Cover
Cover - shares | 9 Months Ended | |
Sep. 30, 2023 | Oct. 25, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2023 | |
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 | |
City Area Code | 310 | |
Local Phone Number | 252-2000 | |
Title of 12(b) Security | Common stock, $1.00 per share | |
Trading Symbol | MAT | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Small Business | false | |
Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 353,232,620 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q3 | |
Entity Registrant Name | MATTEL INC /DE/ | |
Entity Central Index Key | 0000063276 | |
Current Fiscal Year End Date | --12-31 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 |
Current Assets | |||
Cash and equivalents | $ 455,735 | $ 761,235 | $ 348,970 |
Accounts receivable, net of allowances for credit losses of $12.5 million, $12.5 million, and $27.6 million, respectively | 1,571,047 | 860,221 | 1,381,534 |
Inventories | 790,521 | 894,064 | 1,083,769 |
Prepaid expenses and other current assets | 224,796 | 213,515 | 268,886 |
Total current assets | 3,042,099 | 2,729,035 | 3,083,159 |
Noncurrent Assets | |||
Property, plant, and equipment, net | 457,202 | 469,132 | 444,442 |
Right-of-use assets, net | 286,019 | 318,680 | 323,490 |
Goodwill | 1,380,042 | 1,378,551 | 1,370,986 |
Deferred income tax assets | 230,415 | 471,672 | 439,965 |
Intangible assets, net | 397,821 | 425,100 | 426,283 |
Other noncurrent assets | 450,956 | 385,491 | 379,850 |
Total Assets | 6,244,554 | 6,177,661 | 6,468,175 |
Current Liabilities | |||
Current portion of long-term debt | 0 | 0 | 250,000 |
Accounts payable | 450,109 | 471,475 | 495,221 |
Accrued liabilities | 803,081 | 678,689 | 780,522 |
Income taxes payable | 51,366 | 37,584 | 50,366 |
Total current liabilities | 1,304,556 | 1,187,748 | 1,576,109 |
Noncurrent Liabilities | |||
Long-term debt | 2,328,897 | 2,325,644 | 2,324,459 |
Noncurrent lease liabilities | 234,699 | 271,418 | 279,525 |
Other noncurrent liabilities | 340,936 | 336,582 | 320,618 |
Total noncurrent liabilities | 2,904,532 | 2,933,644 | 2,924,602 |
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 | 1,745,170 | 1,808,308 | 1,795,720 |
Treasury stock at cost: 88.1 million shares, 87.0 million shares, and 87.0 million shares, respectively | (2,131,676) | (2,129,639) | (2,130,163) |
Retained earnings | 2,914,744 | 2,847,709 | 2,831,572 |
Accumulated other comprehensive loss | (934,141) | (911,478) | (971,034) |
Total stockholders' equity | 2,035,466 | 2,056,269 | 1,967,464 |
Total Liabilities and Stockholders' Equity | $ 6,244,554 | $ 6,177,661 | $ 6,468,175 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 |
Statement of Financial Position [Abstract] | |||
Accounts receivable, allowances for credit losses | $ 12.5 | $ 27.6 | $ 12.5 |
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) | 88,100,000 | 87,000,000 | 87,000,000 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Income Statement [Abstract] | ||||
Net Sales | $ 1,918,788 | $ 1,755,780 | $ 3,820,531 | $ 4,032,767 |
Cost of sales | 940,854 | 908,902 | 2,027,004 | 2,154,076 |
Gross Profit | 977,934 | 846,878 | 1,793,527 | 1,878,691 |
Advertising and promotion expenses | 124,265 | 127,600 | 290,337 | 291,545 |
Other selling and administrative expenses | 379,811 | 327,906 | 1,081,594 | 990,627 |
Operating income | 473,858 | 391,372 | 421,596 | 596,519 |
Interest expense | 30,716 | 33,870 | 92,486 | 99,730 |
Interest (income) | (4,569) | (1,903) | (15,409) | (5,064) |
Other non-operating (income) expense, net | (2,391) | (4,293) | (5,976) | 11,966 |
Income before income taxes | 450,102 | 363,698 | 350,495 | 489,887 |
Provision for income taxes | 309,342 | 80,035 | 296,767 | 130,530 |
(Income) from equity method investments | (5,559) | (6,219) | (13,306) | (18,419) |
Net Income | $ 146,319 | $ 289,882 | $ 67,034 | $ 377,776 |
Net Income Per Common Share - Basic (USD per share) | $ 0.41 | $ 0.82 | $ 0.19 | $ 1.07 |
Weighted-average number of common shares (in shares) | 354,139 | 354,471 | 354,559 | 353,394 |
Net Income Per Common Share - Diluted (USD per share) | $ 0.41 | $ 0.80 | $ 0.19 | $ 1.05 |
Weighted average number of common and potential common shares (in shares) | 357,474 | 360,229 | 357,977 | 359,731 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 146,319 | $ 289,882 | $ 67,034 | $ 377,776 |
Other Comprehensive Loss, Net of Tax | ||||
Currency translation adjustments | (39,273) | (72,643) | (8,992) | (78,212) |
Employee benefit plan adjustments | 664 | 1,354 | 2,120 | 4,065 |
Available-for-sale security adjustments | 0 | 0 | 0 | 3,646 |
Net unrealized gains (losses) on derivative instruments: | ||||
Unrealized holding gains (losses) | 7,521 | 24,715 | (1,729) | 58,604 |
Reclassification adjustments included in net income | (5,801) | (11,312) | (14,062) | (20,667) |
Net unrealized gains (losses) on derivative instruments | 1,720 | 13,403 | (15,791) | 37,937 |
Other Comprehensive Loss, Net of Tax | (36,889) | (57,886) | (22,663) | (32,564) |
Comprehensive Income | $ 109,430 | $ 231,996 | $ 44,371 | $ 345,212 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Cash Flows From Operating Activities: | ||
Net income | $ 67,034 | $ 377,776 |
Adjustments to reconcile net income to net cash flows used for operating activities: | ||
Depreciation | 104,042 | 108,450 |
Amortization | 28,570 | 28,304 |
Share-based compensation | 52,425 | 55,941 |
Bad debt expense | 178 | 7,029 |
Inventory obsolescence | 42,245 | 35,410 |
Deferred income taxes | 26,283 | 82,673 |
Income from equity method investments | (13,306) | (18,419) |
Loss (gain) on sale of assets, net | 1,408 | (15,960) |
Valuation allowance on foreign deferred tax assets | 212,379 | 0 |
Changes in assets and liabilities: | ||
Accounts receivable, net | (714,198) | (348,229) |
Inventories | 42,701 | (401,845) |
Prepaid expenses and other current assets | (4,768) | (38,985) |
Accounts payable, accrued liabilities, and income taxes payable | 125,775 | (126,552) |
Other, net | (50,409) | (20,360) |
Net cash flows used for operating activities | (79,641) | (274,767) |
Cash Flows From Investing Activities: | ||
Purchases of tools, dies, and molds | (56,741) | (57,955) |
Purchases of other property, plant, and equipment | (60,797) | (69,373) |
Proceeds from foreign currency forward exchange contracts, net | 20,021 | 3,247 |
Proceeds from sale of assets | 6,336 | 25,839 |
Other, net | (2,731) | 749 |
Net cash flows used for investing activities | (93,912) | (97,493) |
Cash Flows From Financing Activities: | ||
Share repurchases | (109,860) | 0 |
Tax withholdings for share-based compensation | (32,822) | (30,327) |
Proceeds from stock option exercises | 26,014 | 27,658 |
Other, net | (2,783) | (6,795) |
Net cash flows used for financing activities | (119,451) | (9,464) |
Effect of Currency Exchange Rate Changes on Cash and Equivalents | (12,496) | (668) |
Decrease in Cash and Equivalents | (305,500) | (382,392) |
Cash and Equivalents at Beginning of Period | 761,235 | 731,362 |
Cash and Equivalents at End of Period | $ 455,735 | $ 348,970 |
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, 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) |
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) | 377,776 | |||||
Other comprehensive income (loss), net of tax | (32,564) | |||||
Ending balance at Sep. 30, 2022 | 1,967,464 | 441,369 | 1,795,720 | (2,130,163) | 2,831,572 | (971,034) |
Beginning balance at Mar. 31, 2022 | 1,618,067 | 441,369 | 1,804,761 | (2,176,904) | 2,475,250 | (926,409) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | 66,440 | 66,440 | ||||
Other comprehensive income (loss), net of tax | 13,261 | 13,261 | ||||
Issuance of treasury stock for stock option exercises | 12,347 | (2,792) | 15,139 | |||
Issuance of treasury stock for restricted stock units vesting | (763) | (3,997) | 3,234 | |||
Deferred compensation | 131 | (12) | 143 | |||
Share-based compensation | 18,566 | 18,566 | ||||
Ending balance at Jun. 30, 2022 | 1,728,049 | 441,369 | 1,816,526 | (2,158,388) | 2,541,690 | (913,148) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | 289,882 | 289,882 | ||||
Other comprehensive income (loss), net of tax | (57,886) | (57,886) | ||||
Issuance of treasury stock for stock option exercises | 1,376 | (998) | 2,374 | |||
Issuance of treasury stock for restricted stock units vesting | (12,010) | (37,861) | 25,851 | |||
Share-based compensation | 18,053 | 18,053 | ||||
Ending balance at Sep. 30, 2022 | 1,967,464 | 441,369 | 1,795,720 | (2,130,163) | 2,831,572 | (971,034) |
Beginning balance at Dec. 31, 2022 | 2,056,269 | 441,369 | 1,808,308 | (2,129,639) | 2,847,709 | (911,478) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | (106,471) | (106,471) | ||||
Other comprehensive income (loss), net of tax | 23,160 | 23,160 | ||||
Share repurchases | (33,986) | (33,986) | ||||
Issuance of treasury stock for stock option exercises | 2,045 | (1,144) | 3,189 | |||
Issuance of treasury stock for restricted stock units vesting | (20,299) | (51,311) | 31,012 | |||
Share-based compensation | 16,943 | 16,943 | ||||
Ending balance at Mar. 31, 2023 | 1,937,661 | 441,369 | 1,772,796 | (2,129,424) | 2,741,238 | (888,318) |
Beginning balance at Dec. 31, 2022 | 2,056,269 | 441,369 | 1,808,308 | (2,129,639) | 2,847,709 | (911,478) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | 67,034 | |||||
Other comprehensive income (loss), net of tax | (22,663) | |||||
Ending balance at Sep. 30, 2023 | 2,035,466 | 441,369 | 1,745,170 | (2,131,676) | 2,914,744 | (934,141) |
Beginning balance at Mar. 31, 2023 | 1,937,661 | 441,369 | 1,772,796 | (2,129,424) | 2,741,238 | (888,318) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | 27,187 | 27,187 | ||||
Other comprehensive income (loss), net of tax | (8,934) | (8,934) | ||||
Share repurchases | (15,875) | (15,875) | ||||
Issuance of treasury stock for stock option exercises | 6,595 | (4,075) | 10,670 | |||
Issuance of treasury stock for restricted stock units vesting | (4,381) | (18,079) | 13,698 | |||
Deferred compensation | 130 | (36) | 166 | |||
Share-based compensation | 19,991 | 19,991 | ||||
Ending balance at Jun. 30, 2023 | 1,962,374 | 441,369 | 1,770,597 | (2,120,765) | 2,768,425 | (897,252) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | 146,319 | 146,319 | ||||
Other comprehensive income (loss), net of tax | (36,889) | (36,889) | ||||
Share repurchases | (60,000) | (60,000) | ||||
Issuance of treasury stock for stock option exercises | 17,374 | (10,095) | 27,469 | |||
Issuance of treasury stock for restricted stock units vesting | (9,204) | (30,824) | 21,620 | |||
Share-based compensation | 15,492 | 15,492 | ||||
Ending balance at Sep. 30, 2023 | $ 2,035,466 | $ 441,369 | $ 1,745,170 | $ (2,131,676) | $ 2,914,744 | $ (934,141) |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2023 | |
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, 2022 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 2022 Annual Report on Form 10-K. |
Accounts Receivable, Net
Accounts Receivable, Net | 9 Months Ended |
Sep. 30, 2023 | |
Receivables [Abstract] | |
Accounts Receivable, Net | Accounts Receivable, Net 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 were net of allowances for credit losses of $12.5 million, $12.5 million, and $27.6 million as of September 30, 2023, September 30, 2022, and December 31, 2022, respectively. |
Inventories
Inventories | 9 Months Ended |
Sep. 30, 2023 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories included the following: September 30, September 30, December 31, (In thousands) Raw materials and work in process $ 102,582 $ 163,962 $ 139,212 Finished goods 687,939 919,807 754,852 $ 790,521 $ 1,083,769 $ 894,064 |
Property, Plant, and Equipment,
Property, Plant, and Equipment, Net | 9 Months Ended |
Sep. 30, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant, and Equipment, Net | Property, Plant, and Equipment, Net Property, plant, and equipment, net included the following: September 30, September 30, December 31, (In thousands) Land $ 19,566 $ 19,198 $ 18,045 Buildings 311,030 303,862 303,827 Machinery and equipment 623,687 711,000 654,437 Software 232,995 343,172 336,716 Tools, dies, and molds 494,070 526,639 510,398 Leasehold improvements 123,240 105,223 104,135 Construction in progress 39,533 61,938 79,742 1,844,121 2,071,032 2,007,300 Less: accumulated depreciation (1,386,919) (1,626,590) (1,538,168) $ 457,202 $ 444,442 $ 469,132 |
Goodwill and Intangible Assets,
Goodwill and Intangible Assets, Net | 9 Months Ended |
Sep. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets, Net | Goodwill and Intangible Assets, Net Goodwill Goodwill is allocated to various reporting units, which are at the operating segment level, for the purpose of evaluating whether goodwill is impaired. Mattel's reporting units are: (i) North America; (ii) International; and (iii) American Girl. Components of the operating segments have been aggregated into a single reporting unit as the components have similar economic characteristics. The similar economic characteristics include the nature of the products, the nature of the production processes, the customers, and the manner in which the products are distributed. Mattel tests its goodwill for impairment annually in the third quarter and whenever events or changes in circumstances indicate that the carrying amount of a reporting unit may exceed its fair value. In the third quarter of 2023, Mattel performed its annual impairment test and determined that goodwill was not impaired. The change in the carrying amount of goodwill by reporting unit for the nine months ended September 30, 2023 is shown below. Brand-specific goodwill held by foreign subsidiaries is allocated to the North America reporting unit selling those brands, thereby causing a foreign currency translation impact. December 31, Currency September 30, (In thousands) North America $ 731,993 $ 265 $ 732,258 International 438,987 1,226 440,213 American Girl 207,571 — 207,571 $ 1,378,551 $ 1,491 $ 1,380,042 Intangible Assets, Net Amortizable intangible assets were $397.8 million, net of accumulated amortization of $396.8 million, $426.3 million, net of accumulated amortization of $355.3 million, and $425.1 million, net of accumulated amortization of $364.9 million as of September 30, 2023, September 30, 2022, and December 31, 2022, respectively. Mattel's amortizable intangible assets primarily consist of trademarks and trade names. Mattel tests its amortizable intangible assets for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. Mattel's amortizable intangible assets were not impaired during the three and nine months ended September 30, 2023 and 2022. |
Accrued Liabilities
Accrued Liabilities | 9 Months Ended |
Sep. 30, 2023 | |
Payables and Accruals [Abstract] | |
Accrued Liabilities | Accrued Liabilities Accrued liabilities included the following: September 30, September 30, December 31, (In thousands) Advertising and promotion $ 105,218 $ 100,091 $ 115,707 Incentive compensation 89,142 66,830 2,889 Current lease liabilities 76,021 72,591 75,297 Royalties 74,801 78,186 65,330 |
Supplier Finance Program
Supplier Finance Program | 9 Months Ended |
Sep. 30, 2023 | |
Payables and Accruals [Abstract] | |
Supplier Finance Program | Supplier Finance ProgramMattel has an agreement with a third-party financial institution that allows certain participating suppliers the opportunity to voluntarily finance payment obligations of Mattel under a supplier finance program. Under this program, participating suppliers may accelerate the timing of collection of their receivables due from Mattel, prior to their scheduled due dates, by selling one or more of their receivables at a discounted price to the third-party financial institution. The range of payment terms Mattel negotiates with suppliers are consistent, regardless of whether the suppliers participate in the supplier finance program and Mattel does not have any economic interest in any suppliers' decision to participate in the supplier finance program. Suppliers participating in the program are able to select which individual Mattel invoices they sell to the third-party financial institution. However, all Mattel payments of the full amounts due to participating suppliers are paid on the invoice due date based on the terms originally negotiated with the supplier, regardless of whether the individual invoice due to the supplier is sold to the third-party financial institution. Included in Mattel's accounts payable in the consolidated balance sheets as of September 30, 2023, September 30, 2022, and December 31, 2022 were $90.5 million, $156.6 million, and $86.0 million of outstanding payment obligations due to suppliers, respectively, under the supplier finance program. All payment activities related to the supplier finance program were presented within operating activities in the consolidated statements of cash flows. |
Seasonal Financing
Seasonal Financing | 9 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
Seasonal Financing | Seasonal Financing On September 15, 2022, Mattel entered into a revolving credit agreement (the "Credit Agreement") as the borrower with Bank of America, N.A., as administrative agent, and the other lenders and financial institutions party thereto, providing for a senior secured revolving credit facility in an aggregate principal amount of $1.40 billion (the "Revolving Credit Facility"). The Revolving Credit Facility will mature on September 15, 2025. In connection with the entry into the Credit Agreement, Mattel terminated the commitments and satisfied all outstanding obligations under the previous credit agreement, dated December 20, 2017 (as amended). Borrowings under the Revolving Credit Facility bear interest at a floating rate, which can be either, at Mattel's option, (i) adjusted Term Secured Overnight Financing Rate ("SOFR") plus an applicable margin ranging from 1.125% to 2.000% per annum or (ii) an alternate base rate plus an applicable margin ranging from 0.125% to 1.000% per annum, in each case, such applicable margins to be determined based on Mattel's debt ratings. In addition to paying interest on the outstanding principal under the Revolving Credit Facility, Mattel is required to pay (i) an unused line fee per annum of the average daily unused portion of the Revolving Credit Facility; (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. In November 2022, Moody's upgraded Mattel's debt rating from Ba1 to Baa3, and in April 2023, S&P upgraded Mattel's debt rating from BB+ to BBB- and maintained a positive outlook. On April 27, 2023 (the "Fall-Away Date"), Mattel provided a certification of the foregoing to the administrative agent under the Credit Agreement, which resulted in certain subsidiary guarantees, liens, covenants, and other restrictions falling away under the Credit Agreement. The obligations of Mattel under the Revolving Credit Facility were previously guaranteed by each domestic subsidiary of Mattel that guaranteed any of Mattel's senior unsecured notes (collectively, the "Guarantors"). On the Fall-Away Date, the foregoing guarantees were released and the obligations of Mattel under the Revolving Credit Facility are instead required to be guaranteed by each existing and future direct and indirect domestic subsidiary of Mattel only to the extent such subsidiary guarantees other indebtedness of Mattel in an aggregate principal or committed amount in excess of $50 million. The Revolving Credit Facility was previously secured by liens on substantially all of Mattel's and the Guarantors' present and after-acquired assets (subject to certain exceptions), including domestic accounts receivable, inventory, certain trademarks and patents, and certain equity interests in direct material subsidiaries of Mattel and the Guarantors, but all such liens were permanently released on the Fall-Away Date. The Credit Agreement contains customary covenants (subject to customary exceptions), including, but not limited to, restrictions on Mattel's and its subsidiaries' ability to merge and consolidate with other companies, incur indebtedness, grant liens or security interests on assets, sell or otherwise dispose of assets, or amend organizational documents. The Credit Agreement requires the maintenance of (a) an interest coverage ratio of not less than 2.75 to 1.00 as of the end of each fiscal quarter and (b) a total leverage ratio not to exceed 3.75 to 1.00 as of the end of each fiscal quarter. Mattel had no borrowings outstanding under the Revolving Credit Facility and no other short-term borrowings outstanding as of September 30, 2023, September 30, 2022, and December 31, 2022. Outstanding letters of credit under the Revolving Credit Facility totaled approximately $9 million, $9 million, and $8 million as of September 30, 2023, September 30, 2022, and December 31, 2022, respectively. |
Long-Term Debt
Long-Term Debt | 9 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt Long-term debt included the following: September 30, September 30, 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 — 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 (21,103) (25,541) (24,356) $ 2,328,897 $ 2,574,459 $ 2,325,644 Less: current portion — (250,000) — Total long-term debt $ 2,328,897 $ 2,324,459 $ 2,325,644 On December 30, 2022, Mattel used cash on hand to redeem and retire the $250 million aggregate principal amount of the 2013 Senior Notes due March 2023. Mattel's 2019 Senior Notes due 2027 were issued pursuant to an indenture dated November 20, 2019, and its 2021 Senior Notes due 2026 and 2021 Senior Notes due 2029 were issued pursuant to an indenture dated March 19, 2021. These indentures contain covenants that limit Mattel's (and some of its subsidiaries') ability to, among other things: (i) incur additional debt or issue certain preferred shares; (ii) pay dividends on or make other distributions in respect of their capital stock or make other restricted payments; (iii) make investments in unrestricted subsidiaries; (iv) create liens; (v) enter into certain sale/leaseback transactions; (vi) merge or consolidate, or sell, transfer or otherwise dispose of substantially all of their assets; and (vii) designate subsidiaries as unrestricted. The indentures also provided that certain of these covenants would be suspended if Mattel achieved a debt rating of BBB-, Baa3, and/or BBB- (or higher) from any two of S&P, Moody's, and Fitch, respectively, and no event of default has occurred. In April 2023, S&P upgraded Mattel’s debt rating from BB+ to BBB- and maintained a positive outlook, and in November 2022, Moody’s previously upgraded Mattel’s debt rating from Ba1 to Baa3. As a result of the upgraded debt ratings and no events of default, the covenants limiting Mattel’s ability to incur additional debt or issue certain preferred shares, pay dividends on or make other distributions in respect of their capital stock or make other restricted payments, and make investments in unrestricted subsidiaries, and certain provisions of the covenant limiting Mattel’s ability to merge or consolidate, or sell, transfer or otherwise dispose of substantially all of their assets, are suspended. If Mattel ceases to have debt ratings of BBB-, Baa3, and/or BBB- (or higher) from any two of S&P, Moody's, and Fitch, respectively, Mattel will thereafter be subject to the suspended covenants with respect to future events. Following the Fall-Away Date under the Revolving Credit Facility, all guarantee obligations of the Guarantors under the 2019 Senior Notes due 2027, 2021 Senior Notes due 2026, and 2021 Senior Notes due 2029 were released, and the obligations of Mattel under the 2019 Senior Notes due 2027, 2021 Senior Notes due 2026, and 2021 Senior Notes due 2029 will be required to be guaranteed by each existing and future direct and indirect domestic subsidiary of Mattel only to the extent such subsidiary guarantees other indebtedness of Mattel in an aggregate principal or committed amount in excess of $50 million. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 9 Months Ended |
Sep. 30, 2023 | |
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 loss, including current period other comprehensive loss and reclassifications from accumulated other comprehensive income (loss): For the Three Months Ended September 30, 2023 Derivative Available-for-Sale Security Employee Benefit Plans Currency Total (In thousands) Accumulated Other Comprehensive Income (Loss), Net of Tax, as of June 30, 2023 $ 5,221 $ — $ (137,042) $ (765,431) $ (897,252) Other comprehensive income (loss) before reclassifications 7,521 — 5 (39,273) (31,747) Amounts reclassified from accumulated other comprehensive income (loss) (5,801) — 659 — (5,142) Net increase (decrease) in other comprehensive income 1,720 — 664 (39,273) (36,889) Accumulated Other Comprehensive Income (Loss), Net of Tax, as of September 30, 2023 $ 6,941 $ — $ (136,378) $ (804,704) $ (934,141) For the Nine Months Ended September 30, 2023 Derivative Available-for-Sale Security Employee Benefit Plans Currency Total (In thousands) Accumulated Other Comprehensive Income (Loss), Net of Tax, as of December 31, 2022 $ 22,732 $ — $ (138,498) $ (795,712) $ (911,478) Other comprehensive (loss) income before reclassifications (1,729) — 20 (8,992) (10,701) Amounts reclassified from accumulated other comprehensive income (loss) (14,062) — 2,100 — (11,962) Net (decrease) increase in other comprehensive income (15,791) — 2,120 (8,992) (22,663) Accumulated Other Comprehensive Income (Loss), Net of Tax, as of September 30, 2023 $ 6,941 $ — $ (136,378) $ (804,704) $ (934,141) For the Three Months Ended September 30, 2022 Derivative Available-for-Sale Security Employee Benefit Plans Currency Total (In thousands) Accumulated Other Comprehensive Income (Loss), Net of Tax, as of June 30, 2022 $ 33,330 $ — $ (151,388) $ (795,090) $ (913,148) Other comprehensive income (loss) before reclassifications 24,715 — 63 (72,643) (47,865) Amounts reclassified from accumulated other comprehensive income (loss) (11,312) — 1,291 — (10,021) Net increase (decrease) in other comprehensive income 13,403 — 1,354 (72,643) (57,886) Accumulated Other Comprehensive Income (Loss), Net of Tax, as of September 30, 2022 $ 46,733 $ — $ (150,034) $ (867,733) $ (971,034) For the Nine Months Ended September 30, 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 58,604 — (35) (78,212) (19,643) Amounts reclassified from accumulated other comprehensive income (loss) (20,667) 3,646 4,100 — (12,921) Net increase (decrease) in other comprehensive income 37,937 3,646 4,065 (78,212) (32,564) Adjustment of accumulated other comprehensive loss to retained earnings — 2,801 — — 2,801 Accumulated Other Comprehensive Income (Loss), Net of Tax, as of September 30, 2022 $ 46,733 $ — $ (150,034) $ (867,733) $ (971,034) The following tables present the classification and amount of the reclassifications from accumulated other comprehensive income (loss) to the consolidated statements of operations: For the Three Months Ended September 30, 2023 September 30, 2022 Statements of Operations (In thousands) Derivative Instruments: Gain on foreign currency forward exchange and other contracts $ 5,784 $ 11,292 Cost of sales Tax effect 17 20 Provision for income taxes $ 5,801 $ 11,312 Net income Employee Benefit Plans: Amortization of prior service credit (a) $ 472 $ 504 Other non-operating (income) expense, net Recognized actuarial loss (a) (1,410) (2,108) Other non-operating (income) expense, net (938) (1,604) Tax effect 279 313 Provision for income taxes $ (659) $ (1,291) Net income (a) The amortization of prior service credit and recognized actuarial loss are included in the computation of net periodic benefit cost. Refer to "Note 15 to the Consolidated Financial Statements—Employee Benefit Plans" for additional information regarding Mattel's net periodic benefit cost. For the Nine Months Ended September 30, 2023 September 30, 2022 Statements of Operations (In thousands) Derivative Instruments: Gain on foreign currency forward exchange and other contracts $ 13,709 $ 20,764 Cost of sales Tax effect 353 (97) Provision for income taxes $ 14,062 $ 20,667 Net income Employee Benefit Plans: Amortization of prior service credit (a) $ 1,416 $ 1,409 Other non-operating (income) expense, net Recognized actuarial loss (a) (4,229) (6,649) Other non-operating (income) expense, net (2,813) (5,240) Tax effect 713 1,140 Provision for income taxes $ (2,100) $ (4,100) Net income (a) The amortization of prior service credit and recognized actuarial loss are included in the computation of net periodic benefit cost. Refer to "Note 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 Accounting Standards Codification 321, Investments—Equity Securities. The adjustment included $3.6 million of accumulated other comprehensive loss reclassified to other non-operating expense (income), net in the consolidated statement of operations and $2.8 million reclassified to retained earnings in the consolidated statement of stockholders' equity. The adjustment, including tax effect, was immaterial to the financial statements. Currency Translation Adjustments During the nine months ended September 30, 2023, currency translation adjustments resulted in a net loss of $9.0 million, primarily due to the weakening of the Russian ruble and Malaysian ringgit against the U.S. dollar, offset by the strengthening of the Mexican peso, British pound sterling, and Brazilian real against the U.S. dollar. During the nine months ended September 30, 2022, currency translation adjustments resulted in a net loss of $78.2 million, primarily due to the weakening of the British pound sterling and the Euro against the U.S. dollar, offset by the strengthening of the Russian ruble against the U.S. dollar. |
Foreign Currency Transaction Ex
Foreign Currency Transaction Exposure | 9 Months Ended |
Sep. 30, 2023 | |
Foreign Currency [Abstract] | |
Foreign Currency Transaction Exposure | Foreign Currency Transaction Exposure Currency transaction gains (losses) included in the consolidated statements of operations were as follows: For the Three Months Ended September 30, September 30, Statements of Operations Classification (In thousands) Currency transaction (losses) $ (2,276) $ (6,689) Operating income/expense Currency transaction gains (losses) 3,301 (41) Other non-operating income/expense, net Currency transaction gains (losses), net $ 1,025 $ (6,730) For the Nine Months Ended September 30, September 30, Statements of Operations Classification (In thousands) Currency transaction (losses) $ (11,987) $ (14,948) Operating income/expense Currency transaction gains (losses) 5,390 (18,832) Other non-operating income/expense, net Currency transaction (losses), net $ (6,597) $ (33,780) |
Derivative Instruments
Derivative Instruments | 9 Months Ended |
Sep. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | Derivative Instruments Mattel seeks to mitigate its exposure to foreign currency transaction risk by monitoring its foreign currency transaction exposure for the year and partially hedging such exposure using foreign currency forward exchange contracts. Mattel uses foreign currency forward exchange contracts as cash flow hedges primarily to hedge its purchases and sales of inventory denominated in foreign currencies. These contracts have maturity dates of up to 24 months. These derivative instruments have been designated as effective cash flow hedges, whereby the unsettled hedges are reported in Mattel's consolidated balance sheets at fair value, with changes in the fair value of the hedges reflected in other comprehensive income ("OCI"). Realized gains and losses for these contracts are recorded in the consolidated statements of operations in the period in which the inventory is sold to customers. Mattel uses foreign currency forward exchange contracts to hedge intercompany loans and advances denominated in foreign currencies. Due to the short-term nature of the contracts involved, Mattel does not use hedge accounting for these contracts, and as such, changes in fair value are recorded in the period of change in the consolidated statements of operations. Mattel utilizes derivative contracts to hedge certain purchases of commodities, which were not material. As of September 30, 2023, September 30, 2022, and December 31, 2022, Mattel held foreign currency forward exchange contracts and other commodity derivative instruments, with notional amounts of approximately $636 million, $771 million, and $674 million, respectively. The following tables present Mattel's derivative assets and liabilities: Derivative Assets Balance Sheet Classification Fair Value September 30, September 30, December 31, (In thousands) Derivatives Designated as Hedging Instruments: Foreign currency forward exchange and other contracts Prepaid expenses and other current assets $ 13,308 $ 41,832 $ 14,899 Foreign currency forward exchange and other contracts Other noncurrent assets 747 8,320 1,501 Total Derivatives Designated as Hedging Instruments $ 14,055 $ 50,152 $ 16,400 Derivatives Not Designated as Hedging Instruments: Foreign currency forward exchange and other contracts Prepaid expenses and other current assets $ 519 $ 3,424 $ 1,163 Total Derivatives Not Designated as Hedging Instruments $ 519 $ 3,424 $ 1,163 $ 14,574 $ 53,576 $ 17,563 Derivative Liabilities Balance Sheet Classification Fair Value September 30, September 30, December 31, (In thousands) Derivatives Designated as Hedging Instruments: Foreign currency forward exchange and other contracts Accrued liabilities $ 1,997 $ 1,981 $ 3,647 Foreign currency forward exchange and other contracts Other noncurrent liabilities 14 194 807 Total Derivatives Designated as Hedging Instruments $ 2,011 $ 2,175 $ 4,454 Derivatives Not Designated as Hedging Instruments: Foreign currency forward exchange and other contracts Accrued liabilities $ 323 $ 3,609 $ 6,261 Foreign currency forward exchange and other contracts Other noncurrent liabilities — 44 39 Total Derivatives Not Designated as Hedging Instruments $ 323 $ 3,653 $ 6,300 $ 2,334 $ 5,828 $ 10,754 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 September 30, September 30, Statements of (In thousands) Foreign Currency Forward Exchange and Other Contracts: Amount of gains recognized in OCI $ 7,521 $ 24,715 Amount of gains reclassified from accumulated OCI to the consolidated statements of operations 5,801 11,312 Cost of sales Derivatives Designated as Hedging Instruments For the Nine Months Ended September 30, September 30, Statements of (In thousands) Foreign Currency Forward Exchange and Other Contracts: Amount of (losses) gains recognized in OCI $ (1,729) $ 58,604 Amount of gains reclassified from accumulated OCI to consolidated statements of operations 14,062 20,667 Cost of sales The net gains reclassified from accumulated other comprehensive loss to the consolidated statements of operations during the three and nine months ended September 30, 2023 and 2022, respectively, were offset by changes in cash flows associated with the underlying hedged transactions. Derivatives Not Designated as Hedging Instruments For the Three Months Ended September 30, September 30, Statements of (In thousands) Amount of Net Gains (Losses) Recognized in the Statements of Operations: Foreign currency forward exchange and other contracts $ 6,805 $ (2,279) Other non-operating (income) expense, net Derivatives Not Designated as Hedging Instruments For the Nine Months Ended September 30, September 30, Statements of (In thousands) Amount of Net Gains Recognized in the Statements of Operations: Foreign currency forward exchange and other contracts $ 25,083 $ 843 Other non-operating (income) expense, net The net gains and losses recognized in the consolidated statements of operations during the three and nine months ended September 30, 2023 and September 30, 2022, respectively, were offset by foreign currency transaction gains and losses on the related derivative balances. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The following tables present information about Mattel's financial assets and liabilities measured and reported in the financial statements at fair value on a recurring basis as of September 30, 2023, September 30, 2022, and December 31, 2022 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. • 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. September 30, 2023 Level 1 Level 2 Level 3 Total (In thousands) Assets: Foreign currency forward exchange and other contracts (a) $ — $ 14,574 $ — $ 14,574 Liabilities: Foreign currency forward exchange and other contracts (a) $ — $ 2,334 $ — $ 2,334 September 30, 2022 Level 1 Level 2 Level 3 Total (In thousands) Assets: Foreign currency forward exchange and other contracts (a) $ — $ 53,576 $ — $ 53,576 Available-for-sale (b) 3,360 — — 3,360 Total assets $ 3,360 $ 53,576 $ — $ 56,936 Liabilities: Foreign currency forward exchange and other contracts (a) $ — $ 5,828 $ — $ 5,828 December 31, 2022 Level 1 Level 2 Level 3 Total (In thousands) Assets: Foreign currency forward exchange and other contracts (a) $ — $ 17,563 $ — $ 17,563 Liabilities: Foreign currency forward exchange and other contracts (a) $ — $ 10,754 $ — $ 10,754 (a) The fair value of the foreign currency forward exchange and other contracts was based on dealer quotes of market forward rates and reflects the amount that Mattel would receive or pay at their maturity dates for contracts involving the same notional amounts, currencies, and maturity dates. (b) The fair value of the available-for-sale security was based on the quoted price on an active public exchange. Other Financial Instruments Mattel's financial instruments included cash and equivalents, accounts receivable and payable, accrued liabilities, short-term borrowings, and long-term debt. The fair values of these instruments, excluding long-term debt, approximate their carrying amounts because of their short-term nature. Cash and equivalents were classified as Level 1 and all other financial instruments were classified as Level 2 within the fair value hierarchy. The estimated fair value of Mattel's long-term debt was $2.13 billion (compared to a carrying amount of $2.35 billion) as of September 30, 2023, $2.35 billion (compared to a carrying amount of $2.60 billion) as of September 30, 2022, and $2.13 billion (compared to a carrying amount of $2.35 billion) as of December 31, 2022. The estimated fair values have been calculated based on broker quotes or rates for the same or similar instruments and were classified as Level 2 within the fair value hierarchy. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The following table reconciles basic and diluted earnings per common share for the three and nine months ended September 30, 2023 and 2022: For the Three Months Ended For the Nine Months Ended September 30, September 30, September 30, September 30, (In thousands, except per share amounts) Basic: Net income $ 146,319 $ 289,882 $ 67,034 $ 377,776 Weighted-average number of common shares 354,139 354,471 354,559 353,394 Basic net income per common share $ 0.41 $ 0.82 $ 0.19 $ 1.07 Diluted: Net income $ 146,319 $ 289,882 $ 67,034 $ 377,776 Weighted-average number of common shares 354,139 354,471 354,559 353,394 Dilutive share-based awards (a) 3,335 5,758 3,418 6,337 Weighted-average number of common and potential common shares 357,474 360,229 357,977 359,731 Diluted net income per common share $ 0.41 $ 0.80 $ 0.19 $ 1.05 |
Employee Benefit Plans
Employee Benefit Plans | 9 Months Ended |
Sep. 30, 2023 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | Employee Benefit PlansMattel 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 2022 Annual Report on Form 10-K. The components of net periodic benefit cost for Mattel's defined benefit pension plans were as follows: For the Three Months Ended For the Nine Months Ended September 30, September 30, September 30, September 30, (In thousands) Service cost $ 848 $ 980 $ 2,548 $ 3,046 Interest cost 5,234 2,996 15,670 9,112 Expected return on plan assets (5,103) (4,776) (15,280) (14,480) Amortization of prior service cost 37 5 112 118 Recognized actuarial loss 1,467 2,133 4,399 6,724 $ 2,483 $ 1,338 $ 7,449 $ 4,520 The components of net periodic benefit cost for Mattel's postretirement benefit plans were as follows: For the Three Months Ended For the Nine Months Ended September 30, September 30, September 30, September 30, (In thousands) Interest cost $ 45 $ 22 $ 134 $ 66 Amortization of prior service credit (509) (509) (1,528) (1,527) Recognized actuarial gain (57) (25) (170) (75) $ (521) $ (512) $ (1,564) $ (1,536) Mattel's service cost component is recorded within operating income while other components of net periodic pension cost and postretirement benefit cost are recorded within other non-operating (income) expense, net. During the nine months ended September 30, 2023, Mattel made cash contributions totaling approximately $11 million related to its defined benefit pension and postretirement benefit plans. During the remainder of 2023, Mattel expects to make additional cash contributions of approximately $3 million. |
Share-Based Payments
Share-Based Payments | 9 Months Ended |
Sep. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Share-Based Payments | Share-Based Payments Mattel has various stock compensation plans, which are described in Part II, Item 8 "Financial Statements and Supplementary Data—Note 8 to the Consolidated Financial Statements—Share-Based Payments" in the 2022 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, non-employee directors, and consultants 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. Compensation expense, included within other selling and administrative expenses in the consolidated statements of operations, related to stock options, RSUs, and performance awards was as follows: For the Three Months Ended For the Nine Months Ended September 30, September 30, September 30, September 30, (In thousands) Stock option compensation expense $ 1,077 $ 5,170 $ 5,673 $ 10,064 RSU compensation expense 12,020 9,643 36,724 27,810 Performance award compensation expense 2,395 3,240 10,028 18,067 $ 15,492 $ 18,053 $ 52,425 $ 55,941 As of September 30, 2023, total unrecognized compensation expense related to unvested share-based payments totaled $110.7 million and is expected to be recognized over a weighted-average period of 2.1 years. Mattel uses treasury shares purchased under its share repurchase program to satisfy stock option exercises and the vesting of RSUs and performance awards. Cash received for stock option exercises, net of taxes, was $26.0 million and $27.7 million for the nine months ended September 30, 2023 and 2022, respectively. |
Other Selling and Administrativ
Other Selling and Administrative Expenses | 9 Months Ended |
Sep. 30, 2023 | |
Other Income and Expenses [Abstract] | |
Other Selling and Administrative Expenses | Other Selling and Administrative Expenses Other selling and administrative expenses included the following: For the Three Months Ended For the Nine Months Ended September 30, September 30, September 30, September 30, (In thousands) Design and development $ 49,781 $ 52,204 $ 148,319 $ 144,145 Intangible asset amortization 9,584 9,308 28,570 28,304 |
Restructuring Charges
Restructuring Charges | 9 Months Ended |
Sep. 30, 2023 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Charges | Restructuring Charges Optimizing for Growth (formerly Capital Light) Mattel's Optimizing for Growth program is a multi-year cost savings program that integrates and expands upon the previously announced Capital Light program (the "Program"). In February 2023, the Program was expanded to include additional initiatives, including actions to further streamline Mattel's organizational structure. In connection with the Program, Mattel recorded severance and other restructuring costs in the following cost and expense categories within operating income in the consolidated statements of operations: For the Three Months Ended For the Nine Months Ended September 30, September 30, September 30, September 30, (In thousands) Cost of sales (a) $ (76) $ 1,366 $ (1,276) $ 9,795 Other selling and administrative expenses (b) 3,082 4,441 31,550 16,602 $ 3,006 $ 5,807 $ 30,274 $ 26,397 (a) Severance and other restructuring charges recorded within cost of sales in the consolidated statements of operations are included in segment operating income in "Note 21 to the Consolidated Financial Statements—Segment Information." (b) Severance and other restructuring charges 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 within operating income related to the Program: Liability at December 31, 2022 Charges Payments/Utilization Liability at (In thousands) Severance $ 9,355 $ 21,607 $ (20,104) $ 10,858 Other restructuring charges (a) 3,540 8,667 (10,650) 1,557 $ 12,895 $ 30,274 $ (30,754) $ 12,415 Liability at December 31, 2021 Charges Payments/Utilization Liability at (In thousands) Severance $ 12,411 $ 14,021 $ (12,290) $ 14,142 Other restructuring charges (a) 2,834 12,376 (14,278) 932 $ 15,245 $ 26,397 $ (26,568) $ 15,074 (a) Other restructuring charges consist primarily of expenses associated with the restructuring of commercial and corporate functions and consolidation of manufacturing facilities. As of September 30, 2023, Mattel had recorded cumulative severance and other restructuring charges related to the Program of approximately $196 million, which included approximately $73 million of non-cash charges, including $45.4 million recognized within other non-operating expense, net, during the fourth quarter of 2022 related to the liquidation of Mattel's subsidiary in Argentina. Furthermore, cumulatively, in conjunction with previous actions taken under the Capital Light program, total expected cash expenditures are approximately $195 to $225 million and total expected non-cash charges are approximately $75 million. Other Cost Savings Actions In the third quarter of 2023, Mattel committed to actions not included in the Program to discontinue production at a plant located in China. In connection with these actions, Mattel recorded severance expense of $25.3 million within other selling and administrative expenses in the consolidated statements of operations in the three months ended September 30, 2023, which are recorded in corporate and other expense in "Note 21 to the Consolidated Financial Statements—Segment Information." The $25.3 million of severance expense accrued during the quarter remained outstanding as of September 30, 2023. Total expected cash charges in connection with these actions are approximately $30 to $35 million and total expected non-cash charges are approximately $6 million. Additionally, in the first nine months of 2023, Mattel executed other cost savings actions not included in the Program to streamline its organizational structure. In connection with these actions, Mattel recorded severance expense of $6.1 million within other selling and administrative expenses in the consolidated statement of operations. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Mattel's provision for income taxes was $309.3 million and $296.8 million for the three and nine months ended September 30, 2023, respectively, and $80.0 million and $130.5 million for the three and nine months ended September 30, 2022, respectively. Mattel recognized a net discrete income tax expense of $200.7 million and $201.0 million during the three and nine months ended September 30, 2023, respectively, which included the establishment of a valuation allowance of $212.4 million on certain foreign deferred tax assets resulting from the planned intra-group transfer of certain intellectual property ("IP") rights, partially offset by undistributed earnings of certain foreign subsidiaries and reassessments of prior years' tax liabilities. Mattel recognized a net discrete income tax benefit of $19.4 million and $4.8 million during the three and nine months ended September 30, 2022, respectively, 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. During the third quarter of 2023, Mattel finalized a plan to complete an intra-group transfer of certain IP rights, resulting in the establishment of a valuation allowance on certain foreign deferred tax assets of $212.4 million, that will not be realized upon execution of the plan. 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 $17 million related to the settlement of tax audits and/or the expiration of statutes of limitations. The ultimate settlement of any particular issue with the applicable taxing authority could have a material impact on Mattel's consolidated financial statements. |
Contingencies
Contingencies | 9 Months Ended |
Sep. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Contingencies Litigation Related to Yellowstone do Brasil Ltda. In April 1999, Yellowstone do Brasil Ltda. (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 September 30, 2023, Mattel assessed its probable loss related to this 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 U.S. federal courts' Multi-District Litigation program. In June 2022, the court denied the plaintiffs' motion to certify damages and injunctive relief classes under New York law, but granted plaintiffs' request to certify a New York issue class to resolve two issues on a class-wide basis. In October 2022, the United States Court of Appeals for the Second Circuit denied plaintiffs' petition to appeal the denial of certification of the damages and injunctive relief classes. Thirty-one additional lawsuits filed between April 2019 and September 2023 are pending against Fisher-Price, Inc. and Mattel, Inc. alleging that a product defect in the Sleeper caused the fatalities of or injuries to thirty-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 have threatened 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), which is also stayed. 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 for the lawsuits cannot be made at this time. |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2023 | |
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 reportable segments are: (i) North America, which consists of the United States and Canada; (ii) International; and (iii) American Girl. The North America and International segments sell products across Mattel's categories, although some products are developed and adapted for particular international markets. The following tables present information regarding Mattel's net sales, operating income, and assets by reportable segment. The corporate and other expense category includes operating costs not allocated to individual segments, including charges related to incentive and share-based compensation, corporate headquarters functions managed on a worldwide basis, the impact of changes in foreign currency exchange rates on intercompany transactions, and certain severance and other restructuring costs. It is impracticable for Mattel to present net sales by categories, brands, or products, as trade discounts and other allowances are generally recorded in the financial accounting systems by customer. For the Three Months Ended For the Nine Months Ended September 30, September 30, September 30, September 30, (In thousands) Net Sales by Segment North America $ 1,104,377 $ 1,002,126 $ 2,138,210 $ 2,330,747 International 771,827 704,640 1,578,632 1,584,878 American Girl 42,584 49,014 103,689 117,142 Net sales $ 1,918,788 $ 1,755,780 $ 3,820,531 $ 4,032,767 For the Three Months Ended For the Nine Months Ended September 30, September 30, September 30, September 30, (In thousands) Operating Income by Segment (a) North America $ 405,667 $ 337,305 $ 589,664 $ 707,605 International 202,550 162,828 245,773 268,012 American Girl (4,572) (8,964) (24,073) (20,426) 603,645 491,169 811,364 955,191 Corporate and other expense (b) (129,787) (99,797) (389,768) (358,672) Operating income 473,858 391,372 421,596 596,519 Interest expense 30,716 33,870 92,486 99,730 Interest (income) (4,569) (1,903) (15,409) (5,064) Other non-operating (income) expense, net (2,391) (4,293) (5,976) 11,966 Income before income taxes $ 450,102 $ 363,698 $ 350,495 $ 489,887 (a) Segment operating income included (i) severance and other restructuring charges of $(0.1) million and $(1.3) million for the three and nine months ended September 30, 2023, respectively, and $1.4 million and $9.8 million for the three and nine months ended September 30, 2022, respectively, which were allocated to the North America and International segments; and (ii) a loss on sale of assets of $1.8 million from the sale of a production facility for the three and nine months ended September 30, 2023, which was recorded in the International segment; and a gain on sale of assets of $15.2 million from the sale of the American Girl corporate office and distribution center for the nine months ended September 30, 2022, which was recorded in the American Girl segment. (b) Corporate and other expense included (i) severance and other restructuring charges of $29.3 million and $63.0 million for the three and nine months ended September 30, 2023 and $4.5 million and $17.1 million for the three and nine months ended September 30, 2022, respectively; and (ii) inclined sleeper product recall litigation expense of $1.3 million and $9.0 million for the three and nine months ended September 30, 2023, respectively; and $0.7 million and $1.2 million for the three months and nine months ended September 30, 2022, respectively. Segment assets are comprised of accounts receivable, net and inventories. September 30, September 30, December 31, (In thousands) Assets by Segment North America $ 1,194,978 $ 1,233,835 $ 778,897 International 1,024,549 961,097 756,830 American Girl 75,272 85,705 58,833 2,294,799 2,280,637 1,594,560 Corporate and other 66,769 184,666 159,725 Accounts receivable, net and inventories $ 2,361,568 $ 2,465,303 $ 1,754,285 Geographic Information The following table presents information regarding Mattel's net sales by geographic area. Net sales are attributed to countries based on the location of the customer: For the Three Months Ended For the Nine Months Ended September 30, September 30, September 30, September 30, (In thousands) Net Sales by Geographic Area North America $ 1,146,961 $ 1,051,140 $ 2,241,899 $ 2,447,889 International EMEA 423,923 410,187 874,972 958,839 Latin America 262,071 221,805 475,648 418,531 Asia Pacific 85,833 72,648 228,012 207,508 Total International 771,827 704,640 1,578,632 1,584,878 Net sales $ 1,918,788 $ 1,755,780 $ 3,820,531 $ 4,032,767 |
New Accounting Pronouncements
New Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
New Accounting Pronouncements | New Accounting Pronouncements Accounting Pronouncements Recently Adopted |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of PresentationThe 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. |
Accounting Pronouncements Recently Adopted | Accounting Pronouncements Recently Adopted |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories included the following: September 30, September 30, December 31, (In thousands) Raw materials and work in process $ 102,582 $ 163,962 $ 139,212 Finished goods 687,939 919,807 754,852 $ 790,521 $ 1,083,769 $ 894,064 |
Property, Plant, and Equipmen_2
Property, Plant, and Equipment, Net (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant, and Equipment | Property, plant, and equipment, net included the following: September 30, September 30, December 31, (In thousands) Land $ 19,566 $ 19,198 $ 18,045 Buildings 311,030 303,862 303,827 Machinery and equipment 623,687 711,000 654,437 Software 232,995 343,172 336,716 Tools, dies, and molds 494,070 526,639 510,398 Leasehold improvements 123,240 105,223 104,135 Construction in progress 39,533 61,938 79,742 1,844,121 2,071,032 2,007,300 Less: accumulated depreciation (1,386,919) (1,626,590) (1,538,168) $ 457,202 $ 444,442 $ 469,132 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets, Net (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | In the third quarter of 2023, Mattel performed its annual impairment test and determined that goodwill was not impaired. The change in the carrying amount of goodwill by reporting unit for the nine months ended September 30, 2023 is shown below. Brand-specific goodwill held by foreign subsidiaries is allocated to the North America reporting unit selling those brands, thereby causing a foreign currency translation impact. December 31, Currency September 30, (In thousands) North America $ 731,993 $ 265 $ 732,258 International 438,987 1,226 440,213 American Girl 207,571 — 207,571 $ 1,378,551 $ 1,491 $ 1,380,042 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Liabilities | Accrued liabilities included the following: September 30, September 30, December 31, (In thousands) Advertising and promotion $ 105,218 $ 100,091 $ 115,707 Incentive compensation 89,142 66,830 2,889 Current lease liabilities 76,021 72,591 75,297 Royalties 74,801 78,186 65,330 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt | Long-term debt included the following: September 30, September 30, 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 — 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 (21,103) (25,541) (24,356) $ 2,328,897 $ 2,574,459 $ 2,325,644 Less: current portion — (250,000) — Total long-term debt $ 2,328,897 $ 2,324,459 $ 2,325,644 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Equity [Abstract] | |
Schedule of Changes in Accumulated Other Comprehensive (Loss) Income | The following tables present changes in the accumulated balances for each component of other comprehensive loss, including current period other comprehensive loss and reclassifications from accumulated other comprehensive income (loss): For the Three Months Ended September 30, 2023 Derivative Available-for-Sale Security Employee Benefit Plans Currency Total (In thousands) Accumulated Other Comprehensive Income (Loss), Net of Tax, as of June 30, 2023 $ 5,221 $ — $ (137,042) $ (765,431) $ (897,252) Other comprehensive income (loss) before reclassifications 7,521 — 5 (39,273) (31,747) Amounts reclassified from accumulated other comprehensive income (loss) (5,801) — 659 — (5,142) Net increase (decrease) in other comprehensive income 1,720 — 664 (39,273) (36,889) Accumulated Other Comprehensive Income (Loss), Net of Tax, as of September 30, 2023 $ 6,941 $ — $ (136,378) $ (804,704) $ (934,141) For the Nine Months Ended September 30, 2023 Derivative Available-for-Sale Security Employee Benefit Plans Currency Total (In thousands) Accumulated Other Comprehensive Income (Loss), Net of Tax, as of December 31, 2022 $ 22,732 $ — $ (138,498) $ (795,712) $ (911,478) Other comprehensive (loss) income before reclassifications (1,729) — 20 (8,992) (10,701) Amounts reclassified from accumulated other comprehensive income (loss) (14,062) — 2,100 — (11,962) Net (decrease) increase in other comprehensive income (15,791) — 2,120 (8,992) (22,663) Accumulated Other Comprehensive Income (Loss), Net of Tax, as of September 30, 2023 $ 6,941 $ — $ (136,378) $ (804,704) $ (934,141) For the Three Months Ended September 30, 2022 Derivative Available-for-Sale Security Employee Benefit Plans Currency Total (In thousands) Accumulated Other Comprehensive Income (Loss), Net of Tax, as of June 30, 2022 $ 33,330 $ — $ (151,388) $ (795,090) $ (913,148) Other comprehensive income (loss) before reclassifications 24,715 — 63 (72,643) (47,865) Amounts reclassified from accumulated other comprehensive income (loss) (11,312) — 1,291 — (10,021) Net increase (decrease) in other comprehensive income 13,403 — 1,354 (72,643) (57,886) Accumulated Other Comprehensive Income (Loss), Net of Tax, as of September 30, 2022 $ 46,733 $ — $ (150,034) $ (867,733) $ (971,034) For the Nine Months Ended September 30, 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 58,604 — (35) (78,212) (19,643) Amounts reclassified from accumulated other comprehensive income (loss) (20,667) 3,646 4,100 — (12,921) Net increase (decrease) in other comprehensive income 37,937 3,646 4,065 (78,212) (32,564) Adjustment of accumulated other comprehensive loss to retained earnings — 2,801 — — 2,801 Accumulated Other Comprehensive Income (Loss), Net of Tax, as of September 30, 2022 $ 46,733 $ — $ (150,034) $ (867,733) $ (971,034) |
Schedule of Consolidated Statement of Operations Line Items Affected by Reclassifications from Accumulated Other Comprehensive Income (Loss) | The following tables present the classification and amount of the reclassifications from accumulated other comprehensive income (loss) to the consolidated statements of operations: For the Three Months Ended September 30, 2023 September 30, 2022 Statements of Operations (In thousands) Derivative Instruments: Gain on foreign currency forward exchange and other contracts $ 5,784 $ 11,292 Cost of sales Tax effect 17 20 Provision for income taxes $ 5,801 $ 11,312 Net income Employee Benefit Plans: Amortization of prior service credit (a) $ 472 $ 504 Other non-operating (income) expense, net Recognized actuarial loss (a) (1,410) (2,108) Other non-operating (income) expense, net (938) (1,604) Tax effect 279 313 Provision for income taxes $ (659) $ (1,291) Net income (a) The amortization of prior service credit and recognized actuarial loss are included in the computation of net periodic benefit cost. Refer to "Note 15 to the Consolidated Financial Statements—Employee Benefit Plans" for additional information regarding Mattel's net periodic benefit cost. For the Nine Months Ended September 30, 2023 September 30, 2022 Statements of Operations (In thousands) Derivative Instruments: Gain on foreign currency forward exchange and other contracts $ 13,709 $ 20,764 Cost of sales Tax effect 353 (97) Provision for income taxes $ 14,062 $ 20,667 Net income Employee Benefit Plans: Amortization of prior service credit (a) $ 1,416 $ 1,409 Other non-operating (income) expense, net Recognized actuarial loss (a) (4,229) (6,649) Other non-operating (income) expense, net (2,813) (5,240) Tax effect 713 1,140 Provision for income taxes $ (2,100) $ (4,100) Net income (a) The amortization of prior service credit and recognized actuarial loss are included in the computation of net periodic benefit cost. Refer to "Note 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) | 9 Months Ended |
Sep. 30, 2023 | |
Foreign Currency [Abstract] | |
Schedule of Currency Transaction Exposure | Currency transaction gains (losses) included in the consolidated statements of operations were as follows: For the Three Months Ended September 30, September 30, Statements of Operations Classification (In thousands) Currency transaction (losses) $ (2,276) $ (6,689) Operating income/expense Currency transaction gains (losses) 3,301 (41) Other non-operating income/expense, net Currency transaction gains (losses), net $ 1,025 $ (6,730) For the Nine Months Ended September 30, September 30, Statements of Operations Classification (In thousands) Currency transaction (losses) $ (11,987) $ (14,948) Operating income/expense Currency transaction gains (losses) 5,390 (18,832) Other non-operating income/expense, net Currency transaction (losses), net $ (6,597) $ (33,780) |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
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 September 30, September 30, December 31, (In thousands) Derivatives Designated as Hedging Instruments: Foreign currency forward exchange and other contracts Prepaid expenses and other current assets $ 13,308 $ 41,832 $ 14,899 Foreign currency forward exchange and other contracts Other noncurrent assets 747 8,320 1,501 Total Derivatives Designated as Hedging Instruments $ 14,055 $ 50,152 $ 16,400 Derivatives Not Designated as Hedging Instruments: Foreign currency forward exchange and other contracts Prepaid expenses and other current assets $ 519 $ 3,424 $ 1,163 Total Derivatives Not Designated as Hedging Instruments $ 519 $ 3,424 $ 1,163 $ 14,574 $ 53,576 $ 17,563 Derivative Liabilities Balance Sheet Classification Fair Value September 30, September 30, December 31, (In thousands) Derivatives Designated as Hedging Instruments: Foreign currency forward exchange and other contracts Accrued liabilities $ 1,997 $ 1,981 $ 3,647 Foreign currency forward exchange and other contracts Other noncurrent liabilities 14 194 807 Total Derivatives Designated as Hedging Instruments $ 2,011 $ 2,175 $ 4,454 Derivatives Not Designated as Hedging Instruments: Foreign currency forward exchange and other contracts Accrued liabilities $ 323 $ 3,609 $ 6,261 Foreign currency forward exchange and other contracts Other noncurrent liabilities — 44 39 Total Derivatives Not Designated as Hedging Instruments $ 323 $ 3,653 $ 6,300 $ 2,334 $ 5,828 $ 10,754 |
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 September 30, September 30, Statements of (In thousands) Foreign Currency Forward Exchange and Other Contracts: Amount of gains recognized in OCI $ 7,521 $ 24,715 Amount of gains reclassified from accumulated OCI to the consolidated statements of operations 5,801 11,312 Cost of sales Derivatives Designated as Hedging Instruments For the Nine Months Ended September 30, September 30, Statements of (In thousands) Foreign Currency Forward Exchange and Other Contracts: Amount of (losses) gains recognized in OCI $ (1,729) $ 58,604 Amount of gains reclassified from accumulated OCI to consolidated statements of operations 14,062 20,667 Cost of sales |
Schedule of Derivatives Not Designated as Hedging Instruments by Classification and Amount of Gains and Losses | The net gains reclassified from accumulated other comprehensive loss to the consolidated statements of operations during the three and nine months ended September 30, 2023 and 2022, respectively, were offset by changes in cash flows associated with the underlying hedged transactions. Derivatives Not Designated as Hedging Instruments For the Three Months Ended September 30, September 30, Statements of (In thousands) Amount of Net Gains (Losses) Recognized in the Statements of Operations: Foreign currency forward exchange and other contracts $ 6,805 $ (2,279) Other non-operating (income) expense, net Derivatives Not Designated as Hedging Instruments For the Nine Months Ended September 30, September 30, Statements of (In thousands) Amount of Net Gains Recognized in the Statements of Operations: Foreign currency forward exchange and other contracts $ 25,083 $ 843 Other non-operating (income) expense, net |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Financial Assets and Liabilities | September 30, 2023 Level 1 Level 2 Level 3 Total (In thousands) Assets: Foreign currency forward exchange and other contracts (a) $ — $ 14,574 $ — $ 14,574 Liabilities: Foreign currency forward exchange and other contracts (a) $ — $ 2,334 $ — $ 2,334 September 30, 2022 Level 1 Level 2 Level 3 Total (In thousands) Assets: Foreign currency forward exchange and other contracts (a) $ — $ 53,576 $ — $ 53,576 Available-for-sale (b) 3,360 — — 3,360 Total assets $ 3,360 $ 53,576 $ — $ 56,936 Liabilities: Foreign currency forward exchange and other contracts (a) $ — $ 5,828 $ — $ 5,828 December 31, 2022 Level 1 Level 2 Level 3 Total (In thousands) Assets: Foreign currency forward exchange and other contracts (a) $ — $ 17,563 $ — $ 17,563 Liabilities: Foreign currency forward exchange and other contracts (a) $ — $ 10,754 $ — $ 10,754 (a) The fair value of the foreign currency forward exchange and other contracts was based on dealer quotes of market forward rates and reflects the amount that Mattel would receive or pay at their maturity dates for contracts involving the same notional amounts, currencies, and maturity dates. (b) The fair value of the available-for-sale security was based on the quoted price on an active public exchange. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share | The following table reconciles basic and diluted earnings per common share for the three and nine months ended September 30, 2023 and 2022: For the Three Months Ended For the Nine Months Ended September 30, September 30, September 30, September 30, (In thousands, except per share amounts) Basic: Net income $ 146,319 $ 289,882 $ 67,034 $ 377,776 Weighted-average number of common shares 354,139 354,471 354,559 353,394 Basic net income per common share $ 0.41 $ 0.82 $ 0.19 $ 1.07 Diluted: Net income $ 146,319 $ 289,882 $ 67,034 $ 377,776 Weighted-average number of common shares 354,139 354,471 354,559 353,394 Dilutive share-based awards (a) 3,335 5,758 3,418 6,337 Weighted-average number of common and potential common shares 357,474 360,229 357,977 359,731 Diluted net income per common share $ 0.41 $ 0.80 $ 0.19 $ 1.05 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Retirement Benefits [Abstract] | |
Schedule of Components of Net Periodic Benefit Cost | The components of net periodic benefit cost for Mattel's defined benefit pension plans were as follows: For the Three Months Ended For the Nine Months Ended September 30, September 30, September 30, September 30, (In thousands) Service cost $ 848 $ 980 $ 2,548 $ 3,046 Interest cost 5,234 2,996 15,670 9,112 Expected return on plan assets (5,103) (4,776) (15,280) (14,480) Amortization of prior service cost 37 5 112 118 Recognized actuarial loss 1,467 2,133 4,399 6,724 $ 2,483 $ 1,338 $ 7,449 $ 4,520 The components of net periodic benefit cost for Mattel's postretirement benefit plans were as follows: For the Three Months Ended For the Nine Months Ended September 30, September 30, September 30, September 30, (In thousands) Interest cost $ 45 $ 22 $ 134 $ 66 Amortization of prior service credit (509) (509) (1,528) (1,527) Recognized actuarial gain (57) (25) (170) (75) $ (521) $ (512) $ (1,564) $ (1,536) |
Share-Based Payments (Tables)
Share-Based Payments (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
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 was as follows: For the Three Months Ended For the Nine Months Ended September 30, September 30, September 30, September 30, (In thousands) Stock option compensation expense $ 1,077 $ 5,170 $ 5,673 $ 10,064 RSU compensation expense 12,020 9,643 36,724 27,810 Performance award compensation expense 2,395 3,240 10,028 18,067 $ 15,492 $ 18,053 $ 52,425 $ 55,941 |
Other Selling and Administrat_2
Other Selling and Administrative Expenses (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Other Income and Expenses [Abstract] | |
Schedule of Other Selling and Administrative Expenses | Other selling and administrative expenses included the following: For the Three Months Ended For the Nine Months Ended September 30, September 30, September 30, September 30, (In thousands) Design and development $ 49,781 $ 52,204 $ 148,319 $ 144,145 Intangible asset amortization 9,584 9,308 28,570 28,304 |
Restructuring Charges (Tables)
Restructuring Charges (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Severance and Other Restructuring Costs | In connection with the Program, Mattel recorded severance and other restructuring costs in the following cost and expense categories within operating income in the consolidated statements of operations: For the Three Months Ended For the Nine Months Ended September 30, September 30, September 30, September 30, (In thousands) Cost of sales (a) $ (76) $ 1,366 $ (1,276) $ 9,795 Other selling and administrative expenses (b) 3,082 4,441 31,550 16,602 $ 3,006 $ 5,807 $ 30,274 $ 26,397 (a) Severance and other restructuring charges recorded within cost of sales in the consolidated statements of operations are included in segment operating income in "Note 21 to the Consolidated Financial Statements—Segment Information." (b) Severance and other restructuring charges 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." |
Schedule of Severance and Other Restructuring Charges Activity | The following tables summarize Mattel's severance and other restructuring charges activity within operating income related to the Program: Liability at December 31, 2022 Charges Payments/Utilization Liability at (In thousands) Severance $ 9,355 $ 21,607 $ (20,104) $ 10,858 Other restructuring charges (a) 3,540 8,667 (10,650) 1,557 $ 12,895 $ 30,274 $ (30,754) $ 12,415 Liability at December 31, 2021 Charges Payments/Utilization Liability at (In thousands) Severance $ 12,411 $ 14,021 $ (12,290) $ 14,142 Other restructuring charges (a) 2,834 12,376 (14,278) 932 $ 15,245 $ 26,397 $ (26,568) $ 15,074 (a) Other restructuring charges consist primarily of expenses associated with the restructuring of commercial and corporate functions and consolidation of manufacturing facilities. |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Revenues from Segment to Consolidated | The following tables present information regarding Mattel's net sales, operating income, and assets by reportable segment. The corporate and other expense category includes operating costs not allocated to individual segments, including charges related to incentive and share-based compensation, corporate headquarters functions managed on a worldwide basis, the impact of changes in foreign currency exchange rates on intercompany transactions, and certain severance and other restructuring costs. It is impracticable for Mattel to present net sales by categories, brands, or products, as trade discounts and other allowances are generally recorded in the financial accounting systems by customer. For the Three Months Ended For the Nine Months Ended September 30, September 30, September 30, September 30, (In thousands) Net Sales by Segment North America $ 1,104,377 $ 1,002,126 $ 2,138,210 $ 2,330,747 International 771,827 704,640 1,578,632 1,584,878 American Girl 42,584 49,014 103,689 117,142 Net sales $ 1,918,788 $ 1,755,780 $ 3,820,531 $ 4,032,767 For the Three Months Ended For the Nine Months Ended September 30, September 30, September 30, September 30, (In thousands) Operating Income by Segment (a) North America $ 405,667 $ 337,305 $ 589,664 $ 707,605 International 202,550 162,828 245,773 268,012 American Girl (4,572) (8,964) (24,073) (20,426) 603,645 491,169 811,364 955,191 Corporate and other expense (b) (129,787) (99,797) (389,768) (358,672) Operating income 473,858 391,372 421,596 596,519 Interest expense 30,716 33,870 92,486 99,730 Interest (income) (4,569) (1,903) (15,409) (5,064) Other non-operating (income) expense, net (2,391) (4,293) (5,976) 11,966 Income before income taxes $ 450,102 $ 363,698 $ 350,495 $ 489,887 (a) Segment operating income included (i) severance and other restructuring charges of $(0.1) million and $(1.3) million for the three and nine months ended September 30, 2023, respectively, and $1.4 million and $9.8 million for the three and nine months ended September 30, 2022, respectively, which were allocated to the North America and International segments; and (ii) a loss on sale of assets of $1.8 million from the sale of a production facility for the three and nine months ended September 30, 2023, which was recorded in the International segment; and a gain on sale of assets of $15.2 million from the sale of the American Girl corporate office and distribution center for the nine months ended September 30, 2022, which was recorded in the American Girl segment. (b) Corporate and other expense included (i) severance and other restructuring charges of $29.3 million and $63.0 million for the three and nine months ended September 30, 2023 and $4.5 million and $17.1 million for the three and nine months ended September 30, 2022, respectively; and (ii) inclined sleeper product recall litigation expense of $1.3 million and $9.0 million for the three and nine months ended September 30, 2023, respectively; and $0.7 million and $1.2 million for the three months and nine months ended September 30, 2022, respectively. |
Schedule of Segment Assets | Segment assets are comprised of accounts receivable, net and inventories. September 30, September 30, December 31, (In thousands) Assets by Segment North America $ 1,194,978 $ 1,233,835 $ 778,897 International 1,024,549 961,097 756,830 American Girl 75,272 85,705 58,833 2,294,799 2,280,637 1,594,560 Corporate and other 66,769 184,666 159,725 Accounts receivable, net and inventories $ 2,361,568 $ 2,465,303 $ 1,754,285 |
Schedule of Revenues by Geographic Area | The following table presents information regarding Mattel's net sales by geographic area. Net sales are attributed to countries based on the location of the customer: For the Three Months Ended For the Nine Months Ended September 30, September 30, September 30, September 30, (In thousands) Net Sales by Geographic Area North America $ 1,146,961 $ 1,051,140 $ 2,241,899 $ 2,447,889 International EMEA 423,923 410,187 874,972 958,839 Latin America 262,071 221,805 475,648 418,531 Asia Pacific 85,833 72,648 228,012 207,508 Total International 771,827 704,640 1,578,632 1,584,878 Net sales $ 1,918,788 $ 1,755,780 $ 3,820,531 $ 4,032,767 |
Accounts Receivable, Net (Detai
Accounts Receivable, Net (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 |
Receivables [Abstract] | |||
Accounts receivable, allowances for credit losses | $ 12.5 | $ 27.6 | $ 12.5 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 |
Inventory Disclosure [Abstract] | |||
Raw materials and work in process | $ 102,582 | $ 139,212 | $ 163,962 |
Finished goods | 687,939 | 754,852 | 919,807 |
Inventories | $ 790,521 | $ 894,064 | $ 1,083,769 |
Property, Plant, and Equipmen_3
Property, Plant, and Equipment, Net - Schedule of Property, Plant, and Equipment (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 |
Property, Plant and Equipment [Line Items] | |||
Property, plant, and equipment, gross | $ 1,844,121 | $ 2,007,300 | $ 2,071,032 |
Less: accumulated depreciation | (1,386,919) | (1,538,168) | (1,626,590) |
Property, plant, and equipment, net | 457,202 | 469,132 | 444,442 |
Land | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant, and equipment, gross | 19,566 | 18,045 | 19,198 |
Buildings | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant, and equipment, gross | 311,030 | 303,827 | 303,862 |
Machinery and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant, and equipment, gross | 623,687 | 654,437 | 711,000 |
Software | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant, and equipment, gross | 232,995 | 336,716 | 343,172 |
Tools, dies, and molds | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant, and equipment, gross | 494,070 | 510,398 | 526,639 |
Leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant, and equipment, gross | 123,240 | 104,135 | 105,223 |
Construction in progress | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant, and equipment, gross | $ 39,533 | $ 79,742 | $ 61,938 |
Property, Plant, and Equipment
Property, Plant, and Equipment - Narrative (Details) - Middleton, Wisconsin - American Girl Corporate Offices and Distribution Center $ in Millions | 3 Months Ended |
Jun. 30, 2022 USD ($) | |
Property, Plant and Equipment [Line Items] | |
Proceeds from sale of property, plant, and equipment | $ 23.8 |
Gain on sale of assets | $ 15.2 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets, Net - Goodwill (Details) - USD ($) | 3 Months Ended | 9 Months Ended |
Sep. 30, 2023 | Sep. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Goodwill, impairment loss | $ 0 | |
Goodwill [Roll Forward] | ||
Balance at beginning of period | $ 1,378,551,000 | |
Currency Exchange Rate Impact | 1,491,000 | |
Balance at end of period | 1,380,042,000 | 1,380,042,000 |
North America | ||
Goodwill [Roll Forward] | ||
Balance at beginning of period | 731,993,000 | |
Currency Exchange Rate Impact | 265,000 | |
Balance at end of period | 732,258,000 | 732,258,000 |
International | ||
Goodwill [Roll Forward] | ||
Balance at beginning of period | 438,987,000 | |
Currency Exchange Rate Impact | 1,226,000 | |
Balance at end of period | 440,213,000 | 440,213,000 |
American Girl | ||
Goodwill [Roll Forward] | ||
Balance at beginning of period | 207,571,000 | |
Currency Exchange Rate Impact | 0 | |
Balance at end of period | $ 207,571,000 | $ 207,571,000 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets, Net - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||||
Intangible assets, net | $ 397,821,000 | $ 426,283,000 | $ 397,821,000 | $ 426,283,000 | $ 425,100,000 |
Intangible assets, accumulated amortization | 396,800,000 | 355,300,000 | 396,800,000 | 355,300,000 | $ 364,900,000 |
Impairment of amortizable intangible assets | $ 0 | $ 0 | $ 0 | $ 0 |
Accrued Liabilities (Details)
Accrued Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 |
Payables and Accruals [Abstract] | |||
Advertising and promotion | $ 105,218 | $ 115,707 | $ 100,091 |
Incentive compensation | 89,142 | 2,889 | 66,830 |
Current lease liabilities | $ 76,021 | $ 75,297 | $ 72,591 |
Operating lease, liability, current, statement of financial position [extensible list] | Accrued liabilities | Accrued liabilities | Accrued liabilities |
Royalties | $ 74,801 | $ 65,330 | $ 78,186 |
Supplier Finance Program (Detai
Supplier Finance Program (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 |
Payables and Accruals [Abstract] | |||
Accounts payable | $ 90.5 | $ 86 | $ 156.6 |
Seasonal Financing (Details)
Seasonal Financing (Details) | Sep. 15, 2022 USD ($) | Sep. 30, 2023 USD ($) | Dec. 31, 2022 USD ($) | Sep. 30, 2022 USD ($) |
Debt Instrument [Line Items] | ||||
Other short-term borrowings | $ 0 | $ 0 | $ 0 | |
Credit Agreement | ||||
Debt Instrument [Line Items] | ||||
Outstanding letters of credit | 9,000,000 | 8,000,000 | 9,000,000 | |
Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Aggregate commitment under the credit facility | $ 50,000,000 | |||
Outstanding borrowings | $ 0 | $ 0 | $ 0 | |
Revolving Credit Facility | Credit Agreement | ||||
Debt Instrument [Line Items] | ||||
Aggregate commitment under the credit facility | $ 1,400,000,000 | |||
Covenant, interest coverage ratio, minimum | 2.75 | |||
Covenant, leverage ratio, maximum | 3.75 | |||
Revolving Credit Facility | Credit Agreement | Minimum | Secured Overnight Financing Rate (SOFR) | ||||
Debt Instrument [Line Items] | ||||
Interest rate margin for loans (as a percent) | 1.125% | |||
Revolving Credit Facility | Credit Agreement | Minimum | Base Rate | ||||
Debt Instrument [Line Items] | ||||
Interest rate margin for loans (as a percent) | 0.125% | |||
Revolving Credit Facility | Credit Agreement | Maximum | Secured Overnight Financing Rate (SOFR) | ||||
Debt Instrument [Line Items] | ||||
Interest rate margin for loans (as a percent) | 2% | |||
Revolving Credit Facility | Credit Agreement | Maximum | Base Rate | ||||
Debt Instrument [Line Items] | ||||
Interest rate margin for loans (as a percent) | 1% |
Long-Term Debt - Schedule of De
Long-Term Debt - Schedule of Debt (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 |
Debt Instrument [Line Items] | |||
Long-term debt | $ 2,350,000 | $ 2,350,000 | $ 2,600,000 |
Debt issuance costs and debt discount | (21,103) | (24,356) | (25,541) |
Long-term debt, net | 2,328,897 | 2,325,644 | 2,574,459 |
Less: current portion | 0 | 0 | (250,000) |
Total long-term debt | 2,328,897 | 2,325,644 | 2,324,459 |
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 | 0 | 0 | 250,000 |
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 ($) | Dec. 30, 2022 | Apr. 30, 2023 |
Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Line of credit facility, threshold subsidiary guarantees other indebtedness | $ 50,000,000 | |
Senior Notes | 2013 Senior Notes due March 2023 | ||
Debt Instrument [Line Items] | ||
Redemption of debt | $ 250,000,000 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) - Changes in Accumulated Balances (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||||
Beginning balance | $ 1,962,374 | $ 1,937,661 | $ 2,056,269 | $ 1,728,049 | $ 1,618,067 | $ 1,568,849 | $ 2,056,269 | $ 1,568,849 |
Other comprehensive income (loss) before reclassifications | (31,747) | (47,865) | (10,701) | (19,643) | ||||
Amounts reclassified from accumulated other comprehensive income (loss) | (5,142) | (10,021) | (11,962) | (12,921) | ||||
Other Comprehensive Loss, Net of Tax | (36,889) | (8,934) | 23,160 | (57,886) | 13,261 | 12,061 | (22,663) | (32,564) |
Adjustment of accumulated other comprehensive loss to retained earnings | 2,801 | |||||||
Ending balance | 2,035,466 | 1,962,374 | 1,937,661 | 1,967,464 | 1,728,049 | 1,618,067 | 2,035,466 | 1,967,464 |
Total | ||||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||||
Beginning balance | (897,252) | (888,318) | (911,478) | (913,148) | (926,409) | (941,271) | (911,478) | (941,271) |
Other Comprehensive Loss, Net of Tax | (36,889) | (8,934) | 23,160 | (57,886) | 13,261 | 12,061 | ||
Ending balance | (934,141) | (897,252) | (888,318) | (971,034) | (913,148) | (926,409) | (934,141) | (971,034) |
Derivative Instruments | ||||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||||
Beginning balance | 5,221 | 22,732 | 33,330 | 8,796 | 22,732 | 8,796 | ||
Other comprehensive income (loss) before reclassifications | 7,521 | 24,715 | (1,729) | 58,604 | ||||
Amounts reclassified from accumulated other comprehensive income (loss) | (5,801) | (11,312) | (14,062) | (20,667) | ||||
Other Comprehensive Loss, Net of Tax | 1,720 | 13,403 | (15,791) | 37,937 | ||||
Adjustment of accumulated other comprehensive loss to retained earnings | 0 | |||||||
Ending balance | 6,941 | 5,221 | 46,733 | 33,330 | 6,941 | 46,733 | ||
Available-for-Sale Security | ||||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||||
Beginning balance | 0 | 0 | 0 | (6,447) | 0 | (6,447) | ||
Other comprehensive income (loss) before reclassifications | 0 | 0 | 0 | 0 | ||||
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | 0 | 0 | 3,646 | ||||
Other Comprehensive Loss, Net of Tax | 0 | 0 | 3,600 | 0 | 3,646 | |||
Adjustment of accumulated other comprehensive loss to retained earnings | 2,800 | 2,801 | ||||||
Ending balance | 0 | 0 | 0 | 0 | 0 | 0 | ||
Employee Benefit Plans | ||||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||||
Beginning balance | (137,042) | (138,498) | (151,388) | (154,099) | (138,498) | (154,099) | ||
Other comprehensive income (loss) before reclassifications | 5 | 63 | 20 | (35) | ||||
Amounts reclassified from accumulated other comprehensive income (loss) | 659 | 1,291 | 2,100 | 4,100 | ||||
Other Comprehensive Loss, Net of Tax | 664 | 1,354 | 2,120 | 4,065 | ||||
Adjustment of accumulated other comprehensive loss to retained earnings | 0 | |||||||
Ending balance | (136,378) | (137,042) | (150,034) | (151,388) | (136,378) | (150,034) | ||
Currency Translation Adjustments | ||||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||||
Beginning balance | (765,431) | $ (795,712) | (795,090) | $ (789,521) | (795,712) | (789,521) | ||
Other comprehensive income (loss) before reclassifications | (39,273) | (72,643) | (8,992) | (78,212) | ||||
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | 0 | 0 | 0 | ||||
Other Comprehensive Loss, Net of Tax | (39,273) | (72,643) | (8,992) | (78,212) | ||||
Adjustment of accumulated other comprehensive loss to retained earnings | 0 | |||||||
Ending balance | $ (804,704) | $ (765,431) | $ (867,733) | $ (795,090) | $ (804,704) | $ (867,733) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Loss) - Reclassification from AOCI (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Other non-operating (income) expense, net | $ 2,391 | $ 4,293 | $ 5,976 | $ (11,966) | ||||
Income (loss) before income taxes | 450,102 | 363,698 | 350,495 | 489,887 | ||||
Provision for income taxes | (309,342) | (80,035) | (296,767) | (130,530) | ||||
Net income | 146,319 | $ 27,187 | $ (106,471) | 289,882 | $ 66,440 | $ 21,454 | 67,034 | 377,776 |
Derivative Instruments: | Reclassification Out of Accumulated Other Comprehensive Income (Loss) | ||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Cost of sales | 5,784 | 11,292 | 13,709 | 20,764 | ||||
Provision for income taxes | 17 | 20 | 353 | (97) | ||||
Net income | 5,801 | 11,312 | 14,062 | 20,667 | ||||
Employee Benefit Plans: | Reclassification Out of Accumulated Other Comprehensive Income (Loss) | ||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Income (loss) before income taxes | (938) | (1,604) | (2,813) | (5,240) | ||||
Provision for income taxes | 279 | 313 | 713 | 1,140 | ||||
Net income | (659) | (1,291) | (2,100) | (4,100) | ||||
Amortization of prior service credit | Reclassification Out of Accumulated Other Comprehensive Income (Loss) | ||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Other non-operating (income) expense, net | 472 | 504 | 1,416 | 1,409 | ||||
Recognized actuarial loss | Reclassification Out of Accumulated Other Comprehensive Income (Loss) | ||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Other non-operating (income) expense, net | $ (1,410) | $ (2,108) | $ (4,229) | $ (6,649) |
Accumulated Other Comprehensi_5
Accumulated Other Comprehensive Income (Loss) - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Currency translation adjustments income (loss) | $ (36,889) | $ (8,934) | $ 23,160 | $ (57,886) | $ 13,261 | $ 12,061 | $ (22,663) | $ (32,564) |
Adjustment of accumulated other comprehensive loss to retained earnings | 2,801 | |||||||
Available-for-Sale Security | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Reclassification adjustment from AOCI and subsequent reclassification for write-down of securities | 6,400 | |||||||
Currency translation adjustments income (loss) | 0 | 0 | 3,600 | 0 | 3,646 | |||
Adjustment of accumulated other comprehensive loss to retained earnings | $ 2,800 | 2,801 | ||||||
Currency Translation Adjustments | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Currency translation adjustments income (loss) | $ (39,273) | $ (72,643) | $ (8,992) | (78,212) | ||||
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 | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Currency Transaction Gains (Losses) [Line Items] | ||||
Currency transaction gains (losses), net | $ 1,025 | $ (6,730) | $ (6,597) | $ (33,780) |
Operating income/expense | ||||
Currency Transaction Gains (Losses) [Line Items] | ||||
Currency transaction gains (losses), net | (2,276) | (6,689) | (11,987) | (14,948) |
Other non-operating (income) expense, net | ||||
Currency Transaction Gains (Losses) [Line Items] | ||||
Currency transaction gains (losses), net | $ 3,301 | $ (41) | $ 5,390 | $ (18,832) |
Derivative Instruments - Narrat
Derivative Instruments - Narrative (Details) - Foreign currency forward exchange and other contracts - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Notional amount | $ 636 | $ 674 | $ 771 |
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 | Sep. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 |
Derivatives, Fair Value [Line Items] | |||
Derivative Assets | $ 14,574 | $ 17,563 | $ 53,576 |
Derivative Liabilities | 2,334 | 10,754 | 5,828 |
Derivatives Designated as Hedging Instruments: | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Assets | 14,055 | 16,400 | 50,152 |
Derivative Liabilities | 2,011 | 4,454 | 2,175 |
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 | 13,308 | 14,899 | 41,832 |
Derivatives Designated as Hedging Instruments: | Foreign currency forward exchange and other contracts | Other noncurrent assets | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Assets | 747 | 1,501 | 8,320 |
Derivatives Designated as Hedging Instruments: | Foreign currency forward exchange and other contracts | Accrued liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Liabilities | 1,997 | 3,647 | 1,981 |
Derivatives Designated as Hedging Instruments: | Foreign currency forward exchange and other contracts | Other noncurrent liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Liabilities | 14 | 807 | 194 |
Derivatives Not Designated as Hedging Instruments: | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Liabilities | 323 | 6,300 | 3,653 |
Derivatives Not Designated as Hedging Instruments: | Foreign currency forward exchange and other contracts | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Assets | 519 | 1,163 | 3,424 |
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 | 519 | 1,163 | 3,424 |
Derivatives Not Designated as Hedging Instruments: | Foreign currency forward exchange and other contracts | Accrued liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Liabilities | 323 | 6,261 | 3,609 |
Derivatives Not Designated as Hedging Instruments: | Foreign currency forward exchange and other contracts | Other noncurrent liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Liabilities | $ 0 | $ 39 | $ 44 |
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 | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of (losses) gains recognized in OCI | $ 7,521 | $ 24,715 | $ (1,729) | $ 58,604 |
Amount of gains reclassified from accumulated OCI to the consolidated statements of operations | $ 5,801 | $ 11,312 | $ 14,062 | $ 20,667 |
Derivative Instruments - Not De
Derivative Instruments - Not Designated as Hedging Instruments by Classification and Amount of Gains and Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Derivatives Not Designated as Hedging Instruments | Foreign Exchange Forward | Other non-operating (income) expense, net | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of net gains (losses) recognized in the Statements of Operations | $ 6,805 | $ (2,279) | $ 25,083 | $ 843 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Measured on Recurring Basis (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 |
Assets: | |||
Foreign currency forward exchange and other contracts | $ 14,574 | $ 17,563 | $ 53,576 |
Available-for-sale | 3,360 | ||
Total assets | 56,936 | ||
Liabilities: | |||
Foreign currency forward exchange and other contracts | 2,334 | 10,754 | 5,828 |
Level 1 | |||
Assets: | |||
Foreign currency forward exchange and other contracts | 0 | 0 | 0 |
Available-for-sale | 3,360 | ||
Total assets | 3,360 | ||
Liabilities: | |||
Foreign currency forward exchange and other contracts | 0 | 0 | 0 |
Level 2 | |||
Assets: | |||
Foreign currency forward exchange and other contracts | 14,574 | 17,563 | 53,576 |
Available-for-sale | 0 | ||
Total assets | 53,576 | ||
Liabilities: | |||
Foreign currency forward exchange and other contracts | 2,334 | 10,754 | 5,828 |
Level 3 | |||
Assets: | |||
Foreign currency forward exchange and other contracts | 0 | 0 | 0 |
Available-for-sale | 0 | ||
Total assets | 0 | ||
Liabilities: | |||
Foreign currency forward exchange and other contracts | $ 0 | $ 0 | $ 0 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 |
Fair Value Disclosures [Abstract] | |||
Estimated fair value of long-term debt | $ 2,130 | $ 2,130 | $ 2,350 |
Carrying value of long-term debt | $ 2,350 | $ 2,350 | $ 2,600 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Basic: | ||||||||
Net income | $ 146,319 | $ 27,187 | $ (106,471) | $ 289,882 | $ 66,440 | $ 21,454 | $ 67,034 | $ 377,776 |
Weighted-average number of common shares (in shares) | 354,139 | 354,471 | 354,559 | 353,394 | ||||
Basic net income per common share (USD per share) | $ 0.41 | $ 0.82 | $ 0.19 | $ 1.07 | ||||
Diluted: | ||||||||
Net income | $ 146,319 | $ 27,187 | $ (106,471) | $ 289,882 | $ 66,440 | $ 21,454 | $ 67,034 | $ 377,776 |
Weighted-average number of common shares (in shares) | 354,139 | 354,471 | 354,559 | 353,394 | ||||
Dilutive share-based awards (in shares) | 3,335 | 5,758 | 3,418 | 6,337 | ||||
Weighted-average number of common and potential common shares (in shares) | 357,474 | 360,229 | 357,977 | 359,731 | ||||
Diluted net income per common share (USD per share) | $ 0.41 | $ 0.80 | $ 0.19 | $ 1.05 | ||||
Antidilutive securities excluded from calculation of earnings per share (in shares) | 6,500 | 10,400 | 11,500 | 10,800 |
Employee Benefit Plans - Compon
Employee Benefit Plans - Components of Net Periodic Benefit Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Defined Benefit Pension Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 848 | $ 980 | $ 2,548 | $ 3,046 |
Interest cost | 5,234 | 2,996 | 15,670 | 9,112 |
Expected return on plan assets | (5,103) | (4,776) | (15,280) | (14,480) |
Amortization of prior service cost and credit | 37 | 5 | 112 | 118 |
Recognized actuarial gain (loss) | 1,467 | 2,133 | 4,399 | 6,724 |
Net periodic benefit cost (credit) | 2,483 | 1,338 | 7,449 | 4,520 |
Postretirement Benefit Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Interest cost | 45 | 22 | 134 | 66 |
Amortization of prior service cost and credit | (509) | (509) | (1,528) | (1,527) |
Recognized actuarial gain (loss) | (57) | (25) | (170) | (75) |
Net periodic benefit cost (credit) | $ (521) | $ (512) | $ (1,564) | $ (1,536) |
Employee Benefit Plans - Narrat
Employee Benefit Plans - Narrative (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2023 USD ($) | |
Retirement Benefits [Abstract] | |
Cash contributions made during the period | $ 11 |
Expected additional cash contributions | $ 3 |
Share-Based Payments - Narrativ
Share-Based Payments - Narrative (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Proceeds from stock option exercises | $ 26,014 | $ 27,658 |
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 | |
Stock Options, RSUs, and Performance Shares | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
General vesting period | 3 years | |
Total unrecognized compensation expense related to unvested share-based payments | $ 110,700 | |
Weighted-average period for unrecognized compensation expense expected to be recognized | 2 years 1 month 6 days |
Share-Based Payments - Compensa
Share-Based Payments - Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | $ 15,492 | $ 18,053 | $ 52,425 | $ 55,941 |
Stock option compensation expense | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | 1,077 | 5,170 | 5,673 | 10,064 |
RSU compensation expense | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | 12,020 | 9,643 | 36,724 | 27,810 |
Performance award compensation expense | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | $ 2,395 | $ 3,240 | $ 10,028 | $ 18,067 |
Other Selling and Administrat_3
Other Selling and Administrative Expenses (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Other Income and Expenses [Abstract] | ||||
Design and development | $ 49,781 | $ 52,204 | $ 148,319 | $ 144,145 |
Intangible asset amortization | $ 9,584 | $ 9,308 | $ 28,570 | $ 28,304 |
Restructuring Charges - Schedul
Restructuring Charges - Schedule of Severance and Other Restructuring Costs (Details) - Optimizing for Growth (formerly Capital Light Initiative) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | $ 3,006 | $ 5,807 | $ 30,274 | $ 26,397 |
Cost of sales | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | (76) | 1,366 | (1,276) | 9,795 |
Other selling and administrative expenses | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | $ 3,082 | $ 4,441 | $ 31,550 | $ 16,602 |
Restructuring Charges - Severan
Restructuring Charges - Severance and Other Restructuring Charges Activity (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Severance | ||||
Restructuring Reserve [Roll Forward] | ||||
Charges | $ 6,100 | |||
Optimizing for Growth (formerly Capital Light Initiative) | ||||
Restructuring Reserve [Roll Forward] | ||||
Remaining liability at beginning of period | 12,895 | $ 15,245 | ||
Charges | $ 3,006 | $ 5,807 | 30,274 | 26,397 |
Payments/Utilization | (30,754) | (26,568) | ||
Remaining liability at end of period | 12,415 | 15,074 | 12,415 | 15,074 |
Optimizing for Growth (formerly Capital Light Initiative) | Severance | ||||
Restructuring Reserve [Roll Forward] | ||||
Remaining liability at beginning of period | 9,355 | 12,411 | ||
Charges | 21,607 | 14,021 | ||
Payments/Utilization | (20,104) | (12,290) | ||
Remaining liability at end of period | 10,858 | 14,142 | 10,858 | 14,142 |
Optimizing for Growth (formerly Capital Light Initiative) | Other restructuring charges | ||||
Restructuring Reserve [Roll Forward] | ||||
Remaining liability at beginning of period | 3,540 | 2,834 | ||
Charges | 8,667 | 12,376 | ||
Payments/Utilization | (10,650) | (14,278) | ||
Remaining liability at end of period | $ 1,557 | $ 932 | $ 1,557 | $ 932 |
Restructuring Charges - Narrati
Restructuring Charges - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Severance | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | $ 6,100 | ||||
Optimizing for Growth (formerly Capital Light Initiative) | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Severance and other restructuring charges incurred to date | $ 196,000 | 196,000 | |||
Restructuring and related cost, cost incurred to date, non-cash charges | 73,000 | 73,000 | |||
Expected non-cash restructuring costs | 75,000 | 75,000 | |||
Restructuring charges | 3,006 | $ 5,807 | 30,274 | $ 26,397 | |
Optimizing for Growth (formerly Capital Light Initiative) | Severance | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | 21,607 | $ 14,021 | |||
Optimizing for Growth (formerly Capital Light Initiative) | Minimum | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Expected restructuring cash charges | 195,000 | 195,000 | |||
Optimizing for Growth (formerly Capital Light Initiative) | Maximum | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Expected restructuring cash charges | 225,000 | 225,000 | |||
Optimizing for Growth (formerly Capital Light Initiative) | Other non-operating (income) expense, net | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Severance and other restructuring charges incurred to date | $ 45,400 | ||||
Other Cost Savings Actions | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Expected non-cash restructuring costs | 6,000 | 6,000 | |||
Other Cost Savings Actions | Severance | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | 25,300 | ||||
Other Cost Savings Actions | Minimum | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Expected restructuring cash charges | 30,000 | 30,000 | |||
Other Cost Savings Actions | Maximum | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Expected restructuring cash charges | $ 35,000 | $ 35,000 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Income Tax Disclosure [Abstract] | ||||
Income tax expense | $ 309,342 | $ 80,035 | $ 296,767 | $ 130,530 |
Discrete tax expense (benefit) | 200,700 | $ (19,400) | 201,000 | $ (4,800) |
Deferred tax assets, valuation allowance | 212,400 | 212,400 | ||
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 | $ 17,000 | $ 17,000 |
Contingencies (Details)
Contingencies (Details) - Sleeper | 1 Months Ended | 7 Months Ended | |
Jun. 30, 2022 claim | Oct. 31, 2019 class | Sep. 30, 2023 lawsuit child | |
Loss Contingencies [Line Items] | |||
Number of claims settled | claim | 2 | ||
Number of additional lawsuits pending | lawsuit | 31 | ||
Number of children with injuries or fatalities related to lawsuits | child | 34 | ||
Minimum | |||
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 | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Segment Reporting Information [Line Items] | ||||
Revenues | $ 1,918,788 | $ 1,755,780 | $ 3,820,531 | $ 4,032,767 |
Operating income | 473,858 | 391,372 | 421,596 | 596,519 |
Interest expense | 30,716 | 33,870 | 92,486 | 99,730 |
Interest (income) | (4,569) | (1,903) | (15,409) | (5,064) |
Other non-operating (income) expense, net | (2,391) | (4,293) | (5,976) | 11,966 |
Income before income taxes | 450,102 | 363,698 | 350,495 | 489,887 |
(Loss) gain on sale of assets, net | (1,408) | 15,960 | ||
Operating Income by segment | ||||
Segment Reporting Information [Line Items] | ||||
Operating income | 603,645 | 491,169 | 811,364 | 955,191 |
Operating Income by segment | North America and International | ||||
Segment Reporting Information [Line Items] | ||||
Restructuring charges | (100) | 1,400 | (1,300) | 9,800 |
Operating Income by segment | North America | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 1,104,377 | 1,002,126 | 2,138,210 | 2,330,747 |
Operating income | 405,667 | 337,305 | 589,664 | 707,605 |
Operating Income by segment | International | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 771,827 | 704,640 | 1,578,632 | 1,584,878 |
Operating income | 202,550 | 162,828 | 245,773 | 268,012 |
(Loss) gain on sale of assets, net | (1,800) | (1,800) | ||
Operating Income by segment | American Girl | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 42,584 | 49,014 | 103,689 | 117,142 |
Operating income | (4,572) | (8,964) | (24,073) | (20,426) |
(Loss) gain on sale of assets, net | 15,200 | |||
Corporate and other expense | ||||
Segment Reporting Information [Line Items] | ||||
Operating income | (129,787) | (99,797) | (389,768) | (358,672) |
Restructuring charges | 29,300 | 4,500 | 63,000 | 17,100 |
Total product recall charges | $ 1,300 | $ 700 | $ 9,000 | $ 1,200 |
Segment Information - Assets (D
Segment Information - Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 |
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Accounts receivable, net and inventories | $ 2,361,568 | $ 1,754,285 | $ 2,465,303 |
Operating Segments | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Accounts receivable, net and inventories | 2,294,799 | 1,594,560 | 2,280,637 |
Operating Segments | North America | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Accounts receivable, net and inventories | 1,194,978 | 778,897 | 1,233,835 |
Operating Segments | International | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Accounts receivable, net and inventories | 1,024,549 | 756,830 | 961,097 |
Operating Segments | American Girl | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Accounts receivable, net and inventories | 75,272 | 58,833 | 85,705 |
Corporate and other | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Accounts receivable, net and inventories | $ 66,769 | $ 159,725 | $ 184,666 |
Segment Information - Revenue_2
Segment Information - Revenues by Geographic Area (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Segment Reporting Information [Line Items] | ||||
Revenues | $ 1,918,788 | $ 1,755,780 | $ 3,820,531 | $ 4,032,767 |
Operating Segments | North America | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 1,104,377 | 1,002,126 | 2,138,210 | 2,330,747 |
Operating Segments | North America | North America | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 1,146,961 | 1,051,140 | 2,241,899 | 2,447,889 |
Operating Segments | International | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 771,827 | 704,640 | 1,578,632 | 1,584,878 |
Operating Segments | International | EMEA | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 423,923 | 410,187 | 874,972 | 958,839 |
Operating Segments | International | Latin America | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 262,071 | 221,805 | 475,648 | 418,531 |
Operating Segments | International | Asia Pacific | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | $ 85,833 | $ 72,648 | $ 228,012 | $ 207,508 |