Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2018 | Jul. 13, 2018 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | MAT | |
Entity Registrant Name | MATTEL INC /DE/ | |
Entity Central Index Key | 63,276 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 344,153,031 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 | Jun. 30, 2017 |
Current Assets | |||
Cash and equivalents | $ 228,606 | $ 1,079,221 | $ 275,395 |
Accounts receivable, net | 780,064 | 1,128,610 | 917,652 |
Inventories | 715,288 | 600,704 | 935,933 |
Prepaid expenses and other current assets | 327,297 | 303,053 | 373,648 |
Total current assets | 2,051,255 | 3,111,588 | 2,502,628 |
Noncurrent Assets | |||
Property, plant, and equipment, net | 719,747 | 785,285 | 807,796 |
Goodwill | 1,390,076 | 1,396,669 | 1,394,464 |
Other noncurrent assets | 892,364 | 944,961 | 1,462,994 |
Total Assets | 5,053,442 | 6,238,503 | 6,167,882 |
Current Liabilities | |||
Short-term borrowings | 80,000 | 0 | 506,769 |
Current portion of long-term debt | 0 | 250,000 | 250,000 |
Accounts payable | 428,741 | 572,166 | 549,319 |
Accrued liabilities | 585,585 | 792,139 | 452,032 |
Income taxes payable | 3,119 | 9,498 | 4,380 |
Total current liabilities | 1,097,445 | 1,623,803 | 1,762,500 |
Noncurrent Liabilities | |||
Long-term debt | 2,848,177 | 2,873,119 | 1,885,693 |
Other noncurrent liabilities | 443,849 | 484,126 | 452,284 |
Total noncurrent liabilities | 3,292,026 | 3,357,245 | 2,337,977 |
Stockholders’ Equity | |||
Common stock $1.00 par value, 1.0 billion shares authorized; 441.4 million shares issued | 441,369 | 441,369 | 441,369 |
Additional paid-in capital | 1,820,432 | 1,808,391 | 1,809,843 |
Treasury stock at cost: 97.2 million shares, 98.7 million shares, and 97.6 million shares, respectively | (2,381,777) | (2,389,877) | (2,416,804) |
Retained earnings | 1,608,025 | 2,179,358 | 3,114,931 |
Accumulated other comprehensive loss | (824,078) | (781,786) | (881,934) |
Total stockholders’ equity | 663,971 | 1,257,455 | 2,067,405 |
Total Liabilities and Stockholders’ Equity | $ 5,053,442 | $ 6,238,503 | $ 6,167,882 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Jun. 30, 2018 | Dec. 31, 2017 | Jun. 30, 2017 |
Statement of Financial Position [Abstract] | |||
Common stock, par value (USD per share) | $ 1 | $ 1 | $ 1 |
Common stock authorized (shares) | 1,000,000,000 | 1,000,000,000 | 1,000,000,000 |
Common stock issued (shares) | 441,400,000 | 441,400,000 | 441,400,000 |
Treasury stock (shares) | 97,200,000 | 97,600,000 | 98,700,000 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Income Statement [Abstract] | ||||
Net Sales | $ 840,748 | $ 974,477 | $ 1,549,120 | $ 1,710,095 |
Cost of sales | 587,546 | 574,712 | 1,077,045 | 1,031,552 |
Gross Profit | 253,202 | 399,765 | 472,075 | 678,543 |
Advertising and promotion expenses | 82,393 | 95,499 | 153,230 | 169,061 |
Other selling and administrative expenses | 360,000 | 353,296 | 784,617 | 684,125 |
Operating Loss | (189,191) | (49,030) | (465,772) | (174,643) |
Interest expense | 43,467 | 21,881 | 84,546 | 43,911 |
Interest (income) | (1,699) | (2,296) | (4,846) | (4,762) |
Other non-operating expense, net | 3,063 | 5,128 | 2,455 | 5,622 |
Loss Before Income Taxes | (234,022) | (73,743) | (547,927) | (219,414) |
Provision (benefit) for income taxes | 6,909 | (17,668) | 4,257 | (50,108) |
Net Loss | $ (240,931) | $ (56,075) | $ (552,184) | $ (169,306) |
Net Loss Per Common Share—Basic (USD per share) | $ (0.70) | $ (0.16) | $ (1.60) | $ (0.49) |
Weighted average number of common shares | 344,584 | 343,116 | 344,507 | 343,020 |
Net Loss Per Common Share—Diluted (USD per share) | $ (0.70) | $ (0.16) | $ (1.60) | $ (0.49) |
Weighted average number of common and potential common shares | 344,584 | 343,116 | 344,507 | 343,020 |
Dividends Declared Per Common Share (USD per share) | $ 0 | $ 0.38 | $ 0 | $ 0.76 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | ||||
Net Loss | $ (240,931) | $ (56,075) | $ (552,184) | $ (169,306) |
Other Comprehensive Income (Loss), Net of Tax: | ||||
Currency translation adjustments | (105,727) | 51,067 | (63,738) | 105,336 |
Defined benefit pension plan adjustments | 1,069 | 1,024 | 2,685 | 2,079 |
Net unrealized losses on available-for-sale security | (2,709) | (2,423) | (2,789) | (3,737) |
Net unrealized gains (losses) on derivative instruments: | ||||
Unrealized holding gains (losses) | 17,652 | (27,406) | 12,333 | (39,990) |
Reclassification adjustment for realized losses (gains) included in net loss | 4,786 | (364) | 9,217 | (2,593) |
Net unrealized gains (losses) on derivative instruments | 22,438 | (27,770) | 21,550 | (42,583) |
Other Comprehensive (Loss) Income, Net of Tax | (84,929) | 21,898 | (42,292) | 61,095 |
Comprehensive Loss | $ (325,860) | $ (34,177) | $ (594,476) | $ (108,211) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Cash Flows From Operating Activities: | ||
Net loss | $ (552,184,000) | $ (169,306,000) |
Adjustments to reconcile net loss to net cash flows used for operating activities: | ||
Depreciation | 117,440,000 | 118,221,000 |
Amortization | 19,730,000 | 10,702,000 |
Asset impairments | 11,913,000 | 0 |
Deferred income taxes | (827,000) | (70,682,000) |
Share-based compensation | 22,417,000 | 30,553,000 |
Bad debt expense | 52,935,000 | 9,934,000 |
Inventory obsolescence | 45,394,000 | 22,001,000 |
Increase (decrease) from changes in assets and liabilities, net of acquired assets and liabilities: | ||
Accounts receivable | 274,306,000 | 214,655,000 |
Inventories | (184,950,000) | (324,901,000) |
Prepaid expenses and other current assets | (27,784,000) | (38,690,000) |
Accounts payable, accrued liabilities, and income taxes payable | (328,998,000) | (298,184,000) |
Other, net | (6,001,000) | (53,398,000) |
Net cash flows used for operating activities | (556,609,000) | (549,095,000) |
Cash Flows From Investing Activities: | ||
Purchases of tools, dies, and molds | (36,793,000) | (70,858,000) |
Purchases of other property, plant, and equipment | (41,498,000) | (77,987,000) |
(Payments) proceeds from foreign currency forward exchange contracts | (12,577,000) | 42,784,000 |
Other, net | 5,685,000 | (162,000) |
Net cash flows used for investing activities | (85,183,000) | (106,223,000) |
Cash Flows From Financing Activities: | ||
Payments of short-term borrowings, net | 0 | (372,168,000) |
Proceeds from short-term borrowings, net | 80,000,000 | 686,769,000 |
Payments of long-term borrowings | (750,000,000) | 0 |
Proceeds from long-term borrowings, net | 475,550,000 | 0 |
Payments of dividends on common stock | 0 | (260,427,000) |
Proceeds from exercise of stock options | 0 | 1,714,000 |
Other, net | (3,548,000) | (4,406,000) |
Net cash flows (used for) provided by financing activities | (197,998,000) | 51,482,000 |
Effect of Currency Exchange Rate Changes on Cash | (10,825,000) | 9,700,000 |
Decrease in Cash and Equivalents | (850,615,000) | (594,136,000) |
Cash and Equivalents at Beginning of Period | 1,079,221,000 | 869,531,000 |
Cash and Equivalents at End of Period | $ 228,606,000 | $ 275,395,000 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited consolidated financial statements and related disclosures have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") applicable to interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. In the opinion of management, all adjustments, consisting of only those of a normal recurring nature, considered necessary for a fair statement of the financial position and interim results of Mattel, Inc. and its subsidiaries ("Mattel") as of and for the periods presented have been included. As Mattel’s business is seasonal, results for interim periods are not necessarily indicative of those that may be expected for a full year. Prior period amounts have been reclassified to conform to the current period presentation, as further discussed in "Note 16 to the Consolidated Financial Statements—Employee Benefit Plans" and "Note 23 to the Consolidated Financial Statements—Segment Information." The year-end balance sheet data was derived from audited financial statements; however, the accompanying interim notes to the consolidated financial statements do not include all the annual disclosures required by GAAP. The financial information included herein should be read in conjunction with Mattel’s consolidated financial statements and related notes in its 2017 Annual Report on Form 10-K. |
Accounts Receivable
Accounts Receivable | 6 Months Ended |
Jun. 30, 2018 | |
Receivables [Abstract] | |
Accounts Receivable | Accounts Receivable Accounts receivable are net of allowances for doubtful accounts of $21.0 million , $23.0 million , and $25.4 million as of June 30, 2018 , June 30, 2017 , and December 31, 2017 , respectively. As a result of the Toys "R" Us liquidation in the first quarter of 2018, Mattel reversed net sales which occurred during the first quarter of 2018 and related accounts receivable of approximately $30 million . In addition, for the three and six months ended June 30, 2018, Mattel recorded bad debt expense, net of approximately $(7) million and $50 million , respectively, related to outstanding Toys "R" Us receivables as of December 31, 2017. |
Inventories
Inventories | 6 Months Ended |
Jun. 30, 2018 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories include the following: June 30, June 30, December 31, (In thousands) Raw materials and work in process $ 130,093 $ 149,421 $ 101,690 Finished goods 585,195 786,512 499,014 $ 715,288 $ 935,933 $ 600,704 |
Property, Plant, and Equipment
Property, Plant, and Equipment | 6 Months Ended |
Jun. 30, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant, and Equipment | Property, Plant, and Equipment Property, plant, and equipment, net includes the following: June 30, June 30, December 31, (In thousands) Land $ 25,030 $ 25,195 $ 25,114 Buildings 296,672 298,665 303,495 Machinery and equipment 887,496 868,931 902,861 Software 385,284 367,981 384,568 Tools, dies, and molds 867,997 911,264 887,442 Capital leases 23,927 23,970 24,279 Leasehold improvements 241,275 280,640 213,238 2,727,681 2,776,646 2,740,997 Less: accumulated depreciation (2,007,934 ) (1,968,850 ) (1,955,712 ) $ 719,747 $ 807,796 $ 785,285 |
Goodwill
Goodwill | 6 Months Ended |
Jun. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | Goodwill 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. 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. The change in the carrying amount of goodwill by operating segment for the six months ended June 30, 2018 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. In the first quarter of 2018, Mattel sold certain assets related to its Corolle business and wrote off approximately $4 million of goodwill. December 31, Dispositions Currency June 30, (In thousands) North America $ 733,034 $ — $ (752 ) $ 732,282 International 452,152 — (1,929 ) 450,223 American Girl 211,483 (4,018 ) 106 207,571 $ 1,396,669 $ (4,018 ) $ (2,575 ) $ 1,390,076 |
Other Noncurrent Assets
Other Noncurrent Assets | 6 Months Ended |
Jun. 30, 2018 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Noncurrent Assets | Other Noncurrent Assets Other noncurrent assets include the following: June 30, June 30, December 31, (In thousands) Identifiable intangibles (net of amortization of $179.5 million, $162.3 million, and $168.8 million, respectively) $ 612,234 $ 193,793 $ 639,203 Deferred income taxes 74,992 580,113 76,750 Nonamortizable identifiable intangibles — 467,038 — Other 205,138 222,050 229,008 $ 892,364 $ 1,462,994 $ 944,961 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 the third quarter of 2017, Mattel discontinued the use of a trademark. In the fourth quarter of 2017, Mattel concluded that a triggering event had occurred related to its remaining nonamortizable intangible asset and determined that it was not impaired, but that the intangible asset was no longer nonamortizable. 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. In the second quarter of 2018, Mattel discontinued the use of certain brands and products, which resulted in $4.3 million of asset impairments. Mattel's remaining amortizable intangible assets were not impaired during the three and six months ended June 30, 2018. During the third quarter of 2017, Mattel established a valuation allowance on certain deferred tax assets, the benefits of which Mattel believes will likely not be realized. Refer to Part II, Item 8 "Financial Statements and Supplementary Data—Note 14 to the Consolidated Financial Statements—Income Taxes" in its 2017 Annual Report on Form 10-K for additional information. |
Accrued Liabilities
Accrued Liabilities | 6 Months Ended |
Jun. 30, 2018 | |
Payables and Accruals [Abstract] | |
Accrued Liabilities | Accrued Liabilities Accrued liabilities include the following: June 30, June 30, December 31, (In thousands) Advertising and promotion $ 45,864 $ 24,067 $ 165,572 Royalties 63,453 67,956 111,669 Taxes other than income taxes 27,819 35,046 74,626 Other 448,449 324,963 440,272 $ 585,585 $ 452,032 $ 792,139 |
Seasonal Financing
Seasonal Financing | 6 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
Seasonal Financing | Seasonal Financing On December 20, 2017, Mattel, Inc. and certain of its domestic subsidiaries ("U.S. Borrowers") and a Canadian subsidiary ("Canadian Borrower") entered into a syndicated facility agreement (as amended, the "Credit Agreement"), as borrowers thereunder, with Bank of America, N.A., as global administrative agent, collateral agent, Australian security trustee, and lender, and the other lenders and financial institutions party thereto, providing for $1.60 billion in aggregate principal amount of senior secured revolving credit facilities (the "senior secured revolving credit facilities"), consisting of an asset based lending facility, subject to borrowing base capacity, and a revolving credit facility secured by certain fixed assets and intellectual property of the U.S. Borrowers and certain equity interests in various subsidiaries of Mattel, subject to borrowing base capacity (the "Fixed Asset & IP Facility"). As of June 30, 2018, Mattel had outstanding borrowings under the senior secured revolving credit facilities of $80.0 million . There were no amounts outstanding as of December 31, 2017. On March 28, 2018 and March 29, 2018, Mattel, Inc. and certain of its subsidiaries entered into various foreign joinder agreements to the Credit Agreement. The foreign joinder agreements join the relevant foreign borrowers and foreign lenders to the Credit Agreement, as contemplated therein, making portions of the senior secured revolving credit facilities available to other subsidiaries of Mattel, Inc. such that, together with the initial entry into the Credit Agreement, the senior secured revolving credit facilities are available to certain subsidiaries of Mattel, Inc., in their capacity as borrowers, located in the following jurisdictions: (i) the United States (the "U.S. Borrowers"), (ii) Canada (the "Canadian Borrower"), (iii) Germany, the Netherlands and the United Kingdom (the "European (GNU) Borrowers"), (iv) Spain (the "Spanish Borrower"), (v) France (the "French Borrower"), and (vi) Australia (the "Australian Borrower"), in each case through subfacilities in each such jurisdiction (each, a "Subfacility"). Through the initial Credit Agreement and the foreign joinder agreements, certain additional domestic and foreign subsidiaries of Mattel, Inc. are also parties to the Credit Agreement as guarantors of various obligations of the borrowers under the Credit Agreement as further described below. On June 1, 2018, Mattel, Inc. entered into an amendment (the "Amendment") to the Credit Agreement. The Amendment amends certain terms of the Credit Agreement, including, but not limited to, the extension of the maturity date of the Credit Agreement (and the facilities and lending commitments thereunder) from December 20, 2020 to June 1, 2021. Borrowings under the senior secured revolving credit facilities (i) are limited by jurisdiction-specific borrowing base calculations based on the sum of specified percentages of eligible accounts receivable, eligible inventory and certain fixed assets and intellectual property, as applicable, minus the amount of any applicable reserves, and (ii) bear interest at a floating rate, which can be either, at the Borrower’s option, (a) an adjusted LIBOR rate plus an applicable margin ranging from 1.25% to 3.00% per annum or (b) an alternate base rate plus an applicable margin ranging from 0.25% to 2.00% per annum, in each case, such applicable margins to be determined based on the Borrower’s average borrowing availability remaining under the senior secured revolving credit facilities. In addition to paying interest on the outstanding principal under the senior secured revolving credit facilities, Mattel, Inc. is required to pay (i) an unused line fee per annum of the average daily unused portion of the senior secured revolving credit facilities; (ii) a letter of credit fronting fee based on a percentage of the aggregate face amount of outstanding letters of credit; and (iii) certain other customary fees and expenses of the lenders and agents. The U.S. Borrowers, as well as certain Mattel U.S. subsidiaries that are guarantors (the "U.S. Guarantors"), are guaranteeing the obligations of all Borrowers under the senior secured revolving credit facilities. Additionally, the obligations of the Canadian Borrower, the French Borrower, the Spanish Borrower, the European (GNU) Borrowers and the Australian Borrower (collectively, the "Foreign Borrowers"), are each guaranteed by the obligations of the other Foreign Borrowers, as well as additional foreign subsidiaries of Mattel, Inc. that are guarantors (the "Foreign Guarantors"). The U.S. Subfacility is secured by liens on substantially all of the U.S. Borrowers’ and the U.S. Guarantors’ accounts receivable and inventory (the "U.S. Current Assets Collateral"). The Canadian Subfacility, the French Subfacility, the Spanish Subfacility, the European (GNU) Subfacility and the Australian Subfacility are each secured by a first priority lien on (i) the accounts receivable and inventory of the applicable Foreign Borrower(s) and Foreign Guarantors under such facility, and (ii) the U.S. Current Assets Collateral. The Fixed Asset & IP Facility is secured by a first priority lien on certain owned real property in the U.S., certain U.S. trademarks and patents and 100% of the equity interests in the U.S. Borrowers (aside from Mattel) and U.S. Guarantors, as well as 65% of the voting equity interests and 100% of the non-voting equity interests in Mattel Holdings Limited. The Fixed Asset & IP Facility is also secured by 65% of the voting equity interests of such additional Foreign Borrowers and Foreign Guarantors that are directly owned by a U.S. Borrower or U.S. Guarantor. The Credit Agreement contains customary covenants, including, but not limited to, restrictions on the Borrower’s and its subsidiaries’ ability to merge and consolidate with other companies, incur indebtedness, grant liens or security interests on assets, make acquisitions, loans, advances or investments, pay dividends, sell or otherwise transfer assets outside of the ordinary course, optionally prepay or modify terms of any junior indebtedness, enter into transactions with affiliates or change their line of business. The Credit Agreement requires the maintenance of a fixed charge coverage ratio of 1.00 to 1.00 at the end of each fiscal quarter when excess availability under the senior secured revolving credit facilities is less than the greater of (x) $100 million and (y) 10% of the aggregate amount available thereunder (the "Availability Threshold") and on the last day of each subsequent fiscal quarter ending thereafter until no event of default exists and excess availability is greater than the Availability Threshold for at least 30 consecutive days. The fixed charge coverage ratio covenant was not in effect based on Mattel's excess availability under the senior secured revolving credit facilities as of June 30, 2018 . Mattel was in compliance with all covenants contained in the Credit Agreement as of June 30, 2018 . The Credit Agreement is a material agreement, and failure to comply with the covenants may result in an event of default under the terms of the senior secured revolving credit facilities. If Mattel were to default under the terms of the senior secured revolving credit facilities, its ability to meet its seasonal financing requirements could be adversely affected. |
Long-Term Debt
Long-Term Debt | 6 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt Long-term debt includes the following: June 30, June 30, December 31, (In thousands) 2010 Senior Notes due October 2020 and October 2040 $ 500,000 $ 500,000 $ 500,000 2011 Senior Notes due November 2041 300,000 300,000 300,000 2013 Senior Notes due March 2018 and March 2023 250,000 500,000 500,000 2014 Senior Notes due May 2019 — 500,000 500,000 2016 Senior Notes due August 2021 350,000 350,000 350,000 2017/2018 Senior Notes due December 2025 1,500,000 — 1,000,000 Debt issuance costs and debt discount (51,823 ) (14,307 ) (26,881 ) 2,848,177 2,135,693 3,123,119 Less: current portion — (250,000 ) (250,000 ) Total long-term debt $ 2,848,177 $ 1,885,693 $ 2,873,119 In December 2017, Mattel issued $1.00 billion aggregate principal amount of 6.75% senior unsecured notes due December 31, 2025 ("2017 Senior Notes"). The 2017 Senior Notes were issued pursuant to an indenture, dated December 20, 2017, among Mattel, the guarantors named therein, and MUFG Union Bank, N.A., as Trustee (the "Indenture"). Interest on the 2017 Senior Notes is payable semi-annually in arrears on June 30 and December 31 of each year, beginning on June 30, 2018. Mattel may redeem all or part of the 2017 Senior Notes at any time, or from time to time prior to December 31, 2020, at its option, at a redemption price equal to 100% of the principal amount, plus a "make whole" premium, plus accrued and unpaid interest on the 2017 Senior Notes being redeemed to, but excluding, the redemption date. Mattel may also redeem up to 40% of the principal amount of the 2017 Senior Notes at any time, or from time to time prior to December 31, 2020, at its option, at a redemption price equal to 106.75% of the principal amount, plus accrued and unpaid interest on the 2017 Senior Notes being redeemed to, but excluding, the redemption date, with the net cash proceeds of sales of one or more equity offerings by Mattel, or any direct or indirect parent of Mattel. Mattel may redeem all or part of the 2017 Senior Notes at any time, or from time to time on or after December 31, 2020, at its option, at a redemption price including a call premium that varies from 0% to 5.063% , depending on the year of redemption, plus accrued and unpaid interest on the 2017 Senior Notes being redeemed to, but excluding, the redemption date. In March 2018, Mattel repaid $250.0 million of its 2013 Senior Notes in connection with its scheduled maturity. In May 2018, Mattel issued $500.0 million aggregate principal amount of its 6.75% senior unsecured notes due December 31, 2025 ("2018 Senior Notes"). The 2018 Senior Notes were issued pursuant to a supplemental indenture, dated May 31, 2018 (the "Supplemental Indenture"), to the Indenture, dated December 20, 2017, among Mattel, the guarantors named therein and MUFG Union Bank, N.A., as Trustee. In June 2018, Mattel used the net proceeds from the issuance of its 2018 Senior Notes, plus cash on hand, to redeem and retire all of its 2014 Senior Notes due May 6, 2019 at a redemption price equal to the principal amount, plus accrued and unpaid interest. |
Other Noncurrent Liabilities
Other Noncurrent Liabilities | 6 Months Ended |
Jun. 30, 2018 | |
Payables and Accruals [Abstract] | |
Other Noncurrent Liabilities | Other Noncurrent Liabilities Other noncurrent liabilities include the following: June 30, June 30, December 31, (In thousands) Benefit plan liabilities $ 179,473 $ 206,200 $ 168,539 Noncurrent tax liabilities 122,425 96,083 124,330 Other 141,951 150,001 191,257 $ 443,849 $ 452,284 $ 484,126 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 6 Months Ended |
Jun. 30, 2018 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) The following tables present changes in the accumulated balances for each component of other comprehensive income (loss), including current period other comprehensive income (loss) and reclassifications out of accumulated other comprehensive income (loss): For the Three Months Ended June 30, 2018 Derivative Available-for-Sale Security Defined Benefit Currency Total (In thousands) Accumulated Other Comprehensive Income (Loss), Net of Tax, as of March 31, 2018 $ (21,986 ) $ (2,879 ) $ (141,597 ) $ (572,687 ) $ (739,149 ) Other comprehensive income (loss) before reclassifications 17,652 (2,709 ) (2,899 ) (105,727 ) (93,683 ) Amounts reclassified from accumulated other comprehensive income (loss) 4,786 — 3,968 — 8,754 Net increase (decrease) in other comprehensive income (loss) 22,438 (2,709 ) 1,069 (105,727 ) (84,929 ) Accumulated Other Comprehensive Income (Loss), Net of Tax, as of June 30, 2018 $ 452 $ (5,588 ) $ (140,528 ) $ (678,414 ) $ (824,078 ) For the Six Months Ended June 30, 2018 Derivative Available-for-Sale Security Defined Benefit Currency Total (In thousands) Accumulated Other Comprehensive Income (Loss), Net of Tax, as of December 31, 2017 $ (21,098 ) $ (2,799 ) $ (143,213 ) $ (614,676 ) $ (781,786 ) Other comprehensive income (loss) before reclassifications 12,333 (2,789 ) (3,107 ) (63,738 ) (57,301 ) Amounts reclassified from accumulated other comprehensive income (loss) 9,217 — 5,792 — 15,009 Net increase (decrease) in other comprehensive income (loss) 21,550 (2,789 ) 2,685 (63,738 ) (42,292 ) Accumulated Other Comprehensive Income (Loss), Net of Tax, as of June 30, 2018 $ 452 $ (5,588 ) $ (140,528 ) $ (678,414 ) $ (824,078 ) For the Three Months Ended June 30, 2017 Derivative Available-for-Sale Security Defined Benefit Currency Total (In thousands) Accumulated Other Comprehensive Income (Loss), Net of Tax, as of March 31, 2017 $ 2,656 $ 1,835 $ (156,649 ) $ (751,674 ) $ (903,832 ) Other comprehensive (loss) income before reclassifications (27,406 ) (2,423 ) (100 ) 51,067 21,138 Amounts reclassified from accumulated other comprehensive income (loss) (364 ) — 1,124 — 760 Net (decrease) increase in other comprehensive income (loss) (27,770 ) (2,423 ) 1,024 51,067 21,898 Accumulated Other Comprehensive Income (Loss), Net of Tax, as of June 30, 2017 $ (25,114 ) $ (588 ) $ (155,625 ) $ (700,607 ) $ (881,934 ) For the Six Months Ended June 30, 2017 Derivative Available-for-Sale Security Defined Benefit Currency Total (In thousands) Accumulated Other Comprehensive Income (Loss), Net of Tax, as of December 31, 2016 $ 17,469 $ 3,149 $ (157,704 ) $ (805,943 ) $ (943,029 ) Other comprehensive (loss) income before reclassifications (39,990 ) (3,737 ) (200 ) 105,336 61,409 Amounts reclassified from accumulated other comprehensive income (loss) (2,593 ) — 2,279 — (314 ) Net (decrease) increase in other comprehensive income (loss) (42,583 ) (3,737 ) 2,079 105,336 61,095 Accumulated Other Comprehensive Income (Loss), Net of Tax, as of June 30, 2017 $ (25,114 ) $ (588 ) $ (155,625 ) $ (700,607 ) $ (881,934 ) The following tables present the classification and amount of the reclassifications from accumulated other comprehensive income (loss) to the consolidated statements of operations: For the Three Months Ended June 30, June 30, Statements of Operations Classification (In thousands) Derivative Instruments (Loss) gain on foreign currency forward exchange contracts $ (4,767 ) $ 259 Cost of sales Tax effect of net (loss) gain (19 ) 105 Provision (benefit) for income taxes $ (4,786 ) $ 364 Net loss Defined Benefit Pension Plans Amortization of prior service credit (cost) $ 502 $ (7 ) (a) Recognized actuarial loss (2,046 ) (1,859 ) (a) Settlement loss (2,401 ) — Other non-operating income/expense (3,945 ) (1,866 ) Tax effect of net loss (23 ) 742 Provision (benefit) for income taxes $ (3,968 ) $ (1,124 ) Net loss For the Six Months Ended June 30, June 30, Statements of Operations Classification (In thousands) Derivative Instruments (Loss) gain on foreign currency forward exchange contracts $ (9,150 ) $ 2,466 Cost of sales Tax effect of net (loss) gain (67 ) 127 Provision (benefit) for income taxes $ (9,217 ) $ 2,593 Net loss Defined Benefit Pension Plans Amortization of prior service credit (cost) $ 1,003 $ (15 ) (a) Recognized actuarial loss (4,363 ) (3,716 ) (a) Settlement loss (2,443 ) — Other non-operating income/expense (5,803 ) (3,731 ) Tax effect of net loss 11 1,452 Provision (benefit) for income taxes $ (5,792 ) $ (2,279 ) Net loss ________________________________________ (a) The amortization of prior service credit (cost) and recognized actuarial loss are included in the computation of net periodic benefit cost. Refer to "Note 16 to the Consolidated Financial Statements—Employee Benefit Plans" of this Quarterly Report on Form 10-Q for additional information regarding Mattel’s net periodic benefit cost. Currency Translation Adjustments Mattel’s reporting currency is the U.S. dollar. The translation of its net investments in subsidiaries with non-U.S. 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-U.S. dollar functional currencies are translated into U.S. dollars at fiscal period-end exchange rates. Income, expense, and cash flow items are translated at weighted average exchange rates prevailing during the fiscal period. The resulting currency translation adjustments are recorded as a component of accumulated other comprehensive income (loss) within stockholders’ equity. Currency translation adjustments resulted in a net loss of $63.7 million for the six months ended June 30, 2018 , primarily due to the weakening of the Euro, Brazilian real, Russian ruble, and British pound sterling against the U.S. dollar. Currency translation adjustments resulted in a net gain of $105.3 million for the six months ended June 30, 2017 , primarily due to the strengthening of Euro, Mexican peso and British pound sterling against the U.S. dollar. |
Derivative Instruments
Derivative Instruments | 6 Months Ended |
Jun. 30, 2018 | |
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 (loss) 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 has not designated these contracts as hedging instruments, and as such, changes in fair value are recorded in the period of change in the consolidated statements of operations. As of June 30, 2018 , June 30, 2017 , and December 31, 2017 , Mattel held foreign currency forward exchange contracts with notional amounts of $992.8 million , $1.38 billion , and $987.7 million , respectively. The following tables present Mattel’s derivative assets and liabilities: Derivative Assets Balance Sheet Classification Fair Value June 30, June 30, December 31, (In thousands) Derivatives designated as hedging instruments Foreign currency forward exchange contracts Prepaid expenses and other current assets $ 7,321 $ 3,026 $ 2,175 Foreign currency forward exchange contracts Other noncurrent assets 2,041 626 115 Total derivatives designated as hedging instruments $ 9,362 $ 3,652 $ 2,290 Derivatives not designated as hedging instruments Foreign currency forward exchange contracts Prepaid expenses and other current assets $ 1,418 $ 5,054 $ 5,514 Total $ 10,780 $ 8,706 $ 7,804 Derivative Liabilities Balance Sheet Classification Fair Value June 30, June 30, December 31, (In thousands) Derivatives designated as hedging instruments Foreign currency forward exchange contracts Accrued liabilities $ 6,535 $ 19,719 $ 15,970 Foreign currency forward exchange contracts Other noncurrent liabilities 195 6,127 3,159 Total derivatives designated as hedging instruments $ 6,730 $ 25,846 $ 19,129 Derivatives not designated as hedging instruments Foreign currency forward exchange contracts Accrued liabilities $ 630 $ 772 $ 191 Total $ 7,360 $ 26,618 $ 19,320 The following tables present the classification and amount of gains and losses, net of tax, from derivatives reported in the consolidated statements of operations: For the Three Months Ended June 30, 2018 June 30, 2017 Statements of Operations Classification Amount of Gain (Loss) Recognized in OCI Amount of Gain (Loss) Reclassified from Accumulated OCI to Statements of Operations Amount of Gain (Loss) Recognized in OCI Amount of Gain (Loss) Reclassified from Accumulated OCI to Statements of Operations (In thousands) Derivatives designated as hedging instruments Foreign currency forward exchange contracts $ 17,652 $ (4,786 ) $ (27,406 ) $ 364 Cost of sales For the Six Months Ended June 30, 2018 June 30, 2017 Statements of Operations Classification Amount of Gain (Loss) Recognized in OCI Amount of Gain (Loss) Reclassified from Accumulated OCI to Statements of Operations Amount of Gain (Loss) Recognized in OCI Amount of Gain (Loss) Reclassified from Accumulated OCI to Statements of Operations (In thousands) Derivatives designated as hedging instruments Foreign currency forward exchange contracts $ 12,333 $ (9,217 ) $ (39,990 ) $ 2,593 Cost of sales The net losses of $4.8 million and $9.2 million reclassified from accumulated other comprehensive loss to the consolidated statements of operations for the three and six months ended June 30, 2018 , respectively, and the net gains of $0.4 million and $2.6 million reclassified from accumulated other comprehensive loss to the consolidated statements of operations for the three and six months ended June 30, 2017 , respectively, are offset by the changes in cash flows associated with the underlying hedged transactions. Amount of Gain (Loss) Recognized in the Statements of Operations Statements of Operations Classification For the Three Months Ended June 30, June 30, (In thousands) Derivatives not designated as hedging instruments Foreign currency forward exchange contracts $ (31,552 ) $ 25,389 Other non-operating income/expense Foreign currency forward exchange contracts (248 ) 116 Cost of sales Total $ (31,800 ) $ 25,505 Amount of Gain (Loss) Recognized in the Statements of Operations Statements of Operations Classification For the Six Months Ended June 30, June 30, (In thousands) Derivatives not designated as hedging instruments Foreign currency forward exchange contracts $ (16,864 ) $ 50,958 Other non-operating income/expense Foreign currency forward exchange contracts (248 ) 502 Cost of sales Total $ (17,112 ) $ 51,460 The net losses of $31.8 million and $17.1 million recognized in the consolidated statements of operations for the three and six months ended June 30, 2018 , respectively, and the net gains of $25.5 million and $51.5 million recognized in the consolidated statements of operations for the three and six months ended June 30, 2017 , respectively, are offset by foreign currency transaction gains and losses on the related hedged balances. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The following tables present information about Mattel’s assets and liabilities measured and reported in the financial statements at fair value 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 measured and reported at fair value on a recurring basis include the following: June 30, 2018 Level 1 Level 2 Level 3 Total (In thousands) Assets: Foreign currency forward exchange contracts (a) $ — $ 10,780 $ — $ 10,780 Available-for-sale security (b) 6,201 — — 6,201 Total assets $ 6,201 $ 10,780 $ — $ 16,981 Liabilities: Foreign currency forward exchange contracts (a) $ — $ 7,360 $ — $ 7,360 June 30, 2017 Level 1 Level 2 Level 3 Total (In thousands) Assets: Foreign currency forward exchange contracts (a) $ — $ 8,706 $ — $ 8,706 Available-for-sale security (b) 11,201 — — 11,201 Total assets $ 11,201 $ 8,706 $ — $ 19,907 Liabilities: Foreign currency forward exchange contracts (a) $ — $ 26,618 $ — $ 26,618 December 31, 2017 Level 1 Level 2 Level 3 Total (In thousands) Assets: Foreign currency forward exchange contracts (a) $ — $ 7,804 $ — $ 7,804 Available-for-sale security (b) 8,991 — — 8,991 Total assets $ 8,991 $ 7,804 $ — $ 16,795 Liabilities: Foreign currency forward exchange contracts (a) $ — $ 19,320 $ — $ 19,320 ____________________________________________ (a) The fair value of the foreign currency forward exchange contracts are based on dealer quotes of market forward rates and reflect 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 available-for-sale security is based on the quoted price on an active public exchange. 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 three and six months ended June 30, 2018 , Mattel fully impaired certain intangible assets and property, plant, and equipment of $7.1 million and $11.9 million , respectively, due to discontinued use. Other Financial Instruments Mattel’s financial instruments include cash and equivalents, accounts receivable and payable, accrued liabilities, and short-term and long-term borrowings. The fair values of these instruments approximate their carrying values because of their short-term nature. Cash is classified as Level 1 and all other financial instruments 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 $2.73 billion (compared to a carrying value of $2.90 billion ) as of June 30, 2018 , $2.20 billion (compared to a carrying value of $2.15 billion ) as of June 30, 2017 , and $3.01 billion (compared to a carrying value of $3.15 billion ) as of December 31, 2017 . 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. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2018 | |
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. Prior to June 30, 2018, certain of Mattel’s restricted stock units ("RSUs") were considered participating securities because they contained 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 three and six months ended June 30, 2018 and 2017 : For the Three Months Ended For the Six Months Ended June 30, June 30, June 30, June 30, (In thousands, except per share amounts) Basic: Net loss $ (240,931 ) $ (56,075 ) $ (552,184 ) $ (169,306 ) Less: net loss allocable to participating RSUs (a) — — — — Net loss available for basic common shares $ (240,931 ) $ (56,075 ) $ (552,184 ) $ (169,306 ) Weighted average common shares outstanding 344,584 343,116 344,507 343,020 Basic net loss per common share $ (0.70 ) $ (0.16 ) $ (1.60 ) $ (0.49 ) Diluted: Net loss $ (240,931 ) $ (56,075 ) $ (552,184 ) $ (169,306 ) Less: net loss allocable to participating RSUs (a) — — — — Net loss available for diluted common shares $ (240,931 ) $ (56,075 ) $ (552,184 ) $ (169,306 ) Weighted average common shares outstanding 344,584 343,116 344,507 343,020 Weighted average common equivalent shares arising from: Dilutive stock options and non-participating RSUs (b) — — — — Weighted average number of common and potential common shares 344,584 343,116 344,507 343,020 Diluted net loss per common share $ (0.70 ) $ (0.16 ) $ (1.60 ) $ (0.49 ) _______________________________________ (a) During the three and six months ended June 30, 2018 and 2017 , Mattel did not allocate its net loss to its participating RSUs as its participating RSUs are not obligated to share in Mattel's losses. (b) Mattel was in a net loss position during the three and six months ended June 30, 2018 and 2017 , and, accordingly, all outstanding nonqualified stock options and non-participating RSUs were excluded from the calculation of diluted earnings per common share because their effect would be antidilutive. |
Revenues
Revenues | 6 Months Ended |
Jun. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenues | Revenues Effective January 1, 2018, Mattel adopted ASU 2014-09 and its related amendments (collectively, the "new revenue standards") using the modified retrospective transition method, which was applied to all contracts not completed as of that date. Results for reporting periods beginning after January 1, 2018 are presented under the new revenue standards, while prior periods were not adjusted. The cumulative effect of the adoption of the new revenue standards on January 1, 2018 was reflected as a net reduction of approximately $29 million to the opening balance of retained earnings associated with certain licensing contracts. The adoption of the new revenue standards did not have a material impact on Mattel's consolidated balance sheets or consolidated statements of earnings as of or for the three and six months ended June 30, 2018 . Revenue Recognition and Sales Adjustments Substantially all of Mattel's revenues continue to be recognized upon shipment or upon receipt of finished goods by the customer, depending on the contract terms. Additionally, 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, which can be either contractual or discretionary in nature, are based primarily on customer purchases, customer performance of specified promotional activities, and other specified factors such as sales to consumers. Mattel bases its estimates for these programs on agreed upon customer contract terms as well as historical experience. The costs of these programs are considered variable consideration and are recorded as sales adjustments that reduce gross sales in the period the related sale is recognized. Based on Mattel's analysis of the new revenue standards, revenue recognition from the sale of finished goods to customers, which represents substantially all of Mattel's revenues, was not impacted by the adoption of the new revenue standards. Mattel also enters into symbolic and functional licensing arrangements, whereby the licensee pays Mattel royalties based on sales of licensed product, and in certain cases are subject to minimum guaranteed amounts. The timing of revenue recognition for certain of these licensing arrangements with minimum guarantees changed under the new revenue standards, which under the new revenue standards is based on the determination of whether the license of intellectual property ("IP") is symbolic or functional IP. Disaggregated Revenues For a presentation of Mattel's revenues disaggregated by segment, brand, and geography, see "Note 23 to the Consolidated Financial Statements—Segment Information." Practical Expedient Mattel applied the practical expedient prescribed in the new revenue standards and did not evaluate contracts of one year or less for the existence of a significant financing component. Multi-year contracts were not material. |
Employee Benefit Plans
Employee Benefit Plans | 6 Months Ended |
Jun. 30, 2018 | |
Retirement Benefits [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, which are more fully described in Part II, Item 8 "Financial Statements and Supplementary Data—Note 4 to the Consolidated Financial Statements–Employee Benefit Plans" in its 2017 Annual Report on Form 10-K. A summary of the components of net periodic benefit cost for Mattel’s defined benefit pension plans is as follows: For the Three Months Ended For the Six Months Ended June 30, June 30, June 30, June 30, (In thousands) Service cost $ 1,108 $ 1,077 $ 2,192 $ 2,243 Interest cost 4,555 3,571 9,197 8,891 Expected return on plan assets (5,657 ) (5,752 ) (11,331 ) (11,485 ) Amortization of prior service cost 8 7 16 15 Recognized actuarial loss 2,126 1,821 4,523 3,641 Settlement loss 2,401 — 2,443 — $ 4,541 $ 724 $ 7,040 $ 3,305 A summary of the components of net periodic benefit cost for Mattel's postretirement benefit plans is as follows: For the Three Months Ended For the Six Months Ended June 30, June 30, June 30, June 30, (In thousands) Service cost $ — $ — $ 1 $ 1 Interest cost 52 151 104 406 Amortization of prior service credit (509 ) — (1,019 ) — Recognized actuarial (gain) loss (80 ) 38 (160 ) 75 $ (537 ) $ 189 $ (1,074 ) $ 482 In accordance with ASU 2017-07, Compensation-Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost , which went into effect for interim and annual reporting periods beginning on January 1, 2018, Mattel's service cost component is recorded within operating income, presented in the same line items as other employee compensation costs arising from employee services rendered in the period, while other components of net periodic pension cost and postretirement benefit cost are recorded outside of income from operations, presented in other non-operating (income) expense, net. Prior period amounts have been retrospectively adjusted, which resulted in a reclassification of $(0.3) million and $1.1 million of (income) expense, net from other selling and administrative expenses to other non-operating (income) expense, net for the three and six months ended June 30, 2017 , respectively. During the six months ended June 30, 2018 , Mattel made cash contributions totaling approximately $ 17 million related to its defined benefit pension and postretirement benefit plans. During the remainder of 2018 , Mattel expects to make additional cash contributions of approximately $4 million . |
Share-Based Payments
Share-Based Payments | 6 Months Ended |
Jun. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Payments | Share-Based Payments Mattel has various stock compensation plans, which are more fully described in Part II, Item 8 "Financial Statements and Supplementary Data—Note 7 to the Consolidated Financial Statements—Share-Based Payments" in its 2017 Annual Report on Form 10-K. Under the Mattel, Inc. Amended and Restated 2010 Equity and Long-Term Compensation Plan, Mattel has the ability to grant nonqualified stock options, incentive stock options, stock appreciation rights, restricted stock, RSUs, performance awards, dividend equivalent rights, and shares of common stock to officers, employees, and other persons providing services to Mattel. Stock options are granted with exercise prices at the fair market value of Mattel’s common stock on the applicable grant date and expire no later than ten years from the date of grant. Both stock options and time-vesting RSUs generally provide for vesting over a period of three years from the date of grant. In April 2018, the Compensation Committee approved a new long-term incentive program for the January 1, 2018–December 31, 2020 performance cycle. As of June 30, 2018 , three long-term incentive programs were in place with the following performance cycles: (i) a January 1, 2016–December 31, 2018 performance cycle, (ii) a January 1, 2017–December 31, 2019 performance cycle, and (iii) a January 1, 2018–December 31, 2020 performance cycle. For the January 1, 2018-December 31, 2020 performance cycle, Mattel granted performance-based restricted stock units ("Performance RSUs") under the Mattel, Inc. Amended and Restated 2010 Equity and Long-Term Compensation Plan to senior executives 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) a cumulative three-year free cash flow target for the performance cycle and (ii) Mattel's total shareholder return (“TSR”) multiplier, which is based on Mattel’s three-year TSR relative to the TSR realized by companies comprised of the S&P 500 as of the first day of the 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. During the three and six months ended June 30, 2018 , Mattel recognized no compensation expense in connection with its 2018–2020 performance cycle. During the three and six months ended June 30, 2018, Mattel recognized no compensation expense related to the 2017–2019 and the 2016–2018 performance-related component and recognized minimal expense related to the 2017–2019 and the 2016–2018 market-related component. Compensation expense, included within other selling and administrative expenses in the consolidated statements of operations, related to stock options and RSUs is as follows: For the Three Months Ended For the Six Months Ended June 30, June 30, June 30, June 30, (In thousands) Stock option compensation expense $ 690 $ 2,743 $ 3,374 $ 5,816 RSU compensation expense 7,304 15,139 19,043 24,737 $ 7,994 $ 17,882 $ 22,417 $ 30,553 The decline in compensation expense for the three and six months ended June 30, 2018 was primarily attributable to forfeitures during the period. As of June 30, 2018 , total unrecognized compensation cost related to unvested share-based payments totaled $62.7 million and is expected to be recognized over a weighted-average period of 1.9 years. Mattel uses treasury shares purchased under its share repurchase program to satisfy stock option exercises and the vesting of RSUs. Cash received for stock option exercises was $0 and $1.7 million during the six months ended June 30, 2018 and 2017 , respectively. |
Other Selling and Administrativ
Other Selling and Administrative Expenses | 6 Months Ended |
Jun. 30, 2018 | |
Other Income and Expenses [Abstract] | |
Other Selling and Administrative Expenses | Other Selling and Administrative Expenses Other selling and administrative expenses include the following: For the Three Months Ended For the Six Months Ended June 30, June 30, June 30, June 30, (In thousands) Design and development $ 54,081 $ 56,684 $ 106,221 $ 108,496 Identifiable intangible asset amortization 9,532 4,412 19,730 8,601 |
Foreign Currency Transaction Ga
Foreign Currency Transaction Gains and Losses | 6 Months Ended |
Jun. 30, 2018 | |
Foreign Currency [Abstract] | |
Foreign Currency Transaction Gains and Losses | Foreign Currency Transaction Gains and Losses Currency exchange rate fluctuations 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 to which they relate in the consolidated statements of operations. For hedges of intercompany loans and advances, which do not qualify for hedge accounting treatment, the gains or losses on the hedges resulting from changes in fair value as well as the offsetting transaction gains or losses on the related hedged items, along with unhedged items, are recognized in other non-operating expense/income, net in the consolidated statements of operations. Inventory purchase and sale transactions denominated in the Euro, Chinese renminbi, Mexican peso, Brazilian real, Canadian dollar, Australian dollar, British pound sterling, and Russian ruble are the primary transactions that cause foreign currency transaction exposure for Mattel. Currency transaction gains (losses) included in the consolidated statements of operations are as follows: For the Three Months Ended For the Six Months Ended June 30, June 30, June 30, June 30, (In thousands) Operating loss $ (12,274 ) $ (6,845 ) $ (4,541 ) $ (34,994 ) Other non-operating income (expense), net 446 (6,140 ) 1,033 (6,124 ) Net transaction losses $ (11,828 ) $ (12,985 ) $ (3,508 ) $ (41,118 ) |
Restructuring Charges
Restructuring Charges | 6 Months Ended |
Jun. 30, 2018 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Charges | Restructuring Charges During the third quarter of 2017, Mattel initiated its Structural Simplification Cost Savings program, with plans to target at least $650 million in net cost savings by 2020. The major initiatives of the Structural Simplification Cost Savings program include: • Reducing manufacturing complexity, including SKU reduction, and implementing process improvement initiatives at owned and co-manufacturing facilities; • Streamlining the organizational structure and reducing headcount expense to better align with the revenue base; and • Optimizing advertising spend. In connection with the Structural Simplification Cost Savings program, Mattel recorded severance and other restructuring charges of $47.8 million and $72.7 million during the three and six months ended June 30, 2018, respectively, within other selling and administrative expenses in the consolidated statements of operations, which is included in corporate and other expense in "Note 23 to the Consolidated Financial Statements—Segment Information." To date, Mattel has recorded cumulative severance and other restructuring charges of $117.8 million and expects to incur total charges of approximately $200 million related to the Structural Simplification Cost Savings program. The following table summarizes Mattel's severance and other restructuring costs activity for the six months ended June 30, 2018 : Liability at December 31, 2017 Charges Payments/Utilization Liability at June 30, 2018 (In thousands) Severance $ 29,794 $ 46,470 $ (30,307 ) $ 45,957 Other restructuring costs 5,394 26,241 (12,223 ) 19,412 $ 35,188 $ 72,711 $ (42,530 ) $ 65,369 |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Mattel’s provision for income taxes was $6.9 million and $4.3 million for the three and six months ended June 30, 2018 , respectively, as compared to a benefit for income taxes of $17.7 million and $50.1 million for the three and six months ended June 30, 2017 , respectively. Mattel recognized a net discrete tax benefit of $2.3 million and a net discrete tax expense of $2.2 million for the three and six months ended June 30, 2018 , respectively, as compared to net discrete tax benefits of $3.2 million and $2.7 million for the three and six months ended June 30, 2017 , respectively, primarily related to reassessments of prior years' tax liabilities and income taxes recorded on a discrete basis in various jurisdictions. In the third quarter of 2017, Mattel established a valuation allowance on its U.S. deferred tax assets and continues to maintain a valuation allowance on its U.S. deferred tax assets. Therefore, Mattel’s 2018 tax expense or benefit is primarily driven by income or loss in taxable jurisdictions outside the U.S. In the normal course of business, Mattel is regularly audited by federal, state, and foreign tax authorities. Based on the current status of federal, state, and foreign audits, Mattel believes it is reasonably possible that in the next twelve months, the total unrecognized tax benefits could decrease by approximately $25 million related to the settlement of tax audits and/or the expiration of statutes of limitations. The ultimate settlement of any issue with the applicable taxing authority could have a material impact on Mattel’s consolidated financial statements. On December 22, 2017, H.R.1, also known as the Tax Cuts and Jobs Act ("Tax Act" or "U.S. Tax Reform"), was enacted. The Securities Exchange Commission has issued guidance under Staff Accounting Bulletin 118 that allows for companies to provide provisional amounts for certain income tax effects of the Tax Act for which the company can provide a reasonable estimate. The guidance also provides that a company may not have the necessary information available, prepared, or analyzed for certain income tax effects of the Tax Act, in which case the company would not be expected to provide a provisional amount for those specific items. Additionally, the guidance allows for a measurement period of up to one year after the enactment date of the Tax Act to finalize the recording of the related tax impacts. As of December 31, 2017, Mattel reasonably estimated and recorded provisional adjustments associated with the impact of the corporate tax rate change. Mattel has not made any additional measurement-period adjustments related to these items during the first six months of 2018. Mattel continues to gather additional information to complete the accounting for these items and will complete our accounting within the prescribed measurement period. Mattel has not yet been able to reasonably estimate the impact of the deemed repatriation of accumulated foreign earnings and no provisional adjustments were recorded as of June 30, 2018. Mattel is continuing to evaluate the impact of this provision of the Tax Act and will complete the accounting for this item within the prescribed measurement period. In addition, Mattel may re-evaluate the intentions related to the indefinite reinvestment assertion, as the incremental tax expense from repatriation of foreign earnings may be significantly less under the Tax Act. In January 2018, the Financial Accounting Standards Board ("FASB") issued guidance stating that a company must make an accounting policy election of either (i) treating taxes due on future U.S. inclusions in taxable income related to Global Intangible Low-Taxed Income ("GILTI") as a current-period expense when incurred (the "period cost method") or (ii) factoring such amounts into a company’s measurement of its deferred taxes (the "deferred method"). Mattel has elected the period cost method and has considered the estimated 2018 GILTI impact in its 2018 tax expense. On January 1, 2018, Mattel adopted ASU 2016-16, Intra-Entity Transfers of Assets Other Than Inventory, which required Mattel to recognize the income tax effects of intercompany sales and transfers of assets other than inventory in the period in which the transfer occurs. Previously, the income tax effect of intercompany transfers of assets was deferred until the asset was sold to an outside party or otherwise recognized (e.g., depreciated, amortized, impaired). The new guidance requires Mattel to defer only the income tax effects of intercompany transfers of inventory. A cumulative effect adjustment of approximately $9 million was recorded as an increase to beginning retained earnings in the first quarter of 2018. |
Contingencies
Contingencies | 6 Months Ended |
Jun. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Contingencies 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 . 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. On July 31, 2017, Mattel filed a motion for summary judgment on the grounds that MGA’s complaint is barred by the statute of limitations. On February 13, 2018, the Court granted Mattel's summary judgment motion. Consistent with this ruling, the Court entered judgment for Mattel on March 8, 2018. On April 24, 2018, MGA filed a Notice of Appeal of the judgment. MGA can seek to appeal such a judgment to the California Court of Appeal. Mattel does not presently believe that damages in any amount are reasonably possible. Accordingly, 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 15th 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 with the Appeals Court 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. On April 4, 2016, the Appeals Court rendered a decision denying the admissibility of Mattel’s and Yellowstone’s special appeals. On May 11, 2016, both Mattel and Yellowstone filed interlocutory appeals and are awaiting the decision. On August 31, 2017, the reporting justice for the Appeals Court denied Yellowstone’s interlocutory appeal. As to Mattel, the reporting justice reversed the fine referenced above that had been previously imposed on Mattel for filing a motion for clarification. However, the reporting justice rejected Mattel’s arguments on the merits of Yellowstone’s damages claims. On September 22, 2017, Mattel filed a further appeal to the full panel of five appellate justices to challenge the merits of Yellowstone’s damages claims. Yellowstone did not file a further appeal. In April 2018, Mattel do Brasil entered into a settlement agreement to resolve this matter for 5.0 million Brazilian real. The settlement is subject to approval by the Brazilian courts and as of June 30, 2018, Mattel has accrued a reserve of approximately $1.5 million . Securities Litigation A purported class action lawsuit is pending in the United States District Court for the Central District of California (consolidating Waterford Township Police & Fire Retirement System v. Mattel, Inc., et al., filed June 27, 2017; and Lathe v. Mattel, Inc., et al., filed July 6, 2017) against Mattel, Christopher A. Sinclair, Richard Dickson, Kevin M. Farr, and Joseph B. Johnson alleging federal securities laws violations in connection with statements allegedly made by the defendants during the period October 20, 2016 through April 20, 2017. In general, the lawsuit asserts allegations that the defendants artificially inflated Mattel’s common stock price by knowingly making materially false and misleading statements and omissions to the investing public about retail customer inventory, the alignment between point-of-sale and shipping data, and Mattel’s overall financial condition. The lawsuit alleges that the defendants’ conduct caused the plaintiff and other stockholders to purchase Mattel common stock at artificially inflated prices. On May 24, 2018, the Court granted Mattel’s motion to dismiss the class action lawsuit, and on June 25, 2018, the plaintiff filed a motion informing the Court he would not be filing an amended complaint. The plaintiff will have the opportunity to file an appeal after the Court enters judgment in favor of Mattel. In addition, a stockholder has filed a derivative action in the United States District Court for the District of Delaware (Lombardi v. Sinclair, et al., filed December 21, 2017) making allegations that are substantially identical to, or are based upon, the allegations of the class action lawsuit. The defendants in the derivative action are the same as those in the class action lawsuit plus Margaret H. Georgiadis, Michael J. Dolan, Trevor A. Edwards, Frances D. Fergusson, Ann Lewnes, Dominic Ng, Vasant M. Prabhu, Dean A. Scarborough, Dirk Van de Put, and Kathy W. Loyd. On February 26, 2018, the derivative action was stayed pending further developments in the class action litigation. The lawsuits seek unspecified compensatory damages, attorneys’ fees, expert fees, costs and/or injunctive relief. Mattel believes that the allegations in the lawsuits are without merit and intends to vigorously defend against them. A reasonable estimate of the amount of any possible loss or range of loss cannot be made at this time. |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2018 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information Mattel designs, manufactures, and markets a broad variety of toy products worldwide which are sold to its customers and directly to consumers. Mattel reorganized its brands reporting structure in the first quarter of 2018 as outlined below. Prior period amounts have been reclassified to conform to the current period presentation. Mattel’s portfolio of brands and products are classified as Power Brands, which includes Barbie, Hot Wheels, Fisher-Price and Thomas & Friends, and American Girl Brands, and Toy Box, which includes Owned Brands and Partner Brands. Mattel’s operating segments are: (i) North America, which consists of the U.S. and Canada, (ii) International, and (iii) American Girl. The North America and International segments sell products in both the Power Brands, excluding American Girl, and Toy Box 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. In the following tables, Mattel does not include sales adjustments such as trade discounts and other allowances in the calculation of segment revenues (referred to as "gross sales" and reconciled to net sales in Part I, Item 2 "Management’s Discussion and Analysis of Financial Condition and Results of Operations–Non-GAAP Financial Measures" of this Quarterly Report on Form 10-Q). Mattel records these adjustments in its financial accounting systems at the time of sale to each customer, but the adjustments are not allocated to brands or individual products. For this reason, Mattel’s chief operating decision maker 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 expense/income, net, 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, severance and restructuring, and corporate headquarters functions managed on a worldwide basis, and the impact of changes in foreign currency exchange rates on intercompany transactions. For the Three Months Ended For the Six Months Ended June 30, June 30, June 30, June 30, (In thousands) Revenues by Segment North America $ 442,883 $ 507,242 $ 791,273 $ 869,560 International 466,676 493,748 850,810 860,084 American Girl 44,561 67,516 112,048 153,500 Gross sales 954,120 1,068,506 1,754,131 1,883,144 Sales adjustments (113,372 ) (94,029 ) (205,011 ) (173,049 ) Net sales $ 840,748 $ 974,477 $ 1,549,120 $ 1,710,095 For the Three Months Ended For the Six Months Ended June 30, June 30, June 30, June 30, (In thousands) Segment (Loss) Income North America (a) $ (25,940 ) $ 42,723 $ (132,690 ) $ 23,383 International (a) (49,740 ) (8,325 ) (122,005 ) (33,167 ) American Girl (a) (16,222 ) (18,172 ) (31,065 ) (23,957 ) (91,902 ) 16,226 (285,760 ) (33,741 ) Corporate and other expense (b) (97,289 ) (65,256 ) (180,012 ) (140,902 ) Operating loss (189,191 ) (49,030 ) (465,772 ) (174,643 ) Interest expense 43,467 21,881 84,546 43,911 Interest (income) (1,699 ) (2,296 ) (4,846 ) (4,762 ) Other non-operating expense, net 3,063 5,128 2,455 5,622 Loss before income taxes $ (234,022 ) $ (73,743 ) $ (547,927 ) $ (219,414 ) __________________________________________ (a) Segment loss for the three and six months ended June 30, 2018 , includes $(7.0) million and $79.8 million , respectively, of net sales reversal and bad debt expense, net attributable to the Toys "R" Us liquidation. For the six months ended June 30, 2018 , the North America, International, and American Girl segments recorded charges of $68.5 million , $9.6 million , and $1.7 million , respectively, related to the Toys "R" Us liquidation . (b) Corporate and other expense includes severance and restructuring expenses of $47.8 million and $72.7 million for the three and six months ended June 30, 2018 , respectively, and $5.8 million and $8.8 million for the three and six months ended June 30, 2017 , respectively, and share-based compensation expense of $8.0 million and $22.4 million for the three and six months ended June 30, 2018 , respectively, and $17.9 million and $30.6 million for the three and six months ended June 30, 2017 , respectively. Segment assets are comprised of accounts receivable and inventories, net of applicable reserves and allowances. June 30, June 30, December 31, (In thousands) Assets by Segment North America $ 591,273 $ 750,027 $ 692,232 International 692,341 791,822 829,185 American Girl 78,315 168,114 100,184 1,361,929 1,709,963 1,621,601 Corporate and other 133,423 143,622 107,713 Accounts receivable, net and inventories $ 1,495,352 $ 1,853,585 $ 1,729,314 The table below presents worldwide revenues by brand category: For the Three Months Ended For the Six Months Ended June 30, June 30, June 30, June 30, (In thousands) Worldwide Revenues by Brand Category (a) Barbie $ 170,733 $ 152,175 $ 323,424 $ 275,566 Hot Wheels 167,306 138,372 312,246 264,052 Fisher-Price and Thomas & Friends 236,176 275,948 423,971 480,992 American Girl 45,218 67,292 112,645 153,105 Toy Box 334,687 434,719 581,845 709,429 Gross sales 954,120 1,068,506 1,754,131 1,883,144 Sales adjustments (113,372 ) (94,029 ) (205,011 ) (173,049 ) Net sales $ 840,748 $ 974,477 $ 1,549,120 $ 1,710,095 __________________________________________ (a) Mattel reorganized its brands reporting structure in the first quarter of 2018. Prior period amounts have been reclassified to conform to the current period presentation. Geographic Information The table below presents information by geographic area. Revenues are attributed to countries based on location of customer. For the Three Months Ended For the Six Months Ended June 30, June 30, June 30, June 30, (In thousands) Revenues North America $ 487,444 $ 574,758 $ 903,321 $ 1,023,060 International (a) Europe 171,311 178,224 339,649 334,785 Latin America 138,550 134,297 213,018 204,065 Global Emerging Markets 156,815 181,227 298,143 321,234 Total International 466,676 493,748 850,810 860,084 Gross sales 954,120 1,068,506 1,754,131 1,883,144 Sales adjustments (113,372 ) (94,029 ) (205,011 ) (173,049 ) Net sales $ 840,748 $ 974,477 $ 1,549,120 $ 1,710,095 __________________________________________ (a) Mattel reorganized its regional reporting structure in the first quarter of 2018. As a result, Global Emerging Markets, which was previously disclosed as Asia Pacific, includes Russia, Turkey, the Middle East, and Africa, which were previously included within Europe. Prior period amounts have been reclassified to conform to the current period presentation. |
New Accounting Pronouncements
New Accounting Pronouncements | 6 Months Ended |
Jun. 30, 2018 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
New Accounting Pronouncements | New Accounting Pronouncements Recently Adopted Accounting Pronouncements In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers , which supersedes the revenue recognition requirements in ASC 605, Revenue Recognition , and most industry specific guidance. The core principle of ASU 2014-09 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. Mattel adopted ASU 2014-09 and its related amendments on January 1, 2018 using the modified retrospective transition method. For additional information, see "Note 15 to the Consolidated Financial Statements — Revenues." In October 2016, the FASB issued ASU 2016-16, Income Taxes: Intra-Entity Transfers of Assets Other Than Inventory , which requires an entity to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. ASU 2016-16 became effective for interim and annual reporting periods beginning on January 1, 2018. For additional information, see "Note 21 to the Consolidated Financial Statements - Income Taxes." In March 2017, the FASB issued ASU 2017-07, Compensation - Retirement Benefits: Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost , which requires entities that sponsor defined benefit plans to (i) present service cost within operations, if such a subtotal is presented, (ii) other components of net benefit costs should be presented separately outside of income from operations, if such a subtotal is presented, and (iii) only the service cost component should be capitalized, when applicable. If a separate line item is not used, the line item in the income statement where the other components of net benefit costs are included must be disclosed. Further, gains and losses from curtailments and settlements, and the cost of certain termination benefits should be reported in the same manner as other components of net benefit cost. ASU 2017-07 became effective for interim and annual reporting periods beginning on January 1, 2018. The retrospective adoption of ASU 2017-07 in the first quarter of 2018 did not have a material effect on Mattel’s consolidated financial statements, as discussed in "Note 16 to the Consolidated Financial Statements—Employee Benefit Plans." Accounting Pronouncements Not Yet Adopted In February 2016, the FASB issued ASU 2016-02, Leases , which requires a lessee to recognize a lease asset and lease liability on its balance sheet for all leases with a term greater than 12 months. ASU 2016-02 will be effective for interim and annual reporting periods beginning on January 1, 2019. Mattel is currently evaluating the impact of the adoption of ASU 2016-02 on its operating results and financial position, which based on a preliminary assessment, is expected to have a material impact on its financial position. In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging: Targeted Improvements to Accounting for Hedging Activities , which expands the hedging strategies eligible for hedge accounting and changes both how companies assess hedge effectiveness and presentation and disclosure requirements. ASU 2017-12 will be effective for interim and annual reporting periods beginning on January 1, 2019. Early application is permitted in any interim period after issuance of the update. Mattel is currently evaluating the impact of the adoption of ASU 2017-12 on its consolidated financial statements. In February 2018, the FASB issued ASU 2018-02, Income Statement - Reporting Comprehensive Income: Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income , which permits the reclassification of disproportionate tax effects in accumulated other comprehensive income caused by the Tax Cuts and Jobs Act of 2017 (the "2017 Act") to retained earnings. ASU 2018-02 will become effective for interim and annual reporting periods beginning on January 1, 2019. Early adoption of the amendments in this Update is permitted, including adoption in any interim period, for public business entities for reporting periods for which financial statements have not yet been issued. Mattel is currently evaluating the impact of the adoption of ASU 2017-12 on its consolidated financial statements. In June 2018, the FASB issued ASU 2018-07, Compensation - Stock Compensation: Improvements to Nonemployee Share-Based Payment Accounting , which expands the scope of current stock compensation recognition standards to include share-based payment transactions for acquiring goods and services from nonemployees. ASU 2018-07 will become effective for public business entities for fiscal years beginning after December 15, 2018, including interim periods within that fiscal year. Early adoption is permitted, but no earlier than an entity's adoption date of ASU 2014-09, which Mattel adopted on January 1, 2018. Mattel is currently evaluating the impact of the adoption of ASU 2018-07 on its consolidated financial statements. |
New Accounting Pronouncements (
New Accounting Pronouncements (Policies) | 6 Months Ended |
Jun. 30, 2018 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
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. Prior to June 30, 2018, certain of Mattel’s restricted stock units ("RSUs") were considered participating securities because they contained 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. |
New Accounting Pronouncements | Recently Adopted Accounting Pronouncements In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers , which supersedes the revenue recognition requirements in ASC 605, Revenue Recognition , and most industry specific guidance. The core principle of ASU 2014-09 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. Mattel adopted ASU 2014-09 and its related amendments on January 1, 2018 using the modified retrospective transition method. For additional information, see "Note 15 to the Consolidated Financial Statements — Revenues." In October 2016, the FASB issued ASU 2016-16, Income Taxes: Intra-Entity Transfers of Assets Other Than Inventory , which requires an entity to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. ASU 2016-16 became effective for interim and annual reporting periods beginning on January 1, 2018. For additional information, see "Note 21 to the Consolidated Financial Statements - Income Taxes." In March 2017, the FASB issued ASU 2017-07, Compensation - Retirement Benefits: Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost , which requires entities that sponsor defined benefit plans to (i) present service cost within operations, if such a subtotal is presented, (ii) other components of net benefit costs should be presented separately outside of income from operations, if such a subtotal is presented, and (iii) only the service cost component should be capitalized, when applicable. If a separate line item is not used, the line item in the income statement where the other components of net benefit costs are included must be disclosed. Further, gains and losses from curtailments and settlements, and the cost of certain termination benefits should be reported in the same manner as other components of net benefit cost. ASU 2017-07 became effective for interim and annual reporting periods beginning on January 1, 2018. The retrospective adoption of ASU 2017-07 in the first quarter of 2018 did not have a material effect on Mattel’s consolidated financial statements, as discussed in "Note 16 to the Consolidated Financial Statements—Employee Benefit Plans." Accounting Pronouncements Not Yet Adopted In February 2016, the FASB issued ASU 2016-02, Leases , which requires a lessee to recognize a lease asset and lease liability on its balance sheet for all leases with a term greater than 12 months. ASU 2016-02 will be effective for interim and annual reporting periods beginning on January 1, 2019. Mattel is currently evaluating the impact of the adoption of ASU 2016-02 on its operating results and financial position, which based on a preliminary assessment, is expected to have a material impact on its financial position. In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging: Targeted Improvements to Accounting for Hedging Activities , which expands the hedging strategies eligible for hedge accounting and changes both how companies assess hedge effectiveness and presentation and disclosure requirements. ASU 2017-12 will be effective for interim and annual reporting periods beginning on January 1, 2019. Early application is permitted in any interim period after issuance of the update. Mattel is currently evaluating the impact of the adoption of ASU 2017-12 on its consolidated financial statements. In February 2018, the FASB issued ASU 2018-02, Income Statement - Reporting Comprehensive Income: Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income , which permits the reclassification of disproportionate tax effects in accumulated other comprehensive income caused by the Tax Cuts and Jobs Act of 2017 (the "2017 Act") to retained earnings. ASU 2018-02 will become effective for interim and annual reporting periods beginning on January 1, 2019. Early adoption of the amendments in this Update is permitted, including adoption in any interim period, for public business entities for reporting periods for which financial statements have not yet been issued. Mattel is currently evaluating the impact of the adoption of ASU 2017-12 on its consolidated financial statements. In June 2018, the FASB issued ASU 2018-07, Compensation - Stock Compensation: Improvements to Nonemployee Share-Based Payment Accounting , which expands the scope of current stock compensation recognition standards to include share-based payment transactions for acquiring goods and services from nonemployees. ASU 2018-07 will become effective for public business entities for fiscal years beginning after December 15, 2018, including interim periods within that fiscal year. Early adoption is permitted, but no earlier than an entity's adoption date of ASU 2014-09, which Mattel adopted on January 1, 2018. Mattel is currently evaluating the impact of the adoption of ASU 2018-07 on its consolidated financial statements. |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories include the following: June 30, June 30, December 31, (In thousands) Raw materials and work in process $ 130,093 $ 149,421 $ 101,690 Finished goods 585,195 786,512 499,014 $ 715,288 $ 935,933 $ 600,704 |
Property, Plant, and Equipment
Property, Plant, and Equipment (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant, and Equipment | Property, plant, and equipment, net includes the following: June 30, June 30, December 31, (In thousands) Land $ 25,030 $ 25,195 $ 25,114 Buildings 296,672 298,665 303,495 Machinery and equipment 887,496 868,931 902,861 Software 385,284 367,981 384,568 Tools, dies, and molds 867,997 911,264 887,442 Capital leases 23,927 23,970 24,279 Leasehold improvements 241,275 280,640 213,238 2,727,681 2,776,646 2,740,997 Less: accumulated depreciation (2,007,934 ) (1,968,850 ) (1,955,712 ) $ 719,747 $ 807,796 $ 785,285 |
Goodwill (Tables)
Goodwill (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The change in the carrying amount of goodwill by operating segment for the six months ended June 30, 2018 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. In the first quarter of 2018, Mattel sold certain assets related to its Corolle business and wrote off approximately $4 million of goodwill. December 31, Dispositions Currency June 30, (In thousands) North America $ 733,034 $ — $ (752 ) $ 732,282 International 452,152 — (1,929 ) 450,223 American Girl 211,483 (4,018 ) 106 207,571 $ 1,396,669 $ (4,018 ) $ (2,575 ) $ 1,390,076 |
Other Noncurrent Assets (Tables
Other Noncurrent Assets (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Other Noncurrent Assets | Other noncurrent assets include the following: June 30, June 30, December 31, (In thousands) Identifiable intangibles (net of amortization of $179.5 million, $162.3 million, and $168.8 million, respectively) $ 612,234 $ 193,793 $ 639,203 Deferred income taxes 74,992 580,113 76,750 Nonamortizable identifiable intangibles — 467,038 — Other 205,138 222,050 229,008 $ 892,364 $ 1,462,994 $ 944,961 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Liabilities | Accrued liabilities include the following: June 30, June 30, December 31, (In thousands) Advertising and promotion $ 45,864 $ 24,067 $ 165,572 Royalties 63,453 67,956 111,669 Taxes other than income taxes 27,819 35,046 74,626 Other 448,449 324,963 440,272 $ 585,585 $ 452,032 $ 792,139 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt | Long-term debt includes the following: June 30, June 30, December 31, (In thousands) 2010 Senior Notes due October 2020 and October 2040 $ 500,000 $ 500,000 $ 500,000 2011 Senior Notes due November 2041 300,000 300,000 300,000 2013 Senior Notes due March 2018 and March 2023 250,000 500,000 500,000 2014 Senior Notes due May 2019 — 500,000 500,000 2016 Senior Notes due August 2021 350,000 350,000 350,000 2017/2018 Senior Notes due December 2025 1,500,000 — 1,000,000 Debt issuance costs and debt discount (51,823 ) (14,307 ) (26,881 ) 2,848,177 2,135,693 3,123,119 Less: current portion — (250,000 ) (250,000 ) Total long-term debt $ 2,848,177 $ 1,885,693 $ 2,873,119 |
Other Noncurrent Liabilities (T
Other Noncurrent Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Payables and Accruals [Abstract] | |
Schedule of Other Noncurrent Liabilities | Other noncurrent liabilities include the following: June 30, June 30, December 31, (In thousands) Benefit plan liabilities $ 179,473 $ 206,200 $ 168,539 Noncurrent tax liabilities 122,425 96,083 124,330 Other 141,951 150,001 191,257 $ 443,849 $ 452,284 $ 484,126 |
Accumulated Other Comprehensi39
Accumulated Other Comprehensive Income (Loss) (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Equity [Abstract] | |
Schedule of Changes in Accumulated Other Comprehensive Income (Loss) | The following tables present changes in the accumulated balances for each component of other comprehensive income (loss), including current period other comprehensive income (loss) and reclassifications out of accumulated other comprehensive income (loss): For the Three Months Ended June 30, 2018 Derivative Available-for-Sale Security Defined Benefit Currency Total (In thousands) Accumulated Other Comprehensive Income (Loss), Net of Tax, as of March 31, 2018 $ (21,986 ) $ (2,879 ) $ (141,597 ) $ (572,687 ) $ (739,149 ) Other comprehensive income (loss) before reclassifications 17,652 (2,709 ) (2,899 ) (105,727 ) (93,683 ) Amounts reclassified from accumulated other comprehensive income (loss) 4,786 — 3,968 — 8,754 Net increase (decrease) in other comprehensive income (loss) 22,438 (2,709 ) 1,069 (105,727 ) (84,929 ) Accumulated Other Comprehensive Income (Loss), Net of Tax, as of June 30, 2018 $ 452 $ (5,588 ) $ (140,528 ) $ (678,414 ) $ (824,078 ) For the Six Months Ended June 30, 2018 Derivative Available-for-Sale Security Defined Benefit Currency Total (In thousands) Accumulated Other Comprehensive Income (Loss), Net of Tax, as of December 31, 2017 $ (21,098 ) $ (2,799 ) $ (143,213 ) $ (614,676 ) $ (781,786 ) Other comprehensive income (loss) before reclassifications 12,333 (2,789 ) (3,107 ) (63,738 ) (57,301 ) Amounts reclassified from accumulated other comprehensive income (loss) 9,217 — 5,792 — 15,009 Net increase (decrease) in other comprehensive income (loss) 21,550 (2,789 ) 2,685 (63,738 ) (42,292 ) Accumulated Other Comprehensive Income (Loss), Net of Tax, as of June 30, 2018 $ 452 $ (5,588 ) $ (140,528 ) $ (678,414 ) $ (824,078 ) For the Three Months Ended June 30, 2017 Derivative Available-for-Sale Security Defined Benefit Currency Total (In thousands) Accumulated Other Comprehensive Income (Loss), Net of Tax, as of March 31, 2017 $ 2,656 $ 1,835 $ (156,649 ) $ (751,674 ) $ (903,832 ) Other comprehensive (loss) income before reclassifications (27,406 ) (2,423 ) (100 ) 51,067 21,138 Amounts reclassified from accumulated other comprehensive income (loss) (364 ) — 1,124 — 760 Net (decrease) increase in other comprehensive income (loss) (27,770 ) (2,423 ) 1,024 51,067 21,898 Accumulated Other Comprehensive Income (Loss), Net of Tax, as of June 30, 2017 $ (25,114 ) $ (588 ) $ (155,625 ) $ (700,607 ) $ (881,934 ) For the Six Months Ended June 30, 2017 Derivative Available-for-Sale Security Defined Benefit Currency Total (In thousands) Accumulated Other Comprehensive Income (Loss), Net of Tax, as of December 31, 2016 $ 17,469 $ 3,149 $ (157,704 ) $ (805,943 ) $ (943,029 ) Other comprehensive (loss) income before reclassifications (39,990 ) (3,737 ) (200 ) 105,336 61,409 Amounts reclassified from accumulated other comprehensive income (loss) (2,593 ) — 2,279 — (314 ) Net (decrease) increase in other comprehensive income (loss) (42,583 ) (3,737 ) 2,079 105,336 61,095 Accumulated Other Comprehensive Income (Loss), Net of Tax, as of June 30, 2017 $ (25,114 ) $ (588 ) $ (155,625 ) $ (700,607 ) $ (881,934 ) |
Schedule of Consolidated Statement of Operations Line Items Affected by Reclassifications from Accumulated Other Comprehensive Income (Loss) | The following tables present the classification and amount of the reclassifications from accumulated other comprehensive income (loss) to the consolidated statements of operations: For the Three Months Ended June 30, June 30, Statements of Operations Classification (In thousands) Derivative Instruments (Loss) gain on foreign currency forward exchange contracts $ (4,767 ) $ 259 Cost of sales Tax effect of net (loss) gain (19 ) 105 Provision (benefit) for income taxes $ (4,786 ) $ 364 Net loss Defined Benefit Pension Plans Amortization of prior service credit (cost) $ 502 $ (7 ) (a) Recognized actuarial loss (2,046 ) (1,859 ) (a) Settlement loss (2,401 ) — Other non-operating income/expense (3,945 ) (1,866 ) Tax effect of net loss (23 ) 742 Provision (benefit) for income taxes $ (3,968 ) $ (1,124 ) Net loss For the Six Months Ended June 30, June 30, Statements of Operations Classification (In thousands) Derivative Instruments (Loss) gain on foreign currency forward exchange contracts $ (9,150 ) $ 2,466 Cost of sales Tax effect of net (loss) gain (67 ) 127 Provision (benefit) for income taxes $ (9,217 ) $ 2,593 Net loss Defined Benefit Pension Plans Amortization of prior service credit (cost) $ 1,003 $ (15 ) (a) Recognized actuarial loss (4,363 ) (3,716 ) (a) Settlement loss (2,443 ) — Other non-operating income/expense (5,803 ) (3,731 ) Tax effect of net loss 11 1,452 Provision (benefit) for income taxes $ (5,792 ) $ (2,279 ) Net loss ________________________________________ (a) The amortization of prior service credit (cost) and recognized actuarial loss are included in the computation of net periodic benefit cost. Refer to "Note 16 to the Consolidated Financial Statements—Employee Benefit Plans" of this Quarterly Report on Form 10-Q for additional information regarding Mattel’s net periodic benefit cost. |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Assets and Liabilities | The following tables present Mattel’s derivative assets and liabilities: Derivative Assets Balance Sheet Classification Fair Value June 30, June 30, December 31, (In thousands) Derivatives designated as hedging instruments Foreign currency forward exchange contracts Prepaid expenses and other current assets $ 7,321 $ 3,026 $ 2,175 Foreign currency forward exchange contracts Other noncurrent assets 2,041 626 115 Total derivatives designated as hedging instruments $ 9,362 $ 3,652 $ 2,290 Derivatives not designated as hedging instruments Foreign currency forward exchange contracts Prepaid expenses and other current assets $ 1,418 $ 5,054 $ 5,514 Total $ 10,780 $ 8,706 $ 7,804 Derivative Liabilities Balance Sheet Classification Fair Value June 30, June 30, December 31, (In thousands) Derivatives designated as hedging instruments Foreign currency forward exchange contracts Accrued liabilities $ 6,535 $ 19,719 $ 15,970 Foreign currency forward exchange contracts Other noncurrent liabilities 195 6,127 3,159 Total derivatives designated as hedging instruments $ 6,730 $ 25,846 $ 19,129 Derivatives not designated as hedging instruments Foreign currency forward exchange contracts Accrued liabilities $ 630 $ 772 $ 191 Total $ 7,360 $ 26,618 $ 19,320 |
Schedule of 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: For the Three Months Ended June 30, 2018 June 30, 2017 Statements of Operations Classification Amount of Gain (Loss) Recognized in OCI Amount of Gain (Loss) Reclassified from Accumulated OCI to Statements of Operations Amount of Gain (Loss) Recognized in OCI Amount of Gain (Loss) Reclassified from Accumulated OCI to Statements of Operations (In thousands) Derivatives designated as hedging instruments Foreign currency forward exchange contracts $ 17,652 $ (4,786 ) $ (27,406 ) $ 364 Cost of sales For the Six Months Ended June 30, 2018 June 30, 2017 Statements of Operations Classification Amount of Gain (Loss) Recognized in OCI Amount of Gain (Loss) Reclassified from Accumulated OCI to Statements of Operations Amount of Gain (Loss) Recognized in OCI Amount of Gain (Loss) Reclassified from Accumulated OCI to Statements of Operations (In thousands) Derivatives designated as hedging instruments Foreign currency forward exchange contracts $ 12,333 $ (9,217 ) $ (39,990 ) $ 2,593 Cost of sales |
Schedule of Derivatives Not Designated as Hedging Instruments by Classification and Amount of Gains and Losses | Amount of Gain (Loss) Recognized in the Statements of Operations Statements of Operations Classification For the Three Months Ended June 30, June 30, (In thousands) Derivatives not designated as hedging instruments Foreign currency forward exchange contracts $ (31,552 ) $ 25,389 Other non-operating income/expense Foreign currency forward exchange contracts (248 ) 116 Cost of sales Total $ (31,800 ) $ 25,505 Amount of Gain (Loss) Recognized in the Statements of Operations Statements of Operations Classification For the Six Months Ended June 30, June 30, (In thousands) Derivatives not designated as hedging instruments Foreign currency forward exchange contracts $ (16,864 ) $ 50,958 Other non-operating income/expense Foreign currency forward exchange contracts (248 ) 502 Cost of sales Total $ (17,112 ) $ 51,460 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Schedule of Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis | Mattel’s financial assets and liabilities measured and reported at fair value on a recurring basis include the following: June 30, 2018 Level 1 Level 2 Level 3 Total (In thousands) Assets: Foreign currency forward exchange contracts (a) $ — $ 10,780 $ — $ 10,780 Available-for-sale security (b) 6,201 — — 6,201 Total assets $ 6,201 $ 10,780 $ — $ 16,981 Liabilities: Foreign currency forward exchange contracts (a) $ — $ 7,360 $ — $ 7,360 June 30, 2017 Level 1 Level 2 Level 3 Total (In thousands) Assets: Foreign currency forward exchange contracts (a) $ — $ 8,706 $ — $ 8,706 Available-for-sale security (b) 11,201 — — 11,201 Total assets $ 11,201 $ 8,706 $ — $ 19,907 Liabilities: Foreign currency forward exchange contracts (a) $ — $ 26,618 $ — $ 26,618 December 31, 2017 Level 1 Level 2 Level 3 Total (In thousands) Assets: Foreign currency forward exchange contracts (a) $ — $ 7,804 $ — $ 7,804 Available-for-sale security (b) 8,991 — — 8,991 Total assets $ 8,991 $ 7,804 $ — $ 16,795 Liabilities: Foreign currency forward exchange contracts (a) $ — $ 19,320 $ — $ 19,320 ____________________________________________ (a) The fair value of the foreign currency forward exchange contracts are based on dealer quotes of market forward rates and reflect 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 available-for-sale security is based on the quoted price on an active public exchange. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings per Share | The following table reconciles earnings per common share for the three and six months ended June 30, 2018 and 2017 : For the Three Months Ended For the Six Months Ended June 30, June 30, June 30, June 30, (In thousands, except per share amounts) Basic: Net loss $ (240,931 ) $ (56,075 ) $ (552,184 ) $ (169,306 ) Less: net loss allocable to participating RSUs (a) — — — — Net loss available for basic common shares $ (240,931 ) $ (56,075 ) $ (552,184 ) $ (169,306 ) Weighted average common shares outstanding 344,584 343,116 344,507 343,020 Basic net loss per common share $ (0.70 ) $ (0.16 ) $ (1.60 ) $ (0.49 ) Diluted: Net loss $ (240,931 ) $ (56,075 ) $ (552,184 ) $ (169,306 ) Less: net loss allocable to participating RSUs (a) — — — — Net loss available for diluted common shares $ (240,931 ) $ (56,075 ) $ (552,184 ) $ (169,306 ) Weighted average common shares outstanding 344,584 343,116 344,507 343,020 Weighted average common equivalent shares arising from: Dilutive stock options and non-participating RSUs (b) — — — — Weighted average number of common and potential common shares 344,584 343,116 344,507 343,020 Diluted net loss per common share $ (0.70 ) $ (0.16 ) $ (1.60 ) $ (0.49 ) _______________________________________ (a) During the three and six months ended June 30, 2018 and 2017 , Mattel did not allocate its net loss to its participating RSUs as its participating RSUs are not obligated to share in Mattel's losses. (b) Mattel was in a net loss position during the three and six months ended June 30, 2018 and 2017 , and, accordingly, all outstanding nonqualified stock options and non-participating RSUs were excluded from the calculation of diluted earnings per common share because their effect would be antidilutive. |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Retirement Benefits [Abstract] | |
Schedule of Components of Net Periodic Benefit Cost | A summary of the components of net periodic benefit cost for Mattel’s defined benefit pension plans is as follows: For the Three Months Ended For the Six Months Ended June 30, June 30, June 30, June 30, (In thousands) Service cost $ 1,108 $ 1,077 $ 2,192 $ 2,243 Interest cost 4,555 3,571 9,197 8,891 Expected return on plan assets (5,657 ) (5,752 ) (11,331 ) (11,485 ) Amortization of prior service cost 8 7 16 15 Recognized actuarial loss 2,126 1,821 4,523 3,641 Settlement loss 2,401 — 2,443 — $ 4,541 $ 724 $ 7,040 $ 3,305 A summary of the components of net periodic benefit cost for Mattel's postretirement benefit plans is as follows: For the Three Months Ended For the Six Months Ended June 30, June 30, June 30, June 30, (In thousands) Service cost $ — $ — $ 1 $ 1 Interest cost 52 151 104 406 Amortization of prior service credit (509 ) — (1,019 ) — Recognized actuarial (gain) loss (80 ) 38 (160 ) 75 $ (537 ) $ 189 $ (1,074 ) $ 482 |
Share-Based Payments (Tables)
Share-Based Payments (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Stock Option and Restricted Stock Unit Compensation Expense | Compensation expense, included within other selling and administrative expenses in the consolidated statements of operations, related to stock options and RSUs is as follows: For the Three Months Ended For the Six Months Ended June 30, June 30, June 30, June 30, (In thousands) Stock option compensation expense $ 690 $ 2,743 $ 3,374 $ 5,816 RSU compensation expense 7,304 15,139 19,043 24,737 $ 7,994 $ 17,882 $ 22,417 $ 30,553 |
Other Selling and Administrat45
Other Selling and Administrative Expenses (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Other Income and Expenses [Abstract] | |
Schedule of Other Selling and Administrative Expenses | Other selling and administrative expenses include the following: For the Three Months Ended For the Six Months Ended June 30, June 30, June 30, June 30, (In thousands) Design and development $ 54,081 $ 56,684 $ 106,221 $ 108,496 Identifiable intangible asset amortization 9,532 4,412 19,730 8,601 |
Foreign Currency Transaction 46
Foreign Currency Transaction Gains and Losses (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Foreign Currency [Abstract] | |
Schedule of Currency Transaction Gains (Losses) | Currency transaction gains (losses) included in the consolidated statements of operations are as follows: For the Three Months Ended For the Six Months Ended June 30, June 30, June 30, June 30, (In thousands) Operating loss $ (12,274 ) $ (6,845 ) $ (4,541 ) $ (34,994 ) Other non-operating income (expense), net 446 (6,140 ) 1,033 (6,124 ) Net transaction losses $ (11,828 ) $ (12,985 ) $ (3,508 ) $ (41,118 ) |
Restructuring Charges (Tables)
Restructuring Charges (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Charges | The following table summarizes Mattel's severance and other restructuring costs activity for the six months ended June 30, 2018 : Liability at December 31, 2017 Charges Payments/Utilization Liability at June 30, 2018 (In thousands) Severance $ 29,794 $ 46,470 $ (30,307 ) $ 45,957 Other restructuring costs 5,394 26,241 (12,223 ) 19,412 $ 35,188 $ 72,711 $ (42,530 ) $ 65,369 |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Segment Reporting [Abstract] | |
Schedule of Revenue from Segment to Consolidated | The following tables present information about revenues, income, and assets by segment. In the following tables, Mattel does not include sales adjustments such as trade discounts and other allowances in the calculation of segment revenues (referred to as "gross sales" and reconciled to net sales in Part I, Item 2 "Management’s Discussion and Analysis of Financial Condition and Results of Operations–Non-GAAP Financial Measures" of this Quarterly Report on Form 10-Q). Mattel records these adjustments in its financial accounting systems at the time of sale to each customer, but the adjustments are not allocated to brands or individual products. For this reason, Mattel’s chief operating decision maker 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 expense/income, net, 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, severance and restructuring, and corporate headquarters functions managed on a worldwide basis, and the impact of changes in foreign currency exchange rates on intercompany transactions. For the Three Months Ended For the Six Months Ended June 30, June 30, June 30, June 30, (In thousands) Revenues by Segment North America $ 442,883 $ 507,242 $ 791,273 $ 869,560 International 466,676 493,748 850,810 860,084 American Girl 44,561 67,516 112,048 153,500 Gross sales 954,120 1,068,506 1,754,131 1,883,144 Sales adjustments (113,372 ) (94,029 ) (205,011 ) (173,049 ) Net sales $ 840,748 $ 974,477 $ 1,549,120 $ 1,710,095 For the Three Months Ended For the Six Months Ended June 30, June 30, June 30, June 30, (In thousands) Segment (Loss) Income North America (a) $ (25,940 ) $ 42,723 $ (132,690 ) $ 23,383 International (a) (49,740 ) (8,325 ) (122,005 ) (33,167 ) American Girl (a) (16,222 ) (18,172 ) (31,065 ) (23,957 ) (91,902 ) 16,226 (285,760 ) (33,741 ) Corporate and other expense (b) (97,289 ) (65,256 ) (180,012 ) (140,902 ) Operating loss (189,191 ) (49,030 ) (465,772 ) (174,643 ) Interest expense 43,467 21,881 84,546 43,911 Interest (income) (1,699 ) (2,296 ) (4,846 ) (4,762 ) Other non-operating expense, net 3,063 5,128 2,455 5,622 Loss before income taxes $ (234,022 ) $ (73,743 ) $ (547,927 ) $ (219,414 ) __________________________________________ (a) Segment loss for the three and six months ended June 30, 2018 , includes $(7.0) million and $79.8 million , respectively, of net sales reversal and bad debt expense, net attributable to the Toys "R" Us liquidation. For the six months ended June 30, 2018 , the North America, International, and American Girl segments recorded charges of $68.5 million , $9.6 million , and $1.7 million , respectively, related to the Toys "R" Us liquidation . (b) Corporate and other expense includes severance and restructuring expenses of $47.8 million and $72.7 million for the three and six months ended June 30, 2018 , respectively, and $5.8 million and $8.8 million for the three and six months ended June 30, 2017 , respectively, and share-based compensation expense of $8.0 million and $22.4 million for the three and six months ended June 30, 2018 , respectively, and $17.9 million and $30.6 million for the three and six months ended June 30, 2017 , respectively. |
Schedule of Segment Assets | Segment assets are comprised of accounts receivable and inventories, net of applicable reserves and allowances. June 30, June 30, December 31, (In thousands) Assets by Segment North America $ 591,273 $ 750,027 $ 692,232 International 692,341 791,822 829,185 American Girl 78,315 168,114 100,184 1,361,929 1,709,963 1,621,601 Corporate and other 133,423 143,622 107,713 Accounts receivable, net and inventories $ 1,495,352 $ 1,853,585 $ 1,729,314 |
Schedule of Worldwide Revenues by Brand Category | The table below presents worldwide revenues by brand category: For the Three Months Ended For the Six Months Ended June 30, June 30, June 30, June 30, (In thousands) Worldwide Revenues by Brand Category (a) Barbie $ 170,733 $ 152,175 $ 323,424 $ 275,566 Hot Wheels 167,306 138,372 312,246 264,052 Fisher-Price and Thomas & Friends 236,176 275,948 423,971 480,992 American Girl 45,218 67,292 112,645 153,105 Toy Box 334,687 434,719 581,845 709,429 Gross sales 954,120 1,068,506 1,754,131 1,883,144 Sales adjustments (113,372 ) (94,029 ) (205,011 ) (173,049 ) Net sales $ 840,748 $ 974,477 $ 1,549,120 $ 1,710,095 __________________________________________ (a) Mattel reorganized its brands reporting structure in the first quarter of 2018. Prior period amounts have been reclassified to conform to the current period presentation. |
Schedule of Revenue by Geographic Area | The table below presents information by geographic area. Revenues are attributed to countries based on location of customer. For the Three Months Ended For the Six Months Ended June 30, June 30, June 30, June 30, (In thousands) Revenues North America $ 487,444 $ 574,758 $ 903,321 $ 1,023,060 International (a) Europe 171,311 178,224 339,649 334,785 Latin America 138,550 134,297 213,018 204,065 Global Emerging Markets 156,815 181,227 298,143 321,234 Total International 466,676 493,748 850,810 860,084 Gross sales 954,120 1,068,506 1,754,131 1,883,144 Sales adjustments (113,372 ) (94,029 ) (205,011 ) (173,049 ) Net sales $ 840,748 $ 974,477 $ 1,549,120 $ 1,710,095 __________________________________________ (a) Mattel reorganized its regional reporting structure in the first quarter of 2018. As a result, Global Emerging Markets, which was previously disclosed as Asia Pacific, includes Russia, Turkey, the Middle East, and Africa, which were previously included within Europe. Prior period amounts have been reclassified to conform to the current period presentation. |
Accounts Receivable - Narrative
Accounts Receivable - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Accounts receivable, allowances for doubtful accounts | $ 21,000 | $ 21,000 | $ 23,000 | $ 25,400 | |
Bad debt expense | 52,935 | $ 9,934 | |||
MAT sales reversal | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Net sales reversal | $ 30,000 | ||||
Accounts receivable reversal | (7,000) | 80,000 | |||
Bad debt expense | $ (7,000) | $ 50,000 |
Inventories - Summary (Details)
Inventories - Summary (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 | Jun. 30, 2017 |
Inventory Disclosure [Abstract] | |||
Raw materials and work in process | $ 130,093 | $ 101,690 | $ 149,421 |
Finished goods | 585,195 | 499,014 | 786,512 |
Inventories | $ 715,288 | $ 600,704 | $ 935,933 |
Property, Plant, and Equipmen51
Property, Plant, and Equipment - Summary (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 | Jun. 30, 2017 |
Property, Plant and Equipment [Line Items] | |||
Property, plant, and equipment, gross | $ 2,727,681 | $ 2,740,997 | $ 2,776,646 |
Less: accumulated depreciation | (2,007,934) | (1,955,712) | (1,968,850) |
Property, plant, and equipment, net | 719,747 | 785,285 | 807,796 |
Land | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant, and equipment, gross | 25,030 | 25,114 | 25,195 |
Buildings | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant, and equipment, gross | 296,672 | 303,495 | 298,665 |
Machinery and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant, and equipment, gross | 887,496 | 902,861 | 868,931 |
Software | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant, and equipment, gross | 385,284 | 384,568 | 367,981 |
Tools, dies, and molds | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant, and equipment, gross | 867,997 | 887,442 | 911,264 |
Capital leases | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant, and equipment, gross | 23,927 | 24,279 | 23,970 |
Leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant, and equipment, gross | $ 241,275 | $ 213,238 | $ 280,640 |
Goodwill - Roll-forward of Good
Goodwill - Roll-forward of Goodwill (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2018USD ($) | |
Goodwill [Roll Forward] | |
Balance at beginning of period | $ 1,396,669 |
Dispositions | (4,018) |
Currency Exchange Rate Impact | (2,575) |
Balance at end of period | 1,390,076 |
North America | |
Goodwill [Roll Forward] | |
Balance at beginning of period | 733,034 |
Dispositions | 0 |
Currency Exchange Rate Impact | (752) |
Balance at end of period | 732,282 |
International | |
Goodwill [Roll Forward] | |
Balance at beginning of period | 452,152 |
Dispositions | 0 |
Currency Exchange Rate Impact | (1,929) |
Balance at end of period | 450,223 |
American Girl | |
Goodwill [Roll Forward] | |
Balance at beginning of period | 211,483 |
Dispositions | (4,018) |
Currency Exchange Rate Impact | 106 |
Balance at end of period | $ 207,571 |
Other Noncurrent Assets - Narra
Other Noncurrent Assets - Narrative (Details) $ in Millions | 3 Months Ended |
Jun. 30, 2018USD ($) | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Impairment loss of intangible assets | $ 4.3 |
Other Noncurrent Assets - Sched
Other Noncurrent Assets - Schedule of Other Noncurrent Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 | Jun. 30, 2017 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||
Identifiable intangibles (net of amortization of $179.5 million, $162.3 million, and $168.8 million, respectively) | $ 612,234 | $ 639,203 | $ 193,793 |
Deferred income taxes | 74,992 | 76,750 | 580,113 |
Nonamortizable identifiable intangibles | 0 | 0 | 467,038 |
Other | 205,138 | 229,008 | 222,050 |
Total other noncurrent assets | 892,364 | 944,961 | 1,462,994 |
Accumulated amortization | $ 179,500 | $ 168,800 | $ 162,300 |
Accrued Liabilities - Summary (
Accrued Liabilities - Summary (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 | Jun. 30, 2017 |
Payables and Accruals [Abstract] | |||
Advertising and promotion | $ 45,864 | $ 165,572 | $ 24,067 |
Royalties | 63,453 | 111,669 | 67,956 |
Taxes other than income taxes | 27,819 | 74,626 | 35,046 |
Other | 448,449 | 440,272 | 324,963 |
Total accrued liabilities | $ 585,585 | $ 792,139 | $ 452,032 |
Seasonal Financing - Narrative
Seasonal Financing - Narrative (Details) - Revolving Credit Facility - Credit Agreement | Dec. 20, 2017USD ($)trading_day | Jun. 30, 2018USD ($) | Dec. 31, 2017USD ($) |
Debt Instrument [Line Items] | |||
Aggregate commitment under the credit facility | $ 1,600,000,000 | ||
Outstanding borrowings | $ 80,000,000 | $ 0 | |
Equity interest subject to a lien (as a percent) | 100.00% | ||
Voting stock subject to a lien (as a percent) | 65.00% | ||
Interest coverage ratio minimum for covenant compliance | 1 | ||
Excess availability under credit facility | $ 100,000,000 | ||
Availability threshold (as a percent) | 10.00% | ||
Threshold consecutive trading days | trading_day | 30 | ||
Minimum | LIBOR | |||
Debt Instrument [Line Items] | |||
Interest rate margin for loans (as a percent) | 1.25% | ||
Minimum | Base Rate | |||
Debt Instrument [Line Items] | |||
Interest rate margin for loans (as a percent) | 0.25% | ||
Maximum | LIBOR | |||
Debt Instrument [Line Items] | |||
Interest rate margin for loans (as a percent) | 3.00% | ||
Maximum | Base Rate | |||
Debt Instrument [Line Items] | |||
Interest rate margin for loans (as a percent) | 2.00% |
Long-Term Debt - Narrative (Det
Long-Term Debt - Narrative (Details) - USD ($) | 1 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
2017/2018 Senior Notes due December 2025 | Period One | ||
Debt Instrument [Line Items] | ||
Redemption price (as a percent) | 100.00% | |
2017/2018 Senior Notes due December 2025 | Period Two | ||
Debt Instrument [Line Items] | ||
Redemption price (as a percent) | 106.75% | |
Principal amount redeemed (as a percent) | 40.00% | |
2017/2018 Senior Notes due December 2025 | Period Two | Minimum | ||
Debt Instrument [Line Items] | ||
Call premium (as a percent) | 0.00% | |
2017/2018 Senior Notes due December 2025 | Period Two | Maximum | ||
Debt Instrument [Line Items] | ||
Call premium (as a percent) | 5.063% | |
Senior Notes | 2017/2018 Senior Notes due December 2025 | ||
Debt Instrument [Line Items] | ||
Principal amount of debt instrument | $ 1,000,000,000 | |
Stated interest rate (as a percent) | 6.75% | |
Senior Notes | 2013 Senior Notes due March 2018 and March 2023 | ||
Debt Instrument [Line Items] | ||
Repayments of debt | $ 250,000,000 | |
Senior Notes | 2018 Senior Notes due December 2025 | ||
Debt Instrument [Line Items] | ||
Principal amount of debt instrument | $ 500,000,000 | |
Stated interest rate (as a percent) | 6.75% |
Long-Term Debt - Summary (Detai
Long-Term Debt - Summary (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 | Jun. 30, 2017 |
Debt Instrument [Line Items] | |||
Long-term debt | $ 2,900,000 | $ 3,150,000 | $ 2,150,000 |
Debt issuance costs and debt discount | (51,823) | (26,881) | (14,307) |
Long-term debt | 2,848,177 | 3,123,119 | 2,135,693 |
Less: current portion | 0 | (250,000) | (250,000) |
Total long-term debt | 2,848,177 | 2,873,119 | 1,885,693 |
2010 Senior Notes due October 2020 and October 2040 | Senior Notes | |||
Debt Instrument [Line Items] | |||
Long-term debt | 500,000 | 500,000 | 500,000 |
2011 Senior Notes due November 2041 | Senior Notes | |||
Debt Instrument [Line Items] | |||
Long-term debt | 300,000 | 300,000 | 300,000 |
2013 Senior Notes due March 2018 and March 2023 | Senior Notes | |||
Debt Instrument [Line Items] | |||
Long-term debt | 250,000 | 500,000 | 500,000 |
2014 Senior Notes due May 2019 | Senior Notes | |||
Debt Instrument [Line Items] | |||
Long-term debt | 0 | 500,000 | 500,000 |
2016 Senior Notes due August 2021 | Senior Notes | |||
Debt Instrument [Line Items] | |||
Long-term debt | 350,000 | 350,000 | 350,000 |
2017/2018 Senior Notes due December 2025 | Senior Notes | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 1,500,000 | $ 1,000,000 | $ 0 |
Other Noncurrent Liabilities -
Other Noncurrent Liabilities - Summary (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 | Jun. 30, 2017 |
Payables and Accruals [Abstract] | |||
Benefit plan liabilities | $ 179,473 | $ 168,539 | $ 206,200 |
Noncurrent tax liabilities | 122,425 | 124,330 | 96,083 |
Other | 141,951 | 191,257 | 150,001 |
Total other noncurrent liabilities | $ 443,849 | $ 484,126 | $ 452,284 |
Accumulated Other Comprehensi60
Accumulated Other Comprehensive Income (Loss) - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Net increase (decrease) in other comprehensive income (loss) | $ (84,929) | $ 21,898 | $ (42,292) | $ 61,095 |
Currency translation adjustments | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Net increase (decrease) in other comprehensive income (loss) | $ (105,727) | $ 51,067 | $ (63,738) | $ 105,336 |
Accumulated Other Comprehensi61
Accumulated Other Comprehensive Income (Loss) - Changes in Accumulated Balances for Each Component of Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax, at beginning of period | $ 1,257,455 | |||
Other comprehensive income (loss) before reclassifications | $ (93,683) | $ 21,138 | (57,301) | $ 61,409 |
Amounts reclassified from accumulated other comprehensive income (loss) | 8,754 | 760 | 15,009 | (314) |
Net increase (decrease) in other comprehensive income (loss) | (84,929) | 21,898 | (42,292) | 61,095 |
Accumulated Other Comprehensive Income (Loss), Net of Tax, at end of period | 663,971 | 2,067,405 | 663,971 | 2,067,405 |
Total | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax, at beginning of period | (739,149) | (903,832) | (781,786) | (943,029) |
Accumulated Other Comprehensive Income (Loss), Net of Tax, at end of period | (824,078) | (881,934) | (824,078) | (881,934) |
Derivative Instruments | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax, at beginning of period | (21,986) | 2,656 | (21,098) | 17,469 |
Other comprehensive income (loss) before reclassifications | 17,652 | (27,406) | 12,333 | (39,990) |
Amounts reclassified from accumulated other comprehensive income (loss) | 4,786 | (364) | 9,217 | (2,593) |
Net increase (decrease) in other comprehensive income (loss) | 22,438 | (27,770) | 21,550 | (42,583) |
Accumulated Other Comprehensive Income (Loss), Net of Tax, at end of period | 452 | (25,114) | 452 | (25,114) |
Available-for-Sale Security | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax, at beginning of period | (2,879) | 1,835 | (2,799) | 3,149 |
Other comprehensive income (loss) before reclassifications | (2,709) | (2,423) | (2,789) | (3,737) |
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | 0 | 0 | 0 |
Net increase (decrease) in other comprehensive income (loss) | (2,709) | (2,423) | (2,789) | (3,737) |
Accumulated Other Comprehensive Income (Loss), Net of Tax, at end of period | (5,588) | (588) | (5,588) | (588) |
Defined Benefit Pension Plans | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax, at beginning of period | (141,597) | (156,649) | (143,213) | (157,704) |
Other comprehensive income (loss) before reclassifications | (2,899) | (100) | (3,107) | (200) |
Amounts reclassified from accumulated other comprehensive income (loss) | 3,968 | 1,124 | 5,792 | 2,279 |
Net increase (decrease) in other comprehensive income (loss) | 1,069 | 1,024 | 2,685 | 2,079 |
Accumulated Other Comprehensive Income (Loss), Net of Tax, at end of period | (140,528) | (155,625) | (140,528) | (155,625) |
Currency Translation Adjustments | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax, at beginning of period | (572,687) | (751,674) | (614,676) | (805,943) |
Other comprehensive income (loss) before reclassifications | (105,727) | 51,067 | (63,738) | 105,336 |
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | 0 | 0 | 0 |
Net increase (decrease) in other comprehensive income (loss) | (105,727) | 51,067 | (63,738) | 105,336 |
Accumulated Other Comprehensive Income (Loss), Net of Tax, at end of period | $ (678,414) | $ (700,607) | $ (678,414) | $ (700,607) |
Accumulated Other Comprehensi62
Accumulated Other Comprehensive Income (Loss) - Classification and Amount of Reclassifications from Accumulated Other Comprehensive Income to Consolidated Statement of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Tax effect of net (loss) gain | $ (6,909) | $ 17,668 | $ (4,257) | $ 50,108 |
Net Loss | (240,931) | (56,075) | (552,184) | (169,306) |
Loss Before Income Taxes | (234,022) | (73,743) | (547,927) | (219,414) |
Reclassification Out of Accumulated Other Comprehensive Income (Loss) | Derivative Instruments | (Loss) gain on foreign currency forward exchange contracts | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Cost of sales | (4,767) | 259 | (9,150) | 2,466 |
Tax effect of net (loss) gain | (19) | 105 | (67) | 127 |
Net Loss | (4,786) | 364 | (9,217) | 2,593 |
Reclassification Out of Accumulated Other Comprehensive Income (Loss) | Defined Benefit Pension Plans | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Tax effect of net (loss) gain | (23) | 742 | 11 | 1,452 |
Net Loss | (3,968) | (1,124) | (5,792) | (2,279) |
Amortization of prior service credit (cost) | 502 | (7) | 1,003 | (15) |
Recognized actuarial loss | (2,046) | (1,859) | (4,363) | (3,716) |
Loss Before Income Taxes | (3,945) | (1,866) | (5,803) | (3,731) |
Other non-operating income/expense | Reclassification Out of Accumulated Other Comprehensive Income (Loss) | Defined Benefit Pension Plans | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Settlement loss | $ (2,401) | $ 0 | $ (2,443) | $ 0 |
Derivative Instruments - Narrat
Derivative Instruments - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Foreign currency forward exchange contracts | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Notional amount | $ 992,800 | $ 1,380,000 | $ 992,800 | $ 1,380,000 | $ 987,700 |
Maximum | Foreign currency forward exchange contracts | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Maximum term for foreign currency forward exchange contracts | 18 months | ||||
Derivatives not designated as hedging instruments | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Gain (loss) recognized | (31,800) | 25,505 | $ (17,112) | 51,460 | |
Cost of sales | Derivatives designated as hedging instruments | Foreign currency forward exchange contracts | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Amount of gain (loss) reclassified from accumulated OCI to statements of operations | (4,786) | 364 | (9,217) | 2,593 | |
Cost of sales | Derivatives not designated as hedging instruments | Foreign currency forward exchange contracts | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Gain (loss) recognized | $ (248) | $ 116 | $ (248) | $ 502 |
Derivative Instruments - Assets
Derivative Instruments - Assets and Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 | Jun. 30, 2017 |
Derivatives, Fair Value [Line Items] | |||
Derivative asset, fair value | $ 10,780 | $ 7,804 | $ 8,706 |
Derivative liability, fair value | 7,360 | 19,320 | 26,618 |
Derivatives designated as hedging instruments | |||
Derivatives, Fair Value [Line Items] | |||
Derivative asset, fair value | 9,362 | 2,290 | 3,652 |
Derivative liability, fair value | 6,730 | 19,129 | 25,846 |
Derivatives designated as hedging instruments | Foreign currency forward exchange contracts | Prepaid expenses and other current assets | |||
Derivatives, Fair Value [Line Items] | |||
Derivative asset, fair value | 7,321 | 2,175 | 3,026 |
Derivatives designated as hedging instruments | Foreign currency forward exchange contracts | Other noncurrent assets | |||
Derivatives, Fair Value [Line Items] | |||
Derivative asset, fair value | 2,041 | 115 | 626 |
Derivatives designated as hedging instruments | Foreign currency forward exchange contracts | Accrued liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Derivative liability, fair value | 6,535 | 15,970 | 19,719 |
Derivatives designated as hedging instruments | Foreign currency forward exchange contracts | Other noncurrent liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Derivative liability, fair value | 195 | 3,159 | 6,127 |
Derivatives not designated as hedging instruments | Foreign currency forward exchange contracts | Prepaid expenses and other current assets | |||
Derivatives, Fair Value [Line Items] | |||
Derivative asset, fair value | 1,418 | 5,514 | 5,054 |
Derivatives not designated as hedging instruments | Foreign currency forward exchange contracts | Accrued liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Derivative liability, fair value | $ 630 | $ 191 | $ 772 |
Derivative Instruments - Design
Derivative Instruments - Designated as Hedging Instruments by Classification and Amount of Gains and Losses (Details) - Derivatives designated as hedging instruments - Foreign currency forward exchange contracts - Cost of sales - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in OCI | $ 17,652 | $ (27,406) | $ 12,333 | $ (39,990) |
Amount of Gain (Loss) Reclassified from Accumulated OCI to Statements of Operations | $ (4,786) | $ 364 | $ (9,217) | $ 2,593 |
Derivative Instruments - Not De
Derivative Instruments - Not Designated as Hedging Instruments by Classification and Amount of Gains and Losses (Details) - Derivatives not designated as hedging instruments - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in the Statements of Operations | $ (31,800) | $ 25,505 | $ (17,112) | $ 51,460 |
Foreign currency forward exchange contracts | Other non-operating income/expense | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in the Statements of Operations | (31,552) | 25,389 | (16,864) | 50,958 |
Foreign currency forward exchange contracts | Cost of sales | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in the Statements of Operations | $ (248) | $ 116 | $ (248) | $ 502 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2018 | Dec. 31, 2017 | Jun. 30, 2017 | |
Fair Value Disclosures [Abstract] | ||||
Impairment charges | $ 7.1 | $ 11.9 | ||
Estimated fair value of long-term debt | 2,730 | 2,730 | $ 3,010 | $ 2,200 |
Long-term debt | $ 2,900 | $ 2,900 | $ 3,150 | $ 2,150 |
Fair Value Measurements - Finan
Fair Value Measurements - Financial Assets and Liabilities Measured and Reported at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 | Jun. 30, 2017 |
Assets: | |||
Foreign currency forward exchange contracts | $ 10,780 | $ 7,804 | $ 8,706 |
Available-for-sale security | 6,201 | 8,991 | 11,201 |
Total assets | 16,981 | 16,795 | 19,907 |
Liabilities: | |||
Foreign currency forward exchange contracts | 7,360 | 19,320 | 26,618 |
Level 1 | |||
Assets: | |||
Foreign currency forward exchange contracts | 0 | 0 | 0 |
Available-for-sale security | 6,201 | 8,991 | 11,201 |
Total assets | 6,201 | 8,991 | 11,201 |
Liabilities: | |||
Foreign currency forward exchange contracts | 0 | 0 | 0 |
Level 2 | |||
Assets: | |||
Foreign currency forward exchange contracts | 10,780 | 7,804 | 8,706 |
Available-for-sale security | 0 | 0 | 0 |
Total assets | 10,780 | 7,804 | 8,706 |
Liabilities: | |||
Foreign currency forward exchange contracts | 7,360 | 19,320 | 26,618 |
Level 3 | |||
Assets: | |||
Foreign currency forward exchange contracts | 0 | 0 | 0 |
Available-for-sale security | 0 | 0 | 0 |
Total assets | 0 | 0 | 0 |
Liabilities: | |||
Foreign currency forward exchange contracts | $ 0 | $ 0 | $ 0 |
Earnings Per Share - Summary (D
Earnings Per Share - Summary (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Basic: | ||||
Net Loss | $ (240,931) | $ (56,075) | $ (552,184) | $ (169,306) |
Less: net loss allocable to participating RSUs | 0 | 0 | 0 | 0 |
Net loss available for basic common shares | $ (240,931) | $ (56,075) | $ (552,184) | $ (169,306) |
Weighted average common shares outstanding | 344,584 | 343,116 | 344,507 | 343,020 |
Basic net loss per common share (USD per share) | $ (0.70) | $ (0.16) | $ (1.60) | $ (0.49) |
Diluted: | ||||
Net Loss | $ (240,931) | $ (56,075) | $ (552,184) | $ (169,306) |
Less: net loss allocable to participating RSUs | 0 | 0 | 0 | 0 |
Net loss available for diluted common shares | $ (240,931) | $ (56,075) | $ (552,184) | $ (169,306) |
Weighted average common shares outstanding | 344,584 | 343,116 | 344,507 | 343,020 |
Weighted average common equivalent shares arising from: | ||||
Dilutive stock options and non-participating RSUs (shares) | 0 | 0 | 0 | 0 |
Weighted average number of common and potential common shares | 344,584 | 343,116 | 344,507 | 343,020 |
Diluted net loss per common share (USD per share) | $ (0.70) | $ (0.16) | $ (1.60) | $ (0.49) |
Revenues - Narrative (Details)
Revenues - Narrative (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Jan. 01, 2018 | Dec. 31, 2017 | Jun. 30, 2017 |
Disaggregation of Revenue [Line Items] | ||||
Cumulative effect recognized on initial application of the new guidance | $ 1,608,025 | $ 2,179,358 | $ 3,114,931 | |
Difference between Revenue Guidance in Effect before and after Topic 606 | Accounting Standards Update 2014-09 | ||||
Disaggregation of Revenue [Line Items] | ||||
Cumulative effect recognized on initial application of the new guidance | $ (29,000) |
Employee Benefit Plans - Narrat
Employee Benefit Plans - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Other selling and administrative expenses | $ 360,000 | $ 353,296 | $ 784,617 | $ 684,125 |
Other non-operating expense, net | 3,063 | 5,128 | 2,455 | 5,622 |
Cash contributions made during the period | 17,000 | |||
Expected additional cash contributions | $ 4,000 | $ 4,000 | ||
Accounting Standards Update 2017-07 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Other selling and administrative expenses | 300 | (1,100) | ||
Other non-operating expense, net | $ (300) | $ 1,100 |
Employee Benefit Plans - Compon
Employee Benefit Plans - Components of Net Periodic Benefit Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Defined benefit pension plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 1,108 | $ 1,077 | $ 2,192 | $ 2,243 |
Interest cost | 4,555 | 3,571 | 9,197 | 8,891 |
Expected return on plan assets | (5,657) | (5,752) | (11,331) | (11,485) |
Amortization of prior service cost | 8 | 7 | 16 | 15 |
Recognized actuarial (gain) loss | 2,126 | 1,821 | 4,523 | 3,641 |
Settlement loss | 2,401 | 0 | 2,443 | 0 |
Net periodic benefit cost | 4,541 | 724 | 7,040 | 3,305 |
Postretirement benefit plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 0 | 0 | 1 | 1 |
Interest cost | 52 | 151 | 104 | 406 |
Amortization of prior service cost | (509) | 0 | (1,019) | 0 |
Recognized actuarial (gain) loss | (80) | 38 | (160) | 75 |
Net periodic benefit cost | $ (537) | $ 189 | $ (1,074) | $ 482 |
Share-Based Payments - Narrativ
Share-Based Payments - Narrative (Details) | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2018USD ($)program | Jun. 30, 2018USD ($)program | Jun. 30, 2017USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
General vesting period | 3 years | ||
Number of incentive programs | program | 3 | 3 | |
Total unrecognized compensation cost related to unvested share-based payments | $ 62,700,000 | $ 62,700,000 | |
Weighted-average period for unrecognized compensation cost expected to be recognized | 1 year 10 months 12 days | ||
Proceeds from exercise of stock options | $ 0 | $ 1,714,000 | |
Stock Options | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Period of stock option expiration from date of grant | 10 years | ||
Performance Cycle 2018-2020 | Performance Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation | 0 | $ 0 | |
Performance Cycle 2017-2019 | Performance Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation | 0 | 0 | |
Performance Cycle 2017-2019 | Performance Shares Market Related Component | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation | 0 | 0 | |
Performance Cycle 2016-2018 | Performance Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation | 0 | 0 | |
Performance Cycle 2016-2018 | Performance Shares Market Related Component | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation | $ 0 | $ 0 |
Share-Based Payments - Stock Op
Share-Based Payments - Stock Option and Restricted Stock Unit Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | $ 7,994 | $ 17,882 | $ 22,417 | $ 30,553 |
Stock Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | 690 | 2,743 | 3,374 | 5,816 |
Restricted Stock Units (RSUs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | $ 7,304 | $ 15,139 | $ 19,043 | $ 24,737 |
Other Selling and Administrat75
Other Selling and Administrative Expenses - Summary (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Other Income and Expenses [Abstract] | ||||
Design and development | $ 54,081 | $ 56,684 | $ 106,221 | $ 108,496 |
Identifiable intangible asset amortization | $ 9,532 | $ 4,412 | $ 19,730 | $ 8,601 |
Foreign Currency Transaction 76
Foreign Currency Transaction Gains and Losses - Summary (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Currency Transaction Gains (Losses) [Line Items] | ||||
Net transaction losses | $ (11,828) | $ (12,985) | $ (3,508) | $ (41,118) |
Operating loss | ||||
Currency Transaction Gains (Losses) [Line Items] | ||||
Net transaction losses | (12,274) | (6,845) | (4,541) | (34,994) |
Other non-operating income (expense), net | ||||
Currency Transaction Gains (Losses) [Line Items] | ||||
Net transaction losses | $ 446 | $ (6,140) | $ 1,033 | $ (6,124) |
Restructuring Charges - Narrati
Restructuring Charges - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | ||
Jun. 30, 2018 | Sep. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2018 | Dec. 31, 2019 | |
Restructuring Cost and Reserve [Line Items] | |||||
Expected savings | $ 650,000 | ||||
Charges | $ 47,800 | $ 72,711 | $ 117,800 | ||
Forecast | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Expected restructuring costs | $ 200,000 |
Restructuring Charges - Summary
Restructuring Charges - Summary (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended |
Jun. 30, 2018 | Jun. 30, 2018 | Jun. 30, 2018 | |
Restructuring Reserve [Roll Forward] | |||
Remaining liability at beginning of period | $ 35,188 | ||
Charges | $ 47,800 | 72,711 | $ 117,800 |
Payments/Utilization | (42,530) | ||
Remaining liability at end of period | 65,369 | 65,369 | 65,369 |
Severance | |||
Restructuring Reserve [Roll Forward] | |||
Remaining liability at beginning of period | 29,794 | ||
Charges | 46,470 | ||
Payments/Utilization | (30,307) | ||
Remaining liability at end of period | 45,957 | 45,957 | 45,957 |
Other restructuring costs | |||
Restructuring Reserve [Roll Forward] | |||
Remaining liability at beginning of period | 5,394 | ||
Charges | 26,241 | ||
Payments/Utilization | (12,223) | ||
Remaining liability at end of period | $ 19,412 | $ 19,412 | $ 19,412 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Jan. 01, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | ||||||
Provision for (benefit from) income taxes | $ 6,909 | $ (17,668) | $ 4,257 | $ (50,108) | ||
Net discrete tax (expense) benefit | 2,300 | 3,200 | (2,200) | 2,700 | ||
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 | 25,000 | 25,000 | ||||
Income Tax Contingency [Line Items] | ||||||
Cumulative effect recognized on initial application of the new guidance | $ 1,608,025 | $ 3,114,931 | $ 1,608,025 | $ 3,114,931 | $ 2,179,358 | |
Accounting Standards Update 2016-16 | ||||||
Income Tax Contingency [Line Items] | ||||||
Cumulative effect recognized on initial application of the new guidance | $ 9,000 |
Contingencies - Narrative (Deta
Contingencies - Narrative (Details) R$ in Millions | Apr. 26, 2015 | Jan. 13, 2014USD ($) | Dec. 23, 2013USD ($) | Dec. 21, 2013USD ($) | Jan. 24, 2013USD ($) | Aug. 11, 2011USD ($) | Apr. 30, 2018BRL (R$) | Aug. 31, 2011USD ($) | Apr. 30, 2011USD ($)trade_secret | Jan. 31, 2010USD ($) | Jun. 30, 2006Case | Apr. 30, 1999USD ($) | Jun. 30, 2018USD ($) | Nov. 11, 2014USD ($) | Jul. 26, 2013USD ($) | Dec. 31, 2012USD ($) | Apr. 27, 2009USD ($) | Jul. 17, 2008USD ($) |
MGA | ||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||
Number of cases combined | Case | 3 | |||||||||||||||||
Historical jury verdict | $ 100,000,000 | $ 100,000,000 | ||||||||||||||||
Number of claimed trade secrets | trade_secret | 26 | |||||||||||||||||
Compensatory damages awarded by jury | $ 88,500,000 | |||||||||||||||||
Number of other claimed trade secrets | trade_secret | 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 | |||||||||||||||||
Accrued litigation liability | $ 0 | |||||||||||||||||
Yellowstone | ||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||
Accrued litigation liability | $ 1,500,000 | |||||||||||||||||
Alleged loss of profits | $ 1,000,000 | |||||||||||||||||
Unpaid accounts receivable | 4,000,000 | |||||||||||||||||
Alleged business investments | 3,000,000 | |||||||||||||||||
Initial estimate of loss of profits | $ 1,000,000 | |||||||||||||||||
Court awarded damages from counterclaim | $ 4,000,000 | |||||||||||||||||
Damages awarded, including attorney fees, inflation and interest | $ 17,000,000 | |||||||||||||||||
Counter claim awarded, including inflation | $ 7,500,000 | $ 7,500,000 | ||||||||||||||||
Damages award including inflation and interest | $ 14,500,000 | |||||||||||||||||
Fine on claims (as a percent) | 1.00% | |||||||||||||||||
Settlement agreement amount | R$ | R$ 5.0 | |||||||||||||||||
Minimum | MGA | ||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||
Alleged trade secrets damages claimed (more than) | $ 1,000,000,000 |
Segment Information - Revenues
Segment Information - Revenues and Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Segment Reporting Information [Line Items] | ||||
Revenues | $ 840,748 | $ 974,477 | $ 1,549,120 | $ 1,710,095 |
Operating loss | (189,191) | (49,030) | (465,772) | (174,643) |
Interest expense | 43,467 | 21,881 | 84,546 | 43,911 |
Interest (income) | (1,699) | (2,296) | (4,846) | (4,762) |
Other non-operating expense, net | 3,063 | 5,128 | 2,455 | 5,622 |
Loss Before Income Taxes | (234,022) | (73,743) | (547,927) | (219,414) |
Net sales reversal and bad debt expense | (7,000) | 79,800 | ||
Share-based compensation expense | 22,417 | 30,553 | ||
Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 954,120 | 1,068,506 | 1,754,131 | 1,883,144 |
Operating loss | (91,902) | 16,226 | (285,760) | (33,741) |
Operating Segments | North America | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 442,883 | 507,242 | 791,273 | 869,560 |
Operating loss | (25,940) | 42,723 | (132,690) | 23,383 |
Net sales reversal and bad debt expense | 68,500 | |||
Operating Segments | International | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 466,676 | 493,748 | 850,810 | 860,084 |
Operating loss | (49,740) | (8,325) | (122,005) | (33,167) |
Net sales reversal and bad debt expense | 9,600 | |||
Operating Segments | American Girl | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 44,561 | 67,516 | 112,048 | 153,500 |
Operating loss | (16,222) | (18,172) | (31,065) | (23,957) |
Net sales reversal and bad debt expense | 1,700 | |||
Corporate and Other | ||||
Segment Reporting Information [Line Items] | ||||
Operating loss | (97,289) | (65,256) | (180,012) | (140,902) |
Severance and other termination-related costs | 47,800 | 5,800 | 72,700 | 8,800 |
Share-based compensation expense | 8,000 | 17,900 | 22,400 | 30,600 |
Segment Reconciling Items | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | (113,372) | (94,029) | (205,011) | (173,049) |
Interest expense | 43,467 | 21,881 | 84,546 | 43,911 |
Interest (income) | (1,699) | (2,296) | (4,846) | (4,762) |
Other non-operating expense, net | $ 3,063 | $ 5,128 | $ 2,455 | $ 5,622 |
Segment Information - Assets (D
Segment Information - Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 | Jun. 30, 2017 |
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Accounts receivable, net and inventories | $ 1,495,352 | $ 1,729,314 | $ 1,853,585 |
Operating Segments | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Accounts receivable, net and inventories | 1,361,929 | 1,621,601 | 1,709,963 |
Operating Segments | North America | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Accounts receivable, net and inventories | 591,273 | 692,232 | 750,027 |
Operating Segments | International | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Accounts receivable, net and inventories | 692,341 | 829,185 | 791,822 |
Operating Segments | American Girl | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Accounts receivable, net and inventories | 78,315 | 100,184 | 168,114 |
Corporate and Other | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Accounts receivable, net and inventories | $ 133,423 | $ 107,713 | $ 143,622 |
Segment Information - Worldwide
Segment Information - Worldwide Revenues by Brand Category (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | $ 840,748 | $ 974,477 | $ 1,549,120 | $ 1,710,095 |
Operating Segments | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 954,120 | 1,068,506 | 1,754,131 | 1,883,144 |
Operating Segments | Barbie | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 170,733 | 152,175 | 323,424 | 275,566 |
Operating Segments | Hot Wheels | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 167,306 | 138,372 | 312,246 | 264,052 |
Operating Segments | Fisher-Price and Thomas & Friends | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 236,176 | 275,948 | 423,971 | 480,992 |
Operating Segments | American Girl | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 45,218 | 67,292 | 112,645 | 153,105 |
Operating Segments | Toy Box | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 334,687 | 434,719 | 581,845 | 709,429 |
Operating Segments | Product | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 954,120 | 1,068,506 | 1,754,131 | 1,883,144 |
Segment Reconciling Items | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | $ (113,372) | $ (94,029) | $ (205,011) | $ (173,049) |
Segment Information - Revenue b
Segment Information - Revenue by Geographic Area (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Segment Reporting Information [Line Items] | ||||
Revenues | $ 840,748 | $ 974,477 | $ 1,549,120 | $ 1,710,095 |
Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 954,120 | 1,068,506 | 1,754,131 | 1,883,144 |
Operating Segments | North America | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 487,444 | 574,758 | 903,321 | 1,023,060 |
Operating Segments | International | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 466,676 | 493,748 | 850,810 | 860,084 |
Operating Segments | International | Europe | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 171,311 | 178,224 | 339,649 | 334,785 |
Operating Segments | International | Latin America | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 138,550 | 134,297 | 213,018 | 204,065 |
Operating Segments | International | Global Emerging Markets | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 156,815 | 181,227 | 298,143 | 321,234 |
Segment Reconciling Items | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | $ (113,372) | $ (94,029) | $ (205,011) | $ (173,049) |