Cover
Cover - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Feb. 14, 2022 | Jun. 30, 2021 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2021 | ||
Current Fiscal Year End Date | --12-31 | ||
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 Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 7,014,261,001 | ||
Entity Common Stock, Shares Outstanding | 352,240,900 | ||
Documents Incorporated by Reference | Portions of the Mattel, Inc. 2022 Proxy Statement, filed with the Securities and Exchange Commission (“SEC”) within 120 days after the closing of the registrant's fiscal year (incorporated into Part III to the extent stated herein). | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | MATTEL INC /DE/ | ||
Entity Central Index Key | 0000063276 |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2021 | |
Audit Information [Abstract] | |
Auditor Name | PricewaterhouseCoopers LLP |
Auditor Location | Los Angeles, California |
Auditor Firm ID | 238 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Current Assets | ||
Cash and equivalents | $ 731,362 | $ 762,181 |
Accounts receivable, net of allowances for credit losses of $10.7 million and $15.9 million in 2021 and 2020, respectively | 1,072,684 | 1,033,966 |
Inventories | 777,184 | 528,474 |
Prepaid expenses and other current assets | 293,299 | 172,070 |
Total current assets | 2,874,529 | 2,496,691 |
Noncurrent Assets | ||
Property, plant, and equipment, net | 455,966 | 473,794 |
Right-of-use assets, net | 325,484 | 291,601 |
Goodwill | 1,390,207 | 1,393,834 |
Deferred income tax assets | 526,906 | 72,682 |
Identifiable intangible assets, net | 476,858 | 518,190 |
Other noncurrent assets | 343,944 | 288,098 |
Total Assets | 6,393,894 | 5,534,890 |
Current Liabilities | ||
Short-term borrowings | 0 | 969 |
Accounts payable | 579,152 | 495,363 |
Accrued liabilities | 991,592 | 831,922 |
Income taxes payable | 27,509 | 27,125 |
Total current liabilities | 1,598,253 | 1,355,379 |
Noncurrent Liabilities | ||
Long-term debt | 2,570,992 | 2,854,664 |
Noncurrent lease liabilities | 283,626 | 249,353 |
Other noncurrent liabilities | 372,174 | 465,350 |
Total noncurrent liabilities | 3,226,792 | 3,569,367 |
Commitments and Contingencies (See Note 12) | ||
Stockholders’ Equity | ||
Common stock $1.00 par value, 1.0 billion shares authorized; 441.4 million shares issued | 441,369 | 441,369 |
Additional paid-in capital | 1,832,144 | 1,842,680 |
Treasury stock at cost: 90.7 million shares and 93.2 million shares in 2021 and 2020, respectively | (2,219,990) | (2,282,939) |
Retained earnings | 2,456,597 | 1,553,610 |
Accumulated other comprehensive loss | (941,271) | (944,576) |
Total stockholders’ equity | 1,568,849 | 610,144 |
Total Liabilities and Stockholders’ Equity | $ 6,393,894 | $ 5,534,890 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowances | $ 10.7 | $ 15.9 |
Common stock, par value (USD per share) | $ 1 | $ 1 |
Shares authorized (in shares) | 1,000,000,000 | 1,000,000,000 |
Shares issued (in shares) | 441,400,000 | 441,400,000 |
Treasury stock (in shares) | 90,700,000 | 93,200,000 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Statement [Abstract] | |||
Net Sales | $ 5,457,741 | $ 4,588,433 | $ 4,504,571 |
Cost of sales | 2,831,079 | 2,345,330 | 2,527,230 |
Gross Profit | 2,626,662 | 2,243,103 | 1,977,341 |
Advertising and promotion expenses | 545,674 | 525,803 | 550,217 |
Other selling and administrative expenses | 1,351,426 | 1,342,564 | 1,390,022 |
Operating Income | 729,562 | 374,736 | 37,102 |
Interest expense | 253,937 | 198,332 | 201,044 |
Interest (income) | (3,503) | (3,945) | (6,166) |
Other non-operating expense, net | 8,364 | 2,692 | 1,879 |
Income (Loss) Before Income Taxes | 470,764 | 177,657 | (159,655) |
(Benefit) provision for income taxes | (420,381) | 65,549 | 58,324 |
Income (loss) from equity method investments | 11,842 | 11,471 | (771) |
Net Income (Loss) | $ 902,987 | $ 123,579 | $ (218,750) |
Net income (loss) per common share - basic (USD per share) | $ 2.58 | $ 0.36 | $ (0.63) |
Weighted-average number of common shares (in shares) | 350,007 | 347,463 | 346,127 |
Net income (loss) per common share - diluted (USD per share) | $ 2.53 | $ 0.35 | $ (0.63) |
Weighted-average number of common and potential common shares (in shares) | 357,253 | 349,116 | 346,127 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | |||
Net Income (Loss) | $ 902,987 | $ 123,579 | $ (218,750) |
Other Comprehensive Income (Loss), Net of Tax | |||
Currency translation adjustments | (54,690) | (32,423) | 18,919 |
Employee benefit plan adjustments | 32,755 | (16,997) | (27,094) |
Net unrealized gains (losses) on available-for-sale security | 1,075 | 738 | (1,713) |
Net unrealized gains (losses) on derivative instruments: | |||
Unrealized holding gains (losses) | 23,253 | (18,289) | 14,495 |
Reclassification adjustments included in net income (loss) | 912 | (8,121) | (14,865) |
Net unrealized (losses) gains on derivative instruments | 24,165 | (26,410) | (370) |
Other Comprehensive Income (Loss), Net of Tax | 3,305 | (75,092) | (10,258) |
Comprehensive Income (Loss) | $ 906,292 | $ 48,487 | $ (229,008) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cash Flows From Operating Activities: | |||
Net income (loss) | $ 902,987 | $ 123,579 | $ (218,750) |
Adjustments to reconcile net income (loss) to net cash flows provided by operating activities: | |||
Depreciation | 146,274 | 154,526 | 204,406 |
Amortization | 38,039 | 38,925 | 40,112 |
Share-based compensation | 60,081 | 60,168 | 55,968 |
Bad debt expense | 1,202 | 9,149 | 967 |
Inventory obsolescence | 40,881 | 44,006 | 75,139 |
Asset impairments | 9,690 | 13,006 | 41,214 |
Deferred income taxes | 56,658 | (5,300) | (6,036) |
(Income) loss from equity method investments | (11,842) | (10,752) | 771 |
Loss on extinguishment of long-term borrowings | 101,695 | 0 | 9,236 |
(Gain) loss on sale of assets/business, net | (23,823) | 1,028 | (1,521) |
Release of valuation allowances on deferred tax assets | (540,803) | 0 | (13,489) |
Changes in assets and liabilities: | |||
Accounts receivable | (85,603) | (92,280) | 41,029 |
Inventories | (330,899) | (42,193) | (22,686) |
Prepaid expenses and other current assets | (26,533) | (20,039) | 49,071 |
Accounts payable, accrued liabilities, and income taxes payable | 207,143 | 17,403 | (54,652) |
Other, net | (59,684) | (5,530) | (32,343) |
Net cash flows provided by operating activities | 485,463 | 285,696 | 168,436 |
Cash Flows From Investing Activities: | |||
Purchases of tools, dies, and molds | (74,222) | (59,404) | (52,994) |
Purchases of other property, plant, and equipment | (77,131) | (59,389) | (50,817) |
Proceeds from (payments of) foreign currency forward exchange contracts, net | 1,585 | (22,883) | (681) |
Proceeds from sale of assets/business | 43,649 | 5,815 | 3,302 |
Other, net | 1,022 | 3,757 | (445) |
Net cash flows used for investing activities | (105,097) | (132,104) | (101,635) |
Cash Flows From Financing Activities: | |||
(Payments of) proceeds from short-term borrowings, net | (969) | 969 | (4,176) |
Payments of long-term borrowings | (1,575,997) | 0 | (607,898) |
Proceeds from long-term borrowings, net | 1,184,913 | 0 | 588,244 |
Option proceeds and tax withholdings for share-based compensation, net | (7,856) | (7,199) | (7,510) |
Other, net | (2,165) | 388 | (1,798) |
Net cash flows used for financing activities | (402,074) | (5,842) | (33,138) |
Effect of Currency Exchange Rate Changes on Cash and Equivalents | (9,111) | (15,597) | 1,884 |
Change in Cash and Equivalents | (30,819) | 132,153 | 35,547 |
Cash and Equivalents at Beginning of Period | 762,181 | 630,028 | 594,481 |
Cash and Equivalents at End of Period | 731,362 | 762,181 | 630,028 |
Cash paid during the year for: | |||
Income taxes, gross | 93,129 | 99,495 | 72,647 |
Interest | $ 210,140 | $ 190,674 | $ 190,922 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Treasury Stock | Retained Earnings | Accumulated Other Comprehensive Loss |
Balance at beginning of period at Dec. 31, 2018 | $ 688,989 | $ 441,369 | $ 1,812,682 | $ (2,354,617) | $ 1,648,781 | $ (859,226) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | (218,750) | (218,750) | ||||
Other comprehensive (loss) income, net of tax | (10,258) | (10,258) | ||||
Issuance of treasury stock for restricted stock units vesting | (7,510) | (42,930) | 35,420 | |||
Deferred compensation | 125 | (151) | 276 | |||
Share-based compensation | 55,968 | 55,968 | ||||
Balance at end of period at Dec. 31, 2019 | 508,564 | 441,369 | 1,825,569 | (2,318,921) | 1,430,031 | (869,484) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | 123,579 | 123,579 | ||||
Other comprehensive (loss) income, net of tax | (75,092) | (75,092) | ||||
Issuance of treasury stock for stock option exercises | 64 | (41) | 105 | |||
Issuance of treasury stock for restricted stock units vesting | (7,263) | (42,830) | 35,567 | |||
Deferred compensation | 124 | (186) | 310 | |||
Share-based compensation | 60,168 | 60,168 | ||||
Balance at end of period at Dec. 31, 2020 | 610,144 | 441,369 | 1,842,680 | (2,282,939) | 1,553,610 | (944,576) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | 902,987 | 902,987 | ||||
Other comprehensive (loss) income, net of tax | 3,305 | 3,305 | ||||
Issuance of treasury stock for stock option exercises | 12,131 | (4,806) | 16,937 | |||
Issuance of treasury stock for restricted stock units vesting | (19,987) | (65,774) | 45,787 | |||
Deferred compensation | 188 | (37) | 225 | |||
Share-based compensation | 60,081 | 60,081 | ||||
Balance at end of period at Dec. 31, 2021 | $ 1,568,849 | $ 441,369 | $ 1,832,144 | $ (2,219,990) | $ 2,456,597 | $ (941,271) |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Principles of Consolidation and Basis of Preparation The consolidated financial statements include the accounts of Mattel, Inc. and its subsidiaries. All wholly and majority-owned subsidiaries are consolidated and included in Mattel’s consolidated financial statements. Mattel does not have any minority stock ownership interests in which it has a controlling financial interest that would require consolidation. All significant intercompany accounts and transactions have been eliminated upon consolidation. Certain prior period amounts have been reclassified to conform to the current period presentation. Revision of Previously Issued Consolidated Financial Statements During the second quarter of 2021, Mattel identified a misstatement in its accounting for inventory tooling expenses, which were expensed to cost of sales rather than first being capitalized into the cost of inventory, which resulted in an understatement of inventory balances and a misstatement of cost of sales. Mattel also identified a misstatement related to the timing of disbursements for certain capital expenditures, which resulted in a cash flow misclassification between operating activities and investing activities. Mattel evaluated the misstatements and concluded that the misstatements were not material, either individually or in the aggregate, to its current or previously issued consolidated financial statements. To correct the immaterial misstatements, during the second quarter of 2021, Mattel elected to revise its previously issued consolidated financial statements as of December 31, 2020 and 2019, and for each of the three years ended December 31, 2020, 2019, and 2018. The revision of the historical consolidated financial statements also includes the correction of other immaterial misstatements in its consolidated statement of operations that Mattel had previously recorded as out of period adjustments, as well as other previously identified balance sheet misclassifications. Mattel had previously determined that these misstatements did not, either individually or in the aggregate, result in a material misstatement of its previously issued consolidated financial statements and reached the same conclusion when aggregating with the recently identified misstatements. Accordingly, the accompanying financial statements and relevant footnotes to the consolidated financial statements in this Annual Report on Form 10-K have been revised to correct for such misstatements. Further information regarding the misstatements and related revision is included in "Note 17 to the Consolidated Financial Statements—Revision of Immaterial Misstatements." Use of Estimates Preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States of America ("U.S. GAAP") requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could ultimately differ from those estimates. Cash and Equivalents Cash and equivalents include short-term investments, which are highly liquid investments with maturities of three months or less when purchased. Such investments are stated at cost, which approximates market value. Accounts Receivable and Allowance for Credit Losses Credit is granted to customers on an unsecured basis. Credit limits and payment terms are established based on extensive evaluations made on an ongoing basis throughout the fiscal year of the financial performance, cash generation, financing availability, and liquidity status of each customer. Customers are reviewed at least annually, with more frequent reviews performed as necessary, based on the customers’ financial condition and the level of credit being extended. For customers who are experiencing financial difficulties, management performs additional financial analyses before shipping to those customers on credit. Mattel uses a variety of financial arrangements to ensure collectability of accounts receivable of customers, including requiring letters of credit, purchasing various forms of credit insurance with unrelated third parties, or requiring cash in advance of shipment. Mattel records an allowance for 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. Inventories Inventories, net of the obsolescence reserve, are stated at the lower of cost or net realizable value. Expense associated with the obsolescence reserve is recognized in cost of sales and establishes a lower cost basis for the inventory. Cost is determined by the first-in, first-out method. Property, Plant, and Equipment Property, plant, and equipment are stated at cost less accumulated depreciation. Depreciation is computed using the straight-line method over estimated useful lives of 10 to 30 years for buildings, 3 to 15 years for machinery and equipment, 3 to 10 years for software, and 10 to 20 years, not to exceed the lease term, for leasehold improvements. Tools, dies, and molds are depreciated using the straight-line method over 3 years. Estimated useful lives are periodically reviewed and, where appropriate, changes are made prospectively. The carrying value of property, plant, and equipment is reviewed when events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. Any potential impairment identified is initially assessed by evaluating the operating performance and future undiscounted cash flows of the underlying assets groups. When property, plant and equipment are sold or retired, the cost of the property and the related accumulated depreciation are removed from the consolidated balance sheets, and any resulting gain or loss is included in the consolidated statements of operations. Goodwill and Intangible Assets 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. Components of the operating segments have been aggregated into a single reporting unit as the components have similar economic characteristics. The similar economic characteristics include the nature of the products, the nature of the production processes, the customers, and the manner in which the products are distributed. Mattel tests its goodwill for impairment annually in the third quarter and whenever events or changes in circumstances indicate that the carrying value of a reporting unit may exceed its fair value. Mattel also tests its amortizable intangible assets, which are primarily comprised of trademarks and trade names, for impairment whenever events or changes in circumstances indicate that the carrying value of the asset may not be recovered. Amortization is computed primarily using the straight-line method over the estimated useful lives of the amortizable intangible assets. Foreign Currency Translation Exposure Mattel’s reporting currency is the U.S. dollar. The translation of its net investments in subsidiaries with non-U.S. dollar functional currencies subjects Mattel to the impact of currency exchange rate fluctuations in its results of operations and financial position. Assets and liabilities of subsidiaries with non-U.S. dollar functional currencies are translated into U.S. dollars at year-end exchange rates. Net income (loss) and cash flow items are translated at weighted-average exchange rates prevailing during the year. The resulting currency translation adjustments are recorded as a component of accumulated other comprehensive loss within stockholders’ equity. Mattel’s primary currency translation adjustments in 2021 were related to its net investments in entities having functional currencies denominated in the Turkish lira, Chilean peso, Mexican peso, Euro, and Brazilian real. Foreign Currency Transaction Exposure Currency exchange rate fluctuations may impact Mattel’s results of operations and cash flows. Mattel’s currency transaction exposures include gains and losses realized on unhedged inventory purchases and unhedged receivables and payables balances that are denominated in a currency other than the applicable functional currency. Gains and losses on unhedged inventory purchases and other transactions associated with operating activities are recorded in the components of operating income in the consolidated statements of operations. Transaction gains or losses on hedged intercompany inventory transactions are recorded in the consolidated statements of operations in the period in which the inventory is sold to customers. Gains and losses on unhedged intercompany loans and advances are recorded as a component of other non-operating 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, Russian ruble, Australian dollar, and Polish zloty were the primary transactions that caused foreign currency transaction exposure for Mattel in 2021. Derivative Instruments Mattel uses foreign currency forward exchange contracts as cash flow hedges primarily to hedge its purchases and sales of inventory denominated in foreign currencies. At the inception of the contracts, Mattel designates these derivatives as cash flow hedges and documents the relationship of the hedge to the underlying transaction. Hedge effectiveness is assessed at inception and throughout the life of the hedge to ensure the hedge qualifies for hedge accounting. Changes in fair value associated with hedge ineffectiveness, if any, are recorded in the consolidated statements of operations. Changes in fair value of cash flow hedge derivatives are deferred and recorded as part of accumulated other comprehensive loss in stockholders’ equity until the underlying transaction affects earnings. In the event that an anticipated transaction is no longer likely to occur, Mattel recognizes the change in fair value of the derivative in its consolidated statements of operations in the period the determination is made. Mattel uses foreign currency forward exchange contracts to hedge intercompany loans and advances denominated in foreign currencies. Due to the short-term nature of the contracts involved, Mattel does not use hedge accounting for these contracts, and as such, changes in fair value are recorded in the period of change in the consolidated statements of operations. Mattel utilizes derivative contracts to hedge certain purchases of commodities, which were not material. Revenue Recognition and Sales Adjustments Revenue is recognized when control of the goods is transferred to the customer, which is either upon shipment or upon receipt of finished goods by the customer, depending on the contract terms. Mattel routinely enters into arrangements with its customers to provide sales incentives, support customer promotions, and allowances for returns or defective merchandise. Such programs are based primarily on customer purchases, customer performance of specified promotional activities, and other specified factors such as sales to consumers. Accruals for these programs are recorded as sales adjustments that reduce gross billings in the period the related sale is recognized. The accrual for such programs, which can either be contractual or discretionary in nature, is based on an assessment of customer purchases, customer performance of specified promotional activities, and other specified factors such as customer sales volume. In making these estimates, management considers all available information, including the overall business environment, historical trends, and information from customers. Mattel also enters into symbolic and functional licensing arrangements, whereby the licensee pays Mattel royalties based on sales of licensed product, and in certain cases are subject to minimum guaranteed amounts. The timing of revenue recognition for certain of these licensing arrangements with minimum guarantees is based on the determination of whether the license of intellectual property ("IP") is symbolic, which includes the license of Mattel's brands, or functional, which includes the license of Mattel's completed television or streaming content. Revenues from symbolic licenses of IP are recognized based on actual sales when Mattel expects royalties to exceed the minimum guarantee. For symbolic licensing arrangements in which Mattel does not expect royalties to exceed the minimum guarantee, an estimate of the royalties expected to be recouped is recognized on a straight-line basis over the license term. Revenues from functional licenses of IP are recognized once the license period has commenced and the licensee has the ability to use the delivered content. Mattel applied the practical expedient prescribed in Accounting Standards Codification ("ASC") 606, Revenue from Contracts with Customers and did not evaluate contracts of one year or less for the existence of a significant financing component. Multi-year contracts were not material. Advertising and Promotion Costs Advertising production costs are expensed in the period the underlying advertisement is first aired. The costs of other advertising and promotional programs are expensed in the period incurred. Product Recalls and Withdrawals Mattel establishes a reserve for product recalls and withdrawals on a product-specific basis when circumstances giving rise to the recall or withdrawal become known. Facts and circumstances related to the recall or withdrawal, including where the product affected by the recall or withdrawal is located (e.g., with consumers, in customers’ inventory, or in Mattel’s inventory), cost estimates for shipping and handling for returns, cost estimates for communicating the recall or withdrawal to consumers and customers, and cost estimates for parts and labor if the recalled or withdrawn product is deemed to be repairable, are considered when establishing a product recall or withdrawal reserve. These factors are updated and reevaluated each period, and the related reserves are adjusted when these factors indicate that the recall or withdrawal reserve is either not sufficient to cover or exceeds the estimated product recall or withdrawal expenses. Design and Development Costs Product design and development costs primarily include employee compensation and outside services and are charged to the results of operations as incurred. Employee Benefit Plans Mattel and certain of its subsidiaries have retirement and other postretirement benefit plans covering substantially all employees of these entities. Actuarial valuations are used in determining amounts recognized in the financial statements for certain retirement and other postretirement benefit plans (see "Note 4 to the Consolidated Financial Statements—Employee Benefit Plans"). Share-Based Payments Mattel recognizes the cost of service-based employee share-based payment awards on a straight-line attribution basis over the requisite employee service period, net of estimated forfeitures. Determining the fair value of share-based awards at the measurement date requires judgment, including estimating the expected term that stock options will be outstanding prior to exercise, the associated volatility, and the expected dividends. With the exception of certain market-based options granted in 2018, which are valued using a Monte Carlo valuation methodology, Mattel estimates the fair value of options granted using the Black-Scholes valuation model. The expected life of stock options used in this calculation is the period of time the options are expected to be outstanding and has been determined based on historical exercise experience. Expected stock price volatility is based on the historical volatility of Mattel’s stock for a period approximating the expected life, the expected dividend yield is based on Mattel’s most recent actual annual dividend payout, and the risk-free interest rate is based on the implied yield available on U.S. Treasury zero-coupon issues approximating the expected life. Judgment is also required in estimating the amount of share-based awards that will be forfeited prior to vesting. Mattel determines the fair value of RSUs, excluding performance RSUs, based on the closing market price of Mattel’s common stock on the date of grant, adjusted by the present value of the expected dividends for RSUs that are not entitled to a dividend during the vest period. Mattel determines the fair value of the performance-related components of its performance RSUs based on the closing market price of Mattel's common stock on the date of grant. It determines the fair value of the market-related components of its performance RSUs based on the Monte Carlo valuation methodology. Income Taxes Certain income and expense items are accounted for differently for financial reporting and income tax purposes. Deferred income tax assets and liabilities are determined based on the difference between the financial statement and tax bases of assets and liabilities, applying enacted statutory income tax rates in effect for the year in which the differences are expected to reverse. Mattel evaluates the realization of its deferred tax assets based on all available evidence and establishes a valuation allowance to reduce deferred tax assets when it is more likely than not that they will not be realized. Mattel recognizes the financial statement effects of a tax position when it is more likely than not that, based on technical merits, the position will be sustained upon examination. The tax benefits of the position recognized in the financial statements are then measured based on the largest amount of benefit that is greater than 50% likely to be realized upon settlement with a taxing authority. In addition, Mattel recognizes interest and penalties related to unrecognized tax benefits as a component of the income tax provision . In the normal course of business, Mattel is regularly audited by federal, state, local, and foreign tax authorities. The ultimate settlement of any particular issue with the applicable taxing authority could have a material impact on Mattel’s consolidated financial statements. Equity Method Investments Mattel utilizes the equity method when accounting for investments in which Mattel is able to exercise significant influence, but does not hold controlling interest. Significant influence is generally presumed to exist when Mattel owns between 20% to 50% of the investee. Under the equity method of accounting, the investee's financials are not consolidated within Mattel's financial statements. Mattel records its portion of an investee’s earnings and losses on a three-month lag as investee financial information is not available in a sufficiently timely manner. Equity method investments were not significant for the periods presented. New Accounting Pronouncements Recently Adopted Accounting Pronouncements In December 2019, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("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. The amendments related to changes in ownership of foreign equity method investments or foreign subsidiaries are applied on a modified retrospective basis through a cumulative effect adjustment to retained earnings as of the beginning of the fiscal year of adoption. Mattel adopted ASU 2019-12 on January 1, 2021. 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 March 2020 and January 2021, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting and ASU 2021-01, Reference Rate Reform (Topic 848): Scope, respectively. ASU 2020-04 and ASU 2021-01 provide optional expedients and exceptions for applying U.S. GAAP, to contracts, hedging relationships, and other transactions that reference the LIBOR or another reference rate expected to be discontinued because of reference rate reform, if certain criteria are met. The guidance in ASU 2020-04 and ASU 2021-01 was effective upon issuance and, once adopted, may be applied prospectively to contract modifications and hedging relationships through December 31, 2022. Mattel is currently evaluating the impact of the adoption of ASU 2020-04 and ASU 2021-01 on its consolidated financial statements. |
Property, Plant, and Equipment
Property, Plant, and Equipment | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant, and Equipment | Property, Plant, and Equipment Property, plant, and equipment, net includes the following: December 31, December 31, (In thousands) Land $ 21,811 $ 24,913 Buildings 317,114 331,898 Machinery and equipment 762,462 753,338 Software 348,062 342,364 Tools, dies, and molds 537,499 585,170 Leasehold improvements 115,844 130,789 Construction in progress 55,559 47,958 2,158,351 2,216,430 Less: accumulated depreciation (1,702,385) (1,742,636) $ 455,966 $ 473,794 During the three months ended March 31, 2021, Mattel completed the sale of a manufacturing plant based in Mexico, which included land and buildings, resulting in a pre-tax gain of $15.8 million. The assets sold were previously designated as held for sale, and included within property, plant, and equipment, net in the consolidated balance sheets as of December 31, 2020. |
Goodwill and Other Intangibles
Goodwill and Other Intangibles | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangibles | Goodwill and Other Intangibles Goodwill is allocated to various reporting units, which are at the operating segment level, for the purpose of evaluating whether goodwill is impaired. Mattel’s reporting units are: (i) North America, (ii) International, and (iii) American Girl. Components of the operating segments have been aggregated into a single reporting unit as the components have similar economic characteristics. The similar economic characteristics include the nature of the products, the nature of the production processes, the customers, and the manner in which the products are distributed. The change in the carrying amount of goodwill by operating segment for 2021 and 2020 is shown below. Brand-specific goodwill held by foreign subsidiaries is allocated to the North America operating segment selling those brands, thereby causing a foreign currency translation impact. During the first quarter of 2021, Mattel sold its arts, crafts, and stationery business, resulting in a reduction of goodwill of approximately $2 million. North America International American Girl Total (In thousands) Balance at December 31, 2019 $ 732,430 $ 450,713 $ 207,571 $ 1,390,714 Currency exchange rate impact 971 2,149 — 3,120 Balance at December 31, 2020 733,401 452,862 207,571 1,393,834 Dispositions (1,290) (1,056) — (2,346) Currency exchange rate impact (322) (959) — (1,281) Balance at December 31, 2021 $ 731,789 $ 450,847 $ 207,571 $ 1,390,207 In the third quarter of 2021, Mattel performed a qualitative assessment to determine whether it was more likely than not that the book value of each reporting unit exceeded its fair value. As a result of Mattel's qualitative assessment, it was determined that goodwill was not impaired. There were no events or changes in circumstances subsequent to the third quarter assessment that indicate that the carrying value of a reporting unit may exceed its fair value as of December 31, 2021. Other Intangibles Identifiable intangibles were $476.9 million, net of accumulated amortization of $327.0 million, and $518.2 million, net of accumulated amortization of $286.9 million, as of December 31, 2021 and 2020, respectively. The estimated future amortization expense for the next five years is as follows: Amortization Expense (In thousands) 2022 $ 38,503 2023 39,250 2024 33,074 2025 33,012 2026 29,612 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 primarily consist of trademarks. During the fourth quarter of 2021, Mattel discontinued the use of an intangible asset which resulted in an asset impairment charge of $2.0 million. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2021 | |
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. These plans include defined benefit pension plans, defined contribution retirement plans, postretirement benefit plans, and deferred compensation and excess benefit plans. In addition, Mattel makes contributions to government-mandated retirement plans in countries outside the United States where its employees work. A summary of retirement plan expense, net is as follows: For the Year Ended December 31, December 31, December 31, (In thousands) Defined benefit pension plans $ 14,858 $ 9,670 $ 9,815 Defined contribution retirement plans 34,821 26,697 32,743 Postretirement benefit plans (1,968) (1,972) (2,220) Deferred compensation and excess benefit plans 6,857 6,391 10,994 $ 54,568 $ 40,786 $ 51,332 Defined Benefit Pension and Postretirement Benefit Plans Mattel provides defined benefit pension plans for eligible domestic employees, which are intended to comply with the requirements of the Employee Retirement Income Security Act of 1974 ("ERISA"). Some of Mattel’s foreign subsidiaries have defined benefit pension plans covering substantially all of their eligible employees. Mattel funds these plans in accordance with the terms of the plans and local statutory requirements, which differ for each of the countries in which the subsidiaries are located. Mattel also has unfunded postretirement health insurance plans covering certain eligible domestic employees. A summary of the components of Mattel’s net periodic benefit cost (credit) and other changes in plan assets and benefit obligations recognized in other comprehensive income (loss) for the years ended December 31 is as follows: Defined Benefit Pension Plans Postretirement Benefit Plans 2021 2020 2019 2021 2020 2019 (In thousands) Net periodic benefit cost (credit): Service cost $ 4,925 $ 4,348 $ 4,479 $ 2 $ 1 $ 1 Interest cost 10,094 15,079 19,309 78 139 201 Expected return on plan assets (18,531) (19,694) (21,714) — — — Amortization of prior service cost (credit) 163 303 64 (2,038) (2,038) (2,038) Recognized actuarial loss (gain) 11,177 9,584 7,585 (10) (74) (384) Settlement loss 6,982 — — — — — Curtailment loss 48 50 92 — — — Net periodic benefit cost (credit) $ 14,858 $ 9,670 $ 9,815 $ (1,968) $ (1,972) $ (2,220) Other changes in plan assets and benefit obligations recognized in other comprehensive income (loss): Net actuarial (gain) loss $ (42,671) $ 12,624 $ 28,740 $ (605) $ 850 $ 1,870 Prior service (credit) cost 204 269 26 — — — Amortization of prior service (cost) credit (163) (303) (64) 2,038 2,038 2,038 Total recognized in other comprehensive (income) loss (a) $ (42,630) $ 12,590 $ 28,702 $ 1,433 $ 2,888 $ 3,908 Total recognized in net periodic benefit (credit) cost and other comprehensive income (loss) $ (27,772) $ 22,260 $ 38,517 $ (535) $ 916 $ 1,688 (a) Amounts exclude related tax expense (benefit) of approximately $9 million, $2 million, and $(6) million, during 2021, 2020, and 2019, respectively, which are also included in other comprehensive income (loss). Net periodic benefit cost (credit) for Mattel’s domestic defined benefit pension and postretirement benefit plans was calculated on January 1 of each year using the following assumptions: For the Year Ended December 31, December 31, December 31, Defined benefit pension plans: Discount rate 2.2 % 3.0 % 4.1 % Weighted-average rate of future compensation increases N/A N/A N/A Long-term rate of return on plan assets 5.0 % 5.5 % 6.0 % Postretirement benefit plans: Discount rate 2.2 % 3.0 % 4.1 % Annual increase in Medicare Part B premium 6.0 % 6.0 % 6.0 % Health care cost trend rate: Pre-65 7.0 % 7.0 % 7.0 % Post-65 6.8 % 6.8 % 6.8 % Ultimate cost trend rate: Pre-65 4.5 % 4.5 % 4.5 % Post-65 4.5 % 4.5 % 4.5 % Year that the rate reaches the ultimate cost trend rate: Pre-65 2027 2026 2025 Post-65 2027 2026 2025 Discount rates, weighted-average rates of future compensation increases, and long-term rates of return on plan assets for Mattel’s foreign defined benefit pension plans differ from the assumptions used for Mattel’s domestic defined benefit pension plans due to differences in local economic conditions in the locations where the non-U.S. plans are based. The rates shown in the preceding table are indicative of the weighted-average rates of all of Mattel’s defined benefit pension plans given the relative insignificance of the foreign plans to the consolidated total. Mattel used a measurement date of December 31, 2021 for its defined benefit pension and postretirement benefit plans. A summary of the changes in benefit obligation and plan assets is as follows: Defined Benefit Postretirement December 31, December 31, December 31, December 31, (In thousands) Change in Benefit Obligation: Benefit obligation, beginning of year $ 671,181 $ 628,152 $ 6,246 $ 5,781 Service cost 4,925 4,348 2 1 Interest cost 10,094 15,079 78 139 Impact of currency exchange rate changes (5,762) 9,076 — — Actuarial (gain) loss (16,597) 45,907 (614) 773 Benefits paid (49,895) (33,447) (536) (448) Plan amendments (656) 2,066 — — Settlements 1,612 — — — Other (1,636) — — — Benefit obligation, end of year $ 613,266 $ 671,181 $ 5,176 $ 6,246 Change in Plan Assets: Plan assets at fair value, beginning of year $ 457,880 $ 431,747 $ — $ — Actual return on plan assets 28,622 44,104 — — Employer contributions 21,841 10,937 536 448 Impact of currency exchange rate changes (1,244) 4,769 — — Benefits paid (49,895) (33,447) (536) (448) Settlements — (230) — — Other (72) — — — Plan assets at fair value, end of year $ 457,132 $ 457,880 $ — $ — Net Amount Recognized in Consolidated Balance Sheets: Funded status, end of year $ (156,134) $ (213,301) $ (5,176) $ (6,246) Current accrued benefit liability $ (5,119) $ (5,687) $ (730) $ (840) Noncurrent accrued benefit liability, net (151,015) (207,614) (4,446) (5,406) Net amount recognized $ (156,134) $ (213,301) $ (5,176) $ (6,246) Amounts Recognized in Accumulated Other Comprehensive Loss (a): Net actuarial loss (gain) $ 236,667 $ 279,338 $ (956) $ (351) Prior service cost (credit) 189 148 (8,110) (10,148) $ 236,856 $ 279,486 $ (9,066) $ (10,499) (a) Amounts exclude related tax benefits of approximately $74 million and $83 million for December 31, 2021 and 2020, respectively, which are also included in accumulated other comprehensive loss. The accumulated benefit obligation differs from the projected benefit obligation in that it assumes future compensation levels will remain unchanged. Mattel’s accumulated benefit obligation for its defined benefit pension plans as of 2021 and 2020 totaled $595.4 million and $652.7 million, respectively. The actuarial gain recognized in 2021 for the defined benefit pension plan was driven primarily by the increase in the discount rate from the prior year that was used to determine the projected benefit obligation at December 31, 2021. The actuarial loss recognized in 2020 for the defined benefit pension plan was driven primarily by the decrease in the discount rate from the prior year that was used to determine the projected benefit obligation at December 31, 2020. As of December 31, 2021 and 2020, information for defined benefit pension plans that had aggregate accumulated benefit obligations and projected benefit obligations in excess of plan assets is as follows: For the Year Ended December 31, December 31, (In thousands) Projected benefit obligation $ 523,968 $ 577,418 Accumulated benefit obligation 506,124 559,039 Fair value of plan assets 348,660 351,650 The assumptions used in determining the projected and accumulated benefit obligations of Mattel’s domestic defined benefit pension and postretirement benefit plans are as follows: December 31, December 31, Defined benefit pension plans: Discount rate 2.5 % 2.2 % Cash balance interest crediting rate 4.0 % 4.0 % Weighted-average rate of future compensation increases N/A N/A Postretirement benefit plans: Discount rate 2.5 % 2.2 % Annual increase in Medicare Part B premium 6.0 % 6.0 % Health care cost trend rate: Pre-65 7.0 % 7.0 % Post-65 7.0 % 6.8 % Ultimate cost trend rate: Pre-65 4.5 % 4.5 % Post-65 4.5 % 4.5 % Year that the rate reaches the ultimate cost trend rate: Pre-65 2028 2027 Post-65 2028 2027 The estimated future benefit payments for Mattel’s defined benefit pension and postretirement benefit plans are as follows: Defined Benefit Postretirement (In thousands) 2022 $ 36,733 $ 730 2023 35,462 630 2024 37,931 530 2025 36,268 530 2026 35,159 530 2027 - 2031 175,748 1,520 Mattel expects to make cash contributions totaling approximately $6 million to its defined benefit pension and postretirement benefit plans in 2022, substantially all of which will be for benefit payments for its unfunded plans. Mattel’s defined benefit pension plan assets are measured and reported in the consolidated financial statements at fair value using inputs, which are more fully described in "Note 10 to the Consolidated Financial Statements—Fair Value Measurements," as follows: December 31, 2021 Level 1 Level 2 Level 3 Total (In thousands) U.S. government and U.S. government agency securities $ — $ 1,584 $ — $ 1,584 U.S. corporate debt instruments — 68,070 — 68,070 International corporate debt instruments — 23,752 — 23,752 Mutual funds (a) — — — 132,165 Money market funds 3,650 — — 3,650 Other investments — 6,979 — 6,979 Insurance "buy-in" policy — — 30,731 30,731 Collective trust funds (a): U.S. equity securities 65,256 International equity securities 12,832 Global fixed income 48,745 Diversified funds 46,407 Real Estate $ 16,961 Total $ 3,650 $ 100,385 $ 30,731 $ 457,132 December 31, 2020 Level 1 Level 2 Level 3 Total (In thousands) U.S. government and U.S. government agency securities $ — $ 14,132 $ — $ 14,132 U.S. corporate debt instruments — 69,708 — 69,708 International corporate debt instruments — 17,490 — 17,490 Mutual funds (a) — — — 73,314 Money market funds 323 — — 323 Other investments — 8,449 — 8,449 Insurance "buy-in" policy — — 32,794 32,794 Collective trust funds (a): U.S. equity securities 69,528 International equity securities 66,749 Global fixed income 45,862 Diversified funds 42,884 Real Estate $ 16,647 Total $ 323 $ 109,779 $ 32,794 $ 457,880 (a) These investments primarily consist of privately placed funds that are valued based on net asset value per share. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the statement of financial position and its related disclosures. The fair value of collective trust funds is determined based on the net asset value per share held at year-end. The fair value of U.S. government securities, U.S. government agency securities, corporate debt instruments, mutual funds, and money market funds are determined based on quoted market prices or are estimated using pricing models with observable inputs or quoted prices of securities with similar characteristics. In December 2017, Mattel entered into an insurance buy-in policy contract with a private limited life insurance company to insure a portion of the U.K. pension plan, covering approximately 40% of the total membership in the plan. The assets and liabilities with respect to insured pensioners are assumed to match for the purposes of ASC 715, Pension — Retirement Benefits (i.e. the full benefits have been insured). The initial value of the asset associated with this policy was equal to the premium paid to secure the policy, and is adjusted each reporting period for changes in interest rates, discount rates, and benefits paid. As the valuation of this asset is judgmental, and there are no observable inputs associated with the valuation, the buy-in contract is classified as Level 3 on the fair value hierarchy. The following table provides a reconciliation of the beginning and ending balances of assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3): Level 3 (in thousands) Balance at December 31, 2019 $ 31,281 Purchases, sales, and settlements (1,867) Change in fair value 3,380 Balance at December 31, 2020 32,794 Purchases, sales, and settlements (1,854) Change in fair value (209) Balance at December 31, 2021 $ 30,731 Mattel’s defined benefit pension plan assets are not directly invested in Mattel common stock. Mattel believes that the long-term rate of return on plan assets of 5.0% as of December 31, 2021 is reasonable based on historical returns. Defined Contribution Retirement Plans Domestic employees are eligible to participate in a 401(k) savings plan, the Mattel, Inc. Personal Investment Plan (the "Plan"), sponsored by Mattel, which is a funded defined contribution plan intended to comply with ERISA’s requirements. Contributions to the Plan include voluntary contributions by eligible employees and employer automatic and matching contributions by Mattel. The Plan allows employees to allocate both their voluntary contributions and their employer automatic and matching contributions to a variety of investment funds, including a fund that is invested in Mattel common stock (the "Mattel Stock Fund"). Employees are not required to allocate any of their Plan account balance to the Mattel Stock Fund, allowing employees to limit or eliminate their exposure to market changes in Mattel’s stock price. Furthermore, the Plan limits the percentage of the employee’s total account balance that may be allocated to the Mattel Stock Fund to 25%. Employees may generally reallocate their account balances on a daily basis. However, pursuant to Mattel’s insider trading policy, employees classified as insiders under Mattel’s insider trading policy are limited to certain periods in which they may make allocations into or out of the Mattel Stock Fund. Certain non-U.S. employees participate in other defined contribution retirement plans with varying vesting and contribution provisions. Deferred Compensation and Excess Benefit Plans Mattel maintains a deferred compensation and 401(k) excess plan (the "DCP") that permits certain officers and key employees to elect to defer portions of their compensation. The participant DCP deferrals, together with certain contributions made by Mattel, earn various rates of return. The liability for these plans as of December 31, 2021 and 2020 was $62.8 million and $59.9 million, respectively, and is primarily included in other noncurrent liabilities in the consolidated balance sheets. Changes in the market value of the participant-selected investment options are recorded as retirement plan expense within other selling and administrative expenses in the consolidated statements of operations. Separately, Mattel has purchased group trust-owned life insurance contracts designed to assist in funding these benefits under the DCP. The cash surrender value of these policies, valued at $88.6 million and $79.9 million as of December 31, 2021 and 2020, respectively, are held in an irrevocable grantor trust, the assets of which are subject to the claims of Mattel’s creditors and are included in other noncurrent assets in the consolidated balance sheets. Annual Incentive Compensation Mattel has annual incentive compensation plans under which officers and key employees may earn cash incentive compensation based on Mattel’s and individual performance, subject to certain approvals of the Compensation Committee of the Board of Directors. Incentive compensation for 2021, 2020, and 2019, was $137.1 million, $122.5 million, and $119.5 million, respectively, for awards under these plans and was included in other selling and administrative expenses. |
Seasonal Financing and Debt
Seasonal Financing and Debt | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Seasonal Financing and Debt | Seasonal Financing and Debt Seasonal Financing On December 20, 2017, Mattel entered into a syndicated facility agreement, which was subsequently amended in 2018, 2019, and 2021 (as amended, the “Credit Agreement”), as a borrower thereunder (in such capacity, the “Borrower”), along with certain of Mattel’s domestic subsidiaries, as additional borrowers thereunder (together with the Borrower, the “U.S. Borrowers”), Mattel Canada Inc. as a borrower thereunder (the “Canadian Borrower”), certain additional domestic and foreign subsidiaries of Mattel, as guarantors thereunder, Bank of America, N.A., as global administrative agent, collateral agent, Australian security trustee, and lender, and the other lenders and financial institutions party thereto. On March 28, 2018 and March 29, 2018, Mattel, Inc. and certain of its subsidiaries entered into various foreign joinder agreements to the Credit Agreement. The foreign joinder agreements join the relevant foreign borrowers and foreign lenders to the Credit Agreement, as contemplated therein, making portions of the senior secured revolving credit facilities available to other subsidiaries of Mattel, Inc. such that, together with the initial entry into the Credit Agreement, the senior secured revolving credit facilities are available to certain subsidiaries of Mattel, Inc., in their capacity as borrowers, located in the following jurisdictions: (i) the United States, (ii) Canada, (iii) Germany, the Netherlands and the United Kingdom (the “ European (GNU) Borrowers ” ), (iv) Spain (the “ Spanish Borrower ” ), (v) France (the “ French Borrower ” ), and (vi) Australia (the “ Australian Borrower ” ), in each case through subfacilities in each such jurisdiction (each, a “ Subfacility ” ). Through the Credit Agreement and the foreign joinder agreements, certain additional domestic and foreign subsidiaries of Mattel, Inc. are also parties to the Credit Agreement as guarantors of various obligations of the borrowers under the Credit Agreement. On March 19, 2021, the Company entered into the fourth amendment to the Credit Agreement, which amended certain terms, including, but not limited to, amendments to certain components of the borrowing base, a reduction of the aggregate principal amount of the senior secured revolving credit facilities from $1.60 billion to $1.40 billion and an extension of the maturity date from November 20, 2022 to March 19, 2024. The senior secured revolving credit facilities consist of (i) an asset based lending facility with aggregate commitments up to $1.11 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 equity interests in certain borrower and guarantor subsidiaries under the Credit Agreement (the “Fixed Asset & IP Facility”). Borrowings under the senior secured revolving credit facilities will (i) be limited by jurisdic tion-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 1.75% per annum or (b) an alternate base rate plus an applicable margin ranging from 0.25% to 0.75% 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 based on 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. Outstanding letters of credit under the senior secured revolving credit facilities totaled approximately $10 million and $11 million as of December 31, 2021 and December 31, 2020, respectively. The U.S. Borrowers, as well as certain U.S. subsidiaries of the Borrower (the “U.S. Guarantors”), guarantee the obligations of all Borrowers under the senior secured revolving credit facilities. Additionally, the obligations of the Canadian Borrower, the French Borrower, the Spanish Borrower, the European (GNU) Borrowers, and the Australian Borrower (collectively, the “Foreign Borrowers”), are guaranteed by the obligations of the other Foreign Borrowers, as well as certain additional foreign subsidiaries (“Foreign Guarantors”). The U.S. Subfacility is secured by liens on substantially all of the U.S. Borrowers’ and the U.S. Guarantors’ accounts receivable and inventory (the “U.S. Current Assets Collateral”). The Canadian Subfacility, the French Subfacility, the Spanish Subfacility, the European (GNU) Subfacility, and the Australian Subfacility are each secured by a first priority lien on (i) the accounts receivable and inventory of the applicable Foreign Borrower(s) and Foreign Guarantors under such facility, and (ii) the U.S. Current Assets Collateral. The Fixed Asset & IP Facility is secured by a first priority lien on certain owned real property in the United States, certain U.S. trademarks and patents, and 100% of the equity interests in the U.S. Borrowers (aside from Mattel) and U.S. Guarantors, as well as 65% of the voting equity interests and 100% of the non-voting equity interests in Mattel Holdings Limited and the Foreign Borrowers and Foreign Guarantors that are directly owned by a U.S. Borrower or U.S. Guarantor. The net book value of the accounts receivable, inventory, and certain owned real property in the United States currently pledged as collateral under the senior secured revolving credit facilities was approximately $1.1 billion as of December 31, 2021. 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 consolidated 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. Mattel had no borrowings under the senior secured revolving credit facilities as of December 31, 2021 and 2020. 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 as Mattel's excess availability has been greater than $100 million and the Availability Threshold. As of December 31, 2021 and 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 its 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. To finance seasonal working capital requirements of certain foreign subsidiaries, Mattel avails itself of individual short-term credit lines. As of December 31, 2021, foreign credit lines totaled approximately $18 million. Mattel expects to extend the majority of these credit lines throughout 2022. Short-Term Borrowings As of December 31, 2021, Mattel had no borrowings outstanding under the senior secured revolving credit facilities and no foreign short-term borrowings outstanding. As of December 31, 2020, Mattel had no borrowings outstanding under the senior secured revolving credit facilities and approximately $1 million of foreign short-term borrowings outstanding. During 2021 and 2020, Mattel had average borrowings under the senior secured revolving credit facilities and other short-term borrowings of $77.3 million and $201.7 million, respectively, to help finance its seasonal working capital requirements. Average borrowings were lower during 2021 than 2020 due to the accelerated timing of borrowings under the senior secured credit facilities in 2020 in anticipation of its projected seasonal working capital requirements and in light of the uncertainties surrounding COVID-19. The weighted-average interest rate on borrowings under the senior secured revolving credit facilities and other short-term borrowings during 2021 and 2020 was 1.3% and 2.2%, respectively. Mattel's average foreign short-term borrowings were not material during 2021 and 2020. Long-Term Debt On March 19, 2021, Mattel issued (i) $600 million aggregate principal amount of 3.375% Senior Notes due 2026 (the “2026 Notes”) and (ii) $600 million aggregate principal amount of 3.750% Senior Notes due 2029 (the “2029 Notes” and, together with the 2026 Notes, the “Notes” and each a “series” of the Notes). The 2026 Notes were issued pursuant to an indenture dated March 19, 2021 (the “2026 Notes Indenture”), among the Company, the guarantors named therein and U.S. Bank National Association, as trustee (the “Trustee”). The 2029 Notes were issued pursuant to an indenture dated March 19, 2021 (the “2029 Notes Indenture” and, together with the 2026 Notes Indenture, the “Indentures” and each, an “Indenture”), among the Company, the guarantors named therein and the Trustee. The Notes of each series pay interest semi-annually in arrears on April 1 and October 1 of each year, beginning on October 1, 2021. Mattel may redeem all or part of the 2026 Notes at any time or from time to time prior to April 1, 2023, or April 1, 2024, in the case of the 2029 Notes, at its option, at a redemption price equal to 100% of the principal amount, plus a "make whole" premium, plus accrued and unpaid interest on applicable Notes being redeemed to, but excluding, the redemption date. Mattel may also redeem up to 40% of the principal amount of the Notes of such series at any time or from time to time prior to April 1, 2023, in the case of the 2026 Notes, or April 1, 2024, in the case of the 2029 Notes, at its option, at a redemption price equal to 103.375%, in the case of the 2026 Notes, or 103.750%, in the case of the 2029 Notes, of the principal amount thereof, plus accrued and unpaid interest to, but excluding, the applicable redemption date, with the net cash proceeds of sales of one or more equity offerings by Mattel or any direct or indirect parent of Mattel. Mattel may redeem all or part of the 2026 Notes or 2029 Notes at any time or from time to time on or after April 1, 2023, in the case of the 2026 Notes, or April 1, 2024, in the case of the 2029 notes, at its option, at a redemption price including a call premium that varies (from 0% to 1.688%, in the case of the 2026 Notes, or from 0% to 1.875%, in the case of the 2029 Notes) depending on the year of redemption, plus accrued and unpaid interest to, but excluding, the applicable redemption date. The Notes of each series are Mattel’s and the guarantors’ senior unsecured obligations. The Notes of each series are guaranteed by Mattel's existing, and subject to certain exceptions, future wholly-owned domestic restricted subsidiaries that guarantee Mattel’s senior secured revolving credit facilities or certain other indebtedness. Under the terms of the applicable Indenture, the Notes of each series rank equally in right of payment with all of Mattel’s existing and future senior debt, including Mattel’s Existing Notes (as defined in the Indenture) and borrowings under the senior secured revolving credit facilities, and rank senior in right of payment to Mattel's existing and future debt and other obligations that expressly provide for their subordination to the Notes. The Notes of each series are structurally subordinated to all of the existing and future liabilities, including trade payables, of Mattel’s subsidiaries that do not guarantee the Notes of each series (including the Canadian Subfacility, the French Subfacility, the Spanish Subfacility, the European (GNU) Subfacility, and the Australian Subfacility of the senior secured revolving credit facilities) and are effectively subordinated to Mattel’s and the guarantors’ existing and future senior secured debt to the extent of the value of the collateral securing such debt (including borrowings under the senior secured revolving credit facilities). The guarantees are, with respect to the assets of the guarantors of the Notes of each series, structurally senior to all of Mattel’s existing indebtedness, future indebtedness or other liabilities that are not guaranteed by such guarantors, including Mattel’s obligations under the Existing Non-Guaranteed Notes (as defined in the Indentures). The Indentures contain covenants that limit Mattel’s (and some of its subsidiaries’) ability to, among other things: (i) incur additional debt or issue certain preferred shares; (ii) pay dividends on or make other distributions in respect of their capital stock or make other restricted payments; (iii) make investments in unrestricted subsidiaries; (iv) create liens; (v) enter into certain sale/leaseback transactions; (vi) merge or consolidate, or sell, transfer or otherwise dispose of substantially all of their assets; and (vii) designate subsidiaries as unrestricted. In December 2019, Mattel used the net proceeds from the issuance of the 2019 Senior Notes, plus cash on hand, to redeem and retire all of the 2010 Senior Notes due October 1, 2020 and all of the 2016 Senior Notes due August 15, 2021, at a redemption price equal to the principal amount, plus a "make-whole" premium, and accrued and unpaid interest. Upon redemption, Mattel recognized total debt extinguishment costs, including write off of debt issuance costs, of $9.2 million which were recorded within interest expense in the consolidated statements of operations. In 2021, Mattel used the net proceeds from the issuance of the $600 million of 3.375% Senior Notes due 2026 and $600 million of 3.750% Senior Notes due 2029, plus cash on hand, to redeem and retire $1.50 billion in aggregate principal amount of the 2025 Notes and pay related prepayment premiums and transaction fees and expenses. As a result of the redemptions, Mattel incurred losses on extinguishment of debt of $101.7 million, comprised of $76.0 million of prepayment premiums and a $25.7 million write-off of the unamortized debt issuance costs, which was recorded within interest expense in the consolidated statements of operations. Mattel’s long-term debt consists of the following: Interest Rate December 31, December 31, (In thousands) 2010 Senior Notes due October 2040 6.20 % $ 250,000 $ 250,000 2011 Senior Notes due November 2041 5.45 % 300,000 300,000 2013 Senior Notes due March 2023 3.15 % 250,000 250,000 2017/2018 Senior Notes due December 2025 6.75 % — 1,500,000 2019 Senior Notes due December 2027 5.875 % 600,000 600,000 2021 Senior Notes due April 2026 3.375 % 600,000 — 2021 Senior Notes due April 2029 3.75 % 600,000 — Debt issuance costs and debt discount (29,008) (45,336) 2,570,992 2,854,664 Less: current portion — — Total long-term debt $ 2,570,992 $ 2,854,664 The aggregate principal amount of long-term debt maturing in the next five years and thereafter is as follows: 2010 2011 2013 2019 2021 Total (In thousands) 2022 $ — $ — $ — $ — $ — $ — 2023 — — 250,000 — — 250,000 2024 — — — — — — 2025 — — — — — — 2026 — — — — 600,000 600,000 Thereafter 250,000 300,000 — 600,000 600,000 1,750,000 $ 250,000 $ 300,000 $ 250,000 $ 600,000 $ 1,200,000 $ 2,600,000 |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders’ Equity Preference Stock Mattel is authorized to issue up to 20.0 million shares of $0.01 par value preference stock, of which none is currently outstanding. Preferred Stock Mattel is authorized to issue up to 3.0 million shares of $1.00 par value preferred stock, of which none is currently outstanding. Common Stock Repurchase Program During 2021, 2020, and 2019, Mattel did not repurchase any shares of its common stock. Mattel’s share repurchase program was first announced on July 21, 2003. On July 17, 2013, the Board of Directors authorized Mattel to increase its share repurchase program by $500.0 million. At December 31, 2021, share repurchase authorizations of $203.0 million had not been executed. Repurchases will take place from time to time, depending on market conditions. Mattel’s share repurchase program has no expiration date. Dividends During 2021, 2020, and 2019, Mattel did not pay any dividends to holders of its common stock. The payment of dividends on common stock is at the discretion of the Board of Directors and is subject to customary limitations. Accumulated Other Comprehensive Income (Loss) The following tables present changes in the accumulated balances for each component of other comprehensive income (loss), including current period other comprehensive income (loss) and reclassifications out of accumulated other comprehensive income (loss): For the Year Ended December 31, 2021 Derivative Available-for-Sale Security Employee Benefit Plans Currency Total (In thousands) Accumulated Other Comprehensive Loss, Net of Tax, as of December 31, 2020 $ (15,369) $ (7,522) $ (186,854) $ (734,831) $ (944,576) Other comprehensive income (loss) before reclassifications 23,253 1,075 19,961 (54,690) (10,401) Amounts reclassified from accumulated other comprehensive income (loss) 912 — 12,794 — 13,706 Net increase (decrease) in other comprehensive loss 24,165 1,075 32,755 (54,690) 3,305 Accumulated Other Comprehensive Income (Loss), Net of Tax, as of December 31, 2021 $ 8,796 $ (6,447) $ (154,099) $ (789,521) $ (941,271) For the Year Ended December 31, 2020 Derivative Available-for-Sale Security Employee Benefit Plans 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 (18,289) 738 (22,941) (32,423) (72,915) Amounts reclassified from accumulated other comprehensive income (loss) (8,121) — 5,944 — (2,177) Net (decrease) increase in other comprehensive income (loss) (26,410) 738 (16,997) (32,423) (75,092) Accumulated Other Comprehensive Loss, Net of Tax, as of December 31, 2020 $ (15,369) $ (7,522) $ (186,854) $ (734,831) $ (944,576) For the Year Ended December 31, 2019 Derivative Available-for-Sale Security Employee Benefit Plans 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 14,495 (1,713) (31,158) 18,919 543 Amounts reclassified from accumulated other comprehensive income (loss) (14,865) — 4,064 — (10,801) Net (decrease) increase in other comprehensive income (loss) (370) (1,713) (27,094) 18,919 (10,258) Accumulated Other Comprehensive Income (Loss), Net of Tax, as of December 31, 2019 $ 11,041 $ (8,260) $ (169,857) $ (702,408) $ (869,484) 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 Year Ended Consolidated Statements of Operations December 31, December 31, December 31, (In thousands) Derivative Instruments (Loss) gain on foreign currency forward exchange contracts and other contracts $ (512) $ 8,040 $ 15,517 Cost of sales Tax effect (400) 81 (652) (Benefit) provision for income taxes $ (912) $ 8,121 $ 14,865 Net Income (Loss) Employee Benefit Plans Amortization of prior service credit (a) $ 1,875 $ 1,735 $ 1,974 Other non-operating expense, net Recognized actuarial loss (a) (11,167) (9,510) (7,201) Other non-operating expense, net Curtailment loss (a) (48) (50) (92) Other non-operating expense, net Settlement loss (a) (6,982) — — Other non-operating expense, net (16,322) (7,825) (5,319) Tax effect 3,528 1,881 1,255 (Benefit) provision for income taxes $ (12,794) $ (5,944) $ (4,064) Net Income (Loss) (a) The amortization of prior service credit, recognized actuarial loss, curtailment loss and settlement loss are included in the computation of net periodic benefit cost. Refer to "Note 4 to the Consolidated Financial Statements—Employee Benefit Plans" for additional information regarding Mattel’s net periodic benefit cost. Currency Translation Adjustments |
Leases
Leases | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Leases | Leases Mattel routinely enters into noncancelable lease agreements primarily for premises and equipment used in the normal course of business. Certain of these leases include escalation clauses that adjust rental expense to reflect changes in price indices, as well as renewal and termination options. Mattel adopted the new lease standard on January 1, 2019 using the modified retrospective transition method. Prior periods were not retrospectively adjusted. Mattel elected the package of practical expedients, permitted under the transition guidance within the new lease standard, which among other things, allowed Mattel to continue to account for existing leases based on the historical lease classification. Mattel also elected the practical expedients to exclude right-of-use assets and lease liabilities for leases with an initial term of 12 months or less from the balance sheet, and to combine lease and non-lease components for property leases, which primarily relate to ancillary expenses such as common area maintenance charges and management fees. Mattel determines if an arrangement is a lease at inception by assessing whether it conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Mattel's leases have remaining lease terms of up to 11 years, and often include one or more options to renew for up to 10 years. Renewal and termination options are included in the lease term when it is reasonably certain that Mattel will exercise the option. In addition, certain of Mattel's lease agreements, primarily related to American Girl leases, include contingent rental payments based on a percentage of sales. Contingent rental expense is recorded in the period in which the contingent event becomes probable. During 2021, 2020, and 2019, contingent rental expense was not material, Mattel's lease agreements do not contain any material residual guarantees or material restrictive covenants. Right-of-use assets and lease liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. As substantially all of Mattel's leases do not provide an implicit rate, Mattel uses its incremental borrowing rate, based on the information available at the lease commencement date, to determine the present value of lease payments. Operating lease costs are recognized on a straight-line basis over the lease term. The following table summarize Mattel's right-of-use assets and liabilities and other information about its leases: December 31, December 31, (In thousands, except years and percentage information) Right-of-use assets, net $ 325,484 $ 291,601 Accrued liabilities $ 73,752 $ 79,540 Noncurrent lease liabilities 283,626 249,353 Total lease liabilities $ 357,378 $ 328,893 Weighted-average remaining lease term 6.1 years 6.6 years Weighted-average discount rate 6.5 % 7.6 % The components of lease costs for the years ended December 31, 2021, 2020, and 2019 are as follows: For the Year Ended December 31, December 31, December 31, (In thousands) Lease costs (a) $ 134,272 $ 136,842 $ 142,100 Sublease rental income $ 2,077 $ 2,697 $ 5,690 (a) Includes short-term and variable lease costs of approximately $39 million, $42 million, and $44 million for 2021, 2020, and 2019 respectively. Variable lease costs primarily relate to common area maintenance charges, management fees, taxes and storage fees. Supplemental information related to leases are as follows: For the Year Ended December 31, December 31, December 31, (In thousands) Cash payments for leases $ 100,286 $ 96,953 $ 105,015 Right-of-use assets obtained in exchange for new and modified lease liabilities $ 105,898 $ 53,753 $ 29,389 The following table shows the future maturities of lease liabilities for leases in effect as of December 31, 2021: Years Ending December 31, Lease Liabilities (In thousands) 2022 $ 92,254 2023 79,785 2024 67,293 2025 57,103 2026 45,331 Thereafter 96,167 437,933 Less: imputed interest (80,555) $ 357,378 |
Share-Based Payments
Share-Based Payments | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Share-Based Payments | Share-Based Payments Mattel Stock Plans The 2010 Equity and Long-Term Compensation Plan was approved by Mattel's stockholders in May 2010 (the "2010 Plan"). Upon approval of the 2010 Plan, Mattel terminated its 2005 Equity Compensation Plan (the "2005 Plan"), except with respect to grants then outstanding under the 2005 Plan. All RSU awards made under the 2005 Plan have vested. Outstanding stock option grants under the 2005 Plan that have not expired or have not been terminated continue to be exercisable under the terms of their respective grant agreements. In May 2015, Mattel’s stockholders approved the Amended and Restated 2010 Equity and Long-Term Compensation Plan (the "Amended 2010 Plan"). Under the Amended 2010 Plan, Mattel has the ability to grant nonqualified stock options, incentive stock options, stock appreciation rights, restricted stock, RSUs, performance RSUs ("performance awards"), dividend equivalent rights, and shares of common stock to officers, employees, non-employee directors, and consultants providing services to Mattel. Generally, options vest and become exercisable contingent upon the grantees’ continued employment or service with Mattel. Nonqualified stock options are granted with an exercise price not less than 100% of the fair market value of Mattel’s common stock on the date of grant, expire no later than 10 years from the date of grant, and vest on a schedule determined by the Compensation Committee of the Board of Directors, generally over a period of three years from the date of grant. In the event of a retirement of an employee aged 55 years or older with five five The number of shares of common stock available for grant under the Amended 2010 Plan is subject to an aggregate limit of the sum of (i) approximately 120 million shares, (ii) the number of shares that remained available for issuance under the 2005 Plan on May 12, 2010, and (iii) any shares subject to awards outstanding under the 2005 Plan that on or after May 12, 2010 are forfeited or otherwise terminate or expire without the issuance of shares to the holder of the award. The Amended 2010 Plan is further subject to detailed share-counting rules. As a result of such share-counting rules, full-value grants such as grants of restricted stock or RSUs count against shares remaining available for grant at a higher rate than grants of stock options and stock appreciation rights. For grants prior to March 1, 2019, each stock option or stock appreciation right grant is treated as using one available share for each share actually subject to such grant, whereas each restricted stock or RSU grant is treated as using three available shares for each share actually subject to such full-value grant. For grants on or after March 1, 2019 through March 1, 2020, each stock option or stock appreciation right grant is treated as using one available share for each share actually subject to such grant, whereas each restricted stock or RSU grant is treated as using two and seven tenths available shares for each share actually subject to such full-value grant. For grants on or after March 2, 2020 through March 1, 2021, each stock option or stock appreciation right grant is treated as using one available share for each share actually subject to such grant, whereas each restricted stock or RSU grant is treated as using two and thirty-five hundredths available shares for each share actually subject to such full-value grant. For grants on or after March 2, 2021, each stock option or stock appreciation right grant is treated as using one available share for each share actually subject to such grant, whereas each restricted stock or RSU grant is treated as using one and nine tenths available shares for each share actually subject to such full-value grant. At December 31, 2021, there were approximately 32 million shares available for grant under the Amended 2010 Plan if target performance goals are achieved under Mattel's long-term incentive programs ("LTIPs"), and approximately 24 million shares available if maximum performance goals are achieved under the LTIPs. Mattel recognized total share-based compensation expense related to stock options, RSUs, and performance awards of $60.1 million, $60.2 million, and $56.0 million during 2021, 2020, and 2019, respectively, which is included in other selling and administrative expenses in the consolidated statements of operations. The income tax benefit related to stock options, RSUs, and performance awards during 2021 was approximately $7 million. There was no income tax benefit related to stock options, RSUs, or performance awards during 2020 or 2019 as future tax benefits related to these awards were fully offset by a valuation allowance. As of December 31, 2021, total unrecognized compensation cost related to unvested share-based payments totaled $89.5 million and is expected to be recognized over a weighted-average period of 2.1 years. Stock Options Mattel recognized compensation expense of $10.1 million, $11.6 million, and $11.3 million for stock options during 2021, 2020, and 2019, respectively, which is included within other selling and administrative expenses in the consolidated statements of operations. In 2018, Mattel granted market-based options under the Amended 2010 Plan to certain senior executives with April 26, 2018—April 26, 2021 and May 31, 2018—May 31, 2021 performance cycles. These options may be earned at the initial target number of options granted based on achievement of a certain threshold of Mattel’s total shareholder return ("TSR") for the three-year performance cycle relative to the TSR realized by companies comprising the S&P 500 as of the first day of the performance cycle. For the options granted during 2018, the range of possible outcomes was that between zero and 1.3 million shares could be earned. The fair value of these options was estimated at the grant dates using a Monte Carlo valuation methodology, and the weighted-average grant-date fair value of options granted during 2018 was $4.21. The TSR threshold was not met at the end of the three-year cycles, thus no options were earned. The fair values of all other options granted have been estimated using the Black-Scholes valuation model. The expected life of the options used in this calculation is the period of time the options are expected to be outstanding and has been determined based on historical exercise experience. Expected stock price volatility is based on the historical volatility of Mattel’s stock for a period approximating the expected life, the expected dividend yield is based on Mattel’s most recent actual annual dividend payout, and the risk-free interest rate is based on the implied yield available on U.S. Treasury zero-coupon issues approximating the expected life. The weighted-average grant-date fair value of options granted during 2021, 2020, and 2019 was $9.31, $4.60, and $5.09 respectively. The following weighted-average assumptions were used in determining the fair value of options granted: 2021 2020 2019 Expected life (in years) 6.2 5.9 5.5 Risk-free interest rate 0.8 % 0.3 % 1.7 % Volatility factor 43.6 % 43.7 % 38.1 % Dividend yield — % — % — % The following is a summary of stock option information and weighted-average exercise prices for Mattel’s stock options: 2021 2020 2019 Shares Weighted Shares Weighted Shares Weighted (In thousands, except weighted-average exercise prices) Outstanding at January 1 21,635 $ 22.10 22,510 $ 24.22 22,020 $ 25.47 Granted 1,054 21.71 2,241 11.23 2,342 13.54 Exercised (687) 17.65 (4) 15.02 — — Forfeited (72) 14.00 (294) 14.38 (266) 17.64 Canceled (2,252) 21.10 (2,818) 31.22 (1,586) 26.79 Outstanding at December 31 19,678 $ 22.38 21,635 $ 22.10 22,510 $ 24.22 Exercisable at December 31 16,634 $ 23.68 16,356 $ 25.01 16,576 $ 27.32 The intrinsic value of a stock option is the amount by which the current market value of the underlying stock exceeds the exercise price of the option. The total intrinsic value of options exercised was approximately $3 million during 2021 and not material during 2020. There were no stock option exercises during 2019. At December 31, 2021, options outstanding had an intrinsic value of approximately $56 million with a weighted-average remaining life of 4.3 years. At December 31, 2021, options exercisable had an intrinsic value of $36 million, with a weighted-average remaining life of 3.5 years. Mattel uses treasury shares purchased under its share repurchase program to satisfy stock option exercises. Cash received from stock options exercised, net of taxes during 2021 was $12 million. At December 31, 2021, stock options vested and expected to vest totaled approximately 19 million shares, with an intrinsic value of $54.2 million, weighted-average exercise price of $22.47, and weighted-average remaining life of 4.2 years. During 2021, approximately 3 million stock options vested. The total grant-date fair value of stock options vested during 2021, 2020, and 2019 was approximately $15 million, $11 million, and $8 million, respectively. Restricted Stock Units Compensation expense recognized related to grants of RSUs was $27.3 million, $28.6 million, and $33.6 million in 2021, 2020, and 2019, respectively, and was included within other selling and administrative expenses in the consolidated statements of operations. RSUs are valued at the market value on the date of grant, adjusted by the present value of the expected dividends for RSUs that are not entitled to a dividend during the vest period. The expense for RSUs is evenly attributed to the periods in which the restrictions lapse, which is generally three years from the date of grant. The following is a summary of RSU information and weighted-average grant-date fair values for Mattel’s RSUs: 2021 2020 2019 Shares Weighted Shares Weighted Shares Weighted (In thousands, except weighted-average grant-date fair values) Unvested at January 1 3,986 $ 12.52 3,864 $ 15.19 4,721 $ 17.22 Granted 2,167 21.77 2,548 11.18 1,687 13.28 Vested (1,954) 13.66 (1,970) 15.58 (1,997) 18.02 Forfeited (344) 13.72 (456) 14.45 (547) 16.48 Unvested at December 31 3,855 $ 17.03 3,986 $ 12.52 3,864 $ 15.19 At December 31, 2021, RSUs expected to vest totaled approximately 3 million shares, with a weighted-average grant-date fair value of $16.88. The total grant-date fair value of RSUs vested during 2021, 2020, and 2019 was approximately $27 million, $31 million, and $36 million, respectively. Performance Awards Compensation expense recognized related to grants of performance awards was $22.7 million, $19.9 million, and $11.0 million during 2021, 2020, and 2019, respectively. Mattel had three LTIP performance cycles in place during 2021, which were established by the Compensation Committee of the Board of Directors: (i) a January 1, 2019—December 31, 2021 performance cycle, (ii) a January 1, 2020—December 31, 2022 performance cycle, and (iii) a January 1, 2021—December 31, 2023 performance cycle. Under the LTIP performance cycles in place in 2021, officers and key employees may earn shares of Mattel's common stock based on attaining certain cumulative three-year performance targets, which are subject to approvals of the Compensation Committee of the Board of Directors. The ultimate amount earned for these LTIP awards may vary from 0% to 200% of the target number of shares, depending on the cumulative results achieved. Mattel determines the fair value of the performance-related components of its performance awards based on the closing market price of Mattel's common stock on the date of grant and determines the fair value of the market-related components of its performance awards based on the Monte Carlo valuation methodology. With respect to performance awards, which generally cliff-vest over three years, Mattel recognizes compensation expense on a straight-line basis over the requisite service period, provided that certain cumulative three-year performance targets and other vesting criteria are met. The weighted-average grant-date fair value of performance awards granted during 2021, 2020, and 2019 was $22.04, $11.93, and $14.89 respectively. The following weighted-average assumptions were used in determining the fair value of performance awards granted: 2021 2020 2019 Risk-free interest rate 0.3 % 0.1 % 1.7 % Volatility factor 50.1 % 52.7 % 47.0 % Dividend yield — % — % — % The following is a summary of performance award information and weighted-average grant-date fair values for Mattel’s performance awards: 2021 2020 2019 Shares Weighted Shares Weighted Shares Weighted (In thousands, except weighted-average grant-date fair values) Unvested at January 1 3,405 $ 13.79 2,217 $ 15.45 1,283 $ 19.48 Granted (a) 906 22.04 1,461 11.93 1,206 14.89 Vested (884) 15.63 (95) 17.97 — — Forfeited (80) 14.70 (74) 15.65 (71) 15.74 Canceled — — (104) 17.97 (201) 37.70 Unvested at December 31 3,347 $ 15.52 3,405 $ 13.79 2,217 $ 15.45 (a) The number of shares subject to performance awards represents the aggregate target numbers of shares that may be issued pursuant to the award over its full term. The aggregate number of shares subject to performance awards that would be issued if performance goals are achieved at the maximum number of shares are approximately 2 million, 3 million, and 2 million for 2021, 2020, and 2019, respectively. At December 31, 2021, performance awards expected to vest totaled approximately 4 million shares, with a weighted-average grant-date fair value of $14.93. The total grant-date fair value of performance awards vested during 2021 and 2020 was approximately $14 million and $2 million, respectively. No performance awards vested during 2019. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The following table reconciles basic and diluted earnings per common share for the years ended December 31, 2021, 2020, and 2019. For the Year Ended December 31, December 31, December 31, (In thousands, except per share amounts) Basic: Net income (loss) $ 902,987 $ 123,579 $ (218,750) Weighted-average number of common shares 350,007 347,463 346,127 Basic net income per common share $ 2.58 $ 0.36 $ (0.63) Diluted: Net income (loss) $ 902,987 $ 123,579 $ (218,750) Weighted-average number of common shares 350,007 347,463 346,127 Dilutive share-based awards (a) 7,246 1,653 — Weighted-average number of common and potential common shares 357,253 349,116 346,127 Diluted net income per common share $ 2.53 $ 0.35 $ (0.63) (a) Nonqualified stock options and RSUs totaling 12.1 million and 21.7 million were excluded from the calculation of diluted net income per common share for the years ended December 31, 2021 and December 31, 2020, respectively, because their effect would be antidilutive. Mattel was in a net loss position for the year ended December 31, 2019 and, accordingly, all outstanding nonqualified stock options and non-participating RSUs were excluded from the calculation of diluted earnings per common share because their effect would be antidilutive. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The following table presents information about Mattel’s assets and liabilities measured and reported in the financial statements at fair value on a recurring basis as of December 31, 2021 and 2020 and indicates the fair value hierarchy of the valuation techniques utilized to determine such fair value. The three levels of the fair value hierarchy are as follows: • Level 1 – Valuations based on unadjusted quoted prices in active markets for identical assets or liabilities that the entity has the ability to access. • Level 2 – Valuations based on quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable data for substantially the full term of the assets or liabilities. • Level 3 – Valuations based on inputs that are unobservable, supported by little or no market activity, and that are significant to the fair value of the assets or liabilities. Mattel’s financial assets and liabilities include the following: December 31, 2021 Level 1 Level 2 Level 3 Total (In thousands) Assets: Foreign currency forward exchange contracts and other (a) $ — $ 18,075 $ — $ 18,075 Available-for-sale (b) 5,343 — — 5,343 Total assets $ 5,343 $ 18,075 $ — $ 23,418 Liabilities: Foreign currency forward exchange contracts and other (a) $ — $ 3,810 $ — $ 3,810 December 31, 2020 Level 1 Level 2 Level 3 Total (In thousands) Assets: Foreign currency forward exchange contracts and other (a) $ — $ 5,711 $ — $ 5,711 Available-for-sale (b) 4,268 — — 4,268 Total assets $ 4,268 $ 5,711 $ — $ 9,979 Liabilities: Foreign currency forward exchange contracts and other (a) $ — $ 25,494 $ — $ 25,494 (a) The fair value of the foreign currency forward exchange contracts and other 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 $2.82 billion (compared to a carrying value of $2.60 billion) as of December 31, 2021 and $3.11 billion (compared to a carrying value of $2.90 billion) as of December 31, 2020. 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. |
Derivative Instruments
Derivative Instruments | 12 Months Ended |
Dec. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | Derivative Instruments Mattel seeks to mitigate its exposure to foreign currency transaction risk by monitoring its foreign currency transaction exposure for the year and partially hedging such exposure using foreign currency forward exchange contracts. Mattel uses foreign currency forward exchange contracts as cash flow hedges primarily to hedge its purchases and sales of inventory denominated in foreign currencies. These contracts generally have maturity dates of up to 24 months. These derivative instruments have been designated as effective cash flow hedges, whereby the unsettled hedges are reported in Mattel’s consolidated balance sheets at fair value, with changes in the fair value of the hedges reflected in other comprehensive income ("OCI"). Realized gains and losses for these contracts are recorded in the consolidated statements of operations in the period in which the inventory is sold to customers. Mattel uses foreign currency forward exchange contracts to hedge intercompany loans and advances denominated in foreign currencies. Due to the short-term nature of the contracts involved, Mattel does not use hedge accounting for these contracts, and as such, changes in fair value are recorded in the period of change in the consolidated statements of operations. Mattel utilizes derivative contracts to hedge certain purchases of commodities, which were not material. As of December 31, 2021 and December 31, 2020, Mattel held foreign currency forward exchange contracts and other commodity derivative instruments, with notional amounts of approximately $925 million and $855 million, respectively. The following tables present Mattel’s derivative assets and liabilities: Derivative Assets Balance Sheet Classification Fair Value December 31, 2021 December 31, 2020 (In thousands) Derivatives designated as hedging instruments: Foreign currency forward exchange contracts and other Prepaid expenses and other $ 13,361 $ 3,641 Foreign currency forward exchange contracts and other Other noncurrent assets 1,000 50 Total derivatives designated as hedging instruments $ 14,361 $ 3,691 Derivatives not designated as hedging instruments: Foreign currency forward exchange contracts and other Prepaid expenses and other $ 3,714 $ 1,982 Foreign currency forward exchange contracts and other Other noncurrent assets — 38 Total derivatives not designated as hedging instruments $ 3,714 $ 2,020 $ 18,075 $ 5,711 Derivative Liabilities Balance Sheet Classification Fair Value December 31, 2021 December 31, 2020 (In thousands) Derivatives designated as hedging instruments: Foreign currency forward exchange contracts and other Accrued liabilities $ 2,301 $ 20,330 Foreign currency forward exchange contracts and other Other noncurrent liabilities 280 4,361 Total derivatives designated as hedging instruments $ 2,581 $ 24,691 Derivatives not designated as hedging instruments: Foreign currency forward exchange contracts and other Accrued liabilities $ 1,229 $ 803 $ 3,810 $ 25,494 The following tables present the classification and amount of gains and losses, net of tax, from derivatives reported in the consolidated statements of operations: Derivatives Designated As Hedging Instruments Consolidated Statements of For the Year Ended December 31, December 31, December 31, (In thousands) Foreign currency forward exchange contracts: Amount of gains (losses) recognized in OCI $ 23,253 $ (18,289) $ 14,495 Amount of (losses) gains reclassified from accumulated OCI to the consolidated statements of operations (912) 8,121 14,865 Cost of sales The net (losses) gains reclassified from accumulated other comprehensive loss to the consolidated statements of operations during 2021, 2020, and 2019, respectively, were offset by changes in cash flows associated with the underlying hedged transactions. Derivatives Not Designated As Hedging Instruments Consolidated Statements of For the Year Ended December 31, December 31, December 31, (In thousands) Amount of net gains (losses) recognized in the Statements of Operations: Foreign currency forward exchange contracts and other $ 2,872 $ (26,553) $ 2,530 Other non-operating expense, net Foreign currency forward exchange contracts and other 639 495 — Cost of sales $ 3,511 $ (26,058) $ 2,530 The net gains (losses) recognized in the consolidated statements of operations during 2021, 2020, and 2019, respectively, were offset by foreign currency transaction gains and losses on the related hedged balances. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Licensing and Similar Agreements and Other Purchasing Obligations In the normal course of business, Mattel enters into contractual arrangements to obtain and protect Mattel’s right to create and market certain products. These arrangements include royalty payments pursuant to licensing agreements that routinely contain provisions for guarantees or minimum expenditures during the term of the contract. Mattel also enters into contractual arrangements for commitments of future purchases of goods and services to ensure availability and timely delivery. Current and future commitments for guaranteed payments reflect Mattel’s focus on expanding its product lines through alliances with businesses in other industries. Licensing and similar agreements in effect at December 31, 2021 contain provisions for future minimum payments as shown in the following table: Licensing and (In thousands) 2022 $ 43,650 2023 117,672 2024 73,650 2025 49,440 2026 — Thereafter — $ 284,412 Royalty expense for 2021, 2020, and 2019 was $184.3 million, $158.5 million, and $220.2 million, respectively. The following table shows the future minimum obligations for purchases of inventory, services, and other items as of December 31, 2021: Other (In thousands) 2022 $ 370,014 2023 49,349 2024 22,194 2025 5,272 2026 2,800 Thereafter — $ 449,629 Insurance Mattel has a wholly-owned subsidiary, Far West Insurance Company, Ltd. ("Far West"), that was established to insure Mattel’s workers’ compensation, general, automobile, product liability, and property risks. For the year ended December 31, 2021, Far West insured the first $1.0 million per occurrence for workers’ compensation risks, the first $0.5 million per occurrence for general and automobile liability risks, the first $2.0 million per occurrence for product liability losses occurring prior to February 1, 2020, and the first $5.0 million per occurrence for product liability risks thereafter, and up to $1.0 million per occurrence for property risks. Various insurance companies that have an "A" or better AM Best rating at the time the policies are purchased reinsured Mattel’s risk in excess of the amounts insured by Far West. Mattel’s liability for reported and incurred but not reported workers' compensation, general, automobile, product liability, and property claims at December 31, 2021 and 2020 totaled $13.0 million and $12.9 million, respectively, and is primarily included in other noncurrent liabilities in the consolidated balance sheets. Loss reserves are accrued based on Mattel’s estimate of the aggregate liability for claims incurred. Litigation Litigation Related to Yellowstone do Brasil Ltda. In April 1999, Yellowstone do Brasil Ltd. (formerly known as Trebbor Informática Ltda.) filed a lawsuit against Mattel do Brasil before the 15th Civil Court of Curitiba, State of Parana, requesting the annulment of its security bonds and promissory notes given to Mattel do Brasil as well as damages due to an alleged breach of an oral exclusive distribution agreement between the parties relating to the supply and sale of toys in Brazil. Yellowstone's complaints sought alleged loss of profits plus an unspecified amount of 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 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. In October 2018, the Superior Court of Justice issued a final ruling in favor of Yellowstone on the merits of Yellowstone's claims. Previously, the courts had ruled in Mattel's favor on its counterclaim. 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. In January 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 December 31, 2021, 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 filed between April 2019 and October 2019 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 10 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 in the United States District Court for the Western District of New York for pre-trial purposes pursuant to the federal courts’ Multi-District Litigation program. Forty additional lawsuits filed between April 2019 and April 2021 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-four children. Several lawsuits have been settled and/or dismissed. 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 certain of Mattel’s current and former officers and directors. In August 2020, the derivative action was stayed pending further developments in the class action lawsuits. In August 2021, a second similar derivative action was filed in the Court of Chancery for the State of Delaware (Armon v. Bradley, et al., filed August 30, 2021). 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 former officers (the "Mattel Defendants"), as well as others, in the United States District Court for the Central District of California, alleging violations of federal securities laws. The two complaints were consolidated in April 2020 and an amended complaint was filed in May 2020. 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 plaintiffs and other stockholders to purchase Mattel common stock at artificially inflated prices, the court granted plaintiffs' motion for class certification in September 2021. Following a mediation on October 25, 2021, the parties reached an agreement in principle to settle the class action lawsuits, which has been preliminarily approved by the court. The Mattel Defendants are paying $86 million in settlement of the claims against them, which will be funded in full by Mattel's insurers. The settlement does not entail any admission of fault or liability by the Mattel Defendants, which the Mattel Defendants have expressly contested throughout the pendency of the litigation. Mattel's receivables from its insurers and the offsetting settlement liability have been recorded as of December 31, 2021 within prepaid expenses and other current assets and accrued liabilities, respectively, with no net impact to Mattel's statement of operations or statement of cash flows. 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 certain of Mattel's current and former officers and directors, 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 Moher and Lombardi derivative actions were consolidated and stayed pending further developments in the class action lawsuits. In June 2021, a third similar derivative action was filed in the United States District Court for the District of Delaware (Chagnon v. Kreiz, et al., filed June 22, 2021). Seven additional derivative actions asserting similar claims are also pending in the Court of Chancery for the State of Delaware (Owen v. Euteneuer, et al., filed May 12, 2021; Andersen v. Georgiadis, et al., filed May 18, 2021; Armon v. Euteneuer, et al., filed June 29, 2021; Haag v. Euteneuer, et al., filed September 9, 2021; Shumacher v. Kreiz, et al., filed October 19, 2021; Mizell v. PricewaterhouseCoopers LLP, et al., filed October 29, 2021; and Behrens v. Euteneuer, et al., filed November 18, 2021). An additional derivative action was also filed in United States District Court for the Central District of California (City of Pontiac Police and Fire Retirement System v. PricewaterhouseCoopers LLP, et al. filed October 27, 2021). The lawsuits seek unspecified compensatory and punitive damages, attorneys' fees, expert fees, costs, equitable 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. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2021 | |
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. Segment Data Mattel's operating segments are: (i) North America, which consists of the United States 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 regarding net sales, operating income (loss), and assets by segment. The corporate and other expense category includes operating costs not allocated to individual segments, including charges related to incentive and share-based compensation, corporate headquarters functions managed on a worldwide basis, the impact of changes in foreign currency exchange rates on intercompany transactions, and certain severance and other restructuring costs. It is impracticable for Mattel to present net sales by categories, brands, or products, as trade discounts and other allowances are generally recorded in the financial accounting systems by customer. For the Year Ended December 31, December 31, December 31, (In thousands) Net Sales by Segment North America $ 2,968,278 $ 2,426,480 $ 2,275,783 International 2,219,189 1,903,550 1,972,196 American Girl 270,274 258,403 256,592 Net sales $ 5,457,741 $ 4,588,433 $ 4,504,571 Operating Income (Loss) by Segment (a) North America $ 872,536 $ 621,859 $ 381,112 International 349,952 272,395 185,803 American Girl 5,409 (14,090) (59,254) 1,227,897 880,164 507,661 Corporate and other expense (b) (498,335) (505,428) (470,559) Operating Income 729,562 374,736 37,102 Interest expense 253,937 198,332 201,044 Interest (income) (3,503) (3,945) (6,166) Other non-operating expense, net 8,364 2,692 1,879 Income (Loss) Before Income Taxes $ 470,764 $ 177,657 $ (159,655) (a) Segment operating income (loss) included severance and restructuring expenses of $2.9 million, $5.7 million, and $18.6 million for 2021, 2020, and 2019, respectively, which were allocated to the North America, International, and American Girl segments. (b) Corporate and other expense included severance and restructuring charges of $31.5 million, $34.9 million, and $40.5 million for 2021, 2020, and 2019, respectively. Corporate and other expense also included expenses related to inclined sleeper recall litigation of $15.1 million, $26.2 million, and $10.3 million for 2021, 2020, and 2019, respectively, and incentive and share-based compensation for all periods presented. For the Year Ended December 31, December 31, December 31, (In thousands) Depreciation/Amortization by Segment North America $ 86,308 $ 88,128 $ 110,299 International 59,610 67,218 85,496 American Girl 12,508 13,438 17,246 158,426 168,784 213,041 Corporate and other 25,887 24,667 31,477 Depreciation and amortization $ 184,313 $ 193,451 $ 244,518 Segment assets are comprised of accounts receivable and inventories, net of applicable reserves and allowances. December 31, December 31, December 31, (In thousands) Assets by Segment North America $ 784,836 $ 658,404 $ 569,352 International 798,833 715,043 727,781 American Girl 52,168 40,414 34,125 1,635,837 1,413,861 1,331,258 Corporate and other 214,031 148,579 122,775 Accounts receivable and inventories, net $ 1,849,868 $ 1,562,440 $ 1,454,033 Geographic Information The tables below present information by geographic area. Net sales are attributed to countries based on location of customer. Long-lived assets include property, plant, and equipment, net, and right-of-use assets, net. For the Year Ended December 31, December 31, December 31, (In thousands) Net Sales by Geographic Area North America Region (a) $ 3,238,552 $ 2,684,883 $ 2,532,375 International Region EMEA 1,375,463 1,132,531 1,056,392 Latin America 519,610 455,184 565,416 Asia Pacific 324,116 315,835 350,388 Total International Region 2,219,189 1,903,550 1,972,196 Net sales $ 5,457,741 $ 4,588,433 $ 4,504,571 December 31, December 31, December 31, (In thousands) Long-Lived Assets North America Region (b) $ 366,519 $ 368,985 $ 413,075 International Region 414,931 396,410 410,167 Consolidated total $ 781,450 $ 765,395 $ 823,242 (a) Net sales for the North America Region include net sales attributable to the United States of $3.07 billion, $2.53 billion, and $2.39 billion for 2021, 2020, and 2019, respectively. (b) Long-lived assets for the North America Region include long-lived assets attributable to the United States of $343.7 million, $329.3 million, and $383.3 million for 2021, 2020, and 2019, respectively. Major Customers In 2021, net sales to Mattel’s three largest customers accounted for 46% of worldwide consolidated net sales. In 2021, net sales to Walmart, Target, and Amazon were $1.17 billion, $0.74 billion, and $0.62 billion, respectively. In 2020, net sales to Mattel’s three largest customers accounted for 47% of worldwide consolidated net sales. In 2020, net sales to Walmart, Target, and Amazon were $1.07 billion, $0.62 billion, and $0.47 billion, respectively. In 2019, net sales to Mattel’s two largest customers accounted for 32% of worldwide consolidated net sales. In 2019, net sales to Walmart and Target were $1.01 billion and $0.44 billion, respectively. |
Restructuring Charges
Restructuring Charges | 12 Months Ended |
Dec. 31, 2021 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Charges | Restructuring Charges Optimizing for Growth (formerly Capital Light) In February 2021, Mattel announced the Optimizing for Growth program, a multi-year cost savings program that integrates and expands upon the previously announced Capital Light program, which commenced in 2019 (the "Program"). In connection with the Program, Mattel recorded severance and other restructuring costs in the following cost and expense categories within the consolidated statements of operations: For the Year Ended December 31, 2021 December 31, 2020 December 31, 2019 (In thousands) Cost of sales (a) $ 2,885 $ 5,656 $ 18,579 Other selling and administrative expenses (b) 32,266 7,245 18,992 $ 35,151 $ 12,901 $ 37,571 (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 13 to the Consolidated Financial Statements—Segment Information." The following tables summarize Mattel's severance and other restructuring charges activity related to the Program: Liability at December 31, 2020 Charges (a) Payments/Utilization Liability at December 31, 2021 (In thousands) Severance $ 5,294 $ 17,979 $ (10,862) $ 12,411 Other restructuring charges 30 17,172 (14,368) 2,834 $ 5,324 $ 35,151 $ (25,230) $ 15,245 (a) Other restructuring charges consist primarily of expenses associated with the consolidation of manufacturing facilities and restructuring of commercial and corporate functions. Liability at December 31, 2019 Charges (b) Payments/Utilization Liability at December 31, 2020 (In thousands) Severance $ 6,151 $ 6,874 $ (7,731) $ 5,294 Other restructuring charges 11,484 6,027 (17,481) 30 $ 17,635 $ 12,901 $ (25,212) $ 5,324 (b) Other restructuring charges consist primarily of expenses associated with the consolidation of manufacturing facilities. As of December 31, 2021, Mattel had recorded cumulative severance and other restructuring charges related to the Program of approximately $86 million, which include approximately $21 million of non-cash charges. Furthermore, cumulatively, in conjunction with previous actions taken under the Capital Light program, total expected cash expenditures are approximately $140 to $165 million and total expected non-cash charges are $70 to $75 million. During the year ended December 31, 2021, in conjunction with the Program, Mattel completed the sale of a manufacturing plant based in Mexico, which included land and buildings, resulting in a pre-tax gain of $15.8 million. Other Cost Savings Actions In connection with Mattel's continued efforts to streamline its organizational structure and restore profitability, in May 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. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Consolidated pre-tax income (loss) consists of the following: For the Year Ended December 31, December 31, December 31, (In thousands) U.S. operations $ 9,612 $ (172,478) $ (329,112) Foreign operations 461,152 350,135 169,457 Consolidated pre-tax income (loss) excluding equity method $ 470,764 $ 177,657 $ (159,655) The (benefit) provision for current and deferred income taxes consists of the following: For the Year Ended December 31, December 31, December 31, (In thousands) Current Federal $ (9,819) $ — $ 5,520 State (4,060) (575) 2,170 Foreign 81,899 78,870 68,837 68,020 78,295 76,527 Deferred Federal (229,217) 1,164 (2,510) State (27,970) (481) 68 Foreign (231,214) (13,429) (15,761) (488,401) (12,746) (18,203) (Benefit) provision for income taxes $ (420,381) $ 65,549 $ 58,324 Deferred income taxes are provided principally for tax credit carryforwards, net operating loss carryforwards, interest expense, research and development expenses, employee compensation-related expenses, right-of-use assets, lease liabilities, and certain other reserves that are recognized in different years for financial statement and income tax reporting purposes. Mattel’s deferred income tax assets (liabilities) are composed of the following: December 31, December 31, (In thousands) Tax credit carryforwards $ 100,575 $ 71,428 Research and development expenses 27,996 41,862 Net operating loss carryforwards 124,792 161,846 Interest expense 90,671 108,069 Allowances and reserves 102,634 92,372 Deferred compensation 66,183 60,665 Postretirement benefits 31,841 38,182 Intangible assets 219,629 231,527 Lease liabilities 70,712 74,600 Other 46,382 42,058 Gross deferred income tax assets 881,415 922,609 Intangible assets (189,021) (187,001) Right-of-use assets (63,206) (66,404) Other (40,781) (25,500) Gross deferred income tax liabilities (293,008) (278,905) Deferred income tax asset valuation allowances (101,489) (631,914) Net deferred income tax assets $ 486,918 $ 11,790 Net deferred income tax assets are reported in the consolidated balance sheets as follows: December 31, December 31, (In thousands) Other noncurrent assets $ 526,906 $ 72,682 Other noncurrent liabilities (39,988) (60,892) $ 486,918 $ 11,790 As of December 31, 2021, Mattel had federal and foreign loss carryforwards totaling $446.2 million and federal, state and foreign tax credit carryforwards of $100.6 million, which excludes carryforwards that do not meet the threshold for recognition in the financial statements. Utilization of these loss and tax credit carryforwards is subject to annual limitations. Mattel’s loss and tax credit carryforwards expire in the following periods: Loss Tax Credit (In thousands) 2022–2026 $ 39,420 $ 870 Thereafter 154,475 75,802 No expiration date 252,320 23,902 Total $ 446,215 $ 100,574 Evaluating the need for and the amount of a valuation allowance for deferred tax assets often requires significant judgment and extensive analysis of all available evidence to determine whether it is more likely than not that these assets will be realizable. Mattel routinely assesses the positive and negative evidence for this realizability, including the evaluation of sustained profitability and three years of cumulative pretax income for each tax jurisdiction. During the twelve months ended December 31, 2021, Mattel continued to see improved and sustained profitability, which presents objective positive evidence for the realizability of certain deferred tax assets. As such, based on the overall analysis of the positive and negative evidence in each tax jurisdiction, during 2021 Mattel released the valuation allowances related to U.S. federal, state and certain foreign deferred tax assets, except for certain tax assets that are primarily expected to expire before utilization. Valuation allowance releases for the year ended December 31, 2021 resulted in recognition of a portion of these deferred tax assets and a benefit to Mattel's provision for income taxes of $540.8 million. As of December 31, 2021, Mattel’s valuation allowances on its federal and state deferred tax assets and foreign deferred tax assets were approximately $18 million and $83 million, respectively. Changes in the valuation allowance in 2020 primarily related to interest limitations and credits generated. As of December 31, 2020, Mattel's valuation allowances on its federal and state deferred tax assets and foreign deferred tax assets were approximately $319 million and $313 million, respectively. Differences between the provision for income taxes at the U.S. federal statutory income tax rate and the provision in the consolidated statements of operations are as follows: For the Year Ended December 31, December 31, December 31, (In thousands) Provision (benefit) at U.S. federal statutory rate $ 101,347 $ 41,008 $ (33,240) Differences resulting from: Changes in valuation allowances (540,803) 14,576 8,752 Foreign earnings taxed at different rates, including foreign losses without benefit 35,468 6,203 65,101 State and local taxes, net of U.S. federal (expense) benefit (983) (1,056) 2,438 Adjustments to previously accrued taxes (19,101) 5,354 14,160 Change in indefinite reinvestment assertion 7,000 — (2,700) Other (3,309) (536) 3,813 (Benefit) provision for income taxes $ (420,381) $ 65,549 $ 58,324 In assessing whether uncertain tax positions should be recognized in its financial statements, Mattel first determines whether it is more likely than not that a tax position will be sustained upon examination, including resolution of any related appeals or litigation processes, based on the technical merits of the position. In evaluating whether a tax position has met the more likely than not recognition threshold, Mattel presumes that the position will be examined by the appropriate taxing authority that would have full knowledge of all relevant information. For tax positions that meet the more likely than not recognition threshold, Mattel measures the amount of benefit recognized in the financial statements at the largest amount of benefit that is greater than 50 percent likely of being realized upon ultimate settlement. Mattel recognizes unrecognized tax benefits in the first financial reporting period in which information becomes available indicating that such benefits will more likely than not be realized. Mattel records a reserve for unrecognized tax benefits for U.S. federal, state, local, and foreign tax positions related primarily to transfer pricing, tax credits claimed, tax nexus, and apportionment. For each reporting period, management applies a consistent methodology to measure unrecognized tax benefits, and all unrecognized tax benefits are reviewed periodically and adjusted as circumstances warrant. Mattel’s measurement of its reserve for unrecognized tax benefits is based on management’s assessment of all relevant information, including prior audit experience, the status of audits, conclusions of tax audits, lapsing of applicable statutes of limitations, identification of new issues, and any administrative guidance or developments. A reconciliation of the reserve for unrecognized tax benefits is as follows: For the Year Ended December 31, December 31, December 31, (In thousands) Unrecognized tax benefits at January 1 $ 140,309 $ 137,929 $ 119,818 Increases for positions taken in current year 5,113 5,969 3,836 Increases for positions taken in a prior year 3,658 5,811 29,487 Decreases for positions taken in a prior year (1,324) (3,127) (10,150) Decreases for settlements with taxing authorities (2,852) (3,410) (1,982) Decreases for lapses in the applicable statute of limitations (26,123) (2,863) (3,080) Unrecognized tax benefits at December 31 $ 118,781 $ 140,309 $ 137,929 The $118.8 million of unrecognized tax benefits as of December 31, 2021 would impact the effective tax rate if recognized and there would be no impact in the valuation allowance due to reversal of valuation allowance. Mattel recognized a decrease of interest and penalties of $1.5 million in 2021, a decrease of $2.1 million in 2020, and a decrease of $1.6 million in 2019, related to unrecognized tax benefits, which are reflected in the provision for income taxes in the consolidated statements of operations. As of December 31, 2021, Mattel accrued $21.2 million in interest and penalties related to unrecognized tax benefits, all of which would impact the effective tax rate if recognized. As of December 31, 2020, Mattel accrued $22.7 million in interest and penalties related to unrecognized tax benefits, all of which would impact the effective tax rate if recognized. In January 2018, the FASB issued guidance stating that a company must make an accounting policy election of either (i) treating taxes due on future U.S. inclusions in taxable income related to Global Intangible Low-Taxed Income ("GILTI") as a current-period expense when incurred (the "period cost method") or (ii) factoring such amounts into a company’s measurement of its deferred taxes (the "deferred method"). Mattel has elected the period cost method with respect to reporting taxes due on GILTI income inclusions. In the normal course of business, Mattel is regularly audited by federal, state, local and foreign tax authorities. Mattel remains subject to IRS examination for the 2018 through 2021 tax years. Mattel files multiple state and local income tax returns and remains subject to examination in various jurisdictions, including California for the 2017 through 2021 tax years, New York for the 2018 through 2021 tax years, and Wisconsin for the 2013 through 2021 tax years. Mattel files multiple foreign income tax returns and remains subject to examination in various foreign jurisdictions including Hong Kong for the 2015 through 2021 tax years, Brazil for the 2016 through 2021 tax years, Mexico for the 2016 through 2021 tax years, Netherlands for the 2017 through 2021 tax years, Russia for the 2019 through 2021 tax years, Cyprus for the 2019 through 2021 tax years, China for the 2010 through 2021 tax years, and United Kingdom for the 2017 through 2021 tax years. Based on the current status of federal, state, local, and foreign audits, Mattel believes it is reasonably possible that in the next 12 months, the total unrecognized tax benefits could decrease by $15.0 million related to the settlement of tax audits and/or the expiration of statutes of limitations. The ultimate settlement of certain issues with the applicable taxing authority could have a material impact on Mattel’s consolidated financial statements. Mattel has recorded a deferred tax liability of $19.0 million and $12.0 million related to undistributed earnings of certain foreign subsidiaries as of December 31, 2021 and December 31, 2020, respectively. During 2021, Mattel recorded an approximately $7.0 million deferred tax liability on $3.5 billion of undistributed foreign earnings for which deferred taxes had not previously been recorded. Taxes have not been provided on approximately $2.8 billion of undistributed foreign U.S. GAAP retained earnings. The determination of any incremental tax liability associated with these earnings is not practicable due to the complexity of local country withholding rules and interactions with tax treaties, foreign exchange considerations, and the diversity of state income tax treatment on actual distribution. Mattel will remit reinvested earnings of its foreign subsidiaries for which a deferred tax liability has been recorded when Mattel determines that it is advantageous for business operations or cash management purposes. |
Supplemental Financial Informat
Supplemental Financial Information | 12 Months Ended |
Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Supplemental Financial Information | Supplemental Financial Information December 31, December 31, (In thousands) Inventories include the following: Finished goods $ 600,784 $ 418,464 Raw materials and work in process 176,400 110,010 $ 777,184 $ 528,474 Accrued liabilities include the following: Advertising and promotion $ 179,687 $ 163,181 Incentive compensation 140,769 126,601 Lease liability 73,752 79,540 For the Year Ended December 31, December 31, December 31, (In thousands) Currency transaction losses included in: Operating income $ (10,212) $ (8,780) $ (4,463) Other non-operating expense, net (8,224) (696) (527) Currency transaction losses, net $ (18,436) $ (9,476) $ (4,990) Other selling and administrative expenses include the following: Design and development $ 189,372 $ 189,494 $ 197,226 Identifiable intangible asset amortization 38,039 38,925 40,112 Bad debt expense, net 1,202 9,149 967 |
Revision for Immaterial Misstat
Revision for Immaterial Misstatements | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Changes and Error Corrections [Abstract] | |
Revision for Immaterial Misstatements | Revision for Immaterial Misstatements As disclosed in "Note 1 to the Consolidated Financial Statements—Basis of Presentation," during the second quarter of 2021, Mattel identified misstatements for inventory tooling expenses that should have first been capitalized into inventory and a misstatement related to the timing of disbursements for certain capital expenditures that resulted in a cash flow misclassification between operating activities and investing activities. Although Mattel concluded that these misstatements were not material, either individually or in the aggregate, to its current or previously issued consolidated financial statements, Mattel elected to revise its previously issued consolidated financial statements to correct for these misstatements. In conjunction with such revision, Mattel is also correcting for other previously identified immaterial misstatements that were previously corrected for as out of period adjustments in the period of identification. Due to certain misstatements originating prior to 2018, the opening retained earnings balance as of January 1, 2018 was understated by $25.1 million, primarily due to the net impact of the tooling misstatement of $37.2 million, partially offset by other previously identified misstatements of $12.1 million. Such previously identified misstatements were previously corrected for as out of period adjustments and included the improper revenue recognition for certain licensing contracts executed prior to 2018 and the understatement of depreciation expense for certain fixed assets. Similarly, the opening retained earnings balance as of January 1, 2020 was understated by $16.9 million, which principally included the net impact of the tooling misstatement and an over-accrual of advertising costs. The revision also reflects the correction of previously identified balance sheet misclassifications, including a misclassification between property, plant and equipment and other assets associated with capitalized implementation costs for cloud computing software. The accompanying consolidated statements of cash flows have been revised to reflect the above items, inclusive of the cash flow misstatement between operating and investing activities related to capitalized implementation costs for cloud computing software and the timing of disbursements for capital expenditures. The revision to the accompanying consolidated balance sheets, consolidated statement of operations and comprehensive loss, and consolidated statement of cash flows are as follows. There were no changes to the consolidated statements of stockholders’ equity that have not otherwise been reflected in the consolidated balance sheet and consolidated statement of operations and comprehensive income or loss as detailed in the tables below: As of December 31, 2020 As Previously Reported Adjustments As Revised (In thousands) Consolidated Balance Sheet Inventories $ 514,673 $ 13,801 $ 528,474 Total current assets 2,482,890 13,801 2,496,691 Total assets 5,521,089 13,801 5,534,890 Retained earnings 1,539,809 13,801 1,553,610 Total stockholders' equity 596,343 13,801 610,144 Total liabilities and stockholders' equity 5,521,089 13,801 5,534,890 Year Ended December 31, 2020 As Previously Reported Adjustments As Revised (In thousands, except per share amounts) Consolidated Statement of Operations and Comprehensive Income Net sales $ 4,583,660 $ 4,773 $ 4,588,433 Cost of sales 2,340,066 5,264 2,345,330 Gross profit 2,243,594 (491) 2,243,103 Advertising and promotion expenses 516,803 9,000 525,803 Other selling and administrative expenses 1,345,906 (3,342) 1,342,564 Operating income 380,885 (6,149) 374,736 Income before income taxes 183,806 (6,149) 177,657 Provision for income taxes 68,649 (3,100) 65,549 Net income 126,628 (3,049) 123,579 Comprehensive income 51,536 (3,049) 48,487 Net loss per common share - basic $ 0.36 $ (0.01) $ 0.36 Net income per common share - diluted $ 0.36 $ (0.01) $ 0.35 Year Ended December 31, 2019 As Previously Reported Adjustments As Revised (In thousands, except per share amounts) Consolidated Statement of Operations and Comprehensive Loss Cost of sales $ 2,523,792 $ 3,438 $ 2,527,230 Gross profit 1,980,779 (3,438) 1,977,341 Advertising and promotion expenses 551,517 (1,300) 550,217 Operating income 39,240 (2,138) 37,102 Loss before income taxes (157,517) (2,138) (159,655) Provision for income taxes 55,224 3,100 58,324 Net loss (213,512) (5,238) (218,750) Comprehensive loss (223,770) (5,238) (229,008) Net loss per common share - basic $ (0.62) $ (0.01) $ (0.63) Net income per common share - diluted $ (0.62) $ (0.01) $ (0.63) Year Ended December 31, 2020 As Previously Reported Adjustments As Revised (In thousands) Consolidated Statement of Cash Flows Net income $ 126,628 $ (3,049) $ 123,579 Depreciation 160,973 (6,447) 154,526 Deferred income taxes (2,200) (3,100) (5,300) Changes in assets and liabilities: Inventories (50,562) 8,369 (42,193) Prepaid expenses and other current assets 5,661 (25,700) (20,039) Accounts payable, accrued liabilities, and income taxes payable 11,209 6,194 17,403 Other, net (26,457) 20,927 (5,530) Net cash flows provided by operating activities 288,502 (2,806) 285,696 Purchases of other property, plant, and equipment (62,195) 2,806 (59,389) Net cash flows used for investing activities (134,910) 2,806 (132,104) Year Ended December 31, 2019 As Previously Reported Adjustments As Revised (In thousands) Consolidated Statement of Cash Flows Net loss $ (213,512) $ (5,238) $ (218,750) Asset impairments 38,729 2,485 41,214 Deferred income taxes (9,136) 3,100 (6,036) Changes in assets and liabilities: Inventories (26,920) 4,234 (22,686) Prepaid expenses and other current assets 47,971 1,100 49,071 Accounts payable, accrued liabilities, and income taxes payable (58,679) 4,027 (54,652) Other, net (10,094) (22,249) (32,343) Net cash flows provided by operating activities 180,977 (12,541) 168,436 Purchases of tools, dies, and molds (50,509) (2,485) (52,994) Purchases of other property, plant, and equipment (65,843) 15,026 (50,817) Net cash flows used for investing activities (114,176) 12,541 (101,635) |
Valuation and Qualifying Accoun
Valuation and Qualifying Accounts and Allowances | 12 Months Ended |
Dec. 31, 2021 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Valuation and Qualifying Accounts and Allowances | SCHEDULE II MATTEL, INC. AND SUBSIDIARIES VALUATION AND QUALIFYING ACCOUNTS AND ALLOWANCES Balance at Beginning of Year Additions Charged to Operations Net Deductions and Other Balance at End of Year (In thousands) Allowance for Credit Losses: Year Ended December 31, 2021 $ 15,930 $ 1,202 $ (6,464) (a) $ 10,668 Year Ended December 31, 2020 $ 18,466 $ 9,149 $ (11,685) (a) $ 15,930 Year Ended December 31, 2019 $ 21,958 $ 967 $ (4,459) (a) $ 18,466 Income Tax Valuation Allowances: Year Ended December 31, 2021 $ 631,914 $ 198,794 (b) $ (729,219) (c) $ 101,489 Year Ended December 31, 2020 $ 610,560 $ 63,635 (b) $ (42,281) (c) $ 631,914 Year Ended December 31, 2019 $ 365,820 $ 284,629 (b) $ (39,889) (c) $ 610,560 (a) Includes write-offs, recoveries of previous write-offs, and currency translation adjustments. (b) For the years ended December 31, 2021, 2020, and 2019, the additions represent increases related to losses and credits without benefit. For the year ended December 31, 2019, the additions also represent an increase related to a deferred tax asset on the transfer of intangible asset rights. See Item 8 "Financial Statements and Supplementary Data - Note 15 to the Consolidated Financial Statements - Income Taxes" for additional details. (c) For the year ended December 31, 2021, the deductions primarily included a reversal of the valuation allowances on certain federal, state, and foreign deferred tax assets and projected utilization and write-offs of loss carryforwards and certain deferred tax assets. For the years ended December 31, 2020 and 2019, the deductions primarily represent projected utilization and write-offs of loss carryforwards and certain deferred tax assets. See Item 8 "Financial Statements and Supplementary Data - Note 15 to the Consolidated Financial Statements - Income Taxes" for additional details. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Principles of Consolidation and Basis of Preparation | The consolidated financial statements include the accounts of Mattel, Inc. and its subsidiaries. All wholly and majority-owned subsidiaries are consolidated and included in Mattel’s consolidated financial statements. Mattel does not have any minority stock ownership interests in which it has a controlling financial interest that would require consolidation. All significant intercompany accounts and transactions have been eliminated upon consolidation. |
Reclassifications | Certain prior period amounts have been reclassified to conform to the current period presentation. |
Revision of Previously Issued Consolidated Financial Statements | During the second quarter of 2021, Mattel identified a misstatement in its accounting for inventory tooling expenses, which were expensed to cost of sales rather than first being capitalized into the cost of inventory, which resulted in an understatement of inventory balances and a misstatement of cost of sales. Mattel also identified a misstatement related to the timing of disbursements for certain capital expenditures, which resulted in a cash flow misclassification between operating activities and investing activities. Mattel evaluated the misstatements and concluded that the misstatements were not material, either individually or in the aggregate, to its current or previously issued consolidated financial statements. To correct the immaterial misstatements, during the second quarter of 2021, Mattel elected to revise its previously issued consolidated financial statements as of December 31, 2020 and 2019, and for each of the three years ended December 31, 2020, 2019, and 2018. The revision of the historical consolidated financial statements also includes the correction of other immaterial misstatements in its consolidated statement of operations that Mattel had previously recorded as out of period adjustments, as well as other previously identified balance sheet misclassifications. Mattel had previously determined that these misstatements did not, either individually or in the aggregate, result in a material misstatement of its previously issued consolidated financial statements and reached the same conclusion when aggregating with the recently identified misstatements. |
Use of Estimates | Preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States of America ("U.S. GAAP") requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could ultimately differ from those estimates. |
Cash and Equivalents | Cash and equivalents include short-term investments, which are highly liquid investments with maturities of three months or less when purchased. Such investments are stated at cost, which approximates market value. |
Accounts Receivable and Allowance for Credit Losses | Credit is granted to customers on an unsecured basis. Credit limits and payment terms are established based on extensive evaluations made on an ongoing basis throughout the fiscal year of the financial performance, cash generation, financing availability, and liquidity status of each customer. Customers are reviewed at least annually, with more frequent reviews performed as necessary, based on the customers’ financial condition and the level of credit being extended. For customers who are experiencing financial difficulties, management performs additional financial analyses before shipping to those customers on credit. Mattel uses a variety of financial arrangements to ensure collectability of accounts receivable of customers, including requiring letters of credit, purchasing various forms of credit insurance with unrelated third parties, or requiring cash in advance of shipment.Mattel records an allowance for 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. |
Inventories | Inventories, net of the obsolescence reserve, are stated at the lower of cost or net realizable value. Expense associated with the obsolescence reserve is recognized in cost of sales and establishes a lower cost basis for the inventory. Cost is determined by the first-in, first-out method. |
Property, Plant, and Equipment | Property, plant, and equipment are stated at cost less accumulated depreciation. Depreciation is computed using the straight-line method over estimated useful lives of 10 to 30 years for buildings, 3 to 15 years for machinery and equipment, 3 to 10 years for software, and 10 to 20 years, not to exceed the lease term, for leasehold improvements. Tools, dies, and molds are depreciated using the straight-line method over 3 years. Estimated useful lives are periodically reviewed and, where appropriate, changes are made prospectively. The carrying value of property, plant, and equipment is reviewed when events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. Any potential impairment identified is initially assessed by evaluating the operating performance and future undiscounted cash flows of the underlying assets groups. When property, plant and equipment are sold or retired, the cost of the property and the related accumulated depreciation are removed from the consolidated balance sheets, and any resulting gain or loss is included in the consolidated statements of operations. |
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. Components of the operating segments have been aggregated into a single reporting unit as the components have similar economic characteristics. The similar economic characteristics include the nature of the products, the nature of the production processes, the customers, and the manner in which the products are distributed. Mattel tests its goodwill for impairment annually in the third quarter and whenever events or changes in circumstances indicate that the carrying value of a reporting unit may exceed its fair value. |
Amortizable Intangible Assets | Mattel also tests its amortizable intangible assets, which are primarily comprised of trademarks and trade names, for impairment whenever events or changes in circumstances indicate that the carrying value of the asset may not be recovered. Amortization is computed primarily using the straight-line method over the estimated useful lives of the amortizable intangible assets. |
Foreign Currency Translation Exposure | Mattel’s reporting currency is the U.S. dollar. The translation of its net investments in subsidiaries with non-U.S. dollar functional currencies subjects Mattel to the impact of currency exchange rate fluctuations in its results of operations and financial position. Assets and liabilities of subsidiaries with non-U.S. dollar functional currencies are translated into U.S. dollars at year-end exchange rates. Net income (loss) and cash flow items are translated at weighted-average exchange rates prevailing during the year. The resulting currency translation adjustments are recorded as a component of accumulated other comprehensive loss within stockholders’ equity. Mattel’s primary currency translation adjustments in 2021 were related to its net investments in entities having functional currencies denominated in the Turkish lira, Chilean peso, Mexican peso, Euro, and Brazilian real. |
Foreign Currency Transaction Exposure | Currency exchange rate fluctuations may impact Mattel’s results of operations and cash flows. Mattel’s currency transaction exposures include gains and losses realized on unhedged inventory purchases and unhedged receivables and payables balances that are denominated in a currency other than the applicable functional currency. Gains and losses on unhedged inventory purchases and other transactions associated with operating activities are recorded in the components of operating income in the consolidated statements of operations. Transaction gains or losses on hedged intercompany inventory transactions are recorded in the consolidated statements of operations in the period in which the inventory is sold to customers. Gains and losses on unhedged intercompany loans and advances are recorded as a component of other non-operating 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, Russian ruble, Australian dollar, and Polish zloty were the primary transactions that caused foreign currency transaction exposure for Mattel in 2021. |
Derivative Instruments | Mattel uses foreign currency forward exchange contracts as cash flow hedges primarily to hedge its purchases and sales of inventory denominated in foreign currencies. At the inception of the contracts, Mattel designates these derivatives as cash flow hedges and documents the relationship of the hedge to the underlying transaction. Hedge effectiveness is assessed at inception and throughout the life of the hedge to ensure the hedge qualifies for hedge accounting. Changes in fair value associated with hedge ineffectiveness, if any, are recorded in the consolidated statements of operations. Changes in fair value of cash flow hedge derivatives are deferred and recorded as part of accumulated other comprehensive loss in stockholders’ equity until the underlying transaction affects earnings. In the event that an anticipated transaction is no longer likely to occur, Mattel recognizes the change in fair value of the derivative in its consolidated statements of operations in the period the determination is made. Mattel uses foreign currency forward exchange contracts to hedge intercompany loans and advances denominated in foreign currencies. Due to the short-term nature of the contracts involved, Mattel does not use hedge accounting for these contracts, and as such, changes in fair value are recorded in the period of change in the consolidated statements of operations. Mattel utilizes derivative contracts to hedge certain purchases of commodities, which were not material. |
Revenue Recognition and Sales Adjustments | Revenue is recognized when control of the goods is transferred to the customer, which is either upon shipment or upon receipt of finished goods by the customer, depending on the contract terms. Mattel routinely enters into arrangements with its customers to provide sales incentives, support customer promotions, and allowances for returns or defective merchandise. Such programs are based primarily on customer purchases, customer performance of specified promotional activities, and other specified factors such as sales to consumers. Accruals for these programs are recorded as sales adjustments that reduce gross billings in the period the related sale is recognized. The accrual for such programs, which can either be contractual or discretionary in nature, is based on an assessment of customer purchases, customer performance of specified promotional activities, and other specified factors such as customer sales volume. In making these estimates, management considers all available information, including the overall business environment, historical trends, and information from customers. Mattel also enters into symbolic and functional licensing arrangements, whereby the licensee pays Mattel royalties based on sales of licensed product, and in certain cases are subject to minimum guaranteed amounts. The timing of revenue recognition for certain of these licensing arrangements with minimum guarantees is based on the determination of whether the license of intellectual property ("IP") is symbolic, which includes the license of Mattel's brands, or functional, which includes the license of Mattel's completed television or streaming content. Revenues from symbolic licenses of IP are recognized based on actual sales when Mattel expects royalties to exceed the minimum guarantee. For symbolic licensing arrangements in which Mattel does not expect royalties to exceed the minimum guarantee, an estimate of the royalties expected to be recouped is recognized on a straight-line basis over the license term. Revenues from functional licenses of IP are recognized once the license period has commenced and the licensee has the ability to use the delivered content. |
Advertising and Promotion Costs | Advertising production costs are expensed in the period the underlying advertisement is first aired. The costs of other advertising and promotional programs are expensed in the period incurred. |
Product Recalls and Withdrawals | Mattel establishes a reserve for product recalls and withdrawals on a product-specific basis when circumstances giving rise to the recall or withdrawal become known. Facts and circumstances related to the recall or withdrawal, including where the product affected by the recall or withdrawal is located (e.g., with consumers, in customers’ inventory, or in Mattel’s inventory), cost estimates for shipping and handling for returns, cost estimates for communicating the recall or withdrawal to consumers and customers, and cost estimates for parts and labor if the recalled or withdrawn product is deemed to be repairable, are considered when establishing a product recall or withdrawal reserve. These factors are updated and reevaluated each period, and the related reserves are adjusted when these factors indicate that the recall or withdrawal reserve is either not sufficient to cover or exceeds the estimated product recall or withdrawal expenses. |
Design and Development Costs | Product design and development costs primarily include employee compensation and outside services and are charged to the results of operations as incurred. |
Employee Benefit Plans | Mattel and certain of its subsidiaries have retirement and other postretirement benefit plans covering substantially all employees of these entities. Actuarial valuations are used in determining amounts recognized in the financial statements for certain retirement and other postretirement benefit plans (see "Note 4 to the Consolidated Financial Statements—Employee Benefit Plans"). |
Share-Based Payments | Mattel recognizes the cost of service-based employee share-based payment awards on a straight-line attribution basis over the requisite employee service period, net of estimated forfeitures. Determining the fair value of share-based awards at the measurement date requires judgment, including estimating the expected term that stock options will be outstanding prior to exercise, the associated volatility, and the expected dividends. With the exception of certain market-based options granted in 2018, which are valued using a Monte Carlo valuation methodology, Mattel estimates the fair value of options granted using the Black-Scholes valuation model. The expected life of stock options used in this calculation is the period of time the options are expected to be outstanding and has been determined based on historical exercise experience. Expected stock price volatility is based on the historical volatility of Mattel’s stock for a period approximating the expected life, the expected dividend yield is based on Mattel’s most recent actual annual dividend payout, and the risk-free interest rate is based on the implied yield available on U.S. Treasury zero-coupon issues approximating the expected life. Judgment is also required in estimating the amount of share-based awards that will be forfeited prior to vesting. Mattel determines the fair value of RSUs, excluding performance RSUs, based on the closing market price of Mattel’s common stock on the date of grant, adjusted by the present value of the expected dividends for RSUs that are not entitled to a dividend during the vest period. |
Income Taxes | Certain income and expense items are accounted for differently for financial reporting and income tax purposes. Deferred income tax assets and liabilities are determined based on the difference between the financial statement and tax bases of assets and liabilities, applying enacted statutory income tax rates in effect for the year in which the differences are expected to reverse. Mattel evaluates the realization of its deferred tax assets based on all available evidence and establishes a valuation allowance to reduce deferred tax assets when it is more likely than not that they will not be realized. Mattel recognizes the financial statement effects of a tax position when it is more likely than not that, based on technical merits, the position will be sustained upon examination. The tax benefits of the position recognized in the financial statements are then measured based on the largest amount of benefit that is greater than 50% likely to be realized upon settlement with a taxing authority. In addition, Mattel recognizes interest and penalties related to unrecognized tax benefits as a component of the income tax provision . |
Equity Method Investments | Mattel utilizes the equity method when accounting for investments in which Mattel is able to exercise significant influence, but does not hold controlling interest. Significant influence is generally presumed to exist when Mattel owns between 20% to 50% of the investee. Under the equity method of accounting, the investee's financials are not consolidated within Mattel's financial statements. Mattel records its portion of an investee’s earnings and losses on a three-month lag as investee financial information is not available in a sufficiently timely manner. Equity method investments were not significant for the periods presented. |
New Accounting Pronouncements | Recently Adopted Accounting Pronouncements In December 2019, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("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. The amendments related to changes in ownership of foreign equity method investments or foreign subsidiaries are applied on a modified retrospective basis through a cumulative effect adjustment to retained earnings as of the beginning of the fiscal year of adoption. Mattel adopted ASU 2019-12 on January 1, 2021. 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 March 2020 and January 2021, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting and ASU 2021-01, Reference Rate Reform (Topic 848): Scope, respectively. ASU 2020-04 and ASU 2021-01 provide optional expedients and exceptions for applying U.S. GAAP, to contracts, hedging relationships, and other transactions that reference the LIBOR or another reference rate expected to be discontinued because of reference rate reform, if certain criteria are met. The guidance in ASU 2020-04 and ASU 2021-01 was effective upon issuance and, once adopted, may be applied prospectively to contract modifications and hedging relationships through December 31, 2022. Mattel is currently evaluating the impact of the adoption of ASU 2020-04 and ASU 2021-01 on its consolidated financial statements. |
Segment Reporting | The corporate and other expense category includes operating costs not allocated to individual segments, including charges related to incentive and share-based compensation, corporate headquarters functions managed on a worldwide basis, the impact of changes in foreign currency exchange rates on intercompany transactions, and certain severance and other restructuring costs. It is impracticable for Mattel to present net sales by categories, brands, or products, as trade discounts and other allowances are generally recorded in the financial accounting systems by customer. |
Property, Plant, and Equipment
Property, Plant, and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant, and Equipment | Property, plant, and equipment, net includes the following: December 31, December 31, (In thousands) Land $ 21,811 $ 24,913 Buildings 317,114 331,898 Machinery and equipment 762,462 753,338 Software 348,062 342,364 Tools, dies, and molds 537,499 585,170 Leasehold improvements 115,844 130,789 Construction in progress 55,559 47,958 2,158,351 2,216,430 Less: accumulated depreciation (1,702,385) (1,742,636) $ 455,966 $ 473,794 |
Goodwill and Other Intangibles
Goodwill and Other Intangibles (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The change in the carrying amount of goodwill by operating segment for 2021 and 2020 is shown below. Brand-specific goodwill held by foreign subsidiaries is allocated to the North America operating segment selling those brands, thereby causing a foreign currency translation impact. During the first quarter of 2021, Mattel sold its arts, crafts, and stationery business, resulting in a reduction of goodwill of approximately $2 million. North America International American Girl Total (In thousands) Balance at December 31, 2019 $ 732,430 $ 450,713 $ 207,571 $ 1,390,714 Currency exchange rate impact 971 2,149 — 3,120 Balance at December 31, 2020 733,401 452,862 207,571 1,393,834 Dispositions (1,290) (1,056) — (2,346) Currency exchange rate impact (322) (959) — (1,281) Balance at December 31, 2021 $ 731,789 $ 450,847 $ 207,571 $ 1,390,207 |
Schedule of Future Amortization Expense | The estimated future amortization expense for the next five years is as follows: Amortization Expense (In thousands) 2022 $ 38,503 2023 39,250 2024 33,074 2025 33,012 2026 29,612 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Retirement Benefits [Abstract] | |
Schedule of Retirement Plan Expense | A summary of retirement plan expense, net is as follows: For the Year Ended December 31, December 31, December 31, (In thousands) Defined benefit pension plans $ 14,858 $ 9,670 $ 9,815 Defined contribution retirement plans 34,821 26,697 32,743 Postretirement benefit plans (1,968) (1,972) (2,220) Deferred compensation and excess benefit plans 6,857 6,391 10,994 $ 54,568 $ 40,786 $ 51,332 |
Schedule of Defined Benefit Plan Amounts Recognized in Other Comprehensive (Loss) Income | A summary of the components of Mattel’s net periodic benefit cost (credit) and other changes in plan assets and benefit obligations recognized in other comprehensive income (loss) for the years ended December 31 is as follows: Defined Benefit Pension Plans Postretirement Benefit Plans 2021 2020 2019 2021 2020 2019 (In thousands) Net periodic benefit cost (credit): Service cost $ 4,925 $ 4,348 $ 4,479 $ 2 $ 1 $ 1 Interest cost 10,094 15,079 19,309 78 139 201 Expected return on plan assets (18,531) (19,694) (21,714) — — — Amortization of prior service cost (credit) 163 303 64 (2,038) (2,038) (2,038) Recognized actuarial loss (gain) 11,177 9,584 7,585 (10) (74) (384) Settlement loss 6,982 — — — — — Curtailment loss 48 50 92 — — — Net periodic benefit cost (credit) $ 14,858 $ 9,670 $ 9,815 $ (1,968) $ (1,972) $ (2,220) Other changes in plan assets and benefit obligations recognized in other comprehensive income (loss): Net actuarial (gain) loss $ (42,671) $ 12,624 $ 28,740 $ (605) $ 850 $ 1,870 Prior service (credit) cost 204 269 26 — — — Amortization of prior service (cost) credit (163) (303) (64) 2,038 2,038 2,038 Total recognized in other comprehensive (income) loss (a) $ (42,630) $ 12,590 $ 28,702 $ 1,433 $ 2,888 $ 3,908 Total recognized in net periodic benefit (credit) cost and other comprehensive income (loss) $ (27,772) $ 22,260 $ 38,517 $ (535) $ 916 $ 1,688 (a) Amounts exclude related tax expense (benefit) of approximately $9 million, $2 million, and $(6) million, during 2021, 2020, and 2019, respectively, which are also included in other comprehensive income (loss). |
Schedule of Components of Net Periodic Benefit Cost (Credit) | A summary of the components of Mattel’s net periodic benefit cost (credit) and other changes in plan assets and benefit obligations recognized in other comprehensive income (loss) for the years ended December 31 is as follows: Defined Benefit Pension Plans Postretirement Benefit Plans 2021 2020 2019 2021 2020 2019 (In thousands) Net periodic benefit cost (credit): Service cost $ 4,925 $ 4,348 $ 4,479 $ 2 $ 1 $ 1 Interest cost 10,094 15,079 19,309 78 139 201 Expected return on plan assets (18,531) (19,694) (21,714) — — — Amortization of prior service cost (credit) 163 303 64 (2,038) (2,038) (2,038) Recognized actuarial loss (gain) 11,177 9,584 7,585 (10) (74) (384) Settlement loss 6,982 — — — — — Curtailment loss 48 50 92 — — — Net periodic benefit cost (credit) $ 14,858 $ 9,670 $ 9,815 $ (1,968) $ (1,972) $ (2,220) Other changes in plan assets and benefit obligations recognized in other comprehensive income (loss): Net actuarial (gain) loss $ (42,671) $ 12,624 $ 28,740 $ (605) $ 850 $ 1,870 Prior service (credit) cost 204 269 26 — — — Amortization of prior service (cost) credit (163) (303) (64) 2,038 2,038 2,038 Total recognized in other comprehensive (income) loss (a) $ (42,630) $ 12,590 $ 28,702 $ 1,433 $ 2,888 $ 3,908 Total recognized in net periodic benefit (credit) cost and other comprehensive income (loss) $ (27,772) $ 22,260 $ 38,517 $ (535) $ 916 $ 1,688 (a) Amounts exclude related tax expense (benefit) of approximately $9 million, $2 million, and $(6) million, during 2021, 2020, and 2019, respectively, which are also included in other comprehensive income (loss). |
Schedule of Assumptions Used to Calculate Net Periodic Benefit Cost for Domestic Defined Benefit Pension and Postretirement Benefit Plans | Net periodic benefit cost (credit) for Mattel’s domestic defined benefit pension and postretirement benefit plans was calculated on January 1 of each year using the following assumptions: For the Year Ended December 31, December 31, December 31, Defined benefit pension plans: Discount rate 2.2 % 3.0 % 4.1 % Weighted-average rate of future compensation increases N/A N/A N/A Long-term rate of return on plan assets 5.0 % 5.5 % 6.0 % Postretirement benefit plans: Discount rate 2.2 % 3.0 % 4.1 % Annual increase in Medicare Part B premium 6.0 % 6.0 % 6.0 % Health care cost trend rate: Pre-65 7.0 % 7.0 % 7.0 % Post-65 6.8 % 6.8 % 6.8 % Ultimate cost trend rate: Pre-65 4.5 % 4.5 % 4.5 % Post-65 4.5 % 4.5 % 4.5 % Year that the rate reaches the ultimate cost trend rate: Pre-65 2027 2026 2025 Post-65 2027 2026 2025 |
Schedule of Changes in Benefit Obligation and Plan Assets for Defined Benefit Pension and Postretirement Benefit Plans | A summary of the changes in benefit obligation and plan assets is as follows: Defined Benefit Postretirement December 31, December 31, December 31, December 31, (In thousands) Change in Benefit Obligation: Benefit obligation, beginning of year $ 671,181 $ 628,152 $ 6,246 $ 5,781 Service cost 4,925 4,348 2 1 Interest cost 10,094 15,079 78 139 Impact of currency exchange rate changes (5,762) 9,076 — — Actuarial (gain) loss (16,597) 45,907 (614) 773 Benefits paid (49,895) (33,447) (536) (448) Plan amendments (656) 2,066 — — Settlements 1,612 — — — Other (1,636) — — — Benefit obligation, end of year $ 613,266 $ 671,181 $ 5,176 $ 6,246 Change in Plan Assets: Plan assets at fair value, beginning of year $ 457,880 $ 431,747 $ — $ — Actual return on plan assets 28,622 44,104 — — Employer contributions 21,841 10,937 536 448 Impact of currency exchange rate changes (1,244) 4,769 — — Benefits paid (49,895) (33,447) (536) (448) Settlements — (230) — — Other (72) — — — Plan assets at fair value, end of year $ 457,132 $ 457,880 $ — $ — Net Amount Recognized in Consolidated Balance Sheets: Funded status, end of year $ (156,134) $ (213,301) $ (5,176) $ (6,246) Current accrued benefit liability $ (5,119) $ (5,687) $ (730) $ (840) Noncurrent accrued benefit liability, net (151,015) (207,614) (4,446) (5,406) Net amount recognized $ (156,134) $ (213,301) $ (5,176) $ (6,246) Amounts Recognized in Accumulated Other Comprehensive Loss (a): Net actuarial loss (gain) $ 236,667 $ 279,338 $ (956) $ (351) Prior service cost (credit) 189 148 (8,110) (10,148) $ 236,856 $ 279,486 $ (9,066) $ (10,499) (a) Amounts exclude related tax benefits of approximately $74 million and $83 million for December 31, 2021 and 2020, respectively, which are also included in accumulated other comprehensive loss. |
Schedule of Accumulated and Projected Benefit Obligations | As of December 31, 2021 and 2020, information for defined benefit pension plans that had aggregate accumulated benefit obligations and projected benefit obligations in excess of plan assets is as follows: For the Year Ended December 31, December 31, (In thousands) Projected benefit obligation $ 523,968 $ 577,418 Accumulated benefit obligation 506,124 559,039 Fair value of plan assets 348,660 351,650 |
Schedule of Assumptions Used to Determine Projected and Accumulated Benefit Obligations of Domestic Defined Benefit Pension and Postretirement Benefit Plans | The assumptions used in determining the projected and accumulated benefit obligations of Mattel’s domestic defined benefit pension and postretirement benefit plans are as follows: December 31, December 31, Defined benefit pension plans: Discount rate 2.5 % 2.2 % Cash balance interest crediting rate 4.0 % 4.0 % Weighted-average rate of future compensation increases N/A N/A Postretirement benefit plans: Discount rate 2.5 % 2.2 % Annual increase in Medicare Part B premium 6.0 % 6.0 % Health care cost trend rate: Pre-65 7.0 % 7.0 % Post-65 7.0 % 6.8 % Ultimate cost trend rate: Pre-65 4.5 % 4.5 % Post-65 4.5 % 4.5 % Year that the rate reaches the ultimate cost trend rate: Pre-65 2028 2027 Post-65 2028 2027 |
Schedule of Estimated Future Benefit Payments for Defined Benefit Pension and Postretirement Benefit Plans | The estimated future benefit payments for Mattel’s defined benefit pension and postretirement benefit plans are as follows: Defined Benefit Postretirement (In thousands) 2022 $ 36,733 $ 730 2023 35,462 630 2024 37,931 530 2025 36,268 530 2026 35,159 530 2027 - 2031 175,748 1,520 |
Schedule of Plan Assets Measured and Reported in Financial Statements at Fair Value | Mattel’s defined benefit pension plan assets are measured and reported in the consolidated financial statements at fair value using inputs, which are more fully described in "Note 10 to the Consolidated Financial Statements—Fair Value Measurements," as follows: December 31, 2021 Level 1 Level 2 Level 3 Total (In thousands) U.S. government and U.S. government agency securities $ — $ 1,584 $ — $ 1,584 U.S. corporate debt instruments — 68,070 — 68,070 International corporate debt instruments — 23,752 — 23,752 Mutual funds (a) — — — 132,165 Money market funds 3,650 — — 3,650 Other investments — 6,979 — 6,979 Insurance "buy-in" policy — — 30,731 30,731 Collective trust funds (a): U.S. equity securities 65,256 International equity securities 12,832 Global fixed income 48,745 Diversified funds 46,407 Real Estate $ 16,961 Total $ 3,650 $ 100,385 $ 30,731 $ 457,132 December 31, 2020 Level 1 Level 2 Level 3 Total (In thousands) U.S. government and U.S. government agency securities $ — $ 14,132 $ — $ 14,132 U.S. corporate debt instruments — 69,708 — 69,708 International corporate debt instruments — 17,490 — 17,490 Mutual funds (a) — — — 73,314 Money market funds 323 — — 323 Other investments — 8,449 — 8,449 Insurance "buy-in" policy — — 32,794 32,794 Collective trust funds (a): U.S. equity securities 69,528 International equity securities 66,749 Global fixed income 45,862 Diversified funds 42,884 Real Estate $ 16,647 Total $ 323 $ 109,779 $ 32,794 $ 457,880 (a) These investments primarily consist of privately placed funds that are valued based on net asset value per share. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the statement of financial position and its related disclosures. |
Schedule of Assets Measured at Fair Value on a Recurring Basis Using Unobservable Inputs | The following table provides a reconciliation of the beginning and ending balances of assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3): Level 3 (in thousands) Balance at December 31, 2019 $ 31,281 Purchases, sales, and settlements (1,867) Change in fair value 3,380 Balance at December 31, 2020 32,794 Purchases, sales, and settlements (1,854) Change in fair value (209) Balance at December 31, 2021 $ 30,731 |
Seasonal Financing and Debt (Ta
Seasonal Financing and Debt (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt | Mattel’s long-term debt consists of the following: Interest Rate December 31, December 31, (In thousands) 2010 Senior Notes due October 2040 6.20 % $ 250,000 $ 250,000 2011 Senior Notes due November 2041 5.45 % 300,000 300,000 2013 Senior Notes due March 2023 3.15 % 250,000 250,000 2017/2018 Senior Notes due December 2025 6.75 % — 1,500,000 2019 Senior Notes due December 2027 5.875 % 600,000 600,000 2021 Senior Notes due April 2026 3.375 % 600,000 — 2021 Senior Notes due April 2029 3.75 % 600,000 — Debt issuance costs and debt discount (29,008) (45,336) 2,570,992 2,854,664 Less: current portion — — Total long-term debt $ 2,570,992 $ 2,854,664 |
Schedule of Long-Term Debt Maturity | The aggregate principal amount of long-term debt maturing in the next five years and thereafter is as follows: 2010 2011 2013 2019 2021 Total (In thousands) 2022 $ — $ — $ — $ — $ — $ — 2023 — — 250,000 — — 250,000 2024 — — — — — — 2025 — — — — — — 2026 — — — — 600,000 600,000 Thereafter 250,000 300,000 — 600,000 600,000 1,750,000 $ 250,000 $ 300,000 $ 250,000 $ 600,000 $ 1,200,000 $ 2,600,000 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Schedule of Changes in Accumulated Other Comprehensive Income (Loss) | The following tables present changes in the accumulated balances for each component of other comprehensive income (loss), including current period other comprehensive income (loss) and reclassifications out of accumulated other comprehensive income (loss): For the Year Ended December 31, 2021 Derivative Available-for-Sale Security Employee Benefit Plans Currency Total (In thousands) Accumulated Other Comprehensive Loss, Net of Tax, as of December 31, 2020 $ (15,369) $ (7,522) $ (186,854) $ (734,831) $ (944,576) Other comprehensive income (loss) before reclassifications 23,253 1,075 19,961 (54,690) (10,401) Amounts reclassified from accumulated other comprehensive income (loss) 912 — 12,794 — 13,706 Net increase (decrease) in other comprehensive loss 24,165 1,075 32,755 (54,690) 3,305 Accumulated Other Comprehensive Income (Loss), Net of Tax, as of December 31, 2021 $ 8,796 $ (6,447) $ (154,099) $ (789,521) $ (941,271) For the Year Ended December 31, 2020 Derivative Available-for-Sale Security Employee Benefit Plans 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 (18,289) 738 (22,941) (32,423) (72,915) Amounts reclassified from accumulated other comprehensive income (loss) (8,121) — 5,944 — (2,177) Net (decrease) increase in other comprehensive income (loss) (26,410) 738 (16,997) (32,423) (75,092) Accumulated Other Comprehensive Loss, Net of Tax, as of December 31, 2020 $ (15,369) $ (7,522) $ (186,854) $ (734,831) $ (944,576) For the Year Ended December 31, 2019 Derivative Available-for-Sale Security Employee Benefit Plans 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 14,495 (1,713) (31,158) 18,919 543 Amounts reclassified from accumulated other comprehensive income (loss) (14,865) — 4,064 — (10,801) Net (decrease) increase in other comprehensive income (loss) (370) (1,713) (27,094) 18,919 (10,258) Accumulated Other Comprehensive Income (Loss), Net of Tax, as of December 31, 2019 $ 11,041 $ (8,260) $ (169,857) $ (702,408) $ (869,484) |
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 Year Ended Consolidated Statements of Operations December 31, December 31, December 31, (In thousands) Derivative Instruments (Loss) gain on foreign currency forward exchange contracts and other contracts $ (512) $ 8,040 $ 15,517 Cost of sales Tax effect (400) 81 (652) (Benefit) provision for income taxes $ (912) $ 8,121 $ 14,865 Net Income (Loss) Employee Benefit Plans Amortization of prior service credit (a) $ 1,875 $ 1,735 $ 1,974 Other non-operating expense, net Recognized actuarial loss (a) (11,167) (9,510) (7,201) Other non-operating expense, net Curtailment loss (a) (48) (50) (92) Other non-operating expense, net Settlement loss (a) (6,982) — — Other non-operating expense, net (16,322) (7,825) (5,319) Tax effect 3,528 1,881 1,255 (Benefit) provision for income taxes $ (12,794) $ (5,944) $ (4,064) Net Income (Loss) (a) The amortization of prior service credit, recognized actuarial loss, curtailment loss and settlement loss are included in the computation of net periodic benefit cost. Refer to "Note 4 to the Consolidated Financial Statements—Employee Benefit Plans" for additional information regarding Mattel’s net periodic benefit cost. |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Assets and Liabilities, Lessee | The following table summarize Mattel's right-of-use assets and liabilities and other information about its leases: December 31, December 31, (In thousands, except years and percentage information) Right-of-use assets, net $ 325,484 $ 291,601 Accrued liabilities $ 73,752 $ 79,540 Noncurrent lease liabilities 283,626 249,353 Total lease liabilities $ 357,378 $ 328,893 Weighted-average remaining lease term 6.1 years 6.6 years Weighted-average discount rate 6.5 % 7.6 % |
Lease Components and Supplemental Information | The components of lease costs for the years ended December 31, 2021, 2020, and 2019 are as follows: For the Year Ended December 31, December 31, December 31, (In thousands) Lease costs (a) $ 134,272 $ 136,842 $ 142,100 Sublease rental income $ 2,077 $ 2,697 $ 5,690 (a) Includes short-term and variable lease costs of approximately $39 million, $42 million, and $44 million for 2021, 2020, and 2019 respectively. Variable lease costs primarily relate to common area maintenance charges, management fees, taxes and storage fees. Supplemental information related to leases are as follows: For the Year Ended December 31, December 31, December 31, (In thousands) Cash payments for leases $ 100,286 $ 96,953 $ 105,015 Right-of-use assets obtained in exchange for new and modified lease liabilities $ 105,898 $ 53,753 $ 29,389 |
Future Maturities of Lease Liabilities | The following table shows the future maturities of lease liabilities for leases in effect as of December 31, 2021: Years Ending December 31, Lease Liabilities (In thousands) 2022 $ 92,254 2023 79,785 2024 67,293 2025 57,103 2026 45,331 Thereafter 96,167 437,933 Less: imputed interest (80,555) $ 357,378 |
Share-Based Payments (Tables)
Share-Based Payments (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Weighted Average Assumptions Used to Determine Fair Value of Awards Granted | The following weighted-average assumptions were used in determining the fair value of options granted: 2021 2020 2019 Expected life (in years) 6.2 5.9 5.5 Risk-free interest rate 0.8 % 0.3 % 1.7 % Volatility factor 43.6 % 43.7 % 38.1 % Dividend yield — % — % — % The following weighted-average assumptions were used in determining the fair value of performance awards granted: 2021 2020 2019 Risk-free interest rate 0.3 % 0.1 % 1.7 % Volatility factor 50.1 % 52.7 % 47.0 % Dividend yield — % — % — % |
Schedule of Stock Option Information and Weighted Average Exercise Prices | The following is a summary of stock option information and weighted-average exercise prices for Mattel’s stock options: 2021 2020 2019 Shares Weighted Shares Weighted Shares Weighted (In thousands, except weighted-average exercise prices) Outstanding at January 1 21,635 $ 22.10 22,510 $ 24.22 22,020 $ 25.47 Granted 1,054 21.71 2,241 11.23 2,342 13.54 Exercised (687) 17.65 (4) 15.02 — — Forfeited (72) 14.00 (294) 14.38 (266) 17.64 Canceled (2,252) 21.10 (2,818) 31.22 (1,586) 26.79 Outstanding at December 31 19,678 $ 22.38 21,635 $ 22.10 22,510 $ 24.22 Exercisable at December 31 16,634 $ 23.68 16,356 $ 25.01 16,576 $ 27.32 |
Schedule of RSU Information and Weighted Average Grant Date Fair Values | The following is a summary of RSU information and weighted-average grant-date fair values for Mattel’s RSUs: 2021 2020 2019 Shares Weighted Shares Weighted Shares Weighted (In thousands, except weighted-average grant-date fair values) Unvested at January 1 3,986 $ 12.52 3,864 $ 15.19 4,721 $ 17.22 Granted 2,167 21.77 2,548 11.18 1,687 13.28 Vested (1,954) 13.66 (1,970) 15.58 (1,997) 18.02 Forfeited (344) 13.72 (456) 14.45 (547) 16.48 Unvested at December 31 3,855 $ 17.03 3,986 $ 12.52 3,864 $ 15.19 |
Schedule of Performance Award Information and Weighted Average Grant Date Fair Values | The following is a summary of performance award information and weighted-average grant-date fair values for Mattel’s performance awards: 2021 2020 2019 Shares Weighted Shares Weighted Shares Weighted (In thousands, except weighted-average grant-date fair values) Unvested at January 1 3,405 $ 13.79 2,217 $ 15.45 1,283 $ 19.48 Granted (a) 906 22.04 1,461 11.93 1,206 14.89 Vested (884) 15.63 (95) 17.97 — — Forfeited (80) 14.70 (74) 15.65 (71) 15.74 Canceled — — (104) 17.97 (201) 37.70 Unvested at December 31 3,347 $ 15.52 3,405 $ 13.79 2,217 $ 15.45 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share | The following table reconciles basic and diluted earnings per common share for the years ended December 31, 2021, 2020, and 2019. For the Year Ended December 31, December 31, December 31, (In thousands, except per share amounts) Basic: Net income (loss) $ 902,987 $ 123,579 $ (218,750) Weighted-average number of common shares 350,007 347,463 346,127 Basic net income per common share $ 2.58 $ 0.36 $ (0.63) Diluted: Net income (loss) $ 902,987 $ 123,579 $ (218,750) Weighted-average number of common shares 350,007 347,463 346,127 Dilutive share-based awards (a) 7,246 1,653 — Weighted-average number of common and potential common shares 357,253 349,116 346,127 Diluted net income per common share $ 2.53 $ 0.35 $ (0.63) (a) Nonqualified stock options and RSUs totaling 12.1 million and 21.7 million were excluded from the calculation of diluted net income per common share for the years ended December 31, 2021 and December 31, 2020, respectively, because their effect would be antidilutive. Mattel was in a net loss position for the year ended December 31, 2019 and, accordingly, all outstanding nonqualified stock options and non-participating RSUs were excluded from the calculation of diluted earnings per common share because their effect would be antidilutive. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Schedule of Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis | Mattel’s financial assets and liabilities include the following: December 31, 2021 Level 1 Level 2 Level 3 Total (In thousands) Assets: Foreign currency forward exchange contracts and other (a) $ — $ 18,075 $ — $ 18,075 Available-for-sale (b) 5,343 — — 5,343 Total assets $ 5,343 $ 18,075 $ — $ 23,418 Liabilities: Foreign currency forward exchange contracts and other (a) $ — $ 3,810 $ — $ 3,810 December 31, 2020 Level 1 Level 2 Level 3 Total (In thousands) Assets: Foreign currency forward exchange contracts and other (a) $ — $ 5,711 $ — $ 5,711 Available-for-sale (b) 4,268 — — 4,268 Total assets $ 4,268 $ 5,711 $ — $ 9,979 Liabilities: Foreign currency forward exchange contracts and other (a) $ — $ 25,494 $ — $ 25,494 (a) The fair value of the foreign currency forward exchange contracts and other 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. |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Assets and Liabilities | The following tables present Mattel’s derivative assets and liabilities: Derivative Assets Balance Sheet Classification Fair Value December 31, 2021 December 31, 2020 (In thousands) Derivatives designated as hedging instruments: Foreign currency forward exchange contracts and other Prepaid expenses and other $ 13,361 $ 3,641 Foreign currency forward exchange contracts and other Other noncurrent assets 1,000 50 Total derivatives designated as hedging instruments $ 14,361 $ 3,691 Derivatives not designated as hedging instruments: Foreign currency forward exchange contracts and other Prepaid expenses and other $ 3,714 $ 1,982 Foreign currency forward exchange contracts and other Other noncurrent assets — 38 Total derivatives not designated as hedging instruments $ 3,714 $ 2,020 $ 18,075 $ 5,711 Derivative Liabilities Balance Sheet Classification Fair Value December 31, 2021 December 31, 2020 (In thousands) Derivatives designated as hedging instruments: Foreign currency forward exchange contracts and other Accrued liabilities $ 2,301 $ 20,330 Foreign currency forward exchange contracts and other Other noncurrent liabilities 280 4,361 Total derivatives designated as hedging instruments $ 2,581 $ 24,691 Derivatives not designated as hedging instruments: Foreign currency forward exchange contracts and other Accrued liabilities $ 1,229 $ 803 $ 3,810 $ 25,494 |
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: Derivatives Designated As Hedging Instruments Consolidated Statements of For the Year Ended December 31, December 31, December 31, (In thousands) Foreign currency forward exchange contracts: Amount of gains (losses) recognized in OCI $ 23,253 $ (18,289) $ 14,495 Amount of (losses) gains reclassified from accumulated OCI to the consolidated statements of operations (912) 8,121 14,865 Cost of sales |
Schedule of Derivatives Not Designated as Hedging Instruments by Classification and Amount of Gains and Losses | Derivatives Not Designated As Hedging Instruments Consolidated Statements of For the Year Ended December 31, December 31, December 31, (In thousands) Amount of net gains (losses) recognized in the Statements of Operations: Foreign currency forward exchange contracts and other $ 2,872 $ (26,553) $ 2,530 Other non-operating expense, net Foreign currency forward exchange contracts and other 639 495 — Cost of sales $ 3,511 $ (26,058) $ 2,530 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Payments for Licensing and Similar Agreements | Licensing and similar agreements in effect at December 31, 2021 contain provisions for future minimum payments as shown in the following table: Licensing and (In thousands) 2022 $ 43,650 2023 117,672 2024 73,650 2025 49,440 2026 — Thereafter — $ 284,412 |
Schedule of Future Minimum Obligations for Purchases of Inventory, Services, and Other | The following table shows the future minimum obligations for purchases of inventory, services, and other items as of December 31, 2021: Other (In thousands) 2022 $ 370,014 2023 49,349 2024 22,194 2025 5,272 2026 2,800 Thereafter — $ 449,629 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Schedule of Segment Income (Loss) | For the Year Ended December 31, December 31, December 31, (In thousands) Net Sales by Segment North America $ 2,968,278 $ 2,426,480 $ 2,275,783 International 2,219,189 1,903,550 1,972,196 American Girl 270,274 258,403 256,592 Net sales $ 5,457,741 $ 4,588,433 $ 4,504,571 Operating Income (Loss) by Segment (a) North America $ 872,536 $ 621,859 $ 381,112 International 349,952 272,395 185,803 American Girl 5,409 (14,090) (59,254) 1,227,897 880,164 507,661 Corporate and other expense (b) (498,335) (505,428) (470,559) Operating Income 729,562 374,736 37,102 Interest expense 253,937 198,332 201,044 Interest (income) (3,503) (3,945) (6,166) Other non-operating expense, net 8,364 2,692 1,879 Income (Loss) Before Income Taxes $ 470,764 $ 177,657 $ (159,655) (a) Segment operating income (loss) included severance and restructuring expenses of $2.9 million, $5.7 million, and $18.6 million for 2021, 2020, and 2019, respectively, which were allocated to the North America, International, and American Girl segments. (b) Corporate and other expense included severance and restructuring charges of $31.5 million, $34.9 million, and $40.5 million for 2021, 2020, and 2019, respectively. Corporate and other expense also included expenses related to inclined sleeper recall litigation of $15.1 million, $26.2 million, and $10.3 million for 2021, 2020, and 2019, respectively, and incentive and share-based compensation for all periods presented. |
Schedule of Segment Depreciation/Amortization | For the Year Ended December 31, December 31, December 31, (In thousands) Depreciation/Amortization by Segment North America $ 86,308 $ 88,128 $ 110,299 International 59,610 67,218 85,496 American Girl 12,508 13,438 17,246 158,426 168,784 213,041 Corporate and other 25,887 24,667 31,477 Depreciation and amortization $ 184,313 $ 193,451 $ 244,518 |
Schedule of Segment Assets | Segment assets are comprised of accounts receivable and inventories, net of applicable reserves and allowances. December 31, December 31, December 31, (In thousands) Assets by Segment North America $ 784,836 $ 658,404 $ 569,352 International 798,833 715,043 727,781 American Girl 52,168 40,414 34,125 1,635,837 1,413,861 1,331,258 Corporate and other 214,031 148,579 122,775 Accounts receivable and inventories, net $ 1,849,868 $ 1,562,440 $ 1,454,033 |
Schedule of Revenues by Geographic Area | The tables below present information by geographic area. Net sales are attributed to countries based on location of customer. Long-lived assets include property, plant, and equipment, net, and right-of-use assets, net. For the Year Ended December 31, December 31, December 31, (In thousands) Net Sales by Geographic Area North America Region (a) $ 3,238,552 $ 2,684,883 $ 2,532,375 International Region EMEA 1,375,463 1,132,531 1,056,392 Latin America 519,610 455,184 565,416 Asia Pacific 324,116 315,835 350,388 Total International Region 2,219,189 1,903,550 1,972,196 Net sales $ 5,457,741 $ 4,588,433 $ 4,504,571 December 31, December 31, December 31, (In thousands) Long-Lived Assets North America Region (b) $ 366,519 $ 368,985 $ 413,075 International Region 414,931 396,410 410,167 Consolidated total $ 781,450 $ 765,395 $ 823,242 (a) Net sales for the North America Region include net sales attributable to the United States of $3.07 billion, $2.53 billion, and $2.39 billion for 2021, 2020, and 2019, respectively. (b) Long-lived assets for the North America Region include long-lived assets attributable to the United States of $343.7 million, $329.3 million, and $383.3 million for 2021, 2020, and 2019, respectively. |
Schedule of Long-lived Assets by Geographic Areas | The tables below present information by geographic area. Net sales are attributed to countries based on location of customer. Long-lived assets include property, plant, and equipment, net, and right-of-use assets, net. For the Year Ended December 31, December 31, December 31, (In thousands) Net Sales by Geographic Area North America Region (a) $ 3,238,552 $ 2,684,883 $ 2,532,375 International Region EMEA 1,375,463 1,132,531 1,056,392 Latin America 519,610 455,184 565,416 Asia Pacific 324,116 315,835 350,388 Total International Region 2,219,189 1,903,550 1,972,196 Net sales $ 5,457,741 $ 4,588,433 $ 4,504,571 December 31, December 31, December 31, (In thousands) Long-Lived Assets North America Region (b) $ 366,519 $ 368,985 $ 413,075 International Region 414,931 396,410 410,167 Consolidated total $ 781,450 $ 765,395 $ 823,242 (a) Net sales for the North America Region include net sales attributable to the United States of $3.07 billion, $2.53 billion, and $2.39 billion for 2021, 2020, and 2019, respectively. (b) Long-lived assets for the North America Region include long-lived assets attributable to the United States of $343.7 million, $329.3 million, and $383.3 million for 2021, 2020, and 2019, respectively. |
Restructuring Charges (Tables)
Restructuring Charges (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Charges | In connection with the Program, Mattel recorded severance and other restructuring costs in the following cost and expense categories within the consolidated statements of operations: For the Year Ended December 31, 2021 December 31, 2020 December 31, 2019 (In thousands) Cost of sales (a) $ 2,885 $ 5,656 $ 18,579 Other selling and administrative expenses (b) 32,266 7,245 18,992 $ 35,151 $ 12,901 $ 37,571 (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 13 to the Consolidated Financial Statements—Segment Information." The following tables summarize Mattel's severance and other restructuring charges activity related to the Program: Liability at December 31, 2020 Charges (a) Payments/Utilization Liability at December 31, 2021 (In thousands) Severance $ 5,294 $ 17,979 $ (10,862) $ 12,411 Other restructuring charges 30 17,172 (14,368) 2,834 $ 5,324 $ 35,151 $ (25,230) $ 15,245 (a) Other restructuring charges consist primarily of expenses associated with the consolidation of manufacturing facilities and restructuring of commercial and corporate functions. Liability at December 31, 2019 Charges (b) Payments/Utilization Liability at December 31, 2020 (In thousands) Severance $ 6,151 $ 6,874 $ (7,731) $ 5,294 Other restructuring charges 11,484 6,027 (17,481) 30 $ 17,635 $ 12,901 $ (25,212) $ 5,324 (b) Other restructuring charges consist primarily of expenses associated with the consolidation of manufacturing facilities. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Pre-Tax (Loss) Income | Consolidated pre-tax income (loss) consists of the following: For the Year Ended December 31, December 31, December 31, (In thousands) U.S. operations $ 9,612 $ (172,478) $ (329,112) Foreign operations 461,152 350,135 169,457 Consolidated pre-tax income (loss) excluding equity method $ 470,764 $ 177,657 $ (159,655) |
Schedule of Provision (Benefit) for Current and Deferred Income Taxes | The (benefit) provision for current and deferred income taxes consists of the following: For the Year Ended December 31, December 31, December 31, (In thousands) Current Federal $ (9,819) $ — $ 5,520 State (4,060) (575) 2,170 Foreign 81,899 78,870 68,837 68,020 78,295 76,527 Deferred Federal (229,217) 1,164 (2,510) State (27,970) (481) 68 Foreign (231,214) (13,429) (15,761) (488,401) (12,746) (18,203) (Benefit) provision for income taxes $ (420,381) $ 65,549 $ 58,324 |
Schedule of Deferred Income Tax Assets (Liabilities) | Mattel’s deferred income tax assets (liabilities) are composed of the following: December 31, December 31, (In thousands) Tax credit carryforwards $ 100,575 $ 71,428 Research and development expenses 27,996 41,862 Net operating loss carryforwards 124,792 161,846 Interest expense 90,671 108,069 Allowances and reserves 102,634 92,372 Deferred compensation 66,183 60,665 Postretirement benefits 31,841 38,182 Intangible assets 219,629 231,527 Lease liabilities 70,712 74,600 Other 46,382 42,058 Gross deferred income tax assets 881,415 922,609 Intangible assets (189,021) (187,001) Right-of-use assets (63,206) (66,404) Other (40,781) (25,500) Gross deferred income tax liabilities (293,008) (278,905) Deferred income tax asset valuation allowances (101,489) (631,914) Net deferred income tax assets $ 486,918 $ 11,790 Net deferred income tax assets are reported in the consolidated balance sheets as follows: December 31, December 31, (In thousands) Other noncurrent assets $ 526,906 $ 72,682 Other noncurrent liabilities (39,988) (60,892) $ 486,918 $ 11,790 |
Schedule of Expiration of Loss and Tax Credit Carryforwards | Mattel’s loss and tax credit carryforwards expire in the following periods: Loss Tax Credit (In thousands) 2022–2026 $ 39,420 $ 870 Thereafter 154,475 75,802 No expiration date 252,320 23,902 Total $ 446,215 $ 100,574 |
Schedule of Reconciliation of Provision for Income Taxes at US Federal Statutory Rate to Provision in Statements of Operations | Differences between the provision for income taxes at the U.S. federal statutory income tax rate and the provision in the consolidated statements of operations are as follows: For the Year Ended December 31, December 31, December 31, (In thousands) Provision (benefit) at U.S. federal statutory rate $ 101,347 $ 41,008 $ (33,240) Differences resulting from: Changes in valuation allowances (540,803) 14,576 8,752 Foreign earnings taxed at different rates, including foreign losses without benefit 35,468 6,203 65,101 State and local taxes, net of U.S. federal (expense) benefit (983) (1,056) 2,438 Adjustments to previously accrued taxes (19,101) 5,354 14,160 Change in indefinite reinvestment assertion 7,000 — (2,700) Other (3,309) (536) 3,813 (Benefit) provision for income taxes $ (420,381) $ 65,549 $ 58,324 |
Schedule of Reconciliation of Unrecognized Tax Benefits | A reconciliation of the reserve for unrecognized tax benefits is as follows: For the Year Ended December 31, December 31, December 31, (In thousands) Unrecognized tax benefits at January 1 $ 140,309 $ 137,929 $ 119,818 Increases for positions taken in current year 5,113 5,969 3,836 Increases for positions taken in a prior year 3,658 5,811 29,487 Decreases for positions taken in a prior year (1,324) (3,127) (10,150) Decreases for settlements with taxing authorities (2,852) (3,410) (1,982) Decreases for lapses in the applicable statute of limitations (26,123) (2,863) (3,080) Unrecognized tax benefits at December 31 $ 118,781 $ 140,309 $ 137,929 |
Supplemental Financial Inform_2
Supplemental Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Supplemental Financial Information - Balance Sheet Accounts | December 31, December 31, (In thousands) Inventories include the following: Finished goods $ 600,784 $ 418,464 Raw materials and work in process 176,400 110,010 $ 777,184 $ 528,474 Accrued liabilities include the following: Advertising and promotion $ 179,687 $ 163,181 Incentive compensation 140,769 126,601 Lease liability 73,752 79,540 |
Schedule of Supplemental Financial Information - Income Statement Accounts | For the Year Ended December 31, December 31, December 31, (In thousands) Currency transaction losses included in: Operating income $ (10,212) $ (8,780) $ (4,463) Other non-operating expense, net (8,224) (696) (527) Currency transaction losses, net $ (18,436) $ (9,476) $ (4,990) Other selling and administrative expenses include the following: Design and development $ 189,372 $ 189,494 $ 197,226 Identifiable intangible asset amortization 38,039 38,925 40,112 Bad debt expense, net 1,202 9,149 967 |
Revision for Immaterial Misst_2
Revision for Immaterial Misstatements (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Changes and Error Corrections [Abstract] | |
Schedule of Error Corrections and Prior Period Adjustments | The revision to the accompanying consolidated balance sheets, consolidated statement of operations and comprehensive loss, and consolidated statement of cash flows are as follows. There were no changes to the consolidated statements of stockholders’ equity that have not otherwise been reflected in the consolidated balance sheet and consolidated statement of operations and comprehensive income or loss as detailed in the tables below: As of December 31, 2020 As Previously Reported Adjustments As Revised (In thousands) Consolidated Balance Sheet Inventories $ 514,673 $ 13,801 $ 528,474 Total current assets 2,482,890 13,801 2,496,691 Total assets 5,521,089 13,801 5,534,890 Retained earnings 1,539,809 13,801 1,553,610 Total stockholders' equity 596,343 13,801 610,144 Total liabilities and stockholders' equity 5,521,089 13,801 5,534,890 Year Ended December 31, 2020 As Previously Reported Adjustments As Revised (In thousands, except per share amounts) Consolidated Statement of Operations and Comprehensive Income Net sales $ 4,583,660 $ 4,773 $ 4,588,433 Cost of sales 2,340,066 5,264 2,345,330 Gross profit 2,243,594 (491) 2,243,103 Advertising and promotion expenses 516,803 9,000 525,803 Other selling and administrative expenses 1,345,906 (3,342) 1,342,564 Operating income 380,885 (6,149) 374,736 Income before income taxes 183,806 (6,149) 177,657 Provision for income taxes 68,649 (3,100) 65,549 Net income 126,628 (3,049) 123,579 Comprehensive income 51,536 (3,049) 48,487 Net loss per common share - basic $ 0.36 $ (0.01) $ 0.36 Net income per common share - diluted $ 0.36 $ (0.01) $ 0.35 Year Ended December 31, 2019 As Previously Reported Adjustments As Revised (In thousands, except per share amounts) Consolidated Statement of Operations and Comprehensive Loss Cost of sales $ 2,523,792 $ 3,438 $ 2,527,230 Gross profit 1,980,779 (3,438) 1,977,341 Advertising and promotion expenses 551,517 (1,300) 550,217 Operating income 39,240 (2,138) 37,102 Loss before income taxes (157,517) (2,138) (159,655) Provision for income taxes 55,224 3,100 58,324 Net loss (213,512) (5,238) (218,750) Comprehensive loss (223,770) (5,238) (229,008) Net loss per common share - basic $ (0.62) $ (0.01) $ (0.63) Net income per common share - diluted $ (0.62) $ (0.01) $ (0.63) Year Ended December 31, 2020 As Previously Reported Adjustments As Revised (In thousands) Consolidated Statement of Cash Flows Net income $ 126,628 $ (3,049) $ 123,579 Depreciation 160,973 (6,447) 154,526 Deferred income taxes (2,200) (3,100) (5,300) Changes in assets and liabilities: Inventories (50,562) 8,369 (42,193) Prepaid expenses and other current assets 5,661 (25,700) (20,039) Accounts payable, accrued liabilities, and income taxes payable 11,209 6,194 17,403 Other, net (26,457) 20,927 (5,530) Net cash flows provided by operating activities 288,502 (2,806) 285,696 Purchases of other property, plant, and equipment (62,195) 2,806 (59,389) Net cash flows used for investing activities (134,910) 2,806 (132,104) Year Ended December 31, 2019 As Previously Reported Adjustments As Revised (In thousands) Consolidated Statement of Cash Flows Net loss $ (213,512) $ (5,238) $ (218,750) Asset impairments 38,729 2,485 41,214 Deferred income taxes (9,136) 3,100 (6,036) Changes in assets and liabilities: Inventories (26,920) 4,234 (22,686) Prepaid expenses and other current assets 47,971 1,100 49,071 Accounts payable, accrued liabilities, and income taxes payable (58,679) 4,027 (54,652) Other, net (10,094) (22,249) (32,343) Net cash flows provided by operating activities 180,977 (12,541) 168,436 Purchases of tools, dies, and molds (50,509) (2,485) (52,994) Purchases of other property, plant, and equipment (65,843) 15,026 (50,817) Net cash flows used for investing activities (114,176) 12,541 (101,635) |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Property, Plant, and Equipment (Detail) | 12 Months Ended |
Dec. 31, 2021 | |
Buildings | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives, years | 10 years |
Buildings | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives, years | 30 years |
Machinery and equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives, years | 3 years |
Machinery and equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives, years | 15 years |
Software | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives, years | 3 years |
Software | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives, years | 10 years |
Leasehold improvements | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives, years | 10 years |
Leasehold improvements | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives, years | 20 years |
Tools, dies, and molds | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives, years | 3 years |
Property, Plant, and Equipmen_2
Property, Plant, and Equipment (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | |
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | $ 2,158,351 | $ 2,216,430 | |
Less: accumulated depreciation | (1,702,385) | (1,742,636) | |
Property, plant and equipment, net | 455,966 | 473,794 | |
Land | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 21,811 | 24,913 | |
Buildings | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 317,114 | 331,898 | |
Machinery and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 762,462 | 753,338 | |
Software | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 348,062 | 342,364 | |
Tools, dies, and molds | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 537,499 | 585,170 | |
Leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 115,844 | 130,789 | |
Construction in progress | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 55,559 | $ 47,958 | |
Land and buildings | Mexico | |||
Property, Plant and Equipment [Line Items] | |||
Gain on disposal of property, plant, and equipment | $ 15,800 | $ 15,800 |
Goodwill and Other Intangible_2
Goodwill and Other Intangibles - Goodwill (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | |
Goodwill [Roll Forward] | |||
Goodwill, beginning balance | $ 1,393,834 | $ 1,393,834 | $ 1,390,714 |
Currency exchange rate impact | (1,281) | 3,120 | |
Dispositions | (2,000) | (2,346) | |
Goodwill, ending balance | 1,390,207 | 1,393,834 | |
North America | |||
Goodwill [Roll Forward] | |||
Goodwill, beginning balance | 733,401 | 733,401 | 732,430 |
Currency exchange rate impact | (322) | 971 | |
Dispositions | (1,290) | ||
Goodwill, ending balance | 731,789 | 733,401 | |
International | |||
Goodwill [Roll Forward] | |||
Goodwill, beginning balance | 452,862 | 452,862 | 450,713 |
Currency exchange rate impact | (959) | 2,149 | |
Dispositions | (1,056) | ||
Goodwill, ending balance | 450,847 | 452,862 | |
American Girl | |||
Goodwill [Roll Forward] | |||
Goodwill, beginning balance | $ 207,571 | 207,571 | 207,571 |
Currency exchange rate impact | 0 | 0 | |
Dispositions | 0 | ||
Goodwill, ending balance | $ 207,571 | $ 207,571 |
Goodwill and Other Intangible_3
Goodwill and Other Intangibles - Narrative (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | |||
Sep. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||||
Dispositions | $ 2,000,000 | $ 2,346,000 | |||
Goodwill, impairment loss | $ 0 | ||||
Finite-lived intangible assets | 476,858,000 | $ 518,190,000 | |||
Intangible assets, accumulated amortization | 327,000,000 | 286,900,000 | |||
Impairment of amortizable intangible assets | $ 2,000,000 | $ 0 | $ 0 |
Goodwill and Other Intangible_4
Goodwill and Other Intangibles - Estimated Future Amortization (Details) $ in Thousands | Dec. 31, 2021USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2022 | $ 38,503 |
2023 | 39,250 |
2024 | 33,074 |
2025 | 33,012 |
2026 | $ 29,612 |
Employee Benefit Plans - Summar
Employee Benefit Plans - Summary of Retirement Plan Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Schedule of Employee Benefit Plans [Line Items] | |||
Retirement plan expense | $ 54,568 | $ 40,786 | $ 51,332 |
Defined benefit pension plans | |||
Schedule of Employee Benefit Plans [Line Items] | |||
Retirement plan expense | 14,858 | 9,670 | 9,815 |
Defined contribution retirement plans | |||
Schedule of Employee Benefit Plans [Line Items] | |||
Retirement plan expense | 34,821 | 26,697 | 32,743 |
Postretirement benefit plans | |||
Schedule of Employee Benefit Plans [Line Items] | |||
Retirement plan expense | (1,968) | (1,972) | (2,220) |
Deferred compensation and excess benefit plans | |||
Schedule of Employee Benefit Plans [Line Items] | |||
Retirement plan expense | $ 6,857 | $ 6,391 | $ 10,994 |
Employee Benefit Plans - Summ_2
Employee Benefit Plans - Summary of Components of Net Periodic Benefit Cost and Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Other changes in plan assets and benefit obligations recognized in other comprehensive income (loss): | |||
Tax expense related to benefit plans included in other comprehensive income | $ 9,000 | $ 2,000 | $ (6,000) |
Defined benefit pension plans | |||
Net periodic benefit cost (credit): | |||
Service cost | 4,925 | 4,348 | 4,479 |
Interest cost | 10,094 | 15,079 | 19,309 |
Expected return on plan assets | (18,531) | (19,694) | (21,714) |
Amortization of prior service cost (credit) | 163 | 303 | 64 |
Recognized actuarial loss (gain) | 11,177 | 9,584 | 7,585 |
Settlement loss | 6,982 | 0 | 0 |
Curtailment loss | 48 | 50 | 92 |
Net periodic benefit cost | 14,858 | 9,670 | 9,815 |
Other changes in plan assets and benefit obligations recognized in other comprehensive income (loss): | |||
Net actuarial (gain) loss | (42,671) | 12,624 | 28,740 |
Prior service (credit) cost | 204 | 269 | 26 |
Amortization of prior service (cost) credit | (163) | (303) | (64) |
Total recognized in other comprehensive loss | (42,630) | 12,590 | 28,702 |
Total recognized in net periodic benefit (credit) cost and other comprehensive income (loss) | (27,772) | 22,260 | 38,517 |
Postretirement benefit plans | |||
Net periodic benefit cost (credit): | |||
Service cost | 2 | 1 | 1 |
Interest cost | 78 | 139 | 201 |
Expected return on plan assets | 0 | 0 | 0 |
Amortization of prior service cost (credit) | (2,038) | (2,038) | (2,038) |
Recognized actuarial loss (gain) | (10) | (74) | (384) |
Settlement loss | 0 | 0 | 0 |
Curtailment loss | 0 | 0 | 0 |
Net periodic benefit cost | (1,968) | (1,972) | (2,220) |
Other changes in plan assets and benefit obligations recognized in other comprehensive income (loss): | |||
Net actuarial (gain) loss | (605) | 850 | 1,870 |
Prior service (credit) cost | 0 | 0 | 0 |
Amortization of prior service (cost) credit | 2,038 | 2,038 | 2,038 |
Total recognized in other comprehensive loss | 1,433 | 2,888 | 3,908 |
Total recognized in net periodic benefit (credit) cost and other comprehensive income (loss) | $ (535) | $ 916 | $ 1,688 |
Employee Benefit Plans - Assump
Employee Benefit Plans - Assumptions Used to Calculate Net Periodic Benefit Cost for Domestic Defined Benefit Pension and Postretirement Benefit Plans (Detail) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Pre-65 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Health care cost trend rate | 7.00% | 7.00% | 7.00% |
Ultimate cost trend rate | 4.50% | 4.50% | 4.50% |
Post-65 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Health care cost trend rate | 6.80% | 6.80% | 6.80% |
Ultimate cost trend rate | 4.50% | 4.50% | 4.50% |
Defined benefit pension plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 2.20% | 3.00% | 4.10% |
Long-term rate of return on plan assets | 5.00% | 5.50% | 6.00% |
Postretirement benefit plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 2.20% | 3.00% | 4.10% |
Annual increase in Medicare Part B premium | 6.00% | 6.00% | 6.00% |
Employee Benefit Plans - Summ_3
Employee Benefit Plans - Summary of Changes in Benefit Obligation and Plan Assets for Defined Benefit Pension and Postretirement Benefit Plans (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Amounts Recognized in Accumulated Other Comprehensive Loss: | |||
Tax benefits related to changes in benefit obligation and plan assets which are also included in accumulated other comprehensive loss | $ 74,000 | $ 83,000 | |
Defined benefit pension plans | |||
Change in Benefit Obligation: | |||
Benefit obligation, beginning of year | 671,181 | 628,152 | |
Service cost | 4,925 | 4,348 | $ 4,479 |
Interest cost | 10,094 | 15,079 | 19,309 |
Impact of currency exchange rate changes | (5,762) | 9,076 | |
Actuarial (gain) loss | (16,597) | 45,907 | |
Benefits paid | (49,895) | (33,447) | |
Plan amendments | (656) | 2,066 | |
Settlements | 1,612 | 0 | |
Other | (1,636) | 0 | |
Benefit obligation, end of year | 613,266 | 671,181 | 628,152 |
Change in Plan Assets: | |||
Plan assets at fair value, beginning of year | 457,880 | 431,747 | |
Actual return on plan assets | 28,622 | 44,104 | |
Employer contributions | 21,841 | 10,937 | |
Impact of currency exchange rate changes | (1,244) | 4,769 | |
Benefits paid | (49,895) | (33,447) | |
Settlements | 0 | (230) | |
Other | (72) | 0 | |
Plan assets at fair value, end of year | 457,132 | 457,880 | 431,747 |
Net Amount Recognized in Consolidated Balance Sheets: | |||
Funded status, end of year | (156,134) | (213,301) | |
Current accrued benefit liability | (5,119) | (5,687) | |
Noncurrent accrued benefit liability, net | (151,015) | (207,614) | |
Net amount recognized | (156,134) | (213,301) | |
Amounts Recognized in Accumulated Other Comprehensive Loss: | |||
Net actuarial loss (gain) | 236,667 | 279,338 | |
Prior service cost (credit) | 189 | 148 | |
Total amount recognized in accumulated other comprehensive loss, before tax | 236,856 | 279,486 | |
Postretirement benefit plans | |||
Change in Benefit Obligation: | |||
Benefit obligation, beginning of year | 6,246 | 5,781 | |
Service cost | 2 | 1 | 1 |
Interest cost | 78 | 139 | 201 |
Impact of currency exchange rate changes | 0 | 0 | |
Actuarial (gain) loss | (614) | 773 | |
Benefits paid | (536) | (448) | |
Plan amendments | 0 | 0 | |
Settlements | 0 | 0 | |
Other | 0 | 0 | |
Benefit obligation, end of year | 5,176 | 6,246 | 5,781 |
Change in Plan Assets: | |||
Plan assets at fair value, beginning of year | 0 | 0 | |
Actual return on plan assets | 0 | 0 | |
Employer contributions | 536 | 448 | |
Impact of currency exchange rate changes | 0 | 0 | |
Benefits paid | (536) | (448) | |
Settlements | 0 | 0 | |
Other | 0 | 0 | |
Plan assets at fair value, end of year | 0 | 0 | $ 0 |
Net Amount Recognized in Consolidated Balance Sheets: | |||
Funded status, end of year | (5,176) | (6,246) | |
Current accrued benefit liability | (730) | (840) | |
Noncurrent accrued benefit liability, net | (4,446) | (5,406) | |
Net amount recognized | (5,176) | (6,246) | |
Amounts Recognized in Accumulated Other Comprehensive Loss: | |||
Net actuarial loss (gain) | (956) | (351) | |
Prior service cost (credit) | (8,110) | (10,148) | |
Total amount recognized in accumulated other comprehensive loss, before tax | $ (9,066) | $ (10,499) |
Employee Benefit Plans - Narrat
Employee Benefit Plans - Narrative (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2017 | |
Employee Benefits Disclosure [Line Items] | ||||
Accumulated benefit obligation of defined benefit pension plans | $ 595.4 | $ 652.7 | ||
Total estimated cash contributions to be made during the next fiscal year for defined benefit pension and postretirement benefit plans | $ 6 | |||
Percentage of domestic defined benefit pension plan assets to total defined benefit pension plan assets | 76.00% | |||
Percentage of total membership in pension plan insured | 40.00% | |||
Percentage limitation of an employee's total account balance that may be allocated to the Mattel Stock Fund in the Mattel, Inc. Personal Investment Plan | 25.00% | |||
Liability for deferred compensation and excess benefit plans | $ 62.8 | 59.9 | ||
Cash surrender value of life insurance policies | 88.6 | 79.9 | ||
Expense for incentive compensation plans | $ 137.1 | $ 122.5 | $ 119.5 | |
Defined benefit pension plans | ||||
Employee Benefits Disclosure [Line Items] | ||||
Long-term rate of return on plan assets used to determine net periodic benefit cost for domestic defined benefit pension plans | 5.00% | 5.50% | 6.00% | |
U.S. equity securities | ||||
Employee Benefits Disclosure [Line Items] | ||||
Target allocation for domestic defined benefit pension plan assets | 42.00% | |||
Non U.S. Equity Securities | ||||
Employee Benefits Disclosure [Line Items] | ||||
Target allocation for domestic defined benefit pension plan assets | 28.00% | |||
Long-Term Bond Securities | ||||
Employee Benefits Disclosure [Line Items] | ||||
Target allocation for domestic defined benefit pension plan assets | 20.00% | |||
US Treasury Securities | ||||
Employee Benefits Disclosure [Line Items] | ||||
Target allocation for domestic defined benefit pension plan assets | 10.00% |
Employee Benefit Plans - Accumu
Employee Benefit Plans - Accumulated and Projected Benefit Obligations (Details) - Defined benefit pension plans - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Defined Benefit Plan Disclosure [Line Items] | ||
Projected benefit obligation | $ 523,968 | $ 577,418 |
Accumulated benefit obligation | 506,124 | 559,039 |
Fair value of plan assets | $ 348,660 | $ 351,650 |
Employee Benefit Plans - Assu_2
Employee Benefit Plans - Assumptions Used to Determine Projected and Accumulated Benefit Obligations of Domestic Defined Benefit Pension and Postretirement Benefit Plans (Detail) | Dec. 31, 2021 | Dec. 31, 2020 |
Pre-65 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Health care cost trend rate | 7.00% | 7.00% |
Ultimate cost trend rate | 4.50% | 4.50% |
Post-65 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Health care cost trend rate | 7.00% | 6.80% |
Ultimate cost trend rate | 4.50% | 4.50% |
Defined benefit pension plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 2.50% | 2.20% |
Cash balance interest crediting rate | 4.00% | 4.00% |
Postretirement benefit plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 2.50% | 2.20% |
Annual increase in Medicare Part B premium | 6.00% | 6.00% |
Employee Benefit Plans - Estima
Employee Benefit Plans - Estimated Future Benefit Payments for Defined Benefit Pension and Postretirement Benefit Plans (Detail) $ in Thousands | Dec. 31, 2021USD ($) |
Defined benefit pension plans | |
Defined Benefit Plan Disclosure [Line Items] | |
2022 | $ 36,733 |
2023 | 35,462 |
2024 | 37,931 |
2025 | 36,268 |
2026 | 35,159 |
2027 - 2031 | 175,748 |
Postretirement benefit plans | |
Defined Benefit Plan Disclosure [Line Items] | |
2022 | 730 |
2023 | 630 |
2024 | 530 |
2025 | 530 |
2026 | 530 |
2027 - 2031 | $ 1,520 |
Employee Benefit Plans - Plan A
Employee Benefit Plans - Plan Assets Measured and Reported in Financial Statements at Fair Value (Detail) - Defined benefit pension plans - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 457,132 | $ 457,880 | $ 431,747 |
Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 3,650 | 323 | |
Level 1 | U.S. government and U.S. government agency securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Level 1 | U.S. corporate debt instruments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Level 1 | International corporate debt instruments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Level 1 | Mutual funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Level 1 | Money market funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 3,650 | 323 | |
Level 1 | Other investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Level 1 | Insurance "buy-in" policy | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 100,385 | 109,779 | |
Level 2 | U.S. government and U.S. government agency securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1,584 | 14,132 | |
Level 2 | U.S. corporate debt instruments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 68,070 | 69,708 | |
Level 2 | International corporate debt instruments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 23,752 | 17,490 | |
Level 2 | Mutual funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Level 2 | Money market funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Level 2 | Other investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 6,979 | 8,449 | |
Level 2 | Insurance "buy-in" policy | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 30,731 | 32,794 | |
Level 3 | U.S. government and U.S. government agency securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Level 3 | U.S. corporate debt instruments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Level 3 | International corporate debt instruments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Level 3 | Mutual funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Level 3 | Money market funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Level 3 | Other investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Level 3 | Insurance "buy-in" policy | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 30,731 | 32,794 | |
Fair Value, Inputs, Level 1, 2 and 3 | U.S. government and U.S. government agency securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1,584 | 14,132 | |
Fair Value, Inputs, Level 1, 2 and 3 | U.S. corporate debt instruments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 68,070 | 69,708 | |
Fair Value, Inputs, Level 1, 2 and 3 | International corporate debt instruments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 23,752 | 17,490 | |
Fair Value, Inputs, Level 1, 2 and 3 | Mutual funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 132,165 | 73,314 | |
Fair Value, Inputs, Level 1, 2 and 3 | Money market funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 3,650 | 323 | |
Fair Value, Inputs, Level 1, 2 and 3 | Other investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 6,979 | 8,449 | |
Fair Value, Inputs, Level 1, 2 and 3 | Insurance "buy-in" policy | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 30,731 | 32,794 | |
Fair Value Measured at Net Asset Value Per Share | Collective trust funds, U.S. equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 65,256 | 69,528 | |
Fair Value Measured at Net Asset Value Per Share | Collective trust funds, International equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 12,832 | 66,749 | |
Fair Value Measured at Net Asset Value Per Share | Collective trust funds, Global fixed income | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 48,745 | 45,862 | |
Fair Value Measured at Net Asset Value Per Share | Collective trust funds, diversified funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 46,407 | 42,884 | |
Fair Value Measured at Net Asset Value Per Share | Collective trust funds, diversified funds, real estate | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 16,961 | $ 16,647 |
Employee Benefit Plans - Fair V
Employee Benefit Plans - Fair Value of Plan Assets Roll-Forward (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance at beginning of period | $ 32,794 | $ 31,281 |
Purchases, sales, and settlements | (1,854) | (1,867) |
Change in fair value | (209) | 3,380 |
Balance at end of period | $ 30,731 | $ 32,794 |
Seasonal Financing and Debt - N
Seasonal Financing and Debt - Narrative (Detail) | Mar. 19, 2021USD ($) | Nov. 20, 2019USD ($)tradingDay | Dec. 31, 2019USD ($) | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 20, 2017USD ($) |
Debt Instrument [Line Items] | |||||||
Foreign credit lines available | $ 18,000,000 | ||||||
Short term bank loans outstanding | 0 | $ 969,000 | |||||
Loss on extinguishment of long-term borrowings | $ 9,200,000 | 101,695,000 | 0 | $ 9,236,000 | |||
Redemption of debt | 1,575,997,000 | 0 | $ 607,898,000 | ||||
Credit Agreement | |||||||
Debt Instrument [Line Items] | |||||||
Outstanding letters of credit | 10,000,000 | 11,000,000 | |||||
Foreign Bank Loans | |||||||
Debt Instrument [Line Items] | |||||||
Short term bank loans outstanding | 0 | 1,000,000 | |||||
Domestic Unsecured Committed Revolving Credit Facility And Other Short Term Borrowings | |||||||
Debt Instrument [Line Items] | |||||||
Average borrowings | $ 77,300,000 | $ 201,700,000 | |||||
Weighted average interest rate | 1.30% | 2.20% | |||||
2021 Senior Notes due April 2026 | |||||||
Debt Instrument [Line Items] | |||||||
Debt redemption price, percentage | 103.375% | ||||||
2021 Senior Notes due April 2026 | Senior Notes | |||||||
Debt Instrument [Line Items] | |||||||
Principal of debt instrument | $ 600,000,000 | $ 600,000,000 | |||||
Interest rate range | 3.375% | 3.375% | |||||
2021 Senior Notes due April 2026 | Minimum | |||||||
Debt Instrument [Line Items] | |||||||
Debt redemption call premium, percentage | 0.00% | ||||||
2021 Senior Notes due April 2026 | Maximum | |||||||
Debt Instrument [Line Items] | |||||||
Debt redemption call premium, percentage | 1.688% | ||||||
2021 Senior Notes due April 2029 | |||||||
Debt Instrument [Line Items] | |||||||
Debt redemption price, percentage | 103.75% | ||||||
2021 Senior Notes due April 2029 | Senior Notes | |||||||
Debt Instrument [Line Items] | |||||||
Principal of debt instrument | $ 600,000,000 | $ 600,000,000 | |||||
Interest rate range | 3.75% | 3.75% | |||||
2021 Senior Notes due April 2029 | Minimum | |||||||
Debt Instrument [Line Items] | |||||||
Debt redemption call premium, percentage | 0.00% | ||||||
2021 Senior Notes due April 2029 | Maximum | |||||||
Debt Instrument [Line Items] | |||||||
Debt redemption call premium, percentage | 1.875% | ||||||
2019 Senior Notes due December 2027 | Senior Notes | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate range | 5.875% | ||||||
2017/2018 Senior Notes due December 2025 | Senior Notes | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate range | 6.75% | ||||||
Loss on extinguishment of long-term borrowings | $ (101,700,000) | ||||||
Redemption of debt | 1,500,000,000 | ||||||
Debt prepayment premium costs | 76,000,000 | ||||||
Write-off of unamortized debt issuance costs | 25,700,000 | ||||||
Debt Instrument, Redemption, Period One | 2021 Senior Notes due April 2029 | |||||||
Debt Instrument [Line Items] | |||||||
Percentage of principal amount of debt redeemed | 100.00% | ||||||
Debt Instrument, Redemption, Period Two | 2021 Senior Notes due April 2029 | |||||||
Debt Instrument [Line Items] | |||||||
Percentage of principal amount of debt redeemed | 40.00% | ||||||
Revolving Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Aggregate commitment under the credit facility | $ 1,400,000,000 | $ 1,600,000,000 | |||||
Short-term borrowing outstanding | 0 | $ 0 | |||||
Revolving Credit Facility | Credit Agreement | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, collateral pledged | 1,100,000,000 | ||||||
Interest coverage ratio minimum for covenant compliance | 1 | ||||||
Excess availability under credit facility contingency (less than) | $ 100,000,000 | ||||||
Availability threshold contingency | 10.00% | ||||||
Debt instrument consecutive days | tradingDay | 30 | ||||||
Outstanding borrowing | $ 0 | $ 0 | |||||
Revolving Credit Facility | Credit Agreement | U.S. Borrowers and US Guarantors, Excluding Mattel | |||||||
Debt Instrument [Line Items] | |||||||
Equity interest subject to a lien | 100.00% | ||||||
Revolving Credit Facility | Credit Agreement | Voting Equity Interests | |||||||
Debt Instrument [Line Items] | |||||||
Equity interest subject to a lien | 65.00% | ||||||
Revolving Credit Facility | Credit Agreement | Non-Voting Equity Interests | |||||||
Debt Instrument [Line Items] | |||||||
Equity interest subject to a lien | 100.00% | ||||||
Revolving Credit Facility | Credit Agreement | LIBOR | Minimum | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate margin for loans | 1.25% | ||||||
Revolving Credit Facility | Credit Agreement | LIBOR | Maximum | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate margin for loans | 1.75% | ||||||
Revolving Credit Facility | Credit Agreement | Base Rate | Minimum | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate margin for loans | 0.25% | ||||||
Revolving Credit Facility | Credit Agreement | Base Rate | Maximum | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate margin for loans | 0.75% | ||||||
Revolving Credit Facility, Asset Based | Credit Agreement | |||||||
Debt Instrument [Line Items] | |||||||
Aggregate commitment under the credit facility | $ 1,110,000,000 | ||||||
Revolving Credit Facility, Secured | Credit Agreement | |||||||
Debt Instrument [Line Items] | |||||||
Aggregate commitment under the credit facility | $ 294,000,000 |
Seasonal Financing and Debt - S
Seasonal Financing and Debt - Schedule of Long-term Debt (Detail) - USD ($) $ in Thousands | Dec. 31, 2021 | Mar. 19, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | |||
Gross, long-term debt | $ 2,600,000 | $ 2,900,000 | |
Debt issuance costs and debt discount | (29,008) | (45,336) | |
Long-term debt | 2,570,992 | 2,854,664 | |
Less: current portion | 0 | 0 | |
Total long-term debt | $ 2,570,992 | 2,854,664 | |
2010 Senior Notes due October 2020 and October 2040 | Senior Notes | |||
Debt Instrument [Line Items] | |||
Interest Rate | 6.20% | ||
Gross, long-term debt | $ 250,000 | 250,000 | |
2011 Senior Notes due November 2041 | Senior Notes | |||
Debt Instrument [Line Items] | |||
Interest Rate | 5.45% | ||
Gross, long-term debt | $ 300,000 | 300,000 | |
2013 Senior Notes due March 2023 | Senior Notes | |||
Debt Instrument [Line Items] | |||
Interest Rate | 3.15% | ||
Gross, long-term debt | $ 250,000 | 250,000 | |
2017/2018 Senior Notes due December 2025 | Senior Notes | |||
Debt Instrument [Line Items] | |||
Interest Rate | 6.75% | ||
Gross, long-term debt | $ 0 | 1,500,000 | |
2019 Senior Notes due December 2027 | Senior Notes | |||
Debt Instrument [Line Items] | |||
Interest Rate | 5.875% | ||
Gross, long-term debt | $ 600,000 | 600,000 | |
2021 Senior Notes due April 2026 | Senior Notes | |||
Debt Instrument [Line Items] | |||
Interest Rate | 3.375% | 3.375% | |
Gross, long-term debt | $ 600,000 | 0 | |
2021 Senior Notes due April 2029 | Senior Notes | |||
Debt Instrument [Line Items] | |||
Interest Rate | 3.75% | 3.75% | |
Gross, long-term debt | $ 600,000 | $ 0 |
Seasonal Financing and Debt - L
Seasonal Financing and Debt - Long-Term Debt Maturity (Detail) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Long Term Debt Maturities Repayments Of Principal [Line Items] | ||
2022 | $ 0 | |
2023 | 250,000 | |
2024 | 0 | |
2025 | 0 | |
2026 | 600,000 | |
Thereafter | 1,750,000 | |
Long-term debt | 2,600,000 | $ 2,900,000 |
2010 Senior Notes | Senior Notes | ||
Long Term Debt Maturities Repayments Of Principal [Line Items] | ||
2022 | 0 | |
2023 | 0 | |
2024 | 0 | |
2025 | 0 | |
2026 | 0 | |
Thereafter | 250,000 | |
Long-term debt | 250,000 | 250,000 |
2011 Senior Notes | Senior Notes | ||
Long Term Debt Maturities Repayments Of Principal [Line Items] | ||
2022 | 0 | |
2023 | 0 | |
2024 | 0 | |
2025 | 0 | |
2026 | 0 | |
Thereafter | 300,000 | |
Long-term debt | 300,000 | 300,000 |
2013 Senior Notes | Senior Notes | ||
Long Term Debt Maturities Repayments Of Principal [Line Items] | ||
2022 | 0 | |
2023 | 250,000 | |
2024 | 0 | |
2025 | 0 | |
2026 | 0 | |
Thereafter | 0 | |
Long-term debt | 250,000 | 250,000 |
2019 Senior Notes | Senior Notes | ||
Long Term Debt Maturities Repayments Of Principal [Line Items] | ||
2022 | 0 | |
2023 | 0 | |
2024 | 0 | |
2025 | 0 | |
2026 | 0 | |
Thereafter | 600,000 | |
Long-term debt | 600,000 | $ 600,000 |
2021 Senior Notes | Senior Notes | ||
Long Term Debt Maturities Repayments Of Principal [Line Items] | ||
2022 | 0 | |
2023 | 0 | |
2024 | 0 | |
2025 | 0 | |
2026 | 600,000 | |
Thereafter | 600,000 | |
Long-term debt | $ 1,200,000 |
Stockholders' Equity - Narrativ
Stockholders' Equity - Narrative (Detail) - USD ($) | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Jul. 17, 2013 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Preference stock, maximum shares authorized to be issued (shares) | 20,000,000 | |||
Preference stock, par value (USD per share) | $ 0.01 | |||
Preference stock, shares outstanding (shares) | 0 | |||
Preferred stock, maximum shares authorized to be issued (shares) | 3,000,000 | |||
Preferred stock, par value (USD per share) | $ 1 | |||
Preferred stock, shares outstanding (shares) | 0 | |||
Authorized increase to share repurchase program | $ 500,000,000 | |||
Remaining share repurchase authorizations under share repurchase program | $ 203,000,000 | |||
Dividends paid per share of common stock (USD per share) | $ 0 | $ 0 | $ 0 | |
Currency translation adjustments gain (loss) | $ 3,305,000 | $ (75,092,000) | $ (10,258,000) | |
Common Stock | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Stock repurchased (in shares) | 0 | 0 | 0 | |
Currency Translation Adjustments | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Currency translation adjustments gain (loss) | $ (54,690,000) | $ (32,423,000) | $ 18,919,000 |
Stockholders' Equity - Changes
Stockholders' Equity - Changes in AOCI (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
AOCI Rollforward | |||
Balance at beginning of period | $ 610,144 | $ 508,564 | $ 688,989 |
Other comprehensive income (loss) before reclassifications | (10,401) | (72,915) | 543 |
Amounts reclassified from accumulated other comprehensive income (loss) | 13,706 | (2,177) | (10,801) |
Other Comprehensive Income (Loss), Net of Tax | 3,305 | (75,092) | (10,258) |
Balance at end of period | 1,568,849 | 610,144 | 508,564 |
Derivative Instruments | |||
AOCI Rollforward | |||
Balance at beginning of period | (15,369) | 11,041 | 11,411 |
Other comprehensive income (loss) before reclassifications | 23,253 | (18,289) | 14,495 |
Amounts reclassified from accumulated other comprehensive income (loss) | 912 | (8,121) | (14,865) |
Other Comprehensive Income (Loss), Net of Tax | 24,165 | (26,410) | (370) |
Balance at end of period | 8,796 | (15,369) | 11,041 |
Available-for-Sale Security | |||
AOCI Rollforward | |||
Balance at beginning of period | (7,522) | (8,260) | (6,547) |
Other comprehensive income (loss) before reclassifications | 1,075 | 738 | (1,713) |
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | 0 | 0 |
Other Comprehensive Income (Loss), Net of Tax | 1,075 | 738 | (1,713) |
Balance at end of period | (6,447) | (7,522) | (8,260) |
Employee Benefit Plans | |||
AOCI Rollforward | |||
Balance at beginning of period | (186,854) | (169,857) | (142,763) |
Other comprehensive income (loss) before reclassifications | 19,961 | (22,941) | (31,158) |
Amounts reclassified from accumulated other comprehensive income (loss) | 12,794 | 5,944 | 4,064 |
Other Comprehensive Income (Loss), Net of Tax | 32,755 | (16,997) | (27,094) |
Balance at end of period | (154,099) | (186,854) | (169,857) |
Currency Translation Adjustments | |||
AOCI Rollforward | |||
Balance at beginning of period | (734,831) | (702,408) | (721,327) |
Other comprehensive income (loss) before reclassifications | (54,690) | (32,423) | 18,919 |
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | 0 | 0 |
Other Comprehensive Income (Loss), Net of Tax | (54,690) | (32,423) | 18,919 |
Balance at end of period | (789,521) | (734,831) | (702,408) |
AOCI Attributable to Parent | |||
AOCI Rollforward | |||
Balance at beginning of period | (944,576) | (869,484) | (859,226) |
Other Comprehensive Income (Loss), Net of Tax | 3,305 | (75,092) | (10,258) |
Balance at end of period | $ (941,271) | $ (944,576) | $ (869,484) |
Stockholders' Equity - Reclassi
Stockholders' Equity - Reclassifications from AOCI (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
(Benefit) provision for income taxes | $ (420,381) | $ 65,549 | $ 58,324 |
Other non-operating expense, net | 8,364 | 2,692 | 1,879 |
Net Income (Loss) | (902,987) | (123,579) | 218,750 |
Derivative Instruments | Reclassification Out of Accumulated Other Comprehensive Income (Loss) | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Cost of sales | (512) | 8,040 | 15,517 |
(Benefit) provision for income taxes | (400) | 81 | (652) |
Net Income (Loss) | (912) | 8,121 | 14,865 |
Employee Benefit Plans | Reclassification Out of Accumulated Other Comprehensive Income (Loss) | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
(Benefit) provision for income taxes | 3,528 | 1,881 | 1,255 |
Other non-operating expense, net | (16,322) | (7,825) | (5,319) |
Net Income (Loss) | (12,794) | (5,944) | (4,064) |
Amortization of prior service cost | Reclassification Out of Accumulated Other Comprehensive Income (Loss) | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other non-operating expense, net | 1,875 | 1,735 | 1,974 |
Recognized actuarial loss | Reclassification Out of Accumulated Other Comprehensive Income (Loss) | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other non-operating expense, net | (11,167) | (9,510) | (7,201) |
Curtailment loss | Reclassification Out of Accumulated Other Comprehensive Income (Loss) | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other non-operating expense, net | (48) | (50) | (92) |
Settlement loss | Reclassification Out of Accumulated Other Comprehensive Income (Loss) | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other non-operating expense, net | $ (6,982) | $ 0 | $ 0 |
Leases - Narrative (Details)
Leases - Narrative (Details) | Dec. 31, 2021 |
Lessee, Lease, Description [Line Items] | |
Renewal term | 10 years |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Remaining lease term | 11 years |
Leases - Right of Use Assets an
Leases - Right of Use Assets and Lease Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Leases [Abstract] | ||
Operating lease, liability, current, statement of financial position extensible list | Accrued liabilities | Accrued liabilities |
Right-of-use assets, net | $ 325,484 | $ 291,601 |
Accrued liabilities | 73,752 | 79,540 |
Noncurrent lease liabilities | 283,626 | 249,353 |
Total lease liabilities | $ 357,378 | $ 328,893 |
Weighted-average remaining lease term | 6 years 1 month 6 days | 6 years 7 months 6 days |
Weighted-average discount rate | 6.50% | 7.60% |
Leases - Lease Cost (Details)
Leases - Lease Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Leases [Abstract] | |||
Lease costs | $ 134,272 | $ 136,842 | $ 142,100 |
Sublease rental income | 2,077 | 2,697 | 5,690 |
Short-term and variable lease cost | $ 39,000 | $ 42,000 | $ 44,000 |
Leases - Cash Flow (Details)
Leases - Cash Flow (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Leases [Abstract] | |||
Cash payments for leases | $ 100,286 | $ 96,953 | $ 105,015 |
Right-of-use assets obtained in exchange for new and modified lease liabilities | $ 105,898 | $ 53,753 | $ 29,389 |
Leases - Future Lease Maturitie
Leases - Future Lease Maturities (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Leases [Abstract] | ||
2022 | $ 92,254 | |
2023 | 79,785 | |
2024 | 67,293 | |
2025 | 57,103 | |
2026 | 45,331 | |
Thereafter | 96,167 | |
Total lease payments | 437,933 | |
Less: imputed interest | (80,555) | |
Total | $ 357,378 | $ 328,893 |
Share-Based Payments - Narrativ
Share-Based Payments - Narrative (Detail) | 12 Months Ended | |||
Dec. 31, 2021USD ($)AgeincentiveProgram$ / sharesshares | Dec. 31, 2020USD ($)$ / sharesshares | Dec. 31, 2019USD ($)$ / sharesshares | Dec. 31, 2018$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation | $ 60,081,000 | $ 60,168,000 | $ 55,968,000 | |
Total unrecognized compensation cost related to unvested share-based payments | $ 89,500,000 | |||
Weighted average period for unrecognized compensation cost expected to be recognized | 2 years 1 month 6 days | |||
Income tax benefits from share-based payment arrangements | $ 7,000,000 | $ 0 | $ 0 | |
Weighted average grant date fair value of stock options granted (USD per share) | $ / shares | $ 9.31 | $ 4.60 | $ 5.09 | |
Intrinsic value of stock options exercised | $ 3,000,000 | $ 0 | $ 0 | |
Intrinsic value of stock options outstanding | $ 56,000,000 | |||
Weighted average remaining life of stock options outstanding | 4 years 3 months 18 days | |||
Intrinsic value of stock options exercisable | $ 36,000,000 | |||
Weighted average remaining life of stock options exercisable | 3 years 6 months | |||
Cash received from stock options exercised | $ 12,000,000 | |||
Stock options vested or expected to vest (in shares) | shares | 19,000,000 | |||
Intrinsic value of stock options vested or expected to vest | $ 54,200,000 | |||
Weighted average exercise price of stock options vested or expected to vest (USD per share) | $ / shares | $ 22.47 | |||
Weighted average remaining life of stock options vested or expected to vest | 4 years 2 months 12 days | |||
Approximate stock options vested (in shares) | shares | 3,000,000 | |||
Approximate total grant date fair value of stock options vested | $ 15,000,000 | $ 11,000,000 | 8,000,000 | |
Weighted average grant date fair value of restricted stock units expected to vest (USD per share) | $ / shares | $ 16.88 | |||
Number of long-term incentive programs | incentiveProgram | 3 | |||
Long-term incentive program, performance target duration | 3 years | |||
Stock Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation | $ 10,100,000 | 11,600,000 | 11,300,000 | |
Market-Based Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award performance cycle | 3 years | |||
Restricted Stock Units (RSUs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
General vesting period | 3 years | |||
Share-based compensation | $ 27,300,000 | 28,600,000 | 33,600,000 | |
Stock units expected to vest (in shares) | shares | 3,000,000 | |||
Total grant date fair value of restricted stock units vested | $ 27,000,000 | $ 31,000,000 | $ 36,000,000 | |
Weighted average grant date fair value (USD per share) | $ / shares | $ 21.77 | $ 11.18 | $ 13.28 | |
Awards vested during the period (in shares) | shares | 1,954,000 | 1,970,000 | 1,997,000 | |
Performance Awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
General vesting period | 3 years | |||
Stock units expected to vest (in shares) | shares | 4,000,000 | |||
Weighted average grant date fair value of restricted stock units expected to vest (USD per share) | $ / shares | $ 14.93 | |||
Total grant date fair value of restricted stock units vested | $ 14,000,000 | $ 2,000,000 | ||
Long term incentive compensation expenses | $ 22,700,000 | $ 19,900,000 | $ 11,000,000 | |
Weighted average grant date fair value (USD per share) | $ / shares | $ 22.04 | $ 11.93 | $ 14.89 | |
Awards vested during the period (in shares) | shares | 884,000 | 95,000 | 0 | |
Performance Awards | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Long-term incentive program, percentage of shares that may ultimately be earned | 0.00% | |||
Performance Awards | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Long-term incentive program, percentage of shares that may ultimately be earned | 200.00% | |||
Amended 2010 Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares authorized | shares | 120,000,000 | |||
Amended 2010 Plan | Target Performance Goals | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Remaining number of shares of common stock available for grant under the Mattel, Inc. 2010 Equity and Long-Term Compensation Plan | shares | 32,000,000 | |||
Amended 2010 Plan | Maximum Achievement Goals | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Remaining number of shares of common stock available for grant under the Mattel, Inc. 2010 Equity and Long-Term Compensation Plan | shares | 24,000,000 | |||
Amended 2010 Plan | Stock Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Minimum grant date fair value of nonqualified stock options as a percentage of the fair value of Mattel's common stock | 100.00% | |||
General vesting period | 3 years | |||
Age requirement for accelerated vesting | Age | 55 | |||
Service period requirement for accelerated vesting | 5 years | |||
Accelerated vesting period for individuals who meet the age and service requirements | 6 months | |||
Amended 2010 Plan | Stock Options | Grants prior to March 1, 2019 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares issued per RSU award | 1 | |||
Amended 2010 Plan | Stock Options | Grants on or after March 1, 2019 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares issued per RSU award | 1 | |||
Amended 2010 Plan | Stock Options | Grants on or after March 2, 2020 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares issued per RSU award | 1 | |||
Amended 2010 Plan | Stock Options | Grants on or after March 2, 2021 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares issued per RSU award | 1 | |||
Amended 2010 Plan | Stock Options | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock option expire from date of grant, period (no later than) | 10 years | |||
Amended 2010 Plan | Market-Based Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Weighted average grant date fair value of stock options granted (USD per share) | $ / shares | $ 4.21 | |||
Amended 2010 Plan | Market-Based Options | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Remaining number of shares of common stock available for grant under the Mattel, Inc. 2010 Equity and Long-Term Compensation Plan | shares | 0 | |||
Amended 2010 Plan | Market-Based Options | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Remaining number of shares of common stock available for grant under the Mattel, Inc. 2010 Equity and Long-Term Compensation Plan | shares | 1,300,000 | |||
Amended 2010 Plan | Restricted Stock Units (RSUs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
General vesting period | 3 years | |||
Age requirement for accelerated vesting | Age | 55 | |||
Service period requirement for accelerated vesting | 5 years | |||
Accelerated vesting period for individuals who meet the age and service requirements | 6 months | |||
Amended 2010 Plan | Restricted Stock Units (RSUs) | Grants prior to March 1, 2019 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares issued per RSU award | 3 | |||
Amended 2010 Plan | Restricted Stock Units (RSUs) | Grants on or after March 1, 2019 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares issued per RSU award | 2.7 | |||
Amended 2010 Plan | Restricted Stock Units (RSUs) | Grants on or after March 2, 2020 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares issued per RSU award | 2.35 | |||
Amended 2010 Plan | Restricted Stock Units (RSUs) | Grants on or after March 2, 2021 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares issued per RSU award | 1.9 | |||
Amended 2010 Plan | Stock Appreciation Rights (SARs) | Grants prior to March 1, 2019 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares issued per RSU award | 1 | |||
Amended 2010 Plan | Stock Appreciation Rights (SARs) | Grants on or after March 1, 2019 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares issued per RSU award | 1 | |||
Amended 2010 Plan | Stock Appreciation Rights (SARs) | Grants on or after March 2, 2020 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares issued per RSU award | 1 | |||
Amended 2010 Plan | Stock Appreciation Rights (SARs) | Grants on or after March 2, 2021 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares issued per RSU award | 1 | |||
Amended 2010 Plan | Restricted Stock | Grants prior to March 1, 2019 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares issued per RSU award | 3 | |||
Amended 2010 Plan | Restricted Stock | Grants on or after March 1, 2019 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares issued per RSU award | 2.7 | |||
Amended 2010 Plan | Restricted Stock | Grants on or after March 2, 2020 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares issued per RSU award | 2.35 | |||
Amended 2010 Plan | Restricted Stock | Grants on or after March 2, 2021 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares issued per RSU award | 1.9 |
Share-Based Payments - Weighted
Share-Based Payments - Weighted Average Assumptions Used to Determine Fair Value of Options Granted (Detail) - Stock Options | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected life (in years) | 6 years 2 months 12 days | 5 years 10 months 24 days | 5 years 6 months |
Risk-free interest rate | 0.80% | 0.30% | 1.70% |
Volatility factor | 43.60% | 43.70% | 38.10% |
Dividend yield | 0.00% | 0.00% | 0.00% |
Share-Based Payments - Summary
Share-Based Payments - Summary of Stock Option Information and Weighted Average Exercise Prices (Detail) - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Shares | |||
Outstanding at beginning of period (shares) | 21,635 | 22,510 | 22,020 |
Granted (shares) | 1,054 | 2,241 | 2,342 |
Exercised (shares) | (687) | (4) | 0 |
Forfeited (shares) | (72) | (294) | (266) |
Canceled (shares) | (2,252) | (2,818) | (1,586) |
Outstanding at end of period (shares) | 19,678 | 21,635 | 22,510 |
Exercisable at end of period (shares) | 16,634 | 16,356 | 16,576 |
Weighted Average Exercise Price | |||
Outstanding at beginning of period (USD per share) | $ 22.10 | $ 24.22 | $ 25.47 |
Granted (USD per share) | 21.71 | 11.23 | 13.54 |
Exercised (USD per share) | 17.65 | 15.02 | 0 |
Forfeited (USD per share) | 14 | 14.38 | 17.64 |
Canceled (USD per share) | 21.10 | 31.22 | 26.79 |
Outstanding at end of period (USD per share) | 22.38 | 22.10 | 24.22 |
Exercisable at end of period (USD per share) | $ 23.68 | $ 25.01 | $ 27.32 |
Share-Based Payments - Summar_2
Share-Based Payments - Summary of RSU Information and Weighted Average Grant Date Fair Values (Detail) - Restricted Stock Units (RSUs) - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Shares | |||
Unvested at beginning of period (shares) | 3,986 | 3,864 | 4,721 |
Granted (shares) | 2,167 | 2,548 | 1,687 |
Vested (shares) | (1,954) | (1,970) | (1,997) |
Forfeited (shares) | (344) | (456) | (547) |
Unvested at end of period (shares) | 3,855 | 3,986 | 3,864 |
Weighted Average Grant Date Fair Value | |||
Unvested at beginning of period (USD per share) | $ 12.52 | $ 15.19 | $ 17.22 |
Granted (USD per share) | 21.77 | 11.18 | 13.28 |
Vested (USD per share) | 13.66 | 15.58 | 18.02 |
Forfeited (USD per share) | 13.72 | 14.45 | 16.48 |
Unvested at end of period (USD per share) | $ 17.03 | $ 12.52 | $ 15.19 |
Share-Based Payments - Weight_2
Share-Based Payments - Weighted Average Assumptions Used to Determine Fair Value of Performance Awards (Details) - Performance Awards | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate | 0.30% | 0.10% | 1.70% |
Volatility factor | 50.10% | 52.70% | 47.00% |
Dividend yield | 0.00% | 0.00% | 0.00% |
Share-Based Payments - Summar_3
Share-Based Payments - Summary of Performance Award Information and Weighted Average Grant Date Fair Values (Details) - Performance Awards - $ / shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Shares | |||
Unvested at beginning of period (shares) | 3,405,000 | 2,217,000 | 1,283,000 |
Granted (shares) | 906,000 | 1,461,000 | 1,206,000 |
Vested (shares) | (884,000) | (95,000) | 0 |
Forfeited (shares) | (80,000) | (74,000) | (71,000) |
Canceled (in shares) | 0 | (104,000) | (201,000) |
Unvested at end of period (shares) | 3,347,000 | 3,405,000 | 2,217,000 |
Weighted Average Grant Date Fair Value | |||
Unvested at beginning of period (USD per share) | $ 13.79 | $ 15.45 | $ 19.48 |
Granted (USD per share) | 22.04 | 11.93 | 14.89 |
Vested (USD per share) | 15.63 | 17.97 | 0 |
Forfeited (USD per share) | 14.70 | 15.65 | 15.74 |
Canceled (USD per share) | 0 | 17.97 | 37.70 |
Unvested at end of period (USD per share) | $ 15.52 | $ 13.79 | $ 15.45 |
Maximum shares that could be issued in connection with grants in period (shares) | 2,000,000 | 3,000,000 | 2,000,000 |
Earnings Per Share (Detail)
Earnings Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Basic: | |||
Net income (loss) | $ 902,987 | $ 123,579 | $ (218,750) |
Weighted-average common shares outstanding (in shares) | 350,007 | 347,463 | 346,127 |
Basic net income per common share (USD per share) | $ 2.58 | $ 0.36 | $ (0.63) |
Diluted: | |||
Net income (loss) | $ 902,987 | $ 123,579 | $ (218,750) |
Weighted-average common shares outstanding (in shares) | 350,007 | 347,463 | 346,127 |
Dilutive share-based awards (in shares) | 7,246 | 1,653 | 0 |
Weighted-average number of common and potential common shares (in shares) | 357,253 | 349,116 | 346,127 |
Diluted net income per common share (USD per share) | $ 2.53 | $ 0.35 | $ (0.63) |
Antidilutive securities excluded from computation of earnings per share (in shares) | 12,100 | 21,700 |
Fair Value Measurements - Finan
Fair Value Measurements - Financial Assets and Liabilities Measured and Reported at Fair Value on Recurring Basis (Detail) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Assets: | ||
Foreign currency forward exchange contracts and other | $ 18,075 | $ 5,711 |
Available-for-sale | 5,343 | 4,268 |
Total assets | 23,418 | 9,979 |
Liabilities: | ||
Foreign currency forward exchange contracts and other | 3,810 | 25,494 |
Level 1 | ||
Assets: | ||
Foreign currency forward exchange contracts and other | 0 | 0 |
Available-for-sale | 5,343 | 4,268 |
Total assets | 5,343 | 4,268 |
Liabilities: | ||
Foreign currency forward exchange contracts and other | 0 | 0 |
Level 2 | ||
Assets: | ||
Foreign currency forward exchange contracts and other | 18,075 | 5,711 |
Available-for-sale | 0 | 0 |
Total assets | 18,075 | 5,711 |
Liabilities: | ||
Foreign currency forward exchange contracts and other | 3,810 | 25,494 |
Level 3 | ||
Assets: | ||
Foreign currency forward exchange contracts and other | 0 | 0 |
Available-for-sale | 0 | 0 |
Total assets | 0 | 0 |
Liabilities: | ||
Foreign currency forward exchange contracts and other | $ 0 | $ 0 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Detail) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Fair Value Disclosures [Abstract] | ||
Estimated fair value of long-term debt | $ 2,820,000 | $ 3,110,000 |
Long-term debt, gross | $ 2,600,000 | $ 2,900,000 |
Derivative Instruments - Narrat
Derivative Instruments - Narrative (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Foreign currency forward exchange contracts and other | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Notional amount | $ 925 | $ 855 |
Maximum | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Maximum term for foreign currency forward exchange contracts | 24 months |
Derivative Instruments - Schedu
Derivative Instruments - Schedule of Derivative Assets and Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | $ 18,075 | $ 5,711 |
Level 2 | Fair Value, Measurements, Recurring | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | 3,810 | 25,494 |
Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 14,361 | 3,691 |
Derivative Liabilities | 2,581 | 24,691 |
Designated as Hedging Instrument | Foreign currency forward exchange contracts and other | Prepaid expenses and other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 13,361 | 3,641 |
Designated as Hedging Instrument | Foreign currency forward exchange contracts and other | Other noncurrent assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 1,000 | 50 |
Designated as Hedging Instrument | Foreign currency forward exchange contracts and other | Accrued liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | 2,301 | 20,330 |
Designated as Hedging Instrument | Foreign currency forward exchange contracts and other | Other noncurrent liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | 280 | 4,361 |
Not Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 3,714 | 2,020 |
Not Designated as Hedging Instrument | Foreign currency forward exchange contracts and other | Prepaid expenses and other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 3,714 | 1,982 |
Not Designated as Hedging Instrument | Foreign currency forward exchange contracts and other | Other noncurrent assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 0 | 38 |
Not Designated as Hedging Instrument | Foreign currency forward exchange contracts and other | Accrued liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | $ 1,229 | $ 803 |
Derivative Instruments - Deriva
Derivative Instruments - Derivatives Designated as Hedging Instruments by Classification and Amount of Gains and Losses (Detail) - Foreign currency forward exchange contracts and other - Cost of sales - Designated as Hedging Instrument - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of gains (losses) recognized in OCI | $ 23,253 | $ (18,289) | $ 14,495 |
Amount of (losses) gains reclassified from accumulated OCI to the consolidated statements of operations | $ (912) | $ 8,121 | $ 14,865 |
Derivative Instruments - Deri_2
Derivative Instruments - Derivatives Not Designated as Hedging Instruments by Classification and Amount of Gains and Losses (Detail) - Not Designated as Hedging Instrument - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of net gains (losses) recognized in the Statements of Operations | $ 3,511 | $ (26,058) | $ 2,530 |
Foreign currency forward exchange contracts and other | Other non-operating expense, net | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of net gains (losses) recognized in the Statements of Operations | 2,872 | (26,553) | 2,530 |
Foreign currency forward exchange contracts and other | Cost of sales | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of net gains (losses) recognized in the Statements of Operations | $ 639 | $ 495 | $ 0 |
Commitments and Contingencies -
Commitments and Contingencies - Schedule of Future Minimum Payments for Licensing and Similar Agreements (Detail) $ in Thousands | Dec. 31, 2021USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2022 | $ 43,650 |
2023 | 117,672 |
2024 | 73,650 |
2025 | 49,440 |
2026 | 0 |
Thereafter | 0 |
Total future minimum licensing and similar agreements obligations | $ 284,412 |
Commitments and Contingencies_2
Commitments and Contingencies - Additional Information (Detail) $ in Millions | Oct. 25, 2021USD ($) | Apr. 30, 2020complaint | Jan. 31, 2020stockholder | Dec. 31, 2021USD ($)incentiveProgramlawsuitclass | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) |
Commitments and Contingencies Disclosure [Line Items] | ||||||
Royalty expense | $ 184.3 | $ 158.5 | $ 220.2 | |||
Liability for reported and incurred but not reported claims | $ 13 | 12.9 | ||||
Number of stockholders who filed complaints | stockholder | 2 | |||||
Number of complaints considered | complaint | 2 | |||||
Sleeper | ||||||
Commitments and Contingencies Disclosure [Line Items] | ||||||
Number of additional lawsuits pending | lawsuit | 40 | |||||
Number of children with injuries or fatalities related to lawsuits | incentiveProgram | 44 | |||||
Sleeper | Minimum | ||||||
Commitments and Contingencies Disclosure [Line Items] | ||||||
Number of consumer classes | class | 10 | |||||
Whistleblower Letter | ||||||
Commitments and Contingencies Disclosure [Line Items] | ||||||
Number of additional lawsuits pending | lawsuit | 7 | |||||
Litigation settlement, amount awarded to other party | $ 86 | |||||
Workers Compensation Risks | ||||||
Commitments and Contingencies Disclosure [Line Items] | ||||||
Self-insured amount per occurrence | $ 1 | |||||
General And Automobile Liability Risks | ||||||
Commitments and Contingencies Disclosure [Line Items] | ||||||
Self-insured amount per occurrence | 0.5 | |||||
Product Liability Risks Prior to Feb 1, 2020 | ||||||
Commitments and Contingencies Disclosure [Line Items] | ||||||
Self-insured amount per occurrence | $ 2 | |||||
Product Liability Risks After Feb 1, 2020 | ||||||
Commitments and Contingencies Disclosure [Line Items] | ||||||
Self-insured amount per occurrence | 5 | |||||
Property Risks | ||||||
Commitments and Contingencies Disclosure [Line Items] | ||||||
Self-insured amount per occurrence | $ 1 |
Commitments and Contingencies_3
Commitments and Contingencies - Schedule of Future Minimum Obligations for Purchases of Inventory, Services, and Other (Detail) $ in Thousands | Dec. 31, 2021USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2022 | $ 370,014 |
2023 | 49,349 |
2024 | 22,194 |
2025 | 5,272 |
2026 | 2,800 |
Thereafter | 0 |
Total future minimum obligations for purchases of inventory, services, and other | $ 449,629 |
Segment Information - Revenues
Segment Information - Revenues by Segment (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Segment Reporting Information [Line Items] | |||
Revenues | $ 5,457,741 | $ 4,588,433 | $ 4,504,571 |
Operating (Loss) Income by Segment | 729,562 | 374,736 | 37,102 |
Interest expense | 253,937 | 198,332 | 201,044 |
Interest (income) | (3,503) | (3,945) | (6,166) |
Other non-operating expense, net | 8,364 | 2,692 | 1,879 |
Income (Loss) Before Income Taxes | 470,764 | 177,657 | (159,655) |
Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Operating (Loss) Income by Segment | 1,227,897 | 880,164 | 507,661 |
Severance and other restructuring costs | 2,900 | 5,700 | 18,600 |
Operating Segments | North America | |||
Segment Reporting Information [Line Items] | |||
Revenues | 2,968,278 | 2,426,480 | 2,275,783 |
Operating (Loss) Income by Segment | 872,536 | 621,859 | 381,112 |
Operating Segments | International | |||
Segment Reporting Information [Line Items] | |||
Revenues | 2,219,189 | 1,903,550 | 1,972,196 |
Operating (Loss) Income by Segment | 349,952 | 272,395 | 185,803 |
Operating Segments | American Girl | |||
Segment Reporting Information [Line Items] | |||
Revenues | 270,274 | 258,403 | 256,592 |
Operating (Loss) Income by Segment | 5,409 | (14,090) | (59,254) |
Corporate and Other Expense | |||
Segment Reporting Information [Line Items] | |||
Operating (Loss) Income by Segment | (498,335) | (505,428) | (470,559) |
Severance and other restructuring costs | 31,500 | 34,900 | 40,500 |
Expenses related to inclined sleeper recall litigation | $ 15,100 | $ 26,200 | $ 10,300 |
Segment Information - Depreciat
Segment Information - Depreciation/Amortization (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | $ 184,313 | $ 193,451 | $ 244,518 |
Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | 158,426 | 168,784 | 213,041 |
Operating Segments | North America | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | 86,308 | 88,128 | 110,299 |
Operating Segments | International | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | 59,610 | 67,218 | 85,496 |
Operating Segments | American Girl | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | 12,508 | 13,438 | 17,246 |
Corporate and Other | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | $ 25,887 | $ 24,667 | $ 31,477 |
Segment Information - Segment A
Segment Information - Segment Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Accounts receivable and inventories, net | $ 1,849,868 | $ 1,562,440 | $ 1,454,033 |
Operating Segments | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Accounts receivable and inventories, net | 1,635,837 | 1,413,861 | 1,331,258 |
Operating Segments | North America | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Accounts receivable and inventories, net | 784,836 | 658,404 | 569,352 |
Operating Segments | International | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Accounts receivable and inventories, net | 798,833 | 715,043 | 727,781 |
Operating Segments | American Girl | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Accounts receivable and inventories, net | 52,168 | 40,414 | 34,125 |
Corporate and Other | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Accounts receivable and inventories, net | $ 214,031 | $ 148,579 | $ 122,775 |
Segment Information - Revenue_2
Segment Information - Revenues by Geographic Area (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Revenues | $ 5,457,741 | $ 4,588,433 | $ 4,504,571 |
United States | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Revenues | 3,070,000 | 2,530,000 | 2,390,000 |
North America | North American Region | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Revenues | 3,238,552 | 2,684,883 | 2,532,375 |
International Region | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Revenues | 2,219,189 | 1,903,550 | 1,972,196 |
International Region | EMEA | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Revenues | 1,375,463 | 1,132,531 | 1,056,392 |
International Region | Latin America | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Revenues | 519,610 | 455,184 | 565,416 |
International Region | Asia Pacific | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Revenues | $ 324,116 | $ 315,835 | $ 350,388 |
Segment Information - Long-Live
Segment Information - Long-Lived Assets by Geographic Area (Detail) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long-lived assets | $ 781,450 | $ 765,395 | $ 823,242 |
North American Region | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long-lived assets | 366,519 | 368,985 | 413,075 |
United States | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long-lived assets | 343,700 | 329,300 | 383,300 |
International Region | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long-lived assets | $ 414,931 | $ 396,410 | $ 410,167 |
Segment Information - Major Cus
Segment Information - Major Customers (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenue, Major Customer [Line Items] | |||
Net sales | $ 5,457,741 | $ 4,588,433 | $ 4,504,571 |
Three Largest Customers | Revenue Benchmark | Customer Concentration Risk | |||
Revenue, Major Customer [Line Items] | |||
Revenue concentration percentage | 46.00% | ||
Wal Mart | |||
Revenue, Major Customer [Line Items] | |||
Net sales | $ 1,170,000 | 1,070,000 | 1,010,000 |
Target | |||
Revenue, Major Customer [Line Items] | |||
Net sales | 740,000 | 620,000 | $ 440,000 |
Amazon | |||
Revenue, Major Customer [Line Items] | |||
Net sales | $ 620,000 | $ 470,000 | |
Two Largest Customers | Revenue Benchmark | Customer Concentration Risk | |||
Revenue, Major Customer [Line Items] | |||
Revenue concentration percentage | 47.00% | 32.00% |
Restructuring Charges - Cost an
Restructuring Charges - Cost and Expense Categories (Details) - Optimizing for Growth - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Restructuring Cost and Reserve [Line Items] | |||
Severance and other restructuring costs | $ 35,151 | $ 12,901 | $ 37,571 |
Cost of sales | |||
Restructuring Cost and Reserve [Line Items] | |||
Severance and other restructuring costs | 2,885 | 5,656 | 18,579 |
Other selling and administrative | |||
Restructuring Cost and Reserve [Line Items] | |||
Severance and other restructuring costs | $ 32,266 | $ 7,245 | $ 18,992 |
Restructuring Charges - Restruc
Restructuring Charges - Restructuring Costs Activity (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Severance | |||
Restructuring Reserve [Roll Forward] | |||
Charges | $ 28,000 | ||
Other restructuring costs | |||
Restructuring Reserve [Roll Forward] | |||
Charges | 19,000 | ||
Optimizing for Growth | |||
Restructuring Reserve [Roll Forward] | |||
Remaining liability at beginning of period | 5,324 | $ 17,635 | |
Charges | 35,151 | 12,901 | $ 37,571 |
Payments/Utilization | (25,230) | (25,212) | |
Remaining liability at end of period | 15,245 | 5,324 | 17,635 |
Optimizing for Growth | Severance | |||
Restructuring Reserve [Roll Forward] | |||
Remaining liability at beginning of period | 5,294 | 6,151 | |
Charges | 17,979 | 6,874 | |
Payments/Utilization | (10,862) | (7,731) | |
Remaining liability at end of period | 12,411 | 5,294 | 6,151 |
Optimizing for Growth | Other restructuring costs | |||
Restructuring Reserve [Roll Forward] | |||
Remaining liability at beginning of period | 30 | 11,484 | |
Charges | 17,172 | 6,027 | |
Payments/Utilization | (14,368) | (17,481) | |
Remaining liability at end of period | $ 2,834 | $ 30 | $ 11,484 |
Restructuring Charges - Narrati
Restructuring Charges - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | May 31, 2020 | |
Restructuring Cost and Reserve [Line Items] | |||||
Non-manufacturing workforce reduction commitment, percentage | 4.00% | ||||
Mexico | Land and buildings | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Gain on disposal of property, plant, and equipment | $ 15,800 | $ 15,800 | |||
Severance | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Severance and other restructuring costs | 28,000 | ||||
Other restructuring costs | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Severance and other restructuring costs | 19,000 | ||||
Optimizing for Growth | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Cumulative severance and other restructuring charges | 86,000 | ||||
Cumulative severance and other restructuring charges, non-cash | 21,000 | ||||
Severance and other restructuring costs | 35,151 | $ 12,901 | $ 37,571 | ||
Optimizing for Growth | Minimum | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Expected restructuring costs | 140,000 | ||||
Restructuring and related cost, expected cost, non-cash | 70,000 | ||||
Optimizing for Growth | Maximum | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Expected restructuring costs | 165,000 | ||||
Restructuring and related cost, expected cost, non-cash | 75,000 | ||||
Optimizing for Growth | Severance | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Severance and other restructuring costs | 17,979 | 6,874 | |||
Optimizing for Growth | Other restructuring costs | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Severance and other restructuring costs | 17,172 | $ 6,027 | |||
Structural Simplification Cost Savings Program | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Severance and other restructuring costs | $ 9,000 |
Income Taxes - Pre-tax (Loss) I
Income Taxes - Pre-tax (Loss) Income (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
U.S. operations | $ 9,612 | $ (172,478) | $ (329,112) |
Foreign operations | 461,152 | 350,135 | 169,457 |
Income (Loss) Before Income Taxes | $ 470,764 | $ 177,657 | $ (159,655) |
Income Taxes - Provision (Benef
Income Taxes - Provision (Benefit) for Current and Deferred Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Current | |||
Federal | $ (9,819) | $ 0 | $ 5,520 |
State | (4,060) | (575) | 2,170 |
Foreign | 81,899 | 78,870 | 68,837 |
Total current income tax expense | 68,020 | 78,295 | 76,527 |
Deferred | |||
Federal | (229,217) | 1,164 | (2,510) |
State | (27,970) | (481) | 68 |
Foreign | (231,214) | (13,429) | (15,761) |
Total deferred income tax expense | (488,401) | (12,746) | (18,203) |
(Benefit) provision for income taxes | $ (420,381) | $ 65,549 | $ 58,324 |
Income Taxes - Deferred Income
Income Taxes - Deferred Income Tax Assets (Liabilities) (Detail) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Income Tax Disclosure [Abstract] | ||
Tax credit carryforwards | $ 100,575 | $ 71,428 |
Research and development expenses | 27,996 | 41,862 |
Net operating loss carryforwards | 124,792 | 161,846 |
Interest expense | 90,671 | 108,069 |
Allowances and reserves | 102,634 | 92,372 |
Deferred compensation | 66,183 | 60,665 |
Postretirement benefits | 31,841 | 38,182 |
Intangible assets | 219,629 | 231,527 |
Lease liabilities | 70,712 | 74,600 |
Other | 46,382 | 42,058 |
Gross deferred income tax assets | 881,415 | 922,609 |
Intangible assets | (189,021) | (187,001) |
Right-of-use assets | (63,206) | (66,404) |
Other | (40,781) | (25,500) |
Gross deferred income tax liabilities | (293,008) | (278,905) |
Deferred income tax asset valuation allowances | (101,489) | (631,914) |
Net deferred income tax assets | $ 486,918 | $ 11,790 |
Income Taxes - Classification o
Income Taxes - Classification of Net Deferred Income Tax Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Balance Sheet Classification of Deferred Income Tax Assets and Liabilities [Line Items] | ||
Deferred income tax assets | $ 526,906 | $ 72,682 |
Net deferred income tax assets | 486,918 | 11,790 |
Other noncurrent assets | ||
Balance Sheet Classification of Deferred Income Tax Assets and Liabilities [Line Items] | ||
Deferred income tax assets | 526,906 | 72,682 |
Other noncurrent liabilities | ||
Balance Sheet Classification of Deferred Income Tax Assets and Liabilities [Line Items] | ||
Net deferred income tax (liabilities) | $ (39,988) | $ (60,892) |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Taxes [Line Items] | ||||
Loss carryforwards | $ 446,215 | |||
Tax credit carryforwards | 100,574 | |||
Release of valuation allowances on deferred tax assets | 540,803 | $ 0 | $ 13,489 | |
Deferred tax assets, valuation allowance | 101,489 | 631,914 | ||
Unrecognized tax benefits, end of period | 118,781 | 140,309 | 137,929 | $ 119,818 |
Increase (decrease) in recognized interest and penalties related to unrecognized tax benefits | 1,500 | 2,100 | $ 1,600 | |
Accrued interest and penalties related to unrecognized tax benefits | 21,200 | 22,700 | ||
Reasonably possible changes to unrecognized tax benefits related to settlement of tax audits and/or expiration of statutes of limitations within the next twelve months | 15,000 | |||
Deferred tax liability, undistributed foreign earnings | 19,000 | 12,000 | ||
Deferred tax liability, undistributed foreign earnings, period increase | 7,000 | |||
Undistributed earnings of foreign subsidiaries | 3,500,000 | |||
Undistributed foreign U.S GAAP retained earnings not taxed | 2,800,000 | |||
Federal and State Tax Authorities | ||||
Income Taxes [Line Items] | ||||
Deferred tax assets, valuation allowance | 18,000 | 319,000 | ||
Foreign Tax Authorities | ||||
Income Taxes [Line Items] | ||||
Deferred tax assets, valuation allowance | $ 83,000 | $ 313,000 |
Income Taxes - Expiration of Lo
Income Taxes - Expiration of Loss and Tax Credit Carryforwards (Detail) $ in Thousands | Dec. 31, 2021USD ($) |
Operating Loss and Tax Credit Carryforward [Line Items] | |
Loss Carryforward | $ 446,215 |
Tax Credit Carryforward | 100,574 |
2022–2026 | |
Operating Loss and Tax Credit Carryforward [Line Items] | |
Loss Carryforward | 39,420 |
Tax Credit Carryforward | 870 |
Thereafter | |
Operating Loss and Tax Credit Carryforward [Line Items] | |
Loss Carryforward | 154,475 |
Tax Credit Carryforward | 75,802 |
No expiration date | |
Operating Loss and Tax Credit Carryforward [Line Items] | |
Loss Carryforward | 252,320 |
Tax Credit Carryforward | $ 23,902 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Provision for Income Taxes at US Federal Statutory Rate to Provision in Statements of Operations (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Provision (benefit) at U.S. federal statutory rate | $ 101,347 | $ 41,008 | $ (33,240) |
Changes in valuation allowances | (540,803) | 14,576 | 8,752 |
Foreign earnings taxed at different rates, including foreign losses without benefit | 35,468 | 6,203 | 65,101 |
State and local taxes, net of U.S. federal (expense) benefit | (983) | (1,056) | 2,438 |
Adjustments to previously accrued taxes | (19,101) | 5,354 | 14,160 |
Change in indefinite reinvestment assertion | 7,000 | 0 | (2,700) |
Other | (3,309) | (536) | 3,813 |
(Benefit) provision for income taxes | $ (420,381) | $ 65,549 | $ 58,324 |
Income Taxes - Reconciliation_2
Income Taxes - Reconciliation of Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Unrecognized tax benefits at January 1 | $ 140,309 | $ 137,929 | $ 119,818 |
Increases for positions taken in current year | 5,113 | 5,969 | 3,836 |
Increases for positions taken in a prior year | 3,658 | 5,811 | 29,487 |
Decreases for positions taken in a prior year | (1,324) | (3,127) | (10,150) |
Decreases for settlements with taxing authorities | (2,852) | (3,410) | (1,982) |
Decreases for lapses in the applicable statute of limitations | (26,123) | (2,863) | (3,080) |
Unrecognized tax benefits at December 31 | $ 118,781 | $ 140,309 | $ 137,929 |
Supplemental Financial Inform_3
Supplemental Financial Information - Balance Sheet Accounts (Detail) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Inventories include the following: | ||
Finished goods | $ 600,784 | $ 418,464 |
Raw materials and work in process | 176,400 | 110,010 |
Inventories | 777,184 | 528,474 |
Accrued liabilities include the following: | ||
Advertising and promotion | 179,687 | 163,181 |
Incentive compensation | 140,769 | 126,601 |
Lease liability | $ 73,752 | $ 79,540 |
Supplemental Financial Inform_4
Supplemental Financial Information - Income Statement Accounts (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Currency Transaction Gains (Losses) [Line Items] | |||
Currency transaction losses, net | $ (18,436) | $ (9,476) | $ (4,990) |
Design and development | 189,372 | 189,494 | 197,226 |
Identifiable intangible asset amortization | 38,039 | 38,925 | 40,112 |
Bad debt expense, net | 1,202 | 9,149 | 967 |
Operating income | |||
Currency Transaction Gains (Losses) [Line Items] | |||
Currency transaction losses, net | (10,212) | (8,780) | (4,463) |
Other non-operating expense, net | |||
Currency Transaction Gains (Losses) [Line Items] | |||
Currency transaction losses, net | $ (8,224) | $ (696) | $ (527) |
Revision for Immaterial Misst_3
Revision for Immaterial Misstatements -Schedule of Error Corrections and Prior Period Adjustments (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Jan. 01, 2020 | Dec. 31, 2018 | Jan. 01, 2018 | |
Consolidated Balance Sheet | ||||||
Inventories | $ 777,184 | $ 528,474 | ||||
Total current assets | 2,874,529 | 2,496,691 | ||||
Total assets | 6,393,894 | 5,534,890 | ||||
Retained earnings | 2,456,597 | 1,553,610 | ||||
Total stockholders' equity | 1,568,849 | 610,144 | $ 508,564 | $ 688,989 | ||
Total liabilities and stockholders' equity | 6,393,894 | 5,534,890 | ||||
Consolidated Statement of Operations and Comprehensive Income | ||||||
Net sales | 5,457,741 | 4,588,433 | 4,504,571 | |||
Cost of sales | 2,831,079 | 2,345,330 | 2,527,230 | |||
Gross profit | 2,626,662 | 2,243,103 | 1,977,341 | |||
Advertising and promotion expenses | 545,674 | 525,803 | 550,217 | |||
Other selling and administrative expenses | 1,351,426 | 1,342,564 | 1,390,022 | |||
Operating income | 729,562 | 374,736 | 37,102 | |||
Income (loss) from before income taxes | 470,764 | 177,657 | (159,655) | |||
Provision for income taxes | (420,381) | 65,549 | 58,324 | |||
Net income (loss) | 902,987 | 123,579 | (218,750) | |||
Comprehensive income (loss) | $ 906,292 | $ 48,487 | $ (229,008) | |||
Net income (loss) per common share - basic (USD per share) | $ 2.58 | $ 0.36 | $ (0.63) | |||
Net income (loss) per common share - diluted (USD per share) | $ 2.53 | $ 0.35 | $ (0.63) | |||
Consolidated Statement of Cash Flows | ||||||
Net income (loss) | $ 902,987 | $ 123,579 | $ (218,750) | |||
Depreciation | 146,274 | 154,526 | 204,406 | |||
Asset impairments | 9,690 | 13,006 | 41,214 | |||
Deferred income taxes | 56,658 | (5,300) | (6,036) | |||
Inventories | (330,899) | (42,193) | (22,686) | |||
Prepaid expenses and other current assets | (26,533) | (20,039) | 49,071 | |||
Accounts payable, accrued liabilities, and income taxes payable | 207,143 | 17,403 | (54,652) | |||
Other, net | (59,684) | (5,530) | (32,343) | |||
Net cash flows provided by operating activities | 485,463 | 285,696 | 168,436 | |||
Purchases of tools, dies, and molds | (74,222) | (59,404) | (52,994) | |||
Purchases of other property, plant, and equipment | (77,131) | (59,389) | (50,817) | |||
Net cash flows used for investing activities | (105,097) | (132,104) | (101,635) | |||
Retained Earnings | ||||||
Consolidated Balance Sheet | ||||||
Total stockholders' equity | 2,456,597 | 1,553,610 | 1,430,031 | $ 1,648,781 | ||
Consolidated Statement of Operations and Comprehensive Income | ||||||
Net income (loss) | 902,987 | 123,579 | (218,750) | |||
Consolidated Statement of Cash Flows | ||||||
Net income (loss) | $ 902,987 | 123,579 | (218,750) | |||
As Previously Reported | ||||||
Consolidated Balance Sheet | ||||||
Inventories | 514,673 | |||||
Total current assets | 2,482,890 | |||||
Total assets | 5,521,089 | |||||
Retained earnings | 1,539,809 | |||||
Total stockholders' equity | 596,343 | |||||
Total liabilities and stockholders' equity | 5,521,089 | |||||
Consolidated Statement of Operations and Comprehensive Income | ||||||
Net sales | 4,583,660 | |||||
Cost of sales | 2,340,066 | 2,523,792 | ||||
Gross profit | 2,243,594 | 1,980,779 | ||||
Advertising and promotion expenses | 516,803 | 551,517 | ||||
Other selling and administrative expenses | 1,345,906 | |||||
Operating income | 380,885 | 39,240 | ||||
Income (loss) from before income taxes | 183,806 | (157,517) | ||||
Provision for income taxes | 68,649 | 55,224 | ||||
Net income (loss) | 126,628 | (213,512) | ||||
Comprehensive income (loss) | $ 51,536 | $ (223,770) | ||||
Net income (loss) per common share - basic (USD per share) | $ 0.36 | $ (0.62) | ||||
Net income (loss) per common share - diluted (USD per share) | $ 0.36 | $ (0.62) | ||||
Consolidated Statement of Cash Flows | ||||||
Net income (loss) | $ 126,628 | $ (213,512) | ||||
Depreciation | 160,973 | |||||
Asset impairments | 38,729 | |||||
Deferred income taxes | (2,200) | (9,136) | ||||
Inventories | (50,562) | (26,920) | ||||
Prepaid expenses and other current assets | 5,661 | 47,971 | ||||
Accounts payable, accrued liabilities, and income taxes payable | 11,209 | (58,679) | ||||
Other, net | (26,457) | (10,094) | ||||
Net cash flows provided by operating activities | 288,502 | 180,977 | ||||
Purchases of tools, dies, and molds | (50,509) | |||||
Purchases of other property, plant, and equipment | (62,195) | (65,843) | ||||
Net cash flows used for investing activities | (134,910) | (114,176) | ||||
Adjustments | ||||||
Consolidated Balance Sheet | ||||||
Inventories | 13,801 | |||||
Total current assets | 13,801 | |||||
Total assets | 13,801 | |||||
Retained earnings | 13,801 | |||||
Total stockholders' equity | 13,801 | |||||
Total liabilities and stockholders' equity | 13,801 | |||||
Consolidated Statement of Operations and Comprehensive Income | ||||||
Net sales | 4,773 | |||||
Cost of sales | 5,264 | 3,438 | ||||
Gross profit | (491) | (3,438) | ||||
Advertising and promotion expenses | 9,000 | (1,300) | ||||
Other selling and administrative expenses | (3,342) | |||||
Operating income | (6,149) | (2,138) | ||||
Income (loss) from before income taxes | (6,149) | (2,138) | ||||
Provision for income taxes | (3,100) | 3,100 | ||||
Net income (loss) | (3,049) | (5,238) | ||||
Comprehensive income (loss) | $ (3,049) | $ (5,238) | ||||
Net income (loss) per common share - basic (USD per share) | $ (0.01) | $ (0.01) | ||||
Net income (loss) per common share - diluted (USD per share) | $ (0.01) | $ (0.01) | ||||
Consolidated Statement of Cash Flows | ||||||
Net income (loss) | $ (3,049) | $ (5,238) | ||||
Depreciation | (6,447) | |||||
Asset impairments | 2,485 | |||||
Deferred income taxes | (3,100) | 3,100 | ||||
Inventories | 8,369 | 4,234 | ||||
Prepaid expenses and other current assets | (25,700) | 1,100 | ||||
Accounts payable, accrued liabilities, and income taxes payable | 6,194 | 4,027 | ||||
Other, net | 20,927 | (22,249) | ||||
Net cash flows provided by operating activities | (2,806) | (12,541) | ||||
Purchases of tools, dies, and molds | (2,485) | |||||
Purchases of other property, plant, and equipment | 2,806 | 15,026 | ||||
Net cash flows used for investing activities | $ 2,806 | $ 12,541 | ||||
Adjustments | Retained Earnings | ||||||
Consolidated Balance Sheet | ||||||
Total stockholders' equity | $ 16,900 | $ 25,100 | ||||
Adjustments | Tooling Misstatement | Retained Earnings | ||||||
Consolidated Balance Sheet | ||||||
Total stockholders' equity | 37,200 | |||||
Adjustments | Other Misstatements | Retained Earnings | ||||||
Consolidated Balance Sheet | ||||||
Total stockholders' equity | $ 12,100 |
Valuation and Qualifying Acco_2
Valuation and Qualifying Accounts and Allowances (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Allowance for Doubtful Accounts | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Year | $ 15,930 | $ 18,466 | $ 21,958 |
Additions Charged to Operations | 1,202 | 9,149 | 967 |
Net Deductions and Other | (6,464) | (11,685) | (4,459) |
Balance at End of Year | 10,668 | 15,930 | 18,466 |
Income Tax Valuation Allowances | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Year | 631,914 | 610,560 | 365,820 |
Additions Charged to Operations | 198,794 | 63,635 | 284,629 |
Net Deductions and Other | (729,219) | (42,281) | (39,889) |
Balance at End of Year | $ 101,489 | $ 631,914 | $ 610,560 |