Cover
Cover - shares | 9 Months Ended | |
Sep. 30, 2020 | Oct. 16, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document period end date | Sep. 30, 2020 | |
Document Transition Report | false | |
Entity File Number | 001-05647 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 95-1567322 | |
Entity Address, Address Line One | 333 Continental Blvd. | |
Entity Address, City or Town | El Segundo, | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 90245-5012 | |
City Area Code | 310 | |
Local Phone Number | 252-2000 | |
Title of 12(b) Security | Common stock, $1.00 per share | |
Trading Symbol | MAT | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Small Business | false | |
Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 348,040,304 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
Entity Registrant Name | MATTEL INC /DE/ | |
Entity Central Index Key | 0000063276 | |
Current Fiscal Year End Date | --12-31 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Sep. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2019 |
Current Assets | |||
Cash and equivalents | $ 452,167,000 | $ 630,028,000 | $ 218,298,000 |
Accounts receivable, net of allowances for credit losses of $18.5 million, $22.4 million, and $18.5 million, respectively | 1,326,128,000 | 936,359,000 | 1,291,255,000 |
Inventories | 663,639,000 | 495,504,000 | 701,567,000 |
Prepaid expenses and other current assets | 157,929,000 | 186,083,000 | 225,877,000 |
Total current assets | 2,599,863,000 | 2,247,974,000 | 2,436,997,000 |
Noncurrent Assets | |||
Property, plant, and equipment, net | 497,437,000 | 550,139,000 | 572,269,000 |
Right-of-use assets, net | 291,097,000 | 303,187,000 | 306,223,000 |
Goodwill | 1,387,260,000 | 1,390,714,000 | 1,382,588,000 |
Other noncurrent assets | 828,438,000 | 833,212,000 | 829,504,000 |
Total Assets | 5,604,095,000 | 5,325,226,000 | 5,527,581,000 |
Current Liabilities | |||
Short-term borrowings | 400,000,000 | 0 | 230,000,000 |
Accounts payable | 497,379,000 | 459,357,000 | 512,491,000 |
Accrued liabilities | 739,790,000 | 769,513,000 | 722,164,000 |
Income taxes payable | 21,252,000 | 48,037,000 | 48,795,000 |
Total current liabilities | 1,658,421,000 | 1,276,907,000 | 1,513,450,000 |
Noncurrent Liabilities | |||
Long-term debt | 2,852,751,000 | 2,846,751,000 | 2,856,773,000 |
Noncurrent lease liabilities | 251,957,000 | 270,853,000 | 273,906,000 |
Other noncurrent liabilities | 436,459,000 | 439,001,000 | 419,696,000 |
Total noncurrent liabilities | 3,541,167,000 | 3,556,605,000 | 3,550,375,000 |
Stockholders' Equity | |||
Common stock $1.00 par value, 1.0 billion shares authorized; 441.4 million shares issued | 441,369,000 | 441,369,000 | 441,369,000 |
Additional paid-in capital | 1,823,742,000 | 1,825,569,000 | 1,811,214,000 |
Treasury stock at cost: 93.3 million shares, 94.7 million shares, and 94.6 million shares, respectively | (2,283,992,000) | (2,318,921,000) | (2,321,012,000) |
Retained earnings | 1,409,262,000 | 1,413,181,000 | 1,413,006,000 |
Accumulated other comprehensive loss | (985,874,000) | (869,484,000) | (880,821,000) |
Total stockholders' equity | 404,507,000 | 491,714,000 | 463,756,000 |
Total Liabilities and Stockholders' Equity | $ 5,604,095,000 | $ 5,325,226,000 | $ 5,527,581,000 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2019 |
Statement of Financial Position [Abstract] | |||
Accounts receivable, allowances for credit losses | $ 18.5 | $ 18.5 | $ 22.4 |
Common stock, par value (USD per share) | $ 1 | $ 1 | $ 1 |
Common stock authorized (in shares) | 1,000,000,000 | 1,000,000,000 | 1,000,000,000 |
Common stock issued (in shares) | 441,400,000 | 441,400,000 | 441,400,000 |
Treasury stock (in shares) | 93,300,000 | 94,600,000 | 94,700,000 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Income Statement [Abstract] | ||||
Net Sales | $ 1,631,691 | $ 1,481,557 | $ 2,957,897 | $ 3,030,866 |
Cost of sales | 799,307 | 795,130 | 1,549,482 | 1,763,265 |
Gross Profit | 832,384 | 686,427 | 1,408,415 | 1,267,601 |
Advertising and promotion expenses | 102,527 | 170,379 | 238,981 | 324,333 |
Other selling and administrative expenses | 345,700 | 365,961 | 981,229 | 971,608 |
Operating Income (Loss) | 384,157 | 150,087 | 188,205 | (28,340) |
Interest expense | 50,415 | 47,689 | 149,010 | 140,881 |
Interest (income) | (455) | (821) | (3,564) | (4,625) |
Other non-operating (income) expense, net | (3,877) | 1,264 | (133) | 2,874 |
Income (Loss) Before Income Taxes | 338,074 | 101,955 | 42,892 | (167,470) |
Provision for income taxes | 22,080 | 31,359 | 46,811 | 46,217 |
Net Income (Loss) | $ 315,994 | $ 70,596 | $ (3,919) | $ (213,687) |
Net Income (Loss) Per Common Share - Basic (USD per share) | $ 0.91 | $ 0.20 | $ (0.01) | $ (0.62) |
Weighted average number of common shares (in shares) | 347,628 | 346,698 | 347,206 | 346,210 |
Net Income (Loss) Per Common Share - Diluted (USD per share) | $ 0.91 | $ 0.20 | $ (0.01) | $ (0.62) |
Weighted average number of common and potential common shares (in shares) | 348,714 | 348,487 | 347,206 | 346,210 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Statement of Comprehensive Income [Abstract] | ||||
Net Income (Loss) | $ 315,994 | $ 70,596 | $ (3,919) | $ (213,687) |
Other Comprehensive Loss, Net of Tax | ||||
Currency translation adjustments | 13,032 | (46,722) | (105,759) | (33,759) |
Employee benefit plan adjustments | 1,291 | 883 | 4,869 | 1,730 |
Net unrealized gains (losses) on available-for-sale security | 178 | (1,922) | 293 | (1,989) |
Net unrealized (losses) gains on derivative instruments: | ||||
Unrealized holding (losses) gains | (15,709) | 12,996 | (1,815) | 22,068 |
Amounts reclassified from accumulated other comprehensive loss | (7,069) | (6,394) | (13,978) | (9,645) |
Net unrealized (losses) gains on derivative instruments | (22,778) | 6,602 | (15,793) | 12,423 |
Other Comprehensive Loss, Net of Tax | (8,277) | (41,159) | (116,390) | (21,595) |
Comprehensive Income (Loss) | $ 307,717 | $ 29,437 | $ (120,309) | $ (235,282) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Cash Flows From Operating Activities | ||
Net loss | $ (3,919) | $ (213,687) |
Adjustments to reconcile net loss to net cash flows used for operating activities: | ||
Depreciation | 120,073 | 156,252 |
Amortization | 29,465 | 30,162 |
Asset impairments | 8,550 | 9,344 |
Share-based compensation | 39,946 | 39,140 |
Bad debt expense | 7,822 | 2,869 |
Inventory obsolescence | 31,068 | 56,913 |
Deferred income taxes | 8,777 | (13,424) |
Changes in assets and liabilities: | ||
Accounts receivable | (429,584) | (337,530) |
Inventories | (211,149) | (229,524) |
Prepaid expenses and other current assets | 18,979 | 14,703 |
Accounts payable, accrued liabilities, and income taxes payable | (40,082) | (29,026) |
Other, net | (13,923) | 147 |
Net cash flows used for operating activities | (433,977) | (513,661) |
Cash Flows From Investing Activities | ||
Purchases of tools, dies, and molds | (41,447) | (36,715) |
Purchases of other property, plant, and equipment | (49,016) | (38,962) |
Payments for foreign currency forward exchange contracts, net | (26,982) | (3,394) |
Other, net | 2,283 | 702 |
Net cash flows used for investing activities | (115,162) | (78,369) |
Cash Flows From Financing Activities | ||
Proceeds from short-term borrowings, net | 400,000 | 225,824 |
Other, net | (6,580) | (7,523) |
Net cash flows provided by financing activities | 393,420 | 218,301 |
Effect of Currency Exchange Rate Changes on Cash | (22,142) | (2,454) |
Decrease in Cash and Equivalents | (177,861) | (376,183) |
Cash and Equivalents at Beginning of Period | 630,028 | 594,481 |
Cash and Equivalents at End of Period | $ 452,167 | $ 218,298 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Treasury Stock | Retained Earnings | Accumulated Other Comprehensive Loss |
Beginning balance at Dec. 31, 2018 | $ 666,901 | $ 441,369 | $ 1,812,682 | $ (2,354,617) | $ 1,626,693 | $ (859,226) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net (loss) income | (176,296) | (176,296) | ||||
Other comprehensive (loss) income, net of tax | 21,292 | 21,292 | ||||
Issuance of treasury stock for restricted stock units vesting | (387) | (1,829) | 1,442 | |||
Share-based compensation | 11,865 | 11,865 | ||||
Ending balance at Mar. 31, 2019 | 523,375 | 441,369 | 1,822,718 | (2,353,175) | 1,450,397 | (837,934) |
Beginning balance at Dec. 31, 2018 | 666,901 | 441,369 | 1,812,682 | (2,354,617) | 1,626,693 | (859,226) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net (loss) income | (213,687) | |||||
Other comprehensive (loss) income, net of tax | (21,595) | |||||
Ending balance at Sep. 30, 2019 | 463,756 | 441,369 | 1,811,214 | (2,321,012) | 1,413,006 | (880,821) |
Beginning balance at Mar. 31, 2019 | 523,375 | 441,369 | 1,822,718 | (2,353,175) | 1,450,397 | (837,934) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net (loss) income | (107,987) | (107,987) | ||||
Other comprehensive (loss) income, net of tax | (1,728) | (1,728) | ||||
Issuance of treasury stock for restricted stock units vesting | (35) | (3,060) | 3,025 | |||
Deferred compensation | 125 | (151) | 276 | |||
Share-based compensation | 12,445 | 12,445 | ||||
Ending balance at Jun. 30, 2019 | 426,195 | 441,369 | 1,831,952 | (2,349,874) | 1,342,410 | (839,662) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net (loss) income | 70,596 | 70,596 | ||||
Other comprehensive (loss) income, net of tax | (41,159) | (41,159) | ||||
Issuance of treasury stock for restricted stock units vesting | (6,707) | (35,569) | 28,862 | |||
Share-based compensation | 14,831 | 14,831 | ||||
Ending balance at Sep. 30, 2019 | 463,756 | 441,369 | 1,811,214 | (2,321,012) | 1,413,006 | (880,821) |
Beginning balance at Dec. 31, 2019 | 491,714 | 441,369 | 1,825,569 | (2,318,921) | 1,413,181 | (869,484) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net (loss) income | (210,741) | (210,741) | ||||
Other comprehensive (loss) income, net of tax | (136,399) | (136,399) | ||||
Issuance of treasury stock for restricted stock units vesting | (966) | (3,777) | 2,811 | |||
Share-based compensation | 14,275 | 14,275 | ||||
Ending balance at Mar. 31, 2020 | 157,883 | 441,369 | 1,836,067 | (2,316,110) | 1,202,440 | (1,005,883) |
Beginning balance at Dec. 31, 2019 | 491,714 | 441,369 | 1,825,569 | (2,318,921) | 1,413,181 | (869,484) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net (loss) income | (3,919) | |||||
Other comprehensive (loss) income, net of tax | (116,390) | |||||
Ending balance at Sep. 30, 2020 | 404,507 | 441,369 | 1,823,742 | (2,283,992) | 1,409,262 | (985,874) |
Beginning balance at Mar. 31, 2020 | 157,883 | 441,369 | 1,836,067 | (2,316,110) | 1,202,440 | (1,005,883) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net (loss) income | (109,172) | (109,172) | ||||
Other comprehensive (loss) income, net of tax | 28,286 | 28,286 | ||||
Issuance of treasury stock for restricted stock units vesting | (111) | (944) | 833 | |||
Deferred compensation | 124 | (186) | 310 | |||
Share-based compensation | 9,138 | 9,138 | ||||
Ending balance at Jun. 30, 2020 | 86,148 | 441,369 | 1,844,075 | (2,314,967) | 1,093,268 | (977,597) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net (loss) income | 315,994 | 315,994 | ||||
Other comprehensive (loss) income, net of tax | (8,277) | (8,277) | ||||
Issuance of treasury stock for restricted stock units vesting | (5,890) | (36,865) | 30,975 | |||
Share-based compensation | 16,532 | 16,532 | ||||
Ending balance at Sep. 30, 2020 | $ 404,507 | $ 441,369 | $ 1,823,742 | $ (2,283,992) | $ 1,409,262 | $ (985,874) |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2020 | |
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. The December 31, 2019 balance sheet data was derived from audited financial statements; however, the accompanying interim notes to the consolidated financial statements do not include all of the annual disclosures required by GAAP. As Mattel's business is seasonal, results for interim periods are not necessarily indicative of those that may be expected for a full year. The financial information included herein should be read in conjunction with Mattel's consolidated financial statements and related notes in the 2019 Annual Report on Form 10-K. |
Accounts Receivable
Accounts Receivable | 9 Months Ended |
Sep. 30, 2020 | |
Receivables [Abstract] | |
Accounts Receivable | Accounts Receivable Mattel estimates current expected credit losses based on collection history and management’s assessment of the current economic trends, business environment, customers’ financial condition, accounts receivable aging, and customer disputes that may impact the level of future credit losses. Accounts receivable are net of allowances for credit losses of $18.5 million, $22.4 million, and $18.5 million as of September 30, 2020, September 30, 2019, and December 31, 2019, respectively. |
Inventories
Inventories | 9 Months Ended |
Sep. 30, 2020 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories include the following: September 30, September 30, December 31, (In thousands) Raw materials and work in process $ 113,248 $ 107,562 $ 103,123 Finished goods 550,391 594,005 392,381 $ 663,639 $ 701,567 $ 495,504 |
Property, Plant, and Equipment
Property, Plant, and Equipment | 9 Months Ended |
Sep. 30, 2020 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant, and Equipment | Property, Plant, and Equipment Property, plant, and equipment, net includes the following: September 30, September 30, December 31, (In thousands) Land $ 24,906 $ 25,086 $ 25,112 Buildings 297,067 299,489 302,956 Machinery and equipment 750,118 866,002 812,509 Software 374,596 413,903 364,391 Tools, dies, and molds 608,301 801,064 747,706 Leasehold improvements 172,095 211,455 183,250 2,227,083 2,616,999 2,435,924 Less: accumulated depreciation (1,729,646) (2,044,730) (1,885,785) $ 497,437 $ 572,269 $ 550,139 |
Goodwill
Goodwill | 9 Months Ended |
Sep. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | Goodwill Goodwill is allocated to various reporting units, which are at the operating segment level, for the purpose 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. In the third quarter of 2020, Mattel performed its annual impairment test and determined that goodwill was not impaired. The change in the carrying amount of goodwill by operating segment for the nine months ended September 30, 2020 is shown below. Brand-specific goodwill held by foreign subsidiaries is allocated to the North America segment, thereby causing a foreign currency translation impact. December 31, Currency September 30, (In thousands) North America $ 732,430 $ (759) $ 731,671 International 450,713 (2,695) 448,018 American Girl 207,571 — 207,571 $ 1,390,714 $ (3,454) $ 1,387,260 |
Other Noncurrent Assets
Other Noncurrent Assets | 9 Months Ended |
Sep. 30, 2020 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Noncurrent Assets | Other Noncurrent Assets Other noncurrent assets include the following: September 30, September 30, December 31, (In thousands) Identifiable intangible assets (net of accumulated amortization of $277.5 million, $238.1 million, and $248.0 million, respectively) $ 519,861 $ 552,332 $ 553,114 Deferred income taxes 60,850 63,551 67,900 Mattel's amortizable intangible assets primarily consist of trademarks. Mattel tests its amortizable intangible assets for impairment whenever events or changes in circumstances indicate that the carrying value of the asset may not be recoverable. Mattel's amortizable intangible assets were not impaired during the three and nine months ended September 30, 2020 and 2019. |
Accrued Liabilities
Accrued Liabilities | 9 Months Ended |
Sep. 30, 2020 | |
Payables and Accruals [Abstract] | |
Accrued Liabilities | Accrued Liabilities Accrued liabilities include the following: September 30, September 30, December 31, (In thousands) Incentive compensation $ 97,635 $ 65,220 $ 122,923 Current lease liabilities 85,120 73,297 74,065 Advertising and promotion 98,597 117,561 93,804 Royalties 57,020 82,056 94,228 |
Seasonal Financing
Seasonal Financing | 9 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Seasonal Financing | Seasonal Financing On December 20, 2017, Mattel entered into a syndicated facility agreement, which was subsequently amended in 2018 and 2019 (as amended, the "Credit Agreement"), as a borrower (in such capacity, the "Borrower") and guarantor thereunder, along with certain of the Borrower's domestic and foreign subsidiaries as additional borrowers and/or guarantors thereunder, Bank of America, N.A., as global administrative agent, collateral agent and Australian security trustee, and the other lenders and financial institutions from time to time party thereto, providing up to $1.60 billion in aggregate principal amount of senior secured revolving credit facilities (the "senior secured revolving credit facilities"). The senior secured revolving credit facilities consist of (i) an asset based lending facility with aggregate commitments up to $1.31 billion, subject to borrowing base capacity, secured by substantially all of the accounts receivable and inventory of the Borrower and certain of its subsidiaries who are borrowers and/or guarantors under the Credit Agreement, as well as (ii) a revolving credit facility with $294.0 million in aggregate commitments secured by certain fixed assets and intellectual property of the U.S. borrowers under the Credit Agreement, and certain equity interests in the borrower and guarantor subsidiaries under the Credit Agreement. The senior secured revolving credit facilities will mature on November 18, 2022. 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 2.75% per annum or (b) an alternate base rate plus an applicable margin ranging from 0.25% to 1.75% 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, the Borrower 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. Mattel had borrowings under the senior secured revolving credit facilities of $400 million and $230 million as of September 30, 2020 and September 30, 2019, respectively, and had no borrowings under the senior secured revolving credit facilities as of December 31, 2019. During October 2020, Mattel repaid $323.7 million under the senior secured revolving credit facilities, resulting in a total outstanding balance of $76.3 million as of October 21, 2020. Outstanding letters of credit under the senior secured revolving credit facilities totaled approximately $13 million, $65 million, and $55 million as of September 30, 2020, September 30, 2019, and December 31, 2019, respectively. 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. Since the execution of the Credit Agreement, the fixed charge coverage ratio covenant has not been in effect, as no event of default has occurred and Mattel's excess availability has been greater than $100 million and the Availability Threshold. As of September 30, 2020, Mattel was in compliance with all covenants contained in the Credit Agreement. 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 | 9 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt Long-term debt includes the following: September 30, September 30, December 31, (In thousands) 2010 Senior Notes due October 2020 $ — $ 250,000 $ — 2010 Senior Notes due October 2040 250,000 250,000 250,000 2011 Senior Notes due November 2041 300,000 300,000 300,000 2013 Senior Notes due March 2023 250,000 250,000 250,000 2016 Senior Notes due August 2021 — 350,000 — 2017/2018 Senior Notes due December 2025 1,500,000 1,500,000 1,500,000 2019 Senior Notes due December 2027 600,000 — 600,000 Debt issuance costs and debt discount (47,249) (43,227) (53,249) $ 2,852,751 $ 2,856,773 $ 2,846,751 |
Other Noncurrent Liabilities
Other Noncurrent Liabilities | 9 Months Ended |
Sep. 30, 2020 | |
Payables and Accruals [Abstract] | |
Other Noncurrent Liabilities | Other Noncurrent Liabilities Other noncurrent liabilities include the following: September 30, September 30, December 31, (In thousands) Benefit plan liabilities $ 203,295 $ 183,214 $ 212,280 Noncurrent income tax liabilities 129,773 146,297 125,515 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 9 Months Ended |
Sep. 30, 2020 | |
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 other comprehensive income (loss) and reclassifications out of accumulated other comprehensive income (loss) for each period: For the Three Months Ended September 30, 2020 Derivative Available-for-Sale Security Employee Currency Total (In thousands) Accumulated Other Comprehensive Income (Loss), Net of Tax, as of June 30, 2020 $ 18,026 $ (8,145) $ (166,279) $ (821,199) $ (977,597) Other comprehensive (loss) income before reclassifications (15,709) 178 (432) 13,032 (2,931) Amounts reclassified from accumulated other comprehensive income (loss) (7,069) — 1,723 — (5,346) Net (decrease) increase in other comprehensive (loss) income (22,778) 178 1,291 13,032 (8,277) Accumulated Other Comprehensive (Loss), Net of Tax, as of September 30, 2020 $ (4,752) $ (7,967) $ (164,988) $ (808,167) $ (985,874) For the Nine Months Ended September 30, 2020 Derivative Available-for-Sale Security Employee Currency Total (In thousands) Accumulated Other Comprehensive Income (Loss), Net of Tax, as of December 31, 2019 $ 11,041 $ (8,260) $ (169,857) $ (702,408) $ (869,484) Other comprehensive (loss) income before reclassifications (1,815) 293 67 (105,759) (107,214) Amounts reclassified from accumulated other comprehensive income (loss) (13,978) — 4,802 — (9,176) Net (decrease) increase in other comprehensive (loss) income (15,793) 293 4,869 (105,759) (116,390) Accumulated Other Comprehensive (Loss), Net of Tax, as of September 30, 2020 $ (4,752) $ (7,967) $ (164,988) $ (808,167) $ (985,874) For the Three Months Ended September 30, 2019 Derivative Available-for-Sale Security Employee Currency Total (In thousands) Accumulated Other Comprehensive Income (Loss), Net of Tax, as of June 30, 2019 $ 17,232 $ (6,614) $ (141,916) $ (708,364) $ (839,662) Other comprehensive income (loss) before reclassifications 12,996 (1,922) (359) (46,722) (36,007) Amounts reclassified from accumulated other comprehensive income (loss) (6,394) — 1,242 — (5,152) Net increase (decrease) in other comprehensive income (loss) 6,602 (1,922) 883 (46,722) (41,159) Accumulated Other Comprehensive Income (Loss), Net of Tax, as of September 30, 2019 $ 23,834 $ (8,536) $ (141,033) $ (755,086) $ (880,821) For the Nine Months Ended September 30, 2019 Derivative Available-for-Sale Security Employee Currency Total (In thousands) Accumulated Other Comprehensive Income (Loss), Net of Tax, as of December 31, 2018 $ 11,411 $ (6,547) $ (142,763) $ (721,327) $ (859,226) Other comprehensive income (loss) before reclassifications 22,068 (1,989) (2,183) (33,759) (15,863) Amounts reclassified from accumulated other comprehensive income (loss) (9,645) — 3,913 — (5,732) Net increase (decrease) in other comprehensive income (loss) 12,423 (1,989) 1,730 (33,759) (21,595) Accumulated Other Comprehensive Income (Loss), Net of Tax, as of September 30, 2019 $ 23,834 $ (8,536) $ (141,033) $ (755,086) $ (880,821) The following table presents the classification and amount of the reclassifications from accumulated other comprehensive income (loss) to the consolidated statements of operations: For the Three Months Ended September 30, September 30, Statements of Operations (In thousands) Derivative Instruments Gain on foreign currency forward exchange contracts and other $ 7,031 $ 6,583 Cost of sales Tax effect 38 (189) Provision for income taxes $ 7,069 $ 6,394 Net income (loss) Employee Benefit Plans Amortization of prior service credit (a) $ 472 $ 494 Other non-operating (income) expense, net Recognized actuarial loss (a) (2,336) (1,736) Other non-operating (income) expense, net (1,864) (1,242) Tax effect 141 — Provision for income taxes $ (1,723) $ (1,242) Net income (loss) For the Nine Months Ended September 30, September 30, Statements of Operations (In thousands) Derivative Instruments Gain on foreign currency forward exchange contracts and other $ 13,845 $ 10,185 Cost of sales Tax effect 133 (540) Provision for income taxes $ 13,978 $ 9,645 Net income (loss) Employee Benefit Plans Amortization of prior service credit (a) $ 1,405 $ 1,480 Other non-operating (income) expense, net Recognized actuarial loss (a) (7,014) (5,208) Other non-operating (income) expense, net (5,609) (3,728) Tax effect 807 (185) Provision for income taxes $ (4,802) $ (3,913) Net income (loss) _______________________________________ (a) The amortization of prior service credit and recognized actuarial loss are included in the computation of net periodic benefit cost. Refer to "Note 15 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 foreign 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 and expense 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 loss within stockholders' equity. Currency translation adjustments resulted in a net loss of $105.8 million for the nine months ended September 30, 2020, primarily due to the weakening of the Brazilian real, Mexican peso, Russian ruble, and the British pound sterling against the U.S. dollar. Currency translation adjustments resulted in a net loss of $33.8 million for the nine months ended September 30, 2019, primarily due to the weakening of the British pound sterling, Euro, and Brazilian real against the U.S. dollar, partially offset by the strengthening of the Russian ruble against the U.S. dollar. |
Derivative Instruments
Derivative Instruments | 9 Months Ended |
Sep. 30, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | Derivative InstrumentsMattel seeks to mitigate its exposure to foreign currency transaction risk by monitoring its foreign currency transaction exposure for the year and partially hedging such exposure using foreign currency forward exchange contracts. Mattel uses foreign currency forward exchange contracts as cash flow hedges primarily to hedge its purchases and sales of inventory denominated in foreign currencies. These contracts generally have maturity dates of up to 18 months. These derivative instruments have been designated as effective cash flow hedges, whereby the unsettled hedges are reported in Mattel's consolidated balance sheets at fair value, with changes in the fair value of the hedges reflected in other comprehensive income (loss) ("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. Mattel also uses foreign currency forward exchange contracts to hedge intercompany loans and advances denominated in foreign currencies. Due to the short-term nature of the contracts involved, Mattel does not use hedge accounting for these contracts, and as such, changes in fair value are recorded in the period of change in the consolidated statements of operations. Additionally, Mattel utilizes derivative contracts to hedge commodities including certain raw materials. As of September 30, 2020, September 30, 2019, and December 31, 2019, Mattel held foreign currency forward exchange contracts and other commodity derivative instruments, with notional amounts of $903.1 million, $832.4 million, and $742.0 million, respectively. The following tables present Mattel's derivative assets and liabilities: Derivative Assets Fair Value Balance Sheet Classification September 30, September 30, December 31, (In thousands) Derivatives designated as hedging instruments Foreign currency forward exchange contracts and other $ 5,340 $ 22,077 $ 10,227 Prepaid expenses and other current assets Foreign currency forward exchange contracts and other 896 4,942 715 Other noncurrent assets Total derivatives designated as hedging instruments $ 6,236 $ 27,019 $ 10,942 Derivatives not designated as hedging instruments Foreign currency forward exchange contracts and other $ 2,337 $ 619 $ 4,060 Prepaid expenses and other current assets $ 8,573 $ 27,638 $ 15,002 Derivative Liabilities Fair Value Balance Sheet Classification September 30, September 30, December 31, (In thousands) Derivatives designated as hedging instruments Foreign currency forward exchange contracts and other $ 9,256 $ 426 $ 2,500 Accrued liabilities Foreign currency forward exchange contracts and other 3,602 48 213 Other noncurrent liabilities Total derivatives designated as hedging instruments $ 12,858 $ 474 $ 2,713 Derivatives not designated as hedging instruments Foreign currency forward exchange contracts and other $ 984 $ 2,736 $ 263 Accrued liabilities Foreign currency forward exchange contracts and other 99 — — Other noncurrent liabilities Total derivatives not designated as hedging instruments $ 1,083 $ 2,736 $ 263 $ 13,941 $ 3,210 $ 2,976 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 September 30, 2020 September 30, 2019 Statements of Amount of (Loss) Recognized in OCI Amount of Gain Reclassified from Accumulated OCI to Statement of Operations Amount of Gain Recognized in OCI Amount of Gain Reclassified from Accumulated OCI to Statement of Operations (In thousands) Derivatives designated as hedging instruments Foreign currency forward exchange contracts and other $ (15,709) $ 7,069 $ 12,996 $ 6,394 Cost of sales For the Nine Months Ended September 30, 2020 September 30, 2019 Amount of (Loss) Recognized in OCI Amount of Gain Reclassified from Accumulated OCI to Statement of Operations Amount of Gain Recognized in OCI Amount of Gain Reclassified from Accumulated OCI to Statement of Operations Statements of (In thousands) Derivatives designated as hedging instruments Foreign currency forward exchange contracts and other $ (1,815) $ 13,978 $ 22,068 $ 9,645 Cost of sales The net (losses) gains 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 For the Three Months Ended September 30, September 30, (In thousands) Derivatives not designated as hedging instruments Foreign currency forward exchange contracts and other $ 232 $ (9,965) Other non-operating (income) expense, net Amount of (Loss) Recognized in the Statements of Operations Statements of Operations For the Nine Months Ended September 30, September 30, (In thousands) Derivatives not designated as hedging instruments Foreign currency forward exchange contracts and other $ (30,015) $ (6,097) Other non-operating (income) expense, net The net gains (losses) are offset by gains and losses on the related transactions. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2020 | |
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 on a recurring basis as of September 30, 2020, September 30, 2019, and December 31, 2019 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, either directly or indirectly. • Level 3 – Valuations based on inputs that are unobservable, supported by little or no market activity, and that are significant to the fair value of the assets or liabilities. Mattel's financial assets and liabilities include the following: September 30, 2020 Level 1 Level 2 Level 3 Total (In thousands) Assets Foreign currency forward exchange contracts and other (a) $ — $ 8,573 $ — $ 8,573 Available-for-sale security (b) 3,823 — — 3,823 Total assets $ 3,823 $ 8,573 $ — $ 12,396 Liabilities Foreign currency forward exchange contracts and other (a) $ — $ 13,941 $ — $ 13,941 September 30, 2019 Level 1 Level 2 Level 3 Total (In thousands) Assets Foreign currency forward exchange contracts and other (a) $ — $ 27,638 $ — $ 27,638 Available-for-sale security (b) 3,284 — — 3,284 Total assets $ 3,284 $ 27,638 $ — $ 30,922 Liabilities Foreign currency forward exchange contracts and other (a) $ — $ 3,210 $ — $ 3,210 December 31, 2019 Level 1 Level 2 Level 3 Total (In thousands) Assets Foreign currency forward exchange contracts and other (a) $ — $ 15,002 $ — $ 15,002 Available-for-sale security (b) 3,530 — — 3,530 Total assets $ 3,530 $ 15,002 $ — $ 18,532 Liabilities Foreign currency forward exchange contracts and other (a) $ — $ 2,976 $ — $ 2,976 ____________________________________________ (a) The fair value of the foreign currency forward exchange contracts and other commodity derivative instruments is based on dealer quotes of market forward rates and reflects the amount that Mattel would receive or pay at their maturity dates for contracts involving the same notional amounts, currencies, and maturity dates. (b) The fair value of the available-for-sale security is based on the quoted price on an active public exchange. Other Financial Instruments Mattel's financial instruments include cash and equivalents, accounts receivable and payable, accrued liabilities, short-term borrowings, and long-term debt. The fair values of these instruments, excluding long-term debt, approximate their carrying values because of their short-term nature. Cash and equivalents are 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 was $2.98 billion (compared to a carrying value of $2.90 billion) as of September 30, 2020, $2.84 billion (compared to a carrying value of $2.90 billion) as of September 30, 2019, and $3.00 billion (compared to a carrying value of $2.90 billion) as of December 31, 2019. 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 | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The following table reconciles basic and diluted earnings per common share for the three and nine months ended September 30, 2020 and 2019: For the Three Months Ended For the Nine Months Ended September 30, September 30, September 30, September 30, (In thousands, except per share amounts) Basic Net income (loss) $ 315,994 $ 70,596 $ (3,919) $ (213,687) Weighted-average number of common shares 347,628 346,698 347,206 346,210 Basic net income (loss) per common share $ 0.91 $ 0.20 $ (0.01) $ (0.62) Diluted Net income (loss) $ 315,994 $ 70,596 $ (3,919) $ (213,687) Weighted-average number of common shares 347,628 346,698 347,206 346,210 Dilutive stock options and restricted stock units ("RSUs") (a) 1,086 1,789 — — Weighted-average number of common and potential common shares 348,714 348,487 347,206 346,210 Diluted net income (loss) per common share $ 0.91 $ 0.20 $ (0.01) $ (0.62) _______________________________________ |
Employee Benefit Plans
Employee Benefit Plans | 9 Months Ended |
Sep. 30, 2020 | |
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 the 2019 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 Nine Months Ended September 30, September 30, September 30, September 30, (In thousands) Service cost $ 1,015 $ 923 $ 3,236 $ 3,557 Interest cost 3,729 4,812 11,247 14,478 Expected return on plan assets (4,899) (5,402) (14,722) (16,280) Amortization of prior service cost 37 16 123 48 Recognized actuarial loss 2,355 1,832 7,070 5,496 $ 2,237 $ 2,181 $ 6,954 $ 7,299 A summary of the components of net periodic benefit credit for Mattel's postretirement benefit plans is as follows: For the Three Months Ended For the Nine Months Ended September 30, September 30, September 30, September 30, (In thousands) Interest cost $ 35 $ 50 $ 104 $ 150 Amortization of prior service credit (509) (510) (1,528) (1,528) Recognized actuarial gain (19) (96) (56) (288) $ (493) $ (556) $ (1,480) $ (1,666) During the nine months ended September 30, 2020, Mattel made cash contributions totaling approximately $9 million related to its defined benefit pension and postretirement benefit plans. During the remainder of 2020, Mattel expects to make additional cash contributions of approximately $3 million. |
Share-Based Payments
Share-Based Payments | 9 Months Ended |
Sep. 30, 2020 | |
Share-based Payment Arrangement [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 8 to the Consolidated Financial Statements—Share-Based Payments" in the 2019 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. Stock options and RSUs generally provide for vesting over a period of three years from the date of grant. As of September 30, 2020, three long-term incentive programs were in place with the following performance cycles: (i) a January 1, 2018–December 31, 2020 performance cycle (ii) a January 1, 2019–December 31, 2021 performance cycle and (iii) a January 1, 2020–December 31, 2022 performance cycle. 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 Nine Months Ended September 30, September 30, September 30, September 30, (In thousands) Stock option compensation expense $ 3,095 $ 2,786 $ 8,602 $ 7,359 RSU compensation expense (a) 13,437 12,045 31,344 31,781 $ 16,532 $ 14,831 $ 39,946 $ 39,140 _______________________________________ (a) Includes compensation expense associated with Mattel's long-term incentive programs of $5.5 million and $9.4 million for the three and nine months ended September 30, 2020, respectively, and $3.9 million and $6.0 million for the three and nine months ended September 30, 2019, respectively. As of September 30, 2020, total unrecognized compensation expense related to unvested share-based payments totaled $88.3 million and is expected to be recognized over a weighted-average period of 2.1 years. Mattel uses treasury shares purchased under its share repurchase program to satisfy stock option exercises and the vesting of RSUs. No cash was received for stock option exercises during the nine months ended September 30, 2020 and 2019. |
Other Selling and Administrativ
Other Selling and Administrative Expenses | 9 Months Ended |
Sep. 30, 2020 | |
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 Nine Months Ended September 30, September 30, September 30, September 30, (In thousands) Design and development $ 45,495 $ 48,811 $ 136,609 $ 143,441 Identifiable intangible asset amortization 9,813 9,824 29,465 30,162 |
Foreign Currency Transaction Ex
Foreign Currency Transaction Exposure | 9 Months Ended |
Sep. 30, 2020 | |
Foreign Currency [Abstract] | |
Foreign Currency Transaction Exposure | Foreign Currency Transaction Exposure Currency exchange rate fluctuations may impact Mattel's results of operations and cash flows. Mattel's currency transaction exposures include gains and losses realized on unhedged inventory purchases and unhedged receivables and payables balances that are denominated in a currency other than the applicable functional currency. Gains and losses on unhedged inventory purchases and other transactions associated with operating activities are recorded in the components of operating income (loss) in the consolidated statements of operations. Gains and losses on unhedged intercompany loans and advances are recorded as a component of other non-operating (income) expense, net in the consolidated statements of operations in the period in which the currency exchange rate changes. Inventory transactions denominated in the Euro, Mexican peso, British pound sterling, Canadian dollar, Australian dollar, Russian ruble, and Brazilian real were the primary transactions that caused foreign currency transaction exposure for Mattel during the nine months ended September 30, 2020. Currency transaction (losses) gains included in the consolidated statements of operations are as follows: For the Three Months Ended For the Nine Months Ended September 30, September 30, September 30, September 30, (In thousands) Operating income (loss) $ (6,461) $ 1,316 $ (8,406) $ (1,782) Other non-operating (income) expense, net (553) (1,254) (2,988) (1,804) Currency transaction (losses) gains, net $ (7,014) $ 62 $ (11,394) $ (3,586) |
Restructuring Charges
Restructuring Charges | 9 Months Ended |
Sep. 30, 2020 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Charges | Restructuring Charges Capital Light Program During the first quarter of 2019, Mattel announced the commencement of its Capital Light program to optimize Mattel's manufacturing footprint (including the sale or consolidation of manufacturing facilities), increase the productivity of its plant infrastructure, and achieve additional efficiencies across its entire supply chain. In connection with the Capital Light program, Mattel recorded severance and other restructuring charges within the consolidated statements of operations as follows: For the Three Months Ended For the Nine Months Ended September 30, September 30, September 30, September 30, (In thousands) Cost of sales (a) $ 348 $ 8,430 $ 4,812 $ 11,913 Other selling and administrative expenses (b) 2,259 7,908 6,379 15,879 $ 2,607 $ 16,338 $ 11,191 $ 27,792 _______________________________________ (a) Severance and other restructuring costs recorded within cost of sales in the consolidated statements of operations include charges associated with the consolidation of manufacturing facilities. (b) Severance and other restructuring costs recorded within other selling and administrative expenses in the consolidated statements of operations are included in corporate and other expense in "Note 22 to the Consolidated Financial Statements—Segment Information." The following table summarizes Mattel's severance and other restructuring charges activity related to the Capital Light program for the nine months ended September 30, 2020: Liability at December 31, 2019 Charges (a) Payments/Utilization Liability at September 30, 2020 (In thousands) Severance $ 6,151 $ 6,039 $ (7,197) $ 4,993 Other restructuring charges 11,484 5,152 (16,548) 88 $ 17,635 $ 11,191 $ (23,745) $ 5,081 _______________________________________ (a) Other restructuring charges consist primarily of expenses associated with the consolidation of manufacturing facilities. As of September 30, 2020, Mattel has recorded cumulative severance and other restructuring charges related to the Capital Light program of $48.8 million, which include approximately $14 million of non-cash charges. Mattel expects to incur total severance and other restructuring charges, excluding non-cash charges, of approximately $38 million related to the Capital Light program. Other Cost Savings Actions In connection with Mattel’s continued efforts to streamline its organizational structure and restore profitability, on May 4, 2020, Mattel committed to a planned 4% reduction in its non-manufacturing workforce. The timing of this action was accelerated due to the impact of COVID-19. The following table summarizes Mattel's severance charges activity related to other cost savings actions for the nine months ended September 30, 2020: Liability at December 31, 2019 Charges (a) Payments/Utilization Liability at September 30, 2020 (In thousands) Severance (a) $ — $ 18,142 $ (9,203) $ 8,939 _______________________________________ (a) Severance charges recorded within other selling and administrative expenses in the consolidated statements of operations are included in corporate and other expense in "Note 22 to the Consolidated Financial Statements—Segment Information." Mattel expects to incur additional severance and restructuring charges of approximately $2 million related to other cost savings actions, consisting solely of cash expenditures for employee termination and severance costs, through the end of 2020. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Mattel's provision for income taxes was $22.1 million and $46.8 million for the three and nine months ended September 30, 2020, respectively, and $31.4 million and $46.2 million for the three and nine months ended September 30, 2019, respectively. During the three and nine months ended September 30, 2020, Mattel recognized a net discrete tax expense of $1.7 million and $11.4 million, respectively, primarily related to an expense for reassessments of prior years' tax liabilities and income taxes recorded on a discrete basis in various jurisdictions. During the three and nine months ended September 30, 2019, Mattel recognized a discrete tax benefit of $13.4 million related to the reassessment of future realizability of certain foreign deferred tax assets, offset by discrete tax expenses of $13.5 million and $12.3 million, respectively, related to reassessments of prior years' tax liabilities and income taxes recorded on a discrete basis in various jurisdictions. As a result of the establishment of a valuation allowance on U.S. deferred tax assets in 2017, there was no U.S. tax benefit provided for U.S. losses during the three and nine months ended September 30, 2020 and 2019.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 $11.2 million related to the settlement of tax audits and/or the expiration of statutes of limitations. The ultimate settlement of any particular issue with the applicable taxing authority could have a material impact on Mattel's consolidated financial statements. |
Contingencies
Contingencies | 9 Months Ended |
Sep. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Contingencies Litigation Related to Yellowstone do Brasil Ltda. Yellowstone do Brasil Ltda. (formerly known as Trebbor Informática Ltda.) was a customer of Mattel's subsidiary Mattel do Brasil Ltda. when a commercial dispute arose between Yellowstone and Mattel do Brasil regarding the supply of product and related payment terms. As a consequence of the dispute, in April 1999, Yellowstone filed a declarative action against Mattel do Brasil before the 15 th Civil Court of Curitiba – State of Parana (the "Trial Court"), requesting the annulment of its security bonds and promissory notes given to Mattel do Brasil as well as requesting the Trial Court to find Mattel do Brasil liable for damages incurred as a result of Mattel do Brasil’s alleged abrupt and unreasonable breach of an oral exclusive distribution agreement between the parties relating to the supply and sale of toys in Brazil. Yellowstone's complaint sought alleged loss of profits of approximately $1 million, plus an unspecified amount of damages consisting of: (i) compensation for all investments made by Yellowstone to develop Mattel do Brasil's business; (ii) reimbursement of the amounts paid by Yellowstone to terminate labor and civil contracts in connection with the business; (iii) compensation for alleged unfair competition and for the goodwill of trade; and (iv) compensation for non-pecuniary damages. Mattel do Brasil filed its defenses to these claims and simultaneously presented a counterclaim for unpaid accounts receivable for goods supplied to Yellowstone in the approximate amount of $4 million. During the evidentiary phase a first accounting report was submitted by a court-appointed expert. Such report stated that Yellowstone had invested approximately $3 million in its business. Additionally, the court-appointed expert calculated a loss of profits compensation of approximately $1 million. Mattel do Brasil challenged the report since it was not made based on the official accounting documents of Yellowstone and since the report calculated damages based only on documents unilaterally submitted by Yellowstone. The Trial Court accepted the challenge and ruled that a second accounting examination should take place in the lawsuit. Yellowstone appealed the decision to the Court of Appeals of the State of Parana (the "Appeals Court"), but it was upheld by the Appeals Court. The second court-appointed expert’s report submitted at trial did not assign a value to any of Yellowstone’s claims and found no evidence of causation between Mattel do Brasil's actions and such claims. In January 2010, the Trial Court ruled in favor of Mattel do Brasil and denied all of Yellowstone’s claims based primarily on the lack of any causal connection between the acts of Mattel do Brasil and Yellowstone’s alleged damages. Additionally, the Trial Court upheld Mattel do Brasil's counterclaim and ordered Yellowstone to pay Mattel do Brasil approximately $4 million. The likelihood of Mattel do Brasil recovering this amount was uncertain due to the fact that Yellowstone was declared insolvent and filed for bankruptcy protection. In February 2010, Yellowstone filed a motion seeking clarification of the decision which was denied. In September 2010, Yellowstone filed a further appeal with the Appeals Court. Under Brazilian law, the appeal was de novo and Yellowstone restated all of the arguments it made at the Trial Court level. Yellowstone did not provide any additional information supporting its unspecified alleged damages. The Appeals Court held hearings on the appeal in March and April 2013. On July 26, 2013, the Appeals Court awarded Yellowstone approximately $17 million in damages, plus attorney's fees, as adjusted for inflation and interest. The Appeals Court also awarded Mattel do Brasil approximately $7.5 million on its counterclaim, as adjusted for inflation. On August 2, 2013, Mattel do Brasil filed a motion with the Appeals Court for clarification since the written decision contained clear errors in terms of amounts awarded and interest and inflation adjustments. Mattel do Brasil's motion also asked the Appeals Court to decide whether Yellowstone’s award could be offset by the counterclaim award, despite Yellowstone's status as a bankrupt entity. Yellowstone also filed a motion for clarification on August 5, 2013. A decision on the clarification motions was rendered on November 11, 2014, and the Appeals Court accepted partially the arguments raised by Mattel do Brasil. As a result, the Appeals Court awarded Yellowstone approximately $14.5 million in damages, as adjusted for inflation and interest, plus attorney's fees. The Appeals Court also awarded Mattel do Brasil approximately $7.5 million on its counterclaim, as adjusted for inflation. The decision also recognized the existence of legal rules that support Mattel do Brasil's right to offset its counterclaim award of approximately $7.5 million. Mattel do Brasil filed a new motion for clarification with the Appeals Court on January 21, 2015, due to the incorrect statement made by the reporting judge of the Appeals Court, that the court-appointed expert analyzed the "accounting documents" of Yellowstone. On April 26, 2015, a decision on the motion for clarification was rendered. The Appeals Court ruled that the motion for clarification was denied and imposed a fine on Mattel do Brasil equal to 1% of the value of the claims made for the delay caused by the motion. On July 3, 2015, Mattel do Brasil filed a special appeal to the Superior Court of Justice based upon both procedural and substantive grounds. This special appeal sought 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. 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 sought 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. 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, but the settlement was later rejected by the courts, subject to a pending appeal by Mattel. On October 2, 2018, the Appeals Court rejected Mattel's merits appeal, and affirmed the prior rulings in favor of Yellowstone. In October 2019, Mattel reached an agreement with Yellowstone's former counsel regarding payment of the attorney's fees portion of the judgment. In November 2019, Yellowstone initiated an action to enforce its judgment against Mattel, but did not account for an offset for Mattel's counterclaim. On January 27, 2020, Mattel obtained an injunction, staying Yellowstone's enforcement action pending resolution of Mattel's appeal to enforce the parties' April 2018 settlement. As of September 30, 2020, Mattel assessed its probable loss related to the Yellowstone matter and has accrued a reserve, which was not material. Litigation Related to the Fisher-Price Rock 'n Play Sleeper A number of putative class action lawsuits are pending against Fisher-Price, Inc. and/or Mattel, Inc. asserting claims for false advertising, negligent product design, breach of warranty, fraud, and other claims in connection with the marketing and sale of the Fisher-Price Rock 'n Play Sleeper (the "Sleeper"). In general, the lawsuits allege that the Sleeper should not have been marketed and sold as safe and fit for prolonged and overnight sleep for infants. The putative class action lawsuits propose nationwide and over 15 statewide consumer classes comprised of those who purchased the Sleeper as marketed as safe for prolonged and overnight sleep. The class actions have been consolidated before a single judge for pre-trial purposes pursuant to the federal courts’ Multi-District Litigation program. Thirty-six additional lawsuits are pending against Fisher-Price, Inc. and Mattel, Inc. alleging that a product defect in the Sleeper caused the fatalities of or injuries to forty children. Additionally, Fisher-Price, Inc. and/or Mattel, Inc. have also received letters from lawyers purporting to represent additional plaintiffs who are threatening to assert similar claims. In addition, a stockholder has filed a derivative action in the Court of Chancery for the State of Delaware (Kumar v. Bradley, et al., filed July 7, 2020) alleging breach of fiduciary duty and unjust enrichment related to the development, marketing, and sale of the Sleeper. The defendants in the derivative action are R. Todd Bradley, Richard Dickson, Joseph J. Euteneuer, Adriana Cisneros, Michael J. Dolan, Ynon Kreiz, Soren T. Laursen, Ann Lewnes, Roger Lynch, Dominic Ng, Judy D. Olian and Vasant M. Prabhu. In August 2020, the derivative action was stayed pending further developments in the class action lawsuits. The lawsuits seek compensatory damages, punitive damages, statutory damages, restitution, disgorgement, attorneys’ fees, costs, interest, declaratory relief, 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. Litigation and Investigations Related to Whistleblower Letter In December 2019 and January 2020, two stockholders filed separate complaints styled as class actions against Mattel, Inc., and certain of its current and former officers, alleging violations of federal securities laws. The complaints rely on the results of an investigation announced by Mattel in October 2019 regarding allegations in a whistleblower letter and claim that Mattel misled the market in several of its financial statements beginning in the third quarter of 2017. The lawsuits allege that the defendants' conduct caused the plaintiff and other stockholders to purchase Mattel common stock at artificially inflated prices. In addition, a stockholder has filed a derivative action in the United States District Court for the District of Delaware (Moher v. Kreiz, et al., filed April 9, 2020) making allegations that are substantially identical to, or are based upon, the allegations of the class action lawsuits. The defendants in the derivative action are Ynon Kreiz, Margaret H. Georgiadis, Joseph J. Euteneuer, Joseph B. Johnson, R. Todd Bradley, Adriana Cisneros, Michael J. Dolan, Trevor A. Edwards, Frances D. Fergusson, Soren T. Laursen, Ann Lewnes, Kathy W. Loyd, Roger Lynch, Dominic Ng, Judy D. Olian, Vasant M. Prabhu, Dean A. Scarborough, Christopher A. Sinclair, Mattel, Inc., and PricewaterhouseCoopers LLP. Subsequently, a nearly identical derivative action was filed by a different stockholder against the same defendants. The second lawsuit is styled as an amended complaint and replaces a complaint making unrelated allegations in a previously filed lawsuit already pending in Delaware federal court (Lombardi v. Kreiz, et al., amended complaint filed April 16, 2020). In May 2020, the derivative actions were consolidated and stayed pending further developments in the class action lawsuits. 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 | 9 Months Ended |
Sep. 30, 2020 | |
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. Gross Sales Gross sales by categories are presented as follows: Dolls —including brands such as Barbie , American Girl , Enchantimals , and Polly Pocket. Infant, Toddler, and Preschool —including brands such as Fisher-Price, Thomas & Friends , Power Wheels , Fireman Sam , and Shimmer and Shine ( Nickelodeon ). Vehicles —including brands such as Hot Wheels , Matchbox , CARS ( Disney Pixar ), and Jurassic World ( NBCUniversal ). Action Figures, Building Sets, Games, and Other —including brands such as MEGA , UNO , Toy Story ( Disney Pixar ), Jurassic World ( NBCUniversal ), WWE , and Star Wars (Disney) . Segment Data 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 across categories, although some products are developed and adapted for particular international markets. The following tables present information about gross sales, income (loss), and assets by segment. Mattel does not include sales adjustments such as trade discounts and other allowances in the calculation of segment gross sales. See reconciliations of gross sales to net sales in the tables below. Mattel records these adjustments in its financial accounting systems at the time of sale to each customer, but the adjustments generally are not associated with categories, brands, and individual products. For this reason, Mattel's Chief Operating Decision Maker uses total net sales and gross sales by segment as measures to evaluate segment performance. Sales adjustments are included in the determination of segment income (loss) from operations based on the adjustments recorded in the financial accounting systems. Segment income (loss) represents each segment's operating income (loss), while consolidated operating income (loss) represents income (loss) from operations before net interest, other non-operating (income) expense, 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, severance and other restructuring costs, share-based compensation, certain 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 Nine Months Ended September 30, September 30, September 30, September 30, (In thousands) Gross Sales by Segment North America $ 991,609 $ 880,441 $ 1,758,912 $ 1,697,186 International 773,056 721,705 1,423,120 1,567,390 American Girl 53,738 54,764 120,896 134,726 Gross sales 1,818,403 1,656,910 3,302,928 3,399,302 Sales adjustments (186,712) (175,353) (345,031) (368,436) Net sales $ 1,631,691 $ 1,481,557 $ 2,957,897 $ 3,030,866 For the Three Months Ended For the Nine Months Ended September 30, September 30, September 30, September 30, (In thousands) Segment Income (Loss) North America (a) $ 344,420 $ 194,368 $ 430,371 $ 202,923 International (a) 183,220 89,244 139,372 61,434 American Girl (10,296) (11,079) (41,595) (41,442) 517,344 272,533 528,148 222,915 Corporate and other expense (b) (133,187) (122,446) (339,943) (251,255) Operating income (loss) 384,157 150,087 188,205 (28,340) Interest expense 50,415 47,689 149,010 140,881 Interest (income) (455) (821) (3,564) (4,625) Other non-operating (income) expense, net (3,877) 1,264 (133) 2,874 Income (loss) before income taxes $ 338,074 $ 101,955 $ 42,892 $ (167,470) _______________________________________ (a) Segment income (loss) included severance and restructuring expenses of $0.3 million and $4.8 million, for the three and nine months ended September 30, 2020, respectively, and $8.4 million and $11.9 million, for the three and nine months ended September 30, 2019, respectively, which were allocated to the North America and International segments. Segment income (loss) for the three and nine months ended September 30, 2019 also included charges of $3.9 million and $34.3 million, respectively, attributable to the inclined sleeper product recalls, substantially all of which was recorded in the North America segment. (b) Corporate and other expense included severance and restructuring charges of $6.7 million and $30.5 million, for the three and nine months ended September 30, 2020, respectively, and $11.3 million and $34.4 million, for the three and nine months ended September 30, 2019. Corporate and other expense also included expenses related to inclined sleeper product recall litigation of $10.1 million and $19.2 million, for the three and nine months ended September 30, 2020, respectively, and incentive and share-based compensation for all periods presented. Segment assets are comprised of accounts receivable and inventories, net of applicable allowances and reserves. September 30, September 30, December 31, (In thousands) Assets by Segment North America $ 975,224 $ 916,250 $ 569,819 International 818,710 906,788 721,251 American Girl 66,333 60,171 35,004 1,860,267 1,883,209 1,326,074 Corporate and other 129,500 109,613 105,789 Accounts receivable and inventories, net $ 1,989,767 $ 1,992,822 $ 1,431,863 The table below presents worldwide gross sales by categories: For the Three Months Ended For the Nine Months Ended September 30, September 30, September 30, September 30, (In thousands) Gross Sales by Categories Dolls $ 690,466 $ 567,598 $ 1,177,358 $ 1,093,890 Infant, Toddler, and Preschool 404,064 430,973 744,208 876,595 Vehicles 369,388 346,939 713,723 744,437 Action Figures, Building Sets, Games, and Other 354,485 311,400 667,639 684,380 Gross sales 1,818,403 1,656,910 3,302,928 3,399,302 Sales adjustments (186,712) (175,353) (345,031) (368,436) Net sales $ 1,631,691 $ 1,481,557 $ 2,957,897 $ 3,030,866 The table below presents supplemental disclosure of worldwide gross sales: For the Three Months Ended For the Nine Months Ended September 30, September 30, September 30, September 30, (In thousands) Gross Sales by Top 3 Power Brands Barbie $ 532,228 $ 412,840 $ 879,025 $ 762,849 Hot Wheels 312,788 293,295 607,885 619,030 Fisher-Price and Thomas & Friends 387,648 396,339 692,657 791,146 Other 585,739 554,436 1,123,361 1,226,277 Gross sales 1,818,403 1,656,910 3,302,928 3,399,302 Sales adjustments (186,712) (175,353) (345,031) (368,436) Net sales $ 1,631,691 $ 1,481,557 $ 2,957,897 $ 3,030,866 Geographic Information The table below presents information by geographic area. Gross sales are attributed to countries based on location of the customer. For the Three Months Ended For the Nine Months Ended September 30, September 30, September 30, September 30, (In thousands) Gross Sales by Geographic Area North America $ 1,045,347 $ 935,205 $ 1,879,808 $ 1,831,912 International EMEA 482,590 408,660 881,895 859,116 Latin America 186,644 213,535 313,995 430,095 Asia Pacific 103,822 99,510 227,230 278,179 Total International 773,056 721,705 1,423,120 1,567,390 Gross sales 1,818,403 1,656,910 3,302,928 3,399,302 Sales adjustments (186,712) (175,353) (345,031) (368,436) Net sales $ 1,631,691 $ 1,481,557 $ 2,957,897 $ 3,030,866 |
New Accounting Pronouncements
New Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
New Accounting Pronouncements | New Accounting Pronouncements Recently Adopted Accounting Pronouncements In June 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , which changes the methodology for measuring credit losses on financial instruments and the timing of when such losses are recorded. This update replaces the existing incurred loss impairment model with an expected loss model (referred to as the Current Expected Credit Loss model, or "CECL"). In November 2018, the FASB issued ASU 2018-19, Codifications Improvements to Topic 326, Financial Instruments-Credit Losses, which clarifies that receivables arising from operating leases are accounted for using lease guidance and not as financial instruments. Mattel adopted ASU 2016-13 and its related amendments (ASU 2018-19, ASU 2019-04, ASU 2019-05, ASU 2019-10, ASU 2019-11, and ASU 2020-02) on January 1, 2020. The adoption of this new accounting standard and its related amendments did not have a material impact on Mattel's consolidated financial statements. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement , which modifies the disclosure requirements on fair value measurements, including the consideration of costs and benefits. ASU 2018-13 was effective for interim and annual reporting periods beginning on January 1, 2020. The amendments on changes in unrealized gains and losses, the range and weighted-average of significant unobservable inputs used to develop Level 3 fair value measurements, and the narrative description of measurement uncertainty are applied prospectively for only the most recent interim or annual period presented in the initial fiscal year of adoption. All other amendments are applied retrospectively to all periods presented upon their effective date. Mattel adopted ASU 2018-13 on January 1, 2020. The adoption of this new accounting standard did not have a material impact on Mattel's consolidated financial statements. In March 2019, the FASB issued ASU 2019-02, Entertainment - Films - Other Assets - Film Costs (Subtopic 926-20) and Entertainment - Broadcasters - Intangibles - Goodwill and Other (Subtopic 920-350): Improvements to Accounting for Costs of Films and License Agreements for Program Materials , which aligns the accounting for production costs of episodic television series with the accounting of films by removing the content distinction for capitalization. Mattel adopted ASU 2019-02 on January 1, 2020. The adoption of this new accounting standard did not have a material impact on Mattel's consolidated financial statements. Accounting Pronouncements Not Yet Adopted In August 2018, the FASB issued ASU 2018-14, Compensation - Retirement Benefits - Defined Benefit Plans - General (Subtopic 715-20): Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans , which modifies the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. ASU 2018-14 will become effective for the fiscal year beginning on January 1, 2021. Early adoption is permitted and the amendments will be applied on a retrospective basis to all periods presented. Mattel is currently evaluating the impact of the adoption of ASU 2018-14 on its consolidated financial statements. In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes , which simplifies the accounting for incomes taxes by removing certain exceptions to the general principles in Topic 740. The amendments also improve consistent application of and simplify the accounting for other areas of Topic 740 by clarifying and amending existing guidance. ASU 2019-12 will become effective for the fiscal year beginning on January 1, 2021. Early adoption is permitted. The amendments related to changes in ownership of foreign equity method investments or foreign subsidiaries will be applied on a modified retrospective basis through a cumulative effect adjustment to retained earnings as of the beginning of the fiscal year of adoption. The amendments related to franchise taxes that are partially based on income will be applied on either a retrospective basis for all periods presented or a modified retrospective basis through a cumulative effect adjustment to retained earnings as of the beginning of the fiscal year of adoption. All other amendments will be applied on a prospective basis. Mattel is currently evaluating the impact of the adoption of ASU 2019-12 on its consolidated financial statements. |
New Accounting Pronouncements (
New Accounting Pronouncements (Policies) | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
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. |
Recently Adopted Accounting Pronouncements and Accounting Pronouncements Not Yet Adopted | Recently Adopted Accounting Pronouncements In June 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , which changes the methodology for measuring credit losses on financial instruments and the timing of when such losses are recorded. This update replaces the existing incurred loss impairment model with an expected loss model (referred to as the Current Expected Credit Loss model, or "CECL"). In November 2018, the FASB issued ASU 2018-19, Codifications Improvements to Topic 326, Financial Instruments-Credit Losses, which clarifies that receivables arising from operating leases are accounted for using lease guidance and not as financial instruments. Mattel adopted ASU 2016-13 and its related amendments (ASU 2018-19, ASU 2019-04, ASU 2019-05, ASU 2019-10, ASU 2019-11, and ASU 2020-02) on January 1, 2020. The adoption of this new accounting standard and its related amendments did not have a material impact on Mattel's consolidated financial statements. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement , which modifies the disclosure requirements on fair value measurements, including the consideration of costs and benefits. ASU 2018-13 was effective for interim and annual reporting periods beginning on January 1, 2020. The amendments on changes in unrealized gains and losses, the range and weighted-average of significant unobservable inputs used to develop Level 3 fair value measurements, and the narrative description of measurement uncertainty are applied prospectively for only the most recent interim or annual period presented in the initial fiscal year of adoption. All other amendments are applied retrospectively to all periods presented upon their effective date. Mattel adopted ASU 2018-13 on January 1, 2020. The adoption of this new accounting standard did not have a material impact on Mattel's consolidated financial statements. In March 2019, the FASB issued ASU 2019-02, Entertainment - Films - Other Assets - Film Costs (Subtopic 926-20) and Entertainment - Broadcasters - Intangibles - Goodwill and Other (Subtopic 920-350): Improvements to Accounting for Costs of Films and License Agreements for Program Materials , which aligns the accounting for production costs of episodic television series with the accounting of films by removing the content distinction for capitalization. Mattel adopted ASU 2019-02 on January 1, 2020. The adoption of this new accounting standard did not have a material impact on Mattel's consolidated financial statements. Accounting Pronouncements Not Yet Adopted In August 2018, the FASB issued ASU 2018-14, Compensation - Retirement Benefits - Defined Benefit Plans - General (Subtopic 715-20): Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans , which modifies the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. ASU 2018-14 will become effective for the fiscal year beginning on January 1, 2021. Early adoption is permitted and the amendments will be applied on a retrospective basis to all periods presented. Mattel is currently evaluating the impact of the adoption of ASU 2018-14 on its consolidated financial statements. In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes , which simplifies the accounting for incomes taxes by removing certain exceptions to the general principles in Topic 740. The amendments also improve consistent application of and simplify the accounting for other areas of Topic 740 by clarifying and amending existing guidance. ASU 2019-12 will become effective for the fiscal year beginning on January 1, 2021. Early adoption is permitted. The amendments related to changes in ownership of foreign equity method investments or foreign subsidiaries will be applied on a modified retrospective basis through a cumulative effect adjustment to retained earnings as of the beginning of the fiscal year of adoption. The amendments related to franchise taxes that are partially based on income will be applied on either a retrospective basis for all periods presented or a modified retrospective basis through a cumulative effect adjustment to retained earnings as of the beginning of the fiscal year of adoption. All other amendments will be applied on a prospective basis. Mattel is currently evaluating the impact of the adoption of ASU 2019-12 on its consolidated financial statements. |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories include the following: September 30, September 30, December 31, (In thousands) Raw materials and work in process $ 113,248 $ 107,562 $ 103,123 Finished goods 550,391 594,005 392,381 $ 663,639 $ 701,567 $ 495,504 |
Property, Plant, and Equipment
Property, Plant, and Equipment (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant, and Equipment | Property, plant, and equipment, net includes the following: September 30, September 30, December 31, (In thousands) Land $ 24,906 $ 25,086 $ 25,112 Buildings 297,067 299,489 302,956 Machinery and equipment 750,118 866,002 812,509 Software 374,596 413,903 364,391 Tools, dies, and molds 608,301 801,064 747,706 Leasehold improvements 172,095 211,455 183,250 2,227,083 2,616,999 2,435,924 Less: accumulated depreciation (1,729,646) (2,044,730) (1,885,785) $ 497,437 $ 572,269 $ 550,139 |
Goodwill (Tables)
Goodwill (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The change in the carrying amount of goodwill by operating segment for the nine months ended September 30, 2020 is shown below. Brand-specific goodwill held by foreign subsidiaries is allocated to the North America segment, thereby causing a foreign currency translation impact. December 31, Currency September 30, (In thousands) North America $ 732,430 $ (759) $ 731,671 International 450,713 (2,695) 448,018 American Girl 207,571 — 207,571 $ 1,390,714 $ (3,454) $ 1,387,260 |
Other Noncurrent Assets (Tables
Other Noncurrent Assets (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Other Noncurrent Assets | Other noncurrent assets include the following: September 30, September 30, December 31, (In thousands) Identifiable intangible assets (net of accumulated amortization of $277.5 million, $238.1 million, and $248.0 million, respectively) $ 519,861 $ 552,332 $ 553,114 Deferred income taxes 60,850 63,551 67,900 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Liabilities | Accrued liabilities include the following: September 30, September 30, December 31, (In thousands) Incentive compensation $ 97,635 $ 65,220 $ 122,923 Current lease liabilities 85,120 73,297 74,065 Advertising and promotion 98,597 117,561 93,804 Royalties 57,020 82,056 94,228 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt | Long-term debt includes the following: September 30, September 30, December 31, (In thousands) 2010 Senior Notes due October 2020 $ — $ 250,000 $ — 2010 Senior Notes due October 2040 250,000 250,000 250,000 2011 Senior Notes due November 2041 300,000 300,000 300,000 2013 Senior Notes due March 2023 250,000 250,000 250,000 2016 Senior Notes due August 2021 — 350,000 — 2017/2018 Senior Notes due December 2025 1,500,000 1,500,000 1,500,000 2019 Senior Notes due December 2027 600,000 — 600,000 Debt issuance costs and debt discount (47,249) (43,227) (53,249) $ 2,852,751 $ 2,856,773 $ 2,846,751 |
Other Noncurrent Liabilities (T
Other Noncurrent Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Payables and Accruals [Abstract] | |
Schedule of Other Noncurrent Liabilities | Other noncurrent liabilities include the following: September 30, September 30, December 31, (In thousands) Benefit plan liabilities $ 203,295 $ 183,214 $ 212,280 Noncurrent income tax liabilities 129,773 146,297 125,515 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
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 other comprehensive income (loss) and reclassifications out of accumulated other comprehensive income (loss) for each period: For the Three Months Ended September 30, 2020 Derivative Available-for-Sale Security Employee Currency Total (In thousands) Accumulated Other Comprehensive Income (Loss), Net of Tax, as of June 30, 2020 $ 18,026 $ (8,145) $ (166,279) $ (821,199) $ (977,597) Other comprehensive (loss) income before reclassifications (15,709) 178 (432) 13,032 (2,931) Amounts reclassified from accumulated other comprehensive income (loss) (7,069) — 1,723 — (5,346) Net (decrease) increase in other comprehensive (loss) income (22,778) 178 1,291 13,032 (8,277) Accumulated Other Comprehensive (Loss), Net of Tax, as of September 30, 2020 $ (4,752) $ (7,967) $ (164,988) $ (808,167) $ (985,874) For the Nine Months Ended September 30, 2020 Derivative Available-for-Sale Security Employee Currency Total (In thousands) Accumulated Other Comprehensive Income (Loss), Net of Tax, as of December 31, 2019 $ 11,041 $ (8,260) $ (169,857) $ (702,408) $ (869,484) Other comprehensive (loss) income before reclassifications (1,815) 293 67 (105,759) (107,214) Amounts reclassified from accumulated other comprehensive income (loss) (13,978) — 4,802 — (9,176) Net (decrease) increase in other comprehensive (loss) income (15,793) 293 4,869 (105,759) (116,390) Accumulated Other Comprehensive (Loss), Net of Tax, as of September 30, 2020 $ (4,752) $ (7,967) $ (164,988) $ (808,167) $ (985,874) For the Three Months Ended September 30, 2019 Derivative Available-for-Sale Security Employee Currency Total (In thousands) Accumulated Other Comprehensive Income (Loss), Net of Tax, as of June 30, 2019 $ 17,232 $ (6,614) $ (141,916) $ (708,364) $ (839,662) Other comprehensive income (loss) before reclassifications 12,996 (1,922) (359) (46,722) (36,007) Amounts reclassified from accumulated other comprehensive income (loss) (6,394) — 1,242 — (5,152) Net increase (decrease) in other comprehensive income (loss) 6,602 (1,922) 883 (46,722) (41,159) Accumulated Other Comprehensive Income (Loss), Net of Tax, as of September 30, 2019 $ 23,834 $ (8,536) $ (141,033) $ (755,086) $ (880,821) For the Nine Months Ended September 30, 2019 Derivative Available-for-Sale Security Employee Currency Total (In thousands) Accumulated Other Comprehensive Income (Loss), Net of Tax, as of December 31, 2018 $ 11,411 $ (6,547) $ (142,763) $ (721,327) $ (859,226) Other comprehensive income (loss) before reclassifications 22,068 (1,989) (2,183) (33,759) (15,863) Amounts reclassified from accumulated other comprehensive income (loss) (9,645) — 3,913 — (5,732) Net increase (decrease) in other comprehensive income (loss) 12,423 (1,989) 1,730 (33,759) (21,595) Accumulated Other Comprehensive Income (Loss), Net of Tax, as of September 30, 2019 $ 23,834 $ (8,536) $ (141,033) $ (755,086) $ (880,821) |
Schedule of Consolidated Statement of Operations Line Items Affected by Reclassifications from Accumulated Other Comprehensive Income (Loss) | The following table presents the classification and amount of the reclassifications from accumulated other comprehensive income (loss) to the consolidated statements of operations: For the Three Months Ended September 30, September 30, Statements of Operations (In thousands) Derivative Instruments Gain on foreign currency forward exchange contracts and other $ 7,031 $ 6,583 Cost of sales Tax effect 38 (189) Provision for income taxes $ 7,069 $ 6,394 Net income (loss) Employee Benefit Plans Amortization of prior service credit (a) $ 472 $ 494 Other non-operating (income) expense, net Recognized actuarial loss (a) (2,336) (1,736) Other non-operating (income) expense, net (1,864) (1,242) Tax effect 141 — Provision for income taxes $ (1,723) $ (1,242) Net income (loss) For the Nine Months Ended September 30, September 30, Statements of Operations (In thousands) Derivative Instruments Gain on foreign currency forward exchange contracts and other $ 13,845 $ 10,185 Cost of sales Tax effect 133 (540) Provision for income taxes $ 13,978 $ 9,645 Net income (loss) Employee Benefit Plans Amortization of prior service credit (a) $ 1,405 $ 1,480 Other non-operating (income) expense, net Recognized actuarial loss (a) (7,014) (5,208) Other non-operating (income) expense, net (5,609) (3,728) Tax effect 807 (185) Provision for income taxes $ (4,802) $ (3,913) Net income (loss) _______________________________________ (a) The amortization of prior service credit and recognized actuarial loss are included in the computation of net periodic benefit cost. Refer to "Note 15 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) | 9 Months Ended |
Sep. 30, 2020 | |
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 Fair Value Balance Sheet Classification September 30, September 30, December 31, (In thousands) Derivatives designated as hedging instruments Foreign currency forward exchange contracts and other $ 5,340 $ 22,077 $ 10,227 Prepaid expenses and other current assets Foreign currency forward exchange contracts and other 896 4,942 715 Other noncurrent assets Total derivatives designated as hedging instruments $ 6,236 $ 27,019 $ 10,942 Derivatives not designated as hedging instruments Foreign currency forward exchange contracts and other $ 2,337 $ 619 $ 4,060 Prepaid expenses and other current assets $ 8,573 $ 27,638 $ 15,002 Derivative Liabilities Fair Value Balance Sheet Classification September 30, September 30, December 31, (In thousands) Derivatives designated as hedging instruments Foreign currency forward exchange contracts and other $ 9,256 $ 426 $ 2,500 Accrued liabilities Foreign currency forward exchange contracts and other 3,602 48 213 Other noncurrent liabilities Total derivatives designated as hedging instruments $ 12,858 $ 474 $ 2,713 Derivatives not designated as hedging instruments Foreign currency forward exchange contracts and other $ 984 $ 2,736 $ 263 Accrued liabilities Foreign currency forward exchange contracts and other 99 — — Other noncurrent liabilities Total derivatives not designated as hedging instruments $ 1,083 $ 2,736 $ 263 $ 13,941 $ 3,210 $ 2,976 |
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 September 30, 2020 September 30, 2019 Statements of Amount of (Loss) Recognized in OCI Amount of Gain Reclassified from Accumulated OCI to Statement of Operations Amount of Gain Recognized in OCI Amount of Gain Reclassified from Accumulated OCI to Statement of Operations (In thousands) Derivatives designated as hedging instruments Foreign currency forward exchange contracts and other $ (15,709) $ 7,069 $ 12,996 $ 6,394 Cost of sales For the Nine Months Ended September 30, 2020 September 30, 2019 Amount of (Loss) Recognized in OCI Amount of Gain Reclassified from Accumulated OCI to Statement of Operations Amount of Gain Recognized in OCI Amount of Gain Reclassified from Accumulated OCI to Statement of Operations Statements of (In thousands) Derivatives designated as hedging instruments Foreign currency forward exchange contracts and other $ (1,815) $ 13,978 $ 22,068 $ 9,645 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 For the Three Months Ended September 30, September 30, (In thousands) Derivatives not designated as hedging instruments Foreign currency forward exchange contracts and other $ 232 $ (9,965) Other non-operating (income) expense, net Amount of (Loss) Recognized in the Statements of Operations Statements of Operations For the Nine Months Ended September 30, September 30, (In thousands) Derivatives not designated as hedging instruments Foreign currency forward exchange contracts and other $ (30,015) $ (6,097) Other non-operating (income) expense, net |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule of Financial Assets and Liabilities | Mattel's financial assets and liabilities include the following: September 30, 2020 Level 1 Level 2 Level 3 Total (In thousands) Assets Foreign currency forward exchange contracts and other (a) $ — $ 8,573 $ — $ 8,573 Available-for-sale security (b) 3,823 — — 3,823 Total assets $ 3,823 $ 8,573 $ — $ 12,396 Liabilities Foreign currency forward exchange contracts and other (a) $ — $ 13,941 $ — $ 13,941 September 30, 2019 Level 1 Level 2 Level 3 Total (In thousands) Assets Foreign currency forward exchange contracts and other (a) $ — $ 27,638 $ — $ 27,638 Available-for-sale security (b) 3,284 — — 3,284 Total assets $ 3,284 $ 27,638 $ — $ 30,922 Liabilities Foreign currency forward exchange contracts and other (a) $ — $ 3,210 $ — $ 3,210 December 31, 2019 Level 1 Level 2 Level 3 Total (In thousands) Assets Foreign currency forward exchange contracts and other (a) $ — $ 15,002 $ — $ 15,002 Available-for-sale security (b) 3,530 — — 3,530 Total assets $ 3,530 $ 15,002 $ — $ 18,532 Liabilities Foreign currency forward exchange contracts and other (a) $ — $ 2,976 $ — $ 2,976 ____________________________________________ (a) The fair value of the foreign currency forward exchange contracts and other commodity derivative instruments is based on dealer quotes of market forward rates and reflects the amount that Mattel would receive or pay at their maturity dates for contracts involving the same notional amounts, currencies, and maturity dates. (b) The fair value of the available-for-sale security is based on the quoted price on an active public exchange. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share | The following table reconciles basic and diluted earnings per common share for the three and nine months ended September 30, 2020 and 2019: For the Three Months Ended For the Nine Months Ended September 30, September 30, September 30, September 30, (In thousands, except per share amounts) Basic Net income (loss) $ 315,994 $ 70,596 $ (3,919) $ (213,687) Weighted-average number of common shares 347,628 346,698 347,206 346,210 Basic net income (loss) per common share $ 0.91 $ 0.20 $ (0.01) $ (0.62) Diluted Net income (loss) $ 315,994 $ 70,596 $ (3,919) $ (213,687) Weighted-average number of common shares 347,628 346,698 347,206 346,210 Dilutive stock options and restricted stock units ("RSUs") (a) 1,086 1,789 — — Weighted-average number of common and potential common shares 348,714 348,487 347,206 346,210 Diluted net income (loss) per common share $ 0.91 $ 0.20 $ (0.01) $ (0.62) _______________________________________ |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
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 Nine Months Ended September 30, September 30, September 30, September 30, (In thousands) Service cost $ 1,015 $ 923 $ 3,236 $ 3,557 Interest cost 3,729 4,812 11,247 14,478 Expected return on plan assets (4,899) (5,402) (14,722) (16,280) Amortization of prior service cost 37 16 123 48 Recognized actuarial loss 2,355 1,832 7,070 5,496 $ 2,237 $ 2,181 $ 6,954 $ 7,299 A summary of the components of net periodic benefit credit for Mattel's postretirement benefit plans is as follows: For the Three Months Ended For the Nine Months Ended September 30, September 30, September 30, September 30, (In thousands) Interest cost $ 35 $ 50 $ 104 $ 150 Amortization of prior service credit (509) (510) (1,528) (1,528) Recognized actuarial gain (19) (96) (56) (288) $ (493) $ (556) $ (1,480) $ (1,666) |
Share-Based Payments (Tables)
Share-Based Payments (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Share-based Payment Arrangement [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 Nine Months Ended September 30, September 30, September 30, September 30, (In thousands) Stock option compensation expense $ 3,095 $ 2,786 $ 8,602 $ 7,359 RSU compensation expense (a) 13,437 12,045 31,344 31,781 $ 16,532 $ 14,831 $ 39,946 $ 39,140 _______________________________________ (a) Includes compensation expense associated with Mattel's long-term incentive programs of $5.5 million and $9.4 million for the three and nine months ended September 30, 2020, respectively, and $3.9 million and $6.0 million for the three and nine months ended September 30, 2019, respectively. |
Other Selling and Administrat_2
Other Selling and Administrative Expenses (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
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 Nine Months Ended September 30, September 30, September 30, September 30, (In thousands) Design and development $ 45,495 $ 48,811 $ 136,609 $ 143,441 Identifiable intangible asset amortization 9,813 9,824 29,465 30,162 |
Foreign Currency Transaction _2
Foreign Currency Transaction Exposure (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Foreign Currency [Abstract] | |
Schedule of Currency Transaction Exposure | Currency transaction (losses) gains included in the consolidated statements of operations are as follows: For the Three Months Ended For the Nine Months Ended September 30, September 30, September 30, September 30, (In thousands) Operating income (loss) $ (6,461) $ 1,316 $ (8,406) $ (1,782) Other non-operating (income) expense, net (553) (1,254) (2,988) (1,804) Currency transaction (losses) gains, net $ (7,014) $ 62 $ (11,394) $ (3,586) |
Restructuring Charges (Tables)
Restructuring Charges (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Charges | In connection with the Capital Light program, Mattel recorded severance and other restructuring charges within the consolidated statements of operations as follows: For the Three Months Ended For the Nine Months Ended September 30, September 30, September 30, September 30, (In thousands) Cost of sales (a) $ 348 $ 8,430 $ 4,812 $ 11,913 Other selling and administrative expenses (b) 2,259 7,908 6,379 15,879 $ 2,607 $ 16,338 $ 11,191 $ 27,792 _______________________________________ (a) Severance and other restructuring costs recorded within cost of sales in the consolidated statements of operations include charges associated with the consolidation of manufacturing facilities. (b) Severance and other restructuring costs recorded within other selling and administrative expenses in the consolidated statements of operations are included in corporate and other expense in "Note 22 to the Consolidated Financial Statements—Segment Information." The following table summarizes Mattel's severance and other restructuring charges activity related to the Capital Light program for the nine months ended September 30, 2020: Liability at December 31, 2019 Charges (a) Payments/Utilization Liability at September 30, 2020 (In thousands) Severance $ 6,151 $ 6,039 $ (7,197) $ 4,993 Other restructuring charges 11,484 5,152 (16,548) 88 $ 17,635 $ 11,191 $ (23,745) $ 5,081 _______________________________________ (a) Other restructuring charges consist primarily of expenses associated with the consolidation of manufacturing facilities. The following table summarizes Mattel's severance charges activity related to other cost savings actions for the nine months ended September 30, 2020: Liability at December 31, 2019 Charges (a) Payments/Utilization Liability at September 30, 2020 (In thousands) Severance (a) $ — $ 18,142 $ (9,203) $ 8,939 _______________________________________ (a) Severance charges recorded within other selling and administrative expenses in the consolidated statements of operations are included in corporate and other expense in "Note 22 to the Consolidated Financial Statements—Segment Information." |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Segment Reporting [Abstract] | |
Schedule of Revenues from Segment to Consolidated | The following tables present information about gross sales, income (loss), and assets by segment. Mattel does not include sales adjustments such as trade discounts and other allowances in the calculation of segment gross sales. See reconciliations of gross sales to net sales in the tables below. Mattel records these adjustments in its financial accounting systems at the time of sale to each customer, but the adjustments generally are not associated with categories, brands, and individual products. For this reason, Mattel's Chief Operating Decision Maker uses total net sales and gross sales by segment as measures to evaluate segment performance. Sales adjustments are included in the determination of segment income (loss) from operations based on the adjustments recorded in the financial accounting systems. Segment income (loss) represents each segment's operating income (loss), while consolidated operating income (loss) represents income (loss) from operations before net interest, other non-operating (income) expense, 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, severance and other restructuring costs, share-based compensation, certain 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 Nine Months Ended September 30, September 30, September 30, September 30, (In thousands) Gross Sales by Segment North America $ 991,609 $ 880,441 $ 1,758,912 $ 1,697,186 International 773,056 721,705 1,423,120 1,567,390 American Girl 53,738 54,764 120,896 134,726 Gross sales 1,818,403 1,656,910 3,302,928 3,399,302 Sales adjustments (186,712) (175,353) (345,031) (368,436) Net sales $ 1,631,691 $ 1,481,557 $ 2,957,897 $ 3,030,866 For the Three Months Ended For the Nine Months Ended September 30, September 30, September 30, September 30, (In thousands) Segment Income (Loss) North America (a) $ 344,420 $ 194,368 $ 430,371 $ 202,923 International (a) 183,220 89,244 139,372 61,434 American Girl (10,296) (11,079) (41,595) (41,442) 517,344 272,533 528,148 222,915 Corporate and other expense (b) (133,187) (122,446) (339,943) (251,255) Operating income (loss) 384,157 150,087 188,205 (28,340) Interest expense 50,415 47,689 149,010 140,881 Interest (income) (455) (821) (3,564) (4,625) Other non-operating (income) expense, net (3,877) 1,264 (133) 2,874 Income (loss) before income taxes $ 338,074 $ 101,955 $ 42,892 $ (167,470) _______________________________________ (a) Segment income (loss) included severance and restructuring expenses of $0.3 million and $4.8 million, for the three and nine months ended September 30, 2020, respectively, and $8.4 million and $11.9 million, for the three and nine months ended September 30, 2019, respectively, which were allocated to the North America and International segments. Segment income (loss) for the three and nine months ended September 30, 2019 also included charges of $3.9 million and $34.3 million, respectively, attributable to the inclined sleeper product recalls, substantially all of which was recorded in the North America segment. (b) Corporate and other expense included severance and restructuring charges of $6.7 million and $30.5 million, for the three and nine months ended September 30, 2020, respectively, and $11.3 million and $34.4 million, for the three and nine months ended September 30, 2019. Corporate and other expense also included expenses related to inclined sleeper product recall litigation of $10.1 million and $19.2 million, for the three and nine months ended September 30, 2020, respectively, and incentive and share-based compensation for all periods presented. |
Schedule of Segment Assets | Segment assets are comprised of accounts receivable and inventories, net of applicable allowances and reserves. September 30, September 30, December 31, (In thousands) Assets by Segment North America $ 975,224 $ 916,250 $ 569,819 International 818,710 906,788 721,251 American Girl 66,333 60,171 35,004 1,860,267 1,883,209 1,326,074 Corporate and other 129,500 109,613 105,789 Accounts receivable and inventories, net $ 1,989,767 $ 1,992,822 $ 1,431,863 |
Schedule of Worldwide Revenues | The table below presents worldwide gross sales by categories: For the Three Months Ended For the Nine Months Ended September 30, September 30, September 30, September 30, (In thousands) Gross Sales by Categories Dolls $ 690,466 $ 567,598 $ 1,177,358 $ 1,093,890 Infant, Toddler, and Preschool 404,064 430,973 744,208 876,595 Vehicles 369,388 346,939 713,723 744,437 Action Figures, Building Sets, Games, and Other 354,485 311,400 667,639 684,380 Gross sales 1,818,403 1,656,910 3,302,928 3,399,302 Sales adjustments (186,712) (175,353) (345,031) (368,436) Net sales $ 1,631,691 $ 1,481,557 $ 2,957,897 $ 3,030,866 The table below presents supplemental disclosure of worldwide gross sales: For the Three Months Ended For the Nine Months Ended September 30, September 30, September 30, September 30, (In thousands) Gross Sales by Top 3 Power Brands Barbie $ 532,228 $ 412,840 $ 879,025 $ 762,849 Hot Wheels 312,788 293,295 607,885 619,030 Fisher-Price and Thomas & Friends 387,648 396,339 692,657 791,146 Other 585,739 554,436 1,123,361 1,226,277 Gross sales 1,818,403 1,656,910 3,302,928 3,399,302 Sales adjustments (186,712) (175,353) (345,031) (368,436) Net sales $ 1,631,691 $ 1,481,557 $ 2,957,897 $ 3,030,866 |
Schedule of Revenues by Geographic Area | The table below presents information by geographic area. Gross sales are attributed to countries based on location of the customer. For the Three Months Ended For the Nine Months Ended September 30, September 30, September 30, September 30, (In thousands) Gross Sales by Geographic Area North America $ 1,045,347 $ 935,205 $ 1,879,808 $ 1,831,912 International EMEA 482,590 408,660 881,895 859,116 Latin America 186,644 213,535 313,995 430,095 Asia Pacific 103,822 99,510 227,230 278,179 Total International 773,056 721,705 1,423,120 1,567,390 Gross sales 1,818,403 1,656,910 3,302,928 3,399,302 Sales adjustments (186,712) (175,353) (345,031) (368,436) Net sales $ 1,631,691 $ 1,481,557 $ 2,957,897 $ 3,030,866 |
Accounts Receivable (Details)
Accounts Receivable (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2019 |
Receivables [Abstract] | |||
Accounts receivable, allowances for credit losses | $ 18.5 | $ 18.5 | $ 22.4 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2019 |
Inventory Disclosure [Abstract] | |||
Raw materials and work in process | $ 113,248 | $ 103,123 | $ 107,562 |
Finished goods | 550,391 | 392,381 | 594,005 |
Inventories | $ 663,639 | $ 495,504 | $ 701,567 |
Property, Plant, and Equipmen_2
Property, Plant, and Equipment (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2019 |
Property, Plant and Equipment [Line Items] | |||
Property, plant, and equipment, gross | $ 2,227,083 | $ 2,435,924 | $ 2,616,999 |
Less: accumulated depreciation | (1,729,646) | (1,885,785) | (2,044,730) |
Property, plant, and equipment, net | 497,437 | 550,139 | 572,269 |
Land | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant, and equipment, gross | 24,906 | 25,112 | 25,086 |
Buildings | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant, and equipment, gross | 297,067 | 302,956 | 299,489 |
Machinery and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant, and equipment, gross | 750,118 | 812,509 | 866,002 |
Software | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant, and equipment, gross | 374,596 | 364,391 | 413,903 |
Tools, dies, and molds | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant, and equipment, gross | 608,301 | 747,706 | 801,064 |
Leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant, and equipment, gross | 172,095 | 183,250 | $ 211,455 |
Land and building | Discontinued Operations, Held-for-sale | |||
Property, Plant and Equipment [Line Items] | |||
Disposal group, asset, book value | $ 8,400 | $ 12,100 |
Goodwill (Details)
Goodwill (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2020USD ($) | |
Goodwill [Roll Forward] | |
Balance at beginning of period | $ 1,390,714 |
Currency exchange rate impact | (3,454) |
Balance at end of period | 1,387,260 |
North America | |
Goodwill [Roll Forward] | |
Balance at beginning of period | 732,430 |
Currency exchange rate impact | (759) |
Balance at end of period | 731,671 |
International | |
Goodwill [Roll Forward] | |
Balance at beginning of period | 450,713 |
Currency exchange rate impact | (2,695) |
Balance at end of period | 448,018 |
American Girl | |
Goodwill [Roll Forward] | |
Balance at beginning of period | 207,571 |
Currency exchange rate impact | 0 |
Balance at end of period | $ 207,571 |
Other Noncurrent Assets - Sched
Other Noncurrent Assets - Schedule of Other Noncurrent Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2019 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||
Identifiable intangible assets (net of accumulated amortization of $277.5 million, $238.1 million, and $248.0 million, respectively) | $ 519,861 | $ 553,114 | $ 552,332 |
Identifiable intangible assets, accumulated amortization | 277,500 | 248,000 | 238,100 |
Deferred income taxes | $ 60,850 | $ 67,900 | $ 63,551 |
Other Noncurrent Assets - Narra
Other Noncurrent Assets - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||||
Impairment of intangible assets | $ 0 | $ 0 | $ 0 | $ 0 |
Accrued Liabilities (Details)
Accrued Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2019 |
Payables and Accruals [Abstract] | |||
Incentive compensation | $ 97,635 | $ 122,923 | $ 65,220 |
Current lease liabilities | 85,120 | 74,065 | 73,297 |
Advertising and promotion | 98,597 | 93,804 | 117,561 |
Royalties | $ 57,020 | $ 94,228 | $ 82,056 |
Seasonal Financing (Details)
Seasonal Financing (Details) | Dec. 20, 2017USD ($)trading_day | Oct. 21, 2020USD ($) | Sep. 30, 2020USD ($) | Dec. 31, 2019USD ($) | Sep. 30, 2019USD ($) |
Debt Instrument [Line Items] | |||||
Short-term borrowings | $ 400,000,000 | $ 0 | $ 230,000,000 | ||
Subsequent Event | |||||
Debt Instrument [Line Items] | |||||
Short-term borrowings | $ 76,300,000 | ||||
Repayments of short-term borrowings | $ 323,700,000 | ||||
Credit Agreement | |||||
Debt Instrument [Line Items] | |||||
Outstanding letters of credit | 13,000,000 | $ 55,000,000 | $ 65,000,000 | ||
Revolving Credit Facility | Credit Agreement | |||||
Debt Instrument [Line Items] | |||||
Aggregate commitment under the credit facility | 1,600,000,000 | ||||
Interest coverage ratio minimum for covenant compliance | 1 | ||||
Excess availability under credit facility | $ 100,000,000 | $ 100,000,000 | |||
Availability threshold (as a percent) | 10.00% | ||||
Threshold consecutive trading days | trading_day | 30 | ||||
Revolving Credit Facility | Credit Agreement | Minimum | LIBOR | |||||
Debt Instrument [Line Items] | |||||
Interest rate margin for loans (as a percent) | 1.25% | ||||
Revolving Credit Facility | Credit Agreement | Minimum | Base Rate | |||||
Debt Instrument [Line Items] | |||||
Interest rate margin for loans (as a percent) | 0.25% | ||||
Revolving Credit Facility | Credit Agreement | Maximum | LIBOR | |||||
Debt Instrument [Line Items] | |||||
Interest rate margin for loans (as a percent) | 2.75% | ||||
Revolving Credit Facility | Credit Agreement | Maximum | Base Rate | |||||
Debt Instrument [Line Items] | |||||
Interest rate margin for loans (as a percent) | 1.75% | ||||
Revolving Credit Facility, Asset Based | Credit Agreement | |||||
Debt Instrument [Line Items] | |||||
Aggregate commitment under the credit facility | $ 1,310,000,000 | ||||
Revolving Credit Facility, Secured | Credit Agreement | |||||
Debt Instrument [Line Items] | |||||
Aggregate commitment under the credit facility | $ 294,000,000 |
Long-Term Debt (Details)
Long-Term Debt (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2019 |
Debt Instrument [Line Items] | |||
Long-term debt | $ 2,900,000 | $ 2,900,000 | $ 2,900,000 |
Debt issuance costs and debt discount | (47,249) | (53,249) | (43,227) |
Long-term debt | 2,852,751 | 2,846,751 | 2,856,773 |
2010 Senior Notes due October 2020 | Senior Notes | |||
Debt Instrument [Line Items] | |||
Long-term debt | 0 | 0 | 250,000 |
2010 Senior Notes due October 2040 | Senior Notes | |||
Debt Instrument [Line Items] | |||
Long-term debt | 250,000 | 250,000 | 250,000 |
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 2023 | Senior Notes | |||
Debt Instrument [Line Items] | |||
Long-term debt | 250,000 | 250,000 | 250,000 |
2016 Senior Notes due August 2021 | Senior Notes | |||
Debt Instrument [Line Items] | |||
Long-term debt | 0 | 0 | 350,000 |
2017/2018 Senior Notes due December 2025 | Senior Notes | |||
Debt Instrument [Line Items] | |||
Long-term debt | 1,500,000 | 1,500,000 | 1,500,000 |
2019 Senior Notes due December 2027 | Senior Notes | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 600,000 | $ 600,000 | $ 0 |
Other Noncurrent Liabilities (D
Other Noncurrent Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2019 |
Payables and Accruals [Abstract] | |||
Benefit plan liabilities | $ 203,295 | $ 212,280 | $ 183,214 |
Noncurrent income tax liabilities | $ 129,773 | $ 125,515 | $ 146,297 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) - Changes in Accumulated Balances (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||||
Beginning balance | $ 86,148 | $ 157,883 | $ 491,714 | $ 426,195 | $ 523,375 | $ 666,901 | $ 491,714 | $ 666,901 |
Other comprehensive income (loss) before reclassifications | (2,931) | (36,007) | (107,214) | (15,863) | ||||
Amounts reclassified from accumulated other comprehensive income (loss) | (5,346) | (5,152) | (9,176) | (5,732) | ||||
Other Comprehensive Loss, Net of Tax | (8,277) | 28,286 | (136,399) | (41,159) | (1,728) | 21,292 | (116,390) | (21,595) |
Ending balance | 404,507 | 86,148 | 157,883 | 463,756 | 426,195 | 523,375 | 404,507 | 463,756 |
Total | ||||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||||
Beginning balance | (977,597) | (1,005,883) | (869,484) | (839,662) | (837,934) | (859,226) | (869,484) | (859,226) |
Other Comprehensive Loss, Net of Tax | (8,277) | 28,286 | (136,399) | (41,159) | (1,728) | 21,292 | ||
Ending balance | (985,874) | (977,597) | (1,005,883) | (880,821) | (839,662) | (837,934) | (985,874) | (880,821) |
Derivative Instruments | ||||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||||
Beginning balance | 18,026 | 11,041 | 17,232 | 11,411 | 11,041 | 11,411 | ||
Other comprehensive income (loss) before reclassifications | (15,709) | 12,996 | (1,815) | 22,068 | ||||
Amounts reclassified from accumulated other comprehensive income (loss) | (7,069) | (6,394) | (13,978) | (9,645) | ||||
Other Comprehensive Loss, Net of Tax | (22,778) | 6,602 | (15,793) | 12,423 | ||||
Ending balance | (4,752) | 18,026 | 23,834 | 17,232 | (4,752) | 23,834 | ||
Available-for-Sale Security | ||||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||||
Beginning balance | (8,145) | (8,260) | (6,614) | (6,547) | (8,260) | (6,547) | ||
Other comprehensive income (loss) before reclassifications | 178 | (1,922) | 293 | (1,989) | ||||
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | 0 | 0 | 0 | ||||
Other Comprehensive Loss, Net of Tax | 178 | (1,922) | 293 | (1,989) | ||||
Ending balance | (7,967) | (8,145) | (8,536) | (6,614) | (7,967) | (8,536) | ||
Employee Benefit Plans | ||||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||||
Beginning balance | (166,279) | (169,857) | (141,916) | (142,763) | (169,857) | (142,763) | ||
Other comprehensive income (loss) before reclassifications | (432) | (359) | 67 | (2,183) | ||||
Amounts reclassified from accumulated other comprehensive income (loss) | 1,723 | 1,242 | 4,802 | 3,913 | ||||
Other Comprehensive Loss, Net of Tax | 1,291 | 883 | 4,869 | 1,730 | ||||
Ending balance | (164,988) | (166,279) | (141,033) | (141,916) | (164,988) | (141,033) | ||
Currency Translation Adjustments | ||||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||||
Beginning balance | (821,199) | $ (702,408) | (708,364) | $ (721,327) | (702,408) | (721,327) | ||
Other comprehensive income (loss) before reclassifications | 13,032 | (46,722) | (105,759) | (33,759) | ||||
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | 0 | 0 | 0 | ||||
Other Comprehensive Loss, Net of Tax | 13,032 | (46,722) | (105,759) | (33,759) | ||||
Ending balance | $ (808,167) | $ (821,199) | $ (755,086) | $ (708,364) | $ (808,167) | $ (755,086) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Loss) - Reclassification from AOCI (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Provision for income taxes | $ (22,080) | $ (31,359) | $ (46,811) | $ (46,217) | ||||
Other non-operating (income) expense, net | 3,877 | (1,264) | 133 | (2,874) | ||||
Loss before income taxes | 338,074 | 101,955 | 42,892 | (167,470) | ||||
Net Income (Loss) | 315,994 | $ (109,172) | $ (210,741) | 70,596 | $ (107,987) | $ (176,296) | (3,919) | (213,687) |
Reclassification Out of Accumulated Other Comprehensive Income (Loss) | Derivative Instruments | ||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Cost of sales | 7,031 | 6,583 | 13,845 | 10,185 | ||||
Provision for income taxes | 38 | (189) | 133 | (540) | ||||
Net Income (Loss) | 7,069 | 6,394 | 13,978 | 9,645 | ||||
Reclassification Out of Accumulated Other Comprehensive Income (Loss) | Employee Benefit Plans | ||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Provision for income taxes | 141 | 0 | 807 | (185) | ||||
Loss before income taxes | (1,864) | (1,242) | (5,609) | (3,728) | ||||
Net Income (Loss) | (1,723) | (1,242) | (4,802) | (3,913) | ||||
Reclassification Out of Accumulated Other Comprehensive Income (Loss) | Amortization of prior service credit | ||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Other non-operating (income) expense, net | 472 | 494 | 1,405 | 1,480 | ||||
Reclassification Out of Accumulated Other Comprehensive Income (Loss) | Recognized actuarial loss | ||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Other non-operating (income) expense, net | $ (2,336) | $ (1,736) | $ (7,014) | $ (5,208) |
Accumulated Other Comprehensi_5
Accumulated Other Comprehensive Income (Loss) - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Currency translation adjustments (loss) gain | $ (8,277) | $ 28,286 | $ (136,399) | $ (41,159) | $ (1,728) | $ 21,292 | $ (116,390) | $ (21,595) |
Currency Translation Adjustments | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Currency translation adjustments (loss) gain | $ 13,032 | $ (46,722) | $ (105,759) | $ (33,759) |
Derivative Instruments - Narrat
Derivative Instruments - Narrative (Details) - Foreign currency forward exchange contracts and other - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Notional amount | $ 903.1 | $ 742 | $ 832.4 |
Maximum | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Derivative term of contracts | 18 months |
Derivative Instruments - Assets
Derivative Instruments - Assets and Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2019 |
Derivatives, Fair Value [Line Items] | |||
Derivative assets, fair value | $ 8,573 | $ 15,002 | $ 27,638 |
Derivative liabilities, fair value | 13,941 | 2,976 | 3,210 |
Derivatives designated as hedging instruments | |||
Derivatives, Fair Value [Line Items] | |||
Derivative assets, fair value | 6,236 | 10,942 | 27,019 |
Derivative liabilities, fair value | 12,858 | 2,713 | 474 |
Derivatives designated as hedging instruments | Foreign currency forward exchange contracts and other | Prepaid expenses and other current assets | |||
Derivatives, Fair Value [Line Items] | |||
Derivative assets, fair value | 5,340 | 10,227 | 22,077 |
Derivatives designated as hedging instruments | Foreign currency forward exchange contracts and other | Other noncurrent assets | |||
Derivatives, Fair Value [Line Items] | |||
Derivative assets, fair value | 896 | 715 | 4,942 |
Derivatives designated as hedging instruments | Foreign currency forward exchange contracts and other | Accrued liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Derivative liabilities, fair value | 9,256 | 2,500 | 426 |
Derivatives designated as hedging instruments | Foreign currency forward exchange contracts and other | Other noncurrent liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Derivative liabilities, fair value | 3,602 | 213 | 48 |
Derivatives not designated as hedging instruments | Foreign currency forward exchange contracts and other | |||
Derivatives, Fair Value [Line Items] | |||
Derivative liabilities, fair value | 1,083 | 263 | 2,736 |
Derivatives not designated as hedging instruments | Foreign currency forward exchange contracts and other | Prepaid expenses and other current assets | |||
Derivatives, Fair Value [Line Items] | |||
Derivative assets, fair value | 2,337 | 4,060 | 619 |
Derivatives not designated as hedging instruments | Foreign currency forward exchange contracts and other | Accrued liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Derivative liabilities, fair value | 984 | 263 | 2,736 |
Derivatives not designated as hedging instruments | Foreign currency forward exchange contracts and other | Other noncurrent liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Derivative liabilities, fair value | $ 99 | $ 0 | $ 0 |
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 and other - Cost of sales - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of (Loss) Recognized in OCI | $ (15,709) | $ 12,996 | $ (1,815) | $ 22,068 |
Amount of Gain Reclassified from Accumulated OCI to Statement of Operations | $ 7,069 | $ 6,394 | $ 13,978 | $ 9,645 |
Derivative Instruments - Not De
Derivative Instruments - Not Designated as Hedging Instruments by Classification and Amount of Gains and Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Derivatives not designated as hedging instruments | Foreign currency forward exchange contracts and other | Other non-operating (income) expense, net | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of gain (loss) recognized in the statements of operations | $ 232 | $ (9,965) | $ (30,015) | $ (6,097) |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Measured on Recurring Basis (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2019 |
Assets | |||
Available-for-sale security | $ 3,823 | $ 3,530 | $ 3,284 |
Total assets | 12,396 | 18,532 | 30,922 |
Level 1 | |||
Assets | |||
Available-for-sale security | 3,823 | 3,530 | 3,284 |
Total assets | 3,823 | 3,530 | 3,284 |
Level 2 | |||
Assets | |||
Available-for-sale security | 0 | 0 | 0 |
Total assets | 8,573 | 15,002 | 27,638 |
Level 3 | |||
Assets | |||
Available-for-sale security | 0 | 0 | 0 |
Total assets | 0 | 0 | 0 |
Foreign currency forward exchange contracts and other | |||
Assets | |||
Foreign currency forward exchange contracts and other | 8,573 | 15,002 | 27,638 |
Liabilities | |||
Foreign currency forward exchange contracts and other | 13,941 | 2,976 | 3,210 |
Foreign currency forward exchange contracts and other | Level 1 | |||
Assets | |||
Foreign currency forward exchange contracts and other | 0 | 0 | 0 |
Liabilities | |||
Foreign currency forward exchange contracts and other | 0 | 0 | 0 |
Foreign currency forward exchange contracts and other | Level 2 | |||
Assets | |||
Foreign currency forward exchange contracts and other | 8,573 | 15,002 | 27,638 |
Liabilities | |||
Foreign currency forward exchange contracts and other | 13,941 | 2,976 | 3,210 |
Foreign currency forward exchange contracts and other | Level 3 | |||
Assets | |||
Foreign currency forward exchange contracts and other | 0 | 0 | 0 |
Liabilities | |||
Foreign currency forward exchange contracts and other | $ 0 | $ 0 | $ 0 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2019 |
Fair Value Disclosures [Abstract] | |||
Estimated fair value of long-term debt | $ 2,980 | $ 3,000 | $ 2,840 |
Carrying value of long-term debt | $ 2,900 | $ 2,900 | $ 2,900 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Basic | ||||||||
Net Income (Loss) | $ 315,994 | $ (109,172) | $ (210,741) | $ 70,596 | $ (107,987) | $ (176,296) | $ (3,919) | $ (213,687) |
Weighted average number of common shares (in shares) | 347,628 | 346,698 | 347,206 | 346,210 | ||||
Basic net (loss) income per common share (USD per share) | $ 0.91 | $ 0.20 | $ (0.01) | $ (0.62) | ||||
Diluted | ||||||||
Net Income (Loss) | $ 315,994 | $ (109,172) | $ (210,741) | $ 70,596 | $ (107,987) | $ (176,296) | $ (3,919) | $ (213,687) |
Weighted average number of common shares (in shares) | 347,628 | 346,698 | 347,206 | 346,210 | ||||
Dilutive stock options and non-participating RSUs (in shares) | 1,086 | 1,789 | 0 | 0 | ||||
Weighted average number of common and potential common shares (in shares) | 348,714 | 348,487 | 347,206 | 346,210 | ||||
Diluted net (loss) income per common share (USD per share) | $ 0.91 | $ 0.20 | $ (0.01) | $ (0.62) | ||||
Antidilutive securities excluded from calculation of earnings per share (in shares) | 22,300 | 25,300 |
Employee Benefit Plans - Compon
Employee Benefit Plans - Components of Net Periodic Benefit Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Defined Benefit Pension Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 1,015 | $ 923 | $ 3,236 | $ 3,557 |
Interest cost | 3,729 | 4,812 | 11,247 | 14,478 |
Expected return on plan assets | (4,899) | (5,402) | (14,722) | (16,280) |
Amortization of prior service cost (credit) | 37 | 16 | 123 | 48 |
Recognized actuarial loss (gain) | 2,355 | 1,832 | 7,070 | 5,496 |
Net periodic benefit cost (credit) | 2,237 | 2,181 | 6,954 | 7,299 |
Postretirement Benefit Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Interest cost | 35 | 50 | 104 | 150 |
Amortization of prior service cost (credit) | (509) | (510) | (1,528) | (1,528) |
Recognized actuarial loss (gain) | (19) | (96) | (56) | (288) |
Net periodic benefit cost (credit) | $ (493) | $ (556) | $ (1,480) | $ (1,666) |
Employee Benefit Plans - Narrat
Employee Benefit Plans - Narrative (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2020USD ($) | |
Retirement Benefits [Abstract] | |
Cash contributions made during the period | $ 9 |
Expected additional cash contributions | $ 3 |
Share-Based Payments - Narrativ
Share-Based Payments - Narrative (Details) | 9 Months Ended | |
Sep. 30, 2020USD ($)incentive_program | Sep. 30, 2019USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of incentive programs | incentive_program | 3 | |
Proceeds from exercise of stock options | $ 0 | $ 0 |
Stock option compensation expense | Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Period of stock option expiration from date of grant | 10 years | |
Share-based Payment Arrangement [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total unrecognized compensation expense related to unvested share-based payments | $ 88,300,000 | |
Share-based Payment Arrangement [Member] | Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
General vesting period | 3 years | |
Weighted-average period for unrecognized compensation expense expected to be recognized | 2 years 1 month 6 days |
Share-Based Payments - Compensa
Share-Based Payments - Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | $ 16,532 | $ 14,831 | $ 39,946 | $ 39,140 |
Stock option compensation expense | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | 3,095 | 2,786 | 8,602 | 7,359 |
RSU compensation expense | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | 13,437 | 12,045 | 31,344 | 31,781 |
Long-term Incentive Program | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | $ 5,500 | $ 3,900 | $ 9,400 | $ 6,000 |
Other Selling and Administrat_3
Other Selling and Administrative Expenses (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Other Income and Expenses [Abstract] | ||||
Design and development | $ 45,495 | $ 48,811 | $ 136,609 | $ 143,441 |
Identifiable intangible asset amortization | $ 9,813 | $ 9,824 | $ 29,465 | $ 30,162 |
Foreign Currency Transaction _3
Foreign Currency Transaction Exposure (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Currency Transaction Gains (Losses) [Line Items] | ||||
Currency transaction (losses) gains, net | $ (7,014) | $ 62 | $ (11,394) | $ (3,586) |
Operating income (loss) | ||||
Currency Transaction Gains (Losses) [Line Items] | ||||
Currency transaction (losses) gains, net | (6,461) | 1,316 | (8,406) | (1,782) |
Other non-operating (income) expense, net | ||||
Currency Transaction Gains (Losses) [Line Items] | ||||
Currency transaction (losses) gains, net | $ (553) | $ (1,254) | $ (2,988) | $ (1,804) |
Restructuring Charges - Schedul
Restructuring Charges - Schedule of Capital Light Restructuring Charges (Details) - Capital Light Initiative - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | $ 2,607 | $ 16,338 | $ 11,191 | $ 27,792 |
Cost of sales | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 348 | 8,430 | 4,812 | 11,913 |
Other selling and administrative expenses | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | $ 2,259 | $ 7,908 | $ 6,379 | $ 15,879 |
Restructuring Charges - Severan
Restructuring Charges - Severance and Other Restructuring Charges Activity (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Capital Light Initiative | ||||
Restructuring Reserve [Roll Forward] | ||||
Liability at beginning of period | $ 17,635 | |||
Charges | $ 2,607 | $ 16,338 | 11,191 | $ 27,792 |
Payments/Utilization | (23,745) | |||
Liability at end of period | 5,081 | 5,081 | ||
Capital Light Initiative | Severance | ||||
Restructuring Reserve [Roll Forward] | ||||
Liability at beginning of period | 6,151 | |||
Charges | 6,039 | |||
Payments/Utilization | (7,197) | |||
Liability at end of period | 4,993 | 4,993 | ||
Capital Light Initiative | Other restructuring charges | ||||
Restructuring Reserve [Roll Forward] | ||||
Liability at beginning of period | 11,484 | |||
Charges | 5,152 | |||
Payments/Utilization | (16,548) | |||
Liability at end of period | 88 | 88 | ||
Restructuring Plan, Other | Severance | ||||
Restructuring Reserve [Roll Forward] | ||||
Liability at beginning of period | 0 | |||
Charges | 18,142 | |||
Payments/Utilization | (9,203) | |||
Liability at end of period | $ 8,939 | $ 8,939 |
Restructuring Charges - Narrati
Restructuring Charges - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | May 04, 2020 | |
Restructuring Cost and Reserve [Line Items] | |||||
Non-manufacturing workforce reduction commitment, percentage | 4.00% | ||||
Capital Light Initiative | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Severance and other restructuring charges incurred to date | $ 48,800 | $ 48,800 | |||
Restructuring and related cost, cost incurred to date, non-cash charges | 14,000 | 14,000 | |||
Expected restructuring costs | 38,000 | 38,000 | |||
Restructuring charges | 2,607 | $ 16,338 | 11,191 | $ 27,792 | |
Structural Simplification Cost Savings Program | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | 6,000 | ||||
Severance | Capital Light Initiative | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | 6,039 | ||||
Severance | Other Cost Savings Actions | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Expected restructuring costs | $ 2,000 | $ 2,000 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | ||||
Provision for income taxes | $ 22,080,000 | $ 31,359,000 | $ 46,811,000 | $ 46,217,000 |
Discrete tax expense (benefit) | 1,700,000 | 11,400,000 | ||
Discrete tax benefit related to reassessment of future realizability of certain foreign deferred tax assets | 13,400,000 | 13,400,000 | ||
Discrete tax benefit expense related to reassessments of prior year tax liabilities and income taxes recorded on discrete basis in various jurisdictions | 13,500,000 | 12,300,000 | ||
Current federal tax benefit | 0 | $ 0 | 0 | $ 0 |
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 | $ 11,200,000 | $ 11,200,000 |
Contingencies (Details)
Contingencies (Details) $ in Millions | Apr. 26, 2015 | Jan. 31, 2010USD ($) | Apr. 30, 1999USD ($) | Jan. 31, 2020numberOfStockholders | Sep. 30, 2020childclasslawsuit | Nov. 11, 2014USD ($) | Jul. 26, 2013USD ($) |
Loss Contingencies [Line Items] | |||||||
Number of stockholders who filed complaints | numberOfStockholders | 2 | ||||||
Yellowstone | |||||||
Loss Contingencies [Line Items] | |||||||
Alleged loss of profits | $ 1 | ||||||
Unpaid accounts receivable | 4 | ||||||
Alleged business investments | 3 | ||||||
Initial estimate of loss of profits | $ 1 | ||||||
Court awarded damages from counterclaim | $ 4 | ||||||
Damages awarded, including attorney fees, inflation and interest | $ 17 | ||||||
Counter claim awarded, including inflation | $ 7.5 | $ 7.5 | |||||
Damages award including inflation and interest | $ 14.5 | ||||||
Fine on claims (as a percent) | 1.00% | ||||||
Sleeper | |||||||
Loss Contingencies [Line Items] | |||||||
Number of additional lawsuits pending | lawsuit | 36 | ||||||
Number of children with injuries or fatalities related to lawsuits | child | 40 | ||||||
Minimum | Sleeper | |||||||
Loss Contingencies [Line Items] | |||||||
Number of consumer classes | class | 15 |
Segment Information - Revenues
Segment Information - Revenues and Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Segment Reporting Information [Line Items] | ||||
Revenues | $ 1,631,691 | $ 1,481,557 | $ 2,957,897 | $ 3,030,866 |
Operating income (loss) | 384,157 | 150,087 | 188,205 | (28,340) |
Interest expense | 50,415 | 47,689 | 149,010 | 140,881 |
Interest (income) | (455) | (821) | (3,564) | (4,625) |
Other non-operating (income) expense, net | (3,877) | 1,264 | (133) | 2,874 |
Income (Loss) Before Income Taxes | 338,074 | 101,955 | 42,892 | (167,470) |
North America and International | ||||
Segment Reporting Information [Line Items] | ||||
Total product recall charges | 3,900 | 34,300 | ||
Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 1,818,403 | 1,656,910 | 3,302,928 | 3,399,302 |
Operating income (loss) | 517,344 | 272,533 | 528,148 | 222,915 |
Operating Segments | North America | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 991,609 | 880,441 | 1,758,912 | 1,697,186 |
Operating income (loss) | 344,420 | 194,368 | 430,371 | 202,923 |
Operating Segments | International | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 773,056 | 721,705 | 1,423,120 | 1,567,390 |
Operating income (loss) | 183,220 | 89,244 | 139,372 | 61,434 |
Operating Segments | American Girl | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 53,738 | 54,764 | 120,896 | 134,726 |
Operating income (loss) | (10,296) | (11,079) | (41,595) | (41,442) |
Operating Segments | North America and International | ||||
Segment Reporting Information [Line Items] | ||||
Severance and restructuring charges | 300 | 8,400 | 4,800 | 11,900 |
Corporate and other expense | ||||
Segment Reporting Information [Line Items] | ||||
Operating income (loss) | (133,187) | (122,446) | (339,943) | (251,255) |
Severance and restructuring charges | 6,700 | 11,300 | 30,500 | 34,400 |
Total product recall charges | 10,100 | 19,200 | ||
Sales adjustments | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | $ (186,712) | $ (175,353) | $ (345,031) | $ (368,436) |
Segment Information - Assets (D
Segment Information - Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2019 |
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Accounts receivable and inventories, net | $ 1,989,767 | $ 1,431,863 | $ 1,992,822 |
Operating Segments | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Accounts receivable and inventories, net | 1,860,267 | 1,326,074 | 1,883,209 |
Operating Segments | North America | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Accounts receivable and inventories, net | 975,224 | 569,819 | 916,250 |
Operating Segments | International | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Accounts receivable and inventories, net | 818,710 | 721,251 | 906,788 |
Operating Segments | American Girl | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Accounts receivable and inventories, net | 66,333 | 35,004 | 60,171 |
Corporate and other | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Accounts receivable and inventories, net | $ 129,500 | $ 105,789 | $ 109,613 |
Segment Information - Worldwide
Segment Information - Worldwide Revenues by Categories (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | $ 1,631,691 | $ 1,481,557 | $ 2,957,897 | $ 3,030,866 |
Operating Segments | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 1,818,403 | 1,656,910 | 3,302,928 | 3,399,302 |
Operating Segments | Dolls | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 690,466 | 567,598 | 1,177,358 | 1,093,890 |
Operating Segments | Infant, Toddler, and Preschool | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 404,064 | 430,973 | 744,208 | 876,595 |
Operating Segments | Vehicles | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 369,388 | 346,939 | 713,723 | 744,437 |
Operating Segments | Action Figures, Building Sets, Games, and Other | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 354,485 | 311,400 | 667,639 | 684,380 |
Sales adjustments | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | $ (186,712) | $ (175,353) | $ (345,031) | $ (368,436) |
Segment Information - Worldwi_2
Segment Information - Worldwide Revenues by Top 3 Power Brands (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | $ 1,631,691 | $ 1,481,557 | $ 2,957,897 | $ 3,030,866 |
Operating Segments | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 1,818,403 | 1,656,910 | 3,302,928 | 3,399,302 |
Operating Segments | Barbie | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 532,228 | 412,840 | 879,025 | 762,849 |
Operating Segments | Hot Wheels | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 312,788 | 293,295 | 607,885 | 619,030 |
Operating Segments | Fisher-Price and Thomas & Friends | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 387,648 | 396,339 | 692,657 | 791,146 |
Operating Segments | Other | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 585,739 | 554,436 | 1,123,361 | 1,226,277 |
Sales adjustments | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | $ (186,712) | $ (175,353) | $ (345,031) | $ (368,436) |
Segment Information - Revenue_2
Segment Information - Revenues by Geographic Area (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Segment Reporting Information [Line Items] | ||||
Revenues | $ 1,631,691 | $ 1,481,557 | $ 2,957,897 | $ 3,030,866 |
Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 1,818,403 | 1,656,910 | 3,302,928 | 3,399,302 |
Operating Segments | North America | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 991,609 | 880,441 | 1,758,912 | 1,697,186 |
Operating Segments | North America | North America | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 1,045,347 | 935,205 | 1,879,808 | 1,831,912 |
Operating Segments | International | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 773,056 | 721,705 | 1,423,120 | 1,567,390 |
Operating Segments | International | EMEA | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 482,590 | 408,660 | 881,895 | 859,116 |
Operating Segments | International | Latin America | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 186,644 | 213,535 | 313,995 | 430,095 |
Operating Segments | International | Asia Pacific | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 103,822 | 99,510 | 227,230 | 278,179 |
Sales adjustments | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | $ (186,712) | $ (175,353) | $ (345,031) | $ (368,436) |