnings | 3,745,815 | 3,896,261 |
Accumulated other comprehensive loss | (848,899) | (622,089) |
Total stockholders’ equity | 2,633,254 | 2,949,071 |
Total Liabilities and Stockholders’ Equity | $ 6,552,689 | $ 6,721,983 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowances | $ 24.4 | $ 26.3 |
Common stock, par value | $ 1 | $ 1 |
Common stock, shares authorized | 1,000,000,000 | 1,000,000,000 |
Common stock, shares issued | 441,400,000 | 441,400,000 |
Treasury stock, shares | 101,700,000 | 103,300,000 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Statement [Abstract] | |||
Net Sales | $ 5,702,613 | $ 6,023,819 | $ 6,484,892 |
Cost of sales | 2,896,255 | 3,022,797 | 3,006,009 |
Gross Profit | 2,806,358 | 3,001,022 | 3,478,883 |
Advertising and promotion expenses | 717,852 | 733,243 | 750,205 |
Other selling and administrative expenses | 1,547,584 | 1,614,065 | 1,560,575 |
Operating Income | 540,922 | 653,714 | 1,168,103 |
Interest expense | 85,270 | 79,271 | 78,505 |
Interest (income) | (7,230) | (7,382) | (5,555) |
Other non-operating (income), net | (1,033) | (5,085) | (3,975) |
Income Before Income Taxes | 463,915 | 586,910 | 1,099,128 |
Provision for income taxes | 94,499 | 88,036 | 195,184 |
Net Income | $ 369,416 | $ 498,874 | $ 903,944 |
Net Income Per Common Share-Basic (in USD per share) | $ 1.08 | $ 1.46 | $ 2.61 |
Weighted average number of common shares (in shares) | 339,172 | 339,016 | 343,394 |
Net Income Per Common Share-Diluted (in USD per share) | $ 1.08 | $ 1.45 | $ 2.58 |
Weighted average number of common and potential common shares (in shares) | 339,748 | 340,768 | 347,459 |
Dividends Declared Per Common Share (in USD per share) | $ 1.52 | $ 1.52 | $ 1.44 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Statement of Comprehensive Income [Abstract] | |||
Net Income | $ 369,416 | $ 498,874 | $ 903,944 |
Other Comprehensive (Loss) Income, Net of Tax: | |||
Currency translation adjustments | (213,797) | (189,666) | (29,694) |
Defined benefit pension plan adjustments | 1,649 | (29,561) | 58,710 |
Net unrealized (losses) gains on derivative instruments: | |||
Unrealized holding gains (losses) | 37,926 | 39,931 | (13,103) |
Reclassification adjustment for realized (gains) losses included in net income | (52,588) | 883 | 4,897 |
Net unrealized gains (losses) on derivative instruments | (14,662) | 40,814 | (8,206) |
Other Comprehensive (Loss) Income, Net of Tax | (226,810) | (178,413) | 20,810 |
Comprehensive Income | $ 142,606 | $ 320,461 | $ 924,754 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Cash Flows From Operating Activities: | |||
Net Income | $ 369,416 | $ 498,874 | $ 903,944 |
Adjustments to reconcile net income to net cash flows from operating activities: | |||
Depreciation | 233,025 | 207,701 | 179,333 |
Amortization | 32,402 | 41,000 | 17,060 |
Asset impairment | 0 | 0 | 14,000 |
Deferred income taxes | 4,133 | 8,142 | 19,632 |
Share-based compensation | 56,691 | 51,993 | 61,651 |
Decrease (increase) from changes in assets and liabilities, net of acquired assets and liabilities: | |||
Accounts receivable | (136,259) | 90,285 | (48,802) |
Inventories | (74,262) | 43,392 | (116,509) |
Prepaid expenses and other current assets | (36,865) | (25,319) | (43,159) |
Accounts payable, accrued liabilities, and income taxes payable | 248,047 | (34,653) | (201,868) |
Other, net | 38,229 | 7,149 | (86,856) |
Net cash flows from operating activities | 734,557 | 888,564 | 698,426 |
Cash Flows From Investing Activities: | |||
Purchases of tools, dies, and molds | (142,363) | (147,236) | (128,080) |
Purchases of other property, plant, and equipment | (111,818) | (113,221) | (123,974) |
Payments for acquisition, net of cash acquired | 0 | (423,309) | 0 |
(Payments) proceeds from foreign currency forward exchange contracts | (61,509) | (19,933) | 12,849 |
Other, net | 33,195 | (4,853) | (2,901) |
Net cash flows used for investing activities | (282,495) | (708,552) | (242,106) |
Cash Flows From Financing Activities: | |||
Payments of short-term borrowings, net | 0 | (4,278) | (9,844) |
Proceeds from short-term borrowings, net | 16,914 | 0 | 4,278 |
Payments of long-term borrowings | 0 | (44,587) | (400,000) |
Proceeds from long-term borrowings, net | 0 | 495,459 | 495,260 |
Payment of credit facility renewal costs | 0 | 0 | (4,003) |
Share repurchases | 0 | (177,162) | (492,740) |
Payment of dividends on common stock | (515,073) | (514,813) | (494,371) |
Proceeds from exercise of stock options | 14,995 | 43,299 | 134,506 |
Other, net | (17,058) | (25,237) | 26,952 |
Net cash flows used for financing activities | (500,222) | (227,319) | (739,962) |
Effect of Currency Exchange Rate Changes on Cash | (30,676) | (20,259) | (12,853) |
Decrease in Cash and Equivalents | (78,836) | (67,566) | (296,495) |
Cash and Equivalents at Beginning of Year | 971,650 | 1,039,216 | 1,335,711 |
Cash and Equivalents at End of Year | 892,814 | 971,650 | 1,039,216 |
Cash paid during the year for: | |||
Income taxes, gross | 120,232 | 141,964 | 175,603 |
Interest | $ 83,005 | $ 79,122 | $ 81,874 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Treasury Stock | Retained Earnings | Accumulated Other Comprehensive Loss |
Balance, Beginning of Period at Dec. 31, 2012 | $ 3,067,044 | $ 441,369 | $ 1,727,682 | $ (2,152,702) | $ 3,515,181 | $ (464,486) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net Income | 903,944 | 903,944 | ||||
Other comprehensive income, net of tax | 20,810 | 20,810 | ||||
Purchase of treasury stock | (469,218) | (469,218) | ||||
Issuance of treasury stock for stock option exercises | 134,747 | (17,531) | 152,278 | |||
Issuance of treasury stock for restricted stock units vesting | (18,962) | (39,293) | 20,331 | |||
Deferred compensation | 20 | 610 | (590) | |||
Share-based compensation | 61,651 | 61,651 | ||||
Tax benefits from share-based payment arrangements | 50,374 | 50,374 | ||||
Dividend equivalents for restricted stock units | (4,480) | 1,562 | (6,042) | |||
Dividends | (494,371) | (494,371) | ||||
Balance, End of Period at Dec. 31, 2013 | 3,251,559 | 441,369 | 1,784,445 | (2,448,701) | 3,918,122 | (443,676) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net Income | 498,874 | 498,874 | ||||
Other comprehensive income, net of tax | (178,413) | (178,413) | ||||
Purchase of treasury stock | (177,162) | (177,162) | ||||
Issuance of treasury stock for stock option exercises | 42,270 | (4,053) | 46,323 | |||
Issuance of treasury stock for restricted stock units vesting | (42,525) | (87,827) | 45,302 | |||
Deferred compensation | 129 | 672 | (543) | |||
Share-based compensation | 51,993 | 51,993 | ||||
Tax benefits from share-based payment arrangements | 21,187 | 21,187 | ||||
Dividend equivalents for restricted stock units | (4,028) | 1,351 | (5,379) | |||
Dividends | (514,813) | (514,813) | ||||
Balance, End of Period at Dec. 31, 2014 | 2,949,071 | 441,369 | 1,767,096 | (2,533,566) | 3,896,261 | (622,089) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net Income | 369,416 | 369,416 | ||||
Other comprehensive income, net of tax | (226,810) | (226,810) | ||||
Purchase of treasury stock | 0 | 0 | ||||
Issuance of treasury stock for stock option exercises | 14,998 | (3,822) | 18,820 | |||
Issuance of treasury stock for restricted stock units vesting | (9,080) | (28,425) | 19,345 | |||
Deferred compensation | 0 | 500 | (500) | |||
Share-based compensation | 56,691 | 56,691 | ||||
Tax deficiencies from share-based payment arrangements | (2,780) | (2,780) | ||||
Dividend equivalents for restricted stock units | (3,179) | 1,110 | (4,289) | |||
Dividends | (515,073) | (515,073) | ||||
Balance, End of Period at Dec. 31, 2015 | $ 2,633,254 | $ 441,369 | $ 1,789,870 | $ (2,494,901) | $ 3,745,815 | $ (848,899) |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Principles of Consolidation and Basis of Preparation The consolidated financial statements include the accounts of Mattel, Inc. and its subsidiaries. All wholly and majority-owned subsidiaries are consolidated and included in Mattel’s consolidated financial statements. Mattel does not have any minority stock ownership interests in which it has a controlling financial interest that would require consolidation. All significant intercompany accounts and transactions have been eliminated upon consolidation. Use of Estimates Preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (“US GAAP”) requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could ultimately differ from those estimates. Cash and Equivalents Cash and equivalents include short-term investments, which are highly liquid investments with maturities of three months or less when purchased. Such investments are stated at cost, which approximates market value. Accounts Receivable and Allowance for Doubtful Accounts Credit is granted to customers on an unsecured basis. Credit limits and payment terms are established based on extensive evaluations made on an ongoing basis throughout the fiscal year of the financial performance, cash generation, financing availability, and liquidity status of each customer. Customers are reviewed at least annually, with more frequent reviews performed as necessary, based on the customers’ financial condition and the level of credit being extended. For customers who are experiencing financial difficulties, management performs additional financial analyses before shipping to those customers on credit. Mattel uses a variety of financial arrangements to ensure collectibility of accounts receivable of customers deemed to be a credit risk, including requiring letters of credit, purchasing various forms of credit insurance with unrelated third parties, factoring, or requiring cash in advance of shipment. Mattel records an allowance for doubtful accounts based on management’s assessment of the business environment, customers’ financial condition, historical collection experience, accounts receivable aging, and customer disputes. Inventories Inventories, net of an allowance for excess quantities and obsolescence, are stated at the lower of cost or market. Inventory allowances are charged to cost of sales and establish a lower cost basis for the inventory. Cost is determined by the first-in, first-out method. Property, Plant, and Equipment Property, plant, and equipment are stated at cost less accumulated depreciation. Depreciation is computed using the straight-line method over estimated useful lives of 10 to 30 years for buildings, 3 to 15 years for machinery and equipment, 3 to 10 years for software, and 10 to 20 years, not to exceed the lease term, for leasehold improvements. Tools, dies, and molds are depreciated using the straight-line method over 3 years. Estimated useful lives are periodically reviewed and, where appropriate, changes are made prospectively. The carrying value of property, plant, and equipment is reviewed when events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. Any potential impairment identified is assessed by evaluating the operating performance and future undiscounted cash flows of the underlying assets. When property is sold or retired, the cost of the property and the related accumulated depreciation are removed from the consolidated balance sheet, and any resulting gain or loss is included in the results of operations. Goodwill and Intangible Assets Goodwill is allocated to various reporting units, which are at the operating segment level, for purposes of evaluating whether goodwill is impaired. Mattel’s reporting units are: (i) North America, (ii) International, and (iii) American Girl. Components of the operating segments have been aggregated into a single reporting unit as the components have similar economic characteristics. The similar economic characteristics include the nature of the products, the nature of the production processes, the customers, and the manner in which the products are distributed. Mattel tests its goodwill for impairment annually in the third quarter and whenever events or changes in circumstances indicate that the carrying value of a reporting unit may exceed its fair value. Mattel tests its nonamortizable intangible assets, including trademarks and trade names, for impairment by comparing the estimated fair values of the nonamortizable intangible assets with the carrying values. Mattel tests nonamortizable intangible assets for impairment annually in the third quarter or whenever events or changes in circumstances indicate that the carrying value may exceed its fair value. Mattel also tests its amortizable intangible assets, which are primarily comprised of trademarks and trade names, for impairment whenever events or changes in circumstances indicate that the carrying value of the asset may not be recovered. Foreign Currency Translation Exposure Mattel’s reporting currency is the US dollar. The translation of its net investments in subsidiaries with non-US dollar functional currencies subjects Mattel to the impact of currency exchange rate fluctuations in its results of operations and financial position. Assets and liabilities of subsidiaries with non-US dollar functional currencies are translated into US dollars at year-end exchange rates. Income, expense, and cash flow items are translated at weighted average exchange rates prevailing during the year. The resulting currency translation adjustments are recorded as a component of accumulated other comprehensive loss within stockholders’ equity. Mattel’s primary currency translation exposures in 2015 were related to its net investments in entities having functional currencies denominated in the Euro, Brazilian real, Mexican peso, and British pound sterling. Foreign Currency Transaction Exposure Currency exchange rate fluctuations may impact Mattel’s results of operations and cash flows. Mattel’s currency transaction exposures include gains and losses realized on unhedged inventory purchases and unhedged receivables and payables balances that are denominated in a currency other than the applicable functional currency. Gains and losses on unhedged inventory purchases and other transactions associated with operating activities are recorded in the components of operating income in the consolidated statement of operations. Gains and losses on unhedged intercompany loans and advances are recorded as a component of other non-operating (income) expense, net in the consolidated statement of operations in the period in which the currency exchange rate changes. Inventory transactions denominated in the Euro, British pound sterling, Mexican peso, Australian dollar, Canadian dollar, Brazilian real, Russian ruble, Malaysian ringgit, and Indonesian rupiah were the primary transactions that caused foreign currency transaction exposure for Mattel in 2015. Derivative Instruments Mattel uses foreign currency forward exchange contracts as cash flow hedges primarily to hedge its purchases and sales of inventory denominated in foreign currencies. At the inception of the contracts, Mattel designates these derivatives as cash flow hedges and documents the relationship of the hedge to the underlying transaction. Hedge effectiveness is assessed at inception and throughout the life of the hedge to ensure the hedge qualifies for hedge accounting. Changes in fair value associated with hedge ineffectiveness, if any, are recorded in the results of operations. Changes in fair value of cash flow hedge derivatives are deferred and recorded as part of accumulated other comprehensive loss in stockholders’ equity until the underlying transaction affects earnings. In the event that an anticipated transaction is no longer likely to occur, Mattel recognizes the change in fair value of the derivative in its results of operations in the period the determination is made. Additionally, Mattel uses foreign currency forward exchange contracts to hedge intercompany loans and advances denominated in foreign currencies. Due to the short-term nature of the contracts involved, Mattel does not use hedge accounting for these contracts, and as such, changes in fair value are recorded in the period of change in the consolidated statements of operations. Revenue Recognition and Sales Adjustments Revenue is recognized upon shipment or upon receipt of products by the customer, depending on the terms, provided that: there are no uncertainties regarding customer acceptance; persuasive evidence of an agreement exists documenting the specific terms of the transaction; the sales price is fixed or determinable; and collectibility is reasonably assured. Management assesses the business environment, the customer’s financial condition, historical collection experience, accounts receivable aging, and customer disputes to determine whether collectibility is reasonably assured. If collectibility is not considered reasonably assured at the time of sale, Mattel does not recognize revenue until collection occurs. Value added taxes are recorded on a net basis and are excluded from revenue. Mattel routinely enters into arrangements with its customers to provide sales incentives, support customer promotions, and provide allowances for returns and defective merchandise. Such programs are based primarily on customer purchases, customer performance of specified promotional activities, and other specified factors such as sales to consumers. The costs of these programs are recorded as sales adjustments that reduce gross revenue in the period the related revenue is recognized. Advertising and Promotion Costs Costs of media advertising are expensed the first time the advertising takes place, except for direct-response advertising, which is capitalized and amortized over its expected period of future benefits. Direct-response advertising consists primarily of catalog production and mailing costs, which are generally amortized within three months from the date the catalogs are mailed. Product Recalls and Withdrawals Mattel establishes a reserve for product recalls and withdrawals on a product-specific basis when circumstances giving rise to the recall or withdrawal become known. Facts and circumstances related to the recall or withdrawal, including where the product affected by the recall or withdrawal is located (e.g., with consumers, in customers’ inventory, or in Mattel’s inventory), cost estimates for shipping and handling for returns, cost estimates for communicating the recall or withdrawal to consumers and customers, and cost estimates for parts and labor if the recalled or withdrawn product is deemed to be repairable, are considered when establishing a product recall or withdrawal reserve. These factors are updated and reevaluated each period, and the related reserves are adjusted when these factors indicate that the recall or withdrawal reserve is either not sufficient to cover or exceeds the estimated product recall or withdrawal expenses. Design and Development Costs Product design and development costs primarily include employee compensation and outside services and are charged to the results of operations as incurred. Employee Benefit Plans Mattel and certain of its subsidiaries have retirement and other postretirement benefit plans covering substantially all employees of these companies. Actuarial valuations are used in determining amounts recognized in the financial statements for certain retirement and other postretirement benefit plans (see “Note 4 to the Consolidated Financial Statements—Employee Benefit Plans”). Share-Based Payments Mattel recognizes the cost of employee share-based payment awards on a straight-line attribution basis over the requisite employee service period, net of estimated forfeitures. In determining when additional tax benefits associated with share-based payment exercises are recognized, Mattel follows the ordering of deductions under the tax law, which allows deductions for share-based payment exercises to be utilized before previously existing net operating loss carryforwards. Determining the fair value of share-based awards at the measurement date requires judgment, including estimating the expected term that stock options will be outstanding prior to exercise, the associated volatility, and the expected dividends. Mattel estimates the fair value of options granted using the Black-Scholes valuation model. The expected life of the options used in this calculation is the period of time the options are expected to be outstanding and has been determined based on historical exercise experience. Expected stock price volatility is based on the historical volatility of Mattel’s stock for a period approximating the expected life, the expected dividend yield is based on Mattel’s most recent actual annual dividend payout, and the risk-free interest rate is based on the implied yield available on US Treasury zero-coupon issues approximating the expected life. Judgment is also required in estimating the amount of share-based awards that will be forfeited prior to vesting. Income Taxes Certain income and expense items are accounted for differently for financial reporting and income tax purposes. Deferred income tax assets and liabilities are determined based on the difference between the financial statement and tax bases of assets and liabilities, applying enacted statutory income tax rates in effect for the year in which the differences are expected to reverse. In the normal course of business, Mattel is regularly audited by federal, state, local, and foreign tax authorities. The ultimate settlement of any particular issue with the applicable taxing authority could have a material impact on Mattel’s consolidated financial statements. Venezuelan Operations Since 2010, Mattel has accounted for Venezuela as a highly inflationary economy and, accordingly, Mattel’s Venezuelan subsidiary uses the US dollar as its functional currency. Mattel’s Venezuelan subsidiary has been unable to access US dollars as a result of currency restrictions enacted by the Venezuelan government. These currency restrictions, along with economic and political instability, continue to impact the operating results of Mattel’s Venezuelan subsidiary. Mattel's Venezuelan subsidiary currently uses the official exchange rate as its remeasurement rate. During February 2015, the Venezuelan government announced the launch of a new three-tiered currency exchange platform, which included a new exchange system called the Marginal Currency System ("SIMADI"). During February 2016, the Venezuelan government revised its official exchange rate to 10.00 BsF per US dollar and eliminated the intermediate tier. The official exchange rate will be used for essential imports, such as food and medicine, and the SIMADI rate will be used for all other transactions. Had Mattel used the new official exchange rate of 10.00 BsF per US dollar as of December 31, 2015 as its remeasurement rate, it would have recognized a pre-tax charge of approximately $8 million in its consolidated statements of operations. Had Mattel used the SIMADI rate of 198.70 BsF per US dollar as of December 31, 2015 as its remeasurement rate, it would have recognized a pre-tax charge of approximately $22 million in its consolidated statements of operations. However, Mattel is continuing to evaluate its remeasurement rate and is considering a change of its remeasurement rate to the SIMADI rate in the first quarter of 2016, which would result in a pre-tax charge of approximately $22 million . Mattel’s Venezuelan subsidiary represented less than 0.01% of Mattel’s consolidated net sales in 2015 and had approximately $22 million of net monetary assets denominated in Venezuelan bolivar fuerte as of December 31, 2015. If the Venezuelan bolivar fuerte significantly devalues in the future, or if the economic or political conditions in Venezuela significantly worsen, Mattel may consider ceasing operations of its Venezuelan subsidiary, which could result in a pre-tax charge to its consolidated statement of operations of up to $95 million . New Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers (Topic 606) , which supersedes the revenue recognition requirements in Accounting Standards Codification (“ASC”) 605, Revenue Recognition , and most industry-specific guidance. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The new guidance establishes a five-step model to achieve that core principle and also requires additional disclosures about the nature, amount, timing, and uncertainty of revenue and cash flows arising from customer contracts. ASU 2014-09 was originally effective for interim and annual reporting periods beginning after December 15, 2016. In August 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers (Topic 606) – Deferral of the Effective Date , which defers the effective date to annual reporting periods beginning after December 15, 2017. Early application is permitted after December 15, 2016. Mattel is currently evaluating the impact of the adoption of ASU 2014-09 and ASU 2015-14 on its operating results and financial position. In June 2014, the FASB issued ASU 2014-12, Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period , which requires that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. ASU 2014-12 will be effective for interim and annual reporting periods beginning after December 15, 2015. Early application is permitted. Mattel is currently evaluating the impact of the adoption of ASU 2014-12 on its operating results and financial position. In April 2015, the FASB issued ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs , which requires debt issuance costs to be presented in the balance sheet as a direct deduction from the associated debt liability. ASU 2015-03 will not change the amortization of debt issuance costs, which will continue to follow the existing accounting guidance. In August 2015, the FASB issued ASU 2015-15, Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements , which permits debt issuance costs associated with line-of-credit arrangements to continue to be deferred and presented as an asset in the balance sheet and subsequently amortized ratably over the term of the line-of-credit arrangement. ASU 2015-03 and ASU 2015-15 will be effective for interim and annual reporting periods beginning after December 15, 2015. Early application is permitted. Mattel is currently evaluating the impact of the adoption of ASU 2015-03 and ASU 2015-15 on its operating results and financial position. In May 2015, the FASB issued ASU 2015-07, Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent) , which removes the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the net asset value per share practical expedient. ASU 2015-07 additionally removes the requirement to make certain disclosures for all investments that are eligible to be measured at fair value using the net asset value per share practical expedient. ASU 2015-07 will be effective for interim and annual reporting periods beginning after December 15, 2015. Early application is permitted. Mattel is currently evaluating the impact of the adoption of ASU 2015-07 on its financial statement disclosures. In July 2015, the FASB issued ASU 2015-11, Simplifying the Measurement of Inventory , which requires an entity that uses first-in, first-out or average cost to measure its inventory at the lower of cost or net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. ASU 2015-11 will be effective for interim and annual reporting periods beginning after December 15, 2016. Early application is permitted. Mattel is currently evaluating the impact of the adoption of ASU 2015-11 on its operating results and financial position. In September 2015, the FASB issued ASU 2015-16, Simplifying the Accounting for Measurement-Period Adjustments , which requires that an acquirer recognize adjustments to provisional amounts recognized in a business combination in the reporting period in which the adjustment amounts are determined. It also requires disclosure of the adjustment recorded in current period earnings by line item that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date. ASU 2015-16 eliminates the requirement to retrospectively revise comparative information for prior periods. ASU 2015-16 will be effective for interim and annual reporting periods beginning after December 15, 2015. Early application is permitted. Mattel is currently evaluating the impact of the adoption of ASU 2015-16 on its financial statement disclosures. In November 2015, the FASB issued ASU 2015-17, Balance Sheet Classification of Deferred Taxes , which conforms US GAAP to IFRS by requiring that all deferred taxes be presented as noncurrent. This guidance does not change the existing requirement that only permits offsetting within a jurisdiction. ASU 2015-17 will be effective for interim and annual reporting periods beginning after December 15, 2016. Early application is permitted. Mattel is currently evaluating the impact of the adoption of ASU 2015-17 on its financial position. |
Goodwill and Other Intangibles
Goodwill and Other Intangibles | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangibles | Goodwill and Other Intangibles Goodwill is allocated to various reporting units, which are at the operating segment level, for purposes of evaluating whether goodwill is impaired. Mattel’s reporting units are: (i) North America, (ii) International, and (iii) American Girl. Components of the operating segments have been aggregated into a single reporting unit as the components have similar economic characteristics. The similar economic characteristics include the nature of the products, the nature of the production processes, the customers, and the manner in which the products are distributed. The change in the carrying amount of goodwill by operating segment for 2015 and 2014 is shown below. Brand-specific goodwill held by foreign subsidiaries is allocated to the North America and American Girl operating segments selling those brands, thereby causing a foreign currency translation impact for these operating segments. North America International American Girl Total (In thousands) Balance at December 31, 2013 $ 547,595 $ 321,656 $ 213,988 $ 1,083,239 Acquisition (a) 175,608 143,679 — 319,287 Currency exchange rate impact (2,264 ) (6,569 ) (768 ) (9,601 ) Balance at December 31, 2014 720,939 458,766 213,220 1,392,925 Currency exchange rate impact (1,940 ) (5,887 ) (578 ) (8,405 ) Balance at December 31, 2015 $ 718,999 $ 452,879 $ 212,642 $ 1,384,520 (a) Balance has been retrospectively adjusted to reflect final purchase price allocation of the MEGA Brands Inc. acquisition. In the third quarter of 2015 , Mattel performed its annual impairment tests and determined that goodwill was not impaired since each reporting unit's fair value exceeded its carrying value. Mattel has not recorded any goodwill impairment charges since it initially adopted the provisions of ASC 350-20, Goodwill. Acquisition of MEGA Brands Inc. On April 30, 2014, Mattel acquired MEGA Brands Inc., a corporation incorporated under the laws of Canada (“MEGA Brands”), pursuant to the Arrangement Agreement dated as of February 27, 2014, between MEGA Brands, Mattel Overseas Operations Ltd., a corporation incorporated under the laws of Bermuda, Mattel-MEGA Holdings Inc., a corporation incorporated under the laws of Canada (the “Purchasing Subsidiary”), and, with respect to certain provisions thereof, Mattel (the “Arrangement Agreement”). Pursuant to the terms set forth in the Arrangement Agreement, Mattel indirectly acquired, through the Purchasing Subsidiary, 100% of the issued and outstanding common shares and warrants of MEGA Brands for total cash consideration of $454.9 million , including payment for cash acquired of $31.6 million . The acquisition of MEGA Brands builds upon Mattel’s portfolio of brands by expanding into the construction building sets and arts and crafts categories. The total purchase consideration was allocated to the assets acquired and liabilities assumed based on their estimated fair values. As a result of the acquisition, Mattel recognized $95.0 million of identifiable intangible assets (primarily related to trade names and existing product lines), $40.6 million of net assets acquired (which included $31.6 million of cash, $36.6 million of accounts receivable, $83.0 million of inventory, $32.5 million of property, plant, and equipment, $66.6 million of accounts payable and accrued liabilities, $44.6 million of long-term debt, and $31.9 million of other net liabilities), and $319.3 million of goodwill, which is not deductible for tax purposes. The fair values of the identifiable intangible assets related to trade names were based on the relief from royalty method, using Level 3 inputs within the fair value hierarchy, which included forecasted future cash flows, long-term revenue growth rates, royalty rates, and discount rates. The fair values of the identifiable intangible assets related to existing product lines were estimated based on the multi-period excess earnings method, using Level 3 inputs within the fair value hierarchy, which included forecasted future cash flows, long-term revenue growth rates, and discount rates. Goodwill relates to a number of factors built into the purchase price, including the future earnings and cash flow potential of the business, as well as the complementary strategic fit and the resulting synergies it brings to Mattel’s existing operations. Mattel finalized the valuation of the assets acquired and liabilities assumed in the first quarter of 2015 , which resulted in adjustments to the purchase price allocation during the measurement period. As such, Mattel has retrospectively adjusted the provisional amounts recorded in its consolidated balance sheet as of December 31, 2014 as if the valuation of the assets acquired and liabilities assumed was finalized on the acquisition date. For the consolidated balance sheet as of December 31, 2014, the retrospective adjustments resulted in an increase to net assets acquired of approximately $1 million and a decrease to goodwill of approximately $1 million . During 2015 , Mattel recognized approximately $11 million of integration costs. There were no transaction costs during 2015 . During 2014 , Mattel recognized approximately $21 million and $7 million of integration costs and transaction costs, respectively. Integration and transaction costs are recorded within other selling and administrative expenses in the consolidated statements of operations. The pro forma and actual results of operations for this acquisition have not been presented because they are not material. Other Intangibles Identifiable intangibles include the following: December 31, 2015 2014 (In thousands) Nonamortizable identifiable intangibles $ 488,144 $ 498,517 Identifiable intangibles (net of amortization of $131.5 and $103.6 million at December 31, 2015 and 2014, respectively) 212,161 240,227 $ 700,305 $ 738,744 In connection with the acquisition of MEGA Brands during 2014, Mattel recognized $95.0 million of amortizable identifiable intangible assets, primarily related to trade names and existing product lines. During the second quarter of 2013, Mattel changed its brand strategy for Polly Pocket ® , which includes a more focused allocation of resources to support the Polly Pocket brand in specific markets, resulting in a reduction of the forecasted future cash flows of the brand. As a result of the change, Mattel tested the Polly Pocket trade name for impairment. The Polly Pocket trade name, which had a carrying value of approximately $113 million , was previously determined to be a nonamortizable intangible asset. Its fair value was determined to be approximately $99 million based on a discounted cash flow analysis using the multi-period excess earnings method. Level 3 inputs, including forecasted future cash flows, an estimated useful life, and a discount rate, were used in the valuation. As the fair value of the asset was below the carrying value, Mattel recorded an impairment charge of approximately $14 million , which was reflected within other selling and administrative expenses in the consolidated statement of operations for the North America and International operating segments during 2013. In conjunction with the Polly Pocket trade name impairment test, Mattel reassessed the intangible asset’s nonamortizable classification and determined that the nonamortizable classification could no longer be supported. During the second quarter of 2013, the Polly Pocket trade name was reclassified as an amortizable intangible asset, and the remaining fair value of the asset is being amortized over its estimated remaining useful life. Mattel tests nonamortizable intangible assets, including trademarks and trade names, for impairment annually in the third quarter and whenever events or changes in circumstances indicate that the carrying values may exceed the fair values. During 2015, Mattel performed the annual impairment tests and determined that its nonamortizable intangible assets were not impaired. Mattel also tests its amortizable intangible assets for impairment whenever events or changes in circumstances indicate that the carrying value of the asset may not be recoverable. Mattel determined that its amortizable intangible assets were not impaired during 2015. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 3—Income Taxes Consolidated pre-tax income consists of the following: For the Year 2015 2014 2013 (In thousands) US operations $ (3,435 ) $ 39,149 $ 231,372 Foreign operations 467,350 547,761 867,756 $ 463,915 $ 586,910 $ 1,099,128 The provision (benefit) for current and deferred income taxes consists of the following: For the Year 2015 2014 2013 (In thousands) Current Federal $ (1,405 ) $ (25,075 ) $ 38,227 State 1,946 (2,029 ) 6,447 Foreign 89,825 106,998 130,878 90,366 79,894 175,552 Deferred Federal (3,802 ) 21,987 30,342 State (2,200 ) 8,233 (512 ) Foreign 10,135 (22,078 ) (10,198 ) 4,133 8,142 19,632 Provision for income taxes $ 94,499 $ 88,036 $ 195,184 Deferred income taxes are provided principally for tax credit carryforwards, research and development expenses, net operating loss carryforwards, employee compensation-related expenses, and certain other reserves that are recognized in different years for financial statement and income tax reporting purposes. Mattel’s deferred income tax assets (liabilities) are composed of the following: December 31, 2015 2014 (In thousands) Allowances and reserves $ 211,538 $ 233,434 Research and development expenses 191,057 189,694 Loss carryforwards 150,270 172,347 Deferred compensation 98,832 91,530 Tax credit carryforwards 50,309 54,674 Postretirement benefits 48,648 50,235 Intangible assets 14,035 30,803 Other 71,453 68,604 Gross deferred income tax assets 836,142 891,321 Intangible assets (305,818 ) (298,444 ) Other (2,905 ) (3,868 ) Gross deferred income tax liabilities (308,723 ) (302,312 ) Deferred income tax asset valuation allowances (77,334 ) (133,297 ) Net deferred income tax assets $ 450,085 $ 455,712 Net deferred income tax assets are reported in the consolidated balance sheets as follows: December 31, 2015 2014 (In thousands) Prepaid expenses and other current assets $ 195,804 $ 195,841 Other noncurrent assets 317,391 385,434 Accrued liabilities (43 ) (181 ) Other noncurrent liabilities (63,067 ) (125,382 ) $ 450,085 $ 455,712 As of December 31, 2015 , Mattel had federal and foreign loss carryforwards totaling $640.6 million and tax credit carryforwards of $50.3 million , which excludes carryforwards that do not meet the threshold for recognition in the financial statements. Utilization of these loss and tax credit carryforwards is subject to annual limitations. Mattel’s loss and tax credit carryforwards expire in the following periods: Loss Carryforwards Tax Credit Carryforwards (In thousands) 2016 – 2020 $ 76,686 $ 684 Thereafter 316,722 45,682 No expiration date 247,200 3,943 Total $ 640,608 $ 50,309 Management considered all available evidence under existing tax law and anticipated expiration of tax statutes and determined that a valuation allowance of $62.2 million was required as of December 31, 2015 for those loss and tax credit carryforwards that are not expected to provide future tax benefits. In addition, management determined that a valuation allowance of $15.1 million was required as of December 31, 2015 for those deferred tax assets for which there is not sufficient evidence as to their ultimate utilization, primarily related to certain foreign affiliates. Changes in the valuation allowance for 2015 primarily relate to (1) decreases in the valuation allowance related to 2015 foreign losses without benefits, (2) certain deferred tax assets and (3) expirations of tax loss and/or tax credit carryforwards. Management believes it is more-likely-than-not (a greater than 50 percent likelihood) that Mattel will generate sufficient taxable income in the appropriate future periods to realize the benefit of the remaining net deferred income tax assets of $450.1 million . Changes in enacted tax laws, audits in various jurisdictions around the world, settlements, or acquisitions could negatively impact Mattel’s ability to fully realize all of the benefits of its remaining net deferred tax assets. Differences between the provision for income taxes at the US federal statutory income tax rate and the provision in the consolidated statements of operations are as follows: For the Year 2015 2014 2013 (In thousands) Provision at US federal statutory rate $ 162,370 $ 205,419 $ 384,695 (Decrease) increase resulting from: Foreign earnings taxed at different rates, including withholding taxes (56,877 ) (107,409 ) (165,768 ) Foreign losses without income tax benefit 5,843 20,140 3,215 State and local taxes, net of US federal benefit 482 3,760 4,854 Adjustments to previously accrued taxes (19,134 ) (55,026 ) (32,200 ) Tax restructuring — 12,400 — Other 1,815 8,752 388 Provision for income taxes $ 94,499 $ 88,036 $ 195,184 In assessing whether uncertain tax positions should be recognized in its financial statements, Mattel first determines whether it is more-likely-than-not that a tax position will be sustained upon examination, including resolution of any related appeals or litigation processes, based on the technical merits of the position. In evaluating whether a tax position has met the more-likely-than-not recognition threshold, Mattel presumes that the position will be examined by the appropriate taxing authority that would have full knowledge of all relevant information. For tax positions that meet the more-likely-than-not recognition threshold, Mattel measures the amount of benefit recognized in the financial statements at the largest amount of benefit that is greater than 50 percent likely of being realized upon ultimate settlement. Mattel recognizes unrecognized tax benefits in the first financial reporting period in which information becomes available indicating that such benefits will more-likely-than-not be realized. Mattel records unrecognized tax benefits for US federal, state, local, and foreign tax positions related primarily to transfer pricing, tax credits claimed, tax nexus, and apportionment. For each reporting period, management applies a consistent methodology to measure unrecognized tax benefits, and all unrecognized tax benefits are reviewed periodically and adjusted as circumstances warrant. Mattel’s measurement of its unrecognized tax benefits is based on management’s assessment of all relevant information, including prior audit experience, the status of audits, conclusions of tax audits, lapsing of applicable statutes of limitations, identification of new issues, and any administrative guidance or developments. A reconciliation of unrecognized tax benefits is as follows: For the Year 2015 2014 2013 (In thousands) Unrecognized tax benefits at January 1 $ 100,357 $ 111,370 $ 285,560 Increases for positions taken in current year 5,724 9,886 12,997 Increases for positions taken in a prior year 22,584 53,221 14,289 Decreases for positions taken in a prior year (4,242 ) (51,421 ) (186,555 ) Decreases for settlements with taxing authorities (3,577 ) (9,493 ) (5,135 ) Decreases for lapses in the applicable statute of limitations (2,747 ) (13,206 ) (9,786 ) Unrecognized tax benefits at December 31 $ 118,099 $ 100,357 $ 111,370 Of the $118.1 million of unrecognized tax benefits as of December 31, 2015, $114.3 million would impact the effective tax rate if recognized. During 2015 , 2014, and 2013, Mattel recognized approximately $0 , $2 million , and $1 million of interest and penalties related to unrecognized tax benefits, respectively, which are reflected in provision for income taxes in the consolidated statements of operations. As of December 31, 2015 , Mattel accrued $18.3 million in interest and penalties related to unrecognized tax benefits. Of this balance, $17.4 million would impact the effective tax rate if recognized. As of December 31, 2014, Mattel accrued $18.1 million in interest and penalties related to unrecognized tax benefits. In the first quarter of 2014, Mattel adopted ASU 2013-11, Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists , which generally requires an unrecognized tax benefit, or a portion of an unrecognized tax benefit, to be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward. However, to the extent a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date to settle any additional income taxes that would result from the disallowance of a tax position or the applicable tax law does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. Mattel reclassified unrecognized tax benefits of approximately $44 million , primarily recorded within other noncurrent liabilities, against its noncurrent deferred tax assets upon adoption in the first quarter of 2014. There was no impact on Mattel’s operating results. In the normal course of business, Mattel is regularly audited by federal, state, local and foreign tax authorities. In May 2014, the IRS completed its audit of Mattel’s 2010 and 2011 federal income tax returns. Mattel remains subject to IRS examination for the 2012 through 2015 tax years. Mattel files multiple state and local income tax returns and remains subject to examination in various of these jurisdictions, including California for the 2008 through 2015 tax years , New York for the 2010 through 2015 tax years , and Wisconsin for the 2008 through 2015 tax years . Mattel files multiple foreign income tax returns and remains subject to examination in major foreign jurisdictions, including Hong Kong for the 2009 through 2015 tax years , Brazil, Mexico and Netherlands for the 2010 through 2015 tax years and Russia for the 2012 through 2015 tax years . Based on the current status of federal, state, local and foreign audits, Mattel believes it is reasonably possible that in the next 12 months , the total unrecognized tax benefits could decrease by approximately $10 million related to the settlement of tax audits and/or the expiration of statutes of limitations. The ultimate settlement of any particular issue with the applicable taxing authority could have a material impact on Mattel’s consolidated financial statements. The income tax provision included net tax benefits of $19.1 million , $42.6 million , and $32.2 million in 2015 , 2014 , and 2013 , respectively. The 2015 net tax benefits primarily relate to reassessments of prior years’ tax liabilities based on the status of audits and tax filings in various jurisdictions around the world, settlements, and enacted tax law changes. The 2014 net tax benefits primarily relate to reassessments of prior years’ tax liabilities based on the status of audits and tax filings in various jurisdictions around the world, settlements, and enacted tax law changes, partially offset by a tax charge related to a 2014 tax restructuring for the HIT Entertainment and MEGA Brands operations. The 2013 net tax benefits primarily relate to the reassessments of prior years’ tax liabilities based on the status of audits and tax filings in various jurisdictions around the world, settlements, and enacted tax law changes. The cumulative amount of undistributed earnings of foreign subsidiaries that Mattel intends to indefinitely reinvest and upon which no deferred US income taxes have been provided is approximately $6.8 billion as of December 31, 2015 . Management periodically reviews the undistributed earnings of its foreign subsidiaries and reassesses the intent to indefinitely reinvest such earnings. It is not practicable for Mattel to determine the deferred tax liability associated with these undistributed earnings due to the availability of foreign tax credits, the complexity of Mattel's international holding company structure, the rules governing the utilization of foreign tax credits, and the interplay between utilization of such foreign tax credits and Mattel’s other significant tax attributes. US GAAP requires that excess tax benefits related to the exercise of nonqualified stock options and vesting of other stock compensation awards be credited to additional paid-in capital in the period in which such amounts reduce current taxes payable and tax benefit (deficiencies) related to the exercise of nonqualified stock options and vesting of other stock compensation be debited to additional paid-in capital. The exercise of nonqualified stock options and vesting of other stock compensation awards resulted in a (decrease)/increase to additional paid-in capital totaling $(2.8) million , $21.2 million , and $50.4 million in 2015 , 2014 , and 2013 , respectively. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans Mattel and certain of its subsidiaries have qualified and nonqualified retirement plans covering substantially all employees of these companies. These plans include defined benefit pension plans, defined contribution retirement plans, postretirement benefit plans, and deferred compensation and excess benefit plans. In addition, Mattel makes contributions to government-mandated retirement plans in countries outside the US where its employees work. A summary of retirement plan expense is as follows: For the Year 2015 2014 2013 (In thousands) Defined contribution retirement plans $ 40,673 $ 43,819 $ 43,694 Defined benefit pension plans 14,779 18,124 30,747 Deferred compensation and excess benefit plans 225 4,840 9,298 Postretirement benefit plans 1,396 1,461 2,245 $ 57,073 $ 68,244 $ 85,984 Defined Benefit Pension and Postretirement Benefit Plans Mattel provides defined benefit pension plans for eligible domestic employees, which are intended to comply with the requirements of the Employee Retirement Income Security Act of 1974 (“ERISA”). Some of Mattel’s foreign subsidiaries have defined benefit pension plans covering substantially all of their eligible employees. Mattel funds these plans in accordance with the terms of the plans and local statutory requirements, which differ for each of the countries in which the subsidiaries are located. Mattel also has unfunded postretirement health insurance plans covering certain eligible domestic employees. A summary of the components of Mattel’s net periodic benefit cost and other changes in plan assets and benefit obligations recognized in other comprehensive income for the years ended December 31 is as follows: Defined Benefit Pension Plans Postretirement Benefit Plans 2015 2014 2013 2015 2014 2013 (In thousands) Net periodic benefit cost: Service cost $ 6,105 $ 7,515 $ 12,982 $ 54 $ 67 $ 82 Interest cost 26,007 27,708 25,580 1,194 1,377 1,585 Expected return on plan assets (29,850 ) (31,833 ) (29,786 ) — — — Amortization of prior service credit (465 ) (1,037 ) (1,057 ) — — — Recognized actuarial loss 15,168 15,771 21,193 148 17 578 Settlement loss 6,453 — 1,835 — — — Curtailment gain (8,639 ) — — — — — Net periodic benefit cost $ 14,779 $ 18,124 $ 30,747 $ 1,396 $ 1,461 $ 2,245 Other changes in plan assets and benefit obligations recognized in other comprehensive income: Net actuarial (gain) loss $ (8,813 ) $ 48,502 $ (95,744 ) $ (3,130 ) $ (2,205 ) $ 3,470 Prior service cost 8,691 20 — — — — Amortization of prior service credit 465 1,037 1,057 — — — Total recognized in other comprehensive income (a) $ 343 $ 49,559 $ (94,687 ) $ (3,130 ) $ (2,205 ) $ 3,470 Total recognized in net periodic benefit cost and other comprehensive income $ 15,122 $ 67,683 $ (63,940 ) $ (1,734 ) $ (744 ) $ 5,715 (a) Amounts exclude related tax expense (benefit) of $1.1 million , $(17.8) million , and $32.5 million , during 2015 , 2014 , and 2013 , respectively, which are also included in other comprehensive income. Net periodic benefit cost for Mattel’s domestic defined benefit pension and postretirement benefit plans was calculated on January 1 of each year using the following assumptions: For the Year 2015 2014 2013 Defined benefit pension plans: Discount rate 3.8 % 4.7 % 4.0 % Weighted average rate of future compensation increases 3.8 % 3.8 % 3.8 % Long-term rate of return on plan assets (a) 8.0 % 8.0 % Postretirement benefit plans: Discount rate 3.8 % 4.7 % 4.0 % Annual increase in Medicare Part B premium 6.0 % 6.0 % 6.0 % Health care cost trend rate: Pre-65 7.5 % 8.5 % 8.5 % Post-65 8.8 % 7.5 % 7.5 % Ultimate cost trend rate: Pre-65 4.5 % 6.1 % 6.1 % Post-65 4.5 % 5.4 % 5.4 % Year that the rate reaches the ultimate cost trend rate: Pre-65 2023 2030 2030 Post-65 2024 2030 2030 (a) A long-term rate of return on plan assets of 7.5% was used for the first half of 2015. A long-term rate of return on plan assets of 6.8% was used for the second half of 2015, resulting from a change in the plans' target asset allocation. Discount rates, weighted average rates of future compensation increases, and long-term rates of return on plan assets for Mattel’s foreign defined benefit pension plans differ from the assumptions used for Mattel’s domestic defined benefit pension plans due to differences in local economic conditions in the locations where the non-US plans are based. The rates shown in the preceding table are indicative of the weighted average rates of all Mattel’s defined benefit pension plans given the relative insignificance of the foreign plans to the consolidated total. The estimated net actuarial loss and prior service cost for the domestic defined benefit pension plans that will be amortized from accumulated other comprehensive loss into net periodic benefit cost in 2016 is $9.3 million . The estimated net actuarial loss for the domestic postretirement benefit plans that will be amortized from accumulated other comprehensive loss into net periodic benefit cost in 2016 is $0.1 million . Mattel used a measurement date of December 31, 2015 for its defined benefit pension and postretirement benefit plans. A summary of the changes in benefit obligation and plan assets is as follows: Defined Benefit Pension Plans Postretirement Benefit Plans 2015 2014 2015 2014 (In thousands) Change in Benefit Obligation: Benefit obligation, beginning of year $ 677,641 $ 616,938 $ 34,402 $ 37,914 Service cost 6,105 7,515 54 67 Interest cost 26,007 27,708 1,194 1,377 Impact of currency exchange rate changes (11,016 ) (10,673 ) — — Actuarial (gain) loss (14,604 ) 75,839 (2,981 ) (2,188 ) Benefits paid (67,994 ) (39,686 ) (2,253 ) (2,768 ) Plan amendments (4,649 ) — — — Benefit obligation, end of year $ 611,490 $ 677,641 $ 30,416 $ 34,402 Change in Plan Assets: Plan assets at fair value, beginning of year $ 475,940 $ 456,445 $ — $ — Actual return on plan assets (690 ) 43,804 — — Employer contributions 33,353 21,596 2,253 2,768 Impact of currency exchange rate changes (5,335 ) (6,219 ) — — Benefits paid (67,994 ) (39,686 ) (2,253 ) (2,768 ) Plan assets at fair value, end of year $ 435,274 $ 475,940 $ — $ — Net Amount Recognized in Consolidated Balance Sheets: Funded status, end of year $ (176,216 ) $ (201,701 ) $ (30,416 ) $ (34,402 ) Current accrued benefit liability (7,416 ) (2,540 ) (3,300 ) (3,600 ) Noncurrent accrued benefit liability (168,800 ) (199,161 ) (27,116 ) (30,802 ) Total accrued benefit liability $ (176,216 ) $ (201,701 ) $ (30,416 ) $ (34,402 ) Amounts Recognized in Accumulated Other Comprehensive Loss (a): Net actuarial loss $ 244,780 $ 253,593 $ 1,784 $ 4,914 Prior service cost (credit) 120 (9,036 ) — — $ 244,900 $ 244,557 $ 1,784 $ 4,914 (a) Amounts exclude related tax benefits of $86.8 million and $88.0 million for December 31, 2015 and 2014 , respectively, which are also included in accumulated other comprehensive loss. The accumulated benefit obligation differs from the projected benefit obligation in that it assumes future compensation levels will remain unchanged. Mattel’s accumulated benefit obligation for its defined benefit pension plans as of December 31, 2015 and 2014 totaled $589.2 million and $632.2 million , respectively. The assumptions used in determining the projected and accumulated benefit obligations of Mattel’s domestic defined benefit pension and postretirement benefit plans are as follows: December 31, 2015 2014 Defined benefit pension plans: Discount rate 4.2 % 3.8 % Weighted average rate of future compensation increases 3.8 % 3.8 % Postretirement benefit plans: Discount rate 4.2 % 3.8 % Annual increase in Medicare Part B premium 6.0 % 6.0 % Health care cost trend rate: Pre-65 7.0 % 7.5 % Post-65 8.3 % 8.8 % Ultimate cost trend rate: Pre-65 4.5 % 4.5 % Post-65 4.5 % 4.5 % Year that the rate reaches the ultimate cost trend rate: Pre-65 2023 2023 Post-65 2024 2024 A one percentage point increase/(decrease) in the assumed health care cost trend rate for each future year would impact the postretirement benefit obligation as of December 31, 2015 by $2.0 million and $(1.6) million , respectively, and the service and interest cost recognized for 2015 by $0.1 million and $(0.1) million , respectively. The estimated future benefit payments for Mattel’s defined benefit pension and postretirement benefit plans are as follows: Defined Benefit Pension Plans Postretirement Benefit Plans (In thousands) 2016 $ 37,588 $ 3,300 2017 39,477 3,100 2018 38,114 3,100 2019 35,783 3,100 2020 36,547 2,900 2021 – 2025 182,695 13,400 Mattel expects to make cash contributions totaling approximately $12 million to its defined benefit pension and postretirement benefit plans in 2016, which includes approximately $11 million for benefit payments for its unfunded plans. Mattel periodically commissions a study of the plans’ assets and liabilities to determine an asset allocation that would best match expected cash flows from the plans’ assets to expected benefit payments. Mattel monitors the returns earned by the plans’ assets and reallocates investments as needed. Mattel’s overall investment strategy is to achieve an adequately diversified asset allocation mix of investments that provides for both near-term benefit payments as well as long-term growth. The assets are invested in a combination of indexed and actively managed funds. The target allocations for Mattel’s domestic plan assets, which comprise 79% of Mattel’s total plan assets, are 42% in US equities, 28% in non-US equities, 20% in fixed income securities, and 10% in real estate securities. The US equities are benchmarked against the S&P 500, and the non-US equities are benchmarked against a combination of developed and emerging markets indices. Fixed income securities are long-duration bonds intended to closely match the duration of the liabilities and include US government treasuries and agencies, corporate bonds from various industries, and mortgage-backed and asset-backed securities. Mattel’s defined benefit pension plan assets are measured and reported in the financial statements at fair value using inputs, which are more fully described in “Note 10 to the Consolidated Financial Statements—Fair Value Measurements,” as follows: December 31, 2015 Level 1 Level 2 Level 3 Total (In thousands) Collective trust funds: US equity securities $ — $ 86,466 $ — $ 86,466 International equity securities — 255,694 — 255,694 International fixed income — 44,118 — 44,118 US government and US government agency securities — 1,540 — 1,540 US corporate debt instruments — 31,254 — 31,254 International corporate debt instruments — 5,612 — 5,612 Mutual funds 567 — — 567 Other — 10,023 — 10,023 Total $ 567 $ 434,707 $ — $ 435,274 December 31, 2014 Level 1 Level 2 Level 3 Total (In thousands) Collective trust funds: US equity securities $ — $ 174,027 $ — $ 174,027 International equity securities — 166,432 — 166,432 International fixed income — 47,260 — 47,260 US government and US government agency securities — 36,531 — 36,531 US corporate debt instruments — 24,628 — 24,628 International corporate debt instruments — 4,700 — 4,700 Mutual funds 561 15,000 — 15,561 Other — 6,801 — 6,801 Total $ 561 $ 475,379 $ — $ 475,940 The fair value of collective trust funds and mutual funds are determined based on the net asset value of shares held at year-end. The fair value of US government securities, US government agency securities, and corporate debt instruments are determined based on quoted market prices or are estimated using pricing models with observable inputs, quoted prices of securities with similar characteristics, or discounted cash flows. Mattel’s defined benefit pension plan assets are not directly invested in Mattel common stock. Mattel believes that the long-term rates of return on plan assets of 7.5% and 6.8% used in determining plan expense for the six months ended June 30, 2015 and December 31, 2015 , respectively, were reasonable based on historical returns. Defined Contribution Retirement Plans Domestic employees are eligible to participate in a 401(k) savings plan, the Mattel, Inc. Personal Investment Plan (the “Plan”), sponsored by Mattel, which is a funded defined contribution plan intended to comply with ERISA’s requirements. Contributions to the Plan include voluntary contributions by eligible employees and employer automatic and matching contributions by Mattel. The Plan allows employees to allocate both their voluntary contributions and their employer automatic and matching contributions to a variety of investment funds, including a fund that is invested in Mattel common stock (the “Mattel Stock Fund”). Employees are not required to allocate any of their Plan account balance to the Mattel Stock Fund, allowing employees to limit or eliminate their exposure to market changes in Mattel’s stock price. Furthermore, the Plan limits the percentage of the employee’s total account balance that may be allocated to the Mattel Stock Fund to 25% . Employees may generally reallocate their account balances on a daily basis. However, pursuant to Mattel’s insider trading policy, employees classified as insiders and restricted personnel under Mattel’s insider trading policy are limited to certain periods in which they may make allocations into or out of the Mattel Stock Fund. Certain non-US employees participate in other defined contribution retirement plans with varying vesting and contribution provisions. Deferred Compensation and Excess Benefit Plans Mattel maintains a deferred compensation plan that permits certain officers and key employees to elect to defer portions of their compensation. The deferred compensation plan, together with certain contributions made by Mattel and participating employees to an excess benefit plan, earns various rates of return. The liability for these plans as of December 31, 2015 and 2014 was $71.7 million and $73.6 million , respectively, and is primarily included in other noncurrent liabilities in the consolidated balance sheets. Changes in the market value of the participant-selected investment options are recorded as retirement plan expense within other selling and administrative expenses in the consolidated statements of operations. Separately, Mattel has purchased group trust-owned life insurance contracts designed to assist in funding these programs. The cash surrender value of these policies, valued at $67.3 million and $67.6 million as of December 31, 2015 and 2014 , respectively, are held in an irrevocable grantor trust, the assets of which are subject to the claims of Mattel’s creditors and are included in other noncurrent assets in the consolidated balance sheets. Incentive Compensation Plans Mattel has annual incentive compensation plans under which officers and key employees may earn incentive compensation based on Mattel’s performance and are subject to certain approvals of the Compensation Committee of the Board of Directors. For 2015 , 2014 , and 2013 , $50.2 million , $25.2 million , and $65.0 million , respectively, was charged to expense for awards under these plans. Mattel had two long-term incentive program (“LTIP”) performance cycles in place for the time period between 2013 and 2015 : (i) a January 1, 2011—December 31, 2013 performance cycle, which was established by the Compensation Committee of the Board of Directors in March 2011, and (ii) a January 1, 2014—December 31, 2016 performance cycle, which was established by the Compensation Committee of the Board of Directors in March 2014. For the January 1, 2011—December 31, 2013 LTIP performance cycle, Mattel granted performance-based restricted stock units (“Performance RSUs”) under the Mattel, Inc. 2010 Equity and Long-Term Compensation Plan to officers and certain employees providing services to Mattel. Performance RSUs granted under this program were earned based on an initial target number with the final number of Performance RSUs payable being determined based on the product of the initial target number of Performance RSUs multiplied by a performance factor based on measurements of Mattel’s performance with respect to: (i) annual operating result targets for each year in the performance cycle using a net operating profit after taxes less capital charge measure and a net sales performance measure (“the 2011-2013 performance-related components”), and (ii) Mattel’s total stock return (“TSR”) for the three -year performance cycle relative to the TSR realized by companies comprising the S&P 500 as of the first day of the performance cycle (“the 2011-2013 market-related component”), adjusted for dividends declared during the three -year performance cycle. The Performance RSUs also had dividend equivalent rights that were converted to shares of Mattel common stock when the underlying Performance RSUs were earned and paid in shares of Mattel common stock. For the January 1, 2011—December 31, 2013 LTIP performance cycle, 1.0 million shares were earned relating to the 2011-2013 performance-related components, 0.5 million shares were earned relating to the 2011-2013 market-related component, and 0.1 million shares were earned related to dividend equivalent rights, resulting in a total of 1.6 million shares that vested in February 2014. For the January 1, 2011—December 31, 2013 LTIP performance cycle, the weighted average grant date fair values of the 2011-2013 performance-related and 2011-2013 market-related components of the Performance RSUs were $42.30 and $4.59 per share, respectively, for 2013. During 2013, $10.0 million was charged to expense relating to the 2011-2013 performance-related components. Additionally, during 2013, Mattel recognized share-based compensation expense of $1.4 million for the 2011-2013 market-related component. For the January 1, 2014—December 31, 2016 LTIP performance cycle, Mattel also granted 2014-2016 Performance RSUs under the Mattel, Inc. 2010 Equity and Long-Term Compensation Plan to officers and certain employees providing services to Mattel. Performance RSUs granted under this program are also earned based on an initial target number with the final number of Performance RSUs payable being determined based on the product of the initial target number of Performance RSUs multiplied by a performance factor based on measurements of Mattel’s performance with respect to: (i) annual operating result targets for each year in the performance cycle using a net operating profit after taxes less capital charge measure and a net sales performance measure (“the 2014-2016 performance-related components”), and (ii) Mattel’s TSR for the three -year performance cycle relative to the TSR realized by companies comprising the S&P 500 as of the first day of the performance cycle (“the 2014-2016 market-related component”), adjusted for dividends declared during the three -year performance cycle. The Performance RSUs also have dividend equivalent rights that are converted to shares of Mattel common stock only when and to the extent the underlying Performance RSUs are earned and paid in shares of Mattel common stock. For the 2014-2016 performance-related components, the range of possible outcomes is that between zero and 0.5 million shares can be earned for each year during the performance cycle. For the 2014-2016 market-related component, the possible outcomes range from an upward adjustment of 0.5 million shares to a downward adjustment of 0.5 million shares to the results of the performance-related components over the three -year performance cycle. For the January 1, 2014—December 31, 2016 LTIP performance cycle, the weighted average grant date fair values of the performance-related and market-related components of the Performance RSUs were $23.14 and $(3.57) per share, respectively, for 2015, and $39.03 and ($3.57) per share, respectively, for 2014. During 2014, actual results did not meet minimum performance thresholds. In 2015, no expense was recognized, as it is not probable that shares will be earned for the 2014-2016 performance cycle, since the downward adjustment from the 2014-2016 market-related component is expected to offset any shares earned for the 2014-2016 performance-related component. The fair values of the performance-related components were based on the closing stock prices of Mattel’s common stock on each of the grant dates. The fair values of the market-related component were estimated at the grant dates using a Monte Carlo valuation methodology. |
Seasonal Financing and Debt
Seasonal Financing and Debt | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Seasonal Financing and Debt | Seasonal Financing and Debt Seasonal Financing Mattel maintains and periodically amends or replaces its domestic unsecured committed revolving credit facility with a commercial bank group. The facility is used as a back-up to Mattel’s commercial paper program, which is used as the primary source of financing for the seasonal working capital requirements of its domestic subsidiaries. The agreement governing the credit facility was amended and restated on June 8, 2015 to, among other things, (i) extend the maturity date of the credit facility to June 9, 2020 , (ii) amend the definition of consolidated earnings before interest, taxes, depreciation, and amortization (“Consolidated EBITDA”) used in calculating Mattel’s financial ratio covenants, and (iii) increase the maximum allowed consolidated debt-to-Consolidated EBITDA ratio to 3.50 to 1. The aggregate commitments under the credit facility remain at $1.60 billion , with an “accordion feature,” which allows Mattel to increase the aggregate availability under the credit facility to $1.85 billion under certain circumstances. In addition, applicable interest rate margins remain within a range of 0.00% to 0.75% above the applicable base rate for base rate loans and 0.88% to 1.75% above the applicable LIBOR for Eurodollar rate loans, and the commitment fees range from 0.08% to 0.28% of the unused commitments under the credit facility, in each case depending on Mattel’s senior unsecured long-term debt rating. The proportion of unamortized debt issuance costs from the prior facility renewal related to creditors involved in both the prior facility and amended facility and borrowing costs incurred as a result of the amendment were deferred, and such costs will be amortized over the term of the amended facility. Mattel is required to meet financial ratio covenants at the end of each quarter and fiscal year, using the formulae specified in the credit agreement to calculate the ratios. Mattel was in compliance with such covenants at the end of each fiscal quarter and fiscal year in 2015 . As of December 31, 2015 , Mattel’s consolidated debt-to-EBITDA ratio, as calculated per the terms of the credit agreement, was 2.43 to 1 (compared to a maximum allowed of 3.50 to 1), and Mattel’s interest coverage ratio was 10.22 to 1 (compared to a minimum required of 3.50 to 1). The credit agreement is a material agreement, and failure to comply with the financial ratio covenants may result in an event of default under the terms of the credit facility. If Mattel were to default under the terms of the credit facility, its ability to meet its seasonal financing requirements could be adversely affected. Mattel believes its cash on hand, amounts available under its credit facility, and its foreign credit lines will be adequate to meet its seasonal financing requirements in 2016 . To finance seasonal working capital requirements of certain foreign subsidiaries, Mattel avails itself of individual short-term credit lines with a number of banks. As of December 31, 2015 , foreign credit lines totaled approximately $340 million . Mattel expects to extend the majority of these credit lines throughout 2016 . Additionally, sales of foreign receivables occur periodically to finance seasonal working capital requirements. The outstanding amounts of accounts receivable that have been sold under international factoring arrangements were $19.5 million and $22.3 million at December 31, 2015 and 2014 , respectively. These amounts have been excluded from Mattel’s consolidated balance sheets. In January 2016, a major credit rating agency changed Mattel's long-term credit rating from A- to BBB+, maintained its short-term credit rating of F2, and changed its outlook from negative to stable. In January 2015, a major credit rating agency changed Mattel’s long-term credit rating from BBB+ to BBB and maintained its short-term credit rating of A-2 and outlook at stable. Another major credit rating agency maintained Mattel’s long-term credit rating of Baa1 and short-term credit rating of P-2 and changed its outlook from stable to negative. A third major credit rating agency maintained Mattel’s long-term credit rating of A- and short-term credit rating of F2 and changed its outlook from stable to negative. A reduction in Mattel’s credit ratings could increase the cost of obtaining financing. Short-Term Borrowings As of December 31, 2015 , Mattel had foreign short-term bank loans outstanding of $16.9 million . As of December 31, 2014 , Mattel had no foreign short-term bank loans outstanding. As of December 31, 2015 and 2014 , Mattel had no borrowings outstanding under the credit facility. During 2015 and 2014 , Mattel had average borrowings of $2.9 million and $17.5 million , respectively, under its foreign short-term bank loans, and $374.3 million and $680.8 million , respectively, under the credit facility and other short-term borrowings, to help finance its seasonal working capital requirements. The weighted average interest rate on foreign short-term bank loans during 2015 and 2014 was 13.7% and 11.2% , respectively. The weighted average interest rate on the credit facility and other short-term borrowings during 2015 and 2014 was 0.3% and 0.2% , respectively. Long-Term Debt In May 2014, Mattel issued $500.0 million aggregate principal amount of 2.35% senior unsecured notes due May 6, 2019 (“2014 Senior Notes”). Interest on the 2014 Senior Notes is payable semi-annually on May 6 and November 6 of each year, beginning November 6, 2014. Mattel may redeem all or part of the 2014 Senior Notes at any time or from time to time at its option, at a redemption price equal to the greater of (i) 100% of the principal amount of the notes being redeemed plus accrued and unpaid interest to, but excluding, the redemption date, and (ii) a “make-whole” amount based on the yield of a comparable US Treasury security plus 12.5 basis points. In March 2013, Mattel issued $250.0 million aggregate principal amount of 1.70% senior unsecured notes (“ 1.70% Senior Notes”) due March 15, 2018 and $250.0 million aggregate principal amount of 3.15% senior unsecured notes (“ 3.15% Senior Notes”) due March 15, 2023 (collectively, “2013 Senior Notes”). Interest on the 2013 Senior Notes is payable semi-annually on March 15 and September 15 of each year, beginning September 15, 2013. Mattel may redeem all or part of the 1.70% Senior Notes at any time or from time to time at its option, at a redemption price equal to the greater of (i) 100% of the principal amount of the notes being redeemed plus accrued and unpaid interest to, but excluding, the redemption date, and (ii) a “make-whole” amount based on the yield of a comparable US Treasury security plus 15 basis points. Mattel may redeem all or part of the 3.15% Senior Notes at any time or from time to time prior to December 15, 2022 (three months prior to the maturity date of the 3.15% Senior Notes) at its option, at a redemption price equal to the greater of (i) 100% of the principal amount of the notes being redeemed plus accrued and unpaid interest to, but excluding, the redemption date, and (ii) a “make-whole” amount based on the yield of a comparable US Treasury security plus 20 basis points. Mattel may redeem all or part of the 3.15% Senior Notes at any time or from time to time on or after December 15, 2022 (three months prior to the maturity date for the 3.15% Senior Notes) at its option, at a redemption price equal to 100% of the principal amount of the notes to be redeemed plus accrued and unpaid interest to, but excluding, the redemption date. Mattel’s 2010 Senior Notes bear interest at fixed rates ranging from 4.35% to 6.20% , with a weighted average interest rate of 5.28% as of December 31, 2015 and 2014 . Mattel’s 2011 Senior Notes bear interest at fixed rates ranging from 2.50% to 5.45% , with a weighted average interest rate of 3.98% as of December 31, 2015 and 2014 . Mattel’s 2013 Senior Notes bear interest at fixed rates ranging from 1.70% to 3.15% , with a weighted average interest rate of 2.43% as of December 31, 2015 and 2014 . Mattel’s 2014 Senior Notes bear interest at a fixed rate of 2.35% as of December 31, 2015 . During 2014, Mattel repaid $44.6 million of long-term borrowings assumed through the acquisition of MEGA Brands. Mattel’s long-term debt consists of the following: December 31, 2015 2014 (In thousands) 2010 Senior Notes due October 2020 and October 2040 $ 500,000 $ 500,000 2011 Senior Notes due November 2016 and November 2041 600,000 600,000 2013 Senior Notes due March 2018 and March 2023 500,000 500,000 2014 Senior Notes due May 2019 500,000 500,000 2,100,000 2,100,000 Less: current portion (300,000 ) — Total long-term debt $ 1,800,000 $ 2,100,000 The aggregate amount of long-term debt maturing in the next five years and thereafter is as follows: 2010 Senior Notes 2011 Senior Notes 2013 Senior Notes 2014 Senior Notes Total (In thousands) 2016 $ — $ 300,000 $ — $ — $ 300,000 2017 — — — — — 2018 — — 250,000 — 250,000 2019 — — — 500,000 500,000 2020 250,000 — — — 250,000 Thereafter 250,000 300,000 250,000 — 800,000 $ 500,000 $ 600,000 $ 500,000 $ 500,000 $ 2,100,000 |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
Stockholders' Equity | Note 6—Stockholders’ Equity Preference Stock Mattel is authorized to issue up to 20.0 million shares of $0.01 par value preference stock, of which none is currently outstanding. Preferred Stock Mattel is authorized to issue up to 3.0 million shares of $1.00 par value preferred stock, of which none is currently outstanding. Common Stock Repurchase Program During 2015 , Mattel did not repurchase any shares of its common stock. During 2014 , Mattel repurchased 4.9 million shares of its common stock at a cost of $177.2 million . During 2013 , Mattel repurchased 11.0 million shares of its common stock at a cost of $469.2 million . Mattel’s share repurchase program was first announced on July 21, 2003. On July 17, 2013, the Board of Directors authorized Mattel to increase its share repurchase program by $500.0 million . At December 31, 2015, share repurchase authorizations of $203.0 million had not been executed. Repurchases will take place from time to time, depending on market conditions. Mattel’s share repurchase program has no expiration date. Dividends During 2015 , 2014 , and 2013 , Mattel paid total dividends per share of $1.52 , $1.52 , and $1.44 , respectively, to holders of its common stock. The Board of Directors declared the dividends on a quarterly basis, and Mattel paid the dividends during the quarters in which the dividends were declared. The payment of dividends on common stock is at the discretion of the Board of Directors and is subject to customary limitations. Accumulated Other Comprehensive Income (Loss) The following tables present changes in the accumulated balances for each component of other comprehensive income, including current period other comprehensive income and reclassifications out of accumulated other comprehensive income (loss): For the Year Ended December 31, 2015 Derivative Instruments Defined Benefit Pension Plans Currency Translation Adjustments Total (In thousands) Accumulated Other Comprehensive Income (Loss), Net of Tax, as of December 31, 2014 $ 30,025 $ (161,507 ) $ (490,607 ) $ (622,089 ) Other comprehensive income (loss) before reclassifications 37,926 (6,443 ) (213,797 ) (182,314 ) Amounts reclassified from accumulated other comprehensive income (loss) (52,588 ) 8,092 — (44,496 ) Net (decrease) increase in other comprehensive income (14,662 ) 1,649 (213,797 ) (226,810 ) Accumulated Other Comprehensive Income (Loss), Net of Tax, as of December 31, 2015 $ 15,363 $ (159,858 ) $ (704,404 ) $ (848,899 ) For the Year Ended December 31, 2014 Derivative Instruments Defined Benefit Pension Plans Currency Translation Adjustments Total (In thousands) Accumulated Other Comprehensive Income (Loss), Net of Tax, as of December 31, 2013 $ (10,789 ) $ (131,946 ) $ (300,941 ) $ (443,676 ) Other comprehensive income (loss) before reclassifications 39,931 (38,969 ) (189,666 ) (188,704 ) Amounts reclassified from accumulated other comprehensive income (loss) 883 9,408 — 10,291 Net increase (decrease) in other comprehensive income 40,814 (29,561 ) (189,666 ) (178,413 ) Accumulated Other Comprehensive Income (Loss), Net of Tax, as of December 31, 2014 $ 30,025 $ (161,507 ) $ (490,607 ) $ (622,089 ) For the Year Ended December 31, 2013 Derivative Instruments Defined Benefit Pension Plans Currency Translation Adjustments Total (In thousands) Accumulated Other Comprehensive Income (Loss), Net of Tax, as of December 31, 2012 $ (2,583 ) $ (190,656 ) $ (271,247 ) $ (464,486 ) Other comprehensive (loss) income before reclassifications (13,103 ) 44,288 (29,694 ) 1,491 Amounts reclassified from accumulated other comprehensive income (loss) 4,897 14,422 — 19,319 Net (decrease) increase in other comprehensive income (8,206 ) 58,710 (29,694 ) 20,810 Accumulated Other Comprehensive Income (Loss), Net of Tax, as of December 31, 2013 $ (10,789 ) $ (131,946 ) $ (300,941 ) $ (443,676 ) The following table presents the classification and amount of the reclassifications from accumulated other comprehensive income (loss) to the consolidated statement of operations: For the Year Statements of Operations Classification 2015 2014 2013 (In thousands) Derivative Instruments Gain (loss) on foreign currency forward exchange contracts $ 52,037 $ (916 ) $ (5,735 ) Cost of sales 551 33 838 Provision for income taxes $ 52,588 $ (883 ) $ (4,897 ) Net income Defined Benefit Pension Plans Amortization of prior service credit $ 465 $ 1,037 $ 1,057 (a) Recognized actuarial loss (15,316 ) (15,788 ) (21,771 ) (a) Settlement loss (6,453 ) — (1,835 ) Other selling and administrative expenses Curtailment gain 8,639 — — Other selling and administrative expenses (12,665 ) (14,751 ) (22,549 ) 4,573 5,343 8,127 Provision for income taxes $ (8,092 ) $ (9,408 ) $ (14,422 ) Net income (a) The amortization of prior service credit and recognized actuarial loss are included in the computation of net periodic benefit cost. Refer to “Note 4 to the Consolidated Financial Statements—Employee Benefit Plans” for additional information regarding Mattel’s net periodic benefit cost. Currency Translation Adjustments For 2015 , currency translation adjustments resulted in a net loss of $213.8 million , primarily due to the weakening of the Euro, Brazilian real, Mexican peso, and British pound sterling against the US dollar. For 2014 , currency translation adjustments resulted in a net loss of $189.7 million , primarily due to the weakening of the Euro, Mexican peso, British pound sterling, Russian ruble, and Brazilian real against the US dollar. For 2013 , currency translation adjustments resulted in a net loss of $29.7 million , primarily due to the weakening of the Brazilian real, Australian dollar, and Indonesian rupiah against the US dollar, partially offset by the strengthening of the Euro against the US dollar. |
Share-Based Payments
Share-Based Payments | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Payments | Share-Based Payments Mattel Stock Option Plans In May 2015, Mattel’s stockholders approved the Mattel, Inc. Amended and Restated 2010 Equity and Long-Term Compensation Plan (the “Amended 2010 Plan”). The 2010 Equity and Long-Term Compensation Plan was approved by Mattel's stockholders in May 2010 (the "2010 Plan"). Upon approval of the 2010 Plan, Mattel terminated its 2005 Equity Compensation Plan (the “2005 Plan”), except with respect to grants then outstanding under the 2005 Plan. All restricted stock unit (“RSU”) awards made under the 2005 Plan have vested as of December 31, 2015. Outstanding stock option grants under the 2005 Plan that have not expired or have not been terminated continue to be exercisable under the terms of their respective grant agreements. The terms of the Amended 2010 Plan are substantially similar to the terms of the 2010 Plan and the 2005 Plan. Under the Amended 2010 Plan, Mattel has the ability to grant nonqualified stock options, incentive stock options, stock appreciation rights, restricted stock, RSUs, dividend equivalent rights, performance awards, and shares of common stock to officers, employees, and other persons providing services to Mattel. Generally, options vest and become exercisable contingent upon the grantees’ continued employment or service with Mattel. Nonqualified stock options are granted at not less than 100% of the fair market value of Mattel’s common stock on the date of grant, expire no later than 10 years from the date of grant, and vest on a schedule determined by the Compensation Committee of the Board of Directors, generally during a period of 3 years from the date of grant. In the event of a retirement of an employee aged 55 years or older with 5 or more years of service, or the death or disability of an employee, that occurs in each case at least 6 months after the grant date, nonqualified stock options become fully vested. Similar provisions exist for non-employee directors. Time-vesting RSUs granted under the Amended 2010 Plan generally vest over a period of 3 years from the date of grant. In the event of the involuntary termination of an employee aged 55 years or older with 5 or more years of service, or the death or disability of an employee, that occurs at least 6 months after the grant date, RSUs become fully vested. The Amended 2010 Plan also contains provisions regarding grants of equity compensation to the non-employee members of the Board of Directors. The Amended 2010 Plan expires on March 26, 2025 , except as to any grants then outstanding. The number of shares of common stock available for grant under the Amended 2010 Plan is subject to an aggregate limit of the sum of (i) 77 million shares, (ii) the number of shares that remained available for issuance under the 2005 Plan on May 12, 2010, and (iii) any shares subject to awards outstanding under the 2005 Plan that on or after May 12, 2010 are forfeited or otherwise terminate or expire without the issuance of shares to the holder of the award. The Amended 2010 Plan is further subject to detailed share-counting rules. As a result of such share-counting rules, full-value grants such as grants of restricted stock or RSUs count against shares remaining available for grant at a higher rate than grants of stock options and stock appreciation rights. Each stock option or stock appreciation right grant is treated as using one available share for each share actually subject to such grant, whereas each restricted stock or RSU grant is treated as using three available shares for each share actually subject to such full-value grant. At December 31, 2015 , there were approximately 33 million shares of common stock available for grant remaining under the 2010 Plan. As of December 31, 2015 , total unrecognized compensation cost related to unvested share-based payments totaled $85.4 million and is expected to be recognized over a weighted-average period of 2.0 years . Stock Options Mattel recognized compensation expense of $15.2 million , $12.5 million , and $12.1 million for stock options during 2015 , 2014 , and 2013 , respectively, which is included within other selling and administrative expenses in the consolidated statements of operations. Income tax benefits related to stock option compensation expense recognized in the consolidated statements of operations during 2015 , 2014 , and 2013 totaled $5.5 million , $3.5 million , and $3.8 million , respectively. The fair value of options granted has been estimated using the Black-Scholes valuation model. The expected life of the options used in this calculation is the period of time the options are expected to be outstanding and has been determined based on historical exercise experience. Expected stock price volatility is based on the historical volatility of Mattel’s stock for a period approximating the expected life, the expected dividend yield is based on Mattel’s most recent actual annual dividend payout, and the risk-free interest rate is based on the implied yield available on US Treasury zero-coupon issues approximating the expected life. The weighted average grant date fair value of options granted during 2015 , 2014 , and 2013 was $1.97 , $4.57 , and $8.80 , respectively. The following weighted average assumptions were used in determining the fair value of options granted: 2015 2014 2013 Expected life (in years) 4.9 4.9 4.9 Risk-free interest rate 1.5 % 1.6 % 1.5 % Volatility factor 23.1 % 23.7 % 31.8 % Dividend yield 6.5 % 4.3 % 3.4 % The following is a summary of stock option information and weighted average exercise prices for Mattel’s stock options: 2015 2014 2013 Shares Weighted Average Exercise Price Shares Weighted Average Exercise Price Shares Weighted Average Exercise Price (In thousands, except weighted average exercise price) Outstanding at January 1 10,523 $ 30.77 9,218 $ 27.48 14,630 $ 22.34 Granted 9,112 23.37 3,373 35.33 1,488 42.70 Exercised (764 ) 19.63 (1,891 ) 22.35 (6,828 ) 19.74 Forfeited (717 ) 31.34 (166 ) 36.85 (60 ) 33.18 Canceled (254 ) 35.07 (11 ) 25.28 (12 ) 20.02 Outstanding at December 31 17,900 $ 27.39 10,523 $ 30.77 9,218 $ 27.48 Exercisable at December 31 7,498 $ 30.09 5,810 $ 26.07 6,135 $ 22.70 The intrinsic value of a stock option is the amount by which the current market value of the underlying stock exceeds the exercise price of an option. The total intrinsic value of options exercised during 2015 , 2014 , and 2013 was $4.9 million , $24.1 million , and $156.6 million , respectively. At December 31, 2015 , options outstanding had an intrinsic value of $49.7 million , with a weighted average remaining life of 7.9 years. At December 31, 2015 , options exercisable had an intrinsic value of $16.3 million , with a weighted average remaining life of 6.0 years. At December 31, 2015 , stock options vested or expected to vest totaled 17.6 million shares, with a total intrinsic value of $48.3 million , weighted average exercise price of $27.48 , and weighted average remaining life of 7.9 years. During 2015, approximately 2 million stock options vested. The total grant date fair value of stock options vested during 2015 , 2014 , and 2013 was approximately $12 million , $12 million , and $13 million , respectively. Mattel uses treasury shares purchased under its share repurchase program to satisfy stock option exercises. Cash received from stock options exercised during 2015 , 2014 , and 2013 was $15.0 million , $43.3 million , and $134.5 million , respectively. Restricted Stock Units RSUs are valued at the market value on the date of grant and the expense is evenly attributed to the periods in which the restrictions lapse, which is generally 3 years from the date of grant. Compensation expense recognized related to grants of RSUs, excluding Performance RSUs, was $41.5 million , $39.5 million , and $38.2 million in 2015 , 2014 , and 2013 , respectively, and is included within other selling and administrative expenses in the consolidated statements of operations. Income tax benefits related to RSU compensation expense recognized in the consolidated statements of operations during 2015 , 2014 , and 2013 totaled $11.0 million , $10.6 million , and $10.6 million , respectively. The following is a summary of RSU information and weighted average grant date fair values for Mattel’s RSUs, excluding Performance RSUs: 2015 2014 2013 Shares Weighted Average Grant Date Fair Value Shares Weighted Average Grant Date Fair Value Shares Weighted Average Grant Date Fair Value (In thousands, except weighted average grant date fair value) Unvested at January 1 3,173 $ 37.10 3,036 $ 34.94 3,505 $ 28.24 Granted 2,332 23.54 1,786 34.83 1,116 42.82 Vested (1,159 ) 37.29 (1,426 ) 29.77 (1,337 ) 24.53 Forfeited (608 ) 34.67 (223 ) 36.27 (248 ) 31.82 Unvested at December 31 3,738 $ 28.98 3,173 $ 37.10 3,036 $ 34.94 At December 31, 2015 , RSUs expected to vest totaled 3.6 million shares, with a weighted average grant date fair value of $29.11 . The total grant date fair value of RSUs vested during 2015 , 2014 , and 2013 was $43.2 million , $42.5 million , and $32.8 million , respectively. Mattel recognized compensation expense of $11.4 million during 2013 for Performance RSUs granted in connection with its January 1, 2011–December 31, 2013 LTIP performance cycle, more fully described in “Note 4 to the Consolidated Financial Statements—Employee Benefit Plans.” Income tax benefits related to Performance RSU compensation expense recognized in the consolidated statements of operations during 2013 totaled $4.2 million . During 2014, no compensation expense and no related income tax benefit was recognized for Performance RSUs granted in connection with its January 1, 2014 - December 31, 2016 LTIP performance cycle as actual results did not meet minimum performance thresholds. In 2015, no compensation expense and no related income tax benefit was recognized as it is not probable that shares will be earned for the 2014-2016 performance cycle, since the downward adjustment from the 2014-2016 market-related component is expected to offset any shares earned for the 2014-2016 performance-related component. This is also more fully described in “Note 4 to the Consolidated Financial Statements—Employee Benefit Plans.” |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Unvested share-based payment awards that contain nonforfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are participating securities and are included in the computation of earnings per share pursuant to the two-class method. Certain of Mattel’s RSUs are considered participating securities because they contain nonforfeitable rights to dividend equivalents. Under the two-class method, net income is reduced by the amount of dividends declared in the period for each class of common stock and participating securities. The remaining undistributed earnings are then allocated to common stock and participating securities as if all of the net income for the period had been distributed. Basic earnings per common share excludes dilution and is calculated by dividing net income allocable to common shares by the weighted average number of common shares outstanding for the period. Diluted earnings per common share is calculated by dividing net income allocable to common shares by the weighted average number of common shares for the period, as adjusted for the potential dilutive effect of non-participating share-based awards. The following table reconciles earnings per common share: For the Year 2015 2014 2013 (In thousands, except per share amounts) Basic: Net income $ 369,416 $ 498,874 $ 903,944 Less: Net income allocable to participating RSUs (3,179 ) (4,028 ) (8,335 ) Net income available for basic common shares $ 366,237 $ 494,846 $ 895,609 Weighted average common shares outstanding 339,172 339,016 343,394 Basic net income per common share $ 1.08 $ 1.46 $ 2.61 Diluted: Net income $ 369,416 $ 498,874 $ 903,944 Less: Net income allocable to participating RSUs (3,179 ) (4,028 ) (8,291 ) Net income available for diluted common shares $ 366,237 $ 494,846 $ 895,653 Weighted average common shares outstanding 339,172 339,016 343,394 Weighted average common equivalent shares arising from: Dilutive stock options and non-participating RSUs 576 1,752 4,065 Weighted average number of common and potential common shares 339,748 340,768 347,459 Diluted net income per common share $ 1.08 $ 1.45 $ 2.58 The calculation of potential common shares assumes the exercise of dilutive stock options and vesting of non-participating RSUs, net of assumed treasury share repurchases at average market prices. Nonqualified stock options and non-participating RSUs totaling 9.6 million shares, 2.8 million shares, and 0.6 million shares were excluded from the calculation of diluted net income per common share for 2015 , 2014 , and 2013 , respectively, because they were antidilutive. |
Derivative Instruments
Derivative Instruments | 12 Months Ended |
Dec. 31, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | Derivative Instruments Mattel seeks to mitigate its exposure to foreign currency transaction risk by monitoring its foreign currency transaction exposure for the year and partially hedging such exposure using foreign currency forward exchange contracts. Mattel uses foreign currency forward exchange contracts as cash flow hedges primarily to hedge its purchases and sales of inventory denominated in foreign currencies. These contracts generally have maturity dates of up to 18 months . These derivative instruments have been designated as effective cash flow hedges, whereby the unsettled hedges are reported in Mattel’s consolidated balance sheets at fair value, with changes in the fair value of the hedges reflected in other comprehensive income (“OCI”). Realized gains and losses for these contracts are recorded in the consolidated statements of operations in the period in which the inventory is sold to customers. Additionally, Mattel uses foreign currency forward exchange contracts to hedge intercompany loans and advances denominated in foreign currencies. Due to the short-term nature of the contracts involved, Mattel does not use hedge accounting for these contracts, and as such, changes in fair value are recorded in the period of change in the consolidated statements of operations. As of December 31, 2015 and 2014 , Mattel held foreign currency forward exchange contracts with notional amounts of $930.8 million and $1.19 billion , respectively. The following table presents Mattel’s derivative assets and liabilities: Derivative Assets Balance Sheet Classification Fair Value December 31, 2015 December 31, 2014 (In thousands) Derivatives designated as hedging instruments: Foreign currency forward exchange contracts Prepaid expenses and other current assets $ 15,279 $ 31,982 Foreign currency forward exchange contracts Other noncurrent assets 1,611 1,443 Total derivatives designated as hedging instruments $ 16,890 $ 33,425 Derivatives not designated as hedging instruments: Foreign currency forward exchange contracts Prepaid expenses and other current assets $ 1,216 $ 318 Total $ 18,106 $ 33,743 Derivative Liabilities Balance Sheet Classification Fair Value December 31, 2015 December 31, 2014 (In thousands) Derivatives designated as hedging instruments: Foreign currency forward exchange contracts Accrued liabilities $ 1,214 $ 2,408 Foreign currency forward exchange contracts Other noncurrent liabilities 219 36 Total derivatives designated as hedging instruments $ 1,433 $ 2,444 Derivatives not designated as hedging instruments: Foreign currency forward exchange contracts Accrued liabilities $ 2,287 $ 10,954 Total $ 3,720 $ 13,398 The following tables present the classification and amount of gains and losses, net of tax, from derivatives reported in the consolidated statements of operations: Derivatives Designated As Hedging Instruments Statements of Operations Classification For the Year 2015 For the Year 2014 For the Year 2013 (In thousands) Foreign currency forward exchange contracts: Amount of gain (loss) recognized in OCI $ 37,926 $ 39,931 $ (13,103 ) Amount of gain (loss) reclassified from accumulated OCI to statements of operations 52,588 (883 ) (4,897 ) Cost of sales The net gains (losses) of $52.6 million , $(0.9) million , and $(4.9) million reclassified from accumulated other comprehensive loss to the consolidated statements of operations during 2015 , 2014 , and 2013 , respectively, are offset by the changes in cash flows associated with the underlying hedged transactions. Derivatives Not Designated As Hedging Instruments Statements of Operations Classification For the Year 2015 For the Year 2014 For the Year 2013 (In thousands) Amount of (loss) gain recognized in the statements of operations: Foreign currency forward exchange contracts $ (51,679 ) $ (31,485 ) $ 17,975 Non-operating income/expense Cross currency swap contract 5,288 — — Non-operating income/ expense Foreign currency forward exchange contracts (265 ) 732 (4,455 ) Cost of sales Total $ (46,656 ) $ (30,753 ) $ 13,520 The net (losses) gains of $(46.7) million , $(30.8) million , and $13.5 million recognized in the consolidated statements of operations during 2015 , 2014 , and 2013 , respectively, are offset by foreign currency transaction gains and losses on the related hedged balances. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The following table presents information about Mattel’s assets and liabilities measured and reported in the financial statements at fair value on a recurring basis as of December 31, 2015 and 2014 and indicates the fair value hierarchy of the valuation techniques utilized to determine such fair value. The three levels of the fair value hierarchy are as follows: • Level 1 – Valuations based on unadjusted quoted prices in active markets for identical assets or liabilities that the entity has the ability to access. • Level 2 – Valuations based on quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable data for substantially the full term of the assets or liabilities. • Level 3 – Valuations based on inputs that are unobservable, supported by little or no market activity, and that are significant to the fair value of the assets or liabilities. Mattel’s financial assets and liabilities include the following: December 31, 2015 Level 1 Level 2 Level 3 Total (In thousands) Assets: Foreign currency forward exchange contracts (a) $ — $ 18,106 $ — $ 18,106 Liabilities: Foreign currency forward exchange contracts (a) $ — $ 3,720 $ — $ 3,720 December 31, 2014 Level 1 Level 2 Level 3 Total (In thousands) Assets: Foreign currency forward exchange contracts (a) $ — $ 33,743 $ — $ 33,743 Auction rate security (b) — — 30,960 30,960 Total assets $ — $ 33,743 $ 30,960 $ 64,703 Liabilities: Foreign currency forward exchange contracts (a) $ — $ 13,398 $ — $ 13,398 (a) The fair value of the foreign currency forward exchange contracts is based on dealer quotes of market forward rates and reflects the amount that Mattel would receive or pay at their maturity dates for contracts involving the same notional amounts, currencies, and maturity dates. (b) The fair value of the auction rate security was estimated using a discounted cash flow model based on (i) estimated interest rates, timing, and amount of cash flows, (ii) credit spreads, recovery rates, and credit quality of the underlying securities, (iii) illiquidity considerations, and (iv) market correlation. During 2015, Mattel sold its auction rate security and received proceeds of $32.3 million , resulting in a gain of $1.3 million for the year ended December 31, 2015. The following table presents information about Mattel's investments measured and reported at fair value on a recurring basis using significant Level 3 inputs: Level 3 (In thousands) Balance at December 31, 2012 $ 19,256 Unrealized gain 9,639 Balance at December 31, 2013 $ 28,895 Unrealized gain 2,065 Balance at December 31, 2014 $ 30,960 Proceeds from sale (32,250 ) Gain on sale 1,290 Balance at December 31, 2015 $ — Non-Recurring Fair Value Measurements Mattel tests its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying value may not be recoverable or that the carrying value may exceed its fair value. During the second quarter of 2013, Mattel changed its brand strategy for Polly Pocket, which includes a more focused allocation of resources to support the Polly Pocket brand in specific markets, resulting in a reduction of the forecasted future cash flows of the brand. As a result, Mattel recognized an impairment charge of approximately $14 million , which reduced the value of the intangible asset to approximately $99 million , as more fully described in “Note 2 to the Consolidated Financial Statements—Goodwill and Other Intangibles.” During 2015 , 2014 , and 2013 , Mattel did not have any other assets or liabilities measured and reported at fair value on a non-recurring basis in periods subsequent to initial recognition. Other Financial Instruments Mattel’s financial instruments include cash and equivalents, accounts receivable and payable, short-term borrowings, and accrued liabilities. The carrying value of these instruments approximate their fair value because of their short-term nature and are classified as Level 2 within the fair value hierarchy. The estimated fair value of Mattel’s long-term debt, including the current portion, was $2.15 billion (compared to a carrying value of $2.10 billion ) as of December 31, 2015 and $2.18 billion (compared to a carrying value of $2.10 billion ) as of December 31, 2014 . The estimated fair values have been calculated based on broker quotes or rates for the same or similar instruments and are classified as Level 2 within the fair value hierarchy. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Leases Mattel routinely enters into noncancelable lease agreements for premises and equipment used in the normal course of business. Certain of these leases include escalation clauses that adjust rental expense to reflect changes in price indices, as well as renewal options. In addition to minimum rental payments, certain of Mattel’s leases require additional payments to reimburse the lessors for operating expenses such as real estate taxes, maintenance, utilities, and insurance. Rental expense is recorded on a straight-line basis, including escalating minimum payments. The American Girl Place leases in Chicago, Illinois, Los Angeles, California, and New York, New York, and American Girl store leases in Alpharetta, Georgia, Bloomington, Minnesota, Charlotte, North Carolina, Chesterfield, Missouri, Columbus, Ohio, Dallas, Texas, Houston, Texas, Lone Tree, Colorado, Lynnwood, Washington, McLean, Virginia, Miami, Florida, Nashville, Tennessee, Natick, Massachusetts, Orlando, Florida, Overland Park, Kansas, Palo Alto, California, and Scottsdale, Arizona also contain provisions for additional rental payments based on a percentage of the sales of each store after reaching certain sales benchmarks. Contingent rental expense is recorded in the period in which the contingent event becomes probable. During 2015 , 2014 , and 2013 , contingent rental expense was not material. The following table shows the future minimum obligations under lease commitments in effect at December 31, 2015 : Capital Leases Operating Leases (In thousands) 2016 $ 294 $ 105,615 2017 294 78,691 2018 294 58,359 2019 294 45,490 2020 25 41,023 Thereafter — 112,531 $ 1,201 (a) $ 441,709 (a) Includes $0.2 million of imputed interest. Rental expense under operating leases amounted to $114.9 million , $120.9 million , and $111.0 million for 2015 , 2014 , and 2013 , respectively, net of sublease income of $2.7 million , $2.6 million , and $0.9 million in 2015 , 2014 , and 2013 , respectively. Commitments In the normal course of business, Mattel enters into contractual arrangements to obtain and protect Mattel’s right to create and market certain products and for future purchases of goods and services to ensure availability and timely delivery. Such arrangements include royalty payments pursuant to licensing agreements and commitments primarily for future inventory purchases. Certain of these commitments routinely contain provisions for guarantees or minimum expenditures during the term of the contracts. Current and future commitments for guaranteed payments reflect Mattel’s focus on expanding its product lines through alliances with businesses in other industries. Licensing and similar agreements in effect at December 31, 2015 contain provisions for future minimum payments as shown in the following table: Licensing and Similar Agreements (In thousands) 2016 $ 106,048 2017 84,452 2018 101,887 2019 79,269 2020 34,973 Thereafter 4,466 $ 411,095 Royalty expense for 2015 , 2014 , and 2013 was $264.6 million , $242.4 million , and $246.9 million , respectively. The following table shows the future minimum obligations for purchases of inventory, services, and other as of December 31, 2015 : Other Purchase Obligations (In thousands) 2016 $ 417,963 2017 11,639 2018 5,691 2019 2,075 2020 1,105 $ 438,473 Insurance Mattel has a wholly-owned subsidiary, Far West Insurance Company, Ltd. (“Far West”), that was established to insure Mattel’s workers’ compensation, general, automobile, product liability, and property risks. Far West insures the first $1.0 million per occurrence for workers’ compensation risks, the first $0.5 million for general and automobile liability risks, the first $2.0 million per occurrence and $2.0 million per year for product liability risks, and up to $1.0 million per occurrence for property risks. Various insurance companies, that have an “A” or better AM Best rating at the time the policies are purchased, reinsure Mattel’s risk in excess of the amounts insured by Far West. Mattel’s liability for reported and incurred but not reported claims at December 31, 2015 and 2014 totaled $13.9 million and $14.2 million , respectively, and is included in other noncurrent liabilities in the consolidated balance sheets. Loss reserves are accrued based on Mattel’s estimate of the aggregate liability for claims incurred. Litigation Litigation Related to Carter Bryant and MGA Entertainment, Inc. In April 2004, Mattel filed a lawsuit in Los Angeles County Superior Court against Carter Bryant (“Bryant”), a former Mattel design employee. The suit alleges that Bryant aided and assisted a Mattel competitor, MGA Entertainment, Inc. (“MGA”), during the time he was employed by Mattel, in violation of his contractual and other duties to Mattel. In September 2004, Bryant asserted counterclaims against Mattel, including counterclaims in which Bryant sought, as a putative class action representative, to invalidate Mattel’s Confidential Information and Proprietary Inventions Agreements with its employees. Bryant also removed Mattel’s suit to the United States District Court for the Central District of California. In December 2004, MGA intervened as a party-defendant in Mattel’s action against Bryant, asserting that its rights to Bratz properties are at stake in the litigation. Separately, in November 2004, Bryant filed an action against Mattel in the United States District Court for the Central District of California. The action sought a judicial declaration that Bryant’s purported conveyance of rights in Bratz was proper and that he did not misappropriate Mattel property in creating Bratz. In April 2005, MGA filed suit against Mattel in the United States District Court for the Central District of California. MGA’s action alleges claims of trade dress infringement, trade dress dilution, false designation of origin, unfair competition, and unjust enrichment. The suit alleges, among other things, that certain products, themes, packaging, and/or television commercials in various Mattel product lines have infringed upon products, themes, packaging, and/or television commercials for various MGA product lines, including Bratz. The complaint also asserts that various alleged Mattel acts with respect to unidentified retailers, distributors, and licensees have damaged MGA and that various alleged acts by industry organizations, purportedly induced by Mattel, have damaged MGA. MGA’s suit alleges that MGA has been damaged in an amount “believed to reach or exceed tens of millions of dollars” and further seeks punitive damages, disgorgement of Mattel’s profits and injunctive relief. In June 2006, the three cases were consolidated in the United States District Court for the Central District of California. On July 17, 2006, the Court issued an order dismissing all claims that Bryant had asserted against Mattel, including Bryant’s purported counterclaims to invalidate Mattel’s Confidential Information and Proprietary Inventions Agreements with its employees, and Bryant’s claims for declaratory relief. On January 12, 2007, Mattel filed an Amended Complaint setting forth counterclaims that included additional claims against Bryant as well as claims for copyright infringement, Racketeer Influenced and Corrupt Organizations (“RICO”) violations, misappropriation of trade secrets, intentional interference with contract, aiding and abetting breach of fiduciary duty and breach of duty of loyalty, and unfair competition, among others, against MGA, its Chief Executive Officer Isaac Larian, certain MGA affiliates and an MGA employee. The RICO claim alleged that MGA stole Bratz and then, by recruiting and hiring key Mattel employees and directing them to bring with them Mattel confidential and proprietary information, unfairly competed against Mattel using Mattel’s trade secrets, confidential information, and key employees to build their business. Mattel sought to try all of its claims in a single trial, but in February 2007, the Court decided that the consolidated cases would be tried in two phases, with the first trial to determine claims and defenses related to Mattel’s ownership of Bratz works and whether MGA infringed those works. On May 19, 2008, Bryant reached a settlement agreement with Mattel and is no longer a defendant in the litigation. In the public stipulation entered by Mattel and Bryant in connection with the resolution, Bryant agreed that he was and would continue to be bound by all prior and future Court Orders relating to Bratz ownership and infringement, including the Court’s summary judgment rulings. The first phase of the first trial resulted in a unanimous jury verdict on July 17, 2008 in favor of Mattel. The jury found that almost all of the Bratz design drawings and other works in question were created by Bryant while he was employed at Mattel; that MGA and Isaac Larian intentionally interfered with the contractual duties owed by Bryant to Mattel, aided and abetted Bryant’s breaches of his duty of loyalty to Mattel, aided and abetted Bryant’s breaches of the fiduciary duties he owed to Mattel, and converted Mattel property for their own use. The same jury determined that defendants MGA, Larian, and MGA Entertainment (HK) Limited infringed Mattel’s copyrights in the Bratz design drawings and other Bratz works, and awarded Mattel total damages of approximately $100 million against the defendants. On December 3, 2008, the Court issued a series of orders rejecting MGA’s equitable defenses and granting Mattel’s motions for equitable relief, including an order enjoining the MGA party defendants from manufacturing, marketing, or selling certain Bratz fashion dolls or from using the “Bratz” name. The Court stayed its December 3, 2008 injunctive orders until further order of the Court. The parties filed and argued additional motions for post-trial relief, including a request by MGA to enter judgment as a matter of law on Mattel’s claims in MGA’s favor and to reduce the jury’s damages award to Mattel. Mattel additionally moved for the appointment of a receiver. On April 27, 2009, the Court entered an order confirming that Bratz works found by the jury to have been created by Bryant during his Mattel employment were Mattel’s property and that hundreds of Bratz female fashion dolls infringe Mattel’s copyrights. The Court also upheld the jury’s award of damages in the amount of $100 million and ordered an accounting of post-trial Bratz sales. The Court further vacated the stay of the December 3, 2008 orders. MGA appealed the Court’s equitable orders to the Court of Appeals for the Ninth Circuit. On December 9, 2009, the Ninth Circuit heard oral argument on MGA’s appeal and issued an order staying the District Court’s equitable orders pending a further order to be issued by the Ninth Circuit. On July 22, 2010, the Ninth Circuit vacated the District Court’s equitable orders. The Ninth Circuit stated that, because of several jury instruction errors it identified, a significant portion—if not all—of the jury verdict and damage award should be vacated. In its opinion, the Ninth Circuit found that the District Court erred in concluding that Mattel’s Invention Agreement unambiguously applied to “ideas;” that it should have considered extrinsic evidence in determining the application of the agreement; and if the conclusion turns on conflicting evidence, it should have been up to the jury to decide. The Ninth Circuit also concluded that the District Judge erred in transferring the entire brand to Mattel based on misappropriated names and that the Court should have submitted to the jury, rather than deciding itself, whether Bryant’s agreement assigned works created outside the scope of his employment and whether Bryant’s creation of the Bratz designs and sculpt was outside of his employment. The Court then went on to address copyright issues which would be raised after a retrial, since Mattel “might well convince a properly instructed jury” that it owns Bryant’s designs and sculpt. The Ninth Circuit stated that the sculpt itself was entitled only to “thin” copyright protection against virtually identical works, while the Bratz sketches were entitled to “broad” protection against substantially similar works; in applying the broad protection, however, the Ninth Circuit found that the lower court had erred in failing to filter out all of the unprotectable elements of Bryant’s sketches. This mistake, the Court said, caused the lower court to conclude that all Bratz dolls were substantially similar to Bryant’s original sketches. Judge Stephen Larson, who presided over the first trial, retired from the bench during the course of the appeal, and the case was transferred to Judge David O. Carter. After the transfer, Judge Carter granted Mattel leave to file a Fourth Amended Answer and Counterclaims which focused on RICO, trade secret and other claims, and added additional parties, and subsequently granted in part and denied in part a defense motion to dismiss those counterclaims. Later, on August 16, 2010, MGA asserted several new claims against Mattel in response to Mattel’s Fourth Amended Answer and Counterclaims, including claims for alleged trade secret misappropriation, an alleged violation of RICO, and wrongful injunction. MGA alleged, in summary, that, for more than a decade dating back to 1992, Mattel employees engaged in a pattern of stealing alleged trade secret information from competitors “toy fair” showrooms, and then sought to conceal that alleged misconduct. Mattel moved to strike and/or dismiss these claims, as well as certain MGA allegations regarding Mattel’s motives for filing suit. The Court granted that motion as to the wrongful injunction claim, which it dismissed with prejudice, and as to the allegations about Mattel’s motives, which it struck. The Court denied the motion as to MGA’s trade secret misappropriation claim and its claim for violations of RICO. The Court resolved summary judgment motions in late 2010. Among other rulings, the Court dismissed both parties’ RICO claims; dismissed Mattel’s claim for breach of fiduciary duty and portions of other claims as “preempted” by the trade secrets act; dismissed MGA’s trade dress infringement claims; dismissed MGA’s unjust enrichment claim; dismissed MGA’s common law unfair competition claim; and dismissed portions of Mattel’s copyright infringement claim as to “later generation” Bratz dolls. Trial of all remaining claims began in early January 2011. During the trial, and before the case was submitted to the jury, the Court granted MGA’s motions for judgment as to Mattel’s claims for aiding and abetting breach of duty of loyalty and conversion. The Court also granted a defense motion for judgment on portions of Mattel’s claim for misappropriation of trade secrets relating to thefts by former Mattel employees located in Mexico. The jury reached verdicts on the remaining claims in April 2011. In those verdicts, the jury ruled against Mattel on its claims for ownership of Bratz-related works, for copyright infringement, and for misappropriation of trade secrets. The jury ruled for MGA on its claim of trade secret misappropriation as to 26 of its claimed trade secrets and awarded $88.5 million in damages. The jury ruled against MGA as to 88 of its claimed trade secrets. The jury found that Mattel’s misappropriation was willful and malicious. In early August 2011, the Court ruled on post-trial motions. The Court rejected MGA’s unfair competition claims and also rejected Mattel’s equitable defenses to MGA’s misappropriation of trade secrets claim. The Court reduced the jury’s damages award of $88.5 million to $85.0 million . The Court awarded MGA an additional $85.0 million in punitive damages and approximately $140 million in attorney’s fees and costs. The Court entered a judgment which totaled approximately $310 million in favor of MGA. On August 11, 2011, Mattel appealed the judgment, challenging on appeal the entirety of the District Court’s monetary award in favor of MGA, including both the award of $170 million in damages for alleged trade secret misappropriation and approximately $140 million in attorney’s fees and costs. On January 24, 2013, the Ninth Circuit Court of Appeals issued a ruling on Mattel’s appeal. In that ruling, the Court found that MGA’s claim for trade secrets misappropriation was not compulsory to any Mattel claim and could not be filed as a counterclaim-in-reply. Accordingly, the Court of Appeals vacated the portion of the judgment awarding damages and attorney’s fees and costs to MGA for prevailing on its trade secrets misappropriation claim, totaling approximately $172.5 million . It ruled that, on remand, the District Court must dismiss MGA’s trade secret claim without prejudice. In its ruling, the Court of Appeals also affirmed the District Court’s award of attorney’s fees and costs under the Copyright Act. Accordingly, Mattel recorded a litigation accrual of approximately $138 million during the fourth quarter of 2012 to cover these fees and costs. Because multiple claimants asserted rights to the attorney’s fees portion of the judgment, on February 13, 2013, Mattel filed a motion in the District Court for orders permitting Mattel to interplead the proceeds of the judgment and releasing Mattel from liability to any claimant based on Mattel’s payment of the judgment. On February 27, 2013, MGA filed a motion for leave to amend its prior complaint in the existing federal court lawsuit so that it could reassert its trade secrets claim. Mattel opposed that motion. On December 17, 2013, the District Court denied MGA’s motion for leave to amend and entered an order dismissing MGA’s trade secrets claim without prejudice. Also on December 17, 2013, following a settlement between MGA and certain insurance carriers, the District Court denied Mattel’s motion for leave to interplead the proceeds of the judgment. On December 21, 2013, a stipulation regarding settlement with insurers and payment of judgment was filed in the District Court, which provided that (i) Mattel would pay approximately $138 million , including accrued interest, in full satisfaction of the copyright fees judgment, (ii) all parties would consent to entry of an order exonerating and discharging the appeal bond posted by Mattel, and (iii) MGA’s insurers would dismiss all pending actions related to the proceeds of the copyright fees judgment, including an appeal by Evanston Insurance Company in an action against Mattel that was pending in the Ninth Circuit. On December 23, 2013, Mattel paid the copyright fees judgment in the total sum, including interest, of approximately $138 million . On December 26, 2013, the District Court entered an order exonerating and discharging the appeal bond posted by Mattel, and on December 27, 2013, MGA filed an acknowledgment of satisfaction of judgment. On December 30, 2013, Evanston Insurance Company’s appeal in its action against Mattel was dismissed. On January 13, 2014, MGA filed a new, but virtually identical, trade secrets claim against Mattel in Los Angeles County Superior Court. In its complaint, MGA purports to seek damages in excess of $1 billion . Mattel believes that MGA’s claim should be barred as a matter of law, and intends to vigorously defend against it. On December 3, 2014, the Court overruled Mattel’s request to dismiss MGA’s case as barred as a result of prior litigation between the parties. In light of that ruling, Mattel believes that it is reasonably possible that damages in this matter could range from $0 to approximately $12.5 million . In addition, Mattel believes that if such damages are awarded, it is reasonably possible that pre-judgment interest, ranging from $0 to approximately $10 million , could be awarded. Mattel may be entitled to an offset against any damages awarded to MGA. Mattel has not quantified the amount of any such offset as it is not currently estimable. As Mattel believes a loss in this matter is reasonably possible but not probable, no liability has been accrued to date. Litigation Related to Yellowstone do Brasil Ltda. Yellowstone do Brasil Ltda. (formerly known as Trebbor Informática Ltda.) was a customer of Mattel’s subsidiary Mattel do Brasil Ltda. when a commercial dispute arose between Yellowstone and Mattel do Brasil regarding the supply of product and related payment terms. As a consequence of the dispute, in April 1999, Yellowstone filed a declarative action against Mattel do Brasil before the 15 th Civil Court of Curitiba – State of Parana (the “Trial Court”), requesting the annulment of its security bonds and promissory notes given to Mattel do Brasil as well as requesting the Trial Court to find Mattel do Brasil liable for damages incurred as a result of Mattel do Brasil’s alleged abrupt and unreasonable breach of an oral exclusive distribution agreement between the parties relating to the supply and sale of toys in Brazil. Yellowstone’s complaint sought alleged loss of profits of approximately $1 million , plus an unspecified amount of damages consisting of: (i) compensation for all investments made by Yellowstone to develop Mattel do Brasil’s business; (ii) reimbursement of the amounts paid by Yellowstone to terminate labor and civil contracts in connection with the business; (iii) compensation for alleged unfair competition and for the goodwill of trade; and (iv) compensation for non-pecuniary damages. Mattel do Brasil filed its defenses to these claims and simultaneously presented a counterclaim for unpaid accounts receivable for goods supplied to Yellowstone in the approximate amount of $4 million . During the evidentiary phase a first accounting report was submitted by a court-appointed expert. Such report stated that Yellowstone had invested approximately $3 million in its business. Additionally, the court-appointed expert calculated a loss of profits compensation of approximately $1 million . Mattel do Brasil challenged the report since it was not made based on the official accounting documents of Yellowstone and since the report calculated damages based only on documents unilaterally submitted by Yellowstone. The Trial Court accepted the challenge and ruled that a second accounting examination should take place in the lawsuit. Yellowstone appealed the decision to the Court of Appeals of the State of Parana (the “Appeals Court”), but it was upheld by the Appeals Court. The second court-appointed expert’s report submitted at trial did not assign a value to any of Yellowstone’s claims and found no evidence of causation between Mattel do Brasil’s actions and such claims. In January 2010, the Trial Court ruled in favor of Mattel do Brasil and denied all of Yellowstone’s claims based primarily on the lack of any causal connection between the acts of Mattel do Brasil and Yellowstone’s alleged damages. Additionally, the Trial Court upheld Mattel do Brasil’s counterclaim and ordered Yellowstone to pay Mattel do Brasil approximately $4 million . The likelihood of Mattel do Brasil recovering this amount was uncertain due to the fact that Yellowstone was declared insolvent and filed for bankruptcy protection. In February 2010, Yellowstone filed a motion seeking clarification of the decision which was denied. In September 2010, Yellowstone filed a further appeal with the Appeals Court. Under Brazilian law, the appeal was de novo and Yellowstone restated all of the arguments it made at the Trial Court level. Yellowstone did not provide any additional information supporting its unspecified alleged damages. The Appeals Court held hearings on the appeal in March and April 2013. On July 26, 2013, the Appeals Court awarded Yellowstone approximately $17 million in damages, plus attorney's fees, as adjusted for inflation and interest. The Appeals Court also awarded Mattel do Brasil approximately $7.5 million on its counterclaim, as adjusted for inflation. On August 2, 2013, Mattel do Brasil filed a motion with the Appeals Court for clarification since the written decision contained clear errors in terms of amounts awarded and interest and inflation adjustments. Mattel do Brasil’s motion also asked the Appeals Court to decide whether Yellowstone’s award could be offset by the counterclaim award, despite Yellowstone’s status as a bankrupt entity. Yellowstone also filed a motion for clarification on August 5, 2013. A decision on the clarification motions was rendered on November 11, 2014, and the Appeals Court accepted partially the arguments raised by Mattel do Brasil. As a result, the Appeals Court awarded Yellowstone approximately $14.5 million in damages, as adjusted for inflation and interest, plus attorney's fees. The Appeals Court also awarded Mattel do Brasil approximately $7.5 million on its counterclaim, as adjusted for inflation. The decision also recognized the existence of legal rules that support Mattel do Brasil’s right to offset its counterclaim award of approximately $7.5 million . Mattel do Brasil filed a new motion for clarification with the Appeals Court on January 21, 2015, due to the incorrect statement made by the reporting judge of the Appeals Court, that the court-appointed expert analyzed the “accounting documents” of Yellowstone. On April 26, 2015, a decision on the motion for clarification was rendered. The Appeals Court ruled that the motion for clarification was denied and imposed a fine on Mattel do Brasil equal to 1% of the value of the claims made for the delay caused by the motion. On July 3, 2015, Mattel do Brasil filed a special appeal to the Superior Court of Justice based upon both procedural and substantive grounds. This special appeal seeks to reverse the Appeals Court's decision of July 26, 2013, and to reverse the fine as inappropriate under the law. This special appeal was submitted to the Appeals Court which must rule on its admissibility before it is transferred to the Superior Court. Yellowstone also filed a special appeal in February 2015, which was made available to Mattel do Brasil on October 7, 2015. Yellowstone's special appeal seeks to reverse the Appeals Court decision with respect to: (a) the limitation on Yellowstone's loss of profits claim to the amount requested in the complaint, instead of the amount contained in the first court-appointed experts report, and (b) the award of damages to Mattel do Brasil on the counterclaim, since the specific amount was not requested in Mattel do Brasil's counterclaim brief. On October 19, 2015, Mattel do Brasil filed its answer to the special appeal filed by Yellowstone and Yellowstone filed its answer to the special appeal filed by Mattel do Brasil. The parties are awaiting the Appeals Court ruling on the admissibility of the special appeals before they are transferred to the Superior Court. Mattel believes that it is reasonably possible that a loss in this matter could range from $0 to approximately $12.3 million . The high end of this range, approximately $12.3 million , is based on the calculation of the current amount of the damages (reported in the first court-appointed examination report submitted in the lawsuit), and loss of profits (indicated in the complaint by Yellowstone), including interest, inflation, currency adjustments, plus attorney's fees. Mattel do Brasil will be entitled to offset its counterclaim award of approximately $5.5 million , the current amount including inflation, and currency adjustment, against such loss. The existence of procedural matters that will be addressed to the Superior Court of Justice adds some uncertainty to the final outcome of the matter. Mattel do Brasil believes, however, that it has valid legal grounds for an appeal of the Appeals Court decision and currently does not believe that a loss is probable for this matter. Accordingly, a liability has not been accrued to date. Mattel do Brasil may be required by the Trial Court to place a bond or the full amount of the damage award in escrow pending an appeal decision by the Superior Court. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information Description of Segments Mattel, through its subsidiaries, sells a broad variety of toy products which are grouped into four major brand categories, including the Construction and Arts & Crafts brand category, which was introduced in the second quarter of 2014: Mattel Girls & Boys Brands —including Barbie ® fashion dolls and accessories (“Barbie”), Monster High ® , Disney Classics ® , Ever After High ® , Little Mommy ® , and Polly Pocket (collectively “Other Girls”), Hot Wheels ® and Matchbox ® vehicles and play sets (collectively “Wheels”), and CARS ® , Disney Planes™, BOOMco ® , Radica ® , Toy Story ® , Max Steel ® , WWE ® Wrestling, DC Comics™, and games and puzzles (collectively “Entertainment”). Fisher-Price Brands —including Fisher-Price ® , Little People ® , BabyGear™, Laugh & Learn ® , and Imaginext ® (collectively “Core Fisher-Price”), Thomas & Friends ® , Dora the Explorer ® , Mickey Mouse ® Clubhouse, and Disney Jake and the Never Land Pirates ® (collectively “Fisher-Price Friends”), and Power Wheels ® . American Girl Brands —including Truly Me ® , BeForever ® , and Bitty Baby ® . American Girl ® Brands products are sold directly to consumers via its catalog, website, and proprietary retail stores. Its children’s publications are also sold to certain retailers. Construction and Arts & Crafts Brands —including MEGA BLOKS ® , RoseArt ® , and Board Dudes ® . Mattel’s operating segments are: (i) North America, which consists of the US and Canada, (ii) International, and (iii) American Girl. Factors considered in determining the operating segments include the nature of business activities, the management structure directly accountable to the Chief Operating Decision Maker (“CODM”) for operating and administrative activities, availability of discrete financial information, and strategic priorities within the organizational structure. These factors correspond to the manner in which the CODM reviews and evaluates operating performance to make decisions about resources to be allocated to these operating segments. The North America and International segments sell products in the Mattel Girls & Boys Brands, Fisher-Price Brands, and Construction and Arts & Crafts Brands categories, although some are developed and adapted for particular international markets. Segment Data The following tables present information about revenues, income, and assets by segment. Mattel does not include sales adjustments such as trade discounts and other allowances in the calculation of segment revenues (referred to as “gross sales”). Mattel records these adjustments in its financial accounting systems at the time of sale to each customer, but the adjustments are not allocated to individual products. For this reason, Mattel’s CODM uses gross sales by segment as one of the metrics to measure segment performance. Such sales adjustments are included in the determination of segment income from operations based on the adjustments recorded in the financial accounting systems. Segment income represents each segment’s operating income, while consolidated operating income represents income from operations before net interest, other non-operating income, and income taxes as reported in the consolidated statements of operations. The corporate and other expense category includes costs not allocated to individual segments, including charges related to incentive compensation, share-based payments, and corporate headquarters functions managed on a worldwide basis, and the impact of changes in foreign currency rates on intercompany transactions. For the Year 2015 2014 2013 (In thousands) Revenues by Segment North America $ 3,083,873 $ 3,011,633 $ 3,181,205 International 2,603,537 3,061,506 3,277,840 American Girl 596,218 645,309 658,768 Gross sales 6,283,628 6,718,448 7,117,813 Sales adjustments (581,015 ) (694,629 ) (632,921 ) Net sales $ 5,702,613 $ 6,023,819 $ 6,484,892 Segment Income North America $ 538,249 $ 459,833 $ 723,834 International 321,068 359,904 622,910 American Girl 69,899 113,571 138,029 929,216 933,308 1,484,773 Corporate and other expense (a) (388,294 ) (279,594 ) (316,670 ) Operating income 540,922 653,714 1,168,103 Interest expense 85,270 79,271 78,505 Interest (income) (7,230 ) (7,382 ) (5,555 ) Other non-operating (income), net (1,033 ) (5,085 ) (3,975 ) Income before income taxes $ 463,915 $ 586,910 $ 1,099,128 (a) Corporate and other expense includes (i) incentive compensation expense of $50.2 million , $25.2 million , and $65.0 million for 2015 , 2014 , and 2013 , respectively, (ii) $72.0 million , $51.8 million , and $17.6 million of charges related to severance and other termination-related costs for 2015 , 2014 , and 2013 , respectively, (iii) share-based compensation expense of $56.7 million , $52.0 million , and $61.7 million for 2015 , 2014 , and 2013 , respectively, and (iv) legal fees associated with MGA litigation matters. For the Year 2015 2014 2013 (In thousands) Depreciation and Amortization by Segment North America $ 122,757 $ 118,633 $ 84,935 International 90,269 86,011 71,380 American Girl 22,054 18,434 17,364 235,080 223,078 173,679 Corporate and other 30,347 25,623 22,714 Depreciation and amortization $ 265,427 $ 248,701 $ 196,393 Segment assets are comprised of accounts receivable and inventories, net of applicable reserves and allowances. December 31, 2015 2014 2013 (In thousands) Assets by Segment North America $ 764,945 $ 698,357 $ 723,886 International 759,709 778,849 920,770 American Girl 108,414 108,667 100,438 1,633,068 1,585,873 1,745,094 Corporate and other 99,552 70,334 83,854 Accounts receivable and inventories, net $ 1,732,620 $ 1,656,207 $ 1,828,948 Mattel sells a broad variety of toy products, which are grouped into four major categories: Mattel Girls & Boys Brands, Fisher-Price Brands, American Girl Brands, and Construction and Arts & Crafts Brands. The table below presents worldwide revenues by brand category: For the Year 2015 2014 2013 (In thousands) Worldwide Revenues by Brand Category Mattel Girls & Boys Brands $ 3,464,195 $ 3,897,218 $ 4,315,855 Fisher-Price Brands 1,852,219 1,842,550 2,120,719 American Girl Brands 571,957 618,678 632,515 Construction and Arts & Crafts Brands 351,747 314,994 — Other 43,510 45,008 48,724 Gross sales 6,283,628 6,718,448 7,117,813 Sales adjustments (581,015 ) (694,629 ) (632,921 ) Net sales $ 5,702,613 $ 6,023,819 $ 6,484,892 Geographic Information The tables below present information by geographic area. Revenues are attributed to countries based on location of customer. Long-lived assets principally include goodwill, property, plant, and equipment, net, and identifiable intangibles, net. For the Year 2015 2014 2013 (In thousands) Revenues North American Region (a) $ 3,680,091 $ 3,656,942 $ 3,839,973 International Region: Europe 1,388,753 1,687,039 1,806,707 Latin America 711,041 909,432 1,011,718 Asia Pacific 503,743 465,035 459,415 Total International Region 2,603,537 3,061,506 3,277,840 Gross sales 6,283,628 6,718,448 7,117,813 Sales adjustments (581,015 ) (694,629 ) (632,921 ) Net sales $ 5,702,613 $ 6,023,819 $ 6,484,892 December 31, 2015 2014 2013 (In thousands) Long-Lived Assets North American Region (b) $ 1,572,432 $ 1,656,985 $ 1,361,538 International Region 1,466,003 1,492,633 1,326,457 Consolidated total $ 3,038,435 $ 3,149,618 $ 2,687,995 (a) Revenues for the North American Region include revenues attributable to the US of $3.46 billion , $3.41 billion , and $3.58 billion for 2015 , 2014 , and 2013 , respectively. (b) Long-lived assets for the North American Region include long-lived assets attributable to the US of $1.57 billion , $1.65 billion , and $1.36 billion for 2015 , 2014 , and 2013 , respectively. Major Customers Sales to Mattel’s three largest customers accounted for 37% , 35% , and 36% of worldwide consolidated net sales for 2015 , 2014 , and 2013 , respectively, as follows: For the Year 2015 2014 2013 (In billions) Wal-Mart $ 1.0 $ 1.1 $ 1.2 Toys “R” Us 0.6 0.6 0.7 Target 0.5 0.5 0.5 The North America segment sells products to each of Mattel’s three largest customers. The International segment sells products to Wal-Mart and Toys “R” Us. The American Girl segment sells its children’s publications to each of Mattel's three largest customers. |
Supplemental Financial Informat
Supplemental Financial Information | 12 Months Ended |
Dec. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Supplemental Financial Information | Supplemental Financial Information December 31, 2015 2014 (In thousands) Inventories include the following: Raw materials and work in process $ 105,917 $ 88,395 Finished goods 481,604 473,360 $ 587,521 $ 561,755 Property, plant, and equipment, net includes the following: Land $ 27,049 $ 27,465 Buildings 275,266 274,452 Machinery and equipment 764,657 728,299 Software 331,251 316,374 Tools, dies, and molds 840,586 782,507 Capital leases 23,970 23,970 Leasehold improvements 245,082 242,177 2,507,861 2,395,244 Less: accumulated depreciation (1,766,714 ) (1,657,375 ) $ 741,147 $ 737,869 Other noncurrent assets include the following: Nonamortizable identifiable intangibles $ 488,144 $ 498,517 Deferred income taxes 317,391 385,434 Identifiable intangibles (net of amortization of $131.5 million and $103.6 million at December 31, 2015 and 2014, respectively) 212,161 240,227 Other 212,463 280,080 $ 1,230,159 $ 1,404,258 Accrued liabilities include the following: Royalties $ 122,153 $ 112,823 Advertising and promotion 75,991 88,132 Taxes other than income taxes 66,848 53,182 Incentive compensation 52,721 25,601 Other 340,512 360,106 $ 658,225 $ 639,844 Other noncurrent liabilities include the following: Benefit plan liabilities $ 195,916 $ 229,963 Noncurrent tax liabilities 108,808 171,181 Other 169,139 182,882 $ 473,863 $ 584,026 For the Year 2015 2014 2013 (In thousands) Currency transaction (losses) gains included in: Operating income $ (25,715 ) $ 44,060 $ 38,842 Other non-operating income (expense), net (8,291 ) 2,827 (1,270 ) Net transaction (losses) gains $ (34,006 ) $ 46,887 $ 37,572 Other selling and administrative expenses include the following: Design and development $ 217,816 $ 209,467 $ 201,942 Identifiable intangible asset amortization 27,923 36,704 12,575 Bad debt expense 5,813 11,507 4,471 |
Quarterly Financial Information
Quarterly Financial Information (unaudited) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information (Unaudited) | Quarterly Financial Information (Unaudited) First Quarter Second Quarter Third Quarter Fourth Quarter (In thousands, except per share amounts) Year Ended December 31, 2015 Net sales $ 922,749 $ 988,152 $ 1,791,968 $ 1,999,744 Gross profit 450,448 472,858 879,597 1,003,455 Advertising and promotion expenses 102,428 104,744 213,245 297,435 Other selling and administrative expenses 402,487 367,551 365,579 411,967 Operating (loss) income (54,467 ) 563 300,773 294,053 (Loss) Income before income taxes (73,147 ) (19,898 ) 286,139 270,821 Net (loss) income (a) (58,177 ) (11,351 ) 223,784 215,160 Net (loss) income per common share—basic $ (0.17 ) $ (0.03 ) $ 0.66 $ 0.63 Weighted average number of common shares 338,579 338,843 339,420 339,815 Net (loss) income per common share—diluted $ (0.17 ) $ (0.03 ) $ 0.66 $ 0.63 Weighted average number of common and potential common shares 338,579 338,843 339,790 340,364 Dividends declared per common share $ 0.38 $ 0.38 $ 0.38 $ 0.38 Common stock market price: High $ 30.47 $ 30.20 $ 26.34 $ 27.69 Low 22.61 22.65 21.03 19.83 Year Ended December 31, 2014 Net sales $ 946,177 $ 1,062,252 $ 2,021,424 $ 1,993,966 Gross profit 481,531 492,570 1,021,138 1,005,783 Advertising and promotion expenses 90,834 99,853 218,746 323,810 Other selling and administrative expenses 384,479 391,709 392,913 444,964 Operating income 6,218 1,008 409,479 237,009 (Loss) Income before income taxes (9,421 ) (14,371 ) 394,180 216,522 Net (loss) income (a) (11,218 ) 28,325 331,836 149,931 Net (loss) income per common share—basic $ (0.03 ) $ 0.08 $ 0.97 $ 0.44 Weighted average number of common shares 340,226 338,709 338,728 338,416 Net (loss) income per common share—diluted $ (0.03 ) $ 0.08 $ 0.97 $ 0.44 Weighted average number of common and potential common shares 340,226 340,644 340,329 339,506 Dividends declared per common share $ 0.38 $ 0.38 $ 0.38 $ 0.38 Common stock market price: High $ 47.39 $ 40.32 $ 39.79 $ 31.86 Low 35.24 37.47 30.48 28.78 (a) Net loss for the first and second quarters of 2015 included net tax expense of $0.7 million and net tax benefits of $4.3 million , respectively, primarily related to reassessments of prior years’ tax liabilities based on the status of audits and tax filings in various jurisdictions around the world, settlements, and enacted law changes. Net income for the third and fourth quarters of 2015 included net tax expense of $0.8 million and net tax benefits of $16.3 million , respectively, primarily related to reassessments of prior years’ tax liabilities based on the status of audits and tax filings in various jurisdictions around the world, settlements, and enacted tax law changes. Net loss for the first quarter of 2014 included $3.7 million of net tax expense primarily related to reassessments of prior years’ tax liabilities based on the status of audits and tax filings in various jurisdictions, settlements, and enacted tax law changes. Net income for the second and third quarters of 2014 included net tax benefits of $40.1 million and $15.1 million , respectively, primarily related to reassessments of prior years’ tax liabilities based on the status of audits and tax filings in various jurisdictions, settlements, and enacted tax law changes. Net income for the fourth quarter of 2014 included net tax expense of $8.9 million , primarily related to a tax charge related to a 2014 tax restructuring for the HIT Entertainment and MEGA Brands operations, partially offset by reassessments of prior years’ tax liabilities based on the status of audits and tax filings in various jurisdictions around the world, settlements, and enacted tax law changes. |
Subsequent Event
Subsequent Event | 12 Months Ended |
Dec. 31, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent Events In January 2016, Mattel acquired substantially all of the assets of Fuhu, Inc., a developer of high technology products for children and families and best known for its nabi ® brand of products. In addition, Mattel completed its acquisition of Sproutling, Inc., a maker of smart technology products for parents and families, in January 2016. These acquisitions are expected to strengthen Mattel's digital and smart technology capabilities and create opportunities to bring new technology-enabled products to market. These acquisitions are immaterial, individually and in the aggregate, to Mattel. On February 1, 2016 , Mattel announced that its Board of Directors declared a first quarter dividend of $0.38 per common share. The dividend is payable on March 4, 2016 to stockholders of record on February 17, 2016 . |
Valuation and Qualifying Accoun
Valuation and Qualifying Accounts and Allowances | 12 Months Ended |
Dec. 31, 2015 | |
Valuation and Qualifying Accounts [Abstract] | |
Valuation and Qualifying Accounts and Allowances | MATTEL, INC. AND SUBSIDIARIES VALUATION AND QUALIFYING ACCOUNTS AND ALLOWANCES Balance at Beginning of Year Additions Charged to Operations Net Deductions and Other Balance at End of Year (In thousands) Allowance for Doubtful Accounts: Year ended December 31, 2015 $ 26,283 $ 5,813 $ (7,726 ) (a) $ 24,370 Year ended December 31, 2014 $ 20,416 $ 11,507 $ (5,640 ) (a) $ 26,283 Year ended December 31, 2013 $ 33,499 $ 4,471 $ (17,554 ) (a) $ 20,416 Allowance for Inventory Obsolescence: Year ended December 31, 2015 $ 46,899 $ 33,305 $ (34,489 ) (b) $ 45,715 Year ended December 31, 2014 $ 49,113 $ 39,235 $ (41,449 ) (b) $ 46,899 Year ended December 31, 2013 $ 46,585 $ 35,027 $ (32,499 ) (b) $ 49,113 Income Tax Valuation Allowances: Year ended December 31, 2015 $ 133,297 $ 8,161 (d) $ (64,124 ) (c) $ 77,334 Year ended December 31, 2014 $ 64,641 $ 73,497 $ (4,841 ) (c) $ 133,297 Year ended December 31, 2013 $ 67,705 $ 6,564 $ (9,628 ) (c) $ 64,641 (a) Includes write-offs, recoveries of previous write-offs, and currency translation adjustments. (b) Primarily relates to the disposal of related inventory and raw materials and currency translation adjustments. (c) Primarily represents projected utilization and write-offs of loss carryforwards and certain deferred tax assets for 2015; projected utilization and write-offs of loss carryforwards for 2014; and projected utilization and write-offs of loss carryforwards and changes in tax rates for 2013. (d) Primarily represents increases related to foreign losses without benefit and certain deferred tax assets. |
Summary of Significant Accoun24
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Principles of Consolidation and Basis of Preparation | Principles of Consolidation and Basis of Preparation The consolidated financial statements include the accounts of Mattel, Inc. and its subsidiaries. All wholly and majority-owned subsidiaries are consolidated and included in Mattel’s consolidated financial statements. Mattel does not have any minority stock ownership interests in which it has a controlling financial interest that would require consolidation. All significant intercompany accounts and transactions have been eliminated upon consolidation. |
Use of Estimates | Use of Estimates Preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (“US GAAP”) requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could ultimately differ from those estimates. |
Cash and Equivalents | Cash and Equivalents Cash and equivalents include short-term investments, which are highly liquid investments with maturities of three months or less when purchased. Such investments are stated at cost, which approximates market value. |
Accounts Receivable and Allowance for Doubtful Accounts | Accounts Receivable and Allowance for Doubtful Accounts Credit is granted to customers on an unsecured basis. Credit limits and payment terms are established based on extensive evaluations made on an ongoing basis throughout the fiscal year of the financial performance, cash generation, financing availability, and liquidity status of each customer. Customers are reviewed at least annually, with more frequent reviews performed as necessary, based on the customers’ financial condition and the level of credit being extended. For customers who are experiencing financial difficulties, management performs additional financial analyses before shipping to those customers on credit. Mattel uses a variety of financial arrangements to ensure collectibility of accounts receivable of customers deemed to be a credit risk, including requiring letters of credit, purchasing various forms of credit insurance with unrelated third parties, factoring, or requiring cash in advance of shipment. Mattel records an allowance for doubtful accounts based on management’s assessment of the business environment, customers’ financial condition, historical collection experience, accounts receivable aging, and customer disputes. |
Inventories | Inventories Inventories, net of an allowance for excess quantities and obsolescence, are stated at the lower of cost or market. Inventory allowances are charged to cost of sales and establish a lower cost basis for the inventory. Cost is determined by the first-in, first-out method. |
Property, Plant, and Equipment | Property, Plant, and Equipment Property, plant, and equipment are stated at cost less accumulated depreciation. Depreciation is computed using the straight-line method over estimated useful lives of 10 to 30 years for buildings, 3 to 15 years for machinery and equipment, 3 to 10 years for software, and 10 to 20 years, not to exceed the lease term, for leasehold improvements. Tools, dies, and molds are depreciated using the straight-line method over 3 years. Estimated useful lives are periodically reviewed and, where appropriate, changes are made prospectively. The carrying value of property, plant, and equipment is reviewed when events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. Any potential impairment identified is assessed by evaluating the operating performance and future undiscounted cash flows of the underlying assets. When property is sold or retired, the cost of the property and the related accumulated depreciation are removed from the consolidated balance sheet, and any resulting gain or loss is included in the results of operations. |
Goodwill | Goodwill and Intangible Assets Goodwill is allocated to various reporting units, which are at the operating segment level, for purposes of evaluating whether goodwill is impaired. Mattel’s reporting units are: (i) North America, (ii) International, and (iii) American Girl. Components of the operating segments have been aggregated into a single reporting unit as the components have similar economic characteristics. The similar economic characteristics include the nature of the products, the nature of the production processes, the customers, and the manner in which the products are distributed. Mattel tests its goodwill for impairment annually in the third quarter and whenever events or changes in circumstances indicate that the carrying value of a reporting unit may exceed its fair value. |
Nonamortizable Intangible Assets | Mattel tests its nonamortizable intangible assets, including trademarks and trade names, for impairment by comparing the estimated fair values of the nonamortizable intangible assets with the carrying values. Mattel tests nonamortizable intangible assets for impairment annually in the third quarter or whenever events or changes in circumstances indicate that the carrying value may exceed its fair value. |
Amortizable Intangible Assets | Mattel also tests its amortizable intangible assets, which are primarily comprised of trademarks and trade names, for impairment whenever events or changes in circumstances indicate that the carrying value of the asset may not be recovered. |
Foreign Currency Translation Exposure | Foreign Currency Translation Exposure Mattel’s reporting currency is the US dollar. The translation of its net investments in subsidiaries with non-US dollar functional currencies subjects Mattel to the impact of currency exchange rate fluctuations in its results of operations and financial position. Assets and liabilities of subsidiaries with non-US dollar functional currencies are translated into US dollars at year-end exchange rates. Income, expense, and cash flow items are translated at weighted average exchange rates prevailing during the year. The resulting currency translation adjustments are recorded as a component of accumulated other comprehensive loss within stockholders’ equity. Mattel’s primary currency translation exposures in 2015 were related to its net investments in entities having functional currencies denominated in the Euro, Brazilian real, Mexican peso, and British pound sterling. |
Foreign Currency Transaction Exposure | Foreign Currency Transaction Exposure Currency exchange rate fluctuations may impact Mattel’s results of operations and cash flows. Mattel’s currency transaction exposures include gains and losses realized on unhedged inventory purchases and unhedged receivables and payables balances that are denominated in a currency other than the applicable functional currency. Gains and losses on unhedged inventory purchases and other transactions associated with operating activities are recorded in the components of operating income in the consolidated statement of operations. Gains and losses on unhedged intercompany loans and advances are recorded as a component of other non-operating (income) expense, net in the consolidated statement of operations in the period in which the currency exchange rate changes. Inventory transactions denominated in the Euro, British pound sterling, Mexican peso, Australian dollar, Canadian dollar, Brazilian real, Russian ruble, Malaysian ringgit, and Indonesian rupiah were the primary transactions that caused foreign currency transaction exposure for Mattel in 2015. |
Derivative Instruments | Derivative Instruments Mattel uses foreign currency forward exchange contracts as cash flow hedges primarily to hedge its purchases and sales of inventory denominated in foreign currencies. At the inception of the contracts, Mattel designates these derivatives as cash flow hedges and documents the relationship of the hedge to the underlying transaction. Hedge effectiveness is assessed at inception and throughout the life of the hedge to ensure the hedge qualifies for hedge accounting. Changes in fair value associated with hedge ineffectiveness, if any, are recorded in the results of operations. Changes in fair value of cash flow hedge derivatives are deferred and recorded as part of accumulated other comprehensive loss in stockholders’ equity until the underlying transaction affects earnings. In the event that an anticipated transaction is no longer likely to occur, Mattel recognizes the change in fair value of the derivative in its results of operations in the period the determination is made. Additionally, Mattel uses foreign currency forward exchange contracts to hedge intercompany loans and advances denominated in foreign currencies. Due to the short-term nature of the contracts involved, Mattel does not use hedge accounting for these contracts, and as such, changes in fair value are recorded in the period of change in the consolidated statements of operations. |
Revenue Recognition | Revenue Recognition and Sales Adjustments Revenue is recognized upon shipment or upon receipt of products by the customer, depending on the terms, provided that: there are no uncertainties regarding customer acceptance; persuasive evidence of an agreement exists documenting the specific terms of the transaction; the sales price is fixed or determinable; and collectibility is reasonably assured. Management assesses the business environment, the customer’s financial condition, historical collection experience, accounts receivable aging, and customer disputes to determine whether collectibility is reasonably assured. If collectibility is not considered reasonably assured at the time of sale, Mattel does not recognize revenue until collection occurs. Value added taxes are recorded on a net basis and are excluded from revenue. |
Sales Adjustments | Mattel routinely enters into arrangements with its customers to provide sales incentives, support customer promotions, and provide allowances for returns and defective merchandise. Such programs are based primarily on customer purchases, customer performance of specified promotional activities, and other specified factors such as sales to consumers. The costs of these programs are recorded as sales adjustments that reduce gross revenue in the period the related revenue is recognized. |
Advertising and Promotion Costs | Advertising and Promotion Costs Costs of media advertising are expensed the first time the advertising takes place, except for direct-response advertising, which is capitalized and amortized over its expected period of future benefits. Direct-response advertising consists primarily of catalog production and mailing costs, which are generally amortized within three months from the date the catalogs are mailed. |
Product Recalls and Withdrawals | Product Recalls and Withdrawals Mattel establishes a reserve for product recalls and withdrawals on a product-specific basis when circumstances giving rise to the recall or withdrawal become known. Facts and circumstances related to the recall or withdrawal, including where the product affected by the recall or withdrawal is located (e.g., with consumers, in customers’ inventory, or in Mattel’s inventory), cost estimates for shipping and handling for returns, cost estimates for communicating the recall or withdrawal to consumers and customers, and cost estimates for parts and labor if the recalled or withdrawn product is deemed to be repairable, are considered when establishing a product recall or withdrawal reserve. These factors are updated and reevaluated each period, and the related reserves are adjusted when these factors indicate that the recall or withdrawal reserve is either not sufficient to cover or exceeds the estimated product recall or withdrawal expenses. |
Design and Development Costs | Design and Development Costs Product design and development costs primarily include employee compensation and outside services and are charged to the results of operations as incurred. |
Employee Benefit Plans | Employee Benefit Plans Mattel and certain of its subsidiaries have retirement and other postretirement benefit plans covering substantially all employees of these companies. Actuarial valuations are used in determining amounts recognized in the financial statements for certain retirement and other postretirement benefit plans (see “Note 4 to the Consolidated Financial Statements—Employee Benefit Plans”). |
Share-Based Payments | Share-Based Payments Mattel recognizes the cost of employee share-based payment awards on a straight-line attribution basis over the requisite employee service period, net of estimated forfeitures. In determining when additional tax benefits associated with share-based payment exercises are recognized, Mattel follows the ordering of deductions under the tax law, which allows deductions for share-based payment exercises to be utilized before previously existing net operating loss carryforwards. Determining the fair value of share-based awards at the measurement date requires judgment, including estimating the expected term that stock options will be outstanding prior to exercise, the associated volatility, and the expected dividends. Mattel estimates the fair value of options granted using the Black-Scholes valuation model. The expected life of the options used in this calculation is the period of time the options are expected to be outstanding and has been determined based on historical exercise experience. Expected stock price volatility is based on the historical volatility of Mattel’s stock for a period approximating the expected life, the expected dividend yield is based on Mattel’s most recent actual annual dividend payout, and the risk-free interest rate is based on the implied yield available on US Treasury zero-coupon issues approximating the expected life. Judgment is also required in estimating the amount of share-based awards that will be forfeited prior to vesting. |
Income Taxes | Income Taxes Certain income and expense items are accounted for differently for financial reporting and income tax purposes. Deferred income tax assets and liabilities are determined based on the difference between the financial statement and tax bases of assets and liabilities, applying enacted statutory income tax rates in effect for the year in which the differences are expected to reverse. In the normal course of business, Mattel is regularly audited by federal, state, local, and foreign tax authorities. The ultimate settlement of any particular issue with the applicable taxing authority could have a material impact on Mattel’s consolidated financial statements. |
Venezuelan Operations | Venezuelan Operations Since 2010, Mattel has accounted for Venezuela as a highly inflationary economy and, accordingly, Mattel’s Venezuelan subsidiary uses the US dollar as its functional currency. Mattel’s Venezuelan subsidiary has been unable to access US dollars as a result of currency restrictions enacted by the Venezuelan government. These currency restrictions, along with economic and political instability, continue to impact the operating results of Mattel’s Venezuelan subsidiary. Mattel's Venezuelan subsidiary currently uses the official exchange rate as its remeasurement rate. During February 2015, the Venezuelan government announced the launch of a new three-tiered currency exchange platform, which included a new exchange system called the Marginal Currency System ("SIMADI"). During February 2016, the Venezuelan government revised its official exchange rate to 10.00 BsF per US dollar and eliminated the intermediate tier. The official exchange rate will be used for essential imports, such as food and medicine, and the SIMADI rate will be used for all other transactions. Had Mattel used the new official exchange rate of 10.00 BsF per US dollar as of December 31, 2015 as its remeasurement rate, it would have recognized a pre-tax charge of approximately $8 million in its consolidated statements of operations. Had Mattel used the SIMADI rate of 198.70 BsF per US dollar as of December 31, 2015 as its remeasurement rate, it would have recognized a pre-tax charge of approximately $22 million in its consolidated statements of operations. However, Mattel is continuing to evaluate its remeasurement rate and is considering a change of its remeasurement rate to the SIMADI rate in the first quarter of 2016, which would result in a pre-tax charge of approximately $22 million . Mattel’s Venezuelan subsidiary represented less than 0.01% of Mattel’s consolidated net sales in 2015 and had approximately $22 million of net monetary assets denominated in Venezuelan bolivar fuerte as of December 31, 2015. If the Venezuelan bolivar fuerte significantly devalues in the future, or if the economic or political conditions in Venezuela significantly worsen, Mattel may consider ceasing operations of its Venezuelan subsidiary, which could result in a pre-tax charge to its consolidated statement of operations of up to $95 million . |
New Accounting Pronouncements | New Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers (Topic 606) , which supersedes the revenue recognition requirements in Accounting Standards Codification (“ASC”) 605, Revenue Recognition , and most industry-specific guidance. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The new guidance establishes a five-step model to achieve that core principle and also requires additional disclosures about the nature, amount, timing, and uncertainty of revenue and cash flows arising from customer contracts. ASU 2014-09 was originally effective for interim and annual reporting periods beginning after December 15, 2016. In August 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers (Topic 606) – Deferral of the Effective Date , which defers the effective date to annual reporting periods beginning after December 15, 2017. Early application is permitted after December 15, 2016. Mattel is currently evaluating the impact of the adoption of ASU 2014-09 and ASU 2015-14 on its operating results and financial position. In June 2014, the FASB issued ASU 2014-12, Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period , which requires that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. ASU 2014-12 will be effective for interim and annual reporting periods beginning after December 15, 2015. Early application is permitted. Mattel is currently evaluating the impact of the adoption of ASU 2014-12 on its operating results and financial position. In April 2015, the FASB issued ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs , which requires debt issuance costs to be presented in the balance sheet as a direct deduction from the associated debt liability. ASU 2015-03 will not change the amortization of debt issuance costs, which will continue to follow the existing accounting guidance. In August 2015, the FASB issued ASU 2015-15, Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements , which permits debt issuance costs associated with line-of-credit arrangements to continue to be deferred and presented as an asset in the balance sheet and subsequently amortized ratably over the term of the line-of-credit arrangement. ASU 2015-03 and ASU 2015-15 will be effective for interim and annual reporting periods beginning after December 15, 2015. Early application is permitted. Mattel is currently evaluating the impact of the adoption of ASU 2015-03 and ASU 2015-15 on its operating results and financial position. In May 2015, the FASB issued ASU 2015-07, Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent) , which removes the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the net asset value per share practical expedient. ASU 2015-07 additionally removes the requirement to make certain disclosures for all investments that are eligible to be measured at fair value using the net asset value per share practical expedient. ASU 2015-07 will be effective for interim and annual reporting periods beginning after December 15, 2015. Early application is permitted. Mattel is currently evaluating the impact of the adoption of ASU 2015-07 on its financial statement disclosures. In July 2015, the FASB issued ASU 2015-11, Simplifying the Measurement of Inventory , which requires an entity that uses first-in, first-out or average cost to measure its inventory at the lower of cost or net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. ASU 2015-11 will be effective for interim and annual reporting periods beginning after December 15, 2016. Early application is permitted. Mattel is currently evaluating the impact of the adoption of ASU 2015-11 on its operating results and financial position. In September 2015, the FASB issued ASU 2015-16, Simplifying the Accounting for Measurement-Period Adjustments , which requires that an acquirer recognize adjustments to provisional amounts recognized in a business combination in the reporting period in which the adjustment amounts are determined. It also requires disclosure of the adjustment recorded in current period earnings by line item that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date. ASU 2015-16 eliminates the requirement to retrospectively revise comparative information for prior periods. ASU 2015-16 will be effective for interim and annual reporting periods beginning after December 15, 2015. Early application is permitted. Mattel is currently evaluating the impact of the adoption of ASU 2015-16 on its financial statement disclosures. In November 2015, the FASB issued ASU 2015-17, Balance Sheet Classification of Deferred Taxes , which conforms US GAAP to IFRS by requiring that all deferred taxes be presented as noncurrent. This guidance does not change the existing requirement that only permits offsetting within a jurisdiction. ASU 2015-17 will be effective for interim and annual reporting periods beginning after December 15, 2016. Early application is permitted. Mattel is currently evaluating the impact of the adoption of ASU 2015-17 on its financial position. |
Income Tax Uncertainties and Unrecognized Tax Benefits Policy | In assessing whether uncertain tax positions should be recognized in its financial statements, Mattel first determines whether it is more-likely-than-not that a tax position will be sustained upon examination, including resolution of any related appeals or litigation processes, based on the technical merits of the position. In evaluating whether a tax position has met the more-likely-than-not recognition threshold, Mattel presumes that the position will be examined by the appropriate taxing authority that would have full knowledge of all relevant information. For tax positions that meet the more-likely-than-not recognition threshold, Mattel measures the amount of benefit recognized in the financial statements at the largest amount of benefit that is greater than 50 percent likely of being realized upon ultimate settlement. Mattel recognizes unrecognized tax benefits in the first financial reporting period in which information becomes available indicating that such benefits will more-likely-than-not be realized. Mattel records unrecognized tax benefits for US federal, state, local, and foreign tax positions related primarily to transfer pricing, tax credits claimed, tax nexus, and apportionment. For each reporting period, management applies a consistent methodology to measure unrecognized tax benefits, and all unrecognized tax benefits are reviewed periodically and adjusted as circumstances warrant. Mattel’s measurement of its unrecognized tax benefits is based on management’s assessment of all relevant information, including prior audit experience, the status of audits, conclusions of tax audits, lapsing of applicable statutes of limitations, identification of new issues, and any administrative guidance or developments. |
Debt Policy | The proportion of unamortized debt issuance costs from the prior facility renewal related to creditors involved in both the prior facility and amended facility and borrowing costs incurred as a result of the amendment were deferred, and such costs will be amortized over the term of the amended facility. |
Earnings Per Share Policy | Unvested share-based payment awards that contain nonforfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are participating securities and are included in the computation of earnings per share pursuant to the two-class method. Certain of Mattel’s RSUs are considered participating securities because they contain nonforfeitable rights to dividend equivalents. Under the two-class method, net income is reduced by the amount of dividends declared in the period for each class of common stock and participating securities. The remaining undistributed earnings are then allocated to common stock and participating securities as if all of the net income for the period had been distributed. Basic earnings per common share excludes dilution and is calculated by dividing net income allocable to common shares by the weighted average number of common shares outstanding for the period. Diluted earnings per common share is calculated by dividing net income allocable to common shares by the weighted average number of common shares for the period, as adjusted for the potential dilutive effect of non-participating share-based awards. |
Segment Information | Mattel does not include sales adjustments such as trade discounts and other allowances in the calculation of segment revenues (referred to as “gross sales”). Mattel records these adjustments in its financial accounting systems at the time of sale to each customer, but the adjustments are not allocated to individual products. For this reason, Mattel’s CODM uses gross sales by segment as one of the metrics to measure segment performance. Such sales adjustments are included in the determination of segment income from operations based on the adjustments recorded in the financial accounting systems. Segment income represents each segment’s operating income, while consolidated operating income represents income from operations before net interest, other non-operating income, and income taxes as reported in the consolidated statements of operations. The corporate and other expense category includes costs not allocated to individual segments, including charges related to incentive compensation, share-based payments, and corporate headquarters functions managed on a worldwide basis, and the impact of changes in foreign currency rates on intercompany transactions. |
Earnings Per Share Earnings Per
Earnings Per Share Earnings Per Share, Policy (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Earnings Per Share Policy | Unvested share-based payment awards that contain nonforfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are participating securities and are included in the computation of earnings per share pursuant to the two-class method. Certain of Mattel’s RSUs are considered participating securities because they contain nonforfeitable rights to dividend equivalents. Under the two-class method, net income is reduced by the amount of dividends declared in the period for each class of common stock and participating securities. The remaining undistributed earnings are then allocated to common stock and participating securities as if all of the net income for the period had been distributed. Basic earnings per common share excludes dilution and is calculated by dividing net income allocable to common shares by the weighted average number of common shares outstanding for the period. Diluted earnings per common share is calculated by dividing net income allocable to common shares by the weighted average number of common shares for the period, as adjusted for the potential dilutive effect of non-participating share-based awards. |
Goodwill and Other Intangibles
Goodwill and Other Intangibles (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | The change in the carrying amount of goodwill by operating segment for 2015 and 2014 is shown below. Brand-specific goodwill held by foreign subsidiaries is allocated to the North America and American Girl operating segments selling those brands, thereby causing a foreign currency translation impact for these operating segments. North America International American Girl Total (In thousands) Balance at December 31, 2013 $ 547,595 $ 321,656 $ 213,988 $ 1,083,239 Acquisition (a) 175,608 143,679 — 319,287 Currency exchange rate impact (2,264 ) (6,569 ) (768 ) (9,601 ) Balance at December 31, 2014 720,939 458,766 213,220 1,392,925 Currency exchange rate impact (1,940 ) (5,887 ) (578 ) (8,405 ) Balance at December 31, 2015 $ 718,999 $ 452,879 $ 212,642 $ 1,384,520 (a) Balance has been retrospectively adjusted to reflect final purchase price allocation of the MEGA Brands Inc. acquisition. |
Schedule of Identifiable Intangibles | Identifiable intangibles include the following: December 31, 2015 2014 (In thousands) Nonamortizable identifiable intangibles $ 488,144 $ 498,517 Identifiable intangibles (net of amortization of $131.5 and $103.6 million at December 31, 2015 and 2014, respectively) 212,161 240,227 $ 700,305 $ 738,744 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Pre-tax Income | Consolidated pre-tax income consists of the following: For the Year 2015 2014 2013 (In thousands) US operations $ (3,435 ) $ 39,149 $ 231,372 Foreign operations 467,350 547,761 867,756 $ 463,915 $ 586,910 $ 1,099,128 |
Provision (Benefit) for Current and Deferred Income Taxes | The provision (benefit) for current and deferred income taxes consists of the following: For the Year 2015 2014 2013 (In thousands) Current Federal $ (1,405 ) $ (25,075 ) $ 38,227 State 1,946 (2,029 ) 6,447 Foreign 89,825 106,998 130,878 90,366 79,894 175,552 Deferred Federal (3,802 ) 21,987 30,342 State (2,200 ) 8,233 (512 ) Foreign 10,135 (22,078 ) (10,198 ) 4,133 8,142 19,632 Provision for income taxes $ 94,499 $ 88,036 $ 195,184 |
Deferred Income Tax Assets (Liabilities) | Deferred income taxes are provided principally for tax credit carryforwards, research and development expenses, net operating loss carryforwards, employee compensation-related expenses, and certain other reserves that are recognized in different years for financial statement and income tax reporting purposes. Mattel’s deferred income tax assets (liabilities) are composed of the following: December 31, 2015 2014 (In thousands) Allowances and reserves $ 211,538 $ 233,434 Research and development expenses 191,057 189,694 Loss carryforwards 150,270 172,347 Deferred compensation 98,832 91,530 Tax credit carryforwards 50,309 54,674 Postretirement benefits 48,648 50,235 Intangible assets 14,035 30,803 Other 71,453 68,604 Gross deferred income tax assets 836,142 891,321 Intangible assets (305,818 ) (298,444 ) Other (2,905 ) (3,868 ) Gross deferred income tax liabilities (308,723 ) (302,312 ) Deferred income tax asset valuation allowances (77,334 ) (133,297 ) Net deferred income tax assets $ 450,085 $ 455,712 |
Balance Sheet Classification of Deferred Income Tax Assets (Liabilities) | Net deferred income tax assets are reported in the consolidated balance sheets as follows: December 31, 2015 2014 (In thousands) Prepaid expenses and other current assets $ 195,804 $ 195,841 Other noncurrent assets 317,391 385,434 Accrued liabilities (43 ) (181 ) Other noncurrent liabilities (63,067 ) (125,382 ) $ 450,085 $ 455,712 |
Expiration of Loss and Tax Credit Carryforwards | Mattel’s loss and tax credit carryforwards expire in the following periods: Loss Carryforwards Tax Credit Carryforwards (In thousands) 2016 – 2020 $ 76,686 $ 684 Thereafter 316,722 45,682 No expiration date 247,200 3,943 Total $ 640,608 $ 50,309 |
Reconciliation of Provision for Income Taxes at US Federal Statutory Rate to Provision in Statements of Operations | Differences between the provision for income taxes at the US federal statutory income tax rate and the provision in the consolidated statements of operations are as follows: For the Year 2015 2014 2013 (In thousands) Provision at US federal statutory rate $ 162,370 $ 205,419 $ 384,695 (Decrease) increase resulting from: Foreign earnings taxed at different rates, including withholding taxes (56,877 ) (107,409 ) (165,768 ) Foreign losses without income tax benefit 5,843 20,140 3,215 State and local taxes, net of US federal benefit 482 3,760 4,854 Adjustments to previously accrued taxes (19,134 ) (55,026 ) (32,200 ) Tax restructuring — 12,400 — Other 1,815 8,752 388 Provision for income taxes $ 94,499 $ 88,036 $ 195,184 |
Reconciliation of Unrecognized Tax Benefits | A reconciliation of unrecognized tax benefits is as follows: For the Year 2015 2014 2013 (In thousands) Unrecognized tax benefits at January 1 $ 100,357 $ 111,370 $ 285,560 Increases for positions taken in current year 5,724 9,886 12,997 Increases for positions taken in a prior year 22,584 53,221 14,289 Decreases for positions taken in a prior year (4,242 ) (51,421 ) (186,555 ) Decreases for settlements with taxing authorities (3,577 ) (9,493 ) (5,135 ) Decreases for lapses in the applicable statute of limitations (2,747 ) (13,206 ) (9,786 ) Unrecognized tax benefits at December 31 $ 118,099 $ 100,357 $ 111,370 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Summary of Retirement Plan Expense | A summary of retirement plan expense is as follows: For the Year 2015 2014 2013 (In thousands) Defined contribution retirement plans $ 40,673 $ 43,819 $ 43,694 Defined benefit pension plans 14,779 18,124 30,747 Deferred compensation and excess benefit plans 225 4,840 9,298 Postretirement benefit plans 1,396 1,461 2,245 $ 57,073 $ 68,244 $ 85,984 |
Summary of Components of Net Periodic Benefit Cost | A summary of the components of Mattel’s net periodic benefit cost and other changes in plan assets and benefit obligations recognized in other comprehensive income for the years ended December 31 is as follows: Defined Benefit Pension Plans Postretirement Benefit Plans 2015 2014 2013 2015 2014 2013 (In thousands) Net periodic benefit cost: Service cost $ 6,105 $ 7,515 $ 12,982 $ 54 $ 67 $ 82 Interest cost 26,007 27,708 25,580 1,194 1,377 1,585 Expected return on plan assets (29,850 ) (31,833 ) (29,786 ) — — — Amortization of prior service credit (465 ) (1,037 ) (1,057 ) — — — Recognized actuarial loss 15,168 15,771 21,193 148 17 578 Settlement loss 6,453 — 1,835 — — — Curtailment gain (8,639 ) — — — — — Net periodic benefit cost $ 14,779 $ 18,124 $ 30,747 $ 1,396 $ 1,461 $ 2,245 Other changes in plan assets and benefit obligations recognized in other comprehensive income: Net actuarial (gain) loss $ (8,813 ) $ 48,502 $ (95,744 ) $ (3,130 ) $ (2,205 ) $ 3,470 Prior service cost 8,691 20 — — — — Amortization of prior service credit 465 1,037 1,057 — — — Total recognized in other comprehensive income (a) $ 343 $ 49,559 $ (94,687 ) $ (3,130 ) $ (2,205 ) $ 3,470 Total recognized in net periodic benefit cost and other comprehensive income $ 15,122 $ 67,683 $ (63,940 ) $ (1,734 ) $ (744 ) $ 5,715 (a) Amounts exclude related tax expense (benefit) of $1.1 million , $(17.8) million , and $32.5 million , during 2015 , 2014 , and 2013 , respectively, which are also included in other comprehensive income. |
Summary of Summary of Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income | A summary of the components of Mattel’s net periodic benefit cost and other changes in plan assets and benefit obligations recognized in other comprehensive income for the years ended December 31 is as follows: Defined Benefit Pension Plans Postretirement Benefit Plans 2015 2014 2013 2015 2014 2013 (In thousands) Net periodic benefit cost: Service cost $ 6,105 $ 7,515 $ 12,982 $ 54 $ 67 $ 82 Interest cost 26,007 27,708 25,580 1,194 1,377 1,585 Expected return on plan assets (29,850 ) (31,833 ) (29,786 ) — — — Amortization of prior service credit (465 ) (1,037 ) (1,057 ) — — — Recognized actuarial loss 15,168 15,771 21,193 148 17 578 Settlement loss 6,453 — 1,835 — — — Curtailment gain (8,639 ) — — — — — Net periodic benefit cost $ 14,779 $ 18,124 $ 30,747 $ 1,396 $ 1,461 $ 2,245 Other changes in plan assets and benefit obligations recognized in other comprehensive income: Net actuarial (gain) loss $ (8,813 ) $ 48,502 $ (95,744 ) $ (3,130 ) $ (2,205 ) $ 3,470 Prior service cost 8,691 20 — — — — Amortization of prior service credit 465 1,037 1,057 — — — Total recognized in other comprehensive income (a) $ 343 $ 49,559 $ (94,687 ) $ (3,130 ) $ (2,205 ) $ 3,470 Total recognized in net periodic benefit cost and other comprehensive income $ 15,122 $ 67,683 $ (63,940 ) $ (1,734 ) $ (744 ) $ 5,715 (a) Amounts exclude related tax expense (benefit) of $1.1 million , $(17.8) million , and $32.5 million , during 2015 , 2014 , and 2013 , respectively, which are also included in other comprehensive income. |
Assumptions Used to Calculate Net Periodic Benefit Cost for Domestic Defined Benefit Pension and Postretirement Benefit Plans | Net periodic benefit cost for Mattel’s domestic defined benefit pension and postretirement benefit plans was calculated on January 1 of each year using the following assumptions: For the Year 2015 2014 2013 Defined benefit pension plans: Discount rate 3.8 % 4.7 % 4.0 % Weighted average rate of future compensation increases 3.8 % 3.8 % 3.8 % Long-term rate of return on plan assets (a) 8.0 % 8.0 % Postretirement benefit plans: Discount rate 3.8 % 4.7 % 4.0 % Annual increase in Medicare Part B premium 6.0 % 6.0 % 6.0 % Health care cost trend rate: Pre-65 7.5 % 8.5 % 8.5 % Post-65 8.8 % 7.5 % 7.5 % Ultimate cost trend rate: Pre-65 4.5 % 6.1 % 6.1 % Post-65 4.5 % 5.4 % 5.4 % Year that the rate reaches the ultimate cost trend rate: Pre-65 2023 2030 2030 Post-65 2024 2030 2030 (a) A long-term rate of return on plan assets of 7.5% was used for the first half of 2015. A long-term rate of return on plan assets of 6.8% was used for the second half of 2015, resulting from a change in the plans' target asset allocation. |
Summary of Changes in Benefit Obligation and Plan Assets for Defined Benefit Pension and Postretirement Benefit Plans | A summary of the changes in benefit obligation and plan assets is as follows: Defined Benefit Pension Plans Postretirement Benefit Plans 2015 2014 2015 2014 (In thousands) Change in Benefit Obligation: Benefit obligation, beginning of year $ 677,641 $ 616,938 $ 34,402 $ 37,914 Service cost 6,105 7,515 54 67 Interest cost 26,007 27,708 1,194 1,377 Impact of currency exchange rate changes (11,016 ) (10,673 ) — — Actuarial (gain) loss (14,604 ) 75,839 (2,981 ) (2,188 ) Benefits paid (67,994 ) (39,686 ) (2,253 ) (2,768 ) Plan amendments (4,649 ) — — — Benefit obligation, end of year $ 611,490 $ 677,641 $ 30,416 $ 34,402 Change in Plan Assets: Plan assets at fair value, beginning of year $ 475,940 $ 456,445 $ — $ — Actual return on plan assets (690 ) 43,804 — — Employer contributions 33,353 21,596 2,253 2,768 Impact of currency exchange rate changes (5,335 ) (6,219 ) — — Benefits paid (67,994 ) (39,686 ) (2,253 ) (2,768 ) Plan assets at fair value, end of year $ 435,274 $ 475,940 $ — $ — Net Amount Recognized in Consolidated Balance Sheets: Funded status, end of year $ (176,216 ) $ (201,701 ) $ (30,416 ) $ (34,402 ) Current accrued benefit liability (7,416 ) (2,540 ) (3,300 ) (3,600 ) Noncurrent accrued benefit liability (168,800 ) (199,161 ) (27,116 ) (30,802 ) Total accrued benefit liability $ (176,216 ) $ (201,701 ) $ (30,416 ) $ (34,402 ) Amounts Recognized in Accumulated Other Comprehensive Loss (a): Net actuarial loss $ 244,780 $ 253,593 $ 1,784 $ 4,914 Prior service cost (credit) 120 (9,036 ) — — $ 244,900 $ 244,557 $ 1,784 $ 4,914 (a) Amounts exclude related tax benefits of $86.8 million and $88.0 million for December 31, 2015 and 2014 , respectively, which are also included in accumulated other comprehensive loss. |
Assumptions Used to Determine Projected and Accumulated Benefit Obligations of Domestic Defined Benefit Pension and Postretirement Benefit Plans | The assumptions used in determining the projected and accumulated benefit obligations of Mattel’s domestic defined benefit pension and postretirement benefit plans are as follows: December 31, 2015 2014 Defined benefit pension plans: Discount rate 4.2 % 3.8 % Weighted average rate of future compensation increases 3.8 % 3.8 % Postretirement benefit plans: Discount rate 4.2 % 3.8 % Annual increase in Medicare Part B premium 6.0 % 6.0 % Health care cost trend rate: Pre-65 7.0 % 7.5 % Post-65 8.3 % 8.8 % Ultimate cost trend rate: Pre-65 4.5 % 4.5 % Post-65 4.5 % 4.5 % Year that the rate reaches the ultimate cost trend rate: Pre-65 2023 2023 Post-65 2024 2024 |
Estimated Future Benefit Payments for Defined Benefit Pension and Postretirement Benefit Plans | The estimated future benefit payments for Mattel’s defined benefit pension and postretirement benefit plans are as follows: Defined Benefit Pension Plans Postretirement Benefit Plans (In thousands) 2016 $ 37,588 $ 3,300 2017 39,477 3,100 2018 38,114 3,100 2019 35,783 3,100 2020 36,547 2,900 2021 – 2025 182,695 13,400 |
Plan Assets Measured and Reported in Financial Statements at Fair Value | Mattel’s defined benefit pension plan assets are measured and reported in the financial statements at fair value using inputs, which are more fully described in “Note 10 to the Consolidated Financial Statements—Fair Value Measurements,” as follows: December 31, 2015 Level 1 Level 2 Level 3 Total (In thousands) Collective trust funds: US equity securities $ — $ 86,466 $ — $ 86,466 International equity securities — 255,694 — 255,694 International fixed income — 44,118 — 44,118 US government and US government agency securities — 1,540 — 1,540 US corporate debt instruments — 31,254 — 31,254 International corporate debt instruments — 5,612 — 5,612 Mutual funds 567 — — 567 Other — 10,023 — 10,023 Total $ 567 $ 434,707 $ — $ 435,274 December 31, 2014 Level 1 Level 2 Level 3 Total (In thousands) Collective trust funds: US equity securities $ — $ 174,027 $ — $ 174,027 International equity securities — 166,432 — 166,432 International fixed income — 47,260 — 47,260 US government and US government agency securities — 36,531 — 36,531 US corporate debt instruments — 24,628 — 24,628 International corporate debt instruments — 4,700 — 4,700 Mutual funds 561 15,000 — 15,561 Other — 6,801 — 6,801 Total $ 561 $ 475,379 $ — $ 475,940 |
Seasonal Financing and Debt (Ta
Seasonal Financing and Debt (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Mattel’s long-term debt consists of the following: December 31, 2015 2014 (In thousands) 2010 Senior Notes due October 2020 and October 2040 $ 500,000 $ 500,000 2011 Senior Notes due November 2016 and November 2041 600,000 600,000 2013 Senior Notes due March 2018 and March 2023 500,000 500,000 2014 Senior Notes due May 2019 500,000 500,000 2,100,000 2,100,000 Less: current portion (300,000 ) — Total long-term debt $ 1,800,000 $ 2,100,000 |
Long-Term Debt Maturity | The aggregate amount of long-term debt maturing in the next five years and thereafter is as follows: 2010 Senior Notes 2011 Senior Notes 2013 Senior Notes 2014 Senior Notes Total (In thousands) 2016 $ — $ 300,000 $ — $ — $ 300,000 2017 — — — — — 2018 — — 250,000 — 250,000 2019 — — — 500,000 500,000 2020 250,000 — — — 250,000 Thereafter 250,000 300,000 250,000 — 800,000 $ 500,000 $ 600,000 $ 500,000 $ 500,000 $ 2,100,000 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
Summary of Changes in Accumulated Other Comprehensive Income (Loss) | The following tables present changes in the accumulated balances for each component of other comprehensive income, including current period other comprehensive income and reclassifications out of accumulated other comprehensive income (loss): For the Year Ended December 31, 2015 Derivative Instruments Defined Benefit Pension Plans Currency Translation Adjustments Total (In thousands) Accumulated Other Comprehensive Income (Loss), Net of Tax, as of December 31, 2014 $ 30,025 $ (161,507 ) $ (490,607 ) $ (622,089 ) Other comprehensive income (loss) before reclassifications 37,926 (6,443 ) (213,797 ) (182,314 ) Amounts reclassified from accumulated other comprehensive income (loss) (52,588 ) 8,092 — (44,496 ) Net (decrease) increase in other comprehensive income (14,662 ) 1,649 (213,797 ) (226,810 ) Accumulated Other Comprehensive Income (Loss), Net of Tax, as of December 31, 2015 $ 15,363 $ (159,858 ) $ (704,404 ) $ (848,899 ) For the Year Ended December 31, 2014 Derivative Instruments Defined Benefit Pension Plans Currency Translation Adjustments Total (In thousands) Accumulated Other Comprehensive Income (Loss), Net of Tax, as of December 31, 2013 $ (10,789 ) $ (131,946 ) $ (300,941 ) $ (443,676 ) Other comprehensive income (loss) before reclassifications 39,931 (38,969 ) (189,666 ) (188,704 ) Amounts reclassified from accumulated other comprehensive income (loss) 883 9,408 — 10,291 Net increase (decrease) in other comprehensive income 40,814 (29,561 ) (189,666 ) (178,413 ) Accumulated Other Comprehensive Income (Loss), Net of Tax, as of December 31, 2014 $ 30,025 $ (161,507 ) $ (490,607 ) $ (622,089 ) For the Year Ended December 31, 2013 Derivative Instruments Defined Benefit Pension Plans Currency Translation Adjustments Total (In thousands) Accumulated Other Comprehensive Income (Loss), Net of Tax, as of December 31, 2012 $ (2,583 ) $ (190,656 ) $ (271,247 ) $ (464,486 ) Other comprehensive (loss) income before reclassifications (13,103 ) 44,288 (29,694 ) 1,491 Amounts reclassified from accumulated other comprehensive income (loss) 4,897 14,422 — 19,319 Net (decrease) increase in other comprehensive income (8,206 ) 58,710 (29,694 ) 20,810 Accumulated Other Comprehensive Income (Loss), Net of Tax, as of December 31, 2013 $ (10,789 ) $ (131,946 ) $ (300,941 ) $ (443,676 ) |
Summary of Consolidated Statement of Operations Line Items Affected by Reclassifications from Accumulated Other Comprehensive Income (Loss) | The following table presents the classification and amount of the reclassifications from accumulated other comprehensive income (loss) to the consolidated statement of operations: For the Year Statements of Operations Classification 2015 2014 2013 (In thousands) Derivative Instruments Gain (loss) on foreign currency forward exchange contracts $ 52,037 $ (916 ) $ (5,735 ) Cost of sales 551 33 838 Provision for income taxes $ 52,588 $ (883 ) $ (4,897 ) Net income Defined Benefit Pension Plans Amortization of prior service credit $ 465 $ 1,037 $ 1,057 (a) Recognized actuarial loss (15,316 ) (15,788 ) (21,771 ) (a) Settlement loss (6,453 ) — (1,835 ) Other selling and administrative expenses Curtailment gain 8,639 — — Other selling and administrative expenses (12,665 ) (14,751 ) (22,549 ) 4,573 5,343 8,127 Provision for income taxes $ (8,092 ) $ (9,408 ) $ (14,422 ) Net income (a) The amortization of prior service credit and recognized actuarial loss are included in the computation of net periodic benefit cost. Refer to “Note 4 to the Consolidated Financial Statements—Employee Benefit Plans” for additional information regarding Mattel’s net periodic benefit cost. |
Share-Based Payments (Tables)
Share-Based Payments (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Weighted Average Assumptions Used to Determine Fair Value of Options Granted | The following weighted average assumptions were used in determining the fair value of options granted: 2015 2014 2013 Expected life (in years) 4.9 4.9 4.9 Risk-free interest rate 1.5 % 1.6 % 1.5 % Volatility factor 23.1 % 23.7 % 31.8 % Dividend yield 6.5 % 4.3 % 3.4 % |
Summary of Stock Option Information and Weighted Average Exercise Prices | The following is a summary of stock option information and weighted average exercise prices for Mattel’s stock options: 2015 2014 2013 Shares Weighted Average Exercise Price Shares Weighted Average Exercise Price Shares Weighted Average Exercise Price (In thousands, except weighted average exercise price) Outstanding at January 1 10,523 $ 30.77 9,218 $ 27.48 14,630 $ 22.34 Granted 9,112 23.37 3,373 35.33 1,488 42.70 Exercised (764 ) 19.63 (1,891 ) 22.35 (6,828 ) 19.74 Forfeited (717 ) 31.34 (166 ) 36.85 (60 ) 33.18 Canceled (254 ) 35.07 (11 ) 25.28 (12 ) 20.02 Outstanding at December 31 17,900 $ 27.39 10,523 $ 30.77 9,218 $ 27.48 Exercisable at December 31 7,498 $ 30.09 5,810 $ 26.07 6,135 $ 22.70 |
Summary of RSU Information and Weighted Average Grant Date Fair Values | The following is a summary of RSU information and weighted average grant date fair values for Mattel’s RSUs, excluding Performance RSUs: 2015 2014 2013 Shares Weighted Average Grant Date Fair Value Shares Weighted Average Grant Date Fair Value Shares Weighted Average Grant Date Fair Value (In thousands, except weighted average grant date fair value) Unvested at January 1 3,173 $ 37.10 3,036 $ 34.94 3,505 $ 28.24 Granted 2,332 23.54 1,786 34.83 1,116 42.82 Vested (1,159 ) 37.29 (1,426 ) 29.77 (1,337 ) 24.53 Forfeited (608 ) 34.67 (223 ) 36.27 (248 ) 31.82 Unvested at December 31 3,738 $ 28.98 3,173 $ 37.10 3,036 $ 34.94 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | The following table reconciles earnings per common share: For the Year 2015 2014 2013 (In thousands, except per share amounts) Basic: Net income $ 369,416 $ 498,874 $ 903,944 Less: Net income allocable to participating RSUs (3,179 ) (4,028 ) (8,335 ) Net income available for basic common shares $ 366,237 $ 494,846 $ 895,609 Weighted average common shares outstanding 339,172 339,016 343,394 Basic net income per common share $ 1.08 $ 1.46 $ 2.61 Diluted: Net income $ 369,416 $ 498,874 $ 903,944 Less: Net income allocable to participating RSUs (3,179 ) (4,028 ) (8,291 ) Net income available for diluted common shares $ 366,237 $ 494,846 $ 895,653 Weighted average common shares outstanding 339,172 339,016 343,394 Weighted average common equivalent shares arising from: Dilutive stock options and non-participating RSUs 576 1,752 4,065 Weighted average number of common and potential common shares 339,748 340,768 347,459 Diluted net income per common share $ 1.08 $ 1.45 $ 2.58 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Assets and Liabilities | The following table presents Mattel’s derivative assets and liabilities: Derivative Assets Balance Sheet Classification Fair Value December 31, 2015 December 31, 2014 (In thousands) Derivatives designated as hedging instruments: Foreign currency forward exchange contracts Prepaid expenses and other current assets $ 15,279 $ 31,982 Foreign currency forward exchange contracts Other noncurrent assets 1,611 1,443 Total derivatives designated as hedging instruments $ 16,890 $ 33,425 Derivatives not designated as hedging instruments: Foreign currency forward exchange contracts Prepaid expenses and other current assets $ 1,216 $ 318 Total $ 18,106 $ 33,743 Derivative Liabilities Balance Sheet Classification Fair Value December 31, 2015 December 31, 2014 (In thousands) Derivatives designated as hedging instruments: Foreign currency forward exchange contracts Accrued liabilities $ 1,214 $ 2,408 Foreign currency forward exchange contracts Other noncurrent liabilities 219 36 Total derivatives designated as hedging instruments $ 1,433 $ 2,444 Derivatives not designated as hedging instruments: Foreign currency forward exchange contracts Accrued liabilities $ 2,287 $ 10,954 Total $ 3,720 $ 13,398 |
Derivatives Designated as Hedging Instruments by Classification and Amount of Gains and Losses | The following tables present the classification and amount of gains and losses, net of tax, from derivatives reported in the consolidated statements of operations: Derivatives Designated As Hedging Instruments Statements of Operations Classification For the Year 2015 For the Year 2014 For the Year 2013 (In thousands) Foreign currency forward exchange contracts: Amount of gain (loss) recognized in OCI $ 37,926 $ 39,931 $ (13,103 ) Amount of gain (loss) reclassified from accumulated OCI to statements of operations 52,588 (883 ) (4,897 ) Cost of sales |
Derivatives Not Designated as Hedging Instruments by Classification and Amount of Gains and Losses | Derivatives Not Designated As Hedging Instruments Statements of Operations Classification For the Year 2015 For the Year 2014 For the Year 2013 (In thousands) Amount of (loss) gain recognized in the statements of operations: Foreign currency forward exchange contracts $ (51,679 ) $ (31,485 ) $ 17,975 Non-operating income/expense Cross currency swap contract 5,288 — — Non-operating income/ expense Foreign currency forward exchange contracts (265 ) 732 (4,455 ) Cost of sales Total $ (46,656 ) $ (30,753 ) $ 13,520 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis | Mattel’s financial assets and liabilities include the following: December 31, 2015 Level 1 Level 2 Level 3 Total (In thousands) Assets: Foreign currency forward exchange contracts (a) $ — $ 18,106 $ — $ 18,106 Liabilities: Foreign currency forward exchange contracts (a) $ — $ 3,720 $ — $ 3,720 December 31, 2014 Level 1 Level 2 Level 3 Total (In thousands) Assets: Foreign currency forward exchange contracts (a) $ — $ 33,743 $ — $ 33,743 Auction rate security (b) — — 30,960 30,960 Total assets $ — $ 33,743 $ 30,960 $ 64,703 Liabilities: Foreign currency forward exchange contracts (a) $ — $ 13,398 $ — $ 13,398 (a) The fair value of the foreign currency forward exchange contracts is based on dealer quotes of market forward rates and reflects the amount that Mattel would receive or pay at their maturity dates for contracts involving the same notional amounts, currencies, and maturity dates. (b) The fair value of the auction rate security was estimated using a discounted cash flow model based on (i) estimated interest rates, timing, and amount of cash flows, (ii) credit spreads, recovery rates, and credit quality of the underlying securities, (iii) illiquidity considerations, and (iv) market correlation. |
Reconciliation of Fair Value of Assets Measured Using Level 3 Inputs | The following table presents information about Mattel's investments measured and reported at fair value on a recurring basis using significant Level 3 inputs: Level 3 (In thousands) Balance at December 31, 2012 $ 19,256 Unrealized gain 9,639 Balance at December 31, 2013 $ 28,895 Unrealized gain 2,065 Balance at December 31, 2014 $ 30,960 Proceeds from sale (32,250 ) Gain on sale 1,290 Balance at December 31, 2015 $ — |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Obligations Under Lease Commitments | The following table shows the future minimum obligations under lease commitments in effect at December 31, 2015 : Capital Leases Operating Leases (In thousands) 2016 $ 294 $ 105,615 2017 294 78,691 2018 294 58,359 2019 294 45,490 2020 25 41,023 Thereafter — 112,531 $ 1,201 (a) $ 441,709 (a) Includes $0.2 million of imputed interest. |
Schedule of Future Minimum Obligations Under Lease Commitments | The following table shows the future minimum obligations under lease commitments in effect at December 31, 2015 : Capital Leases Operating Leases (In thousands) 2016 $ 294 $ 105,615 2017 294 78,691 2018 294 58,359 2019 294 45,490 2020 25 41,023 Thereafter — 112,531 $ 1,201 (a) $ 441,709 (a) Includes $0.2 million of imputed interest. |
Schedule of Future Minimum Payments for Licensing and Similar Agreements | Licensing and similar agreements in effect at December 31, 2015 contain provisions for future minimum payments as shown in the following table: Licensing and Similar Agreements (In thousands) 2016 $ 106,048 2017 84,452 2018 101,887 2019 79,269 2020 34,973 Thereafter 4,466 $ 411,095 |
Schedule of Future Minimum Obligations for Purchases of Inventory, Services, and Other | The following table shows the future minimum obligations for purchases of inventory, services, and other as of December 31, 2015 : Other Purchase Obligations (In thousands) 2016 $ 417,963 2017 11,639 2018 5,691 2019 2,075 2020 1,105 $ 438,473 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Schedule of Segment Revenues | For the Year 2015 2014 2013 (In thousands) Revenues by Segment North America $ 3,083,873 $ 3,011,633 $ 3,181,205 International 2,603,537 3,061,506 3,277,840 American Girl 596,218 645,309 658,768 Gross sales 6,283,628 6,718,448 7,117,813 Sales adjustments (581,015 ) (694,629 ) (632,921 ) Net sales $ 5,702,613 $ 6,023,819 $ 6,484,892 Segment Income North America $ 538,249 $ 459,833 $ 723,834 International 321,068 359,904 622,910 American Girl 69,899 113,571 138,029 929,216 933,308 1,484,773 Corporate and other expense (a) (388,294 ) (279,594 ) (316,670 ) Operating income 540,922 653,714 1,168,103 Interest expense 85,270 79,271 78,505 Interest (income) (7,230 ) (7,382 ) (5,555 ) Other non-operating (income), net (1,033 ) (5,085 ) (3,975 ) Income before income taxes $ 463,915 $ 586,910 $ 1,099,128 (a) Corporate and other expense includes (i) incentive compensation expense of $50.2 million , $25.2 million , and $65.0 million for 2015 , 2014 , and 2013 , respectively, (ii) $72.0 million , $51.8 million , and $17.6 million of charges related to severance and other termination-related costs for 2015 , 2014 , and 2013 , respectively, (iii) share-based compensation expense of $56.7 million , $52.0 million , and $61.7 million for 2015 , 2014 , and 2013 , respectively, and (iv) legal fees associated with MGA litigation matters. |
Schedule of Segment Income | For the Year 2015 2014 2013 (In thousands) Revenues by Segment North America $ 3,083,873 $ 3,011,633 $ 3,181,205 International 2,603,537 3,061,506 3,277,840 American Girl 596,218 645,309 658,768 Gross sales 6,283,628 6,718,448 7,117,813 Sales adjustments (581,015 ) (694,629 ) (632,921 ) Net sales $ 5,702,613 $ 6,023,819 $ 6,484,892 Segment Income North America $ 538,249 $ 459,833 $ 723,834 International 321,068 359,904 622,910 American Girl 69,899 113,571 138,029 929,216 933,308 1,484,773 Corporate and other expense (a) (388,294 ) (279,594 ) (316,670 ) Operating income 540,922 653,714 1,168,103 Interest expense 85,270 79,271 78,505 Interest (income) (7,230 ) (7,382 ) (5,555 ) Other non-operating (income), net (1,033 ) (5,085 ) (3,975 ) Income before income taxes $ 463,915 $ 586,910 $ 1,099,128 (a) Corporate and other expense includes (i) incentive compensation expense of $50.2 million , $25.2 million , and $65.0 million for 2015 , 2014 , and 2013 , respectively, (ii) $72.0 million , $51.8 million , and $17.6 million of charges related to severance and other termination-related costs for 2015 , 2014 , and 2013 , respectively, (iii) share-based compensation expense of $56.7 million , $52.0 million , and $61.7 million for 2015 , 2014 , and 2013 , respectively, and (iv) legal fees associated with MGA litigation matters. |
Segment Depreciation/Amortization | For the Year 2015 2014 2013 (In thousands) Depreciation and Amortization by Segment North America $ 122,757 $ 118,633 $ 84,935 International 90,269 86,011 71,380 American Girl 22,054 18,434 17,364 235,080 223,078 173,679 Corporate and other 30,347 25,623 22,714 Depreciation and amortization $ 265,427 $ 248,701 $ 196,393 |
Segment Assets | Segment assets are comprised of accounts receivable and inventories, net of applicable reserves and allowances. December 31, 2015 2014 2013 (In thousands) Assets by Segment North America $ 764,945 $ 698,357 $ 723,886 International 759,709 778,849 920,770 American Girl 108,414 108,667 100,438 1,633,068 1,585,873 1,745,094 Corporate and other 99,552 70,334 83,854 Accounts receivable and inventories, net $ 1,732,620 $ 1,656,207 $ 1,828,948 |
Worldwide Revenues by Brand Category | The table below presents worldwide revenues by brand category: For the Year 2015 2014 2013 (In thousands) Worldwide Revenues by Brand Category Mattel Girls & Boys Brands $ 3,464,195 $ 3,897,218 $ 4,315,855 Fisher-Price Brands 1,852,219 1,842,550 2,120,719 American Girl Brands 571,957 618,678 632,515 Construction and Arts & Crafts Brands 351,747 314,994 — Other 43,510 45,008 48,724 Gross sales 6,283,628 6,718,448 7,117,813 Sales adjustments (581,015 ) (694,629 ) (632,921 ) Net sales $ 5,702,613 $ 6,023,819 $ 6,484,892 |
Revenues by Geographic Area | For the Year 2015 2014 2013 (In thousands) Revenues North American Region (a) $ 3,680,091 $ 3,656,942 $ 3,839,973 International Region: Europe 1,388,753 1,687,039 1,806,707 Latin America 711,041 909,432 1,011,718 Asia Pacific 503,743 465,035 459,415 Total International Region 2,603,537 3,061,506 3,277,840 Gross sales 6,283,628 6,718,448 7,117,813 Sales adjustments (581,015 ) (694,629 ) (632,921 ) Net sales $ 5,702,613 $ 6,023,819 $ 6,484,892 Revenues for the North American Region include revenues attributable to the US of $3.46 billion , $3.41 billion , and $3.58 billion for 2015 , 2014 , and 2013 , respectively. |
Long-Lived Assets by Geographic Area | December 31, 2015 2014 2013 (In thousands) Long-Lived Assets North American Region (b) $ 1,572,432 $ 1,656,985 $ 1,361,538 International Region 1,466,003 1,492,633 1,326,457 Consolidated total $ 3,038,435 $ 3,149,618 $ 2,687,995 Long-lived assets for the North American Region include long-lived assets attributable to the US of $1.57 billion , $1.65 billion , and $1.36 billion for 2015 , 2014 , and 2013 , respectively. |
Major Customers | Sales to Mattel’s three largest customers accounted for 37% , 35% , and 36% of worldwide consolidated net sales for 2015 , 2014 , and 2013 , respectively, as follows: For the Year 2015 2014 2013 (In billions) Wal-Mart $ 1.0 $ 1.1 $ 1.2 Toys “R” Us 0.6 0.6 0.7 Target 0.5 0.5 0.5 The North America segment sells products to each of Mattel’s three largest customers. The International segment sells products to Wal-Mart and Toys “R” Us. The American Girl segment sells its children’s publications to each of Mattel's three largest customers. |
Supplemental Financial Inform37
Supplemental Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Supplemental Financial Information - Balance Sheet Accounts | December 31, 2015 2014 (In thousands) Inventories include the following: Raw materials and work in process $ 105,917 $ 88,395 Finished goods 481,604 473,360 $ 587,521 $ 561,755 Property, plant, and equipment, net includes the following: Land $ 27,049 $ 27,465 Buildings 275,266 274,452 Machinery and equipment 764,657 728,299 Software 331,251 316,374 Tools, dies, and molds 840,586 782,507 Capital leases 23,970 23,970 Leasehold improvements 245,082 242,177 2,507,861 2,395,244 Less: accumulated depreciation (1,766,714 ) (1,657,375 ) $ 741,147 $ 737,869 Other noncurrent assets include the following: Nonamortizable identifiable intangibles $ 488,144 $ 498,517 Deferred income taxes 317,391 385,434 Identifiable intangibles (net of amortization of $131.5 million and $103.6 million at December 31, 2015 and 2014, respectively) 212,161 240,227 Other 212,463 280,080 $ 1,230,159 $ 1,404,258 Accrued liabilities include the following: Royalties $ 122,153 $ 112,823 Advertising and promotion 75,991 88,132 Taxes other than income taxes 66,848 53,182 Incentive compensation 52,721 25,601 Other 340,512 360,106 $ 658,225 $ 639,844 Other noncurrent liabilities include the following: Benefit plan liabilities $ 195,916 $ 229,963 Noncurrent tax liabilities 108,808 171,181 Other 169,139 182,882 $ 473,863 $ 584,026 |
Supplemental Financial Information - Income Statement Accounts | For the Year 2015 2014 2013 (In thousands) Currency transaction (losses) gains included in: Operating income $ (25,715 ) $ 44,060 $ 38,842 Other non-operating income (expense), net (8,291 ) 2,827 (1,270 ) Net transaction (losses) gains $ (34,006 ) $ 46,887 $ 37,572 Other selling and administrative expenses include the following: Design and development $ 217,816 $ 209,467 $ 201,942 Identifiable intangible asset amortization 27,923 36,704 12,575 Bad debt expense 5,813 11,507 4,471 |
Quarterly Financial Informati38
Quarterly Financial Information (unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information (Unaudited) | First Quarter Second Quarter Third Quarter Fourth Quarter (In thousands, except per share amounts) Year Ended December 31, 2015 Net sales $ 922,749 $ 988,152 $ 1,791,968 $ 1,999,744 Gross profit 450,448 472,858 879,597 1,003,455 Advertising and promotion expenses 102,428 104,744 213,245 297,435 Other selling and administrative expenses 402,487 367,551 365,579 411,967 Operating (loss) income (54,467 ) 563 300,773 294,053 (Loss) Income before income taxes (73,147 ) (19,898 ) 286,139 270,821 Net (loss) income (a) (58,177 ) (11,351 ) 223,784 215,160 Net (loss) income per common share—basic $ (0.17 ) $ (0.03 ) $ 0.66 $ 0.63 Weighted average number of common shares 338,579 338,843 339,420 339,815 Net (loss) income per common share—diluted $ (0.17 ) $ (0.03 ) $ 0.66 $ 0.63 Weighted average number of common and potential common shares 338,579 338,843 339,790 340,364 Dividends declared per common share $ 0.38 $ 0.38 $ 0.38 $ 0.38 Common stock market price: High $ 30.47 $ 30.20 $ 26.34 $ 27.69 Low 22.61 22.65 21.03 19.83 Year Ended December 31, 2014 Net sales $ 946,177 $ 1,062,252 $ 2,021,424 $ 1,993,966 Gross profit 481,531 492,570 1,021,138 1,005,783 Advertising and promotion expenses 90,834 99,853 218,746 323,810 Other selling and administrative expenses 384,479 391,709 392,913 444,964 Operating income 6,218 1,008 409,479 237,009 (Loss) Income before income taxes (9,421 ) (14,371 ) 394,180 216,522 Net (loss) income (a) (11,218 ) 28,325 331,836 149,931 Net (loss) income per common share—basic $ (0.03 ) $ 0.08 $ 0.97 $ 0.44 Weighted average number of common shares 340,226 338,709 338,728 338,416 Net (loss) income per common share—diluted $ (0.03 ) $ 0.08 $ 0.97 $ 0.44 Weighted average number of common and potential common shares 340,226 340,644 340,329 339,506 Dividends declared per common share $ 0.38 $ 0.38 $ 0.38 $ 0.38 Common stock market price: High $ 47.39 $ 40.32 $ 39.79 $ 31.86 Low 35.24 37.47 30.48 28.78 (a) Net loss for the first and second quarters of 2015 included net tax expense of $0.7 million and net tax benefits of $4.3 million , respectively, primarily related to reassessments of prior years’ tax liabilities based on the status of audits and tax filings in various jurisdictions around the world, settlements, and enacted law changes. Net income for the third and fourth quarters of 2015 included net tax expense of $0.8 million and net tax benefits of $16.3 million , respectively, primarily related to reassessments of prior years’ tax liabilities based on the status of audits and tax filings in various jurisdictions around the world, settlements, and enacted tax law changes. Net loss for the first quarter of 2014 included $3.7 million of net tax expense primarily related to reassessments of prior years’ tax liabilities based on the status of audits and tax filings in various jurisdictions, settlements, and enacted tax law changes. Net income for the second and third quarters of 2014 included net tax benefits of $40.1 million and $15.1 million , respectively, primarily related to reassessments of prior years’ tax liabilities based on the status of audits and tax filings in various jurisdictions, settlements, and enacted tax law changes. Net income for the fourth quarter of 2014 included net tax expense of $8.9 million , primarily related to a tax charge related to a 2014 tax restructuring for the HIT Entertainment and MEGA Brands operations, partially offset by reassessments of prior years’ tax liabilities based on the status of audits and tax filings in various jurisdictions around the world, settlements, and enacted tax law changes. |
Summary of Significant Accoun39
Summary of Significant Accounting Policies - Additional Information (Detail) $ in Millions | 12 Months Ended | |
Dec. 31, 2015USD ($)VEF / $ | Feb. 18, 2016VEF / $ | |
Significant Accounting Policies [Line Items] | ||
Catalog production and mailing costs amortization period | 3 months | |
Percentage of Venezuelan subsidiary net sales to Mattel's consolidated net sales (less than) | 0.01% | |
Net monetary assets denominated in Venezuelan bolivar fuerte | $ 22 | |
Pre tax charge on cessation of Venezuelan subsidiary | $ 95 | |
Maximum | ||
Significant Accounting Policies [Line Items] | ||
Cash equivalents maturity period | 3 months | |
Buildings | Maximum | ||
Significant Accounting Policies [Line Items] | ||
Estimated useful lives, years | 30 years | |
Buildings | Minimum | ||
Significant Accounting Policies [Line Items] | ||
Estimated useful lives, years | 10 years | |
Machinery and equipment | Maximum | ||
Significant Accounting Policies [Line Items] | ||
Estimated useful lives, years | 15 years | |
Machinery and equipment | Minimum | ||
Significant Accounting Policies [Line Items] | ||
Estimated useful lives, years | 3 years | |
Software | Maximum | ||
Significant Accounting Policies [Line Items] | ||
Estimated useful lives, years | 10 years | |
Software | Minimum | ||
Significant Accounting Policies [Line Items] | ||
Estimated useful lives, years | 3 years | |
Leasehold improvements | Maximum | ||
Significant Accounting Policies [Line Items] | ||
Estimated useful lives, years | 20 years | |
Leasehold improvements | Minimum | ||
Significant Accounting Policies [Line Items] | ||
Estimated useful lives, years | 10 years | |
Tools, dies, and molds | ||
Significant Accounting Policies [Line Items] | ||
Estimated useful lives, years | 3 years | |
Effect of using December 2015 SIMADI Rate | ||
Significant Accounting Policies [Line Items] | ||
Exchange rate for translation (in VEF) | VEF / $ | 198.70 | |
Pre tax charge on devaluation of venezuelan bolivar fuerte | $ 22 | |
Effect of using February 2016 SIMADI Rate | ||
Significant Accounting Policies [Line Items] | ||
Pre tax charge on devaluation of venezuelan bolivar fuerte | $ 8 | |
Subsequent Event | Effect of using February 2016 SIMADI Rate | ||
Significant Accounting Policies [Line Items] | ||
Exchange rate for translation (in VEF) | VEF / $ | 10 |
Goodwill and Other Intangible40
Goodwill and Other Intangibles - Goodwill (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | $ 1,392,925 | $ 1,083,239 |
Acquisition | 319,287 | |
Currency exchange rate impact | (8,405) | (9,601) |
Goodwill, ending balance | 1,384,520 | 1,392,925 |
North America | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | 720,939 | 547,595 |
Acquisition | 175,608 | |
Currency exchange rate impact | (1,940) | (2,264) |
Goodwill, ending balance | 718,999 | 720,939 |
International | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | 458,766 | 321,656 |
Acquisition | 143,679 | |
Currency exchange rate impact | (5,887) | (6,569) |
Goodwill, ending balance | 452,879 | 458,766 |
American Girl | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | 213,220 | 213,988 |
Acquisition | 0 | |
Currency exchange rate impact | (578) | (768) |
Goodwill, ending balance | $ 212,642 | $ 213,220 |
Goodwill and Other Intangible41
Goodwill and Other Intangibles - Schedule of Identifiable Intangibles (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Nonamortizable identifiable intangibles | $ 488,144 | $ 498,517 |
Identifiable intangibles (net of amortization of $131.5 and $103.6 million at December 31, 2015 and 2014, respectively) | 212,161 | 240,227 |
Total identifiable intangibles | 700,305 | 738,744 |
Accumulated amortization of identifiable intangibles | $ 131,500 | $ 103,600 |
Goodwill and Other Intangible42
Goodwill and Other Intangibles - Additional Information (Detail) - USD ($) | Apr. 30, 2014 | Sep. 30, 2015 | Jun. 30, 2013 | Dec. 31, 2015 | Dec. 31, 2014 |
Business Acquisition [Line Items] | |||||
Goodwill relating to acquisition | $ 319,287,000 | ||||
Carrying amount of nonamortizable identifiable intangible asset prior to impairment | $ 113,000,000 | ||||
Remaining fair value of intangible asset | 99,000,000 | ||||
Impairment charge | $ 14,000,000 | ||||
Impairment of nonamortizable intangible assets | $ 0 | 0 | |||
Impairment of amortizable intangible assets | 0 | 0 | |||
Goodwill, Impairment Loss | $ 0 | ||||
MEGA Brands | |||||
Business Acquisition [Line Items] | |||||
Percentage of ownership acquired | 100.00% | ||||
Total cash consideration paid | $ 454,900,000 | ||||
Net assets acquired | 40,600,000 | ||||
Cash | 31,600,000 | ||||
Accounts receivable | 36,600,000 | ||||
Inventory | 83,000,000 | ||||
Property, plant, and equipment | 32,500,000 | ||||
Accounts payable and accrued liabilities | 66,600,000 | ||||
Long-term debt | 44,600,000 | ||||
Other net liabilities | 31,900,000 | ||||
Goodwill relating to acquisition | 319,300,000 | ||||
Adjustment to net assets subsequent to acquisition | 1,000,000 | ||||
Adjustment to goodwill subsequent to acquisition | 1,000,000 | ||||
Integration costs recognized | 11,000,000 | 21,000,000 | |||
Transaction costs recognized | $ 0 | 7,000,000 | |||
Amortizable identifiable intangible assets acquired | $ 95,000,000 | 95,000,000 | |||
HIT Entertainment | |||||
Business Acquisition [Line Items] | |||||
Transaction costs recognized | $ 0 |
Income Taxes - Pre-tax Income (
Income Taxes - Pre-tax Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||||||||||
US operations | $ (3,435) | $ 39,149 | $ 231,372 | ||||||||
Foreign operations | 467,350 | 547,761 | 867,756 | ||||||||
Income Before Income Taxes | $ 270,821 | $ 286,139 | $ (19,898) | $ (73,147) | $ 216,522 | $ 394,180 | $ (14,371) | $ (9,421) | $ 463,915 | $ 586,910 | $ 1,099,128 |
Income Taxes - Provision (Benef
Income Taxes - Provision (Benefit) For Current and Deferred Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Current | |||
Federal | $ (1,405) | $ (25,075) | $ 38,227 |
State | 1,946 | (2,029) | 6,447 |
Foreign | 89,825 | 106,998 | 130,878 |
Total current income tax expense | 90,366 | 79,894 | 175,552 |
Deferred | |||
Federal | (3,802) | 21,987 | 30,342 |
State | (2,200) | 8,233 | (512) |
Foreign | 10,135 | (22,078) | (10,198) |
Total deferred income tax expense | 4,133 | 8,142 | 19,632 |
Provision for income taxes | $ 94,499 | $ 88,036 | $ 195,184 |
Income Taxes - Deferred Income
Income Taxes - Deferred Income Tax Assets (Liabilities) (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Income Tax Disclosure [Abstract] | ||
Research and development expenses | $ 191,057 | $ 189,694 |
Loss carryforwards | 150,270 | 172,347 |
Deferred compensation | 211,538 | 233,434 |
Tax credit carryforwards | 98,832 | 91,530 |
Deferred Tax Assets, Tax Credit Carryforwards, Other | 50,309 | 54,674 |
Postretirement benefits | 48,648 | 50,235 |
Intangible assets | 14,035 | 30,803 |
Other | 71,453 | 68,604 |
Gross deferred income tax assets | 836,142 | 891,321 |
Intangible assets | (305,818) | (298,444) |
Other | (2,905) | (3,868) |
Gross deferred income tax liabilities | (308,723) | (302,312) |
Deferred income tax asset valuation allowances | (77,334) | (133,297) |
Net deferred income tax assets | $ 450,085 | $ 455,712 |
Income Taxes - Classification o
Income Taxes - Classification of Net Deferred Income Tax Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Balance Sheet Classification of Deferred Income Tax Assets and Liabilities [Line Items] | ||
Net deferred income tax assets | $ 450,085 | $ 455,712 |
Prepaid expenses and other current assets | ||
Balance Sheet Classification of Deferred Income Tax Assets and Liabilities [Line Items] | ||
Net deferred income tax assets | 195,804 | 195,841 |
Other noncurrent assets | ||
Balance Sheet Classification of Deferred Income Tax Assets and Liabilities [Line Items] | ||
Net deferred income tax assets | 317,391 | 385,434 |
Accrued liabilities | ||
Balance Sheet Classification of Deferred Income Tax Assets and Liabilities [Line Items] | ||
Net deferred income tax assets | 43 | 181 |
Other noncurrent liabilities | ||
Balance Sheet Classification of Deferred Income Tax Assets and Liabilities [Line Items] | ||
Net deferred income tax assets | $ 63,067 | $ 125,382 |
Income Taxes - Expiration of Lo
Income Taxes - Expiration of Loss and Tax Credit Carryforwards (Detail) $ in Thousands | Dec. 31, 2015USD ($) |
Operating Loss and Tax Credit Carryforward [Line Items] | |
Loss carryforwards | $ 640,608 |
Tax credit carryforwards | 50,309 |
Period of Expiration 2015 - 2019 | |
Operating Loss and Tax Credit Carryforward [Line Items] | |
Loss carryforwards | 76,686 |
Tax credit carryforwards | 684 |
Period of Expiration Thereafter | |
Operating Loss and Tax Credit Carryforward [Line Items] | |
Loss carryforwards | 316,722 |
Tax credit carryforwards | 45,682 |
No Expiration Date | |
Operating Loss and Tax Credit Carryforward [Line Items] | |
Loss carryforwards | 247,200 |
Tax credit carryforwards | $ 3,943 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Provision for Income Taxes at US Federal Statutory Rate to Provision in Statements of Operations (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||
Provision at US federal statutory rate | $ 162,370 | $ 205,419 | $ 384,695 |
Foreign earnings taxed at different rates, including withholding taxes | (56,877) | (107,409) | (165,768) |
Foreign losses without income tax benefit | 5,843 | 20,140 | 3,215 |
State and local taxes, net of US federal benefit | 482 | 3,760 | 4,854 |
Adjustments to previously accrued taxes | (19,134) | (55,026) | (32,200) |
Tax restructuring | 0 | 12,400 | 0 |
Other | 1,815 | 8,752 | 388 |
Provision for income taxes | $ 94,499 | $ 88,036 | $ 195,184 |
Income Taxes - Reconciliation49
Income Taxes - Reconciliation of Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Unrecognized tax benefits at January 1 | $ 100,357 | $ 111,370 | $ 285,560 |
Increases for positions taken in current year | 5,724 | 9,886 | 12,997 |
Increases for positions taken in a prior year | 22,584 | 53,221 | 14,289 |
Decreases for positions taken in a prior year | (4,242) | (51,421) | (186,555) |
Decreases for settlements with taxing authorities | (3,577) | (9,493) | (5,135) |
Decreases for lapses in the applicable statute of limitations | (2,747) | (13,206) | (9,786) |
Unrecognized tax benefits at December 31 | $ 118,099 | $ 100,357 | $ 111,370 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2012 | |
Income Taxes [Line Items] | |||||
Loss carryforwards | $ 640,608 | ||||
Tax credit carryforwards | 50,309 | ||||
Deferred income tax asset valuation allowances | $ 77,334 | $ 133,297 | |||
Percentage greater than threshold of Income tax examination of uncertain tax positions that should be recognized | 50.00% | ||||
Net deferred income tax assets | $ 450,085 | 455,712 | |||
Unrecognized tax benefits, end of period | 118,099 | 100,357 | $ 111,370 | $ 285,560 | |
Amount of unrecognized tax benefits that would impact the effective tax rate if recognized | 114,300 | ||||
Recognized interest and penalties related to unrecognized tax benefits | 0 | 2,000 | 1,000 | ||
Accrued interest and penalties related to unrecognized tax benefits | 18,300 | 18,100 | |||
Amount of unrecognized tax benefits related to interest and penalties that would impact the effective tax rate if recognized | 17,400 | ||||
Reclassification of unrecognized tax benefits | $ 44,000 | ||||
Reasonably possible changes to unrecognized tax benefits related to settlement of tax audits and/or expiration of statutes of limitations within the next twelve months | 10,000 | ||||
Net tax benefit | 19,100 | 42,600 | 32,200 | ||
Cumulative amount of undistributed earnings of foreign subsidiaries that is intended to be indefinitely reinvested and for which no deferred US income taxes have been provided | 6,800,000 | ||||
Tax benefits from share-based payment arrangements | $ 21,187 | $ 50,374 | |||
Tax deficiencies from share-based payment arrangements | $ (2,780) | ||||
California | |||||
Income Taxes [Line Items] | |||||
Remaining periods subject to examination | 2008 through 2015 tax years | ||||
New York | |||||
Income Taxes [Line Items] | |||||
Remaining periods subject to examination | 2010 through 2015 tax years | ||||
Wisconsin | |||||
Income Taxes [Line Items] | |||||
Remaining periods subject to examination | 2008 through 2015 tax years | ||||
Hong Kong | |||||
Income Taxes [Line Items] | |||||
Remaining periods subject to examination | 2009 through 2015 tax years | ||||
Brazil | |||||
Income Taxes [Line Items] | |||||
Remaining periods subject to examination | 2010 through 2015 tax years | ||||
Mexico | |||||
Income Taxes [Line Items] | |||||
Remaining periods subject to examination | 2009 through 2014 tax years | ||||
Netherlands | |||||
Income Taxes [Line Items] | |||||
Remaining periods subject to examination | 2009 through 2014 tax years | ||||
Russia | |||||
Income Taxes [Line Items] | |||||
Remaining periods subject to examination | 2012 through 2015 tax years | ||||
Valuation Allowances Net Operating Losses and Tax Credit Carryforwards | |||||
Income Taxes [Line Items] | |||||
Deferred income tax asset valuation allowances | $ 62,200 | ||||
Valuation Allowance for Other Deferred Tax Assets | |||||
Income Taxes [Line Items] | |||||
Deferred income tax asset valuation allowances | $ 15,100 |
Employee Benefit Plans - Summar
Employee Benefit Plans - Summary of Retirement Plan Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Schedule of Employee Benefit Plans [Line Items] | |||
Retirement plan expense | $ 57,073 | $ 68,244 | $ 85,984 |
Defined contribution retirement plans | |||
Schedule of Employee Benefit Plans [Line Items] | |||
Retirement plan expense | 40,673 | 43,819 | 43,694 |
Defined benefit pension plans | |||
Schedule of Employee Benefit Plans [Line Items] | |||
Retirement plan expense | 14,779 | 18,124 | 30,747 |
Deferred compensation and excess benefit plans | |||
Schedule of Employee Benefit Plans [Line Items] | |||
Retirement plan expense | 225 | 4,840 | 9,298 |
Postretirement benefit plans | |||
Schedule of Employee Benefit Plans [Line Items] | |||
Retirement plan expense | $ 1,396 | $ 1,461 | $ 2,245 |
Employee Benefit Plans - Summ52
Employee Benefit Plans - Summary of Components of Net Periodic Benefit Cost and Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Other changes in plan assets and benefit obligations recognized in other comprehensive income: | |||
Tax (benefit) expense related to benefit plans included in other comprehensive income | $ 1,100 | $ (17,800) | $ 32,500 |
Defined benefit pension plans | |||
Net periodic benefit cost: | |||
Service cost | 6,105 | 7,515 | 12,982 |
Interest cost | 26,007 | 27,708 | 25,580 |
Expected return on plan assets | (29,850) | (31,833) | (29,786) |
Amortization of prior service credit | (465) | (1,037) | (1,057) |
Recognized actuarial loss | 15,168 | 15,771 | 21,193 |
Settlement loss | 6,453 | 0 | 1,835 |
Curtailment gain | (8,639) | 0 | 0 |
Net periodic benefit cost | 14,779 | 18,124 | 30,747 |
Other changes in plan assets and benefit obligations recognized in other comprehensive income: | |||
Net actuarial (gain) loss | (8,813) | 48,502 | (95,744) |
Prior service cost | 8,691 | 20 | 0 |
Amortization of prior service credit | 465 | 1,037 | 1,057 |
Total recognized in other comprehensive income | 343 | 49,559 | (94,687) |
Total recognized in net periodic benefit cost and other comprehensive income | 15,122 | 67,683 | (63,940) |
Postretirement benefit plans | |||
Net periodic benefit cost: | |||
Service cost | 54 | 67 | 82 |
Interest cost | 1,194 | 1,377 | 1,585 |
Expected return on plan assets | 0 | 0 | 0 |
Amortization of prior service credit | 0 | 0 | 0 |
Recognized actuarial loss | 148 | 17 | 578 |
Settlement loss | 0 | 0 | 0 |
Curtailment gain | 0 | 0 | 0 |
Net periodic benefit cost | 1,396 | 1,461 | 2,245 |
Other changes in plan assets and benefit obligations recognized in other comprehensive income: | |||
Net actuarial (gain) loss | (3,130) | (2,205) | 3,470 |
Prior service cost | 0 | 0 | 0 |
Amortization of prior service credit | 0 | 0 | 0 |
Total recognized in other comprehensive income | (3,130) | (2,205) | 3,470 |
Total recognized in net periodic benefit cost and other comprehensive income | $ (1,734) | $ (744) | $ 5,715 |
Employee Benefit Plans - Assump
Employee Benefit Plans - Assumptions Used to Calculate Net Periodic Benefit Cost for Domestic Defined Benefit Pension and Postretirement Benefit Plans (Detail) | 6 Months Ended | 12 Months Ended | |||
Dec. 31, 2015 | Jun. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Pre65 | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Health care cost trend rate | 7.50% | 8.50% | 8.50% | ||
Ultimate cost trend rate | 4.50% | 6.10% | 6.10% | ||
Year that the rate reaches the ultimate cost trend rate | 2,023 | 2,023 | 2,030 | 2,030 | |
Post65 | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Health care cost trend rate | 8.80% | 7.50% | 7.50% | ||
Ultimate cost trend rate | 4.50% | 5.40% | 5.40% | ||
Year that the rate reaches the ultimate cost trend rate | 2,024 | 2,024 | 2,030 | 2,030 | |
Defined benefit pension plans | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Discount rate | 3.80% | 4.70% | 4.00% | ||
Weighted average rate of future compensation increases | 3.80% | 3.80% | 3.80% | ||
Long-term rate of return on plan assets | 6.80% | 7.50% | 8.00% | 8.00% | |
Postretirement benefit plans | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Discount rate | 3.80% | 4.70% | 4.00% | ||
Annual increase in Medicare Part B premium | 6.00% | 6.00% | 6.00% |
Employee Benefit Plans - Summ54
Employee Benefit Plans - Summary of Changes in Benefit Obligation and Plan Assets for Defined Benefit Pension and Postretirement Benefit Plans (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Change in Plan Assets: | |||
Plan assets at fair value, beginning of year | $ 475,940 | ||
Plan assets at fair value, end of year | 435,274 | $ 475,940 | |
Net Amount Recognized in Consolidated Balance Sheets: | |||
Noncurrent accrued benefit liability | (195,916) | (229,963) | |
Amounts Recognized in Accumulated Other Comprehensive Loss: | |||
Tax benefits related to changes in benefit obligation and plan assets which are also included in accumulated other comprehensive loss | 86,800 | 88,000 | |
Defined benefit pension plans | |||
Change in Benefit Obligation: | |||
Benefit obligation, beginning of year | 677,641 | 616,938 | |
Service cost | 6,105 | 7,515 | $ 12,982 |
Interest cost | 26,007 | 27,708 | 25,580 |
Impact of currency exchange rate changes | (11,016) | (10,673) | |
Actuarial loss (gain) | (14,604) | 75,839 | |
Benefits paid | (67,994) | (39,686) | |
Plan amendments | (4,649) | 0 | |
Benefit obligation, end of year | 611,490 | 677,641 | 616,938 |
Change in Plan Assets: | |||
Plan assets at fair value, beginning of year | 475,940 | 456,445 | |
Actual return on plan assets | (690) | 43,804 | |
Employer contributions | 33,353 | 21,596 | |
Impact of currency exchange rate changes | (5,335) | (6,219) | |
Benefits paid | (67,994) | (39,686) | |
Plan assets at fair value, end of year | 435,274 | 475,940 | 456,445 |
Net Amount Recognized in Consolidated Balance Sheets: | |||
Funded status, end of year | (176,216) | (201,701) | |
Current accrued benefit liability | (7,416) | (2,540) | |
Noncurrent accrued benefit liability | (168,800) | (199,161) | |
Total accrued benefit liability | (176,216) | (201,701) | |
Amounts Recognized in Accumulated Other Comprehensive Loss: | |||
Net actuarial loss | 244,780 | 253,593 | |
Prior service cost (credit) | 120 | (9,036) | |
Total amount recognized in accumulated other comprehensive loss, before tax | 244,900 | 244,557 | |
Postretirement benefit plans | |||
Change in Benefit Obligation: | |||
Benefit obligation, beginning of year | 34,402 | 37,914 | |
Service cost | 54 | 67 | 82 |
Interest cost | 1,194 | 1,377 | 1,585 |
Impact of currency exchange rate changes | 0 | 0 | |
Actuarial loss (gain) | (2,981) | (2,188) | |
Benefits paid | (2,253) | (2,768) | |
Plan amendments | 0 | 0 | |
Benefit obligation, end of year | 30,416 | 34,402 | 37,914 |
Change in Plan Assets: | |||
Plan assets at fair value, beginning of year | 0 | 0 | |
Actual return on plan assets | 0 | 0 | |
Employer contributions | 2,253 | 2,768 | |
Impact of currency exchange rate changes | 0 | 0 | |
Benefits paid | (2,253) | (2,768) | |
Plan assets at fair value, end of year | 0 | 0 | $ 0 |
Net Amount Recognized in Consolidated Balance Sheets: | |||
Funded status, end of year | (30,416) | (34,402) | |
Current accrued benefit liability | (3,300) | (3,600) | |
Noncurrent accrued benefit liability | (27,116) | (30,802) | |
Total accrued benefit liability | (30,416) | (34,402) | |
Amounts Recognized in Accumulated Other Comprehensive Loss: | |||
Net actuarial loss | 1,784 | 4,914 | |
Prior service cost (credit) | 0 | 0 | |
Total amount recognized in accumulated other comprehensive loss, before tax | $ 1,784 | $ 4,914 |
Employee Benefit Plans - Assu55
Employee Benefit Plans - Assumptions Used to Determine Projected and Accumulated Benefit Obligations of Domestic Defined Benefit Pension and Postretirement Benefit Plans (Detail) | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Pre65 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Health care cost trend rate | 7.00% | 7.50% | |
Ultimate cost trend rate | 4.50% | 4.50% | |
Year that the rate reaches the ultimate cost trend rate | 2,023 | 2,030 | 2,030 |
Post65 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Health care cost trend rate | 8.30% | 8.80% | |
Ultimate cost trend rate | 4.50% | 4.50% | |
Year that the rate reaches the ultimate cost trend rate | 2,024 | 2,030 | 2,030 |
Defined benefit pension plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 4.20% | 3.80% | |
Weighted average rate of future compensation increases | 3.80% | 3.80% | |
Postretirement benefit plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 4.20% | 3.80% | |
Annual increase in Medicare Part B premium | 6.00% | 6.00% | |
Projected and Accumulated Benefit Obligations | Pre-65 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Year that the rate reaches the ultimate cost trend rate | 2,023 | 2,023 | |
Projected and Accumulated Benefit Obligations | Post-65 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Year that the rate reaches the ultimate cost trend rate | 2,024 | 2,024 |
Employee Benefit Plans - Estima
Employee Benefit Plans - Estimated Future Benefit Payments for Defined Benefit Pension and Postretirement Benefit Plans (Detail) $ in Thousands | Dec. 31, 2015USD ($) |
Defined benefit pension plans | |
Defined Benefit Plan Disclosure [Line Items] | |
2,016 | $ 37,588 |
2,017 | 39,477 |
2,018 | 38,114 |
2,019 | 35,783 |
2,020 | 36,547 |
2020 - 2024 | 182,695 |
Postretirement benefit plans | |
Defined Benefit Plan Disclosure [Line Items] | |
2,016 | 3,300 |
2,017 | 3,100 |
2,018 | 3,100 |
2,019 | 3,100 |
2,020 | 2,900 |
2020 - 2024 | $ 13,400 |
Employee Benefit Plans - Plan A
Employee Benefit Plans - Plan Assets Measured and Reported in Financial Statements at Fair Value (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 435,274 | $ 475,940 |
Collective trust funds | US equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 86,466 | 174,027 |
Collective trust funds | International equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 255,694 | 166,432 |
Collective trust funds | International fixed income | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 44,118 | 47,260 |
US government and US government agency securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 1,540 | 36,531 |
US corporate debt instruments | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 31,254 | 24,628 |
International corporate debt instruments | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 5,612 | 4,700 |
Mutual funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 567 | 15,561 |
Other | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 10,023 | 6,801 |
Level 1 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 567 | 561 |
Level 1 | Collective trust funds | US equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Level 1 | Collective trust funds | International equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Level 1 | Collective trust funds | International fixed income | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Level 1 | US government and US government agency securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Level 1 | US corporate debt instruments | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Level 1 | International corporate debt instruments | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Level 1 | Mutual funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 567 | 561 |
Level 1 | Other | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Level 2 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 434,707 | 475,379 |
Level 2 | Collective trust funds | US equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 86,466 | 174,027 |
Level 2 | Collective trust funds | International equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 255,694 | 166,432 |
Level 2 | Collective trust funds | International fixed income | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 44,118 | 47,260 |
Level 2 | US government and US government agency securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 1,540 | 36,531 |
Level 2 | US corporate debt instruments | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 31,254 | 24,628 |
Level 2 | International corporate debt instruments | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 5,612 | 4,700 |
Level 2 | Mutual funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 15,000 |
Level 2 | Other | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 10,023 | 6,801 |
Level 3 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Level 3 | Collective trust funds | US equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Level 3 | Collective trust funds | International equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Level 3 | Collective trust funds | International fixed income | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Level 3 | US government and US government agency securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Level 3 | US corporate debt instruments | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Level 3 | International corporate debt instruments | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Level 3 | Mutual funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Level 3 | Other | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 0 | $ 0 |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Detail) - USD ($) $ / shares in Units, shares in Millions | 6 Months Ended | 12 Months Ended | 24 Months Ended | 36 Months Ended | |||
Dec. 31, 2015 | Jun. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2015 | Dec. 31, 2013 | |
Employee Benefits Disclosure [Line Items] | |||||||
Accumulated benefit obligation of defined benefit pension plans | $ 589,200,000 | $ 589,200,000 | $ 632,200,000 | $ 589,200,000 | |||
The impact to postretirement benefit plan obligation from a one percentage point increase in the assumed health care cost trend rate for each future year | 2,000,000 | ||||||
The impact to postretirement benefit plan obligation from a one percentage point decrease in the assumed health care cost trend rate for each future year | (1,600,000) | ||||||
The impact to postretirement benefit plan service and interest cost from a one percentage point increase in the assumed health care cost trend rate for each future year | 100,000 | ||||||
The impact to postretirement benefit plan service and interest cost from a one percentage point decrease in the assumed health care cost trend rate for each future year | (100,000) | ||||||
Total estimated cash contributions to be made during the next fiscal year for defined benefit pension and postretirement benefit plans | 12,000,000 | ||||||
Total estimated cash contributions to be made during the next fiscal year for unfunded defined benefit pension and postretirement benefit plans | $ 11,000,000 | ||||||
Percentage of domestic defined benefit pension plan assets to total defined benefit pension plan assets | 79.00% | 79.00% | 79.00% | ||||
Percentage limitation of an employee's total account balance that may be allocated to the Mattel Stock Fund in the Mattel, Inc. Personal Investment Plan | 25.00% | 25.00% | 25.00% | ||||
Liability for deferred compensation and excess benefit plans | $ 71,700,000 | $ 71,700,000 | 73,600,000 | $ 71,700,000 | |||
Cash surrender value of life insurance policies | $ 67,300,000 | 67,300,000 | 67,600,000 | $ 67,300,000 | |||
Expense for incentive compensation plans | $ 50,200,000 | $ 25,200,000 | $ 65,000,000 | ||||
January 1, 2011 to December 31, 2013 LTIP | |||||||
Employee Benefits Disclosure [Line Items] | |||||||
Performance cycle | 3 years | ||||||
Number of shares earned related to performance related component (in shares) | 1 | ||||||
Number of shares earned related to market related component (in shares) | 0.5 | ||||||
Number of shares earned related to dividend equivalent rights (in shares) | 0.1 | ||||||
Number of shares earned related to performance and market related component (in shares) | 1.6 | ||||||
January 1, 2011 to December 31, 2013 LTIP | Performance- Related Component | |||||||
Employee Benefits Disclosure [Line Items] | |||||||
Weighted average grant date fair value of restricted stock units granted (in USD per share) | $ 42.30 | ||||||
Expense recognized for restricted stock units | $ 10,000,000 | ||||||
January 1, 2011 to December 31, 2013 LTIP | Market- Related Component | |||||||
Employee Benefits Disclosure [Line Items] | |||||||
Weighted average grant date fair value of restricted stock units granted (in USD per share) | $ 4.59 | ||||||
Expense recognized for restricted stock units | $ 1,400,000 | ||||||
January 1, 2014 to December 31, 2016 LTIP | |||||||
Employee Benefits Disclosure [Line Items] | |||||||
Performance cycle | 3 years | ||||||
Number of shares that can be earned for each of the three years for the performance-related component of performance restricted stock units - range of possible outcomes - (low-end) (in shares) | 0 | ||||||
Number of shares that can be earned for each of the three years for the performance-related component of performance restricted stock units - range of possible outcomes - (high-end) (in shares) | 0.5 | ||||||
Adjustment (for the market-related component) to the results of the performance-related component of performance restricted stock units over the three-year performance cycle - range of possible outcomes - upward adjustment - (high-end) (in shares) | 0.5 | ||||||
Adjustment (for the market-related component) to the results of the performance-related component of performance restricted stock units over the three-year performance cycle - range of possible outcomes - downward adjustment - (low-end) (in shares) | 0.5 | ||||||
January 1, 2014 to December 31, 2016 LTIP | Performance- Related Component | |||||||
Employee Benefits Disclosure [Line Items] | |||||||
Weighted average grant date fair value of restricted stock units granted (in USD per share) | $ 23.14 | $ 39.03 | |||||
Expense recognized for restricted stock units | $ 0 | ||||||
January 1, 2014 to December 31, 2016 LTIP | Market- Related Component | |||||||
Employee Benefits Disclosure [Line Items] | |||||||
Weighted average grant date fair value of restricted stock units granted (in USD per share) | $ (3.57) | $ (3.57) | |||||
US equity securities | |||||||
Employee Benefits Disclosure [Line Items] | |||||||
Target allocation for domestic defined benefit pension plan assets | 42.00% | ||||||
Non US Equity Securities | |||||||
Employee Benefits Disclosure [Line Items] | |||||||
Target allocation for domestic defined benefit pension plan assets | 28.00% | ||||||
US Long-Term Bond Securities | |||||||
Employee Benefits Disclosure [Line Items] | |||||||
Target allocation for domestic defined benefit pension plan assets | 20.00% | ||||||
US Treasury Securities | |||||||
Employee Benefits Disclosure [Line Items] | |||||||
Target allocation for domestic defined benefit pension plan assets | 10.00% | ||||||
Defined benefit pension plans | |||||||
Employee Benefits Disclosure [Line Items] | |||||||
Estimated net actuarial loss and prior service credit that will be amortized from accumulated other comprehensive loss into net periodic benefit cost in 2015 | $ 9,300,000 | ||||||
Long-term rate of return on plan assets used to determine net periodic benefit cost for domestic defined benefit pension plans | 6.80% | 7.50% | 8.00% | 8.00% | |||
Postretirement benefit plans | |||||||
Employee Benefits Disclosure [Line Items] | |||||||
Estimated net actuarial loss and prior service credit that will be amortized from accumulated other comprehensive loss into net periodic benefit cost in 2015 | $ 100,000 |
Seasonal Financing and Debt - L
Seasonal Financing and Debt - Long-Term Debt (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Debt Instrument [Line Items] | ||
Long-term debt | $ 2,100,000 | $ 2,100,000 |
Less: current portion | (300,000) | 0 |
Long-term debt | 1,800,000 | 2,100,000 |
2010 Senior Notes due October 2020 and October 2040 | ||
Debt Instrument [Line Items] | ||
Long-term debt | 500,000 | 500,000 |
2011 Senior Notes due November 2016 and November 2041 | ||
Debt Instrument [Line Items] | ||
Long-term debt | 600,000 | 600,000 |
2013 Senior Notes due March 2018 and March 2023 | ||
Debt Instrument [Line Items] | ||
Long-term debt | 500,000 | 500,000 |
2014 Senior Notes due May 2019 | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 500,000 | $ 500,000 |
Seasonal Financing and Debt -60
Seasonal Financing and Debt - Long-Term Debt Maturity (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Long Term Debt Maturities Repayments Of Principal [Line Items] | ||
2,016 | $ 300,000 | |
2,017 | 0 | |
2,018 | 250,000 | |
2,019 | 500,000 | |
2,020 | 250,000 | |
Thereafter | 800,000 | |
Long-term debt | 2,100,000 | $ 2,100,000 |
2010 Senior Notes due October 2020 and October 2040 | ||
Long Term Debt Maturities Repayments Of Principal [Line Items] | ||
2,016 | 0 | |
2,017 | 0 | |
2,018 | 0 | |
2,019 | 0 | |
2,020 | 250,000 | |
Thereafter | 250,000 | |
Long-term debt | 500,000 | 500,000 |
2011 Senior Notes due November 2016 and November 2041 | ||
Long Term Debt Maturities Repayments Of Principal [Line Items] | ||
2,016 | 300,000 | |
2,017 | 0 | |
2,018 | 0 | |
2,019 | 0 | |
2,020 | 0 | |
Thereafter | 300,000 | |
Long-term debt | 600,000 | 600,000 |
2013 Senior Notes due March 2018 and March 2023 | ||
Long Term Debt Maturities Repayments Of Principal [Line Items] | ||
2,016 | 0 | |
2,017 | 0 | |
2,018 | 250,000 | |
2,019 | 0 | |
2,020 | 0 | |
Thereafter | 250,000 | |
Long-term debt | 500,000 | 500,000 |
2014 Senior Notes due May 2019 | ||
Long Term Debt Maturities Repayments Of Principal [Line Items] | ||
2,016 | 0 | |
2,017 | 0 | |
2,018 | 0 | |
2,019 | 500,000 | |
2,020 | 0 | |
Thereafter | 0 | |
Long-term debt | $ 500,000 | $ 500,000 |
Seasonal Financing and Debt - A
Seasonal Financing and Debt - Additional Information (Detail) | 1 Months Ended | 12 Months Ended | ||
May. 31, 2014USD ($) | Mar. 31, 2013USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Debt Instrument [Line Items] | ||||
Debt-to-earnings before interest taxes depreciation amortization ratio maximum for covenant compliance | 3.50 | |||
Consolidated debt-to-earnings before interest taxes depreciation amortization ratio as calculated for covenant compliance | 2.43 | |||
Interest coverage ratio as calculated for covenant compliance | 1022.00% | |||
Interest coverage ratio minimum for covenant compliance | 3.50 | |||
Foreign credit lines available | $ 340,000,000 | |||
Outstanding amounts of accounts receivable sold under international factoring arrangements | 19,500,000 | $ 22,300,000 | ||
Short term bank loans outstanding | $ 16,914,000 | $ 0 | ||
2014 Senior Notes due May 2019 | ||||
Debt Instrument [Line Items] | ||||
Principal of debt instrument | $ 500,000,000 | |||
Interest rate | 2.35% | |||
Maturity date of long term debt | May 6, 2019 | |||
Redemption price option one | 100.00% | |||
Redemption price option two | 0.125% | |||
2013 Senior Notes due March 2018 | ||||
Debt Instrument [Line Items] | ||||
Principal of debt instrument | $ 250,000,000 | |||
Interest rate | 1.70% | |||
Maturity date of long term debt | Mar. 15, 2018 | |||
Redemption price option one | 100.00% | |||
Redemption price option two | 0.15% | |||
2013 Senior Notes due March 2023 | ||||
Debt Instrument [Line Items] | ||||
Principal of debt instrument | $ 250,000,000 | |||
Interest rate | 3.15% | |||
Maturity date of long term debt | Mar. 15, 2023 | |||
Redemption price option one | 100.00% | |||
Redemption price option two | 0.20% | |||
2010 Senior Notes due October 2020 and October 2040 | ||||
Debt Instrument [Line Items] | ||||
Interest rate range - low end | 4.35% | |||
Interest rate range - high end | 6.20% | |||
Interest rate | 5.28% | 5.28% | ||
2011 Senior Notes due November 2016 and November 2041 | ||||
Debt Instrument [Line Items] | ||||
Interest rate range - low end | 2.50% | |||
Interest rate range - high end | 5.45% | |||
Interest rate | 3.98% | 3.98% | ||
2013 Senior Notes due March 2018 and March 2023 | ||||
Debt Instrument [Line Items] | ||||
Interest rate range - low end | 1.70% | |||
Interest rate range - high end | 3.15% | |||
Interest rate | 2.43% | 2.43% | ||
2014 Senior Notes due May 2019 | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 2.35% | |||
MEGA Brands | ||||
Debt Instrument [Line Items] | ||||
Repayment of long-term borrowings assumed | $ 44,600,000 | |||
Revolving Credit Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Expiration date on credit facility | Jun. 9, 2020 | |||
Aggregate commitment under the credit facility | $ 1,600,000,000 | |||
Aggregate commitment under the credit facility, including the accordion feature | 1,850,000,000 | |||
Borrowings on credit facility | $ 0 | |||
Revolving Credit Facility [Member] | Minimum | ||||
Debt Instrument [Line Items] | ||||
Commitment fee rate for unused commitments | 0.08% | |||
Revolving Credit Facility [Member] | Maximum | ||||
Debt Instrument [Line Items] | ||||
Commitment fee rate for unused commitments | 0.28% | |||
Revolving Credit Facility [Member] | Base Rate | Minimum | ||||
Debt Instrument [Line Items] | ||||
Interest rate margin for loans | 0.00% | |||
Revolving Credit Facility [Member] | Base Rate | Maximum | ||||
Debt Instrument [Line Items] | ||||
Interest rate margin for loans | 0.75% | |||
Revolving Credit Facility [Member] | LIBOR | Minimum | ||||
Debt Instrument [Line Items] | ||||
Interest rate margin for loans | 0.88% | |||
Revolving Credit Facility [Member] | LIBOR | Maximum | ||||
Debt Instrument [Line Items] | ||||
Interest rate margin for loans | 1.75% | |||
Foreign Short Term Bank Loans | ||||
Debt Instrument [Line Items] | ||||
Short term bank loans outstanding | $ 16,900,000 | 0 | ||
Borrowings on credit facility | 0 | |||
Average borrowings | $ 2,900,000 | $ 17,500,000 | ||
Weighted average interest rate as of the balance sheet date | 13.70% | 11.20% | ||
Domestic Unsecured Committed Revolving Credit Facility And Other Short Term Borrowings | ||||
Debt Instrument [Line Items] | ||||
Average borrowings | $ 374,300,000 | $ 680,800,000 | ||
Weighted average interest rate as of the balance sheet date | 0.30% | 0.20% |
Stockholders' Equity - Changes
Stockholders' Equity - Changes in Accumulated Balances for Each Component of Other Comprehensive Income (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax, as of Beginning Period | $ (622,089) | $ (443,676) | $ (464,486) |
Other comprehensive income (loss) before reclassifications | (182,314) | (188,704) | 1,491 |
Amounts reclassified from accumulated other comprehensive income (loss) | (44,496) | 10,291 | 19,319 |
Other Comprehensive (Loss) Income, Net of Tax | (226,810) | (178,413) | 20,810 |
Accumulated Other Comprehensive Income (Loss), Net of Tax, as of End Period | (848,899) | (622,089) | (443,676) |
Derivative Instruments | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax, as of Beginning Period | 30,025 | (10,789) | (2,583) |
Other comprehensive income (loss) before reclassifications | 37,926 | 39,931 | (13,103) |
Amounts reclassified from accumulated other comprehensive income (loss) | (52,588) | 883 | 4,897 |
Other Comprehensive (Loss) Income, Net of Tax | (14,662) | 40,814 | (8,206) |
Accumulated Other Comprehensive Income (Loss), Net of Tax, as of End Period | 15,363 | 30,025 | (10,789) |
Defined Benefit Pension Plans | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax, as of Beginning Period | (161,507) | (131,946) | (190,656) |
Other comprehensive income (loss) before reclassifications | (6,443) | (38,969) | 44,288 |
Amounts reclassified from accumulated other comprehensive income (loss) | 8,092 | 9,408 | 14,422 |
Other Comprehensive (Loss) Income, Net of Tax | 1,649 | (29,561) | 58,710 |
Accumulated Other Comprehensive Income (Loss), Net of Tax, as of End Period | (159,858) | (161,507) | (131,946) |
Currency Translation Adjustments | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax, as of Beginning Period | (490,607) | (300,941) | (271,247) |
Other comprehensive income (loss) before reclassifications | (213,797) | (189,666) | (29,694) |
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | 0 | 0 |
Other Comprehensive (Loss) Income, Net of Tax | (213,797) | (189,666) | (29,694) |
Accumulated Other Comprehensive Income (Loss), Net of Tax, as of End Period | $ (704,404) | $ (490,607) | $ (300,941) |
Stockholders' Equity - Classifi
Stockholders' Equity - Classification and Amount of Reclassifications from Accumulated Other Comprehensive Income to Consolidated Statement of Operations (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||
Cost of sales | $ (2,896,255) | $ (3,022,797) | $ (3,006,009) | ||||||||
Income Before Income Taxes | $ 270,821 | $ 286,139 | $ (19,898) | $ (73,147) | $ 216,522 | $ 394,180 | $ (14,371) | $ (9,421) | 463,915 | 586,910 | 1,099,128 |
Provision for income taxes | (94,499) | (88,036) | (195,184) | ||||||||
Net Income | $ 215,160 | $ 223,784 | $ (11,351) | $ (58,177) | $ 149,931 | $ 331,836 | $ 28,325 | $ (11,218) | 369,416 | 498,874 | 903,944 |
Reclassification Out of Accumulated Other Comprehensive Income (Loss) | Derivative Instruments | Foreign Currency Forward Exchange Contracts | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||
Cost of sales | 52,037 | (916) | (5,735) | ||||||||
Provision for income taxes | 551 | 33 | 838 | ||||||||
Net Income | 52,588 | (883) | (4,897) | ||||||||
Reclassification Out of Accumulated Other Comprehensive Income (Loss) | Defined Benefit Pension Plans | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||
Amortization of prior service credit | 465 | 1,037 | 1,057 | ||||||||
Recognized actuarial loss | (15,316) | (15,788) | (21,771) | ||||||||
Settlement loss | (6,453) | 0 | (1,835) | ||||||||
Curtailment gain | 8,639 | 0 | 0 | ||||||||
Income Before Income Taxes | (12,665) | (14,751) | (22,549) | ||||||||
Provision for income taxes | 4,573 | 5,343 | 8,127 | ||||||||
Net Income | $ (8,092) | $ (9,408) | $ (14,422) |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) - USD ($) | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Jul. 17, 2013 | |
Equity [Abstract] | ||||
Preference stock, maximum shares authorized to be issued (shares) | 20,000,000 | |||
Preference stock, par value (USD per share) | $ 0.01 | |||
Preference stock, shares outstanding (shares) | 0 | |||
Preferred stock, maximum shares authorized to be issued (shares) | 3,000,000 | |||
Preferred stock, par value (USD per share) | $ 1 | |||
Preferred stock, shares outstanding (shares) | 0 | |||
Shares of common stock repurchased (shares) | 4,900,000 | 11,000,000 | ||
Purchase of treasury stock | $ 0 | $ 177,162,000 | $ 469,218,000 | |
Authorized increase to share repurchase program | $ 500,000,000 | |||
Remaining share repurchase authorizations under share repurchase program | $ 203,000,000 | |||
Dividends paid per share of common stock (USD per share) | $ 1.52 | $ 1.52 | $ 1.44 | |
Currency translation adjustments | $ 213,797,000 | $ 189,666,000 | $ 29,694,000 |
Share-Based Payments - Weighted
Share-Based Payments - Weighted Average Assumptions Used to Determine Fair Value of Options Granted (Detail) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Expected life (in years) | 4 years 10 months 24 days | 4 years 10 months 24 days | 4 years 10 months 24 days |
Risk-free interest rate | 1.50% | 1.60% | 1.50% |
Volatility factor | 23.10% | 23.70% | 31.80% |
Dividend yield | 6.50% | 4.30% | 3.40% |
Share-Based Payments - Summary
Share-Based Payments - Summary of Stock Option Information and Weighted Average Exercise Prices (Detail) - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Number of shares | |||
Outstanding at January 1 (in shares) | 10,523 | 9,218 | 14,630 |
Granted (in shares) | 9,112 | 3,373 | 1,488 |
Exercised (in shares) | (764) | (1,891) | (6,828) |
Forfeited (in shares) | (717) | (166) | (60) |
Canceled (in shares) | (254) | (11) | (12) |
Outstanding at December 31 (in shares) | 17,900 | 10,523 | 9,218 |
Exercisable at December 31 (in shares) | 7,498 | 5,810 | 6,135 |
Weighted Average Exercise Price | |||
Outstanding at January 1 (USD per share) | $ 30.77 | $ 27.48 | $ 22.34 |
Granted (USD per share) | 23.37 | 35.33 | 42.70 |
Exercised (USD per share) | 19.63 | 22.35 | 19.74 |
Forfeited (USD per share) | 31.34 | 36.85 | 33.18 |
Canceled (USD per share) | 35.07 | 25.28 | 20.02 |
Outstanding at December 31 (USD per share) | 27.39 | 30.77 | 27.48 |
Exercisable at December 31 (USD per share) | $ 30.09 | $ 26.07 | $ 22.70 |
Share-Based Payments - Summar67
Share-Based Payments - Summary of RSU Information and Weighted Average Grant Date Fair Values Excluding Performance RSUs (Detail) - Restricted Stock Units (RSUs) - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Number of Shares | |||
Unvested January 1 (in shares) | 3,173 | 3,036 | 3,505 |
Granted (in shares) | 2,332 | 1,786 | 1,116 |
Vested (in shares) | (1,159) | (1,426) | (1,337) |
Forfeited (in shares) | (608) | (223) | (248) |
Unvested December 31 (in shares) | 3,738 | 3,173 | 3,036 |
Weighted Average Grant Date Fair Value | |||
Unvested January 1 (USD per share) | $ 37.10 | $ 34.94 | $ 28.24 |
Granted (USD per share) | 23.54 | 34.83 | 42.82 |
Vested (USD per share) | 37.29 | 29.77 | 24.53 |
Forfeited (USD per share) | 34.67 | 36.27 | 31.82 |
Unvested December 31 (USD per share) | $ 28.98 | $ 37.10 | $ 34.94 |
Share-Based Payments - Addition
Share-Based Payments - Additional Information (Detail) | 12 Months Ended | ||
Dec. 31, 2015USD ($)Age$ / sharesshares | Dec. 31, 2014USD ($)$ / shares | Dec. 31, 2013USD ($)$ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Mattel, Inc. 2010 Equity and Long-Term Compensation Plan expiration date | Mar. 26, 2025 | ||
Number of shares, plus other considerations, used to determine the maximum number of shares of common stock available for grant under the Mattel, Inc. 2010 Equity and Long-Term Compensation Plan | shares | 77,000,000 | ||
Remaining number of shares of common stock available for grant under the Mattel, Inc. 2010 Equity and Long-Term Compensation Plan | shares | 33,000,000 | ||
Total unrecognized compensation cost related to unvested share-based payments | $ 85,400,000 | ||
Weighted average period for unrecognized compensation cost expected to be recognized (in years) | 2 years 5 days | ||
Share-based compensation | $ 56,691,000 | $ 51,993,000 | $ 61,651,000 |
Weighted average grant date fair value of stock options granted | $ / shares | $ 1.97 | $ 4.57 | $ 8.80 |
Intrinsic value of stock options exercised | $ 4,900,000 | $ 24,100,000 | $ 156,600,000 |
Intrinsic value of stock options outstanding | $ 49,700,000 | ||
Weighted average remaining life of stock options outstanding (in years) | 7 years 11 months 2 days | ||
Intrinsic value of stock options exercisable | $ 16,300,000 | ||
Weighted average remaining life of stock options exercisable (in years) | 5 years 11 months 20 days | ||
Stock options vested or expected to vest | shares | 17,600,000 | ||
Intrinsic value of stock options vested or expected to vest | $ 48,300,000 | ||
Weighted average exercise price of stock options vested or expected to vest | $ / shares | $ 27.48 | ||
Weighted average remaining life of stock options vested or expected to vest (in years) | 7 years 10 months 21 days | ||
Approximate stock options vested | shares | 2,000,000 | ||
Approximate total grant date fair value of stock options vested | $ 12,000,000 | 12,000,000 | 13,000,000 |
Cash received for stock option exercises | $ 14,995,000 | 43,299,000 | 134,506,000 |
Restricted stock units expected to vest | shares | 3,600,000 | ||
Weighted average grant date fair value of restricted stock units expected to vest | $ / shares | $ 29.11 | ||
Total grant date fair value of restricted stock units vested | $ 43,200,000 | 42,500,000 | 32,800,000 |
Restricted Stock Unit Compensation Expense, Excluding Performance Restricted Stock Unit Compensation Expense | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation | 41,500,000 | 39,500,000 | 38,200,000 |
Income tax benefits from share-based payment arrangements | 11,000,000 | 10,600,000 | 10,600,000 |
Performance Restricted Stock Unit Compensation Expense | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation | 0 | 0 | 11,400,000 |
Income tax benefits from share-based payment arrangements | $ 0 | 0 | 4,200,000 |
Restricted Stock Units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
General vesting period | 3 years | ||
Age requirement for accelerated vesting | Age | 55 | ||
Service period requirement for accelerated vesting | 5 years | ||
Accelerated vesting period for individuals who meet the age and service requirements | 6 months | ||
Number of shares issued per RSU award (in shares) | shares | 3 | ||
Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares issued per RSU award (in shares) | shares | 1,000 | ||
Share-based compensation | $ 15,200,000 | 12,500,000 | 12,100,000 |
Income tax benefits from share-based payment arrangements | $ 5,500,000 | $ 3,500,000 | $ 3,800,000 |
Stock Appreciation Rights (SARs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares issued per RSU award (in shares) | shares | 1,000 | ||
Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares issued per RSU award (in shares) | shares | 3,000 | ||
Nonqualified Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Minimum grant date fair value of nonqualified stock options as a percentage of the fair value of Mattel's common stock | 100.00% | ||
General vesting period | 3 years | ||
Age requirement for accelerated vesting | Age | 55 | ||
Service period requirement for accelerated vesting | 5 years | ||
Accelerated vesting period for individuals who meet the age and service requirements | 6 months | ||
Nonqualified Stock Options | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock option expire from date of grant, period | 10 years |
Earnings Per Share (Detail)
Earnings Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Basic: | |||||||||||
Net income (loss) | $ 215,160 | $ 223,784 | $ (11,351) | $ (58,177) | $ 149,931 | $ 331,836 | $ 28,325 | $ (11,218) | $ 369,416 | $ 498,874 | $ 903,944 |
Less: Net income allocable to participating RSUs | (3,179) | (4,028) | (8,335) | ||||||||
Net income available for basic common shares | $ 366,237 | $ 494,846 | $ 895,609 | ||||||||
Weighted average number of common shares (in shares) | 339,815 | 339,420 | 338,843 | 338,579 | 338,416 | 338,728 | 338,709 | 340,226 | 339,172 | 339,016 | 343,394 |
Net Income Per Common Share-Basic (in USD per share) | $ 0.63 | $ 0.66 | $ (0.03) | $ (0.17) | $ 0.44 | $ 0.97 | $ 0.08 | $ (0.03) | $ 1.08 | $ 1.46 | $ 2.61 |
Diluted: | |||||||||||
Net income (loss) | $ 215,160 | $ 223,784 | $ (11,351) | $ (58,177) | $ 149,931 | $ 331,836 | $ 28,325 | $ (11,218) | $ 369,416 | $ 498,874 | $ 903,944 |
Less: Net income allocable to participating RSUs | (3,179) | (4,028) | (8,291) | ||||||||
Net income available for diluted common shares | $ 366,237 | $ 494,846 | $ 895,653 | ||||||||
Weighted average number of common shares (in shares) | 339,815 | 339,420 | 338,843 | 338,579 | 338,416 | 338,728 | 338,709 | 340,226 | 339,172 | 339,016 | 343,394 |
Weighted average common equivalent shares arising from: | |||||||||||
Dilutive stock options and non-participating RSUs (in shares) | 576 | 1,752 | 4,065 | ||||||||
Weighted average number of common and potential common shares (in shares) | 340,364 | 339,790 | 338,843 | 338,579 | 339,506 | 340,329 | 340,644 | 340,226 | 339,748 | 340,768 | 347,459 |
Net Income Per Common Share-Diluted (in USD per share) | $ 0.63 | $ 0.66 | $ (0.03) | $ (0.17) | $ 0.44 | $ 0.97 | $ 0.08 | $ (0.03) | $ 1.08 | $ 1.45 | $ 2.58 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) - shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Earnings Per Share [Abstract] | |||
Nonqualified stock options and non-participating RSUs excluded from the calculation of diluted net income per common share (in shares) | 9.6 | 2.8 | 0.6 |
Derivative Instruments - Schedu
Derivative Instruments - Schedule of Derivative Assets and Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | $ 18,106 | $ 33,743 |
Derivative Liabilities | 3,720 | 13,398 |
Designated As Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 16,890 | 33,425 |
Derivative Liabilities | 1,433 | 2,444 |
Designated As Hedging Instrument | Foreign Exchange Forward | Prepaid expenses and other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 15,279 | 31,982 |
Designated As Hedging Instrument | Foreign Exchange Forward | Other noncurrent assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 1,611 | 1,443 |
Designated As Hedging Instrument | Foreign Exchange Forward | Accrued liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | 1,214 | 2,408 |
Designated As Hedging Instrument | Foreign Exchange Forward | Other noncurrent liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | 219 | 36 |
Not Designated As Hedging Instrument | Foreign Exchange Forward | Prepaid expenses and other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 1,216 | 318 |
Not Designated As Hedging Instrument | Foreign Exchange Forward | Accrued liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | $ 2,287 | $ 10,954 |
Derivative Instruments - Deriva
Derivative Instruments - Derivatives Designated as Hedging Instruments by Classification and Amount of Gains and Losses (Detail) - Designated As Hedging Instrument - Foreign Exchange Forward - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of gain (loss) recognized in OCI | $ 37,926 | $ 39,931 | $ (13,103) |
Cost of Sales Classification | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of gain (loss) reclassified from accumulated OCI to statements of operations | $ 52,588 | $ (883) | $ (4,897) |
Derivative Instruments - Deri73
Derivative Instruments - Derivatives Not Designated as Hedging Instruments by Classification and Amount of Gains and Losses (Detail) - Not Designated As Hedging Instrument - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Foreign Exchange Forward | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net gain (loss) recognized in the statements of operations for derivatives not designated as hedging instruments | $ (46,656) | $ (30,753) | $ 13,520 |
Foreign Exchange Forward | Non-Operating Income Expense Classification | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net gain (loss) recognized in the statements of operations for derivatives not designated as hedging instruments | (51,679) | (31,485) | 17,975 |
Foreign Exchange Forward | Cost of Sales Classification | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net gain (loss) recognized in the statements of operations for derivatives not designated as hedging instruments | (265) | 732 | (4,455) |
Cross Currency Interest Rate Contract [Member] | Non-Operating Income Expense Classification | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net gain (loss) recognized in the statements of operations for derivatives not designated as hedging instruments | $ 5,288 | $ 0 | $ 0 |
Derivative Instruments - Additi
Derivative Instruments - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Foreign Exchange Forward | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Notional amount of foreign currency forward exchange contracts | $ 930,800 | $ 1,190,000 | |
Foreign Exchange Forward | Designated As Hedging Instrument | Cost of Sales Classification | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Net (loss) gain reclassified from accumulated other comprehensive loss to the consolidated statements of operations for derivatives designated as hedging instruments | 52,588 | (883) | $ (4,897) |
Foreign Exchange Forward | Not Designated As Hedging Instrument | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Net (loss) gain recognized in the consolidated statements of operations for derivatives not designated as hedging instruments | (46,656) | (30,753) | 13,520 |
Foreign Exchange Forward | Not Designated As Hedging Instrument | Cost of Sales Classification | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Net (loss) gain recognized in the consolidated statements of operations for derivatives not designated as hedging instruments | $ (265) | $ 732 | $ (4,455) |
Maximum | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Maximum term for foreign currency forward exchange contracts | 18 months |
Fair Value Measurements - Finan
Fair Value Measurements - Financial Assets and Liabilities Measured and Reported at Fair Value on Recurring Basis (Detail) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Assets: | ||
Foreign currency forward exchange contracts | $ 18,106 | $ 33,743 |
Auction rate security | 30,960 | |
Total assets | 64,703 | |
Liabilities: | ||
Foreign currency forward exchange contracts | 3,720 | 13,398 |
Level 1 | ||
Assets: | ||
Foreign currency forward exchange contracts | 0 | 0 |
Auction rate security | 0 | |
Total assets | 0 | |
Liabilities: | ||
Foreign currency forward exchange contracts | 0 | 0 |
Level 2 | ||
Assets: | ||
Foreign currency forward exchange contracts | 18,106 | 33,743 |
Auction rate security | 0 | |
Total assets | 33,743 | |
Liabilities: | ||
Foreign currency forward exchange contracts | 3,720 | 13,398 |
Level 3 | ||
Assets: | ||
Foreign currency forward exchange contracts | 0 | 0 |
Auction rate security | 30,960 | |
Total assets | 30,960 | |
Liabilities: | ||
Foreign currency forward exchange contracts | $ 0 | $ 0 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets Measured and Reported at Fair Value on Recurring Basis Using Significant Level 3 Inputs (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Balance at beginning of period | $ 30,960 | $ 28,895 | $ 19,256 |
Unrealized gain | 1,290 | 2,065 | 9,639 |
Proceeds from sale | (32,250) | ||
Balance at end of period | $ 0 | $ 30,960 | $ 28,895 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Jun. 30, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | |
Fair Value Disclosures [Abstract] | |||
Impairment charge | $ 14,000 | ||
Remaining fair value of intangible asset | $ 99,000 | ||
Estimated fair value of long-term debt, including the current portion | $ 2,150,000 | $ 2,180,000 | |
Long-term debt | $ 2,100,000 | $ 2,100,000 |
Commitments and Contingencies -
Commitments and Contingencies - Schedule of Future Minimum Obligations Under Lease Commitments (Detail) $ in Thousands | Dec. 31, 2015USD ($) |
Capital Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
2,016 | $ 294 |
2,017 | 294 |
2,018 | 294 |
2,019 | 294 |
2,020 | 25 |
Thereafter | 0 |
Total future minimum capital lease obligations | 1,201 |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
2,016 | 105,615 |
2,017 | 78,691 |
2,018 | 58,359 |
2,019 | 45,490 |
2,020 | 41,023 |
Thereafter | 112,531 |
Total future minimum operating lease obligations | 441,709 |
Imputed interest for capitalized leases | $ 200 |
Commitments and Contingencies79
Commitments and Contingencies - Schedule of Future Minimum Payments for Licensing and Similar Agreements (Detail) $ in Thousands | Dec. 31, 2015USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2,016 | $ 106,048 |
2,017 | 84,452 |
2,018 | 101,887 |
2,019 | 79,269 |
2,020 | 34,973 |
Thereafter | 4,466 |
Total future minimum licensing and similar agreements obligations | $ 411,095 |
Commitments and Contingencies80
Commitments and Contingencies - Schedule of Future Minimum Obligations for Purchases of Inventory, Services, and Other (Detail) $ in Thousands | Dec. 31, 2015USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2,016 | $ 417,963 |
2,017 | 11,639 |
2,018 | 5,691 |
2,019 | 2,075 |
2,020 | 1,105 |
Total future minimum obligations for purchases of inventory, services, and other | $ 438,473 |
Commitments and Contingencies81
Commitments and Contingencies - Additional Information (Detail) | Apr. 26, 2015 | Jan. 13, 2014USD ($) | Dec. 23, 2013USD ($) | Dec. 21, 2013USD ($) | Jan. 24, 2013USD ($) | Aug. 11, 2011USD ($) | Aug. 31, 2011USD ($) | Apr. 30, 2011USD ($)LegalMatter | Jan. 31, 2010USD ($) | Jun. 30, 2006Case | Apr. 30, 1999USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Nov. 11, 2014USD ($) | Jul. 26, 2013USD ($) | Dec. 31, 2012USD ($) | Apr. 27, 2009USD ($) | Jul. 17, 2008USD ($) |
Commitments and Contingencies Disclosure [Line Items] | |||||||||||||||||||
Operating lease rental expense, net of sublease income | $ 114,900,000 | $ 120,900,000 | $ 111,000,000 | ||||||||||||||||
Sublease income | 2,700,000 | 2,600,000 | 900,000 | ||||||||||||||||
Royalty expense | 264,600,000 | 242,400,000 | $ 246,900,000 | ||||||||||||||||
Liability for reported and incurred but not reported claims | 13,900,000 | $ 14,200,000 | |||||||||||||||||
Number of cases | Case | 3 | ||||||||||||||||||
Workers Compensation Risks | |||||||||||||||||||
Commitments and Contingencies Disclosure [Line Items] | |||||||||||||||||||
Self-insured amount per occurrence | 1,000,000 | ||||||||||||||||||
General And Automobile Liability Risks | |||||||||||||||||||
Commitments and Contingencies Disclosure [Line Items] | |||||||||||||||||||
Self-insured amount per occurrence | 500,000 | ||||||||||||||||||
Product Liability Risks | |||||||||||||||||||
Commitments and Contingencies Disclosure [Line Items] | |||||||||||||||||||
Self-insured amount per occurrence | 2,000,000 | ||||||||||||||||||
Self-insured amount per year | 2,000,000 | ||||||||||||||||||
Property Risks | |||||||||||||||||||
Commitments and Contingencies Disclosure [Line Items] | |||||||||||||||||||
Self-insured amount per occurrence | 1,000,000 | ||||||||||||||||||
MGA | |||||||||||||||||||
Commitments and Contingencies Disclosure [Line Items] | |||||||||||||||||||
Historical jury verdict | $ 100,000,000 | $ 100,000,000 | |||||||||||||||||
Claimed trade secrets | LegalMatter | 26 | ||||||||||||||||||
Compensatory damages awarded by jury | $ 88,500,000 | ||||||||||||||||||
Other claimed trade secrets | LegalMatter | 88 | ||||||||||||||||||
Reduced compensatory damages awarded by court | $ 85,000,000 | ||||||||||||||||||
Punitive damages awarded | 85,000,000 | ||||||||||||||||||
Attorney fees and costs awarded | 140,000,000 | ||||||||||||||||||
Compensatory damages, punitive damages, and attorney fees and costs awarded by court | $ 310,000,000 | ||||||||||||||||||
Damages for alleged trade secret misappropriation appealed | $ 170,000,000 | ||||||||||||||||||
Attorney fees and costs appealed | $ 140,000,000 | ||||||||||||||||||
Amount of damages and attorney's fees and costs vacated by the appeals court | $ 172,500,000 | ||||||||||||||||||
Litigation accrual | $ 138,000,000 | ||||||||||||||||||
Approximate amount of judgment finalized in the District Court, including interest | $ 138,000,000 | ||||||||||||||||||
Payment Of Judgment | $ 138,000,000 | ||||||||||||||||||
Reasonably possible range of loss, minimum | 0 | ||||||||||||||||||
Reasonably possible range of loss, maximum | 12,500,000 | ||||||||||||||||||
Reasonably possible range of pre-judgment interest, minimum | 0 | ||||||||||||||||||
Reasonably possible range of pre-judgment interest, maximum | 10,000,000 | ||||||||||||||||||
Accrued litigation liability | 0 | ||||||||||||||||||
MGA | Minimum | |||||||||||||||||||
Commitments and Contingencies Disclosure [Line Items] | |||||||||||||||||||
Alleged trade secrets damages claimed more than | $ 1,000,000,000 | ||||||||||||||||||
Yellowstone | |||||||||||||||||||
Commitments and Contingencies Disclosure [Line Items] | |||||||||||||||||||
Reasonably possible range of loss, minimum | 0 | ||||||||||||||||||
Reasonably possible range of loss, maximum | 12,300,000 | ||||||||||||||||||
Alleged loss of profits | $ 1,000,000 | ||||||||||||||||||
Unpaid accounts receivable | 4,000,000 | ||||||||||||||||||
Alleged business investments | 3,000,000 | ||||||||||||||||||
Initial court appointed expert estimated loss of profits | 1,000,000 | ||||||||||||||||||
Court awarded damages from counterclaim | $ 4,000,000 | ||||||||||||||||||
Damages Including Attorney Fees Awarded By Appeals Court Including inflation And Interest | $ 17,000,000 | ||||||||||||||||||
Damages awarded by Appeals Court including inflation and interest | $ 14,500,000 | ||||||||||||||||||
Counterclaim Awarded By Appeals Court | $ 5,500,000 | $ 7,500,000 | $ 7,500,000 | ||||||||||||||||
Loss Contingency, Additional Fine on Claim, Percent | 1.00% |
Segment Information - Revenues
Segment Information - Revenues by Segment (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Segment Reporting Information [Line Items] | |||||||||||
Gross sales | $ 6,283,628 | $ 6,718,448 | $ 7,117,813 | ||||||||
Sales adjustments | (581,015) | (694,629) | (632,921) | ||||||||
Net Sales | $ 1,999,744 | $ 1,791,968 | $ 988,152 | $ 922,749 | $ 1,993,966 | $ 2,021,424 | $ 1,062,252 | $ 946,177 | 5,702,613 | 6,023,819 | 6,484,892 |
Operating (loss) income | 294,053 | 300,773 | 563 | (54,467) | 237,009 | 409,479 | 1,008 | 6,218 | 540,922 | 653,714 | 1,168,103 |
Interest expense | 85,270 | 79,271 | 78,505 | ||||||||
Interest (income) | (7,230) | (7,382) | (5,555) | ||||||||
Other non-operating (income), net | (1,033) | (5,085) | (3,975) | ||||||||
Income Before Income Taxes | $ 270,821 | $ 286,139 | $ (19,898) | $ (73,147) | $ 216,522 | $ 394,180 | $ (14,371) | $ (9,421) | 463,915 | 586,910 | 1,099,128 |
Expense for incentive compensation plans | 50,200 | 25,200 | 65,000 | ||||||||
Share-based compensation expense | 56,691 | 51,993 | 61,651 | ||||||||
Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating (loss) income | 929,216 | 933,308 | 1,484,773 | ||||||||
Operating Segments | North America | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Gross sales | 3,083,873 | 3,011,633 | 3,181,205 | ||||||||
Operating (loss) income | 538,249 | 459,833 | 723,834 | ||||||||
Operating Segments | International | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Gross sales | 2,603,537 | 3,061,506 | 3,277,840 | ||||||||
Operating (loss) income | 321,068 | 359,904 | 622,910 | ||||||||
Operating Segments | American Girl | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Gross sales | 596,218 | 645,309 | 658,768 | ||||||||
Operating (loss) income | 69,899 | 113,571 | 138,029 | ||||||||
Corporate and Other | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating (loss) income | (388,294) | (279,594) | (316,670) | ||||||||
Expense for incentive compensation plans | 50,200 | 25,200 | 65,000 | ||||||||
Severance and other termination-related costs | 72,000 | 51,800 | 17,600 | ||||||||
Share-based compensation expense | $ 56,700 | $ 52,000 | $ 61,700 |
Segment Information - Depreciat
Segment Information - Depreciation/Amortization (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | $ 265,427 | $ 248,701 | $ 196,393 |
Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | 235,080 | 223,078 | 173,679 |
Operating Segments | North America | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | 122,757 | 118,633 | 84,935 |
Operating Segments | International | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | 90,269 | 86,011 | 71,380 |
Operating Segments | American Girl | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | 22,054 | 18,434 | 17,364 |
Corporate and Other | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | $ 30,347 | $ 25,623 | $ 22,714 |
Segment Information - Segment A
Segment Information - Segment Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Accounts receivable and inventories, net | $ 1,732,620 | $ 1,656,207 | $ 1,828,948 |
Operating Segments | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Accounts receivable and inventories, net | 1,633,068 | 1,585,873 | 1,745,094 |
Operating Segments | North America | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Accounts receivable and inventories, net | 764,945 | 698,357 | 723,886 |
Operating Segments | International | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Accounts receivable and inventories, net | 759,709 | 778,849 | 920,770 |
Operating Segments | American Girl | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Accounts receivable and inventories, net | 108,414 | 108,667 | 100,438 |
Corporate and Other | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Accounts receivable and inventories, net | $ 99,552 | $ 70,334 | $ 83,854 |
Segment Information - Worldwide
Segment Information - Worldwide Revenues by Brand Category (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Gross sales | $ 6,283,628 | $ 6,718,448 | $ 7,117,813 | ||||||||
Sales adjustments | (581,015) | (694,629) | (632,921) | ||||||||
Net Sales | $ 1,999,744 | $ 1,791,968 | $ 988,152 | $ 922,749 | $ 1,993,966 | $ 2,021,424 | $ 1,062,252 | $ 946,177 | 5,702,613 | 6,023,819 | 6,484,892 |
Mattel Girls & Boys Brands | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Gross sales | 3,464,195 | 3,897,218 | 4,315,855 | ||||||||
Fisher-Price Brands | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Gross sales | 1,852,219 | 1,842,550 | 2,120,719 | ||||||||
American Girl Brands | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Gross sales | 571,957 | 618,678 | 632,515 | ||||||||
Construction and Arts & Crafts Brands | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Gross sales | 351,747 | 314,994 | 0 | ||||||||
Other | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Gross sales | $ 43,510 | $ 45,008 | $ 48,724 |
Segment Information - Revenue86
Segment Information - Revenues by Geographic Area (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Gross sales | $ 6,283,628 | $ 6,718,448 | $ 7,117,813 | ||||||||
Sales adjustments | (581,015) | (694,629) | (632,921) | ||||||||
Net Sales | $ 1,999,744 | $ 1,791,968 | $ 988,152 | $ 922,749 | $ 1,993,966 | $ 2,021,424 | $ 1,062,252 | $ 946,177 | 5,702,613 | 6,023,819 | 6,484,892 |
North American Region | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Gross sales | 3,680,091 | 3,656,942 | 3,839,973 | ||||||||
UNITED STATES | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Gross sales | 3,460,000 | 3,410,000 | 3,580,000 | ||||||||
International | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Gross sales | 2,603,537 | 3,061,506 | 3,277,840 | ||||||||
Europe | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Gross sales | 1,388,753 | 1,687,039 | 1,806,707 | ||||||||
Latin America | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Gross sales | 711,041 | 909,432 | 1,011,718 | ||||||||
Asia Pacific | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Gross sales | $ 503,743 | $ 465,035 | $ 459,415 |
Segment Information - Long-Live
Segment Information - Long-Lived Assets by Geographic Area (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long-Lived Assets | $ 3,038,435 | $ 3,149,618 | $ 2,687,995 |
North American Region | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long-Lived Assets | 1,572,432 | 1,656,985 | 1,361,538 |
UNITED STATES | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long-Lived Assets | 1,570,000 | 1,650,000 | 1,360,000 |
International | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long-Lived Assets | $ 1,466,003 | $ 1,492,633 | $ 1,326,457 |
Segment Information - Net Sales
Segment Information - Net Sales to Three Largest Customers (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Revenue, Major Customer [Line Items] | |||||||||||
Net Sales | $ 1,999,744 | $ 1,791,968 | $ 988,152 | $ 922,749 | $ 1,993,966 | $ 2,021,424 | $ 1,062,252 | $ 946,177 | $ 5,702,613 | $ 6,023,819 | $ 6,484,892 |
Wal-Mart | |||||||||||
Revenue, Major Customer [Line Items] | |||||||||||
Net Sales | 1,000,000 | 1,100,000 | 1,200,000 | ||||||||
Toys “R” Us | |||||||||||
Revenue, Major Customer [Line Items] | |||||||||||
Net Sales | 600,000 | 600,000 | 700,000 | ||||||||
Target | |||||||||||
Revenue, Major Customer [Line Items] | |||||||||||
Net Sales | $ 500,000 | $ 500,000 | $ 500,000 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) - Brand | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Segment Reporting [Abstract] | |||
Number of brands | 4 | ||
Percentage of total consolidated net sales accounted by three largest customers | 37.00% | 35.00% | 36.00% |
Supplemental Financial Inform90
Supplemental Financial Information - Balance Sheet Accounts (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Inventories include the following: | ||
Raw materials and work in process | $ 105,917 | $ 88,395 |
Finished goods | 481,604 | 473,360 |
Inventories | 587,521 | 561,755 |
Property, plant, and equipment, net includes the following: | ||
Property, plant, and equipment, gross | 2,507,861 | 2,395,244 |
Less: accumulated depreciation | (1,766,714) | (1,657,375) |
Total property, plant, and equipment, net | 741,147 | 737,869 |
Accumulated amortization of identifiable intangibles | 131,500 | 103,600 |
Other noncurrent assets include the following: | ||
Nonamortizable identifiable intangibles | 488,144 | 498,517 |
Deferred income taxes | 317,391 | 385,434 |
Identifiable intangibles (net of amortization of $131.5 and $103.6 million at December 31, 2015 and 2014, respectively) | 212,161 | 240,227 |
Other | 212,463 | 280,080 |
Total other noncurrent assets | 1,230,159 | 1,404,258 |
Accrued liabilities include the following: | ||
Royalties | 122,153 | 112,823 |
Advertising and promotion | 75,991 | 88,132 |
Taxes other than income taxes | 66,848 | 53,182 |
Incentive compensation | 52,721 | 25,601 |
Other | 340,512 | 360,106 |
Total accrued liabilities | 658,225 | 639,844 |
Other noncurrent liabilities include the following: | ||
Benefit plan liabilities | 195,916 | 229,963 |
Noncurrent tax liabilities | 108,808 | 171,181 |
Other | 169,139 | 182,882 |
Total other noncurrent liabilities | 473,863 | 584,026 |
Land | ||
Property, plant, and equipment, net includes the following: | ||
Property, plant, and equipment, gross | 27,049 | 27,465 |
Buildings | ||
Property, plant, and equipment, net includes the following: | ||
Property, plant, and equipment, gross | 275,266 | 274,452 |
Machinery and equipment | ||
Property, plant, and equipment, net includes the following: | ||
Property, plant, and equipment, gross | 764,657 | 728,299 |
Software | ||
Property, plant, and equipment, net includes the following: | ||
Property, plant, and equipment, gross | 331,251 | 316,374 |
Tools, dies, and molds | ||
Property, plant, and equipment, net includes the following: | ||
Property, plant, and equipment, gross | 840,586 | 782,507 |
Capital leases | ||
Property, plant, and equipment, net includes the following: | ||
Property, plant, and equipment, gross | 23,970 | 23,970 |
Leasehold improvements | ||
Property, plant, and equipment, net includes the following: | ||
Property, plant, and equipment, gross | $ 245,082 | $ 242,177 |
Supplemental Financial Inform91
Supplemental Financial Information - Currency Transaction Gains (Losses) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Currency Transaction Gains (Losses) [Line Items] | |||
Net transaction (losses) gains | $ (34,006) | $ 46,887 | $ 37,572 |
Operating income | |||
Currency Transaction Gains (Losses) [Line Items] | |||
Net transaction (losses) gains | (25,715) | 44,060 | 38,842 |
Other non-operating income (expense), net | |||
Currency Transaction Gains (Losses) [Line Items] | |||
Net transaction (losses) gains | $ (8,291) | $ 2,827 | $ (1,270) |
Supplemental Financial Inform92
Supplemental Financial Information - Other Selling and Administrative Expenses (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Design and development | $ 217,816 | $ 209,467 | $ 201,942 |
Identifiable intangible asset amortization | 27,923 | 36,704 | 12,575 |
Bad debt expense | $ 5,813 | $ 11,507 | $ 4,471 |
Quarterly Financial Informati93
Quarterly Financial Information (unaudited) - Schedule of Quarterly Financial Information (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Net Sales | $ 1,999,744 | $ 1,791,968 | $ 988,152 | $ 922,749 | $ 1,993,966 | $ 2,021,424 | $ 1,062,252 | $ 946,177 | $ 5,702,613 | $ 6,023,819 | $ 6,484,892 |
Gross profit | 1,003,455 | 879,597 | 472,858 | 450,448 | 1,005,783 | 1,021,138 | 492,570 | 481,531 | 2,806,358 | 3,001,022 | 3,478,883 |
Advertising and promotion expenses | 297,435 | 213,245 | 104,744 | 102,428 | 323,810 | 218,746 | 99,853 | 90,834 | |||
Other selling and administrative expenses | 411,967 | 365,579 | 367,551 | 402,487 | 444,964 | 392,913 | 391,709 | 384,479 | |||
Operating Income | 294,053 | 300,773 | 563 | (54,467) | 237,009 | 409,479 | 1,008 | 6,218 | 540,922 | 653,714 | 1,168,103 |
(Loss) Income before income taxes | 270,821 | 286,139 | (19,898) | (73,147) | 216,522 | 394,180 | (14,371) | (9,421) | 463,915 | 586,910 | 1,099,128 |
Net income (loss) | $ 215,160 | $ 223,784 | $ (11,351) | $ (58,177) | $ 149,931 | $ 331,836 | $ 28,325 | $ (11,218) | $ 369,416 | $ 498,874 | $ 903,944 |
Net Income Per Common Share-Basic (in USD per share) | $ 0.63 | $ 0.66 | $ (0.03) | $ (0.17) | $ 0.44 | $ 0.97 | $ 0.08 | $ (0.03) | $ 1.08 | $ 1.46 | $ 2.61 |
Weighted average number of common shares (in shares) | 339,815 | 339,420 | 338,843 | 338,579 | 338,416 | 338,728 | 338,709 | 340,226 | 339,172 | 339,016 | 343,394 |
Net Income Per Common Share-Diluted (in USD per share) | $ 0.63 | $ 0.66 | $ (0.03) | $ (0.17) | $ 0.44 | $ 0.97 | $ 0.08 | $ (0.03) | $ 1.08 | $ 1.45 | $ 2.58 |
Weighted average number of common and potential common shares (in shares) | 340,364 | 339,790 | 338,843 | 338,579 | 339,506 | 340,329 | 340,644 | 340,226 | 339,748 | 340,768 | 347,459 |
Dividends Declared Per Common Share (in USD per share) | $ 0.38 | $ 0.38 | $ 0.38 | $ 0.38 | $ 0.38 | $ 0.38 | $ 0.38 | $ 0.38 | $ 1.52 | $ 1.52 | $ 1.44 |
Common stock market price - high (USD per share) | 27.69 | 26.34 | 30.2 | 30.47 | 31.86 | 39.79 | 40.32 | 47.39 | |||
Common stock market price - low (USD per share) | $ 19.83 | $ 21.03 | $ 22.65 | $ 22.61 | $ 28.78 | $ 30.48 | $ 37.47 | $ 35.24 | |||
Net tax benefit (expense) | $ 16,300 | $ (800) | $ 4,300 | $ (700) | $ (8,900) | $ 15,100 | $ 40,100 | $ (3,700) |
Subsequent Event - Additional I
Subsequent Event - Additional Information (Detail) - $ / shares | Feb. 01, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Subsequent Event [Line Items] | ||||||||||||
Dividends declared per common share (in USD per share) | $ 0.38 | $ 0.38 | $ 0.38 | $ 0.38 | $ 0.38 | $ 0.38 | $ 0.38 | $ 0.38 | $ 1.52 | $ 1.52 | $ 1.44 | |
Subsequent Event | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Dividend declared date | Feb. 1, 2016 | |||||||||||
Dividends declared per common share (in USD per share) | $ 0.38 | |||||||||||
Date to be paid | Mar. 4, 2016 | |||||||||||
Date of record | Feb. 17, 2016 |
Valuation and Qualifying Acco95
Valuation and Qualifying Accounts and Allowances (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Allowance for Doubtful Accounts | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Year | $ 26,283 | $ 20,416 | $ 33,499 |
Additions Charged to Operations | 5,813 | 11,507 | 4,471 |
Net Deductions and Other | (7,726) | (5,640) | (17,554) |
Balance at End of Year | 24,370 | 26,283 | 20,416 |
Allowance for Inventory Obsolescence | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Year | 46,899 | 49,113 | 46,585 |
Additions Charged to Operations | 33,305 | 39,235 | 35,027 |
Net Deductions and Other | (34,489) | (41,449) | (32,499) |
Balance at End of Year | 45,715 | 46,899 | 49,113 |
Income Tax Valuation Allowances | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Year | 133,297 | 64,641 | 67,705 |
Additions Charged to Operations | 8,161 | 73,497 | 6,564 |
Net Deductions and Other | (64,124) | (4,841) | (9,628) |
Balance at End of Year | $ 77,334 | $ 133,297 | $ 64,641 |