Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2022 | Apr. 20, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document period end date | Mar. 31, 2022 | |
Document Transition Report | false | |
Entity File Number | 001-05647 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 95-1567322 | |
Entity Address, Address Line One | 333 Continental Blvd. | |
Entity Address, City or Town | El Segundo, | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 90245-5012 | |
City Area Code | 310 | |
Local Phone Number | 252-2000 | |
Title of 12(b) Security | Common stock, $1.00 per share | |
Trading Symbol | MAT | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Small Business | false | |
Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 352,493,840 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q1 | |
Entity Registrant Name | MATTEL INC /DE/ | |
Entity Central Index Key | 0000063276 | |
Current Fiscal Year End Date | --12-31 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 |
Current Assets | |||
Cash and equivalents | $ 536,631 | $ 731,362 | $ 615,238 |
Accounts receivable, net of allowances for credit losses of $13.1 million, $13.1 million and $10.7 million, respectively | 862,236 | 1,072,684 | 680,642 |
Inventories | 969,166 | 777,184 | 626,469 |
Prepaid expenses and other current assets | 267,666 | 293,299 | 187,186 |
Total current assets | 2,635,699 | 2,874,529 | 2,109,535 |
Noncurrent Assets | |||
Property, plant, and equipment, net | 451,981 | 455,966 | 451,001 |
Right-of-use assets, net | 339,681 | 325,484 | 294,819 |
Goodwill | 1,387,137 | 1,390,207 | 1,392,289 |
Deferred income tax assets | 515,004 | 526,906 | 71,157 |
Intangible assets, net | 463,752 | 476,858 | 509,844 |
Other noncurrent assets | 354,113 | 343,944 | 290,305 |
Total Assets | 6,147,367 | 6,393,894 | 5,118,950 |
Current Liabilities | |||
Short-term borrowings | 0 | 0 | 878 |
Current portion of long-term debt | 250,000 | 0 | 0 |
Accounts payable | 478,643 | 579,152 | 361,902 |
Accrued liabilities | 799,357 | 991,592 | 689,686 |
Income taxes payable | 16,710 | 27,509 | 30,106 |
Total current liabilities | 1,544,710 | 1,598,253 | 1,082,572 |
Noncurrent Liabilities | |||
Long-term debt | 2,322,150 | 2,570,992 | 2,837,732 |
Noncurrent lease liabilities | 296,387 | 283,626 | 255,670 |
Other noncurrent liabilities | 366,053 | 372,174 | 452,411 |
Total noncurrent liabilities | 2,984,590 | 3,226,792 | 3,545,813 |
Stockholders’ Equity | |||
Common stock $1.00 par value, 1.0 billion shares authorized; 441.4 million shares issued | 441,369 | 441,369 | 441,369 |
Additional paid-in capital | 1,804,761 | 1,832,144 | 1,836,958 |
Treasury stock at cost: 88.9 million shares, 92.6 million shares and 90.7 million shares, respectively | (2,176,904) | (2,219,990) | (2,267,961) |
Retained earnings | 2,475,250 | 2,456,597 | 1,441,225 |
Accumulated other comprehensive loss | (926,409) | (941,271) | (961,026) |
Total stockholders’ equity | 1,618,067 | 1,568,849 | 490,565 |
Total Liabilities and Stockholders’ Equity | $ 6,147,367 | $ 6,393,894 | $ 5,118,950 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 |
Statement of Financial Position [Abstract] | |||
Accounts receivable, allowances for credit losses | $ 13.1 | $ 10.7 | $ 13.1 |
Common stock, par value (USD per share) | $ 1 | $ 1 | $ 1 |
Common stock authorized (in shares) | 1,000,000,000 | 1,000,000,000 | 1,000,000,000 |
Common stock issued (in shares) | 441,400,000 | 441,400,000 | 441,400,000 |
Treasury stock (in shares) | 88,900,000 | 90,700,000 | 92,600,000 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Income Statement [Abstract] | ||
Net Sales | $ 1,041,301 | $ 874,192 |
Cost of sales | 558,406 | 462,355 |
Gross Profit | 482,895 | 411,837 |
Advertising and promotion expenses | 73,752 | 74,096 |
Other selling and administrative expenses | 329,076 | 303,870 |
Operating Income | 80,067 | 33,871 |
Interest expense | 33,049 | 130,482 |
Interest (income) | (1,202) | (820) |
Other non-operating expense (income), net | 9,112 | (1,086) |
Income (Loss) Before Income Taxes | 39,108 | (94,705) |
Provision for income taxes | 23,910 | 20,305 |
(Income) from equity method investments | (6,256) | (2,625) |
Net Income (Loss) | $ 21,454 | $ (112,385) |
Net income (loss) per common share - basic (USD per share) | $ 0.06 | $ (0.32) |
Weighted average number of common shares (in shares) | 352,215 | 349,041 |
Net income (loss) per common share - diluted (USD per share) | $ 0.06 | $ (0.32) |
Weighted average number of common and potential common shares (in shares) | 359,003 | 349,041 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | ||
Net Income (Loss) | $ 21,454 | $ (112,385) |
Other Comprehensive Income (Loss), Net of Tax | ||
Currency translation adjustments | 921 | (28,133) |
Employee benefit plan adjustments | 1,387 | 2,348 |
Available-for-sale security adjustments | 3,646 | 1,964 |
Net unrealized gains on derivative instruments: | ||
Unrealized holding gains | 7,464 | 10,101 |
Reclassification adjustments included in net income (loss) | (1,357) | (2,730) |
Net unrealized gains (losses) on derivative instruments | 6,107 | 7,371 |
Other Comprehensive Income (Loss), Net of Tax | 12,061 | (16,450) |
Comprehensive Income (Loss) | $ 33,515 | $ (128,835) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Cash Flows From Operating Activities: | ||
Net Income (Loss) | $ 21,454 | $ (112,385) |
Adjustments to reconcile net income (loss) to net cash flows used for operating activities: | ||
Depreciation | 35,888 | 36,533 |
Amortization | 9,325 | 9,514 |
Share-based compensation | 19,323 | 15,112 |
Bad debt expense | 3,221 | 237 |
Inventory obsolescence | 11,967 | 10,892 |
Deferred income taxes | 10,398 | 1,851 |
(Income) from equity method investments | (6,256) | (2,625) |
Loss on extinguishment of long-term borrowings | 0 | 83,213 |
(Gain) on sale of assets/business, net | (276) | (20,710) |
Changes in assets and liabilities: | ||
Accounts receivable | 209,044 | 338,305 |
Inventories | (203,245) | (137,936) |
Prepaid expenses and other current assets | (46,232) | (12,943) |
Accounts payable, accrued liabilities, and income taxes payable | (210,015) | (257,126) |
Other, net | 1,608 | 12,344 |
Net cash flows used for operating activities | (143,796) | (35,724) |
Cash Flows From Investing Activities: | ||
Purchases of tools, dies, and molds | (19,378) | (18,171) |
Purchases of other property, plant, and equipment | (16,653) | (17,628) |
Payments of foreign currency forward exchange contracts, net | (19,298) | (3,245) |
Proceeds from sale of assets/business | 346 | 39,861 |
Net cash flows (used for) provided by investing activities | (54,983) | 817 |
Cash Flows From Financing Activities: | ||
Payments of short-term borrowings, net | 0 | (91) |
Payments of long-term borrowings | 0 | (1,287,022) |
Proceeds from long-term borrowings, net | 0 | 1,188,000 |
Tax withholdings for share-based compensation | (17,555) | (6,966) |
Proceeds from stock option exercises | 13,935 | 1,110 |
Other, net | (593) | (736) |
Net cash flows used for financing activities | (4,213) | (105,705) |
Effect of Currency Exchange Rate Changes on Cash and Equivalents | 8,261 | (6,331) |
Decrease in Cash and Equivalents | (194,731) | (146,943) |
Cash and Equivalents at Beginning of Period | 731,362 | 762,181 |
Cash and Equivalents at End of Period | $ 536,631 | $ 615,238 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Treasury Stock | Retained Earnings | Accumulated Other Comprehensive Loss |
Beginning balance at Dec. 31, 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) | (112,385) | (112,385) | ||||
Other comprehensive income (loss), net of tax | (16,450) | (16,450) | ||||
Issuance of treasury stock for stock option exercises | 1,110 | (803) | 1,913 | |||
Issuance of treasury stock for restricted stock units vesting | (6,966) | (20,031) | 13,065 | |||
Share-based compensation | 15,112 | 15,112 | ||||
Ending balance at Mar. 31, 2021 | 490,565 | 441,369 | 1,836,958 | (2,267,961) | 1,441,225 | (961,026) |
Beginning balance at Dec. 31, 2021 | 1,568,849 | 441,369 | 1,832,144 | (2,219,990) | 2,456,597 | (941,271) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net Income (Loss) | 21,454 | 21,454 | ||||
Other comprehensive income (loss), net of tax | 12,061 | 12,061 | ||||
Issuance of treasury stock for stock option exercises | 13,935 | (3,183) | 17,118 | |||
Issuance of treasury stock for restricted stock units vesting | (17,555) | (43,523) | 25,968 | |||
Share-based compensation | 19,323 | 19,323 | ||||
Adjustment of accumulated other comprehensive loss to retained earnings for available-for-sale securities | 0 | (2,801) | 2,801 | |||
Ending balance at Mar. 31, 2022 | $ 1,618,067 | $ 441,369 | $ 1,804,761 | $ (2,176,904) | $ 2,475,250 | $ (926,409) |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited consolidated financial statements and related disclosures have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") applicable to interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. In the opinion of management, all adjustments, consisting of only those of a normal recurring nature, considered necessary for a fair statement of the financial position and interim results of Mattel, Inc. and its subsidiaries ("Mattel") as of and for the periods presented have been included. The December 31, 2021 balance sheet data was derived from audited financial statements; however, the accompanying interim notes to the consolidated financial statements do not include all of the annual disclosures required by GAAP. As Mattel's business is seasonal, results for interim periods are not necessarily indicative of those that may be expected for a full year. The financial information included herein should be read in conjunction with Mattel's consolidated financial statements and related notes in the 2021 Annual Report on Form 10-K. Certain prior period amounts have been reclassified to conform to the current period presentation. Revision of Previously Issued Consolidated Financial Statements During the quarter ended June 30, 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 quarter ended June 30, 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 and its unaudited consolidated financial statements as of and for the quarters and year-to-date periods ended March 31, 2020 and 2021, June 30, 2020, and September 30, 2020. 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. Further information regarding the misstatements and related revision is included in "Note 23 to the Consolidated Financial Statements — Revision for Immaterial Misstatements." Mattel presented the revision of its previously issued consolidated financial statements as of December 31, 2020 and for the year ended December 31, 2020 in connection with the filing of its 2021 Annual Report on Form 10-K. Mattel is presenting the revision of its previously issued unaudited consolidated financial statements as of and for the three months ended March 31, 2021 in the accompanying unaudited consolidated financial statements and related disclosures. |
Accounts Receivable
Accounts Receivable | 3 Months Ended |
Mar. 31, 2022 | |
Receivables [Abstract] | |
Accounts Receivable | Accounts Receivable Mattel estimates current expected credit losses based on collection history and management’s assessment of the current economic trends, business environment, customers’ financial condition, and accounts receivable aging that may impact the level of future credit losses. Accounts receivable are net of allowances for credit losses of $13.1 million, $13.1 million, and $10.7 million as of March 31, 2022, March 31, 2021, and December 31, 2021, respectively. |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2022 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories include the following: March 31, March 31, December 31, (In thousands) Raw materials and work in process $ 194,145 $ 119,417 $ 176,400 Finished goods 775,021 507,052 600,784 $ 969,166 $ 626,469 $ 777,184 |
Property, Plant, and Equipment
Property, Plant, and Equipment | 3 Months Ended |
Mar. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant, and Equipment | Property, Plant, and Equipment Property, plant, and equipment, net includes the following: March 31, March 31, December 31, (In thousands) Land $ 21,858 $ 22,029 $ 21,811 Buildings 330,519 307,955 317,114 Machinery and equipment 759,379 746,593 762,462 Software 348,888 343,905 348,062 Tools, dies, and molds 541,891 581,281 537,499 Leasehold improvements 116,558 118,228 115,844 Construction in progress 47,373 47,550 55,559 2,166,466 2,167,541 2,158,351 Less: accumulated depreciation (1,714,485) (1,716,540) (1,702,385) $ 451,981 $ 451,001 $ 455,966 During the three months ended March 31, 2022, Mattel announced the planned consolidation and integration of the American Girl corporate offices and distribution center, located in Middleton, Wisconsin, and committed to a plan to dispose of the land and buildings. These assets meet the held for sale criteria and are actively being marketed for sale. The net book value of the land and buildings is $9.4 million as of March 31, 2022, and is included within property, plant and equipment, net in the consolidated balance sheet within the American Girl segment. 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 o f $15.8 million. |
Goodwill and Other Intangibles
Goodwill and Other Intangibles | 3 Months Ended |
Mar. 31, 2022 | |
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. Mattel tests its goodwill for impairment annually in the third quarter and whenever events or changes in circumstances indicate that the carrying value of a reporting unit may exceed its fair value. The change in the carrying amount of goodwill by operating segment for the three months ended March 31, 2022 is shown below. Brand-specific goodwill held by foreign subsidiaries is allocated to the North America segment, thereby causing a foreign currency translation impact. December 31, Currency March 31, (In thousands) North America $ 731,789 $ (912) $ 730,877 International 450,847 (2,158) 448,689 American Girl 207,571 — 207,571 $ 1,390,207 $ (3,070) $ 1,387,137 Other Intangibles Identifiable intangibles were $463.8 million, net of accumulated amortization of $336.3 million, $509.8 million, net of accumulated amortization of $296.4 million, and $476.9 million, net of accumulated amortization of $327.0 million as of March 31, 2022, March 31, 2021, and December 31, 2021, respectively. Mattel's amortizable intangible assets primarily consist of trademarks. Mattel tests its amortizable intangible assets for impairment whenever events or changes in circumstances indicate that the carrying value of the asset may not be recoverable. Mattel's amortizable intangible assets were not impaired during the three months ended March 31, 2022 and 2021. |
Accrued Liabilities
Accrued Liabilities | 3 Months Ended |
Mar. 31, 2022 | |
Payables and Accruals [Abstract] | |
Accrued Liabilities | Accrued Liabilities Accrued liabilities include the following: March 31, March 31, December 31, (In thousands) Incentive compensation $ 157,403 $ 143,414 $ 140,769 Advertising and promotion 106,813 78,755 179,687 Current lease liabilities 74,198 73,155 73,752 |
Seasonal Financing
Seasonal Financing | 3 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
Seasonal Financing | 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 (in such capacity, the "Borrower") and guarantor thereunder, along with certain of the Borrower's domestic and foreign subsidiaries as additional borrowers and/or guarantors thereunder. On March 19, 2021, Mattel entered into the fourth amendment to the Credit Agreement, which amended certain terms, including, but not limited 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. Any borrowings under the senior secured revolving credit facilities are (i) limited by jurisdiction-specific borrowing base calculations based on the sum of specified percentages of eligible accounts receivable, eligible inventory and certain fixed assets and intellectual property, as applicable, minus the amount of any applicable reserves, and (ii) bear interest at a floating rate, which can be either, at the Borrower's option, (a) an adjusted LIBOR rate plus an applicable margin ranging from 1.25% to 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. As of March 31, 2022, Mattel had no borrowings outstanding under the senior secured revolving credit facilities and no foreign short-term borrowings outstanding. As of March 31, 2021, Mattel had no borrowings outstanding under the senior secured revolving credit facilities and $0.9 million of foreign short-term borrowings outstanding. As of December 31, 2021, Mattel had no borrowings outstanding under the senior secured revolving credit facilities and no foreign short-term borrowings outstanding. Outstanding letters of credit under the senior secured revolving credit facilities totaled approximately $10 million, $11 million, and $10 million as of March 31, 2022, March 31, 2021, and December 31, 2021, respectively. As of March 31, 2022, 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. |
Long-Term Debt
Long-Term Debt | 3 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt Long-term debt includes the following: March 31, March 31, December 31, (In thousands) 2010 Senior Notes due October 2040 $ 250,000 $ 250,000 $ 250,000 2011 Senior Notes due November 2041 300,000 300,000 300,000 2013 Senior Notes due March 2023 250,000 250,000 250,000 2017/2018 Senior Notes due December 2025 — 275,000 — 2019 Senior Notes due December 2027 600,000 600,000 600,000 2021 Senior Notes due April 2026 600,000 600,000 600,000 2021 Senior Notes due April 2029 600,000 600,000 600,000 Debt issuance costs and debt discount (27,850) (37,268) (29,008) $ 2,572,150 $ 2,837,732 $ 2,570,992 Less: current portion (250,000) — — Total long-term debt $ 2,322,150 $ 2,837,732 $ 2,570,992 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"). The 2026 Notes will mature on April 1, 2026 and the 2029 Notes will mature on April 1, 2029, unless earlier redeemed in accordance with their respective terms. The Notes 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. The net proceeds from the offering, together with cash on hand, were used to redeem $1.225 billion in aggregate principal amount of Mattel’s outstanding 6.750% Senior Notes due December 2025 (the "2025 Notes") and pay related prepayment premiums and transaction fees and expenses. As a result of the partial redemption of the 2025 Notes, Mattel incurred a loss on extinguishment of $83.2 million, comprised of $62.0 million of prepayment premium costs and a $21.2 million write-off of the unamortized debt issuance costs, which was recorded within interest expense in the consolidated statements of operations in the first quarter of 2021. On July 1, 2021, Mattel redeemed the remaining outstanding $275 million aggregate principal amount of the 2025 Notes. As a result of the redemption, Mattel incurred a loss on extinguishment of $18.5 million, comprised of $14.0 million of prepayment premium costs and a $4.5 million write-off of the unamortized debt issuance costs, which was recorded within interest expense in the consolidated statements of operations in the third quarter of 2021. |
Other Noncurrent Liabilities
Other Noncurrent Liabilities | 3 Months Ended |
Mar. 31, 2022 | |
Payables and Accruals [Abstract] | |
Other Noncurrent Liabilities | Other Noncurrent Liabilities Other noncurrent liabilities include the following: March 31, March 31, December 31, (In thousands) Benefit plan liabilities $ 172,694 $ 221,345 $ 179,857 Income taxes payable 68,082 72,252 62,915 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 3 Months Ended |
Mar. 31, 2022 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) The following tables present changes in the accumulated balances for each component of other comprehensive income (loss), including other comprehensive income (loss) and reclassifications out of accumulated other comprehensive income (loss) for each period: For the Three Months Ended March 31, 2022 Derivative Available-for-Sale Security Employee Benefit Plans Currency Total (In thousands) Accumulated Other Comprehensive Income (Loss), Net of Tax, as of December 31, 2021 $ 8,796 $ (6,447) $ (154,099) $ (789,521) $ (941,271) Other comprehensive income (loss) before reclassifications 7,464 — (315) 921 8,070 Amounts reclassified from accumulated other comprehensive income (loss) (1,357) 3,646 1,702 — 3,991 Net increase in other comprehensive income (loss) 6,107 3,646 1,387 921 12,061 Adjustment of accumulated other comprehensive loss to retained earnings — 2,801 — — 2,801 Accumulated Other Comprehensive Income (Loss), Net of Tax, as of March 31, 2022 $ 14,903 $ — $ (152,712) $ (788,600) $ (926,409) For the Three Months Ended March 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 10,101 1,964 (67) (28,133) (16,135) Amounts reclassified from accumulated other comprehensive income (loss) (2,730) — 2,415 — (315) Net increase (decrease) in other comprehensive income (loss) 7,371 1,964 2,348 (28,133) (16,450) Accumulated Other Comprehensive Loss, Net of Tax, as of March 31, 2021 $ (7,998) $ (5,558) $ (184,506) $ (762,964) $ (961,026) The following table presents the classification and amount of the reclassifications from accumulated other comprehensive income (loss) to the consolidated statements of operations: For the Three Months Ended March 31, March 31, Statements of Operations (In thousands) Derivative Instruments Gain on foreign currency forward exchange and other contracts $ 1,429 $ 2,838 Cost of sales Tax effect (72) (108) Provision for income taxes $ 1,357 $ 2,730 Net income (loss) Employee Benefit Plans Amortization of prior service credit (a) $ 469 $ 398 Other non-operating expense, net Recognized actuarial loss (a) (2,222) (2,783) Other non-operating expense, net $ (1,753) $ (2,385) Tax effect 51 (30) Provision for income taxes $ (1,702) $ (2,415) Net income (loss) (a) The amortization of prior service credit and recognized actuarial loss are included in the computation of net periodic benefit cost. Refer to "Note 15 to the Consolidated Financial Statements—Employee Benefit Plans" for additional information regarding Mattel's net periodic benefit cost. During the three months ended March 31, 2022, Mattel adjusted accumulated other comprehensive loss by $6.4 million in relation to previously recorded available-for-sale equity securities. This amount was adjusted in order to account for such securities in a manner consistent with ASC 321, Investments—Equity Securities. The adjustment includes $3.6 million of accumulated other comprehensive loss reclassified to other non-operating expense (income) in the statement of operations and $2.8 million reclassified to retained earnings in the statement of stockholders' equity. The adjustment, including tax effect, was immaterial to the financial statements. Currency Translation Adjustments Mattel's reporting currency is the U.S. dollar. The translation of its net investments in subsidiaries with non-U.S. dollar functional currencies subjects Mattel to the impact of foreign currency exchange rate fluctuations in its results of operations and financial position. Assets and liabilities of subsidiaries with non-U.S. dollar functional currencies are translated into U.S. dollars at fiscal period-end exchange rates. Income and expense items are translated at weighted-average exchange rates prevailing during the fiscal period. The resulting currency translation adjustments are recorded as a component of accumulated other comprehensive loss within stockholders' equity. Currency translation adjustments resulted in a net gain of $0.9 million for the three months ended March 31, 2022, primarily due to the strengthening of the Brazilian real, Mexican peso, and the Chilean peso against the U.S. dollar, offset by the weakening of the British pound sterling and the Russian ruble against the U.S. dollar. Currency translation adjustments resulted in a net loss of $28.1 million for the three months ended March 31, 2021, primarily due to the weakening of the Brazilian real, Mexican peso, Euro, and Turkish lira against the U.S. dollar. |
Foreign Currency Transaction Ex
Foreign Currency Transaction Exposure | 3 Months Ended |
Mar. 31, 2022 | |
Foreign Currency [Abstract] | |
Foreign Currency Transaction Exposure | Foreign Currency Transaction ExposureCurrency exchange rate fluctuations impact Mattel's results of operations and cash flows. Mattel's currency transaction exposures include gains and losses realized on unhedged inventory purchases and unhedged receivables and payables balances that are denominated in a currency other than the applicable functional currency. Gains and losses on unhedged inventory purchases and other transactions associated with operating activities are recorded in the components of operating income in the consolidated statements of operations. Gains and losses on unhedged intercompany loans and advances are recorded as a component of other non-operating expense (income), net in the consolidated statements of operations in the period in which the currency exchange rate changes. Transactions denominated in the Chinese yuan, Euro, Russian ruble, and Mexican peso, were the primary transactions that caused foreign currency transaction exposure for Mattel during the three months ended March 31, 2022. Currency transaction losses included in the consolidated statements of operations are as follows: For the Three Months Ended March 31, March 31, Statements of Operations Classification (In thousands) Currency transaction gains (losses) $ 462 $ (3,572) Operating income Currency transaction (losses) (6,444) (3,308) Other non-operating income/expense, net Currency transaction (losses), net $ (5,982) $ (6,880) |
Derivative Instruments
Derivative Instruments | 3 Months Ended |
Mar. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | Derivative InstrumentsMattel seeks to mitigate its exposure to foreign currency transaction risk by monitoring its foreign currency transaction exposure for the year and partially hedging such exposure using foreign currency forward exchange contracts. Mattel uses foreign currency forward exchange contracts as cash flow hedges primarily to hedge its purchases and sales of inventory denominated in foreign currencies. These contracts generally have maturity dates of up to 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 (loss) ("OCI"). Realized gains and losses for these contracts are recorded in the consolidated statements of operations in the period in which the inventory is sold to customers. Mattel 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 March 31, 2022, March 31, 2021, and December 31, 2021, Mattel held foreign currency forward exchange contracts and other commodity derivative instruments, with notional amounts of approximately $953 million, $952 million, and $925 million, respectively. The following tables present Mattel's derivative assets and liabilities: Derivative Assets Balance Sheet Classification Fair Value March 31, March 31, December 31, (In thousands) Derivatives designated as hedging instruments Foreign currency forward exchange and other contracts Prepaid expenses and other current assets $ 17,146 $ 4,534 $ 13,361 Foreign currency forward exchange and other contracts Other noncurrent assets 1,655 1,250 1,000 Total derivatives designated as hedging instruments $ 18,801 $ 5,784 $ 14,361 Derivatives not designated as hedging instruments Foreign currency forward exchange and other contracts Prepaid expenses and other current assets $ 14,096 $ 2,050 $ 3,714 $ 32,897 $ 7,834 $ 18,075 Derivative Liabilities Balance Sheet Classification Fair Value March 31, March 31, December 31, (In thousands) Derivatives designated as hedging instruments Foreign currency forward exchange and other contracts Accrued liabilities $ 2,345 $ 11,009 $ 2,301 Foreign currency forward exchange and other contracts Other noncurrent liabilities 720 808 280 Total derivatives designated as hedging instruments $ 3,065 $ 11,817 $ 2,581 Derivatives not designated as hedging instruments Foreign currency forward exchange and other contracts Accrued liabilities $ 454 $ 5,487 $ 1,229 $ 3,519 $ 17,304 $ 3,810 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 For the Three Months Ended March 31, March 31, Statements of (In thousands) Foreign currency forward exchange contracts: Amount of gains recognized in OCI $ 7,464 $ 10,101 Amount of gains reclassified from accumulated OCI to consolidated statements of operations 1,357 2,730 Cost of sales The net gains reclassified from accumulated other comprehensive loss to the consolidated statements of operations during the three months ended March 31, 2022 and 2021, respectively, were offset by the changes in cash flows associated with the underlying hedged transactions. Derivatives Not Designated As Hedging Instruments For the Three Months Ended March 31, March 31, Statements of (In thousands) Amount of net (losses) gains recognized in the Statements of Operations Foreign currency forward exchange and other contract (losses) $ (7,832) $ (8,636) Other non-operating (income)/expense, net Foreign currency forward exchange and other contract gains — 639 Cost of sales $ (7,832) $ (7,997) The net (losses) gains recognized in the consolidated statements of operations during the three months ended March 31, 2022 and March 31, 2021, respectively, were partially offset by foreign currency transaction gains and losses on the related derivative balances. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The following tables present information about Mattel's assets and liabilities measured and reported in the financial statements at fair value on a recurring basis as of March 31, 2022, March 31, 2021, and December 31, 2021 and indicate the fair value hierarchy of the valuation techniques utilized to determine such fair value. The three levels of the fair value hierarchy are as follows: • Level 1 – Valuations based on unadjusted quoted prices in active markets for identical assets or liabilities that the entity has the ability to access. • Level 2 – Valuations based on quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable data for substantially the full term of the assets or liabilities, either directly or indirectly. • Level 3 – Valuations based on inputs that are unobservable, supported by little or no market activity, and that are significant to the fair value of the assets or liabilities. Mattel's financial assets and liabilities include the following: March 31, 2022 Level 1 Level 2 Level 3 Total (In thousands) Assets: Foreign currency forward exchange contracts and other (a) $ — $ 32,897 $ — $ 32,897 Equity securities (b) 4,471 — — 4,471 Total assets $ 4,471 $ 32,897 $ — $ 37,368 Liabilities: Foreign currency forward exchange contracts and other (a) $ — $ 3,519 $ — $ 3,519 March 31, 2021 Level 1 Level 2 Level 3 Total (In thousands) Assets: Foreign currency forward exchange contracts and other (a) $ — $ 7,834 $ — $ 7,834 Equity securities (b) 6,232 — — 6,232 Total assets $ 6,232 $ 7,834 $ — $ 14,066 Liabilities: Foreign currency forward exchange contracts and other (a) $ — $ 17,304 $ — $ 17,304 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 Equity securities (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 (a) The fair value of the foreign currency forward exchange contracts and other commodity derivative instruments is based on dealer quotes of market forward rates and reflects the amount that Mattel would receive or pay at their maturity dates for contracts involving the same notional amounts, currencies, and maturity dates. (b) The fair value of the equity securities are based on the quoted price on an active public exchange. Other Financial Instruments Mattel's financial instruments include cash and equivalents, accounts receivable, accounts 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 $2.65 billion (compared to a carrying value of $2.60 billion) as of March 31, 2022, $3.05 billion (compared to a carrying value of $2.88 billion) as of March 31, 2021, and $2.82 billion (compared to a carrying value of $2.60 billion) as of December 31, 2021. The estimated fair values have been calculated based on broker quotes or rates for the same or similar instruments and are classified as Level 2 within the fair value hierarchy. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2022 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The following table reconciles basic and diluted earnings per common share for the three months ended March 31, 2022 and 2021: For the Three Months Ended March 31, March 31, (In thousands, except per share amounts) Basic: Net income (loss) $ 21,454 $ (112,385) Weighted-average number of common shares 352,215 349,041 Basic net income (loss) per common share $ 0.06 $ (0.32) Diluted: Net income (loss) $ 21,454 $ (112,385) Weighted-average number of common shares 352,215 349,041 Dilutive share-based awards (a) 6,788 — Weighted-average number of common and potential common shares 359,003 349,041 Diluted net income (loss) per common share $ 0.06 $ (0.32) (a) For the three months ended March 31, 2022, share-based awards totaling 11.1 million, were excluded from the calculation of diluted net income per common share because their effect would be antidilutive. Mattel was in a net loss position for the three months ended March 31, 2021, and, accordingly, all outstanding share-based awards were excluded from the calculation of diluted net loss per common share because their effect would be antidilutive. |
Employee Benefit Plans
Employee Benefit Plans | 3 Months Ended |
Mar. 31, 2022 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans Mattel and certain of its subsidiaries have qualified and nonqualified retirement plans covering substantially all employees of these companies, which are more fully described in Part II, Item 8 "Financial Statements and Supplementary Data—Note 4 to the Consolidated Financial Statements–Employee Benefit Plans" in the 2021 Annual Report on Form 10-K. A summary of the components of net periodic benefit cost for Mattel's defined benefit pension plans is as follows: For the Three Months Ended March 31, March 31, (In thousands) Service cost $ 1,047 $ 1,293 Interest cost 3,077 2,540 Expected return on plan assets (4,878) (4,627) Amortization of prior service cost 40 111 Recognized actuarial loss 2,247 2,785 $ 1,533 $ 2,102 A summary of the components of net periodic benefit cost for Mattel's postretirement benefit plans is as follows: For the Three Months Ended March 31, March 31, (In thousands) Interest cost $ 22 $ 19 Amortization of prior service credit (509) (509) Recognized actuarial gain (25) (2) $ (512) $ (492) Mattel's service cost component is recorded within operating income while other components of net periodic pension cost and postretirement benefit cost are recorded outside of operating income, presented in other non-operating expense, net. During the three months ended March 31, 2022, Mattel made cash contributions totaling approximately $1 million related to its defined benefit pension and postretirement benefit plans. During the remainder of 2022, Mattel expects to make additional cash contributions of approximately $5 million. |
Share-Based Payments
Share-Based Payments | 3 Months Ended |
Mar. 31, 2022 | |
Share-based Payment Arrangement [Abstract] | |
Share-Based Payments | Share-Based Payments Mattel has various stock compensation plans, which are more fully described in Part II, Item 8 "Financial Statements and Supplementary Data—Note 8 to the Consolidated Financial Statements—Share-Based Payments" in the 2021 Annual Report on Form 10-K. Under the Mattel, Inc. Amended and Restated 2010 Equity and Long-Term Compensation Plan, Mattel has the ability to grant nonqualified stock options, incentive stock options, stock appreciation rights, restricted stock, restricted stock units ("RSUs"), performance RSUs ("performance awards"), dividend equivalent rights, and shares of common stock to officers, employees, and other persons providing services to Mattel. Stock options are granted with exercise prices at the fair market value of Mattel's common stock on the applicable grant date and expire no later than ten years from the date of grant. Stock options, RSUs, and performance awards generally provide for vesting over, or at the end of, a period of three years from the date of grant. As of March 31, 2022, two long-term incentive programs were in place with the following performance cycles: (i) a January 1, 2020–December 31, 2022 performance cycle and (ii) a January 1, 2021–December 31, 2023 performance cycle. Compensation expense, included within other selling and administrative expenses in the consolidated statements of operations, related to stock options, RSUs, and performance awards is as follows: For the Three Months Ended March 31, March 31, (In thousands) Stock option compensation expense $ 2,319 $ 2,783 RSU compensation expense 6,851 6,357 Performance award compensation expense 10,153 5,972 $ 19,323 $ 15,112 As of March 31, 2022, total unrecognized compensation expense related to unvested share-based payments totaled $81.0 million and is expected to be recognized over a weighted-average period of 1.9 years. Mattel uses treasury shares purchased under its share repurchase program to satisfy stock option exercises and the vesting of RSUs and performance awards. Cash received for stock option exercises, net of taxes, was $13.9 million and $1.1 million for the three months ended March 31, 2022 and 2021, respectively. |
Other Selling and Administrativ
Other Selling and Administrative Expenses | 3 Months Ended |
Mar. 31, 2022 | |
Other Income and Expenses [Abstract] | |
Other Selling and Administrative Expenses | Other Selling and Administrative Expenses Other selling and administrative expenses include the following: For the Three Months Ended March 31, March 31, (In thousands) Design and development $ 42,635 $ 43,981 Identifiable intangible asset amortization 9,325 9,514 |
Restructuring Charges
Restructuring Charges | 3 Months Ended |
Mar. 31, 2022 | |
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 three months ended March 31, 2022 and 2021 respectively: For the Three Months Ended March 31, March 31, (In thousands) Cost of sales (a) $ 2,669 $ 1,932 Other selling and administrative expenses (b) 6,414 5,710 $ 9,083 $ 7,642 (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 21 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, 2021 Charges (a) Payments/Utilization Liability at March 31, 2022 (In thousands) Severance $ 12,411 $ 3,518 $ (3,901) $ 12,028 Other restructuring charges 2,834 5,565 (5,178) 3,221 $ 15,245 $ 9,083 $ (9,079) $ 15,249 Liability at December 31, 2020 Charges (a) Payments/Utilization Liability at March 31, 2021 (In thousands) Severance $ 5,294 $ 4,342 $ (1,405) $ 8,231 Other restructuring charges 30 3,300 (3,071) 259 $ 5,324 $ 7,642 $ (4,476) $ 8,490 (a) Other restructuring charges consist primarily of charges associated with the consolidation of manufacturing facilities and commercial and corporate functions. As of March 31, 2022, Mattel had recorded cumulative severance and other restructuring charges related to the Program of approximately $95 million, which included approximately $23 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 three months ended March 31, 2021, in connection 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. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Mattel's provision for income taxes was $23.9 million and $20.3 million for the three months ended March 31, 2022 and 2021, respectively. During the three months ended March 31, 2022, Mattel recognized a net discrete tax expense of $12.2 million, primarily related to (i) undistributed earnings of certain foreign subsidiaries and (ii) reassessments of prior years' tax liabilities. As a result of the establishment of a valuation allowance on U.S. deferred tax assets in 2017, there was no U.S. tax benefit provided for U.S. losses during the three months ended March 31, 2021. During the three months ended March 31, 2021, Mattel recognized a net discrete tax expense of $7.3 million, primarily related to income taxes recorded on a discrete basis in various jurisdictions and reassessments of prior years' tax liabilities. 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. For the three months ended March 31, 2021, Mattel had a valuation allowance on U.S. federal, state, and certain foreign deferred tax assets. During the second half of 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 resulted in recognition of $540.8 million of deferred tax assets as of December 31, 2021. Mattel’s valuation allowance position has remained unchanged as of March 31, 2022. In the normal course of business, Mattel is regularly audited by federal, state, and foreign tax authorities. Based on the current status of federal, state, and foreign audits, Mattel believes it is reasonably possible that in the next 12 months, the total unrecognized tax benefits could decrease by approximately $20.9 million related to the settlement of tax audits and/or the expiration of statutes of limitations. The ultimate settlement of any particular issue with the applicable taxing authority could have a material impact on Mattel's consolidated financial statements. During the three months ended March 31, 2022, Mattel has recorded on a discrete basis a deferred tax liability on certain foreign subsidiaries of approximately $7.7 million. For remaining undistributed foreign earnings, Mattel has not provided any deferred taxes with respect to items such as foreign withholding taxes, state income tax or foreign exchange gain or loss that would be due when cash is actually repatriated to the U.S. because those foreign earnings are considered indefinitely reinvested in the business or may be remitted substantially free of any additional local taxes. 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. |
Contingencies
Contingencies | 3 Months Ended |
Mar. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Contingencies 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 15 th 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 March 31, 2022, Mattel assessed its probable loss related to the Yellowstone matter and has accrued a reserve, which is 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 2022 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. In February 2022, the Mattel Defendants paid $86 million in settlement of the claims against them, which was 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. 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; and 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). On March 11, 2022, the parties to the above actions engaged in a private mediation, after which defendants and certain of the plaintiffs reached an agreement in principle to settle the derivative claims asserted in certain of the actions. Any settlement remains subject to court approval. 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. Mattel believes that the estimated loss, if any, will be immaterial. |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2022 | |
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 U.S. and Canada; (ii) International; and (iii) American Girl. The North America and International segments sell products across categories, although some products are developed and adapted for particular international markets. The following tables present information 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. The prior period presentation of operating income (loss) by segment and assets by segment has been conformed to the current period's presentation. 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 Three Months Ended March 31, March 31, (In thousands) Net Sales by Segment North America $ 602,118 $ 479,660 International 403,842 349,354 American Girl 35,341 45,178 Net sales $ 1,041,301 $ 874,192 For the Three Months Ended March 31, March 31, (In thousands) Operating Income (Loss) by Segment (a) North America $ 171,413 $ 124,851 International 46,833 36,259 American Girl (17,227) (9,565) 201,019 151,545 Corporate and other expense (b) (120,952) (117,674) Operating Income 80,067 33,871 Interest expense 33,049 130,482 Interest (income) (1,202) (820) Other non-operating expense (income), net 9,112 (1,086) Income (Loss) Before Income Taxes $ 39,108 $ (94,705) (a) Segment operating income (loss) included severance and restructuring expenses of $2.7 million and $1.9 million for the three months ended March 31, 2022 and 2021, respectively, which were allocated to the North America and International segments. (b) Corporate and other expense included severance and restructuring charges of $6.8 million and $5.7 million for the three months ended March 31, 2022 and 2021 respectively. Corporate and other expense also included expenses related to inclined sleeper product recall litigation of $0.6 million and $5.3 million for the three months ended March 31, 2022 and 2021 respectively, and incentive and share-based compensation for all periods presented. Segment assets are comprised of accounts receivable and inventories, net of applicable allowances and reserves. March 31, March 31, December 31, (In thousands) Assets by Segment North America $ 819,929 $ 587,193 $ 784,836 International 711,586 526,005 798,833 American Girl 58,040 46,814 52,168 1,589,555 1,160,012 1,635,837 Corporate and other 241,847 147,099 214,031 Accounts receivable and inventories, net $ 1,831,402 $ 1,307,111 $ 1,849,868 Geographic Information The table below presents information by geographic area. Net sales are attributed to countries based on location of the customer. For the Three Months Ended March 31, March 31, (In thousands) Net Sales by Geographic Area North America $ 637,459 $ 524,838 International EMEA 277,742 238,169 Latin America 71,974 56,278 Asia Pacific 54,126 54,907 Total International 403,842 349,354 Net sales $ 1,041,301 $ 874,192 |
New Accounting Pronouncements
New Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2022 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
New Accounting Pronouncements | New Accounting Pronouncements Accounting Pronouncements Recently Adopted In November 2021, the FASB issued ASU 2021-10, Government Assistance (Topic 832): Disclosure by Business Entities about Government Assistance, which requires business entities to disclose information about certain government assistance by applying the grant or contribution model. Mattel adopted the guidance on January 1, 2022. The adoption of the new accounting standard does not currently 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 London Interbank Offered Rate 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. |
Revision for Immaterial Misstat
Revision for Immaterial Misstatements | 3 Months Ended |
Mar. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [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 connection 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 March 31, 2021 As Previously Reported Adjustments As Revised (In thousands) Consolidated Balance Sheet Inventories $ 609,835 $ 16,634 $ 626,469 Total current assets $ 2,092,901 $ 16,634 $ 2,109,535 Total assets $ 5,102,316 $ 16,634 $ 5,118,950 Retained earnings $ 1,424,591 $ 16,634 $ 1,441,225 Total stockholders' equity $ 473,931 $ 16,634 $ 490,565 Total liabilities and stockholders' equity $ 5,102,316 $ 16,634 $ 5,118,950 Three Months Ended March 31, 2021 As Previously Reported Adjustments As Revised (In thousands, except per share amounts) Consolidated Statement of Operations and Comprehensive Loss Cost of sales $ 465,188 $ (2,833) $ 462,355 Gross profit $ 409,004 $ 2,833 $ 411,837 Operating income $ 31,038 $ 2,833 $ 33,871 Loss before income taxes $ (97,538) $ 2,833 $ (94,705) Net loss $ (115,218) $ 2,833 $ (112,385) Comprehensive loss $ (131,668) $ 2,833 $ (128,835) Net loss per common share - basic $ (0.33) $ 0.01 $ (0.32) Net loss per common share - diluted $ (0.33) $ 0.01 $ (0.32) Three Months Ended March 31, 2021 As Previously Reported Adjustments As Revised (In thousands) Consolidated Statement of Cash Flows Net loss $ (115,218) $ 2,833 $ (112,385) Changes in assets and liabilities: Inventories $ (135,103) $ (2,833) $ (137,936) Accounts payable, accrued liabilities and income taxes payable $ (262,635) $ 5,509 $ (257,126) Net cash flows used for operating activities $ (41,233) $ 5,509 $ (35,724) Purchases of other property, plant, and equipment $ (12,119) $ (5,509) $ (17,628) Net cash flows provided by investing activities $ 6,326 $ (5,509) $ 817 |
New Accounting Pronouncements (
New Accounting Pronouncements (Policies) | 3 Months Ended |
Mar. 31, 2022 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
Basis of Presentation | The accompanying unaudited consolidated financial statements and related disclosures have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") applicable to interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. In the opinion of management, all adjustments, consisting of only those of a normal recurring nature, considered necessary for a fair statement of the financial position and interim results of Mattel, Inc. and its subsidiaries ("Mattel") as of and for the periods presented have been included. |
Revision of Previously Issued Consolidated Financial Statements | During the quarter ended June 30, 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 quarter ended June 30, 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 and its unaudited consolidated financial statements as of and for the quarters and year-to-date periods ended March 31, 2020 and 2021, June 30, 2020, and September 30, 2020. 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. Further information regarding the misstatements and related revision is included in "Note 23 to the Consolidated Financial Statements — Revision for Immaterial Misstatements." Mattel presented the revision of its previously issued consolidated financial statements as of December 31, 2020 and for the year ended December 31, 2020 in connection with the filing of its 2021 Annual Report on Form 10-K. Mattel is presenting the revision of its previously issued unaudited consolidated financial statements as of and for the three months ended March 31, 2021 in the accompanying unaudited consolidated financial statements and related disclosures. |
Accounting Pronouncements Not Yet Adopted | Accounting Pronouncements Recently Adopted In November 2021, the FASB issued ASU 2021-10, Government Assistance (Topic 832): Disclosure by Business Entities about Government Assistance, which requires business entities to disclose information about certain government assistance by applying the grant or contribution model. Mattel adopted the guidance on January 1, 2022. The adoption of the new accounting standard does not currently 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 London Interbank Offered Rate 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. |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories include the following: March 31, March 31, December 31, (In thousands) Raw materials and work in process $ 194,145 $ 119,417 $ 176,400 Finished goods 775,021 507,052 600,784 $ 969,166 $ 626,469 $ 777,184 |
Property, Plant, and Equipment
Property, Plant, and Equipment (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant, and Equipment | Property, plant, and equipment, net includes the following: March 31, March 31, December 31, (In thousands) Land $ 21,858 $ 22,029 $ 21,811 Buildings 330,519 307,955 317,114 Machinery and equipment 759,379 746,593 762,462 Software 348,888 343,905 348,062 Tools, dies, and molds 541,891 581,281 537,499 Leasehold improvements 116,558 118,228 115,844 Construction in progress 47,373 47,550 55,559 2,166,466 2,167,541 2,158,351 Less: accumulated depreciation (1,714,485) (1,716,540) (1,702,385) $ 451,981 $ 451,001 $ 455,966 |
Goodwill and Other Intangibles
Goodwill and Other Intangibles (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | December 31, Currency March 31, (In thousands) North America $ 731,789 $ (912) $ 730,877 International 450,847 (2,158) 448,689 American Girl 207,571 — 207,571 $ 1,390,207 $ (3,070) $ 1,387,137 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Liabilities | Accrued liabilities include the following: March 31, March 31, December 31, (In thousands) Incentive compensation $ 157,403 $ 143,414 $ 140,769 Advertising and promotion 106,813 78,755 179,687 Current lease liabilities 74,198 73,155 73,752 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt | Long-term debt includes the following: March 31, March 31, December 31, (In thousands) 2010 Senior Notes due October 2040 $ 250,000 $ 250,000 $ 250,000 2011 Senior Notes due November 2041 300,000 300,000 300,000 2013 Senior Notes due March 2023 250,000 250,000 250,000 2017/2018 Senior Notes due December 2025 — 275,000 — 2019 Senior Notes due December 2027 600,000 600,000 600,000 2021 Senior Notes due April 2026 600,000 600,000 600,000 2021 Senior Notes due April 2029 600,000 600,000 600,000 Debt issuance costs and debt discount (27,850) (37,268) (29,008) $ 2,572,150 $ 2,837,732 $ 2,570,992 Less: current portion (250,000) — — Total long-term debt $ 2,322,150 $ 2,837,732 $ 2,570,992 |
Other Noncurrent Liabilities (T
Other Noncurrent Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Payables and Accruals [Abstract] | |
Schedule of Other Noncurrent Liabilities | Other noncurrent liabilities include the following: March 31, March 31, December 31, (In thousands) Benefit plan liabilities $ 172,694 $ 221,345 $ 179,857 Income taxes payable 68,082 72,252 62,915 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Equity [Abstract] | |
Schedule of Changes in Accumulated Other Comprehensive Income (Loss) | The following tables present changes in the accumulated balances for each component of other comprehensive income (loss), including other comprehensive income (loss) and reclassifications out of accumulated other comprehensive income (loss) for each period: For the Three Months Ended March 31, 2022 Derivative Available-for-Sale Security Employee Benefit Plans Currency Total (In thousands) Accumulated Other Comprehensive Income (Loss), Net of Tax, as of December 31, 2021 $ 8,796 $ (6,447) $ (154,099) $ (789,521) $ (941,271) Other comprehensive income (loss) before reclassifications 7,464 — (315) 921 8,070 Amounts reclassified from accumulated other comprehensive income (loss) (1,357) 3,646 1,702 — 3,991 Net increase in other comprehensive income (loss) 6,107 3,646 1,387 921 12,061 Adjustment of accumulated other comprehensive loss to retained earnings — 2,801 — — 2,801 Accumulated Other Comprehensive Income (Loss), Net of Tax, as of March 31, 2022 $ 14,903 $ — $ (152,712) $ (788,600) $ (926,409) For the Three Months Ended March 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 10,101 1,964 (67) (28,133) (16,135) Amounts reclassified from accumulated other comprehensive income (loss) (2,730) — 2,415 — (315) Net increase (decrease) in other comprehensive income (loss) 7,371 1,964 2,348 (28,133) (16,450) Accumulated Other Comprehensive Loss, Net of Tax, as of March 31, 2021 $ (7,998) $ (5,558) $ (184,506) $ (762,964) $ (961,026) |
Schedule of Consolidated Statement of Operations Line Items Affected by Reclassifications from Accumulated Other Comprehensive Income (Loss) | The following table presents the classification and amount of the reclassifications from accumulated other comprehensive income (loss) to the consolidated statements of operations: For the Three Months Ended March 31, March 31, Statements of Operations (In thousands) Derivative Instruments Gain on foreign currency forward exchange and other contracts $ 1,429 $ 2,838 Cost of sales Tax effect (72) (108) Provision for income taxes $ 1,357 $ 2,730 Net income (loss) Employee Benefit Plans Amortization of prior service credit (a) $ 469 $ 398 Other non-operating expense, net Recognized actuarial loss (a) (2,222) (2,783) Other non-operating expense, net $ (1,753) $ (2,385) Tax effect 51 (30) Provision for income taxes $ (1,702) $ (2,415) Net income (loss) (a) The amortization of prior service credit and recognized actuarial loss are included in the computation of net periodic benefit cost. Refer to "Note 15 to the Consolidated Financial Statements—Employee Benefit Plans" for additional information regarding Mattel's net periodic benefit cost. |
Foreign Currency Transaction _2
Foreign Currency Transaction Exposure (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Foreign Currency [Abstract] | |
Schedule of Currency Transaction Exposure | Currency transaction losses included in the consolidated statements of operations are as follows: For the Three Months Ended March 31, March 31, Statements of Operations Classification (In thousands) Currency transaction gains (losses) $ 462 $ (3,572) Operating income Currency transaction (losses) (6,444) (3,308) Other non-operating income/expense, net Currency transaction (losses), net $ (5,982) $ (6,880) |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
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 March 31, March 31, December 31, (In thousands) Derivatives designated as hedging instruments Foreign currency forward exchange and other contracts Prepaid expenses and other current assets $ 17,146 $ 4,534 $ 13,361 Foreign currency forward exchange and other contracts Other noncurrent assets 1,655 1,250 1,000 Total derivatives designated as hedging instruments $ 18,801 $ 5,784 $ 14,361 Derivatives not designated as hedging instruments Foreign currency forward exchange and other contracts Prepaid expenses and other current assets $ 14,096 $ 2,050 $ 3,714 $ 32,897 $ 7,834 $ 18,075 Derivative Liabilities Balance Sheet Classification Fair Value March 31, March 31, December 31, (In thousands) Derivatives designated as hedging instruments Foreign currency forward exchange and other contracts Accrued liabilities $ 2,345 $ 11,009 $ 2,301 Foreign currency forward exchange and other contracts Other noncurrent liabilities 720 808 280 Total derivatives designated as hedging instruments $ 3,065 $ 11,817 $ 2,581 Derivatives not designated as hedging instruments Foreign currency forward exchange and other contracts Accrued liabilities $ 454 $ 5,487 $ 1,229 $ 3,519 $ 17,304 $ 3,810 |
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 For the Three Months Ended March 31, March 31, Statements of (In thousands) Foreign currency forward exchange contracts: Amount of gains recognized in OCI $ 7,464 $ 10,101 Amount of gains reclassified from accumulated OCI to consolidated statements of operations 1,357 2,730 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 For the Three Months Ended March 31, March 31, Statements of (In thousands) Amount of net (losses) gains recognized in the Statements of Operations Foreign currency forward exchange and other contract (losses) $ (7,832) $ (8,636) Other non-operating (income)/expense, net Foreign currency forward exchange and other contract gains — 639 Cost of sales $ (7,832) $ (7,997) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of Financial Assets and Liabilities | Mattel's financial assets and liabilities include the following: March 31, 2022 Level 1 Level 2 Level 3 Total (In thousands) Assets: Foreign currency forward exchange contracts and other (a) $ — $ 32,897 $ — $ 32,897 Equity securities (b) 4,471 — — 4,471 Total assets $ 4,471 $ 32,897 $ — $ 37,368 Liabilities: Foreign currency forward exchange contracts and other (a) $ — $ 3,519 $ — $ 3,519 March 31, 2021 Level 1 Level 2 Level 3 Total (In thousands) Assets: Foreign currency forward exchange contracts and other (a) $ — $ 7,834 $ — $ 7,834 Equity securities (b) 6,232 — — 6,232 Total assets $ 6,232 $ 7,834 $ — $ 14,066 Liabilities: Foreign currency forward exchange contracts and other (a) $ — $ 17,304 $ — $ 17,304 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 Equity securities (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 (a) The fair value of the foreign currency forward exchange contracts and other commodity derivative instruments is based on dealer quotes of market forward rates and reflects the amount that Mattel would receive or pay at their maturity dates for contracts involving the same notional amounts, currencies, and maturity dates. (b) The fair value of the equity securities are based on the quoted price on an active public exchange. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share | The following table reconciles basic and diluted earnings per common share for the three months ended March 31, 2022 and 2021: For the Three Months Ended March 31, March 31, (In thousands, except per share amounts) Basic: Net income (loss) $ 21,454 $ (112,385) Weighted-average number of common shares 352,215 349,041 Basic net income (loss) per common share $ 0.06 $ (0.32) Diluted: Net income (loss) $ 21,454 $ (112,385) Weighted-average number of common shares 352,215 349,041 Dilutive share-based awards (a) 6,788 — Weighted-average number of common and potential common shares 359,003 349,041 Diluted net income (loss) per common share $ 0.06 $ (0.32) (a) For the three months ended March 31, 2022, share-based awards totaling 11.1 million, were excluded from the calculation of diluted net income per common share because their effect would be antidilutive. Mattel was in a net loss position for the three months ended March 31, 2021, and, accordingly, all outstanding share-based awards were excluded from the calculation of diluted net loss per common share because their effect would be antidilutive. |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Retirement Benefits [Abstract] | |
Schedule of Components of Net Periodic Benefit Cost | A summary of the components of net periodic benefit cost for Mattel's defined benefit pension plans is as follows: For the Three Months Ended March 31, March 31, (In thousands) Service cost $ 1,047 $ 1,293 Interest cost 3,077 2,540 Expected return on plan assets (4,878) (4,627) Amortization of prior service cost 40 111 Recognized actuarial loss 2,247 2,785 $ 1,533 $ 2,102 A summary of the components of net periodic benefit cost for Mattel's postretirement benefit plans is as follows: For the Three Months Ended March 31, March 31, (In thousands) Interest cost $ 22 $ 19 Amortization of prior service credit (509) (509) Recognized actuarial gain (25) (2) $ (512) $ (492) |
Share-Based Payments (Tables)
Share-Based Payments (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Stock Option and Restricted Stock Unit Compensation Expense | Compensation expense, included within other selling and administrative expenses in the consolidated statements of operations, related to stock options, RSUs, and performance awards is as follows: For the Three Months Ended March 31, March 31, (In thousands) Stock option compensation expense $ 2,319 $ 2,783 RSU compensation expense 6,851 6,357 Performance award compensation expense 10,153 5,972 $ 19,323 $ 15,112 |
Other Selling and Administrat_2
Other Selling and Administrative Expenses (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Other Income and Expenses [Abstract] | |
Schedule of Other Selling and Administrative Expenses | Other selling and administrative expenses include the following: For the Three Months Ended March 31, March 31, (In thousands) Design and development $ 42,635 $ 43,981 Identifiable intangible asset amortization 9,325 9,514 |
Restructuring Charges (Tables)
Restructuring Charges (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Charges | For the Three Months Ended March 31, March 31, (In thousands) Cost of sales (a) $ 2,669 $ 1,932 Other selling and administrative expenses (b) 6,414 5,710 $ 9,083 $ 7,642 (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 21 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, 2021 Charges (a) Payments/Utilization Liability at March 31, 2022 (In thousands) Severance $ 12,411 $ 3,518 $ (3,901) $ 12,028 Other restructuring charges 2,834 5,565 (5,178) 3,221 $ 15,245 $ 9,083 $ (9,079) $ 15,249 Liability at December 31, 2020 Charges (a) Payments/Utilization Liability at March 31, 2021 (In thousands) Severance $ 5,294 $ 4,342 $ (1,405) $ 8,231 Other restructuring charges 30 3,300 (3,071) 259 $ 5,324 $ 7,642 $ (4,476) $ 8,490 (a) Other restructuring charges consist primarily of charges associated with the consolidation of manufacturing facilities and commercial and corporate functions. |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Segment Reporting [Abstract] | |
Schedule of Revenues from Segment to Consolidated | 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. The prior period presentation of operating income (loss) by segment and assets by segment has been conformed to the current period's presentation. 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 Three Months Ended March 31, March 31, (In thousands) Net Sales by Segment North America $ 602,118 $ 479,660 International 403,842 349,354 American Girl 35,341 45,178 Net sales $ 1,041,301 $ 874,192 For the Three Months Ended March 31, March 31, (In thousands) Operating Income (Loss) by Segment (a) North America $ 171,413 $ 124,851 International 46,833 36,259 American Girl (17,227) (9,565) 201,019 151,545 Corporate and other expense (b) (120,952) (117,674) Operating Income 80,067 33,871 Interest expense 33,049 130,482 Interest (income) (1,202) (820) Other non-operating expense (income), net 9,112 (1,086) Income (Loss) Before Income Taxes $ 39,108 $ (94,705) (a) Segment operating income (loss) included severance and restructuring expenses of $2.7 million and $1.9 million for the three months ended March 31, 2022 and 2021, respectively, which were allocated to the North America and International segments. (b) Corporate and other expense included severance and restructuring charges of $6.8 million and $5.7 million for the three months ended March 31, 2022 and 2021 respectively. Corporate and other expense also included expenses related to inclined sleeper product recall litigation of $0.6 million and $5.3 million for the three months ended March 31, 2022 and 2021 respectively, and incentive and share-based compensation for all periods presented. |
Schedule of Segment Assets | Segment assets are comprised of accounts receivable and inventories, net of applicable allowances and reserves. March 31, March 31, December 31, (In thousands) Assets by Segment North America $ 819,929 $ 587,193 $ 784,836 International 711,586 526,005 798,833 American Girl 58,040 46,814 52,168 1,589,555 1,160,012 1,635,837 Corporate and other 241,847 147,099 214,031 Accounts receivable and inventories, net $ 1,831,402 $ 1,307,111 $ 1,849,868 |
Schedule of Revenues by Geographic Area | The table below presents information by geographic area. Net sales are attributed to countries based on location of the customer. For the Three Months Ended March 31, March 31, (In thousands) Net Sales by Geographic Area North America $ 637,459 $ 524,838 International EMEA 277,742 238,169 Latin America 71,974 56,278 Asia Pacific 54,126 54,907 Total International 403,842 349,354 Net sales $ 1,041,301 $ 874,192 |
Revision for Immaterial Misst_2
Revision for Immaterial Misstatements (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Error Corrections and Prior Period Adjustments | As of March 31, 2021 As Previously Reported Adjustments As Revised (In thousands) Consolidated Balance Sheet Inventories $ 609,835 $ 16,634 $ 626,469 Total current assets $ 2,092,901 $ 16,634 $ 2,109,535 Total assets $ 5,102,316 $ 16,634 $ 5,118,950 Retained earnings $ 1,424,591 $ 16,634 $ 1,441,225 Total stockholders' equity $ 473,931 $ 16,634 $ 490,565 Total liabilities and stockholders' equity $ 5,102,316 $ 16,634 $ 5,118,950 Three Months Ended March 31, 2021 As Previously Reported Adjustments As Revised (In thousands, except per share amounts) Consolidated Statement of Operations and Comprehensive Loss Cost of sales $ 465,188 $ (2,833) $ 462,355 Gross profit $ 409,004 $ 2,833 $ 411,837 Operating income $ 31,038 $ 2,833 $ 33,871 Loss before income taxes $ (97,538) $ 2,833 $ (94,705) Net loss $ (115,218) $ 2,833 $ (112,385) Comprehensive loss $ (131,668) $ 2,833 $ (128,835) Net loss per common share - basic $ (0.33) $ 0.01 $ (0.32) Net loss per common share - diluted $ (0.33) $ 0.01 $ (0.32) Three Months Ended March 31, 2021 As Previously Reported Adjustments As Revised (In thousands) Consolidated Statement of Cash Flows Net loss $ (115,218) $ 2,833 $ (112,385) Changes in assets and liabilities: Inventories $ (135,103) $ (2,833) $ (137,936) Accounts payable, accrued liabilities and income taxes payable $ (262,635) $ 5,509 $ (257,126) Net cash flows used for operating activities $ (41,233) $ 5,509 $ (35,724) Purchases of other property, plant, and equipment $ (12,119) $ (5,509) $ (17,628) Net cash flows provided by investing activities $ 6,326 $ (5,509) $ 817 |
Accounts Receivable (Details)
Accounts Receivable (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 |
Receivables [Abstract] | |||
Accounts receivable, allowances for credit losses | $ 13.1 | $ 10.7 | $ 13.1 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 |
Inventory Disclosure [Abstract] | |||
Raw materials and work in process | $ 194,145 | $ 176,400 | $ 119,417 |
Finished goods | 775,021 | 600,784 | 507,052 |
Inventories | $ 969,166 | $ 777,184 | $ 626,469 |
Property, Plant, and Equipmen_2
Property, Plant, and Equipment (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2022 | Dec. 31, 2021 | |
Property, Plant and Equipment [Line Items] | |||
Property, plant, and equipment, gross | $ 2,167,541 | $ 2,166,466 | $ 2,158,351 |
Less: accumulated depreciation | (1,716,540) | (1,714,485) | (1,702,385) |
Property, plant, and equipment, net | 451,001 | 451,981 | 455,966 |
Land | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant, and equipment, gross | 22,029 | 21,858 | 21,811 |
Buildings | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant, and equipment, gross | 307,955 | 330,519 | 317,114 |
Machinery and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant, and equipment, gross | 746,593 | 759,379 | 762,462 |
Software | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant, and equipment, gross | 343,905 | 348,888 | 348,062 |
Tools, dies, and molds | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant, and equipment, gross | 581,281 | 541,891 | 537,499 |
Leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant, and equipment, gross | 118,228 | 116,558 | 115,844 |
Construction in progress | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant, and equipment, gross | 47,550 | 47,373 | $ 55,559 |
Land and building | Mexico | |||
Property, Plant and Equipment [Line Items] | |||
Gain on disposal of property, plant, and equipment | $ 15,800 | ||
American Girl Headquarters Building | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant, and equipment, net | $ 9,400 |
Goodwill and Other Intangible_2
Goodwill and Other Intangibles - Goodwill (Detail) $ in Thousands | 3 Months Ended |
Mar. 31, 2022USD ($) | |
Goodwill [Roll Forward] | |
Balance at beginning of period | $ 1,390,207 |
Currency Exchange Rate Impact | (3,070) |
Balance at end of period | 1,387,137 |
North America | |
Goodwill [Roll Forward] | |
Balance at beginning of period | 731,789 |
Currency Exchange Rate Impact | (912) |
Balance at end of period | 730,877 |
International | |
Goodwill [Roll Forward] | |
Balance at beginning of period | 450,847 |
Currency Exchange Rate Impact | (2,158) |
Balance at end of period | 448,689 |
American Girl | |
Goodwill [Roll Forward] | |
Balance at beginning of period | 207,571 |
Currency Exchange Rate Impact | 0 |
Balance at end of period | $ 207,571 |
Goodwill and Other Intangible_3
Goodwill and Other Intangibles - Narrative (Detail) - USD ($) | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Intangible assets, net | $ 463,752,000 | $ 509,844,000 | $ 476,858,000 |
Intangible assets, accumulated amortization | 336,300,000 | 296,400,000 | $ 327,000,000 |
Impairment of amortizable intangible assets | $ 0 | $ 0 |
Accrued Liabilities (Details)
Accrued Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 |
Payables and Accruals [Abstract] | |||
Incentive compensation | $ 157,403 | $ 140,769 | $ 143,414 |
Advertising and promotion | 106,813 | 179,687 | 78,755 |
Current lease liabilities | $ 74,198 | $ 73,752 | $ 73,155 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Accrued liabilities | Accrued liabilities | Accrued liabilities |
Seasonal Financing (Details)
Seasonal Financing (Details) - USD ($) | 3 Months Ended | ||||
Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 | Mar. 19, 2021 | Dec. 20, 2017 | |
Debt Instrument [Line Items] | |||||
Short-term borrowings | $ 0 | $ 0 | $ 878,000 | ||
Credit Agreement | |||||
Debt Instrument [Line Items] | |||||
Outstanding letters of credit | 10,000,000 | 10,000,000 | 11,000,000 | ||
Foreign Bank Loans | |||||
Debt Instrument [Line Items] | |||||
Short-term borrowings | 0 | 0 | 900,000 | ||
Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Outstanding borrowings | $ 0 | $ 0 | $ 0 | ||
Revolving Credit Facility | Credit Agreement | |||||
Debt Instrument [Line Items] | |||||
Aggregate commitment under the credit facility | $ 1,400,000,000 | $ 1,600,000,000 | |||
Revolving Credit Facility | Credit Agreement | Minimum | LIBOR | |||||
Debt Instrument [Line Items] | |||||
Interest rate margin for loans (as a percent) | 1.25% | ||||
Revolving Credit Facility | Credit Agreement | Minimum | Base Rate | |||||
Debt Instrument [Line Items] | |||||
Interest rate margin for loans (as a percent) | 0.25% | ||||
Revolving Credit Facility | Credit Agreement | Maximum | LIBOR | |||||
Debt Instrument [Line Items] | |||||
Interest rate margin for loans (as a percent) | 1.75% | ||||
Revolving Credit Facility | Credit Agreement | Maximum | Base Rate | |||||
Debt Instrument [Line Items] | |||||
Interest rate margin for loans (as a percent) | 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 |
Long-Term Debt - Schedule of De
Long-Term Debt - Schedule of Debt (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 |
Debt Instrument [Line Items] | |||
Long-term debt | $ 2,600,000 | $ 2,600,000 | $ 2,880,000 |
Debt issuance costs and debt discount | (27,850) | (29,008) | (37,268) |
Long-term debt, net | 2,572,150 | 2,570,992 | 2,837,732 |
Less: current portion | (250,000) | 0 | 0 |
Total long-term debt | 2,322,150 | 2,570,992 | 2,837,732 |
Senior Notes | 2010 Senior Notes due October 2040 | |||
Debt Instrument [Line Items] | |||
Long-term debt | 250,000 | 250,000 | 250,000 |
Senior Notes | 2011 Senior Notes due November 2041 | |||
Debt Instrument [Line Items] | |||
Long-term debt | 300,000 | 300,000 | 300,000 |
Senior Notes | 2013 Senior Notes due March 2023 | |||
Debt Instrument [Line Items] | |||
Long-term debt | 250,000 | 250,000 | 250,000 |
Senior Notes | 2017/2018 Senior Notes due December 2025 | |||
Debt Instrument [Line Items] | |||
Long-term debt | 0 | 0 | 275,000 |
Senior Notes | 2019 Senior Notes due December 2027 | |||
Debt Instrument [Line Items] | |||
Long-term debt | 600,000 | 600,000 | 600,000 |
Senior Notes | 2021 Senior Notes due April 2026 | |||
Debt Instrument [Line Items] | |||
Long-term debt | 600,000 | 600,000 | 600,000 |
Senior Notes | 2021 Senior Notes due April 2029 | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 600,000 | $ 600,000 | $ 600,000 |
Long-Term Debt - Narrative (Det
Long-Term Debt - Narrative (Details) - USD ($) | Jul. 01, 2021 | Mar. 19, 2021 | Mar. 31, 2022 | Mar. 31, 2021 |
Debt Instrument [Line Items] | ||||
Redemption of debt | $ 0 | $ 1,287,022,000 | ||
Loss on extinguishment of long-term borrowings | $ 0 | $ 83,213,000 | ||
Senior Notes | 2021 Senior Notes due April 2026 | ||||
Debt Instrument [Line Items] | ||||
Principal of debt instrument | $ 600,000,000 | |||
Interest rate | 3.375% | |||
Senior Notes | 2021 Senior Notes due April 2029 | ||||
Debt Instrument [Line Items] | ||||
Principal of debt instrument | $ 600,000,000 | |||
Interest rate | 3.75% | |||
Senior Notes | 2017/2018 Senior Notes due December 2025 | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 6.75% | |||
Redemption of debt | $ 275,000,000 | $ 1,225,000,000 | ||
Loss on extinguishment of long-term borrowings | 18,500,000 | 83,200,000 | ||
Debt prepayment premium costs | 14,000,000 | 62,000,000 | ||
Write-off of unamortized debt issuance costs | $ 4,500,000 | $ 21,200,000 |
Other Noncurrent Liabilities (D
Other Noncurrent Liabilities (Details) - Other noncurrent liabilities - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 |
Other Commitments [Line Items] | |||
Benefit plan liabilities | $ 172,694 | $ 179,857 | $ 221,345 |
Income taxes payable | $ 68,082 | $ 62,915 | $ 72,252 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) - Changes in Accumulated Balances (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | $ 1,568,849 | $ 610,144 |
Other comprehensive income (loss) before reclassifications | 8,070 | (16,135) |
Amounts reclassified from accumulated other comprehensive income (loss) | 3,991 | (315) |
Other Comprehensive Income (Loss), Net of Tax | 12,061 | (16,450) |
Adjustment of accumulated other comprehensive loss to retained earnings | 2,801 | |
Ending balance | 1,618,067 | 490,565 |
Total | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | (941,271) | (944,576) |
Other Comprehensive Income (Loss), Net of Tax | 12,061 | (16,450) |
Ending balance | (926,409) | (961,026) |
Derivative Instruments | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | 8,796 | (15,369) |
Other comprehensive income (loss) before reclassifications | 7,464 | 10,101 |
Amounts reclassified from accumulated other comprehensive income (loss) | (1,357) | (2,730) |
Other Comprehensive Income (Loss), Net of Tax | 6,107 | 7,371 |
Adjustment of accumulated other comprehensive loss to retained earnings | 0 | |
Ending balance | 14,903 | (7,998) |
Available-for-Sale Security | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | (6,447) | (7,522) |
Other comprehensive income (loss) before reclassifications | 0 | 1,964 |
Amounts reclassified from accumulated other comprehensive income (loss) | 3,646 | 0 |
Other Comprehensive Income (Loss), Net of Tax | 3,646 | 1,964 |
Adjustment of accumulated other comprehensive loss to retained earnings | 2,801 | |
Ending balance | 0 | (5,558) |
Employee Benefit Plans | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | (154,099) | (186,854) |
Other comprehensive income (loss) before reclassifications | (315) | (67) |
Amounts reclassified from accumulated other comprehensive income (loss) | 1,702 | 2,415 |
Other Comprehensive Income (Loss), Net of Tax | 1,387 | 2,348 |
Adjustment of accumulated other comprehensive loss to retained earnings | 0 | |
Ending balance | (152,712) | (184,506) |
Currency Translation Adjustments | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | (789,521) | (734,831) |
Other comprehensive income (loss) before reclassifications | 921 | (28,133) |
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | 0 |
Other Comprehensive Income (Loss), Net of Tax | 921 | (28,133) |
Adjustment of accumulated other comprehensive loss to retained earnings | 0 | |
Ending balance | $ (788,600) | $ (762,964) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Loss) - Reclassification from AOCI (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Provision for income taxes | $ 23,910 | $ 20,305 |
Other non-operating expense, net | 9,112 | (1,086) |
Loss before income taxes | (39,108) | 94,705 |
Net income (loss) | (21,454) | 112,385 |
Reclassification Out of Accumulated Other Comprehensive Income (Loss) | Derivative Instruments | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Cost of sales | 1,429 | 2,838 |
Provision for income taxes | (72) | (108) |
Net income (loss) | 1,357 | 2,730 |
Reclassification Out of Accumulated Other Comprehensive Income (Loss) | Employee Benefit Plans | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Provision for income taxes | 51 | (30) |
Loss before income taxes | (1,753) | (2,385) |
Net income (loss) | (1,702) | (2,415) |
Reclassification Out of Accumulated Other Comprehensive Income (Loss) | Amortization of prior service credit | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Other non-operating expense, net | 469 | 398 |
Reclassification Out of Accumulated Other Comprehensive Income (Loss) | Recognized actuarial loss | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Other non-operating expense, net | $ (2,222) | $ (2,783) |
Accumulated Other Comprehensi_5
Accumulated Other Comprehensive Income (Loss) - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Total stockholders' equity | $ (1,618,067) | $ (490,565) | $ (1,568,849) | $ (610,144) |
Currency translation adjustments loss | 12,061 | (16,450) | ||
Adjustment of accumulated other comprehensive loss to retained earnings | 2,801 | |||
Available-for-Sale Security | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Total stockholders' equity | 0 | 5,558 | 6,447 | 7,522 |
Currency translation adjustments loss | 3,646 | 1,964 | ||
Adjustment of accumulated other comprehensive loss to retained earnings | 2,801 | |||
Currency Translation Adjustments | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Total stockholders' equity | 788,600 | 762,964 | $ 789,521 | $ 734,831 |
Currency translation adjustments loss | 921 | $ (28,133) | ||
Adjustment of accumulated other comprehensive loss to retained earnings | $ 0 |
Foreign Currency Transaction _3
Foreign Currency Transaction Exposure (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Currency Transaction Gains (Losses) [Line Items] | ||
Currency transaction (losses), net | $ (5,982) | $ (6,880) |
Operating income | ||
Currency Transaction Gains (Losses) [Line Items] | ||
Currency transaction (losses), net | 462 | (3,572) |
Other non-operating income/expense, net | ||
Currency Transaction Gains (Losses) [Line Items] | ||
Currency transaction (losses), net | $ (6,444) | $ (3,308) |
Derivative Instruments - Narrat
Derivative Instruments - Narrative (Details) - Foreign currency forward exchange and other contracts - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Notional amount | $ 953 | $ 925 | $ 952 |
Maximum | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Maximum term for foreign currency forward exchange contracts | 24 months |
Derivative Instruments - Assets
Derivative Instruments - Assets and Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 |
Derivatives, Fair Value [Line Items] | |||
Derivative Assets | $ 32,897 | $ 18,075 | $ 7,834 |
Derivative Liabilities | 3,519 | 3,810 | 17,304 |
Derivatives designated as hedging instruments | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Assets | 18,801 | 14,361 | 5,784 |
Derivative Liabilities | 3,065 | 2,581 | 11,817 |
Derivatives designated as hedging instruments | Foreign currency forward exchange and other contracts | Prepaid expenses and other current assets | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Assets | 17,146 | 13,361 | 4,534 |
Derivatives designated as hedging instruments | Foreign currency forward exchange and other contracts | Other noncurrent assets | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Assets | 1,655 | 1,000 | 1,250 |
Derivatives designated as hedging instruments | Foreign currency forward exchange and other contracts | Accrued liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Liabilities | 2,345 | 2,301 | 11,009 |
Derivatives designated as hedging instruments | Foreign currency forward exchange and other contracts | Other noncurrent liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Liabilities | 720 | 280 | 808 |
Derivatives not designated as hedging instruments | Foreign currency forward exchange and other contracts | Prepaid expenses and other current assets | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Assets | 14,096 | 3,714 | 2,050 |
Derivatives not designated as hedging instruments | Foreign currency forward exchange and other contracts | Accrued liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Liabilities | $ 454 | $ 1,229 | $ 5,487 |
Derivative Instruments - Design
Derivative Instruments - Designated as Hedging Instruments by Classification and Amount of Gains and Losses (Details) - Derivatives Designated As Hedging Instruments - Foreign Exchange Forward - Cost of sales - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of gains recognized in OCI | $ 7,464 | $ 10,101 |
Amount of gains reclassified from accumulated OCI to consolidated statements of operations | $ 1,357 | $ 2,730 |
Derivative Instruments - Not De
Derivative Instruments - Not Designated as Hedging Instruments by Classification and Amount of Gains and Losses (Details) - Derivatives Not Designated As Hedging Instruments - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of net (losses) gains recognized in the Statements of Operations | $ (7,832) | $ (7,997) |
Foreign Exchange Forward | Other non-operating (income)/expense, net | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of net (losses) gains recognized in the Statements of Operations | (7,832) | (8,636) |
Foreign Exchange Forward | Cost of sales | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of net (losses) gains recognized in the Statements of Operations | $ 0 | $ 639 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Measured on Recurring Basis (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 |
Assets: | |||
Foreign currency forward exchange contracts and other | $ 32,897 | $ 18,075 | $ 7,834 |
Equity securities | 4,471 | 5,343 | 6,232 |
Total assets | 37,368 | 23,418 | 14,066 |
Liabilities: | |||
Foreign currency forward exchange contracts and other | 3,519 | 3,810 | 17,304 |
Level 1 | |||
Assets: | |||
Foreign currency forward exchange contracts and other | 0 | 0 | 0 |
Equity securities | 4,471 | 5,343 | 6,232 |
Total assets | 4,471 | 5,343 | 6,232 |
Liabilities: | |||
Foreign currency forward exchange contracts and other | 0 | 0 | 0 |
Level 2 | |||
Assets: | |||
Foreign currency forward exchange contracts and other | 32,897 | 18,075 | 7,834 |
Equity securities | 0 | 0 | 0 |
Total assets | 32,897 | 18,075 | 7,834 |
Liabilities: | |||
Foreign currency forward exchange contracts and other | 3,519 | 3,810 | 17,304 |
Level 3 | |||
Assets: | |||
Foreign currency forward exchange contracts and other | 0 | 0 | 0 |
Equity securities | 0 | 0 | 0 |
Total assets | 0 | 0 | 0 |
Liabilities: | |||
Foreign currency forward exchange contracts and other | $ 0 | $ 0 | $ 0 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 |
Fair Value Disclosures [Abstract] | |||
Estimated fair value of long-term debt | $ 2,650 | $ 2,820 | $ 3,050 |
Carrying value of long-term debt | $ 2,600 | $ 2,600 | $ 2,880 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Basic: | ||
Net income (loss) | $ 21,454 | $ (112,385) |
Weighted average number of common shares (in shares) | 352,215 | 349,041 |
Basic net income (loss) per common share (USD per share) | $ 0.06 | $ (0.32) |
Diluted: | ||
Net income (loss) | $ 21,454 | $ (112,385) |
Weighted average number of common shares (in shares) | 352,215 | 349,041 |
Dilutive share-based awards (in shares) | 6,788 | 0 |
Weighted average number of common and potential common shares (in shares) | 359,003 | 349,041 |
Diluted net income (loss) per common share (USD per share) | $ 0.06 | $ (0.32) |
Antidilutive securities excluded from calculation of earnings per share (in shares) | 11,100 |
Employee Benefit Plans - Compon
Employee Benefit Plans - Components of Net Periodic Benefit Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Defined Benefit Pension Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | $ 1,047 | $ 1,293 |
Interest cost | 3,077 | 2,540 |
Expected return on plan assets | (4,878) | (4,627) |
Amortization of prior service cost | 40 | 111 |
Recognized actuarial loss | 2,247 | 2,785 |
Net periodic benefit cost (credit) | 1,533 | 2,102 |
Postretirement Benefit Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Interest cost | 22 | 19 |
Amortization of prior service cost | (509) | (509) |
Recognized actuarial loss | (25) | (2) |
Net periodic benefit cost (credit) | $ (512) | $ (492) |
Employee Benefit Plans - Narrat
Employee Benefit Plans - Narrative (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2022USD ($) | |
Retirement Benefits [Abstract] | |
Cash contributions made during the period | $ 1 |
Expected additional cash contributions | $ 5 |
Share-Based Payments - Narrativ
Share-Based Payments - Narrative (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022USD ($)incentiveProgram | Mar. 31, 2021USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of incentive programs | incentiveProgram | 2 | |
Proceeds from stock option exercises | $ 13,935 | $ 1,110 |
Stock options, RSUs, and performance shares | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total unrecognized compensation expense related to unvested share-based payments | $ 81,000 | |
Weighted-average period for unrecognized compensation expense expected to be recognized | 1 year 10 months 24 days | |
Stock options, RSUs, and performance shares | Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
General vesting period | 3 years | |
Stock options | Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Period of stock option expiration from date of grant | 10 years |
Share-Based Payments - Compensa
Share-Based Payments - Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based compensation expense | $ 19,323 | $ 15,112 |
Stock option compensation expense | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based compensation expense | 2,319 | 2,783 |
RSU compensation expense | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based compensation expense | 6,851 | 6,357 |
Performance award compensation expense | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based compensation expense | $ 10,153 | $ 5,972 |
Other Selling and Administrat_3
Other Selling and Administrative Expenses (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Other Income and Expenses [Abstract] | ||
Design and development | $ 42,635 | $ 43,981 |
Identifiable intangible asset amortization | $ 9,325 | $ 9,514 |
Restructuring Charges - Schedul
Restructuring Charges - Schedule of Capital Light Restructuring Charges (Details) - Optimizing for Growth (formerly Capital Light Initiative) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | $ 9,083 | $ 7,642 |
Cost of sales | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 2,669 | 1,932 |
Other selling and administrative expenses | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | $ 6,414 | $ 5,710 |
Restructuring Charges - Severan
Restructuring Charges - Severance and Other Restructuring Charges Activity (Details) - Optimizing for Growth (formerly Capital Light Initiative) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Restructuring Reserve [Roll Forward] | ||
Remaining liability at beginning of period | $ 15,245 | $ 5,324 |
Charges | 9,083 | 7,642 |
Payments/Utilization | (9,079) | (4,476) |
Remaining liability at end of period | 15,249 | 8,490 |
Severance | ||
Restructuring Reserve [Roll Forward] | ||
Remaining liability at beginning of period | 12,411 | 5,294 |
Charges | 3,518 | 4,342 |
Payments/Utilization | (3,901) | (1,405) |
Remaining liability at end of period | 12,028 | 8,231 |
Other restructuring charges | ||
Restructuring Reserve [Roll Forward] | ||
Remaining liability at beginning of period | 2,834 | 30 |
Charges | 5,565 | 3,300 |
Payments/Utilization | (5,178) | (3,071) |
Remaining liability at end of period | $ 3,221 | $ 259 |
Restructuring Charges - Narrati
Restructuring Charges - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2022 | |
Mexico | Land and building | ||
Restructuring Cost and Reserve [Line Items] | ||
Gain on disposal of property, plant, and equipment | $ 15.8 | |
Optimizing for Growth (formerly Capital Light Initiative) | ||
Restructuring Cost and Reserve [Line Items] | ||
Severance and other restructuring charges incurred to date | $ 95 | |
Restructuring and related cost, cost incurred to date, non-cash charges | 23 | |
Optimizing for Growth (formerly Capital Light Initiative) | Minimum | ||
Restructuring Cost and Reserve [Line Items] | ||
Expected restructuring costs | 140 | |
Expected non-cash restructuring costs | 70 | |
Optimizing for Growth (formerly Capital Light Initiative) | Maximum | ||
Restructuring Cost and Reserve [Line Items] | ||
Expected restructuring costs | 165 | |
Expected non-cash restructuring costs | $ 75 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
Provision for income taxes | $ 23,910 | $ 20,305 | |
Discrete tax (benefit) expense | 12,200 | $ 7,300 | |
Release of valuation allowances on deferred tax assets | $ 540,800 | ||
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 | 20,900 | ||
Deferred tax liabilities, undistributed foreign earnings | $ 7,700 |
Contingencies (Details)
Contingencies (Details) $ in Millions | 1 Months Ended | 2 Months Ended | 3 Months Ended |
Feb. 28, 2022USD ($) | Jan. 31, 2020stockholder | Mar. 31, 2022lawsuitchildclass | |
Sleeper | |||
Loss Contingencies [Line Items] | |||
Number of additional lawsuits pending | 40 | ||
Number of children with injuries or fatalities related to lawsuits | child | 44 | ||
Whistleblower Letter | |||
Loss Contingencies [Line Items] | |||
Number of additional lawsuits pending | 7 | ||
Number of stockholders who filed complaints | stockholder | 2 | ||
Litigation settlement, amount awarded to other party | $ | $ 86 | ||
Minimum | Sleeper | |||
Loss Contingencies [Line Items] | |||
Number of consumer classes | class | 10 |
Segment Information - Revenues
Segment Information - Revenues and Income (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Segment Reporting Information [Line Items] | ||
Revenues | $ 1,041,301 | $ 874,192 |
Operating Income | 80,067 | 33,871 |
Interest expense | 33,049 | 130,482 |
Interest (income) | (1,202) | (820) |
Other non-operating expense (income), net | 9,112 | (1,086) |
Income (Loss) Before Income Taxes | 39,108 | (94,705) |
Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Operating Income | 201,019 | 151,545 |
Operating Segments | North America and International | ||
Segment Reporting Information [Line Items] | ||
Restructuring charges | 2,700 | 1,900 |
Operating Segments | North America | ||
Segment Reporting Information [Line Items] | ||
Revenues | 602,118 | 479,660 |
Operating Income | 171,413 | 124,851 |
Operating Segments | International | ||
Segment Reporting Information [Line Items] | ||
Revenues | 403,842 | 349,354 |
Operating Income | 46,833 | 36,259 |
Operating Segments | American Girl | ||
Segment Reporting Information [Line Items] | ||
Revenues | 35,341 | 45,178 |
Operating Income | (17,227) | (9,565) |
Corporate and other expense | ||
Segment Reporting Information [Line Items] | ||
Operating Income | (120,952) | (117,674) |
Restructuring charges | 6,800 | 5,700 |
Total product recall charges | $ 600 | $ 5,300 |
Segment Information - Assets (D
Segment Information - Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 |
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Accounts receivable and inventories, net | $ 1,831,402 | $ 1,849,868 | $ 1,307,111 |
Operating Segments | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Accounts receivable and inventories, net | 1,589,555 | 1,635,837 | 1,160,012 |
Operating Segments | North America | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Accounts receivable and inventories, net | 819,929 | 784,836 | 587,193 |
Operating Segments | International | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Accounts receivable and inventories, net | 711,586 | 798,833 | 526,005 |
Operating Segments | American Girl | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Accounts receivable and inventories, net | 58,040 | 52,168 | 46,814 |
Corporate and other expense | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Accounts receivable and inventories, net | $ 241,847 | $ 214,031 | $ 147,099 |
Segment Information - Revenue_2
Segment Information - Revenues by Geographic Area (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Segment Reporting Information [Line Items] | ||
Revenues | $ 1,041,301 | $ 874,192 |
Operating Segments | North America | ||
Segment Reporting Information [Line Items] | ||
Revenues | 602,118 | 479,660 |
Operating Segments | North America | North America | ||
Segment Reporting Information [Line Items] | ||
Revenues | 637,459 | 524,838 |
Operating Segments | International | ||
Segment Reporting Information [Line Items] | ||
Revenues | 403,842 | 349,354 |
Operating Segments | International | EMEA | ||
Segment Reporting Information [Line Items] | ||
Revenues | 277,742 | 238,169 |
Operating Segments | International | Latin America | ||
Segment Reporting Information [Line Items] | ||
Revenues | 71,974 | 56,278 |
Operating Segments | International | Asia Pacific | ||
Segment Reporting Information [Line Items] | ||
Revenues | $ 54,126 | $ 54,907 |
Revision for Immaterial Misst_3
Revision for Immaterial Misstatements - Narrative (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Jan. 01, 2020 | Jan. 01, 2018 |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||
Total stockholders' equity | $ 1,618,067 | $ 1,568,849 | $ 490,565 | $ 610,144 | ||
Retained Earnings | ||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||
Total stockholders' equity | $ 2,475,250 | $ 2,456,597 | 1,441,225 | $ 1,553,610 | ||
Adjustments | ||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||
Total stockholders' equity | $ 16,634 | |||||
Adjustments | Retained Earnings | ||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||
Total stockholders' equity | $ 16,900 | $ 25,100 | ||||
Adjustments | Tooling Misstatement | Retained Earnings | ||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||
Total stockholders' equity | 37,200 | |||||
Adjustments | Other Misstatements | Retained Earnings | ||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||
Total stockholders' equity | $ 12,100 |
Revision for Immaterial Misst_4
Revision for Immaterial Misstatements - Balance Sheet (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 | Dec. 31, 2020 |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Inventories | $ 969,166 | $ 777,184 | $ 626,469 | |
Total current assets | 2,635,699 | 2,874,529 | 2,109,535 | |
Total Assets | 6,147,367 | 6,393,894 | 5,118,950 | |
Retained earnings | 2,475,250 | 2,456,597 | 1,441,225 | |
Total stockholders' equity | 1,618,067 | 1,568,849 | 490,565 | $ 610,144 |
Total liabilities and stockholders' equity | $ 6,147,367 | $ 6,393,894 | 5,118,950 | |
As Previously Reported | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Inventories | 609,835 | |||
Total current assets | 2,092,901 | |||
Total Assets | 5,102,316 | |||
Retained earnings | 1,424,591 | |||
Total stockholders' equity | 473,931 | |||
Total liabilities and stockholders' equity | 5,102,316 | |||
Adjustments | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Inventories | 16,634 | |||
Total current assets | 16,634 | |||
Total Assets | 16,634 | |||
Retained earnings | 16,634 | |||
Total stockholders' equity | 16,634 | |||
Total liabilities and stockholders' equity | $ 16,634 |
Revision for Immaterial Misst_5
Revision for Immaterial Misstatements - Statement of Operations and Comprehensive Loss (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Cost of sales | $ 558,406 | $ 462,355 |
Gross profit | 482,895 | 411,837 |
Operating Income | 80,067 | 33,871 |
Income Before Income Taxes | 39,108 | (94,705) |
Net income (loss) | 21,454 | (112,385) |
Comprehensive income (loss) | $ 33,515 | $ (128,835) |
Net income (loss) per common share - basic (USD per share) | $ 0.06 | $ (0.32) |
Net income (loss) per common share - diluted (USD per share) | $ 0.06 | $ (0.32) |
As Previously Reported | ||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Cost of sales | $ 465,188 | |
Gross profit | 409,004 | |
Operating Income | 31,038 | |
Income Before Income Taxes | (97,538) | |
Net income (loss) | (115,218) | |
Comprehensive income (loss) | $ (131,668) | |
Net income (loss) per common share - basic (USD per share) | $ (0.33) | |
Net income (loss) per common share - diluted (USD per share) | $ (0.33) | |
Adjustments | ||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Cost of sales | $ (2,833) | |
Gross profit | 2,833 | |
Operating Income | 2,833 | |
Income Before Income Taxes | 2,833 | |
Net income (loss) | 2,833 | |
Comprehensive income (loss) | $ 2,833 | |
Net income (loss) per common share - basic (USD per share) | $ 0.01 | |
Net income (loss) per common share - diluted (USD per share) | $ 0.01 |
Revision for Immaterial Misst_6
Revision for Immaterial Misstatements - Statement of Cash Flows (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Net income (loss) | $ 21,454 | $ (112,385) |
Changes in assets and liabilities: | ||
Inventories | (203,245) | (137,936) |
Accounts payable, accrued liabilities, and income taxes payable | (210,015) | (257,126) |
Net cash flows used for operating activities | (143,796) | (35,724) |
Purchases of other property, plant, and equipment | (16,653) | (17,628) |
Net cash flows used for investing activities | $ (54,983) | 817 |
As Previously Reported | ||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Net income (loss) | (115,218) | |
Changes in assets and liabilities: | ||
Inventories | (135,103) | |
Accounts payable, accrued liabilities, and income taxes payable | (262,635) | |
Net cash flows used for operating activities | (41,233) | |
Purchases of other property, plant, and equipment | (12,119) | |
Net cash flows used for investing activities | 6,326 | |
Adjustments | ||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Net income (loss) | 2,833 | |
Changes in assets and liabilities: | ||
Inventories | (2,833) | |
Accounts payable, accrued liabilities, and income taxes payable | 5,509 | |
Net cash flows used for operating activities | 5,509 | |
Purchases of other property, plant, and equipment | (5,509) | |
Net cash flows used for investing activities | $ (5,509) |