10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2014

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission File Number 001-05647

MATTEL, INC.

(Exact name of registrant as specified in its charter)

Delaware	95-1567322
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
333 Continental Blvd. El Segundo, CA	90245-5012
(Address of principal executive offices)	(Zip Code)

(310) 252-2000

(Registrant’s telephone number, including area code)

(Former name, former address and former fiscal year, if changed since last report):

NONE

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  x    No  ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes  x    No  ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	x	Accelerated filer	¨
Non-accelerated filer	¨  (Do not check if a smaller reporting company)	Smaller reporting company	¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ¨    No  x

Number of shares outstanding of registrant’s common stock, $1.00 par value, as of April 18, 2014:

339,251,876 shares

MATTEL, INC. AND SUBSIDIARIES

		Page
	PART I
Item 1.	Financial Statements		3
	Consolidated Balance Sheets		3
	Consolidated Statements of Operations		4
	Consolidated Statements of Comprehensive (Loss) Income		5
	Consolidated Statements of Cash Flows		6
	Notes to Consolidated Financial Statements		7
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations		24
Item 3.	Quantitative and Qualitative Disclosures About Market Risk		34
Item 4.	Controls and Procedures		35
	PART II
Item 1.	Legal Proceedings		36
Item 1A.	Risk Factors		36
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds		36
Item 3.	Defaults Upon Senior Securities		36
Item 4.	Mine Safety Disclosures		36
Item 5.	Other Information		36
Item 6.	Exhibits		37
	Signature		38

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PART I—FINANCIAL INFORMATION

Item 1. Financial Statements.

MATTEL, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

	March 31, 2014			March 31, 2013			December 31, 2013
	(Unaudited; in thousands, except share data)
ASSETS
Current Assets
Cash and equivalents	$	897,254		$	1,259,512		$	1,039,216
Accounts receivable, net		762,612			750,793			1,260,105
Inventories		650,777			599,901			568,843
Prepaid expenses and other current assets		507,936			545,312			509,829
Total current assets		2,818,579			3,155,518			3,377,993
Noncurrent Assets
Property, plant, and equipment, net		658,757			605,054			659,333
Goodwill		1,084,118			1,072,345			1,083,239
Other noncurrent assets		1,310,515			1,360,754			1,319,061
Total Assets	$	5,871,969		$	6,193,671		$	6,439,626
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities
Short-term borrowings	$	—		$	4,996		$	4,278
Current portion of long-term debt		—			50,000			—
Accounts payable		248,183			257,926			375,328
Accrued liabilities		412,858			567,524			640,155
Income taxes payable		13,901			18,014			27,679
Total current liabilities		674,942			898,460			1,047,440
Noncurrent Liabilities
Long-term debt		1,600,000			1,600,000			1,600,000
Other noncurrent liabilities		499,490			647,023			540,627
Total noncurrent liabilities		2,099,490			2,247,023			2,140,627
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		1,761,035			1,752,662			1,784,445
Treasury stock at cost; 101.7 million shares, 96.2 million shares, and 102.1 million shares, respectively		(2,447,091	)		(2,092,226	)		(2,448,701	)
Retained earnings		3,775,945			3,427,808			3,918,122
Accumulated other comprehensive loss		(433,721	)		(481,425	)		(443,676	)
Total stockholders’ equity		3,097,537			3,048,188			3,251,559
Total Liabilities and Stockholders’ Equity	$	5,871,969		$	6,193,671		$	6,439,626

The accompanying notes are an integral part of these financial statements.

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MATTEL, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

	For the Three Months Ended
	March 31, 2014			March 31, 2013
	(Unaudited; in thousands, except per share amounts)
Net Sales	$	946,177		$	995,606
Cost of sales		464,646			455,555
Gross Profit		481,531			540,051
Advertising and promotion expenses		90,834			104,540
Other selling and administrative expenses		384,479			369,680
Operating Income		6,218			65,831
Interest expense		17,246			20,337
Interest (income)		(1,279	)		(1,400	)
Other non-operating (income) expense, net		(328	)		2,729
(Loss) Income Before Income Taxes		(9,421	)		44,165
Provision for income taxes		1,797			5,654
Net (Loss) Income	$	(11,218	)	$	38,511
Net (Loss) Income Per Common Share—Basic	$	(0.03	)	$	0.11
Weighted average number of common shares		340,226			344,315
Net (Loss) Income Per Common Share—Diluted	$	(0.03	)	$	0.11
Weighted average number of common and potential common shares		340,226			348,795
Dividends Declared Per Common Share	$	0.38		$	0.36

The accompanying notes are an integral part of these financial statements.

4

MATTEL, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME

	For the Three Months Ended
	March 31, 2014			March 31, 2013
	(Unaudited; in thousands)
Net (Loss) Income	$	(11,218	)	$	38,511
Other Comprehensive Income (Loss), Net of Tax:
Currency translation adjustments		3,872			(27,379	)
Defined benefit pension plans net prior service credit (cost) and net actuarial gain (loss)		2,088			3,431
Net unrealized gains (losses) on derivative instruments:
Unrealized holding gains		1,228			8,138
Reclassification adjustment for realized losses (gains) included in net income		2,767			(1,129	)
		3,995			7,009
Other Comprehensive Income (Loss), Net of Tax		9,955			(16,939	)
Comprehensive (Loss) Income	$	(1,263	)	$	21,572

The accompanying notes are an integral part of these financial statements.

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MATTEL, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

	For the Three Months Ended
	March 31, 2014			March 31, 2013
	(Unaudited; in thousands)
Cash Flows From Operating Activities:
Net (loss) income	$	(11,218	)	$	38,511
Adjustments to reconcile net (loss) income to net cash flows provided by (used for) operating activities:
Depreciation		48,006			41,822
Amortization		3,508			4,410
Deferred income taxes		24,220			(16,350	)
Tax benefits from share-based payment arrangements		(14,243	)		(21,759	)
Share-based compensation		12,693			13,862
Increase (decrease) from changes in assets and liabilities:
Accounts receivable		494,496			472,404
Inventories		(82,203	)		(140,840	)
Prepaid expenses and other current assets		4,346			(9,458	)
Accounts payable, accrued liabilities, and income taxes payable		(409,648	)		(442,654	)
Other, net		(9,379	)		(2,395	)
Net cash flows provided by (used for) operating activities		60,578			(62,447	)
Cash Flows From Investing Activities:
Purchases of tools, dies, and molds		(30,262	)		(29,178	)
Purchases of other property, plant, and equipment		(13,570	)		(23,936	)
Proceeds (payments) from foreign currency forward exchange contracts		13,985			(12,619	)
Other, net		201			133
Net cash flows used for investing activities		(29,646	)		(65,600	)
Cash Flows From Financing Activities:
Payments of short-term borrowings, net		(4,278	)		(9,844	)
Proceeds from short-term borrowings, net		—			4,996
Payments of credit facility renewal costs		—			(4,015	)
Payments of long-term borrowings		—			(350,000	)
Proceeds from long-term borrowings, net		—			495,260
Share repurchases		(27,688	)		(32,240	)
Payments of dividends on common stock		(129,327	)		(124,077	)
Proceeds from exercise of stock options		5,138			57,311
Tax benefits from share-based payment arrangements		14,243			21,759
Other, net		(26,954	)		(1,890	)
Net cash flows (used for) provided by financing activities		(168,866	)		57,260
Effect of Currency Exchange Rate Changes on Cash		(4,028	)		(5,412	)
Decrease in Cash and Equivalents		(141,962	)		(76,199	)
Cash and Equivalents at Beginning of Period		1,039,216			1,335,711
Cash and Equivalents at End of Period	$	897,254		$	1,259,512

The accompanying notes are an integral part of these financial statements.

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MATTEL, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

1. 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 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 presentation of the financial position and interim results of Mattel, Inc. and its subsidiaries (“Mattel”) as of and for the periods presented have been included. As Mattel’s business is seasonal, results for interim periods are not necessarily indicative of those that may be expected for a full year.

The year-end balance sheet data was derived from audited financial statements; however, the accompanying interim notes to the consolidated financial statements do not include all disclosures required by accounting principles generally accepted in the United States of America.

The financial information included herein should be read in conjunction with Mattel’s consolidated financial statements and related notes in its 2013 Annual Report on Form 10-K.

2. Accounts Receivable

Accounts receivable are net of allowances for doubtful accounts of $19.5 million, $35.4 million, and $20.4 million as of March 31, 2014, March 31, 2013, and December 31, 2013, respectively.

3. Inventories

Inventories include the following:

	March 31, 2014		March 31, 2013		December 31, 2013
	(In thousands)
Raw materials and work in process	$	111,871	$	107,166	$	89,863
Finished goods		538,906		492,735		478,980
	$	650,777	$	599,901	$	568,843

4. Property, Plant, and Equipment

Property, plant, and equipment, net includes the following:

	March 31, 2014			March 31, 2013			December 31, 2013
	(In thousands)
Land	$	27,682		$	26,733		$	27,555
Buildings		270,951			273,479			269,874
Machinery and equipment		680,901			682,866			673,546
Software		310,264			263,484			301,284
Tools, dies, and molds		728,931			692,215			713,749
Capital leases		23,271			23,271			23,271
Leasehold improvements		229,967			211,038			230,271
		2,271,967			2,173,086			2,239,550
Less: accumulated depreciation		(1,613,210	)		(1,568,032	)		(1,580,217	)
	$	658,757		$	605,054		$	659,333

Property, plant, and equipment are stated at cost less accumulated depreciation and amortization. Depreciation is computed using the straight-line method over estimated useful lives of 10 to 30 years for buildings, 3 to 10 years for machinery and equipment, 3 to 7 years for software, and 10 to 20 years, not to exceed the lease term, for leasehold improvements. Tools, dies, and molds are depreciated using the straight-line method over 3 years. Estimated useful lives are periodically reviewed and, where appropriate, changes are made prospectively. The carrying value of property, plant, and equipment is reviewed when events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. Any potential impairment identified is assessed by evaluating the operating performance and future undiscounted cash flows of the underlying assets. When property is sold or retired, the cost of the property and the related accumulated depreciation are removed from the consolidated balance sheet, and any resulting gain or loss is included in the results of operations.

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5. Goodwill

Goodwill is allocated to various reporting units, which are at the operating segment level, for purposes of evaluating whether goodwill is impaired. Mattel’s reporting units are: (i) North America, (ii) International, and (iii) American Girl. Mattel tests its goodwill for impairment annually in the third quarter and whenever events or changes in circumstances indicate that the carrying value of a reporting unit may exceed its fair value.

The change in the carrying amount of goodwill by operating segment for the three months ended March 31, 2014 is shown below. Brand-specific goodwill held by foreign subsidiaries is allocated to the North America and American Girl operating segments selling those brands, thereby causing a foreign currency translation impact for these operating segments.

		December 31, 2013		Currency Exchange Rate Impact		March 31,    2014
		(In thousands)
	North America	$	547,595	$	242	$	547,837
	International		321,656		625		322,281
	American Girl		213,988		12		214,000
	Total goodwill	$	1,083,239	$	879	$	1,084,118
6. Other Noncurrent Assets Other noncurrent assets include the following:
		March 31,    2014		March 31,    2013		December 31, 2013
		(In thousands)
	Nonamortizable identifiable intangibles	$	504,241	$	617,223	$	504,241
	Deferred income taxes		364,605		411,298		373,638
	Identifiable intangibles (net of amortization of $69.5 million, $67.7 million, and $68.3 million, respectively)		173,853		85,983		176,579
	Other		267,816		246,250		264,603
		$	1,310,515	$	1,360,754	$	1,319,061

Mattel tests nonamortizable intangible assets, including trademarks and trade names, for impairment annually in the third quarter and whenever events or changes in circumstances indicate that the carrying values may exceed the fair values. Mattel also tests its amortizable intangible assets for impairment whenever events or changes in circumstances indicate that the carrying value of the asset may not be recoverable.

During the second quarter of 2013, Mattel changed its brand strategy for Polly Pocket^®, which includes a more focused allocation of resources to support the Polly Pocket brand in specific markets, resulting in a reduction of the forecasted future cash flows of the brand. As a result of the change, Mattel tested the Polly Pocket trade name for impairment. The Polly Pocket trade name, which had a carrying value of approximately $113 million, was previously determined to be a nonamortizable intangible asset. Its fair value was determined to be approximately $99 million based on a discounted cash flow analysis using the multi-period excess earnings method. Level 3 inputs, including forecasted future cash flows, an estimated useful life, and a discount rate, were used in the valuation. As the fair value of the asset was below the carrying value, Mattel recorded an impairment charge of approximately $14 million, which was reflected within other selling and administrative expenses in the consolidated statement of operations for the North America and International operating segments during the second quarter of 2013.

In conjunction with the Polly Pocket trade name impairment test, Mattel reassessed the intangible asset’s nonamortizable classification and determined that the nonamortizable classification could no longer be supported. During the second quarter of 2013, the Polly Pocket trade name was reclassified as an amortizable intangible asset, and the remaining fair value of the asset is being amortized over its estimated remaining useful life.

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7. Accrued Liabilities

Accrued liabilities include the following:

	March 31, 2014		March 31, 2013		December 31, 2013
	(In thousands)
Royalties	$	42,681	$	37,903	$	100,542
Taxes other than income taxes		28,793		35,994		70,121
Advertising and promotion		12,029		26,060		76,453
Litigation accrual		—		137,800		—
Other		329,355		329,767		393,039
	$	412,858	$	567,524	$	640,155

8. Seasonal Financing

Mattel maintains and periodically amends or replaces its domestic unsecured committed revolving credit facility with a commercial bank group. The facility is used as a back-up to Mattel’s commercial paper program, which is used as the primary source of financing for the seasonal working capital requirements of its domestic subsidiaries. The agreement governing the credit facility was amended and restated on March 11, 2013 to, among other things, (i) extend the maturity date of the credit facility to March 12, 2018, (ii) increase aggregate commitments under the credit facility to $1.60 billion, with an “accordion feature,” which allows Mattel to increase the aggregate availability under the credit facility to $1.85 billion under certain circumstances, (iii) decrease the applicable interest rate margins to a range of 0.00% to 0.75% above the applicable base rate for base rate loans and 0.88% to 1.75% above the applicable LIBOR for Eurodollar rate loans, in each case depending on Mattel’s senior unsecured long-term debt rating, and (iv) decrease commitment fees to a range of 0.08% to 0.28% of the unused commitments under the credit facility.

The amended credit facility has a borrowing capacity of up to $1.60 billion over a term of five years. Prior to the amendment, the facility permitted Mattel to borrow up to $1.40 billion and had two years remaining to maturity. The proportion of unamortized debt issuance costs from the prior facility renewal related to creditors involved in both the prior facility and amended facility and borrowing costs incurred as a result of the amendment were deferred and will be amortized over the term of the amended facility.

Mattel is required to meet financial ratio covenants at the end of each quarter and fiscal year, using the formulae specified in the credit agreement to calculate the ratios. Mattel was in compliance with such covenants at March 31, 2014.

The credit agreement is a material agreement and failure to comply with the financial ratio covenants may result in an event of default under the terms of the credit facility. If Mattel were to default under the terms of the credit facility, its ability to meet its seasonal financing requirements could be adversely affected.

9. Long-Term Debt

Long-term debt includes the following:

	March 31, 2014		March 31, 2013			December 31, 2013
	(In thousands)
Medium-term notes	$	—	$	50,000		$	—
2010 Senior Notes due October 2020 and October 2040		500,000		500,000			500,000
2011 Senior Notes due November 2016 and November 2041		600,000		600,000			600,000
2013 Senior Notes due March 2018 and March 2023		500,000		500,000			500,000
		1,600,000		1,650,000			1,600,000
Less: current portion		—		(50,000	)		—
Total long-term debt	$	1,600,000	$	1,600,000		$	1,600,000

During November 2013, Mattel repaid $50.0 million of its Medium-term notes in connection with their scheduled maturities.

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10. Other Noncurrent Liabilities

Other noncurrent liabilities include the following:

	March 31, 2014		March 31, 2013		December 31, 2013
	(In thousands)
Benefit plan liabilities	$	196,753	$	283,006	$	193,046
Noncurrent tax liabilities		143,191		213,917		186,055
Other		159,546		150,100		161,526
	$	499,490	$	647,023	$	540,627

11. Accumulated Other Comprehensive Income (Loss)

The following tables present changes in the accumulated balances for each component of other comprehensive income, including current period other comprehensive income and reclassifications out of accumulated other comprehensive income (loss):

	For the Three Months Ended March 31, 2014
	Derivative Instruments			Defined Benefit Pension Plans			Currency Translation Adjustments			Total
	(In thousands)
Accumulated Other Comprehensive Income (Loss), Net of Tax, as of December 31, 2013	$	(10,789	)	$	(131,946	)	$	(300,941	)	$	(443,676	)
Other comprehensive income before reclassifications		1,228			(92	)		3,872			5,008
Amounts reclassified from accumulated other comprehensive income (loss)		2,767			2,180			—			4,947
Net increase in other comprehensive income		3,995			2,088			3,872			9,955
Accumulated Other Comprehensive Income (Loss), Net of Tax, as of March 31, 2014	$	(6,794	)	$	(129,858	)	$	(297,069	)	$	(433,721	)
	For the Three Months Ended March 31, 2013
	Derivative Instruments			Defined Benefit Pension Plans			Currency Translation Adjustments			Total
	(In thousands)
Accumulated Other Comprehensive Income (Loss), Net of Tax, as of December 31, 2012	$	(2,583	)	$	(190,656	)	$	(271,247	)	$	(464,486	)
Other comprehensive income before reclassifications		8,138			311			(27,379	)		(18,930	)
Amounts reclassified from accumulated other comprehensive income (loss)		(1,129	)		3,120			—			1,991
Net increase (decrease) in other comprehensive income		7,009			3,431			(27,379	)		(16,939	)
Accumulated Other Comprehensive Income (Loss), Net of Tax, as of March 31, 2013	$	4,426		$	(187,225	)	$	(298,626	)	$	(481,425	)

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The following table presents the classification and amount of the reclassifications from accumulated other comprehensive income (loss) to the consolidated statement of operations:

	For the Three Months Ended March 31, 2014			For the Three Months Ended March 31, 2013			Statements of Operations Classification
	(In thousands)
Derivative Instruments
(Loss) gain on foreign currency forward exchange contracts	$	(2,718	)	$	1,131		Cost of sales
		(49	)		(2	)	Provision for income taxes
	$	(2,767	)	$	1,129		Net (loss) income
Defined Benefit Pension Plans
Amortization of prior service credit	$	264		$	126		(a)
Recognized actuarial loss		(3,662	)		(5,146	)	(a)
		(3,398	)		(5,020	)
		1,218			1,900		Provision for income taxes
	$	(2,180	)	$	(3,120	)	Net (loss) 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” of this Quarterly Report on Form 10-Q for additional information regarding Mattel’s net periodic benefit cost.

Currency Translation Adjustments

Mattel’s reporting currency is the US dollar. The translation of its net investments in subsidiaries with non-US dollar functional currencies subjects Mattel to the impact of currency exchange rate fluctuations in its results of operations and financial position. Assets and liabilities of subsidiaries with non-US dollar functional currencies are translated into US dollars at fiscal period-end exchange rates. Income, expense, and cash flow items are translated at weighted average exchange rates prevailing during the fiscal period. The resulting currency translation adjustments are recorded as a component of accumulated other comprehensive income (loss) within stockholders’ equity. Currency translation adjustments resulted in a net gain of $3.9 million for the three months ended March 31, 2014, primarily due to the strengthening of the Brazilian real, Australian dollar, and Indonesian rupiah against the US dollar, partially offset by the weakening of the Argentine peso. Currency translation adjustments resulted in a net loss of $27.4 million for the three months ended March 31, 2013, primarily due to the weakening of the Euro and British pound sterling against the US dollar, partially offset by the strengthening of the Mexican peso and Brazilian real.

12. Derivative Instruments

Mattel seeks to mitigate its exposure to foreign currency transaction risk by monitoring its foreign currency transaction exposure for the year and partially hedging such exposure using foreign currency forward exchange contracts. Mattel uses foreign currency forward exchange contracts as cash flow hedges primarily to hedge its purchases and sales of inventory denominated in foreign currencies. These contracts generally have maturity dates of up to 18 months. These derivative instruments have been designated as effective cash flow hedges, whereby the unsettled hedges are reported in Mattel’s consolidated balance sheets at fair value, with changes in the fair value of the hedges reflected in other comprehensive income (“OCI”). Realized gains and losses for these contracts are recorded in the consolidated statements of operations in the period in which the inventory is sold to customers. Additionally, Mattel uses foreign currency forward exchange contracts to hedge intercompany loans and advances denominated in foreign currencies. Due to the short-term nature of the contracts involved, Mattel 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. As of March 31, 2014, March 31, 2013, and December 31, 2013, Mattel held foreign currency forward exchange contracts with notional amounts of approximately $1.86 billion, $1.55 billion, and $1.55 billion, respectively.

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The following table presents Mattel’s derivative assets and liabilities:

	Asset Derivatives
	Balance Sheet Classification	Fair Value
		March 31, 2014		March 31, 2013		December 31, 2013
				(In thousands)
Derivatives designated as hedging instruments:
Foreign currency forward exchange contracts	Prepaid expenses and other current assets	$	3,183	$	10,868	$	415
Foreign currency forward exchange contracts	Other noncurrent assets		307		—		—
Total derivatives designated as hedging instruments		$	3,490	$	10,868	$	415
Derivatives not designated as hedging instruments:
Foreign currency forward exchange contracts	Prepaid expenses and other current assets	$	3,220	$	—	$	1,895
Total		$	6,710	$	10,868	$	2,310
	Liability Derivatives
	Balance Sheet Classification	Fair Value
		March 31, 2014		March 31, 2013		December 31, 2013
				(In thousands)
Derivatives designated as hedging instruments:
Foreign currency forward exchange contracts	Accrued liabilities	$	10,514	$	3,664	$	12,432
Foreign currency forward exchange contracts	Other noncurrent liabilities		16		—		470
Total derivatives designated as hedging instruments		$	10,530	$	3,664	$	12,902
Derivatives not designated as hedging instruments
Foreign currency forward exchange contracts	Accrued liabilities	$	7,697	$	1,240	$	1,711
Total		$	18,227	$	4,904	$	14,613

The following tables present the classification and amount of gains and losses, net of tax, from derivatives reported in the consolidated statements of operations:

	For the Three Months Ended March 31, 2014					For the Three Months Ended March 31, 2013				Statements of Operations Classification
	Amount of Gain (Loss) Recognized in OCI		Amount of Gain (Loss) Reclassified from Accumulated OCI to Statements of Operations			Amount of Gain (Loss) Recognized in OCI		Amount of Gain (Loss) Reclassified from Accumulated OCI to Statements of Operations
	(In thousands)
Derivatives designated as hedging instruments
Foreign currency forward exchange contracts	$	1,228	$	(2,767	)	$	8,138	$	1,129	Cost of sales

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The net loss of $2.8 million and net gain of $1.1 million reclassified from accumulated other comprehensive loss to the consolidated statements of operations for the three months ended March 31, 2014 and 2013, respectively, are offset by the changes in cash flows associated with the underlying hedged transactions.

	Amount of Gain (Loss) Recognized in the Statements of Operations					Statements of Operations Classification
	For the Three Months Ended March 31, 2014		For the Three Months Ended March 31, 2013
	(In thousands)
Derivatives not designated as hedging instruments
Foreign currency forward exchange contracts	$	7,553	$	(13,775	)	Non-operating income/expense
Foreign currency forward exchange contracts		1,771		403		Cost of sales
Total	$	9,324	$	(13,372	)

The net gain of $9.3 million and net loss of $13.4 million recognized in the consolidated statements of operations for the three months ended March 31, 2014 and 2013, respectively, are offset by foreign currency transaction gains and losses on the related hedged balances.

13. Fair Value Measurements

The following table presents information about Mattel’s assets and liabilities measured and reported in the financial statements at fair value and indicates the fair value hierarchy of the valuation techniques utilized to determine such fair value. The three levels of the fair value hierarchy are as follows:

• Level 1 – Valuations based on unadjusted quoted prices in active markets for identical assets or liabilities that the entity has the ability to access.

• Level 2 – Valuations based on quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable data for substantially the full term of the assets or liabilities.

• Level 3 – Valuations based on inputs that are unobservable, supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

Mattel’s financial assets and liabilities measured and reported at fair value on a recurring basis include the following:

	March 31, 2014
	Level 1		Level 2		Level 3		Total
	(In thousands)
Assets:
Foreign currency forward exchange contracts (a)	$	—	$	6,710	$	—	$	6,710
Auction rate security (b)		—		—		29,988		29,988
Total assets	$	—	$	6,710	$	29,988	$	36,698
Liabilities:
Foreign currency forward exchange contracts (a)	$	—	$	18,227	$	—	$	18,227
	March 31, 2013
	Level 1		Level 2		Level 3		Total
	(In thousands)
Assets:
Foreign currency forward exchange contracts (a)	$	—	$	10,868	$	—	$	10,868
Auction rate security (b)		—		—		21,504		21,504
Total assets	$	—	$	10,868	$	21,504	$	32,372
Liabilities:
Foreign currency forward exchange contracts (a)	$	—	$	4,904	$	—	$	4,904

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	December 31, 2013
	Level 1		Level 2		Level 3		Total
	(In thousands)
Assets:
Foreign currency forward exchange contracts (a)	$	—	$	2,310	$	—	$	2,310
Auction rate security (b)		—		—		28,895		28,895
Total assets	$	—	$	2,310	$	28,895	$	31,205
Liabilities:
Foreign currency forward exchange contracts (a)	$	—	$	14,613	$	—	$	14,613

(a) The fair value of the foreign currency forward exchange contracts is based on dealer quotes of market forward rates and reflects the amount that Mattel would receive or pay at their maturity dates for contracts involving the same notional amounts, currencies, and maturity dates.

(b) The fair value of the auction rate security is estimated using a discounted cash flow model based on (i) estimated interest rates, timing, and amount of cash flows, (ii) credit spreads, recovery rates, and credit quality of the underlying securities, (iii) illiquidity considerations, and (iv) market correlation.

The following table presents information about Mattel’s auction rate security measured and reported at fair value on a recurring basis using significant Level 3 inputs:

	Level 3
	(In thousands)
Balance at December 31, 2013	$	28,895
Unrealized gain		1,093
Balance at March 31, 2014	$	29,988

Other Financial Instruments

Mattel’s financial instruments include cash and equivalents, accounts receivable and payable, short-term borrowings, and accrued liabilities. The fair values of these instruments approximate their carrying values because of their short-term nature and are classified as Level 2 within the fair value hierarchy.

The estimated fair value of Mattel’s long-term debt, including the current portion, was $1.66 billion (compared to a carrying value of $1.60 billion) as of March 31, 2014, $1.77 billion (compared to a carrying value of $1.65 billion) as of March 31, 2013, and $1.62 billion (compared to a carrying value of $1.60 billion) as of December 31, 2013. The estimated fair values have been calculated based on broker quotes or rates for the same or similar instruments and are classified as Level 2 within the fair value hierarchy.

14. Earnings Per Share

Unvested share-based payment awards that contain nonforfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are participating securities and are included in the computation of earnings per share pursuant to the two-class method. Certain of Mattel’s restricted stock units (“RSUs”) are considered participating securities because they contain nonforfeitable rights to dividend equivalents.

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Under the two-class method, net income is reduced by the amount of dividends declared in the period for each class of common stock and participating securities. The remaining undistributed earnings are then allocated to common stock and participating securities as if all of the net income for the period had been distributed. Basic earnings per common share excludes dilution and is calculated by dividing net income allocable to common shares by the weighted average number of common shares outstanding for the period. Diluted earnings per common share is calculated by dividing net income allocable to common shares by the weighted average number of common shares for the period, as adjusted for the potential dilutive effect of non-participating share-based awards. The following table reconciles earnings (loss) per common share for the three months ended March 31, 2014 and 2013:

	For the Three Months Ended
	March 31, 2014			March 31, 2013
	(In thousands, except per share amounts)
Basic:
Net (loss) income	$	(11,218	)	$	38,511
Less: net income allocable to participating RSUs (a)		—			(401	)
Net (loss) income available for basic common shares	$	(11,218	)	$	38,110
Weighted average common shares outstanding		340,226			344,315
Basic net (loss) income per common share	$	(0.03	)	$	0.11
Diluted:
Net (loss) income	$	(11,218	)	$	38,511
Less: net income allocable to participating RSUs (a)		—			(412	)
Net (loss) income available for diluted common shares	$	(11,218	)	$	38,099
Weighted average common shares outstanding		340,226			344,315
Weighted average common equivalent shares arising from:
Dilutive stock options and non-participating RSUs		—			4,480
Weighted average number of common and potential common shares		340,226			348,795
Diluted net (loss) income per common share	$	(0.03	)	$	0.11

(a) During the three months ended March 31, 2014, Mattel did not allocate its net loss to its participating RSUs as its participating RSUs are not obligated to share in the losses of the Company. During the three months ended March 31, 2013, Mattel allocated a proportionate share of both dividends and undistributed earnings to participating RSUs.

The calculation of potential common shares assumes the exercise of dilutive stock options and vesting of non-participating RSUs, net of assumed treasury share repurchases at average market prices. Nonqualified stock options and non-participating RSUs totaling 3.8 million and 0.1 million shares were excluded from the calculation of diluted net income per common share for the three months ended March 31, 2014 and 2013, respectively, because they were antidilutive.

15. Employee Benefit Plans

Mattel and certain of its subsidiaries have qualified and nonqualified retirement plans covering substantially all employees of these companies, which are more fully described in “Note 4 to the Consolidated Financial Statements–Employee Benefit Plans” in its 2013 Annual Report on Form 10-K.

A summary of the components of net periodic benefit cost for Mattel’s defined benefit pension plans is as follows:

	For the Three Months Ended
	March 31, 2014			March 31, 2013
	(In thousands)
Service cost	$	2,597		$	3,899
Interest cost		6,941			6,630
Expected return on plan assets		(8,003	)		(7,329	)
Amortization of prior service credit		(264	)		(126	)
Recognized actuarial loss		3,587			5,106
	$	4,858		$	8,180

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A summary of the components of net periodic benefit cost for Mattel’s postretirement benefit plans is as follows:

	For the Three Months Ended
	March 31, 2014		March 31, 2013
	(In thousands)
Service cost	$	20	$	22
Interest cost		452		338
Recognized actuarial loss		75		40
	$	547	$	400

During the three months ended March 31, 2014, Mattel made cash contributions totaling approximately $1 million and $1 million to its defined benefit pension and postretirement benefit plans, respectively.

16. Share-Based Payments

Mattel has various stock compensation plans, which are more fully described in “Note 7 to the Consolidated Financial Statements–Share-Based Payments” in its 2013 Annual Report on Form 10-K. Under the Mattel, Inc. 2010 Equity and Long-Term Compensation Plan, Mattel has the ability to grant nonqualified stock options, incentive stock options, stock appreciation rights, restricted stock, RSUs, performance awards, dividend equivalent rights, and shares of common stock to officers, employees, and other persons providing services to Mattel. Stock options are granted with exercise prices at the fair market value of Mattel’s common stock on the applicable grant date and expire no later than ten years from the date of grant. Both stock options and time-vesting RSUs generally provide for vesting over a period of three years from the date of grant.

Compensation expense, included within other selling and administrative expenses in the consolidated statement of operations, related to stock options and RSUs is as follows:

	For the Three Months Ended
	March 31, 2014		March 31, 2013
	(In thousands)
Stock option compensation expense	$	2,560	$	2,609
RSU compensation expense		10,133		11,253
	$	12,693	$	13,862

As of March 31, 2014, total unrecognized compensation cost related to unvested share-based payments totaled $74.3 million and is expected to be recognized over a weighted-average period of 1.9 years.

Mattel uses treasury shares purchased under its share repurchase program to satisfy stock option exercises and the vesting of RSUs. Cash received for stock option exercises for the three months ended March 31, 2014 and 2013 was $5.1 million and $57.3 million, respectively.

17. Other Selling and Administrative Expenses

Other selling and administrative expenses include the following:

	For the Three Months Ended
	March 31, 2014		March 31, 2013
	(In thousands)
Design and development	$	49,497	$	47,973
Identifiable intangible asset amortization		2,631		2,803

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18. Foreign Currency Transaction Gains and Losses

Currency exchange rate fluctuations may impact Mattel’s results of operations and cash flows. Mattel’s currency transaction exposures include gains and losses realized on unhedged inventory purchases and unhedged receivables and payables balances that are denominated in a currency other than the applicable functional currency. Gains and losses on unhedged inventory purchases and other transactions associated with operating activities are recorded in the components of operating income to which they relate in the consolidated statements of operations. For hedges of intercompany loans and advances, which do not qualify for hedge accounting treatment, the gains or losses on the hedges resulting from changes in fair value as well as the offsetting transaction gains or losses on the related hedged items, along with unhedged items, are recognized in other non-operating income (expense), net in the consolidated statements of operations. Inventory purchase and sale transactions denominated in the Euro, British pound sterling, Mexican peso, Brazilian real, and Indonesian rupiah are the primary transactions that cause foreign currency transaction exposure for Mattel.

Currency transaction gains (losses) included in the consolidated statements of operations are as follows:

	For the Three Months Ended
	March 31, 2014			March 31, 2013
	(In thousands)
Operating income	$	8,069		$	10,880
Other non-operating (expense) income, net		(932	)		132
Net transaction gains	$	7,137		$	11,012

19. Income Taxes

Mattel’s provision for income taxes was $1.8 million and $5.7 million for the three months ended March 31, 2014 and 2013, respectively. During the three months ended March 31, 2014, Mattel recognized net discrete tax expense of $3.7 million primarily related to reassessments of prior years’ tax liabilities based on the status of audits and tax filings in various jurisdictions around the world, settlements, and enacted tax law changes. During the three months ended March 31, 2013, Mattel recognized net discrete tax benefits of $4.0 million primarily related to the signing of the American Taxpayer Relief Act on January 2, 2013, which extended the Research and Development tax credit retroactively for the 2012 tax year.

In the first quarter of 2014, Mattel adopted Accounting Standards Update (“ASU”) 2013-11, Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists, which generally requires an unrecognized tax benefit, or a portion of an unrecognized tax benefit, to be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward. However, to the extent a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date to settle any additional income taxes that would result from the disallowance of a tax position or the applicable tax law does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. Upon adoption of ASU 2013-11, Mattel reclassified unrecognized tax benefits of approximately $44 million, primarily recorded within other noncurrent liabilities, against its noncurrent deferred tax assets as of March 31, 2014. There was no impact on Mattel’s operating results.

In the normal course of business, Mattel is regularly audited by federal, state and foreign tax authorities. The IRS is currently auditing Mattel’s 2010 and 2011 federal income tax returns. Mattel expects that the completion of the audit will occur in the second quarter of 2014.

Based on the current status of federal, state and foreign audits, Mattel believes it is reasonably possible that in the next twelve months, the total unrecognized tax benefits could decrease by approximately $40 million to $60 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.

20. Contingencies

Litigation Related to Carter Bryant and MGA Entertainment, Inc.

In April 2004, Mattel filed a lawsuit in Los Angeles County Superior Court against Carter Bryant (“Bryant”), a former Mattel design employee. The suit alleges that Bryant aided and assisted a Mattel competitor, MGA Entertainment, Inc. (“MGA”), during the time he was employed by Mattel, in violation of his contractual and other duties to Mattel. In September 2004, Bryant asserted counterclaims against Mattel, including counterclaims in which Bryant sought, as a putative class action representative, to invalidate Mattel’s Confidential Information and Proprietary Inventions Agreements with its employees. Bryant also removed Mattel’s suit to the United States District Court for the Central District of California. In December 2004, MGA intervened as a party-defendant in Mattel’s action against Bryant, asserting that its rights to Bratz properties are at stake in the litigation.

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Separately, in November 2004, Bryant filed an action against Mattel in the United States District Court for the Central District of California. The action sought a judicial declaration that Bryant’s purported conveyance of rights in Bratz was proper and that he did not misappropriate Mattel property in creating Bratz.

In April 2005, MGA filed suit against Mattel in the United States District Court for the Central District of California. MGA’s action alleges claims of trade dress infringement, trade dress dilution, false designation of origin, unfair competition, and unjust enrichment. The suit alleges, among other things, that certain products, themes, packaging, and/or television commercials in various Mattel product lines have infringed upon products, themes, packaging, and/or television commercials for various MGA product lines, including Bratz. The complaint also asserts that various alleged Mattel acts with respect to unidentified retailers, distributors, and licensees have damaged MGA and that various alleged acts by industry organizations, purportedly induced by Mattel, have damaged MGA. MGA’s suit alleges that MGA has been damaged in an amount “believed to reach or exceed tens of millions of dollars” and further seeks punitive damages, disgorgement of Mattel’s profits and injunctive relief.

In June 2006, the three cases were consolidated in the United States District Court for the Central District of California. On July 17, 2006, the Court issued an order dismissing all claims that Bryant had asserted against Mattel, including Bryant’s purported counterclaims to invalidate Mattel’s Confidential Information and Proprietary Inventions Agreements with its employees, and Bryant’s claims for declaratory relief.

In November 2006, Mattel asked the Court for leave to file an Amended Complaint that included not only additional claims against Bryant, but also included claims for copyright infringement, Racketeer Influenced and Corrupt Organizations (“RICO”) violations, misappropriation of trade secrets, intentional interference with contract, aiding and abetting breach of fiduciary duty and breach of duty of loyalty, and unfair competition, among others, against MGA, its Chief Executive Officer Isaac Larian, certain MGA affiliates and an MGA employee. The RICO claim alleged that MGA stole Bratz and then, by recruiting and hiring key Mattel employees and directing them to bring with them Mattel confidential and proprietary information, unfairly competed against Mattel using Mattel’s trade secrets, confidential information, and key employees to build their business. On January 12, 2007, the Court granted Mattel leave to file these claims as counterclaims in the consolidated cases, which Mattel did that same day.

Mattel sought to try all of its claims in a single trial, but in February 2007, the Court decided that the consolidated cases would be tried in two phases, with the first trial to determine claims and defenses related to Mattel’s ownership of Bratz works and whether MGA infringed those works. On May 19, 2008, Bryant reached a settlement agreement with Mattel and is no longer a defendant in the litigation. In the public stipulation entered by Mattel and Bryant in connection with the resolution, Bryant agreed that he was and would continue to be bound by all prior and future Court Orders relating to Bratz ownership and infringement, including the Court’s summary judgment rulings.

The first phase of the first trial, which began on May 27, 2008, resulted in a unanimous jury verdict on July 17, 2008 in favor of Mattel. The jury found that almost all of the Bratz design drawings and other works in question were created by Bryant while he was employed at Mattel; that MGA and Isaac Larian intentionally interfered with the contractual duties owed by Bryant to Mattel, aided and abetted Bryant’s breaches of his duty of loyalty to Mattel, aided and abetted Bryant’s breaches of the fiduciary duties he owed to Mattel, and converted Mattel property for their own use. The same jury determined that defendants MGA, Larian, and MGA Entertainment (HK) Limited infringed Mattel’s copyrights in the Bratz design drawings and other Bratz works, and awarded Mattel total damages of approximately $100 million against the defendants. On December 3, 2008, the Court issued a series of orders rejecting MGA’s equitable defenses and granting Mattel’s motions for equitable relief, including an order enjoining the MGA party defendants from manufacturing, marketing, or selling certain Bratz fashion dolls or from using the “Bratz” name. The Court stayed the effect of the December 3, 2008 injunctive orders until further order of the Court and entered a further specified stay of the injunctive orders on January 7, 2009.

The parties filed and argued additional motions for post-trial relief, including a request by MGA to enter judgment as a matter of law on Mattel’s claims in MGA’s favor and to reduce the jury’s damages award to Mattel. Mattel additionally moved for the appointment of a receiver. On April 27, 2009, the Court entered an order confirming that Bratz works found by the jury to have been created by Bryant during his Mattel employment were Mattel’s property and that hundreds of Bratz female fashion dolls infringe Mattel’s copyrights. The Court also upheld the jury’s award of damages in the amount of $100 million and ordered an accounting of post-trial Bratz sales. The Court further vacated the stay of the December 3, 2008 orders, except to the extent specified by the Court’s January 7, 2009 modification.

MGA appealed the Court’s equitable orders to the Court of Appeals for the Ninth Circuit. On December 9, 2009, the Ninth Circuit heard oral argument on MGA’s appeal and issued an order staying the District Court’s equitable orders pending a further order to be issued by the Ninth Circuit. The Ninth Circuit opinion vacating the relief ordered by the District Court was issued on July 22, 2010. The Ninth Circuit stated that, because of several jury instruction errors it identified, a significant portion—if not all—of the jury verdict and damage award should be vacated.

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In its opinion, the Ninth Circuit found that the District Court erred in concluding that Mattel’s Invention Agreement unambiguously applied to “ideas;” that it should have considered extrinsic evidence in determining the application of the agreement; and if the conclusion turns on conflicting evidence, it should have been up to the jury to decide. The Ninth Circuit also concluded that the District Judge erred in transferring the entire brand to Mattel based on misappropriated names and that the Court should have submitted to the jury, rather than deciding itself, whether Bryant’s agreement assigned works created outside the scope of his employment and whether Bryant’s creation of the Bratz designs and sculpt was outside of his employment. The Court then went on to address copyright issues which would be raised after a retrial, since Mattel “might well convince a properly instructed jury” that it owns Bryant’s designs and sculpt. The Ninth Circuit stated that the sculpt itself was entitled only to “thin” copyright protection against virtually identical works, while the Bratz sketches were entitled to “broad” protection against substantially similar works; in applying the broad protection, however, the Ninth Circuit found that the lower court had erred in failing to filter out all of the unprotectable elements of Bryant’s sketches. This mistake, the Court said, caused the lower court to conclude that all Bratz dolls were substantially similar to Bryant’s original sketches.

Judge Stephen Larson, who presided over the first trial, retired from the bench during the course of the appeal, and the case was transferred to Judge David O. Carter. After the transfer, Judge Carter granted Mattel leave to file a Fourth Amended Answer and Counterclaims which focused on RICO, trade secret and other claims, and added additional parties, and subsequently granted in part and denied in part a defense motion to dismiss those counterclaims.

Later, on August 16, 2010, MGA asserted several new claims against Mattel in response to Mattel’s Fourth Amended Answer and Counterclaims, including claims for alleged trade secret misappropriation, an alleged violation of RICO, and wrongful injunction. Mattel moved to strike and/or dismiss these claims, as well as certain MGA allegations regarding Mattel’s motives for filing suit. The Court granted that motion as to the wrongful injunction claim, which it dismissed with prejudice, and as to the allegations about Mattel’s motives, which it struck. The Court denied the motion as to MGA’s trade secret misappropriation claim and its claim for violations of RICO.

The Court resolved summary judgment motions in late 2010. Among other rulings, the Court dismissed both parties’ RICO claims; dismissed Mattel’s claim for breach of fiduciary duty and portions of other claims as “preempted” by the trade secrets act; dismissed MGA’s trade dress infringement claims; dismissed MGA’s unjust enrichment claim; dismissed MGA’s common law unfair competition claim; and dismissed portions of Mattel’s copyright infringement claim as to “later generation” Bratz dolls.

Trial of all remaining claims began in early January 2011. During the trial, and before the case was submitted to the jury, the Court granted MGA’s motions for judgment as to Mattel’s claims for aiding and abetting breach of duty of loyalty and conversion. The Court also granted a defense motion for judgment on portions of Mattel’s claim for misappropriation of trade secrets relating to thefts by former Mattel employees located in Mexico.

The jury reached verdicts on the remaining claims in April 2011. In those verdicts, the jury ruled against Mattel on its claims for ownership of Bratz-related works, for copyright infringement, and for misappropriation of trade secrets. The jury ruled for MGA on its claim of trade secret misappropriation as to 26 of its claimed trade secrets and awarded $88.5 million in damages. The jury ruled against MGA as to 88 of its claimed trade secrets. The jury found that Mattel’s misappropriation was willful and malicious.

In early August 2011, the Court ruled on post-trial motions. The Court rejected MGA’s unfair competition claims and also rejected Mattel’s equitable defenses to MGA’s misappropriation of trade secrets claim. The Court reduced the jury’s damages award of $88.5 million to $85.0 million. The Court awarded MGA an additional $85.0 million in punitive damages and approximately $140 million in attorney’s fees and costs. The Court entered a judgment which totaled approximately $310 million in favor of MGA.

On August 11, 2011, Mattel appealed the judgment, challenging on appeal the entirety of the District Court’s monetary award in favor of MGA, including both the award of $170 million in damages for alleged trade secret misappropriation and approximately $140 million in attorney’s fees and costs. On January 24, 2013, the Ninth Circuit Court of Appeals issued a ruling on Mattel’s appeal. In that ruling, the Court found that MGA’s claim for trade secrets misappropriation was not compulsory to any Mattel claim and could not be filed as a counterclaim-in-reply. Accordingly, the Court of Appeals vacated the portion of the judgment awarding damages and attorney’s fees and costs to MGA for prevailing on its trade secrets misappropriation claim, totaling approximately $172.5 million. It ruled that, on remand, the District Court must dismiss MGA’s trade secret claim without prejudice. In its ruling, the Court of Appeals also affirmed the District Court’s award of attorney’s fees and costs under the Copyright Act. Accordingly, Mattel recorded a litigation accrual of approximately $138 million during the fourth quarter of 2012 to cover these fees and costs.

Because multiple claimants asserted rights to the attorney’s fees portion of the judgment, on February 13, 2013, Mattel filed a motion in the district court for orders permitting Mattel to interplead the proceeds of the judgment and releasing Mattel from liability to any claimant based on Mattel’s payment of the judgment.

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On February 27, 2013, MGA filed a motion for leave to amend its prior complaint in the existing federal court lawsuit so that it could reassert its trade-secrets claim. Mattel opposed that motion. On December 17, 2013, the district court denied MGA’s motion for leave to amend and entered an order dismissing MGA’s trade-secrets claim without prejudice. Also on December 17, 2013, following a settlement between MGA and certain insurance carriers, the district court denied Mattel’s motion for leave to interplead the proceeds of the judgment.

On December 21, 2013, a stipulation regarding settlement with insurers and payment of judgment was filed in the district court, which provided that (i) Mattel would pay approximately $138 million, including accrued interest, in full satisfaction of the copyright fees judgment, (ii) all parties would consent to entry of an order exonerating and discharging the appeal bond posted by Mattel, and (iii) MGA’s insurers would dismiss all pending actions related to the proceeds of the copyright fees judgment, including an appeal by Evanston Insurance Company in an action against Mattel that was pending in the Ninth Circuit. On December 23, 2013, Mattel paid the copyright fees judgment in the total sum, including interest, of approximately $138 million. On December 26, 2013, the court entered an order exonerating and discharging the appeal bond posted by Mattel, and on December 27, 2013, MGA filed an acknowledgment of satisfaction of judgment. On December 30, 2013, Evanston Insurance Company’s appeal in its action against Mattel was dismissed.

On January 13, 2014, MGA filed a new, but virtually identical, trade-secrets claim against Mattel in Los Angeles County Superior Court. Mattel was served with the complaint on January 23, 2014. In its complaint, MGA purports to seek damages in excess of $1 billion. Mattel believes that MGA’s claim should be barred as a matter of law, and intends to vigorously defend against it. Accordingly, Mattel does not believe a loss is probable and, therefore, a liability has not been accrued as of March 31, 2014.

Litigation Related to Yellowstone do Brasil Ltda.

Yellowstone do Brasil Ltda. (formerly known as Trebbor Informática Ltda.) was a customer of Mattel’s subsidiary Mattel do Brasil Ltda. when a commercial dispute arose between Yellowstone and Mattel do Brasil regarding the supply of product and related payment terms. As a consequence of the dispute, in April 1999, Yellowstone filed a declarative action against Mattel do Brasil requesting the annulment of its security bonds and promissory notes given to Mattel as well as requesting the court to find Mattel do Brasil liable for damages incurred as a result of Mattel do Brasil’s alleged abrupt and unreasonable breach of an oral exclusive distribution agreement between the parties relating to the supply and sale of toys in Brazil. Yellowstone’s complaint sought alleged loss of profits of approximately $1 million (historical value), plus an unspecified amount of damages consisting of: (i) compensation for all investments made by Yellowstone to develop Mattel do Brasil’s business; (ii) reimbursement of the amounts paid by Yellowstone to terminate labor and civil contracts in connection with the business; (iii) compensation for alleged unfair competition and for the goodwill of trade; and (iv) compensation for non-pecuniary damages.

Mattel do Brasil filed its defenses to these claims and simultaneously presented a counterclaim for unpaid accounts receivable for goods supplied to Yellowstone in the approximate amount of $4 million (historical value).

During the evidentiary phase a first accounting report was submitted by a court-appointed expert. Such report stated that Yellowstone had invested approximately $3 million in its business (historical value). Additionally, the court-appointed expert calculated a loss of profits compensation of approximately $1 million (historical value). Mattel do Brasil challenged the report since it was not made based on the official accounting documents of Yellowstone and since the report calculated damages based only on documents unilaterally submitted by Yellowstone.

The trial court accepted the challenge and ruled that a second accounting examination should take place in the lawsuit. Yellowstone appealed the decision but it was upheld by the appeals court.

The second court-appointed expert’s report submitted at trial did not assign a value to any of Yellowstone’s claims and found no evidence of causation between Mattel do Brasil’s actions and such claims.

In January 2010, the trial court ruled in favor of Mattel do Brasil and denied all of Yellowstone’s claims based primarily on the lack of any causal connection between the acts of Mattel do Brasil and Yellowstone’s alleged damages. Additionally, the court upheld Mattel do Brasil’s counterclaim and ordered Yellowstone to pay Mattel do Brasil approximately $4 million (historical value). The likelihood of Mattel do Brasil recovering this amount was uncertain due to the fact that Yellowstone was declared insolvent and filed for bankruptcy protection. In February 2010, Yellowstone filed a motion seeking clarification of the decision which was denied.

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In September 2010, Yellowstone filed a further appeal. Under Brazilian law, the appeal was de novo and Yellowstone restated all of the arguments it made at the trial court level. Yellowstone did not provide any additional information supporting its unspecified alleged damages. The appeals court held hearings on the appeal in March and April 2013. On July 26, 2013, the appeals court awarded Yellowstone approximately $20 million in damages, as adjusted for inflation and interest. The court also awarded Mattel approximately $8 million on its counterclaim, as adjusted for inflation. On August 2, 2013, Mattel filed a motion for clarification since the written decision contained clear errors in terms of amounts awarded and interest and inflation adjustments. Mattel’s motion also asked the court to decide whether Yellowstone’s award could be offset by the counterclaim award, despite Yellowstone’s status as a bankrupt entity. A decision on the clarification motion is expected in the second quarter of 2014. Mattel intends to appeal the decision to the Superior Court based on both procedural and substantive grounds.

Mattel believes that it is reasonably possible that a loss in this matter could range from $0 to approximately $20 million. The high end of this range, approximately $20 million, is based on the calculation of the current amount of the damages and loss of profits, including interest and inflation adjustments, reported in the first court-appointed examination report submitted in the lawsuit, plus attorney’s fees. Mattel do Brasil may be entitled to offset its counterclaim award of approximately $8 million, including inflation adjustment, against such loss. The existence of pending motions for clarification filed by both parties and the resulting clarification decision expected to be issued in the second quarter of 2014, as well as the procedural aspects of an appeal to the Superior Court, adds some uncertainty to the final outcome of the matter. Mattel believes however that it has good legal grounds for appeal of the decision and does not believe that a loss is probable for this matter. Accordingly, a liability has not been accrued as of March 31, 2014. Mattel may be required to place the full amount of the damage award in escrow pending an appeal decision by the Superior Court.

21. Segment Information

Mattel, through its subsidiaries, sells a broad variety of toy products which are grouped into three major brand categories:

Mattel Girls & Boys Brands—including Barbie^® fashion dolls and accessories (“Barbie”), Monster High^®, Disney Classics^®, Ever After High^®, Little Mommy^®, and Polly Pocket (collectively “Other Girls”), Hot Wheels^® and Matchbox^® vehicles and play sets (collectively “Wheels”), and CARS^®, Disney Planes™, Radica^®, Toy Story^®, Max Steel^®, WWE^® Wrestling, Batman^®, and games and puzzles (collectively “Entertainment”).

Fisher-Price Brands—including Fisher-Price^®, Little People^®, BabyGear™, Laugh & Learn^®, and Imaginext^® (collectively “Core Fisher-Price”), Thomas & Friends^®, Dora the Explorer^®, Mickey Mouse^® Clubhouse, and Disney Jake and the Never Land Pirates^® (collectively “Fisher-Price Friends”), and Power Wheels^®.

American Girl Brands—including My American Girl^®, the historical collection, and Bitty Baby^®. American Girl Brands products are sold directly to consumers via its catalog, website, and proprietary retail stores. Its children’s publications are also sold to certain retailers.

Mattel’s operating segments are: (i) North America, which consists of the US and Canada, (ii) International, and (iii) American Girl. The North America and International segments sell products in the Mattel Girls & Boys Brands and Fisher-Price Brands categories, although some are developed and adapted for particular international markets.

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Segment Data

The following tables present information about revenues, income, and assets by segment. Mattel does not include sales adjustments such as trade discounts and other allowances in the calculation of segment revenues (referred to as “gross sales” and reconciled to net sales in Part I, Item 2 “Non-GAAP Financial Measure” of this Quarterly Report on Form 10-Q). Mattel records these adjustments in its financial accounting systems at the time of sale to each customer, but the adjustments are not allocated to individual products. For this reason, Mattel’s chief operating decision maker uses gross sales by segment as one of the metrics to measure segment performance. Such sales adjustments are included in the determination of segment income from operations based on the adjustments recorded in the financial accounting systems. Segment income represents each segment’s operating income, while consolidated operating income represents income from operations before net interest, other non-operating income (expense), and income taxes as reported in the consolidated statements of operations. The corporate and other expense category includes costs not allocated to individual segments, including charges related to incentive compensation, share-based payments, and corporate headquarters functions managed on a worldwide basis, and the impact of changes in foreign currency rates on intercompany transactions.

	For the Three Months Ended
	March 31, 2014			March 31, 2013
	(In thousands)
Revenues by Segment
North America	$	441,431		$	456,469
International		489,239			527,011
American Girl		110,558			104,950
Gross sales		1,041,228			1,088,430
Sales adjustments		(95,051	)		(92,824	)
Net sales	$	946,177		$	995,606
Segment Income
North America	$	48,723		$	68,127
International		31,480			61,995
American Girl		9,244			11,955
		89,447			142,077
Corporate and other expense (a)		(83,229	)		(76,246	)
Operating income		6,218			65,831
Interest expense		17,246			20,337
Interest (income)		(1,279	)		(1,400	)
Other non-operating (income) expense, net		(328	)		2,729
(Loss) Income before income taxes	$	(9,421	)	$	44,165

(a) Corporate and other expense includes severance and other termination-related costs of $21.5 million and $5.5 million for the three months ended March 31, 2014 and 2013, respectively, and share-based compensation expense of $12.7 million and $13.9 million for the three months ended March 31, 2014 and 2013, respectively.

Segment assets are comprised of accounts receivable and inventories, net of applicable reserves and allowances.

	March 31, 2014		March 31, 2013		December 31, 2013
	(In thousands)
Assets by Segment
North America	$	463,905	$	475,702	$	723,886
International		734,024		683,083		920,770
American Girl		110,666		94,569		100,438
		1,308,595		1,253,354		1,745,094
Corporate and other		104,794		97,340		83,854
Accounts receivable and inventories, net	$	1,413,389	$	1,350,694	$	1,828,948

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The table below presents worldwide revenues by brand category:

	For the Three Months Ended
	March 31, 2014			March 31, 2013
	(In thousands)
Worldwide Revenues by Brand Category
Mattel Girls & Boys Brands	$	656,861		$	692,170
Fisher-Price Brands		271,443			287,265
American Girl Brands		105,938			100,455
Other		6,986			8,540
Gross sales		1,041,228			1,088,430
Sales adjustments		(95,051	)		(92,824	)
Net sales	$	946,177		$	995,606

22. Acquisition

On February 28, 2014, Mattel announced a definitive agreement for its acquisition, through a wholly-owned subsidiary, of MEGA Brands, Inc. (“MEGA Brands”), a Canadian corporation. The acquisition of MEGA Brands will build upon Mattel’s portfolio of brands by expanding into the construction building sets and arts and crafts categories. The agreement provides for the acquisition of MEGA Brands for approximately $460 million, including net debt to be assumed or repaid by Mattel, or C$17.75 per common share. The acquisition will include all of the outstanding common shares and warrants of MEGA Brands. Consummation of the acquisition is subject to customary closing conditions. The acquisition is expected to close in the second quarter of 2014.

23. Subsequent Event

On April 17, 2014, Mattel announced that its Board of Directors declared a second quarter dividend of $0.38 per common share. The dividend is payable on June 13, 2014 to stockholders of record on May 23, 2014.

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

In the discussion that follows, “Mattel” refers to Mattel, Inc. and/or one or more of its family of companies.

The following discussion should be read in conjunction with the consolidated financial information and related notes that appear in Part I, Item 1 of this Quarterly Report on Form 10-Q. Mattel’s business is seasonal; therefore, results of operations are comparable only with corresponding periods.

Factors That May Affect Future Results

(Cautionary Statement Under the Private Securities Litigation Reform Act of 1995)

Mattel is including this Cautionary Statement to caution readers and to take advantage of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 (the “Act”) for forward-looking statements. This Quarterly Report on Form 10-Q includes forward-looking statements within the meaning of the Act. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include words such as “believes,” “expects,” “anticipates,” “intends,” “plans,” “seeks,” “aims,” “estimates,” “projects” or words of similar meaning, or future or conditional verbs, such as “will,” “should,” “could,” or “may.” A forward-looking statement is neither a prediction nor a guarantee of future events or circumstances, and those future events or circumstances may not occur. Investors should not place undue reliance on the forward-looking statements, which speak only as of the date of this Form 10-Q. These forward-looking statements are all based on currently available operating, financial, economic and competitive information and are subject to various risks and uncertainties. The Company’s actual future results and trends may differ materially depending on a variety of factors, including, but not limited to, the risks and uncertainties detailed in Part 1, Item 1A “Risk Factors” in Mattel’s 2013 Annual Report on Form 10-K.

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Overview

Mattel designs, manufactures, and markets a broad variety of toy products worldwide which are sold to its customers and directly to consumers. Mattel’s vision is “creating the future of play.” Mattel’s objectives are to grow its share in the marketplace, continue to improve its operating margins, and create long-term stockholder value. To achieve these objectives, management has established the following strategies:

The first strategy is to deliver consistent growth by investing in its core brands, optimizing entertainment partnerships, building new franchises, and working to expand and leverage its international footprint.

The second strategy is to optimize operating margins through sustaining gross margins within the low-to-mid 50% range in the near-term and above 50% in the long-term, and delivering on cost savings initiatives.

The third strategy is to generate significant cash flow and continue its disciplined, opportunistic, and value-enhancing deployment.

Mattel believes its products are among the most widely recognized toy products in the world. Mattel’s portfolio of brands and products are grouped in the following categories:

Mattel Girls & Boys Brands—including Barbie fashion dolls and accessories (“Barbie”), Monster High, Disney Classics, Ever After High, Little Mommy, and Polly Pocket (collectively “Other Girls”), Hot Wheels and Matchbox vehicles and play sets (collectively “Wheels”), and CARS, Disney Planes, Radica, Toy Story, Max Steel, WWE Wrestling, Batman, and games and puzzles (collectively “Entertainment”).

Fisher-Price Brands—including Fisher-Price, Little People, BabyGear, Laugh & Learn, and Imaginext (collectively “Core Fisher-Price”), Thomas & Friends, Dora the Explorer, Mickey Mouse Clubhouse, and Disney Jake and the Never Land Pirates (collectively “Fisher-Price Friends”), and Power Wheels.

American Girl Brands—including My American Girl, the historical collection, and Bitty Baby. American Girl Brands products are sold directly to consumers via its catalog, website, and proprietary retail stores. Its children’s publications are also sold to certain retailers.

First Quarter 2014 Overview

Sales for the first quarter of 2014 decreased by 5% from the first quarter of 2013 as Mattel worked to address higher carryover inventory levels from the prior year, experienced continued softness in consumer takeaway, and shifted trade spending and advertising programs to the second half of the year. Gross margin was also negatively impacted by efforts to reduce Mattel-owned inventories.

As a result of the challenging retail environment, Mattel focused on initiatives to manage its cost structure in an effort to drive organizational efficiencies, which included a reduction of its workforce. Additionally, Mattel made progress on its initiatives to (i) strengthen its girls portfolio with the global launch of Ever After High and (ii) enter into new categories with the launch of BOOMco.™ in the outdoor category and the planned acquisition of MEGA Brands, Inc. in the construction building sets and arts and crafts categories. Mattel expects these initiatives will help it achieve its growth objectives in 2014 and beyond.

Mattel’s first quarter 2014 financial highlights include the following:

• Net sales for the first quarter of 2014 were $946.2 million, down 5% as compared to first quarter of 2013 net sales of $995.6 million.

• Gross profit as a percentage of net sales for the first quarter of 2014 was 50.9%, a decrease of 330 basis points from the first quarter of 2013.

• Other selling and administrative expenses in the first quarter of 2014 were $384.5 million, including incremental severance and other termination-related costs of approximately $16 million, as compared to other selling and administrative expenses of $369.7 million during the first quarter of 2013.

• Operating income in the first quarter of 2014 was $6.2 million, as compared to $65.8 million in the first quarter of 2013.

• Mattel paid a first quarter dividend of $0.38 per common share, an increase of 6% as compared to the first quarter 2013 dividend of $0.36 per common share.

• Mattel repurchased 735,600 shares of its common stock during the first quarter of 2014 at a cost of approximately $28 million.

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Results of Operations—First Quarter

Consolidated Results

Net sales for the first quarter of 2014 were $946.2 million, a 5% decrease, as compared to $995.6 million in the first quarter of 2013, with an unfavorable impact from changes in currency exchange rates of 1 percentage point. Net loss for the first quarter of 2014 was $11.2 million, or $(0.03) per diluted share, as compared to net income of $38.5 million, or $0.11 per diluted share, in the first quarter of 2013. Net income for the first quarter of 2014 was negatively impacted by lower sales volume, lower gross margins, and higher selling and administrative expenses, partially offset by lower advertising and promotion expenses and lower income taxes.

The following table provides a summary of Mattel’s consolidated results for the first quarter of 2014 and 2013 (in millions, except percentage and basis point information):

	For the Three Months Ended March 31,												Year/Year Change
	2014						2013
	Amount			% of Net Sales			Amount			% of Net Sales			%			Basis Points of Net Sales
Net sales	$	946.2			100.0	%	$	995.6			100.0	%		–5	%
Gross profit	$	481.5			50.9	%	$	540.0			54.2	%		–11	%		(330	)
Advertising and promotion expenses		90.8			9.6	%		104.5			10.5	%		–13	%		(90	)
Other selling and administrative expenses		384.5			40.6	%		369.7			37.1	%		4	%		350
Operating income		6.2			0.7	%		65.8			6.6	%		–91	%		(590	)
Interest expense		17.2			1.8	%		20.3			2.0	%		–15	%		(20	)
Interest (income)		(1.3	)		–0.1	%		(1.4	)		–0.1	%		–9	%		—
Other non-operating (income) expense, net		(0.3	)					2.7
(Loss) income before income taxes	$	(9.4	)		–1.0	%	$	44.2			4.4	%		–121	%		(540	)

Sales

Net sales for the first quarter of 2014 were $946.2 million, a 5% decrease, as compared to $995.6 million in the first quarter of 2013, with an unfavorable impact from changes in currency exchange rates of 1 percentage point.

The following table provides a summary of Mattel’s consolidated gross sales by brand for the first quarter of 2014 and 2013:

	For the Three Months Ended March 31,
	2014		2013		% Change
	(In millions, except percentage information)
Mattel Girls & Boys Brands:
Barbie	$	169.9	$	198.1		–14	%
Other Girls		212.9		205.4		4	%
Wheels		130.7		133.6		–2	%
Entertainment		143.4		155.1		–8	%
		656.9		692.2		–5	%
Fisher-Price Brands:
Core Fisher-Price		181.4		191.3		–5	%
Fisher-Price Friends		76.7		87.0		–12	%
Other Fisher-Price		13.3		9.0		48	%
		271.4		287.3		–6	%
American Girl Brands		105.9		100.5		5	%
Other		7.0		8.4
Total Gross Sales	$	1,041.2	$	1,088.4		–4	%

Gross sales were $1.04 billion in the first quarter of 2014, down $47.2 million or 4%, as compared to $1.09 billion in the first quarter of 2013, with an unfavorable impact from changes in currency exchange rates of 1 percentage point. The decrease in gross sales was primarily due to lower sales of Barbie and Fisher-Price Friends products. The 14% decrease in Barbie gross sales was due to lower consumer takeaway in domestic markets and higher retail inventory levels remaining from prior year in some international markets. Of the 12% decrease in Fisher-Price Friends gross sales, 5% was due to lower sales of Disney Jake and the Never Land Pirates products, and 4% was due to lower sales of Nickelodeon^® products.

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Cost of Sales

Cost of sales as a percentage of net sales was 49.1% in the first quarter of 2014, as compared to 45.8% in the first quarter of 2013. Cost of sales increased by $9.1 million, or 2%, from $455.6 million in the first quarter of 2013 to $464.7 million in the first quarter of 2014, as compared to a 5% decrease in net sales. Within cost of sales, product and other costs increased by $9.3 million, or 3%, from $361.6 million in the first quarter of 2013 to $370.9 million in the first quarter of 2014; royalty expense increased by $0.8 million, or 2%, from $33.8 million in the first quarter of 2013 to $34.6 million in the first quarter of 2014; and freight and logistics expenses decreased by $1.0 million, or 2%, from $60.2 million in the first quarter of 2013 to $59.2 million in the first quarter of 2014.

Gross Profit

Gross profit as a percentage of net sales decreased from 54.2% in the first quarter of 2013 to 50.9% in the first quarter of 2014. The decrease in gross profit as a percentage of net sales was primarily due to efforts to reduce inventory levels, including higher close-out sales and higher inventory obsolescence, unfavorable product mix, and higher input costs partially offset by price increases and savings from Operational Excellence 3.0 programs.

Advertising and Promotion Expenses

Advertising and promotion expenses primarily consist of: (i) media costs, which primarily include the media, planning, and buying fees for television, print, and online advertisements, (ii) non-media costs, which primarily include commercial and website production, merchandising, and promotional costs, (iii) retail advertising costs, which primarily include consumer direct catalogs, newspaper inserts, fliers, and mailers and (iv) generic advertising costs, which primarily include trade show costs. Advertising and promotion expenses as a percentage of net sales decreased from 10.5% in the first quarter of 2013 to 9.6% in the first quarter of 2014, primarily due to efforts to improve the effectiveness of advertising and a shift in the timing of advertising to later in the year.

Other Selling and Administrative Expenses

Other selling and administrative expenses were $384.5 million in the first quarter of 2014, as compared to $369.7 million in the first quarter of 2013, or 40.6% of net sales in the first quarter of 2014, as compared to 37.1% of net sales in the first quarter of 2013. The increase in other selling and administrative expenses was due to incremental severance and other termination-related costs of approximately $16 million.

Non-Operating Items

Interest expense decreased by $3.1 million from $20.3 million in the first quarter of 2013 to $17.2 million in the first quarter of 2014, primarily due to lower average interest rates related to long-term borrowings.

Provision for Income Taxes

Mattel’s provision for income taxes was $1.8 million in the first quarter of 2014, as compared to $5.7 million in the first quarter of 2013. In the first quarter of 2014, Mattel recognized net discrete tax expense of $3.7 million primarily related to reassessments of prior years’ tax liabilities based on the status of audits and tax filings in various jurisdictions around the world, settlements, and enacted tax law changes. In the first quarter of 2013, Mattel recognized net discrete tax benefits of $4.0 million primarily related to enacted tax law changes.

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North America Segment

The following table provides a summary of Mattel’s gross sales by brand for the North America segment for the first quarter of 2014 and 2013:

	For the Three Months Ended March 31,
	2014		2013		% Change
	(In millions, except percentage information)
Mattel Girls & Boys Brands:
Barbie	$	63.8	$	68.2		–6	%
Other Girls		92.2		87.8		5	%
Wheels		61.7		65.4		–6	%
Entertainment		69.8		73.6		–5	%
		287.5		295.0		–3	%
Fisher-Price Brands:
Core Fisher-Price		99.4		103.9		–4	%
Fisher-Price Friends		39.2		46.8		–16	%
Other Fisher-Price		13.0		8.3		57	%
		151.6		159.0		–5	%
Other		2.3		2.5
Total Gross Sales	$	441.4	$	456.5		–3	%

Gross sales for the North America segment were $441.4 million in the first quarter of 2014, down $15.1 million or 3%, as compared to $456.5 million in the first quarter of 2013. The decrease in the North America segment gross sales was primarily due to lower sales of Fisher-Price Friends products. Of the 16% decrease in Fisher-Price Friends gross sales, 7% was due to lower sales of Nickelodeon products, 5% was due to lower sales of Thomas and Friends products, and 5% was due to lower sales of Disney Jake and the Never Land Pirates products. Cost of sales increased 5% in the first quarter of 2014, compared to a 4% decrease in net sales, primarily due to higher product and other costs. Gross margins decreased as a result of higher inventory obsolescence, unfavorable product mix, and higher input costs partially offset by price increases and savings from Operational 3.0 programs.

North America segment income decreased by 28% to $48.7 million in the first quarter of 2014, as compared to $68.1 million in the first quarter of 2013, primarily due to lower gross profit, partially offset by lower advertising and promotion expenses and lower other selling and administrative expenses.

International Segment

The following table provides a summary of percentage changes in gross sales within the International segment in the first quarter of 2014 versus 2013:

	% Change in  Gross Sales		Impact of Change in Currency Rates (in % pts)
Total International Segment		–7		–1
Europe		–1		—
Latin America		–21		–7
Asia Pacific		–13		–3

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The following table provides a summary of Mattel’s gross sales by brand for the International segment for the first quarter of 2014 and 2013:

	For the Three Months Ended March 31,
	2014		2013		% Change
	(In millions, except percentage information)
Mattel Girls & Boys Brands:
Barbie	$	106.1	$	129.9		–18	%
Other Girls		120.7		117.6		3	%
Wheels		69.0		68.2		1	%
Entertainment		73.6		81.5		–10	%
		369.4		397.2		–7	%
Fisher-Price Brands:
Core Fisher-Price		82.0		87.4		–6	%
Fisher-Price Friends		37.5		40.2		–7	%
Other Fisher-Price		0.3		0.7		–55	%
		119.8		128.3		–7	%
Other		—		1.5
Total Gross Sales	$	489.2	$	527.0		–7	%

Gross sales for the International segment were $489.2 million in the first quarter of 2014, down $37.8 million or 7%, as compared to $527.0 million in the first quarter of 2013, with an unfavorable impact from changes in currency exchange rates of 1 percentage point. The decrease in the International segment gross sales was primarily due to lower sales of Barbie and Entertainment products. The 18% decrease in Barbie gross sales was due to higher retail inventory levels remaining from prior year in some international markets. Of the 10% decrease in Entertainment gross sales, 9% was due to lower sales of CARS products. Cost of sales decreased by 2% in the first quarter of 2014, as compared to an 8% decrease in net sales, primarily due to lower product and other costs. Gross margins decreased as a result of efforts to reduce inventory levels, including higher close-out sales and higher inventory obsolescence, unfavorable product mix, and higher input costs partially offset by price increases and savings from Operational Excellence 3.0 programs.

International segment income decreased 49% to $31.5 million in the first quarter of 2014, as compared to $62.0 million in the first quarter of 2013, primarily due to lower gross profit, partially offset by lower advertising and promotion expenses.

American Girl Segment

The following table provides a summary of Mattel’s gross sales by brand for the American Girl segment for the first quarter of 2014 and 2013:

	For the Three Months Ended March 31,
	2014		2013		% Change
	(In millions, except percentage information)
American Girl Segment:
American Girl Brands	$	105.9	$	100.5		5	%
Other Brands		4.7		4.5		3	%
Total American Girl Segment	$	110.6	$	105.0		5	%

Gross sales for the American Girl segment were $110.6 million in the first quarter of 2014, up $5.6 million or 5%, as compared to $105.0 million in the first quarter of 2013, with no impact from changes in currency exchange rates. Of the 5% increase in American Girl Brands gross sales, 6% was due to higher sales of the 2014 Girl of the Year, Isabelle™. Cost of sales increased 8% in the first quarter 2014, as compared to a 5% increase in net sales, primarily due to higher product and other costs. Gross margins decreased as a result of unfavorable product mix.

American Girl segment income decreased by 23% to $9.2 million in the first quarter of 2014, as compared to $12.0 million in the first quarter of 2013, primarily due to higher advertising and promotion expenses and higher other selling and administrative expenses, partially offset by higher gross profit.

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Operational Excellence 3.0

Beginning in 2013, Mattel initiated the third phase of its cost savings program, Operational Excellence 3.0, which targets cumulative gross cost savings of approximately $175 million by the end of 2014. The cost savings program is designed to generate sustainable cost savings through the following primary initiatives:

• Manufacturing efficiencies through automation, Lean manufacturing principles, design for manufacturing, enterprise quality, and packaging optimization,

• Indirect procurement,

• Operational efficiencies related to enhanced International clustering and realignment of North America operations, and

• A reduction in Mattel’s professional workforce to drive efficiencies throughout the organization and align its infrastructure with realistic revenue assumptions, which resulted in severance and other termination-related costs of approximately $22 million in the first quarter of 2014.

For the first quarter of 2014, Mattel realized gross cost savings excluding severance charges and investments of approximately $16 million (or approximately $8 million of net expense including severance charges and investments). Of the gross cost savings realized in the first quarter of 2014, approximately $12 million was reflected within gross profit, approximately $3 million within other selling and administrative expenses, and approximately $1 million within advertising and promotion expenses.

From the commencement of Operational Excellence 3.0 through March 31, 2014, Mattel has realized approximately $76 million of cumulative gross cost savings. Mattel continues to be on track to realize approximately $175 million in sustainable cumulative gross savings by the end of 2014.

Income Taxes

Mattel’s provision for income taxes was $1.8 million in the first quarter of 2014, as compared to $5.7 million in the first quarter of 2013. In the first quarter of 2014, Mattel recognized net discrete tax expense of $3.7 million primarily related to reassessments of prior years’ tax liabilities based on the status of audits and tax filings in various jurisdictions around the world, settlements, and enacted tax law changes. In the first quarter of 2013, Mattel recognized net discrete tax benefits of $4.0 million primarily related to enacted tax law changes.

In the normal course of business, Mattel is regularly audited by federal, state and foreign tax authorities. The IRS is currently auditing Mattel’s 2010 and 2011 federal income tax returns. Mattel expects that the completion of the audit will occur in the second quarter of 2014.

Based on the current status of federal, state and foreign audits, Mattel believes it is reasonably possible that in the next twelve months, the total unrecognized tax benefits could decrease by approximately $40 million to $60 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.

Liquidity and Capital Resources

Mattel’s primary sources of liquidity are its cash and equivalents balances, access to short-term borrowing facilities, including its $1.60 billion domestic unsecured committed revolving credit facility (“Credit Facility”), and issuances of long-term debt securities. Cash flows from operating activities could be negatively impacted by decreased demand for Mattel’s products, which could result from factors such as adverse economic conditions and changes in public and consumer preferences, or by increased costs associated with manufacturing and distribution of products or shortages in raw materials or component parts. Additionally, Mattel’s ability to issue long-term debt and obtain seasonal financing could be adversely affected by factors such as global economic crises and tight credit environments, an inability to meet its debt covenant requirements, which include maintaining consolidated debt-to-earnings before interest, taxes, depreciation, and amortization (“EBITDA”) and interest coverage ratios, or a deterioration of Mattel’s credit ratings. Mattel’s ability to conduct its operations could be negatively impacted should these or other adverse conditions affect its primary sources of liquidity.

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Of Mattel’s $897.3 million in cash and equivalents as of March 31, 2014, approximately $788 million is held by foreign subsidiaries. Mattel may need to accrue and pay additional income taxes if some or all of the undistributed earnings of foreign subsidiaries were repatriated. Mattel does not intend nor foresee a need to repatriate undistributed earnings of foreign subsidiaries. Mattel has several liquidity options to fund its domestic operations and obligations, including investing and financing activities such as dividends, share repurchases, and debt service. Positive cash flows generated by its domestic operations, the unused Credit Facility of $1.60 billion as of March 31, 2014, and access to both long-term and short-term public and private debt markets at highly competitive interest rates are available to fund domestic operations and obligations. If these sources are not adequate, Mattel also has the ability to repatriate highly taxed foreign earnings, receive repayment of intercompany loans to foreign subsidiaries, and distribute liquidating dividends from foreign subsidiaries, all of which would have a very nominal impact, if any, on Mattel’s tax liabilities. Mattel believes that its policy to indefinitely reinvest the earnings of its foreign subsidiaries will not result in and is not reasonably likely to result in a material change to Mattel’s liquidity position.

Current Market Conditions

Mattel is exposed to financial market risk resulting from changes in interest and foreign currency rates. Mattel believes that it has ample liquidity to fund its business needs, including beginning of year cash and equivalents, cash flows from operations, and access to the commercial paper markets and its Credit Facility, which it uses for seasonal working capital requirements. As of March 31, 2014, Mattel had available incremental borrowing resources totaling $1.60 billion under the Credit Facility, and Mattel has not experienced any limitations on its ability to access this source of liquidity. Market conditions could affect certain terms of other debt instruments that Mattel enters into from time to time.

Mattel monitors the third-party depository institutions that hold the Company’s cash and equivalents. Mattel’s emphasis is primarily on safety and liquidity of principal, and secondarily on maximizing the yield on those funds. Mattel diversifies its cash and equivalents among counterparties and securities to minimize risks.

Mattel is subject to credit risks relating to the ability of its counterparties in hedging transactions to meet their contractual payment obligations. The risks related to creditworthiness and nonperformance have been considered in the fair value measurements of Mattel’s foreign currency forward exchange contracts. Mattel closely monitors its counterparties and takes action, as necessary, to manage its counterparty credit risk.

Mattel expects that some of its customers and vendors may experience difficulty in obtaining the liquidity required to buy inventory or raw materials. Mattel monitors its customers’ financial condition and their liquidity in order to mitigate Mattel’s accounts receivable collectibility risks, and customer terms and credit limits are adjusted, if necessary. Additionally, Mattel uses a variety of financial arrangements to ensure collectibility of accounts receivable of customers deemed to be a credit risk, including requiring letters of credit, factoring, purchasing various forms of credit insurance with unrelated third parties, or requiring cash in advance of shipment.

Mattel sponsors defined benefit pension plans and postretirement benefit plans for its employees. Actual returns below the expected rate of return, along with changes in interest rates that affect the measurement of the liability, would impact the amount and timing of Mattel’s future contributions to these plans.

Capital and Investment Framework

To guide future capital deployment decisions, with a goal of maximizing stockholder value, Mattel’s Board of Directors established the following capital and investment framework:

• To maintain approximately $800 million to $1 billion in year-end cash available to fund a substantial portion of seasonal working capital,

• To maintain a year-end debt-to-capital ratio of about 35%,

• To invest approximately $180 million to $200 million in capital expenditures annually to maintain and grow the business,

• To make strategic opportunistic acquisitions, and

• To return excess funds to stockholders through dividends and share repurchases.

Over the long term, assuming cash flows from operating activities remain strong, Mattel plans to use its free cash flows to invest in strategic acquisitions and to return funds to stockholders through cash dividends and share repurchases. Mattel’s share repurchase program has no expiration date and repurchases will take place from time to time, depending on market conditions. The ability to successfully implement the capital deployment plan is directly dependent on Mattel’s ability to generate strong cash flows from operating activities. There is no assurance that Mattel will continue to generate strong cash flows from operating activities or achieve its targeted goals for investing activities.

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Operating Activities

Cash flows provided by operating activities were $60.6 million in the first three months of 2014, as compared to cash flows used for operating activities of $62.4 million in the first three months of 2013. The change in cash flows from operating activities was primarily due to lower working capital usage, partially offset by lower net income.

Investing Activities

Cash flows used for investing activities were $29.6 million in the first three months of 2014, as compared to $65.6 million in the first three months of 2013. The decrease in cash flows used for investing activities was primarily due to proceeds from foreign currency forward exchange contracts and lower purchases of other property, plant, and equipment.

Financing Activities

Cash flows used for financing activities were $168.9 million in the first three months of 2014, as compared to cash flows provided by financing activities of $57.3 million in the first three months of 2013. The change in cash flows from financing activities was primarily due to net proceeds from long-term borrowings in 2013 and lower proceeds from the exercise of stock options, partially offset by repayments of long-term borrowings in 2013.

Seasonal Financing

Mattel maintains and periodically amends or replaces its domestic unsecured committed revolving credit facility with a commercial bank group. The facility is used as a back-up to Mattel’s commercial paper program, which is used as the primary source of financing for the seasonal working capital requirements of its domestic subsidiaries. The agreement governing the credit facility was amended and restated on March 11, 2013 to, among other things, (i) extend the maturity date of the credit facility to March 12, 2018, (ii) increase aggregate commitments under the credit facility to $1.60 billion, with an “accordion feature,” which allows Mattel to increase the aggregate availability under the credit facility to $1.85 billion under certain circumstances, (iii) decrease the applicable interest rate margins to a range of 0.00% to 0.75% above the applicable base rate for base rate loans and 0.88% to 1.75% above the applicable LIBOR for Eurodollar rate loans, in each case depending on Mattel’s senior unsecured long-term debt rating, and (iv) decrease commitment fees to a range of 0.08% to 0.28% of the unused commitments under the credit facility.

Mattel is required to meet financial ratio covenants at the end of each quarter and fiscal year, using the formulae specified in the credit agreement to calculate the ratios. Mattel was in compliance with such covenants at the end of the three months ended March 31, 2014. As of March 31, 2014, Mattel’s consolidated debt-to-EBITDA ratio, as calculated per the terms of the credit agreement, was 1.20 to 1 (compared to a maximum allowed of 3.00 to 1), and Mattel’s interest coverage ratio was 17.74 to 1 (compared to a minimum required of 3.50 to 1).

The credit agreement is a material agreement, and failure to comply with the financial ratio covenants may result in an event of default under the terms of the credit facility. If Mattel were to default under the terms of the credit facility, its ability to meet its seasonal financing requirements could be adversely affected.

To finance seasonal working capital requirements of certain foreign subsidiaries, Mattel avails itself of individual short-term credit lines with a number of banks. Mattel expects to extend the majority of these credit lines throughout 2014.

Mattel believes its cash on hand, amounts available under its credit facility, and its foreign credit lines will be adequate to meet its seasonal financing requirements in 2014.

Financial Position

Mattel’s cash and equivalents decreased $142.0 million to $897.3 million at March 31, 2014, as compared to $1.04 billion at December 31, 2013. The decrease was primarily due to dividend payments, purchases of tools, dies, and molds and other property, plant, and equipment, and share repurchases, partially offset by lower working capital usage.

Accounts receivable decreased $497.5 million to $762.6 million at March 31, 2014, as compared to $1.26 billion at December 31, 2013. Inventory increased $82.0 million to $650.8 million at March 31, 2014, as compared to $568.8 million at December 31, 2013. The decrease in accounts receivable and increase in inventory were primarily due to the seasonality of Mattel’s business.

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Accounts payable and accrued liabilities decreased $354.4 million to $661.0 million at March 31, 2014, as compared to $1.02 billion at December 31, 2013. The decrease was primarily due to the timing and amount of payments for various liabilities, including advertising and promotion, incentive compensation, and royalties.

As of March 31, 2014, Mattel had no foreign short-term borrowings outstanding, which is a decrease of $4.3 million from December 31, 2013. Noncurrent long-term debt was $1.60 billion at both March 31, 2014 and December 31, 2013.

A summary of Mattel’s capitalization is as follows:

	March 31, 2014				March 31, 2013				December 31, 2013
	(In millions, except percentage information)
2010 Senior Notes	$	500.0	10	%	$	500.0	9	%	$	500.0	9	%
2011 Senior Notes		600.0	11			600.0	12			600.0	12
2013 Senior Notes		500.0	10			500.0	9			500.0	9
Total noncurrent long-term debt		1,600.0	31			1,600.0	30			1,600.0	30
Other noncurrent liabilities		499.5	9			647.0	12			540.6	10
Stockholders’ equity		3,097.5	60			3,048.2	58			3,251.6	60
	$	5,197.0	100	%	$	5,295.2	100	%	$	5,392.2	100	%

Mattel’s debt-to-total capital ratio, including short-term borrowings and current portion of long-term debt, decreased from 35.2% at March 31, 2013 to 34.1% at March 31, 2014 as a result of lower borrowings and an increase in stockholders’ equity. Mattel’s objective is to maintain a year-end debt-to-capital ratio of about 35%.

Litigation

See Item 1 “Financial Statements—Note 20 to the Consolidated Financial Statements—Contingencies” of this Quarterly Report on Form 10-Q.

Application of Critical Accounting Policies and Estimates

Mattel’s critical accounting policies and estimates are included in its Annual Report on Form 10-K for the year ended December 31, 2013 and did not change during the first three months of 2014.

New Accounting Pronouncements

There have been no new accounting pronouncements issued but not yet adopted that are expected to materially affect Mattel’s financial condition or results of operations.

Non-GAAP Financial Measure

In this Quarterly Report on Form 10-Q, Mattel includes a non-GAAP financial measure, gross sales, which it uses to analyze its continuing operations and to monitor, assess, and identify meaningful trends in its operating and financial performance. Net sales, as reported in the consolidated statements of operations, include the impact of sales adjustments, such as trade discounts and other allowances. Gross sales represent sales to customers, excluding the impact of sales adjustments.

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Consistent with its segment reporting, Mattel presents changes in gross sales as a metric for comparing its aggregate, business unit, brand, and geographic results to highlight significant trends in Mattel’s business. Changes in gross sales are discussed because, while Mattel records the detail of such sales adjustments in its financial accounting systems at the time of sale, such sales adjustments are generally not associated with individual products, making net sales less meaningful. A reconciliation of gross sales to the most directly comparable GAAP financial measure, net sales, is as follows:

	For the Three Months Ended
	March 31, 2014			March 31, 2013
	(In thousands)
Revenues by Segment
North America	$	441,431		$	456,469
International		489,239			527,011
American Girl		110,558			104,950
Gross sales		1,041,228			1,088,430
Sales adjustments		(95,051	)		(92,824	)
Net sales	$	946,177		$	995,606

Item 3. Quantitative and Qualitative Disclosures About Market Risk.

Foreign Currency Exchange Rate Risk

Currency exchange rate fluctuations may impact Mattel’s results of operations and cash flows. Inventory purchase and sale transactions denominated in the Euro, British pound sterling, Mexican peso, Brazilian real, and Indonesian rupiah are the primary transactions that caused foreign currency transaction exposure for Mattel. Mattel seeks to mitigate its exposure to market risk by monitoring its foreign currency transaction exposure for the year and partially hedging such exposure, using foreign currency forward exchange contracts primarily to hedge its purchase and sale of inventory and other intercompany transactions denominated in foreign currencies. These contracts generally have maturity dates of up to 18 months. For those intercompany receivables and payables that are not hedged, the transaction gains or losses are recorded in the consolidated statement of operations in the period in which the exchange rate changes as part of operating income or other non-operating (income) expense, net based on the nature of the underlying transaction. Transaction gains or losses on hedged intercompany inventory transactions are recorded in the consolidated statement of operations in the period in which the inventory is sold to customers. In addition, Mattel manages its exposure to currency exchange rate fluctuations through the selection of currencies used for international borrowings. Mattel does not trade in financial instruments for speculative purposes.

Mattel’s financial position is also impacted by currency exchange rate fluctuations on translation of its net investments in subsidiaries with non-US dollar functional currencies. Assets and liabilities of subsidiaries with non-US dollar functional currencies are translated into US dollars at fiscal period-end exchange rates. Income, expense, and cash flow items are translated at weighted average exchange rates prevailing during the fiscal year. The resulting currency translation adjustments are recorded as a component of accumulated other comprehensive loss within stockholders’ equity. Mattel’s primary currency translation exposures during the first quarter of 2014 were related to its net investments in entities having functional currencies denominated in the Brazilian real, Australian dollar, Indonesian rupiah, and Argentine peso.

There are numerous factors impacting the amount by which Mattel’s financial results are affected by foreign currency translation and transaction gains and losses resulting from changes in currency exchange rates, including, but not limited to, the level of foreign currency forward exchange contracts in place at a given time and the volume of foreign currency denominated transactions in a given period. However, assuming that such factors were held constant, Mattel estimates that a 1 percent change in the US dollar Trade-Weighted Index would impact Mattel’s net sales by approximately 0.5% and its full year earnings per share by approximately $0.01 to $0.02.

Venezuelan Operations

Since January 1, 2010, Mattel has accounted for Venezuela as a highly inflationary economy as the three-year cumulative inflation rate for Venezuela exceeded 100%. Accordingly, Mattel’s Venezuelan subsidiary uses the US dollar as its functional currency, and monetary assets and liabilities denominated in Venezuelan bolivar fuerte (“BsF”) generate income or expense for changes in value associated with foreign currency exchange rate fluctuations against the US dollar. From January 2010 through January 2013, Mattel’s Venezuelan subsidiary used the Sistema de Transacciones con Titulos en Moneda Extranjera (“SITME”) rate, which was controlled by the Central Bank of Venezuela, to remeasure monetary assets and liabilities denominated in BsF. The SITME rate was quoted at 5.30 BsF per US dollar as of December 31, 2012.

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During February 2013, the Central Bank of Venezuela revised its official exchange rate to 6.30 BsF per US dollar and eliminated the SITME rate. Since February 2013, Mattel’s Venezuelan subsidiary has used the official exchange rate as its remeasurement rate. The change in the exchange rate resulted in an unrealized foreign currency exchange loss of approximately $5 million, which was primarily recognized within other non-operating (income) expense, net in the consolidated statements of operations in the first quarter of 2013.

During March 2013, the Venezuelan government announced a complementary currency exchange system, the Sistema Complementario de Administracion de Divisas 1 (“SICAD 1”). Participation in SICAD 1 is controlled by the Venezuelan government. SICAD 1 is intended to function as an auction system, allowing entities in specific sectors to bid for US dollars to be used for specified import transactions. During December 2013, the government regulation that created SICAD 1 was amended to expand its use and to require publication of the average exchange rate implied by transactions settled in SICAD 1 auctions. Currently, it is unclear as to whether companies are able to remit dividends using SICAD 1. In January 2014, the Venezuelan government announced a new foreign currency administration body, the National Center for Foreign Commerce (“CENCOEX”), which approves certain transactions at the official rate.

During February 2014, the Venezuelan government created a third currency exchange system called the Sistema Complementario de Administracion de Divisas 2 (“SICAD 2”), which is expected to provide a greater supply of US dollars from sources other than the Venezuelan government, is expected to allow all sectors and companies to participate, and is expected to permit US dollars to be offered in cash or bonds. Foreign exchange transactions in SICAD 2 will be regulated by the Central Bank of Venezuela and administered by registered banks, brokerage firms, and exchange houses that have been authorized by the Central Bank of Venezuela.

Mattel has not accessed US dollars in Venezuela through SICAD 1 and does not expect to be able to access the SICAD 1 rate in the foreseeable future. Mattel is currently monitoring and assessing the currency exchange rates and restrictions associated with SICAD 1. Based on a number of factors, including the restrictions placed on eligible participants, the amount of US dollars available to purchase through the auction process, and the ineligibility of past import transactions to be settled through SICAD 1, Mattel does not currently believe it is appropriate to use the SICAD 1 rate as its remeasurement rate. However, had Mattel used the SICAD 1 rate of 10.70 BsF per US dollar as of March 31, 2014 as its remeasurement rate, it would have recognized a pre-tax charge of approximately $9 million in its consolidated statement of operations.

Since SICAD 2 began operations on March 24, 2014, Mattel has not been able to access US dollars in Venezuela through SICAD 2. Mattel is currently monitoring the restrictions associated with SICAD 2 and, as Mattel has been unable to access the SICAD 2 system, it does not currently believe it is appropriate to use the SICAD 2 rate as its remeasurement rate. However, had Mattel used the SICAD 2 rate of 50.85 BsF per US dollar as of March 31, 2014 as its remeasurement rate, it would have resulted in a pre-tax charge of approximately $19 million in its consolidated statement of operations.

Mattel’s Venezuelan subsidiary represented less than 0.1% of Mattel’s consolidated net sales in the first quarter of 2014 and had approximately $21 million of net monetary assets denominated in BsF as of March 31, 2014. Venezuela currency matters, along with economic and political instability, continue to impact the operating results of Mattel’s Venezuelan subsidiary. If the economic or political conditions significantly worsen, Mattel may consider ceasing operations of its Venezuelan subsidiary, which could result in a pre-tax charge to its consolidated statement of operations of up to $95 million.

Item 4. Controls and Procedures.

Evaluation of Disclosure Controls and Procedures

As of March 31, 2014, Mattel’s disclosure controls and procedures were evaluated, with the participation of Mattel’s principal executive officer and principal financial officer, to assess whether they are effective in providing reasonable assurance that information required to be disclosed by Mattel in the reports that it files or submits under the Securities Exchange Act of 1934 is accumulated and communicated to management, including its principal executive officer and principal financial officer, as appropriate, to allow timely decisions regarding required disclosure and to provide reasonable assurance that such information is recorded, processed, summarized, and reported within the time periods specified in Securities and Exchange Commission rules and forms. Based on this evaluation, Bryan G. Stockton, Mattel’s principal executive officer, and Kevin M. Farr, Mattel’s principal financial officer, concluded that these disclosure controls and procedures were effective as of March 31, 2014.

Changes in Internal Control Over Financial Reporting

During the quarter ended March 31, 2014, Mattel made no changes to its internal control over financial reporting that have materially affected, or are reasonably likely to materially affect, its internal control over financial reporting.

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PART II—OTHER INFORMATION

Item 1. Legal Proceedings.

The content of Part I, Item 1 “Financial Statements—Note 20 to the Consolidated Financial Statements—Contingencies” of this Quarterly Report on Form 10-Q is hereby incorporated by reference in its entirety in this Item 1.

Item 1A. Risk Factors.

There have been no material changes to the risk factors disclosed under Part I, Item 1A “Risk Factors” in Mattel’s 2013 Annual Report on Form 10-K.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.

Recent Sales of Unregistered Equity Securities

During the first quarter of 2014, Mattel did not sell any unregistered equity securities.

Issuer Purchases of Equity Securities

This table provides certain information with respect to Mattel’s purchases of its common stock during the first quarter of 2014:

Period	Total Number of Shares (or Units) Purchased (1)		Average Price Paid per Share (or Unit)		Total Number of Shares (or Units) Purchased as Part of Publicly Announced Plans or Programs		Maximum Number (or Approximate Dollar Value) of Shares (or Units) that May Yet Be Purchased Under the Plans or Programs (2)
January 1—31		15,603	$	46.47		—	$	380,178,489
February 1—28		679,312		36.47		—		380,178,489
March 1—31		742,969		37.66		735,600		352,490,163
Total		1,437,884	$	37.19		735,600	$	352,490,163

(1) The total number of shares purchased includes 702,284 shares withheld from employees to satisfy minimum tax withholding obligations that occur upon vesting of restricted stock units. These shares were not purchased as part of a publicly announced repurchase plan or program.

(2) Mattel’s share repurchase program was first announced on July 21, 2003. Repurchases under the program will take place from time to time, depending on market conditions. Mattel’s share repurchase program has no expiration date.

Item 3. Defaults Upon Senior Securities.

None.

Item 4. Mine Safety Disclosures.

Not applicable.

Item 5. Other Information.

None.

36

Item 6. Exhibits.

		Incorporated by Reference
Exhibit No.	Exhibit Description	Form	File No.	Exhibit(s)	Filing Date
3.0	Restated Certificate of Incorporation of Mattel, Inc.	8-K	001-05647	99.0	May 21, 2007
3.1	Amended and Restated By-laws of Mattel, Inc.	10-Q	001-05647	3.1	July 20, 2011
4.0	Specimen Stock Certificate with respect to Mattel’s Common Stock	10-Q	001-05647	4.0	August 3, 2007
12.0*	Computation of Earnings to Fixed Charges
31.0*	Certification of Principal Executive Officer dated April 29, 2014 pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.1*	Certification of Principal Financial Officer dated April 29, 2014 pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.0**	Certifications of Principal Executive Officer and Principal Financial Officer dated April 29, 2014 pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101.INS*	XBRL Instance Document
101.SCH*	XBRL Taxonomy Extension Schema Document
101.CAL*	XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF*	XBRL Taxonomy Extension Definition Linkbase Document
101.LAB*	XBRL Taxonomy Extension Label Linkbase Document
101.PRE*	XBRL Taxonomy Extension Presentation Linkbase Document

+ Management contract or compensatory plan or arrangement.

* Filed herewith.

** Furnished herewith. This exhibit should not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934.

37

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

MATTEL, INC.
Registrant
By:	/s/ H. Scott Topham
	H. Scott Topham
	Senior Vice President and Corporate
	Controller (Duly authorized officer and
	chief accounting officer)

Date: April 29, 2014

38

EX-12.0

EXHIBIT 12.0

MATTEL, INC. AND SUBSIDIARIES

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

(Unaudited; in thousands, except ratios)	For the Three Months Ended March 31, 2014			For the Years Ended December 31,
				2013		2012		2011		2010		2009
Earnings Available for Fixed Charges:
Income from continuing operations before income taxes	$	(9,421	)	$	1,099,128	$	945,045	$	970,673	$	846,825	$	660,047
Add: Non-controlling interest losses in consolidated subsidiaries		—			—		—		—		—		222
Add:
Interest expense		17,246			78,505		88,835		75,332		64,839		71,843
Appropriate portion of rents (a)		9,351			37,006		33,736		30,696		34,544		34,439
Earnings available for fixed charges	$	17,176		$	1,214,639	$	1,067,616	$	1,076,701	$	946,208	$	766,551
Fixed Charges:
Interest expense	$	17,246		$	78,505	$	88,835	$	75,332	$	64,839	$	71,843
Appropriate portion of rents (a)		9,351			37,006		33,736		30,696		34,544		34,439
Fixed charges	$	26,597		$	115,511	$	122,571	$	106,028	$	99,383	$	106,282
Ratio of earnings to fixed charges		(b	)		10.52 X		8.71 X		10.15 X		9.52 X		7.21 X

(a) Portion of rental expenses that is deemed representative of an interest factor, which is one-third of total rental expense.

(b) Earnings for the three months ended March 31, 2014 were inadequate to cover fixed charges by $9.4 million.

EX-31.0

EXHIBIT 31.0

CERTIFICATION

I, Bryan G. Stockton, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Mattel, Inc.;

2. Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: April 29, 2014	By:	/s/ BRYAN G. STOCKTON
		Bryan G. Stockton
		Chairman and Chief Executive Officer
		(principal executive officer)

EX-31.1

EXHIBIT 31.1

CERTIFICATION

I, Kevin M. Farr, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Mattel, Inc.;

2. Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: April 29, 2014	By:	/s/ KEVIN M. FARR
		Kevin M. Farr
		Chief Financial Officer
		(principal financial officer)

EX-32.0

EXHIBIT 32.0

CERTIFICATIONS PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Mattel, Inc. a Delaware corporation (the “Company”), on Form 10-Q for the quarter ended March 31, 2014, as filed with the Securities and Exchange Commission (the “Report”), Bryan G. Stockton, Chairman and Chief Executive Officer, and Kevin M. Farr, Chief Financial Officer, of the Company, do each hereby certify, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. § 1350) that, to his knowledge:

(1) the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: April 29, 2014	By:	/s/ BRYAN G. STOCKTON
		Bryan G. Stockton
		Chairman and Chief Executive Officer

/s/ KEVIN M. FARR

Kevin M. Farr

Chief Financial Officer

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Derivative Instruments (Tables)

3 Months Ended

Mar. 31, 2014

Derivative Assets and Liabilities

The following table presents Mattel’s derivative assets and liabilities:

	Asset Derivatives
	Balance Sheet Classification	Fair Value
		March 31, 2014		March 31, 2013		December 31, 2013
				(In thousands)
Derivatives designated as hedging instruments:
Foreign currency forward exchange contracts	Prepaid expenses and other current assets	$	3,183	$	10,868	$	415
Foreign currency forward exchange contracts	Other noncurrent assets		307		—		—
Total derivatives designated as hedging instruments		$	3,490	$	10,868	$	415
Derivatives not designated as hedging instruments:
Foreign currency forward exchange contracts	Prepaid expenses and other current assets	$	3,220	$	—	$	1,895
Total		$	6,710	$	10,868	$	2,310
	Liability Derivatives
	Balance Sheet Classification	Fair Value
		March 31, 2014		March 31, 2013		December 31, 2013
				(In thousands)
Derivatives designated as hedging instruments:
Foreign currency forward exchange contracts	Accrued liabilities	$	10,514	$	3,664	$	12,432
Foreign currency forward exchange contracts	Other noncurrent liabilities		16		—		470
Total derivatives designated as hedging instruments		$	10,530	$	3,664	$	12,902
Derivatives not designated as hedging instruments
Foreign currency forward exchange contracts	Accrued liabilities	$	7,697	$	1,240	$	1,711
Total		$	18,227	$	4,904	$	14,613

Derivatives Designated as Hedging Instruments by Classification and Amount of Gains and Losses

The following tables present the classification and amount of gains and losses, net of tax, from derivatives reported in the consolidated statements of operations:

	For the Three Months Ended March 31, 2014					For the Three Months Ended March 31, 2013				Statements of Operations Classification
	Amount of Gain (Loss) Recognized in OCI		Amount of Gain (Loss) Reclassified from Accumulated OCI to Statements of Operations			Amount of Gain (Loss) Recognized in OCI		Amount of Gain (Loss) Reclassified from Accumulated OCI to Statements of Operations
	(In thousands)
Derivatives designated as hedging instruments
Foreign currency forward exchange contracts	$	1,228	$	(2,767	)	$	8,138	$	1,129	Cost of sales

Derivatives Not Designated as Hedging Instruments by Classification and Amount of Gains and Losses

	Amount of Gain (Loss) Recognized in the Statements of Operations					Statements of Operations Classification
	For the Three Months Ended March 31, 2014		For the Three Months Ended March 31, 2013
	(In thousands)
Derivatives not designated as hedging instruments
Foreign currency forward exchange contracts	$	7,553	$	(13,775	)	Non-operating income/expense
Foreign currency forward exchange contracts		1,771		403		Cost of sales
Total	$	9,324	$	(13,372	)

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Other Noncurrent Assets - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Jun. 30, 2013
Other Noncurrent Assets Disclosure [Line Items]
Carrying amount of nonamortizable identifiable intangible asset prior to impairment	$ 113
Remaining fair value of intangible asset	99
Impairment charge	$ 14

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Inventories (Detail) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2014	Dec. 31, 2013	Mar. 31, 2013
Inventory [Line Items]
Raw materials and work in process	$ 111,871	$ 89,863	$ 107,166
Finished goods	538,906	478,980	492,735
Inventories	$ 650,777	$ 568,843	$ 599,901

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Fair Value Measurements - Additional Information (Detail) (USD $)	Mar. 31, 2014	Dec. 31, 2013	Mar. 31, 2013
Financial Instruments [Line Items]
Estimated fair value of long-term debt, including the current portion	$ 1,660,000,000	$ 1,620,000,000	$ 1,770,000,000
Long-term debt	$ 1,600,000,000	$ 1,600,000,000	$ 1,650,000,000

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Accrued Liabilities (Detail) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2014	Dec. 31, 2013	Mar. 31, 2013
Schedule of Accrued Liabilities [Line Items]
Royalties	$ 42,681	$ 100,542	$ 37,903
Taxes other than income taxes	28,793	70,121	35,994
Advertising and promotion	12,029	76,453	26,060
Litigation accrual			137,800
Other	329,355	393,039	329,767
Total accrued liabilities	$ 412,858	$ 640,155	$ 567,524

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Currency Transaction Gains (Losses) (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Currency Transaction Gains (Losses) [Line Items]
Net transaction gains (losses)	$ 7,137	$ 11,012
Operating income
Currency Transaction Gains (Losses) [Line Items]
Net transaction gains (losses)	8,069	10,880
Other non-operating (expense) income, net
Currency Transaction Gains (Losses) [Line Items]
Net transaction gains (losses)	$ (932)	$ 132

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Segment Information (Tables)

3 Months Ended

Mar. 31, 2014

Segment Revenues and Segment Income

	For the Three Months Ended
	March 31, 2014			March 31, 2013
	(In thousands)
Revenues by Segment
North America	$	441,431		$	456,469
International		489,239			527,011
American Girl		110,558			104,950
Gross sales		1,041,228			1,088,430
Sales adjustments		(95,051	)		(92,824	)
Net sales	$	946,177		$	995,606
Segment Income
North America	$	48,723		$	68,127
International		31,480			61,995
American Girl		9,244			11,955
		89,447			142,077
Corporate and other expense (a)		(83,229	)		(76,246	)
Operating income		6,218			65,831
Interest expense		17,246			20,337
Interest (income)		(1,279	)		(1,400	)
Other non-operating (income) expense, net		(328	)		2,729
(Loss) Income before income taxes	$	(9,421	)	$	44,165

(a) Corporate and other expense includes severance and other termination-related costs of $21.5 million and $5.5 million for the three months ended March 31, 2014 and 2013, respectively, and share-based compensation expense of $12.7 million and $13.9 million for the three months ended March 31, 2014 and 2013, respectively.

Segment Assets

Segment assets are comprised of accounts receivable and inventories, net of applicable reserves and allowances.

	March 31, 2014		March 31, 2013		December 31, 2013
	(In thousands)
Assets by Segment
North America	$	463,905	$	475,702	$	723,886
International		734,024		683,083		920,770
American Girl		110,666		94,569		100,438
		1,308,595		1,253,354		1,745,094
Corporate and other		104,794		97,340		83,854
Accounts receivable and inventories, net	$	1,413,389	$	1,350,694	$	1,828,948

Worldwide Revenues by Brand Category

The table below presents worldwide revenues by brand category:

	For the Three Months Ended
	March 31, 2014			March 31, 2013
	(In thousands)
Worldwide Revenues by Brand Category
Mattel Girls & Boys Brands	$	656,861		$	692,170
Fisher-Price Brands		271,443			287,265
American Girl Brands		105,938			100,455
Other		6,986			8,540
Gross sales		1,041,228			1,088,430
Sales adjustments		(95,051	)		(92,824	)
Net sales	$	946,177		$	995,606

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Goodwill (Tables)

3 Months Ended

Mar. 31, 2014

Goodwill

The change in the carrying amount of goodwill by operating segment for the three months ended March 31, 2014 is shown below. Brand-specific goodwill held by foreign subsidiaries is allocated to the North America and American Girl operating segments selling those brands, thereby causing a foreign currency translation impact for these operating segments.

	December 31, 2013		Currency Exchange Rate Impact		March 31,    2014
	(In thousands)
North America	$	547,595	$	242	$	547,837
International		321,656		625		322,281
American Girl		213,988		12		214,000
Total goodwill	$	1,083,239	$	879	$	1,084,118

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Income Taxes - Additional Information (Detail) (USD $)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Income Taxes [Line Items]
Provision for income taxes	$ 1,797,000	$ 5,654,000
Net discrete tax (expense) benefits	(3,700,000)	4,000,000
Unrecognized tax benefits	44,000,000
Minimum
Income Taxes [Line Items]
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	40,000,000
Maximum
Income Taxes [Line Items]
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	$ 60,000,000

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Components of Net Periodic Benefit Cost (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Defined benefit pension plans
Defined Benefit Plan Disclosure [Line Items]
Service cost	$ 2,597	$ 3,899
Interest cost	6,941	6,630
Expected return on plan assets	(8,003)	(7,329)
Amortization of prior service credit	(264)	(126)
Recognized actuarial loss	3,587	5,106
Net periodic benefit cost	4,858	8,180
Postretirement benefit plans
Defined Benefit Plan Disclosure [Line Items]
Service cost	20	22
Interest cost	452	338
Recognized actuarial loss	75	40
Net periodic benefit cost	$ 547	$ 400

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Long-Term Debt (Detail) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2014	Dec. 31, 2013	Mar. 31, 2013
Debt Instrument [Line Items]
Long-term debt	$ 1,600,000	$ 1,600,000	$ 1,650,000
Less: current portion			(50,000)
Total long-term debt	1,600,000	1,600,000	1,600,000
Medium-term notes
Debt Instrument [Line Items]
Long-term debt			50,000
2010 Senior Notes
Debt Instrument [Line Items]
Long-term debt	500,000	500,000	500,000
2011 Senior Notes
Debt Instrument [Line Items]
Long-term debt	600,000	600,000	600,000
2013 Senior Notes
Debt Instrument [Line Items]
Long-term debt	$ 500,000	$ 500,000	$ 500,000

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Stock Option and Restricted Stock Unit Compensation Expense (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	$ 12,693	$ 13,862
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	2,560	2,609
Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	$ 10,133	$ 11,253

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Subsequent Event - Additional Information (Detail) (USD $)	3 Months Ended		1 Months Ended
	Mar. 31, 2014	Mar. 31, 2013	Apr. 17, 2014 Subsequent Event Dividend Declared
Subsequent Event [Line Items]
Dividends declared	$ 0.38	$ 0.36	$ 0.38
Dividend payable date			Jun. 13, 2014
Dividend payable, stockholders of record date			May 23, 2014
Dividend announcement date			Apr. 17, 2014

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Segment Revenues and Segment Income (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2014		Mar. 31, 2013
Segment Reporting Information [Line Items]
Gross sales	$ 1,041,228		$ 1,088,430
Sales adjustments	(95,051)		(92,824)
Net Sales	946,177		995,606
Operating income	6,218		65,831
Interest expense	17,246		20,337
Interest (income)	(1,279)		(1,400)
Other non-operating (income) expense, net	(328)		2,729
(Loss) Income before income taxes	(9,421)		44,165
Operating Segments
Segment Reporting Information [Line Items]
Gross sales	1,041,228		1,088,430
Operating income	89,447		142,077
Operating Segments | North America
Segment Reporting Information [Line Items]
Gross sales	441,431		456,469
Operating income	48,723		68,127
Operating Segments | International
Segment Reporting Information [Line Items]
Gross sales	489,239		527,011
Operating income	31,480		61,995
Operating Segments | American Girl
Segment Reporting Information [Line Items]
Gross sales	110,558		104,950
Operating income	9,244		11,955
Corporate and Other
Segment Reporting Information [Line Items]
Operating income	$ (83,229)	[1]	$ (76,246)	[1]

[1] Corporate and other expense includes severance and other termination-related costs of $21.5 million and $5.5 million for the three months ended March 31, 2014 and 2013, respectively, and share-based compensation expense of $12.7 million and $13.9 million for the three months ended March 31, 2014 and 2013, respectively.

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Other Selling and Administrative Expenses (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Component of Operating Other Cost and Expense [Line Items]
Design and development	$ 49,497	$ 47,973
Identifiable intangible asset amortization	$ 2,631	$ 2,803

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Earnings (Loss) Per Share (Detail) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended
	Mar. 31, 2014		Mar. 31, 2013
Basic:
Net (Loss) Income	$ (11,218)		$ 38,511
Less: net income allocable to participating RSUs		[1]	(401)	[1]
Net (loss) income available for basic common shares	(11,218)		38,110
Weighted average common shares outstanding	340,226		344,315
Basic net (loss) income per common share	$ (0.03)		$ 0.11
Diluted:
Net (Loss) Income	(11,218)		38,511
Less: net income allocable to participating RSUs		[1]	(412)	[1]
Net (loss) income available for diluted common shares	$ (11,218)		$ 38,099
Weighted average common shares outstanding	340,226		344,315
Weighted average common equivalent shares arising from:
Dilutive stock options and non-participating RSUs			4,480
Weighted average number of common and potential common shares	340,226		348,795
Diluted net (loss) income per common share	$ (0.03)		$ 0.11

[1] During the three months ended March 31, 2014, Mattel did not allocate its net loss to its participating RSUs as its participating RSUs are not obligated to share in the losses of the Company. During the three months ended March 31, 2013, Mattel allocated a proportionate share of both dividends and undistributed earnings to participating RSUs.

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Income Taxes

3 Months Ended

Mar. 31, 2014

Income Taxes

19. Income Taxes

Mattel’s provision for income taxes was $1.8 million and $5.7 million for the three months ended March 31, 2014 and 2013, respectively. During the three months ended March 31, 2014, Mattel recognized net discrete tax expense of $3.7 million primarily related to reassessments of prior years’ tax liabilities based on the status of audits and tax filings in various jurisdictions around the world, settlements, and enacted tax law changes. During the three months ended March 31, 2013, Mattel recognized net discrete tax benefits of $4.0 million primarily related to the signing of the American Taxpayer Relief Act on January 2, 2013, which extended the Research and Development tax credit retroactively for the 2012 tax year.

In the first quarter of 2014, Mattel adopted Accounting Standards Update (“ASU”) 2013-11, Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists, which generally requires an unrecognized tax benefit, or a portion of an unrecognized tax benefit, to be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward. However, to the extent a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date to settle any additional income taxes that would result from the disallowance of a tax position or the applicable tax law does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. Upon adoption of ASU 2013-11, Mattel reclassified unrecognized tax benefits of approximately $44 million, primarily recorded within other noncurrent liabilities, against its noncurrent deferred tax assets as of March 31, 2014. There was no impact on Mattel’s operating results.

In the normal course of business, Mattel is regularly audited by federal, state and foreign tax authorities. The IRS is currently auditing Mattel’s 2010 and 2011 federal income tax returns. Mattel expects that the completion of the audit will occur in the second quarter of 2014.

Based on the current status of federal, state and foreign audits, Mattel believes it is reasonably possible that in the next twelve months, the total unrecognized tax benefits could decrease by approximately $40 million to $60 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.

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Property, Plant, and Equipment - Additional Information (Detail)	3 Months Ended
	Mar. 31, 2014
Buildings | Minimum
Property, Plant and Equipment [Line Items]
Estimated useful lives, years	10 years
Buildings | Maximum
Property, Plant and Equipment [Line Items]
Estimated useful lives, years	30 years
Machinery and equipment | Minimum
Property, Plant and Equipment [Line Items]
Estimated useful lives, years	3 years
Machinery and equipment | Maximum
Property, Plant and Equipment [Line Items]
Estimated useful lives, years	10 years
Software | Minimum
Property, Plant and Equipment [Line Items]
Estimated useful lives, years	3 years
Software | Maximum
Property, Plant and Equipment [Line Items]
Estimated useful lives, years	7 years
Leasehold improvements | Minimum
Property, Plant and Equipment [Line Items]
Estimated useful lives, years	10 years
Leasehold improvements | Maximum
Property, Plant and Equipment [Line Items]
Estimated useful lives, years	20 years
Tools, dies, and molds
Property, Plant and Equipment [Line Items]
Estimated useful lives, years	3 years

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Employee Benefit Plans (Tables)

3 Months Ended

Mar. 31, 2014

Defined benefit pension plans

Components of Net Periodic Benefit Cost

A summary of the components of net periodic benefit cost for Mattel’s defined benefit pension plans is as follows:

	For the Three Months Ended
	March 31, 2014			March 31, 2013
	(In thousands)
Service cost	$	2,597		$	3,899
Interest cost		6,941			6,630
Expected return on plan assets		(8,003	)		(7,329	)
Amortization of prior service credit		(264	)		(126	)
Recognized actuarial loss		3,587			5,106
	$	4,858		$	8,180

Postretirement benefit plans

Components of Net Periodic Benefit Cost

A summary of the components of net periodic benefit cost for Mattel’s postretirement benefit plans is as follows:

	For the Three Months Ended
	March 31, 2014		March 31, 2013
	(In thousands)
Service cost	$	20	$	22
Interest cost		452		338
Recognized actuarial loss		75		40
	$	547	$	400

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Share-Based Payments - Additional Information (Detail) (USD $)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
General vesting period	3 years
Total unrecognized compensation cost related to unvested share-based payments	$ 74,300,000
Weighted average period for unrecognized compensation cost expected to be recognized (in years)	1 year 10 months 24 days
Cash received for stock option exercises	$ 5,138,000	$ 57,311,000
Stock Options | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock option expire from date of grant, period	10 years

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Other Noncurrent Liabilities (Tables)

3 Months Ended

Mar. 31, 2014

Other Noncurrent Liabilities

Other noncurrent liabilities include the following:

	March 31, 2014		March 31, 2013		December 31, 2013
	(In thousands)
Benefit plan liabilities	$	196,753	$	283,006	$	193,046
Noncurrent tax liabilities		143,191		213,917		186,055
Other		159,546		150,100		161,526
	$	499,490	$	647,023	$	540,627

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Other Noncurrent Assets (Detail) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2014	Dec. 31, 2013	Mar. 31, 2013
Other Noncurrent Assets Disclosure [Line Items]
Nonamortizable identifiable intangibles	$ 504,241	$ 504,241	$ 617,223
Deferred income taxes	364,605	373,638	411,298
Identifiable intangibles (net of amortization of $69.5 million, $68.3 million, and $67.7 million, respectively)	173,853	176,579	85,983
Other	267,816	264,603	246,250
Total other noncurrent assets	$ 1,310,515	$ 1,319,061	$ 1,360,754

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Derivatives Not Designated as Hedging Instruments by Classification and Amount of Gains and Losses (Detail) (Not Designated As Hedging Instrument, Foreign Exchange Forward, USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Derivative Instruments, Gain (Loss) [Line Items]
Net gain (loss) recognized in the statements of operations for derivatives not designated as hedging instruments	$ 9,324	$ (13,372)
Non-Operating Income Expense Classification
Derivative Instruments, Gain (Loss) [Line Items]
Net gain (loss) recognized in the statements of operations for derivatives not designated as hedging instruments	7,553	(13,775)
Cost of Sales Classification
Derivative Instruments, Gain (Loss) [Line Items]
Net gain (loss) recognized in the statements of operations for derivatives not designated as hedging instruments	$ 1,771	$ 403

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Changes in Accumulated Balances for Each Component of Other Comprehensive Income (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated Other Comprehensive Income (Loss), Net of Tax, as of Beginning Period	$ (443,676)	$ (464,486)
Other comprehensive income before reclassifications	5,008	(18,930)
Amounts reclassified from accumulated other comprehensive income (loss)	4,947	1,991
Other Comprehensive Income (Loss), Net of Tax	9,955	(16,939)
Accumulated Other Comprehensive Income (Loss), Net of Tax, as of End Period	(433,721)	(481,425)
Derivative Instruments
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated Other Comprehensive Income (Loss), Net of Tax, as of Beginning Period	(10,789)	(2,583)
Other comprehensive income before reclassifications	1,228	8,138
Amounts reclassified from accumulated other comprehensive income (loss)	2,767	(1,129)
Other Comprehensive Income (Loss), Net of Tax	3,995	7,009
Accumulated Other Comprehensive Income (Loss), Net of Tax, as of End Period	(6,794)	4,426
Defined Benefit Pension Plans
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated Other Comprehensive Income (Loss), Net of Tax, as of Beginning Period	(131,946)	(190,656)
Other comprehensive income before reclassifications	(92)	311
Amounts reclassified from accumulated other comprehensive income (loss)	2,180	3,120
Other Comprehensive Income (Loss), Net of Tax	2,088	3,431
Accumulated Other Comprehensive Income (Loss), Net of Tax, as of End Period	(129,858)	(187,225)
Currency Translation Adjustments
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated Other Comprehensive Income (Loss), Net of Tax, as of Beginning Period	(300,941)	(271,247)
Other comprehensive income before reclassifications	3,872	(27,379)
Other Comprehensive Income (Loss), Net of Tax	3,872	(27,379)
Accumulated Other Comprehensive Income (Loss), Net of Tax, as of End Period	$ (297,069)	$ (298,626)

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Accounts Receivable - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	Mar. 31, 2014	Dec. 31, 2013	Mar. 31, 2013
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts receivable, allowances for doubtful accounts	$ 19.5	$ 20.4	$ 35.4

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Inventories

3 Months Ended

Mar. 31, 2014

Inventories

3. Inventories

Inventories include the following:

	March 31, 2014		March 31, 2013		December 31, 2013
	(In thousands)
Raw materials and work in process	$	111,871	$	107,166	$	89,863
Finished goods		538,906		492,735		478,980
	$	650,777	$	599,901	$	568,843

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Classification and Amount of Reclassifications from Accumulated Other Comprehensive Income to Consolidated Statement of Operations (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2014		Mar. 31, 2013
Accumulated Other Comprehensive Income (Loss) [Line Items]
Cost of sales	$ (464,646)		$ (455,555)
(Loss) Income Before Income Taxes	(9,421)		44,165
Provision for income taxes	(1,797)		(5,654)
Net (Loss) Income	(11,218)		38,511
Reclassification Out of Accumulated Other Comprehensive Income | Derivative Instruments
Accumulated Other Comprehensive Income (Loss) [Line Items]
Provision for income taxes	(49)		(2)
Net (Loss) Income	(2,767)		1,129
Reclassification Out of Accumulated Other Comprehensive Income | Derivative Instruments | Foreign Currency Forward Exchange Contracts
Accumulated Other Comprehensive Income (Loss) [Line Items]
Cost of sales	(2,718)		1,131
Reclassification Out of Accumulated Other Comprehensive Income | Defined Benefit Pension Plans
Accumulated Other Comprehensive Income (Loss) [Line Items]
Amortization of prior service credit	264	[1]	126	[1]
Recognized actuarial loss	(3,662)	[1]	(5,146)	[1]
(Loss) Income Before Income Taxes	(3,398)		(5,020)
Provision for income taxes	1,218		1,900
Net (Loss) Income	$ (2,180)		$ (3,120)

[1] The amortization of prior service credit and recognized actuarial loss are included in the computation of net periodic benefit cost. Refer to "Note 15 to the Consolidated Financial Statements-Employee Benefit Plans" of this Quarterly Report on Form 10-Q for additional information regarding Mattel's net periodic benefit cost.

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Share-Based Payments (Tables)

3 Months Ended

Mar. 31, 2014

Stock Option and Restricted Stock Unit Compensation Expense

Compensation expense, included within other selling and administrative expenses in the consolidated statement of operations, related to stock options and RSUs is as follows:

	For the Three Months Ended
	March 31, 2014		March 31, 2013
	(In thousands)
Stock option compensation expense	$	2,560	$	2,609
RSU compensation expense		10,133		11,253
	$	12,693	$	13,862

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Subsequent Event

3 Months Ended

Mar. 31, 2014

Subsequent Event

23. Subsequent Event

On April 17, 2014, Mattel announced that its Board of Directors declared a second quarter dividend of $0.38 per common share. The dividend is payable on June 13, 2014 to stockholders of record on May 23, 2014.

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Acquisition

3 Months Ended

Mar. 31, 2014

Acquisition

22. Acquisition

On February 28, 2014, Mattel announced a definitive agreement for its acquisition, through a wholly-owned subsidiary, of MEGA Brands, Inc. (“MEGA Brands”), a Canadian corporation. The acquisition of MEGA Brands will build upon Mattel’s portfolio of brands by expanding into the construction building sets and arts and crafts categories. The agreement provides for the acquisition of MEGA Brands for approximately $460 million, including net debt to be assumed or repaid by Mattel, or C$17.75 per common share. The acquisition will include all of the outstanding common shares and warrants of MEGA Brands. Consummation of the acquisition is subject to customary closing conditions. The acquisition is expected to close in the second quarter of 2014.

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Seasonal Financing - Additional Information (Detail) (USD $) In Billions, unless otherwise specified	3 Months Ended
	Mar. 31, 2014
2013 Credit Facility
Debt Instrument [Line Items]
Terms of credit facility	The agreement governing the credit facility was amended and restated on March 11, 2013 to, among other things, (i) extend the maturity date of the credit facility to March 12, 2018, (ii) increase aggregate commitments under the credit facility to $1.60 billion, with an “accordion feature,” which allows Mattel to increase the aggregate availability under the credit facility to $1.85 billion under certain circumstances, (iii) decrease the applicable interest rate margins to a range of 0.00% to 0.75% above the applicable base rate for base rate loans and 0.88% to 1.75% above the applicable LIBOR for Eurodollar rate loans, in each case depending on Mattel’s senior unsecured long-term debt rating, and (iv) decrease commitment fees to a range of 0.08% to 0.28% of the unused commitments under the credit facility.
Maturity date	Mar. 12, 2018
Aggregate commitment under the credit facility	$ 1.60
Aggregate commitment under the credit facility, including the accordion feature	1.85
2013 Credit Facility | Minimum
Debt Instrument [Line Items]
Interest rate margin for base rate loans	0.00%
Interest rate margin for Eurodollar rate loans	0.88%
Commitment fee rate for unused commitments	0.08%
2013 Credit Facility | Maximum
Debt Instrument [Line Items]
Interest rate margin for base rate loans	0.75%
Interest rate margin for Eurodollar rate loans	1.75%
Commitment fee rate for unused commitments	0.28%
2011 Credit Facility
Debt Instrument [Line Items]
Aggregate commitment under the credit facility	$ 1.40

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Other Selling and Administrative Expenses (Tables)

3 Months Ended

Mar. 31, 2014

Other Selling and Administrative Expenses

Other selling and administrative expenses include the following:

	For the Three Months Ended
	March 31, 2014		March 31, 2013
	(In thousands)
Design and development	$	49,497	$	47,973
Identifiable intangible asset amortization		2,631		2,803

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Accounting Policies (Policies)

3 Months Ended

Mar. 31, 2014

Property, Plant, and Equipment Policy

Property, plant, and equipment are stated at cost less accumulated depreciation and amortization. Depreciation is computed using the straight-line method over estimated useful lives of 10 to 30 years for buildings, 3 to 10 years for machinery and equipment, 3 to 7 years for software, and 10 to 20 years, not to exceed the lease term, for leasehold improvements. Tools, dies, and molds are depreciated using the straight-line method over 3 years. Estimated useful lives are periodically reviewed and, where appropriate, changes are made prospectively. The carrying value of property, plant, and equipment is reviewed when events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. Any potential impairment identified is assessed by evaluating the operating performance and future undiscounted cash flows of the underlying assets. When property is sold or retired, the cost of the property and the related accumulated depreciation are removed from the consolidated balance sheet, and any resulting gain or loss is included in the results of operations.

Goodwill Policy

Mattel tests its goodwill for impairment annually in the third quarter and whenever events or changes in circumstances indicate that the carrying value of a reporting unit may exceed its fair value.

Intangible Assets, Indefinite-Lived, Policy

Mattel tests nonamortizable intangible assets, including trademarks and trade names, for impairment annually in the third quarter and whenever events or changes in circumstances indicate that the carrying values may exceed the fair values.

Intangible Assets, Finite-Lived, Policy

Mattel also tests its amortizable intangible assets for impairment whenever events or changes in circumstances indicate that the carrying value of the asset may not be recoverable.

Debt Policy

The proportion of unamortized debt issuance costs from the prior facility renewal related to creditors involved in both the prior facility and amended facility and borrowing costs incurred as a result of the amendment were deferred and will be amortized over the term of the amended facility.

Foreign Currency Translations Policy

Mattel’s reporting currency is the US dollar. The translation of its net investments in subsidiaries with non-US dollar functional currencies subjects Mattel to the impact of currency exchange rate fluctuations in its results of operations and financial position. Assets and liabilities of subsidiaries with non-US dollar functional currencies are translated into US dollars at fiscal period-end exchange rates. Income, expense, and cash flow items are translated at weighted average exchange rates prevailing during the fiscal period. The resulting currency translation adjustments are recorded as a component of accumulated other comprehensive income (loss) within stockholders’ equity.

Derivatives Policy

Mattel uses foreign currency forward exchange contracts as cash flow hedges primarily to hedge its purchases and sales of inventory denominated in foreign currencies. These contracts generally have maturity dates of up to 18 months. These derivative instruments have been designated as effective cash flow hedges, whereby the unsettled hedges are reported in Mattel’s consolidated balance sheets at fair value, with changes in the fair value of the hedges reflected in other comprehensive income (“OCI”). Realized gains and losses for these contracts are recorded in the consolidated statements of operations in the period in which the inventory is sold to customers. Additionally, Mattel uses foreign currency forward exchange contracts to hedge intercompany loans and advances denominated in foreign currencies. Due to the short-term nature of the contracts involved, Mattel 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.

Earnings Per Share Policy

Unvested share-based payment awards that contain nonforfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are participating securities and are included in the computation of earnings per share pursuant to the two-class method. Certain of Mattel’s restricted stock units (“RSUs”) are considered participating securities because they contain nonforfeitable rights to dividend equivalents.

Under the two-class method, net income is reduced by the amount of dividends declared in the period for each class of common stock and participating securities. The remaining undistributed earnings are then allocated to common stock and participating securities as if all of the net income for the period had been distributed. Basic earnings per common share excludes dilution and is calculated by dividing net income allocable to common shares by the weighted average number of common shares outstanding for the period. Diluted earnings per common share is calculated by dividing net income allocable to common shares by the weighted average number of common shares for the period, as adjusted for the potential dilutive effect of non-participating share-based awards.

Foreign Currency Transaction Gains and Losses Policy

Currency exchange rate fluctuations may impact Mattel’s results of operations and cash flows. Mattel’s currency transaction exposures include gains and losses realized on unhedged inventory purchases and unhedged receivables and payables balances that are denominated in a currency other than the applicable functional currency. Gains and losses on unhedged inventory purchases and other transactions associated with operating activities are recorded in the components of operating income to which they relate in the consolidated statements of operations. For hedges of intercompany loans and advances, which do not qualify for hedge accounting treatment, the gains or losses on the hedges resulting from changes in fair value as well as the offsetting transaction gains or losses on the related hedged items, along with unhedged items, are recognized in other non-operating income (expense), net in the consolidated statements of operations.

Segment Reporting Policy

Mattel does not include sales adjustments such as trade discounts and other allowances in the calculation of segment revenues (referred to as “gross sales” and reconciled to net sales in Part I, Item 2 “Non-GAAP Financial Measure” of this Quarterly Report on Form 10-Q). Mattel records these adjustments in its financial accounting systems at the time of sale to each customer, but the adjustments are not allocated to individual products. For this reason, Mattel’s chief operating decision maker uses gross sales by segment as one of the metrics to measure segment performance. Such sales adjustments are included in the determination of segment income from operations based on the adjustments recorded in the financial accounting systems. Segment income represents each segment’s operating income, while consolidated operating income represents income from operations before net interest, other non-operating income (expense), and income taxes as reported in the consolidated statements of operations. The corporate and other expense category includes costs not allocated to individual segments, including charges related to incentive compensation, share-based payments, and corporate headquarters functions managed on a worldwide basis, and the impact of changes in foreign currency rates on intercompany transactions.

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Inventories (Tables)

3 Months Ended

Mar. 31, 2014

Inventories

Inventories include the following:

	March 31, 2014		March 31, 2013		December 31, 2013
	(In thousands)
Raw materials and work in process	$	111,871	$	107,166	$	89,863
Finished goods		538,906		492,735		478,980
	$	650,777	$	599,901	$	568,843

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Accounts Receivable

3 Months Ended

Mar. 31, 2014

Accounts Receivable

2. Accounts Receivable

Accounts receivable are net of allowances for doubtful accounts of $19.5 million, $35.4 million, and $20.4 million as of March 31, 2014, March 31, 2013, and December 31, 2013, respectively.

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Property, Plant, and Equipment (Tables)

3 Months Ended

Mar. 31, 2014

Property, Plant, and Equipment

Property, plant, and equipment, net includes the following:

	March 31, 2014			March 31, 2013			December 31, 2013
	(In thousands)
Land	$	27,682		$	26,733		$	27,555
Buildings		270,951			273,479			269,874
Machinery and equipment		680,901			682,866			673,546
Software		310,264			263,484			301,284
Tools, dies, and molds		728,931			692,215			713,749
Capital leases		23,271			23,271			23,271
Leasehold improvements		229,967			211,038			230,271
		2,271,967			2,173,086			2,239,550
Less: accumulated depreciation		(1,613,210	)		(1,568,032	)		(1,580,217	)
	$	658,757		$	605,054		$	659,333

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Segment Assets (Detail) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2014	Dec. 31, 2013	Mar. 31, 2013
Segment Reporting, Asset Reconciling Item [Line Items]
Accounts receivable and inventories, net	$ 1,413,389	$ 1,828,948	$ 1,350,694
Operating Segments
Segment Reporting, Asset Reconciling Item [Line Items]
Accounts receivable and inventories, net	1,308,595	1,745,094	1,253,354
Operating Segments | North America
Segment Reporting, Asset Reconciling Item [Line Items]
Accounts receivable and inventories, net	463,905	723,886	475,702
Operating Segments | International
Segment Reporting, Asset Reconciling Item [Line Items]
Accounts receivable and inventories, net	734,024	920,770	683,083
Operating Segments | American Girl
Segment Reporting, Asset Reconciling Item [Line Items]
Accounts receivable and inventories, net	110,666	100,438	94,569
Corporate and Other
Segment Reporting, Asset Reconciling Item [Line Items]
Accounts receivable and inventories, net	$ 104,794	$ 83,854	$ 97,340

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Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2014

Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis

Mattel’s financial assets and liabilities measured and reported at fair value on a recurring basis include the following:

	March 31, 2014
	Level 1		Level 2		Level 3		Total
	(In thousands)
Assets:
Foreign currency forward exchange contracts (a)	$	—	$	6,710	$	—	$	6,710
Auction rate security (b)		—		—		29,988		29,988
Total assets	$	—	$	6,710	$	29,988	$	36,698
Liabilities:
Foreign currency forward exchange contracts (a)	$	—	$	18,227	$	—	$	18,227
	March 31, 2013
	Level 1		Level 2		Level 3		Total
	(In thousands)
Assets:
Foreign currency forward exchange contracts (a)	$	—	$	10,868	$	—	$	10,868
Auction rate security (b)		—		—		21,504		21,504
Total assets	$	—	$	10,868	$	21,504	$	32,372
Liabilities:
Foreign currency forward exchange contracts (a)	$	—	$	4,904	$	—	$	4,904
	December 31, 2013
	Level 1		Level 2		Level 3		Total
	(In thousands)
Assets:
Foreign currency forward exchange contracts (a)	$	—	$	2,310	$	—	$	2,310
Auction rate security (b)		—		—		28,895		28,895
Total assets	$	—	$	2,310	$	28,895	$	31,205
Liabilities:
Foreign currency forward exchange contracts (a)	$	—	$	14,613	$	—	$	14,613

(a) The fair value of the foreign currency forward exchange contracts is based on dealer quotes of market forward rates and reflects the amount that Mattel would receive or pay at their maturity dates for contracts involving the same notional amounts, currencies, and maturity dates.

(b) The fair value of the auction rate security is estimated using a discounted cash flow model based on (i) estimated interest rates, timing, and amount of cash flows, (ii) credit spreads, recovery rates, and credit quality of the underlying securities, (iii) illiquidity considerations, and (iv) market correlation.

Reconciliation of Fair Value of Assets Measured Using Level 3 Inputs

The following table presents information about Mattel’s auction rate security measured and reported at fair value on a recurring basis using significant Level 3 inputs:

	Level 3
	(In thousands)
Balance at December 31, 2013	$	28,895
Unrealized gain		1,093
Balance at March 31, 2014	$	29,988

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Other Noncurrent Assets (Parenthetical) (Detail) (USD $) In Millions, unless otherwise specified	Mar. 31, 2014	Dec. 31, 2013	Mar. 31, 2013
Other Noncurrent Assets Disclosure [Line Items]
Accumulated amortization of identifiable intangibles	$ 69.5	$ 68.3	$ 67.7

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Earnings Per Share - Additional Information (Detail) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Nonqualified stock options and non-participating RSUs excluded from the calculation of diluted net income per common share	3.8	0.1

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Consolidated Balance Sheets (USD $) In Thousands, unless otherwise specified	Mar. 31, 2014	Dec. 31, 2013	Mar. 31, 2013
Current Assets
Cash and equivalents	$ 897,254	$ 1,039,216	$ 1,259,512
Accounts receivable, net	762,612	1,260,105	750,793
Inventories	650,777	568,843	599,901
Prepaid expenses and other current assets	507,936	509,829	545,312
Total current assets	2,818,579	3,377,993	3,155,518
Noncurrent Assets
Property, plant, and equipment, net	658,757	659,333	605,054
Goodwill	1,084,118	1,083,239	1,072,345
Other noncurrent assets	1,310,515	1,319,061	1,360,754
Total Assets	5,871,969	6,439,626	6,193,671
Current Liabilities
Short-term borrowings		4,278	4,996
Current portion of long-term debt			50,000
Accounts payable	248,183	375,328	257,926
Accrued liabilities	412,858	640,155	567,524
Income taxes payable	13,901	27,679	18,014
Total current liabilities	674,942	1,047,440	898,460
Noncurrent Liabilities
Long-term debt	1,600,000	1,600,000	1,600,000
Other noncurrent liabilities	499,490	540,627	647,023
Total noncurrent liabilities	2,099,490	2,140,627	2,247,023
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	1,761,035	1,784,445	1,752,662
Treasury stock at cost; 101.7 million shares, 102.1 million shares, and 96.2 million shares, respectively	(2,447,091)	(2,448,701)	(2,092,226)
Retained earnings	3,775,945	3,918,122	3,427,808
Accumulated other comprehensive loss	(433,721)	(443,676)	(481,425)
Total stockholders' equity	3,097,537	3,251,559	3,048,188
Total Liabilities and Stockholders' Equity	$ 5,871,969	$ 6,439,626	$ 6,193,671

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Foreign Currency Transaction Gains and Losses (Tables)

3 Months Ended

Mar. 31, 2014

Currency Transaction Gains (Losses)

Currency transaction gains (losses) included in the consolidated statements of operations are as follows:

	For the Three Months Ended
	March 31, 2014			March 31, 2013
	(In thousands)
Operating income	$	8,069		$	10,880
Other non-operating (expense) income, net		(932	)		132
Net transaction gains	$	7,137		$	11,012

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Consolidated Statements of Cash Flows (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Cash Flows From Operating Activities:
Net (Loss) Income	$ (11,218)	$ 38,511
Adjustments to reconcile net (loss) income to net cash flows provided by (used for) operating activities:
Depreciation	48,006	41,822
Amortization	3,508	4,410
Deferred income taxes	24,220	(16,350)
Tax benefits from share-based payment arrangements	(14,243)	(21,759)
Share-based compensation	12,693	13,862
Increase (decrease) from changes in assets and liabilities:
Accounts receivable	494,496	472,404
Inventories	(82,203)	(140,840)
Prepaid expenses and other current assets	4,346	(9,458)
Accounts payable, accrued liabilities, and income taxes payable	(409,648)	(442,654)
Other, net	(9,379)	(2,395)
Net cash flows provided by (used for) operating activities	60,578	(62,447)
Cash Flows From Investing Activities:
Purchases of tools, dies, and molds	(30,262)	(29,178)
Purchases of other property, plant, and equipment	(13,570)	(23,936)
Proceeds (payments) from foreign currency forward exchange contracts	13,985	(12,619)
Other, net	201	133
Net cash flows used for investing activities	(29,646)	(65,600)
Cash Flows From Financing Activities:
Payments of short-term borrowings, net	(4,278)	(9,844)
Proceeds from short-term borrowings, net		4,996
Payments of credit facility renewal costs		(4,015)
Payments of long-term borrowings		(350,000)
Proceeds from long-term borrowings, net		495,260
Share repurchases	(27,688)	(32,240)
Payments of dividends on common stock	(129,327)	(124,077)
Proceeds from exercise of stock options	5,138	57,311
Tax benefits from share-based payment arrangements	14,243	21,759
Other, net	(26,954)	(1,890)
Net cash flows (used for) provided by financing activities	(168,866)	57,260
Effect of Currency Exchange Rate Changes on Cash	(4,028)	(5,412)
Decrease in Cash and Equivalents	(141,962)	(76,199)
Cash and Equivalents at Beginning of Period	1,039,216	1,335,711
Cash and Equivalents at End of Period	$ 897,254	$ 1,259,512

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Long Term Debt - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	1 Months Ended
	Nov. 30, 2013
Debt Instrument [Line Items]
Repayment of Medium-term notes	$ 50.0

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Accrued Liabilities (Tables)

3 Months Ended

Mar. 31, 2014

Accrued Liabilities

Accrued liabilities include the following:

	March 31, 2014		March 31, 2013		December 31, 2013
	(In thousands)
Royalties	$	42,681	$	37,903	$	100,542
Taxes other than income taxes		28,793		35,994		70,121
Advertising and promotion		12,029		26,060		76,453
Litigation accrual		—		137,800		—
Other		329,355		329,767		393,039
	$	412,858	$	567,524	$	640,155

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Derivative Assets and Liabilities (Detail) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2014	Dec. 31, 2013	Mar. 31, 2013
Derivatives, Fair Value [Line Items]
Derivative asset, fair value	$ 6,710	$ 2,310	$ 10,868
Derivative liability, fair value	18,227	14,613	4,904
Designated As Hedging Instrument
Derivatives, Fair Value [Line Items]
Derivative asset, fair value	3,490	415	10,868
Derivative liability, fair value	10,530	12,902	3,664
Designated As Hedging Instrument | Foreign Exchange Forward | Prepaid expenses and other current assets
Derivatives, Fair Value [Line Items]
Derivative asset, fair value	3,183	415	10,868
Designated As Hedging Instrument | Foreign Exchange Forward | Other noncurrent assets
Derivatives, Fair Value [Line Items]
Derivative asset, fair value	307
Designated As Hedging Instrument | Foreign Exchange Forward | Accrued liabilities
Derivatives, Fair Value [Line Items]
Derivative liability, fair value	10,514	12,432	3,664
Designated As Hedging Instrument | Foreign Exchange Forward | Other noncurrent liabilities
Derivatives, Fair Value [Line Items]
Derivative liability, fair value	16	470
Not Designated As Hedging Instrument | Foreign Exchange Forward | Prepaid expenses and other current assets
Derivatives, Fair Value [Line Items]
Derivative asset, fair value	3,220	1,895
Not Designated As Hedging Instrument | Foreign Exchange Forward | Accrued liabilities
Derivatives, Fair Value [Line Items]
Derivative liability, fair value	$ 7,697	$ 1,711	$ 1,240

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Share-Based Payments

3 Months Ended

Mar. 31, 2014

Share-Based Payments

16. Share-Based Payments

Mattel has various stock compensation plans, which are more fully described in “Note 7 to the Consolidated Financial Statements–Share-Based Payments” in its 2013 Annual Report on Form 10-K. Under the Mattel, Inc. 2010 Equity and Long-Term Compensation Plan, Mattel has the ability to grant nonqualified stock options, incentive stock options, stock appreciation rights, restricted stock, RSUs, performance awards, dividend equivalent rights, and shares of common stock to officers, employees, and other persons providing services to Mattel. Stock options are granted with exercise prices at the fair market value of Mattel’s common stock on the applicable grant date and expire no later than ten years from the date of grant. Both stock options and time-vesting RSUs generally provide for vesting over a period of three years from the date of grant.

Compensation expense, included within other selling and administrative expenses in the consolidated statement of operations, related to stock options and RSUs is as follows:

	For the Three Months Ended
	March 31, 2014		March 31, 2013
	(In thousands)
Stock option compensation expense	$	2,560	$	2,609
RSU compensation expense		10,133		11,253
	$	12,693	$	13,862

As of March 31, 2014, total unrecognized compensation cost related to unvested share-based payments totaled $74.3 million and is expected to be recognized over a weighted-average period of 1.9 years.

Mattel uses treasury shares purchased under its share repurchase program to satisfy stock option exercises and the vesting of RSUs. Cash received for stock option exercises for the three months ended March 31, 2014 and 2013 was $5.1 million and $57.3 million, respectively.

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Long-Term Debt (Tables)

3 Months Ended

Mar. 31, 2014

Long-Term Debt

Long-term debt includes the following:

	March 31, 2014		March 31, 2013			December 31, 2013
	(In thousands)
Medium-term notes	$	—	$	50,000		$	—
2010 Senior Notes due October 2020 and October 2040		500,000		500,000			500,000
2011 Senior Notes due November 2016 and November 2041		600,000		600,000			600,000
2013 Senior Notes due March 2018 and March 2023		500,000		500,000			500,000
		1,600,000		1,650,000			1,600,000
Less: current portion		—		(50,000	)		—
Total long-term debt	$	1,600,000	$	1,600,000		$	1,600,000

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Foreign Currency Transaction Gains and Losses

3 Months Ended

Mar. 31, 2014

Foreign Currency Transaction Gains and Losses

18. Foreign Currency Transaction Gains and Losses

Currency exchange rate fluctuations may impact Mattel’s results of operations and cash flows. Mattel’s currency transaction exposures include gains and losses realized on unhedged inventory purchases and unhedged receivables and payables balances that are denominated in a currency other than the applicable functional currency. Gains and losses on unhedged inventory purchases and other transactions associated with operating activities are recorded in the components of operating income to which they relate in the consolidated statements of operations. For hedges of intercompany loans and advances, which do not qualify for hedge accounting treatment, the gains or losses on the hedges resulting from changes in fair value as well as the offsetting transaction gains or losses on the related hedged items, along with unhedged items, are recognized in other non-operating income (expense), net in the consolidated statements of operations. Inventory purchase and sale transactions denominated in the Euro, British pound sterling, Mexican peso, Brazilian real, and Indonesian rupiah are the primary transactions that cause foreign currency transaction exposure for Mattel.

Currency transaction gains (losses) included in the consolidated statements of operations are as follows:

	For the Three Months Ended
	March 31, 2014			March 31, 2013
	(In thousands)
Operating income	$	8,069		$	10,880
Other non-operating (expense) income, net		(932	)		132
Net transaction gains	$	7,137		$	11,012

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Financial Assets and Liabilities Measured and Reported at Fair Value on Recurring Basis (Detail) (Fair Value, Measurements, Recurring, USD $) In Thousands, unless otherwise specified	Mar. 31, 2014		Dec. 31, 2013		Mar. 31, 2013
Assets:
Foreign currency forward exchange contracts	$ 6,710	[1]	$ 2,310	[1]	$ 10,868	[1]
Auction rate security	29,988	[2]	28,895	[2]	21,504	[2]
Total assets	36,698		31,205		32,372
Liabilities:
Foreign currency forward exchange contracts	18,227	[1]	14,613	[1]	4,904	[1]
Level 2
Assets:
Foreign currency forward exchange contracts	6,710	[1]	2,310	[1]	10,868	[1]
Total assets	6,710		2,310		10,868
Liabilities:
Foreign currency forward exchange contracts	18,227	[1]	14,613	[1]	4,904	[1]
Level 3
Assets:
Auction rate security	29,988	[2]	28,895	[2]	21,504	[2]
Total assets	$ 29,988		$ 28,895		$ 21,504

[1] The fair value of the foreign currency forward exchange contracts is based on dealer quotes of market forward rates and reflects the amount that Mattel would receive or pay at their maturity dates for contracts involving the same notional amounts, currencies, and maturity dates.

[2] The fair value of the auction rate security is estimated using a discounted cash flow model based on (i) estimated interest rates, timing, and amount of cash flows, (ii) credit spreads, recovery rates, and credit quality of the underlying securities, (iii) illiquidity considerations, and (iv) market correlation.

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Basis of Presentation

3 Months Ended

Mar. 31, 2014

Basis of Presentation

1. 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 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 presentation of the financial position and interim results of Mattel, Inc. and its subsidiaries (“Mattel”) as of and for the periods presented have been included. As Mattel’s business is seasonal, results for interim periods are not necessarily indicative of those that may be expected for a full year.

The year-end balance sheet data was derived from audited financial statements; however, the accompanying interim notes to the consolidated financial statements do not include all disclosures required by accounting principles generally accepted in the United States of America.

The financial information included herein should be read in conjunction with Mattel’s consolidated financial statements and related notes in its 2013 Annual Report on Form 10-K.

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Consolidated Balance Sheets (Parenthetical) (USD $) In Millions, except Per Share data, unless otherwise specified	Mar. 31, 2014	Dec. 31, 2013	Mar. 31, 2013
Common stock, par value	$ 1.00	$ 1.00	$ 1.00
Common stock, shares authorized	1,000	1,000	1,000
Common stock, shares issued	441.4	441.4	441.4
Treasury stock, shares	101.7	102.1	96.2

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Accumulated Other Comprehensive Income (Loss)

3 Months Ended

Mar. 31, 2014

Accumulated Other Comprehensive Income (Loss)

11. Accumulated Other Comprehensive Income (Loss)

The following tables present changes in the accumulated balances for each component of other comprehensive income, including current period other comprehensive income and reclassifications out of accumulated other comprehensive income (loss):

	For the Three Months Ended March 31, 2014
	Derivative Instruments			Defined Benefit Pension Plans			Currency Translation Adjustments			Total
	(In thousands)
Accumulated Other Comprehensive Income (Loss), Net of Tax, as of December 31, 2013	$	(10,789	)	$	(131,946	)	$	(300,941	)	$	(443,676	)
Other comprehensive income before reclassifications		1,228			(92	)		3,872			5,008
Amounts reclassified from accumulated other comprehensive income (loss)		2,767			2,180			—			4,947
Net increase in other comprehensive income		3,995			2,088			3,872			9,955
Accumulated Other Comprehensive Income (Loss), Net of Tax, as of March 31, 2014	$	(6,794	)	$	(129,858	)	$	(297,069	)	$	(433,721	)
	For the Three Months Ended March 31, 2013
	Derivative Instruments			Defined Benefit Pension Plans			Currency Translation Adjustments			Total
	(In thousands)
Accumulated Other Comprehensive Income (Loss), Net of Tax, as of December 31, 2012	$	(2,583	)	$	(190,656	)	$	(271,247	)	$	(464,486	)
Other comprehensive income before reclassifications		8,138			311			(27,379	)		(18,930	)
Amounts reclassified from accumulated other comprehensive income (loss)		(1,129	)		3,120			—			1,991
Net increase (decrease) in other comprehensive income		7,009			3,431			(27,379	)		(16,939	)
Accumulated Other Comprehensive Income (Loss), Net of Tax, as of March 31, 2013	$	4,426		$	(187,225	)	$	(298,626	)	$	(481,425	)

The following table presents the classification and amount of the reclassifications from accumulated other comprehensive income (loss) to the consolidated statement of operations:

	For the Three Months Ended March 31, 2014			For the Three Months Ended March 31, 2013			Statements of Operations Classification
	(In thousands)
Derivative Instruments
(Loss) gain on foreign currency forward exchange contracts	$	(2,718	)	$	1,131		Cost of sales
		(49	)		(2	)	Provision for income taxes
	$	(2,767	)	$	1,129		Net (loss) income
Defined Benefit Pension Plans
Amortization of prior service credit	$	264		$	126		(a)
Recognized actuarial loss		(3,662	)		(5,146	)	(a)
		(3,398	)		(5,020	)
		1,218			1,900		Provision for income taxes
	$	(2,180	)	$	(3,120	)	Net (loss) 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” of this Quarterly Report on Form 10-Q for additional information regarding Mattel’s net periodic benefit cost.

Currency Translation Adjustments

Mattel’s reporting currency is the US dollar. The translation of its net investments in subsidiaries with non-US dollar functional currencies subjects Mattel to the impact of currency exchange rate fluctuations in its results of operations and financial position. Assets and liabilities of subsidiaries with non-US dollar functional currencies are translated into US dollars at fiscal period-end exchange rates. Income, expense, and cash flow items are translated at weighted average exchange rates prevailing during the fiscal period. The resulting currency translation adjustments are recorded as a component of accumulated other comprehensive income (loss) within stockholders’ equity. Currency translation adjustments resulted in a net gain of $3.9 million for the three months ended March 31, 2014, primarily due to the strengthening of the Brazilian real, Australian dollar, and Indonesian rupiah against the US dollar, partially offset by the weakening of the Argentine peso. Currency translation adjustments resulted in a net loss of $27.4 million for the three months ended March 31, 2013, primarily due to the weakening of the Euro and British pound sterling against the US dollar, partially offset by the strengthening of the Mexican peso and Brazilian real.

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Document and Entity Information	3 Months Ended
	Mar. 31, 2014	Apr. 18, 2014
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2014
Document Fiscal Year Focus	2014
Document Fiscal Period Focus	Q1
Trading Symbol	MAT
Entity Registrant Name	MATTEL INC /DE/
Entity Central Index Key	0000063276
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		339,251,876

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Derivative Instruments

3 Months Ended

Mar. 31, 2014

Derivative Instruments

12. Derivative Instruments

Mattel seeks to mitigate its exposure to foreign currency transaction risk by monitoring its foreign currency transaction exposure for the year and partially hedging such exposure using foreign currency forward exchange contracts. Mattel uses foreign currency forward exchange contracts as cash flow hedges primarily to hedge its purchases and sales of inventory denominated in foreign currencies. These contracts generally have maturity dates of up to 18 months. These derivative instruments have been designated as effective cash flow hedges, whereby the unsettled hedges are reported in Mattel’s consolidated balance sheets at fair value, with changes in the fair value of the hedges reflected in other comprehensive income (“OCI”). Realized gains and losses for these contracts are recorded in the consolidated statements of operations in the period in which the inventory is sold to customers. Additionally, Mattel uses foreign currency forward exchange contracts to hedge intercompany loans and advances denominated in foreign currencies. Due to the short-term nature of the contracts involved, Mattel 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. As of March 31, 2014, March 31, 2013, and December 31, 2013, Mattel held foreign currency forward exchange contracts with notional amounts of approximately $1.86 billion, $1.55 billion, and $1.55 billion, respectively.

The following table presents Mattel’s derivative assets and liabilities:

	Asset Derivatives
	Balance Sheet Classification	Fair Value
		March 31, 2014		March 31, 2013		December 31, 2013
				(In thousands)
Derivatives designated as hedging instruments:
Foreign currency forward exchange contracts	Prepaid expenses and other current assets	$	3,183	$	10,868	$	415
Foreign currency forward exchange contracts	Other noncurrent assets		307		—		—
Total derivatives designated as hedging instruments		$	3,490	$	10,868	$	415
Derivatives not designated as hedging instruments:
Foreign currency forward exchange contracts	Prepaid expenses and other current assets	$	3,220	$	—	$	1,895
Total		$	6,710	$	10,868	$	2,310
	Liability Derivatives
	Balance Sheet Classification	Fair Value
		March 31, 2014		March 31, 2013		December 31, 2013
				(In thousands)
Derivatives designated as hedging instruments:
Foreign currency forward exchange contracts	Accrued liabilities	$	10,514	$	3,664	$	12,432
Foreign currency forward exchange contracts	Other noncurrent liabilities		16		—		470
Total derivatives designated as hedging instruments		$	10,530	$	3,664	$	12,902
Derivatives not designated as hedging instruments
Foreign currency forward exchange contracts	Accrued liabilities	$	7,697	$	1,240	$	1,711
Total		$	18,227	$	4,904	$	14,613

The following tables present the classification and amount of gains and losses, net of tax, from derivatives reported in the consolidated statements of operations:

	For the Three Months Ended March 31, 2014					For the Three Months Ended March 31, 2013				Statements of Operations  Classification
	Amount of Gain (Loss) Recognized in OCI		Amount of Gain (Loss) Reclassified from Accumulated OCI to Statements of Operations			Amount of Gain (Loss) Recognized in OCI		Amount of Gain (Loss) Reclassified from Accumulated OCI to Statements of Operations
	(In thousands)
Derivatives designated as hedging instruments
Foreign currency forward exchange contracts	$	1,228	$	(2,767	)	$	8,138	$	1,129	Cost of sales

The net loss of $2.8 million and net gain of $1.1 million reclassified from accumulated other comprehensive loss to the consolidated statements of operations for the three months ended March 31, 2014 and 2013, respectively, are offset by the changes in cash flows associated with the underlying hedged transactions.

	Amount of Gain (Loss) Recognized in the Statements of Operations					Statements of Operations Classification
	For the Three Months Ended March 31, 2014		For the Three Months Ended March 31, 2013
	(In thousands)
Derivatives not designated as hedging instruments
Foreign currency forward exchange contracts	$	7,553	$	(13,775	)	Non-operating income/expense
Foreign currency forward exchange contracts		1,771		403		Cost of sales
Total	$	9,324	$	(13,372	)

The net gain of $9.3 million and net loss of $13.4 million recognized in the consolidated statements of operations for the three months ended March 31, 2014 and 2013, respectively, are offset by foreign currency transaction gains and losses on the related hedged balances.

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Contingencies - Additional Information (Detail) (USD $)		1 Months Ended								1 Months Ended				3 Months Ended
	Mar. 31, 2013	Dec. 21, 2013 MGA	Dec. 23, 2013 MGA	Jan. 24, 2013 MGA	Aug. 31, 2011 MGA	Aug. 11, 2011 MGA	Apr. 30, 2011 MGA LegalMatter	Apr. 27, 2009 MGA	Jul. 17, 2008 MGA	Jan. 23, 2014 MGA Minimum	Jul. 26, 2013 Yellowstone	Jan. 31, 2010 Yellowstone	Apr. 30, 1999 Yellowstone	Mar. 31, 2014 Yellowstone
Commitments and Contingencies Disclosure [Line Items]
Historical jury verdict								$ 100,000,000	$ 100,000,000
Claimed trade secrets							26
Other claimed trade secrets							88
Compensatory damages awarded by jury							88,500,000
Reduced compensatory damages awarded by court					85,000,000
Punitive damages awarded					85,000,000
Attorney fees and costs awarded					140,000,000
Compensatory damages, punitive damages, and attorney fees and costs awarded by court					310,000,000
Damages for alleged trade secret misappropriation appealed						170,000,000
Attorney fees and costs appealed						140,000,000
Amount of damages and attorney's fees and costs vacated by the appeals court				172,500,000
Approximate amount of judgment finalized in the District Court, including interest		138,000,000
Payment of Judgment			138,000,000
Litigation accrual	137,800,000			138,000,000
Alleged trade secrets damages claimed										1,000,000,000
Alleged loss of profits													1,000,000
Unpaid accounts receivable														4,000,000
Alleged business investments														3,000,000
Initial court appointed expert estimated loss of profits														1,000,000
Court awarded damages from counterclaim												4,000,000
Damages awarded by Appeals Court including inflation and interest											20,000,000
Counterclaim Awarded By Appeals Court											8,000,000
Reasonably possible range of loss, minimum														0
Reasonably possible range of loss, maximum														$ 20,000,000

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Consolidated Statements of Operations (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Net Sales	$ 946,177	$ 995,606
Cost of sales	464,646	455,555
Gross Profit	481,531	540,051
Advertising and promotion expenses	90,834	104,540
Other selling and administrative expenses	384,479	369,680
Operating Income	6,218	65,831
Interest expense	17,246	20,337
Interest (income)	(1,279)	(1,400)
Other non-operating (income) expense, net	(328)	2,729
(Loss) Income Before Income Taxes	(9,421)	44,165
Provision for income taxes	1,797	5,654
Net (Loss) Income	$ (11,218)	$ 38,511
Net (Loss) Income Per Common Share-Basic	$ (0.03)	$ 0.11
Weighted average number of common shares	340,226	344,315
Net (Loss) Income Per Common Share-Diluted	$ (0.03)	$ 0.11
Weighted average number of common and potential common shares	340,226	348,795
Dividends Declared Per Common Share	$ 0.38	$ 0.36

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Other Noncurrent Assets

3 Months Ended

Mar. 31, 2014

Other Noncurrent Assets

6. Other Noncurrent Assets Other noncurrent assets include the following:
		March 31,    2014		March 31,    2013		December 31, 2013
		(In thousands)
	Nonamortizable identifiable intangibles	$	504,241	$	617,223	$	504,241
	Deferred income taxes		364,605		411,298		373,638
	Identifiable intangibles (net of amortization of $69.5 million, $67.7 million, and $68.3 million, respectively)		173,853		85,983		176,579
	Other		267,816		246,250		264,603
		$	1,310,515	$	1,360,754	$	1,319,061

Mattel tests nonamortizable intangible assets, including trademarks and trade names, for impairment annually in the third quarter and whenever events or changes in circumstances indicate that the carrying values may exceed the fair values. Mattel also tests its amortizable intangible assets for impairment whenever events or changes in circumstances indicate that the carrying value of the asset may not be recoverable.

During the second quarter of 2013, Mattel changed its brand strategy for Polly Pocket^®, which includes a more focused allocation of resources to support the Polly Pocket brand in specific markets, resulting in a reduction of the forecasted future cash flows of the brand. As a result of the change, Mattel tested the Polly Pocket trade name for impairment. The Polly Pocket trade name, which had a carrying value of approximately $113 million, was previously determined to be a nonamortizable intangible asset. Its fair value was determined to be approximately $99 million based on a discounted cash flow analysis using the multi-period excess earnings method. Level 3 inputs, including forecasted future cash flows, an estimated useful life, and a discount rate, were used in the valuation. As the fair value of the asset was below the carrying value, Mattel recorded an impairment charge of approximately $14 million, which was reflected within other selling and administrative expenses in the consolidated statement of operations for the North America and International operating segments during the second quarter of 2013.

In conjunction with the Polly Pocket trade name impairment test, Mattel reassessed the intangible asset’s nonamortizable classification and determined that the nonamortizable classification could no longer be supported. During the second quarter of 2013, the Polly Pocket trade name was reclassified as an amortizable intangible asset, and the remaining fair value of the asset is being amortized over its estimated remaining useful life.

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Goodwill

3 Months Ended

Mar. 31, 2014

Goodwill

5. Goodwill

Goodwill is allocated to various reporting units, which are at the operating segment level, for purposes of evaluating whether goodwill is impaired. Mattel’s reporting units are: (i) North America, (ii) International, and (iii) American Girl. Mattel tests its goodwill for impairment annually in the third quarter and whenever events or changes in circumstances indicate that the carrying value of a reporting unit may exceed its fair value.

The change in the carrying amount of goodwill by operating segment for the three months ended March 31, 2014 is shown below. Brand-specific goodwill held by foreign subsidiaries is allocated to the North America and American Girl operating segments selling those brands, thereby causing a foreign currency translation impact for these operating segments.

	December 31, 2013		Currency Exchange Rate Impact		March 31,    2014
	(In thousands)
North America	$	547,595	$	242	$	547,837
International		321,656		625		322,281
American Girl		213,988		12		214,000
Total goodwill	$	1,083,239	$	879	$	1,084,118

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Other Selling and Administrative Expenses

3 Months Ended

Mar. 31, 2014

Other Selling and Administrative Expenses

17. Other Selling and Administrative Expenses

Other selling and administrative expenses include the following:

	For the Three Months Ended
	March 31, 2014		March 31, 2013
	(In thousands)
Design and development	$	49,497	$	47,973
Identifiable intangible asset amortization		2,631		2,803

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Fair Value Measurements

3 Months Ended

Mar. 31, 2014

Fair Value Measurements

13. Fair Value Measurements

The following table presents information about Mattel’s assets and liabilities measured and reported in the financial statements at fair value and indicates the fair value hierarchy of the valuation techniques utilized to determine such fair value. The three levels of the fair value hierarchy are as follows:

• Level 1 – Valuations based on unadjusted quoted prices in active markets for identical assets or liabilities that the entity has the ability to access.

• Level 2 – Valuations based on quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable data for substantially the full term of the assets or liabilities.

• Level 3 – Valuations based on inputs that are unobservable, supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

Mattel’s financial assets and liabilities measured and reported at fair value on a recurring basis include the following:

	March 31, 2014
	Level 1		Level 2		Level 3		Total
	(In thousands)
Assets:
Foreign currency forward exchange contracts (a)	$	—	$	6,710	$	—	$	6,710
Auction rate security (b)		—		—		29,988		29,988
Total assets	$	—	$	6,710	$	29,988	$	36,698
Liabilities:
Foreign currency forward exchange contracts (a)	$	—	$	18,227	$	—	$	18,227
	March 31, 2013
	Level 1		Level 2		Level 3		Total
	(In thousands)
Assets:
Foreign currency forward exchange contracts (a)	$	—	$	10,868	$	—	$	10,868
Auction rate security (b)		—		—		21,504		21,504
Total assets	$	—	$	10,868	$	21,504	$	32,372
Liabilities:
Foreign currency forward exchange contracts (a)	$	—	$	4,904	$	—	$	4,904
	December 31, 2013
	Level 1		Level 2		Level 3		Total
	(In thousands)
Assets:
Foreign currency forward exchange contracts (a)	$	—	$	2,310	$	—	$	2,310
Auction rate security (b)		—		—		28,895		28,895
Total assets	$	—	$	2,310	$	28,895	$	31,205
Liabilities:
Foreign currency forward exchange contracts (a)	$	—	$	14,613	$	—	$	14,613

(a) The fair value of the foreign currency forward exchange contracts is based on dealer quotes of market forward rates and reflects the amount that Mattel would receive or pay at their maturity dates for contracts involving the same notional amounts, currencies, and maturity dates.

(b) The fair value of the auction rate security is estimated using a discounted cash flow model based on (i) estimated interest rates, timing, and amount of cash flows, (ii) credit spreads, recovery rates, and credit quality of the underlying securities, (iii) illiquidity considerations, and (iv) market correlation.

The following table presents information about Mattel’s auction rate security measured and reported at fair value on a recurring basis using significant Level 3 inputs:

	Level 3
	(In thousands)
Balance at December 31, 2013	$	28,895
Unrealized gain		1,093
Balance at March 31, 2014	$	29,988

Other Financial Instruments

Mattel’s financial instruments include cash and equivalents, accounts receivable and payable, short-term borrowings, and accrued liabilities. The fair values of these instruments approximate their carrying values because of their short-term nature and are classified as Level 2 within the fair value hierarchy.

The estimated fair value of Mattel’s long-term debt, including the current portion, was $1.66 billion (compared to a carrying value of $1.60 billion) as of March 31, 2014, $1.77 billion (compared to a carrying value of $1.65 billion) as of March 31, 2013, and $1.62 billion (compared to a carrying value of $1.60 billion) as of December 31, 2013. The estimated fair values have been calculated based on broker quotes or rates for the same or similar instruments and are classified as Level 2 within the fair value hierarchy.

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Worldwide Revenues by Brand Category (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Segment Reporting, Revenue Reconciling Item [Line Items]
Gross sales	$ 1,041,228	$ 1,088,430
Sales adjustments	(95,051)	(92,824)
Net Sales	946,177	995,606
Mattel Girls And Boys Brands
Segment Reporting, Revenue Reconciling Item [Line Items]
Gross sales	656,861	692,170
Fisher-Price Brands
Segment Reporting, Revenue Reconciling Item [Line Items]
Gross sales	271,443	287,265
American Girl Brands
Segment Reporting, Revenue Reconciling Item [Line Items]
Gross sales	105,938	100,455
Other
Segment Reporting, Revenue Reconciling Item [Line Items]
Gross sales	$ 6,986	$ 8,540

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Long-Term Debt

3 Months Ended

Mar. 31, 2014

Long-Term Debt

9. Long-Term Debt

Long-term debt includes the following:

	March 31, 2014		March 31, 2013			December 31, 2013
	(In thousands)
Medium-term notes	$	—	$	50,000		$	—
2010 Senior Notes due October 2020 and October 2040		500,000		500,000			500,000
2011 Senior Notes due November 2016 and November 2041		600,000		600,000			600,000
2013 Senior Notes due March 2018 and March 2023		500,000		500,000			500,000
		1,600,000		1,650,000			1,600,000
Less: current portion		—		(50,000	)		—
Total long-term debt	$	1,600,000	$	1,600,000		$	1,600,000

During November 2013, Mattel repaid $50.0 million of its Medium-term notes in connection with their scheduled maturities.

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Other Noncurrent Liabilities (Detail) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2014	Dec. 31, 2013	Mar. 31, 2013
Other Liabilities [Line Items]
Benefit plan liabilities	$ 196,753	$ 193,046	$ 283,006
Noncurrent tax liabilities	143,191	186,055	213,917
Other	159,546	161,526	150,100
Total other noncurrent liabilities	$ 499,490	$ 540,627	$ 647,023

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Accrued Liabilities

3 Months Ended

Mar. 31, 2014

Accrued Liabilities

7. Accrued Liabilities

Accrued liabilities include the following:

	March 31, 2014		March 31, 2013		December 31, 2013
	(In thousands)
Royalties	$	42,681	$	37,903	$	100,542
Taxes other than income taxes		28,793		35,994		70,121
Advertising and promotion		12,029		26,060		76,453
Litigation accrual		—		137,800		—
Other		329,355		329,767		393,039
	$	412,858	$	567,524	$	640,155

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Seasonal Financing

3 Months Ended

Mar. 31, 2014

Seasonal Financing

8. Seasonal Financing

Mattel maintains and periodically amends or replaces its domestic unsecured committed revolving credit facility with a commercial bank group. The facility is used as a back-up to Mattel’s commercial paper program, which is used as the primary source of financing for the seasonal working capital requirements of its domestic subsidiaries. The agreement governing the credit facility was amended and restated on March 11, 2013 to, among other things, (i) extend the maturity date of the credit facility to March 12, 2018, (ii) increase aggregate commitments under the credit facility to $1.60 billion, with an “accordion feature,” which allows Mattel to increase the aggregate availability under the credit facility to $1.85 billion under certain circumstances, (iii) decrease the applicable interest rate margins to a range of 0.00% to 0.75% above the applicable base rate for base rate loans and 0.88% to 1.75% above the applicable LIBOR for Eurodollar rate loans, in each case depending on Mattel’s senior unsecured long-term debt rating, and (iv) decrease commitment fees to a range of 0.08% to 0.28% of the unused commitments under the credit facility.

The amended credit facility has a borrowing capacity of up to $1.60 billion over a term of five years. Prior to the amendment, the facility permitted Mattel to borrow up to $1.40 billion and had two years remaining to maturity. The proportion of unamortized debt issuance costs from the prior facility renewal related to creditors involved in both the prior facility and amended facility and borrowing costs incurred as a result of the amendment were deferred and will be amortized over the term of the amended facility.

Mattel is required to meet financial ratio covenants at the end of each quarter and fiscal year, using the formulae specified in the credit agreement to calculate the ratios. Mattel was in compliance with such covenants at March 31, 2014.

The credit agreement is a material agreement and failure to comply with the financial ratio covenants may result in an event of default under the terms of the credit facility. If Mattel were to default under the terms of the credit facility, its ability to meet its seasonal financing requirements could be adversely affected.

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Other Noncurrent Liabilities

3 Months Ended

Mar. 31, 2014

Other Noncurrent Liabilities

10. Other Noncurrent Liabilities

Other noncurrent liabilities include the following:

	March 31, 2014		March 31, 2013		December 31, 2013
	(In thousands)
Benefit plan liabilities	$	196,753	$	283,006	$	193,046
Noncurrent tax liabilities		143,191		213,917		186,055
Other		159,546		150,100		161,526
	$	499,490	$	647,023	$	540,627

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Derivative Instruments - Additional Information (Detail) (USD $)				3 Months Ended
	Mar. 31, 2014 Foreign Exchange Forward	Dec. 31, 2013 Foreign Exchange Forward	Mar. 31, 2013 Foreign Exchange Forward	Mar. 31, 2014 Foreign Exchange Forward Designated As Hedging Instrument	Mar. 31, 2013 Foreign Exchange Forward Designated As Hedging Instrument	Mar. 31, 2014 Foreign Exchange Forward Not Designated As Hedging Instrument	Mar. 31, 2013 Foreign Exchange Forward Not Designated As Hedging Instrument	Mar. 31, 2014 Maximum
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Maximum term for foreign currency forward exchange contracts								18 months
Notional amount of foreign currency forward exchange contracts	$ 1,860,000,000	$ 1,550,000,000	$ 1,550,000,000
Net (loss) gain reclassified from accumulated other comprehensive loss to the consolidated statements of operations for derivatives designated as hedging instruments				(2,767,000)	1,129,000
Net gain (loss) recognized in the consolidated statements of operations for derivatives not designated as hedging instruments						$ 9,324,000	$ (13,372,000)

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Acquisition - Additional Information (Detail) (MEGA Brands) In Millions, except Per Share data, unless otherwise specified	1 Months Ended
	Feb. 28, 2014 USD ($)	Feb. 28, 2014 CAD
Business Acquisition [Line Items]
Expected purchase price	$ 460
Business acquisition, price per share		17.75

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Derivatives Designated as Hedging Instruments by Classification and Amount of Gains and Losses (Detail) (Designated As Hedging Instrument, Foreign Exchange Forward, USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Designated As Hedging Instrument | Foreign Exchange Forward
Derivative Instruments, Gain (Loss) [Line Items]
Amount of gain (loss) recognized in OCI	$ 1,228	$ 8,138
Amount of gain (loss) reclassified from accumulated OCI to statements of operations	$ (2,767)	$ 1,129

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Accumulated Other Comprehensive Income (Loss) - Additional Information (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Comprehensive Income (Loss) [Line Items]
Currency translation adjustments	$ 3,872	$ (27,379)

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Other Noncurrent Assets (Tables)

3 Months Ended

Mar. 31, 2014

Other Noncurrent Assets

Other noncurrent assets include the following:

	March 31, 2014		March 31, 2013		December 31, 2013
	(In thousands)
Nonamortizable identifiable intangibles	$	504,241	$	617,223	$	504,241
Deferred income taxes		364,605		411,298		373,638
Identifiable intangibles (net of amortization of $69.5 million, $67.7 million, and $68.3 million, respectively)		173,853		85,983		176,579
Other		267,816		246,250		264,603
	$	1,310,515	$	1,360,754	$	1,319,061

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Goodwill (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Goodwill [Line Items]
Goodwill, beginning balance	$ 1,083,239	$ 1,072,345
Currency Exchange Rate Impact	879
Goodwill, ending balance	1,084,118	1,072,345
North America
Goodwill [Line Items]
Goodwill, beginning balance	547,595
Currency Exchange Rate Impact	242
Goodwill, ending balance	547,837
International
Goodwill [Line Items]
Goodwill, beginning balance	321,656
Currency Exchange Rate Impact	625
Goodwill, ending balance	322,281
American Girl
Goodwill [Line Items]
Goodwill, beginning balance	213,988
Currency Exchange Rate Impact	12
Goodwill, ending balance	$ 214,000

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Employee Benefit Plans

3 Months Ended

Mar. 31, 2014

Employee Benefit Plans

15. Employee Benefit Plans

Mattel and certain of its subsidiaries have qualified and nonqualified retirement plans covering substantially all employees of these companies, which are more fully described in “Note 4 to the Consolidated Financial Statements–Employee Benefit Plans” in its 2013 Annual Report on Form 10-K.

A summary of the components of net periodic benefit cost for Mattel’s defined benefit pension plans is as follows:

	For the Three Months Ended
	March 31, 2014			March 31, 2013
	(In thousands)
Service cost	$	2,597		$	3,899
Interest cost		6,941			6,630
Expected return on plan assets		(8,003	)		(7,329	)
Amortization of prior service credit		(264	)		(126	)
Recognized actuarial loss		3,587			5,106
	$	4,858		$	8,180

A summary of the components of net periodic benefit cost for Mattel’s postretirement benefit plans is as follows:

	For the Three Months Ended
	March 31, 2014		March 31, 2013
	(In thousands)
Service cost	$	20	$	22
Interest cost		452		338
Recognized actuarial loss		75		40
	$	547	$	400

During the three months ended March 31, 2014, Mattel made cash contributions totaling approximately $1 million and $1 million to its defined benefit pension and postretirement benefit plans, respectively.

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Contingencies

3 Months Ended

Mar. 31, 2014

Contingencies

20. Contingencies

Litigation Related to Carter Bryant and MGA Entertainment, Inc.

In April 2004, Mattel filed a lawsuit in Los Angeles County Superior Court against Carter Bryant (“Bryant”), a former Mattel design employee. The suit alleges that Bryant aided and assisted a Mattel competitor, MGA Entertainment, Inc. (“MGA”), during the time he was employed by Mattel, in violation of his contractual and other duties to Mattel. In September 2004, Bryant asserted counterclaims against Mattel, including counterclaims in which Bryant sought, as a putative class action representative, to invalidate Mattel’s Confidential Information and Proprietary Inventions Agreements with its employees. Bryant also removed Mattel’s suit to the United States District Court for the Central District of California. In December 2004, MGA intervened as a party-defendant in Mattel’s action against Bryant, asserting that its rights to Bratz properties are at stake in the litigation.

Separately, in November 2004, Bryant filed an action against Mattel in the United States District Court for the Central District of California. The action sought a judicial declaration that Bryant’s purported conveyance of rights in Bratz was proper and that he did not misappropriate Mattel property in creating Bratz.

In April 2005, MGA filed suit against Mattel in the United States District Court for the Central District of California. MGA’s action alleges claims of trade dress infringement, trade dress dilution, false designation of origin, unfair competition, and unjust enrichment. The suit alleges, among other things, that certain products, themes, packaging, and/or television commercials in various Mattel product lines have infringed upon products, themes, packaging, and/or television commercials for various MGA product lines, including Bratz. The complaint also asserts that various alleged Mattel acts with respect to unidentified retailers, distributors, and licensees have damaged MGA and that various alleged acts by industry organizations, purportedly induced by Mattel, have damaged MGA. MGA’s suit alleges that MGA has been damaged in an amount “believed to reach or exceed tens of millions of dollars” and further seeks punitive damages, disgorgement of Mattel’s profits and injunctive relief.

In June 2006, the three cases were consolidated in the United States District Court for the Central District of California. On July 17, 2006, the Court issued an order dismissing all claims that Bryant had asserted against Mattel, including Bryant’s purported counterclaims to invalidate Mattel’s Confidential Information and Proprietary Inventions Agreements with its employees, and Bryant’s claims for declaratory relief.

In November 2006, Mattel asked the Court for leave to file an Amended Complaint that included not only additional claims against Bryant, but also included claims for copyright infringement, Racketeer Influenced and Corrupt Organizations (“RICO”) violations, misappropriation of trade secrets, intentional interference with contract, aiding and abetting breach of fiduciary duty and breach of duty of loyalty, and unfair competition, among others, against MGA, its Chief Executive Officer Isaac Larian, certain MGA affiliates and an MGA employee. The RICO claim alleged that MGA stole Bratz and then, by recruiting and hiring key Mattel employees and directing them to bring with them Mattel confidential and proprietary information, unfairly competed against Mattel using Mattel’s trade secrets, confidential information, and key employees to build their business. On January 12, 2007, the Court granted Mattel leave to file these claims as counterclaims in the consolidated cases, which Mattel did that same day.

Mattel sought to try all of its claims in a single trial, but in February 2007, the Court decided that the consolidated cases would be tried in two phases, with the first trial to determine claims and defenses related to Mattel’s ownership of Bratz works and whether MGA infringed those works. On May 19, 2008, Bryant reached a settlement agreement with Mattel and is no longer a defendant in the litigation. In the public stipulation entered by Mattel and Bryant in connection with the resolution, Bryant agreed that he was and would continue to be bound by all prior and future Court Orders relating to Bratz ownership and infringement, including the Court’s summary judgment rulings.

The first phase of the first trial, which began on May 27, 2008, resulted in a unanimous jury verdict on July 17, 2008 in favor of Mattel. The jury found that almost all of the Bratz design drawings and other works in question were created by Bryant while he was employed at Mattel; that MGA and Isaac Larian intentionally interfered with the contractual duties owed by Bryant to Mattel, aided and abetted Bryant’s breaches of his duty of loyalty to Mattel, aided and abetted Bryant’s breaches of the fiduciary duties he owed to Mattel, and converted Mattel property for their own use. The same jury determined that defendants MGA, Larian, and MGA Entertainment (HK) Limited infringed Mattel’s copyrights in the Bratz design drawings and other Bratz works, and awarded Mattel total damages of approximately $100 million against the defendants. On December 3, 2008, the Court issued a series of orders rejecting MGA’s equitable defenses and granting Mattel’s motions for equitable relief, including an order enjoining the MGA party defendants from manufacturing, marketing, or selling certain Bratz fashion dolls or from using the “Bratz” name. The Court stayed the effect of the December 3, 2008 injunctive orders until further order of the Court and entered a further specified stay of the injunctive orders on January 7, 2009.

The parties filed and argued additional motions for post-trial relief, including a request by MGA to enter judgment as a matter of law on Mattel’s claims in MGA’s favor and to reduce the jury’s damages award to Mattel. Mattel additionally moved for the appointment of a receiver. On April 27, 2009, the Court entered an order confirming that Bratz works found by the jury to have been created by Bryant during his Mattel employment were Mattel’s property and that hundreds of Bratz female fashion dolls infringe Mattel’s copyrights. The Court also upheld the jury’s award of damages in the amount of $100 million and ordered an accounting of post-trial Bratz sales. The Court further vacated the stay of the December 3, 2008 orders, except to the extent specified by the Court’s January 7, 2009 modification.

MGA appealed the Court’s equitable orders to the Court of Appeals for the Ninth Circuit. On December 9, 2009, the Ninth Circuit heard oral argument on MGA’s appeal and issued an order staying the District Court’s equitable orders pending a further order to be issued by the Ninth Circuit. The Ninth Circuit opinion vacating the relief ordered by the District Court was issued on July 22, 2010. The Ninth Circuit stated that, because of several jury instruction errors it identified, a significant portion—if not all—of the jury verdict and damage award should be vacated.

In its opinion, the Ninth Circuit found that the District Court erred in concluding that Mattel’s Invention Agreement unambiguously applied to “ideas;” that it should have considered extrinsic evidence in determining the application of the agreement; and if the conclusion turns on conflicting evidence, it should have been up to the jury to decide. The Ninth Circuit also concluded that the District Judge erred in transferring the entire brand to Mattel based on misappropriated names and that the Court should have submitted to the jury, rather than deciding itself, whether Bryant’s agreement assigned works created outside the scope of his employment and whether Bryant’s creation of the Bratz designs and sculpt was outside of his employment. The Court then went on to address copyright issues which would be raised after a retrial, since Mattel “might well convince a properly instructed jury” that it owns Bryant’s designs and sculpt. The Ninth Circuit stated that the sculpt itself was entitled only to “thin” copyright protection against virtually identical works, while the Bratz sketches were entitled to “broad” protection against substantially similar works; in applying the broad protection, however, the Ninth Circuit found that the lower court had erred in failing to filter out all of the unprotectable elements of Bryant’s sketches. This mistake, the Court said, caused the lower court to conclude that all Bratz dolls were substantially similar to Bryant’s original sketches.

Judge Stephen Larson, who presided over the first trial, retired from the bench during the course of the appeal, and the case was transferred to Judge David O. Carter. After the transfer, Judge Carter granted Mattel leave to file a Fourth Amended Answer and Counterclaims which focused on RICO, trade secret and other claims, and added additional parties, and subsequently granted in part and denied in part a defense motion to dismiss those counterclaims.

Later, on August 16, 2010, MGA asserted several new claims against Mattel in response to Mattel’s Fourth Amended Answer and Counterclaims, including claims for alleged trade secret misappropriation, an alleged violation of RICO, and wrongful injunction. Mattel moved to strike and/or dismiss these claims, as well as certain MGA allegations regarding Mattel’s motives for filing suit. The Court granted that motion as to the wrongful injunction claim, which it dismissed with prejudice, and as to the allegations about Mattel’s motives, which it struck. The Court denied the motion as to MGA’s trade secret misappropriation claim and its claim for violations of RICO.

The Court resolved summary judgment motions in late 2010. Among other rulings, the Court dismissed both parties’ RICO claims; dismissed Mattel’s claim for breach of fiduciary duty and portions of other claims as “preempted” by the trade secrets act; dismissed MGA’s trade dress infringement claims; dismissed MGA’s unjust enrichment claim; dismissed MGA’s common law unfair competition claim; and dismissed portions of Mattel’s copyright infringement claim as to “later generation” Bratz dolls.

Trial of all remaining claims began in early January 2011. During the trial, and before the case was submitted to the jury, the Court granted MGA’s motions for judgment as to Mattel’s claims for aiding and abetting breach of duty of loyalty and conversion. The Court also granted a defense motion for judgment on portions of Mattel’s claim for misappropriation of trade secrets relating to thefts by former Mattel employees located in Mexico.

The jury reached verdicts on the remaining claims in April 2011. In those verdicts, the jury ruled against Mattel on its claims for ownership of Bratz-related works, for copyright infringement, and for misappropriation of trade secrets. The jury ruled for MGA on its claim of trade secret misappropriation as to 26 of its claimed trade secrets and awarded $88.5 million in damages. The jury ruled against MGA as to 88 of its claimed trade secrets. The jury found that Mattel’s misappropriation was willful and malicious.

In early August 2011, the Court ruled on post-trial motions. The Court rejected MGA’s unfair competition claims and also rejected Mattel’s equitable defenses to MGA’s misappropriation of trade secrets claim. The Court reduced the jury’s damages award of $88.5 million to $85.0 million. The Court awarded MGA an additional $85.0 million in punitive damages and approximately $140 million in attorney’s fees and costs. The Court entered a judgment which totaled approximately $310 million in favor of MGA.

On August 11, 2011, Mattel appealed the judgment, challenging on appeal the entirety of the District Court’s monetary award in favor of MGA, including both the award of $170 million in damages for alleged trade secret misappropriation and approximately $140 million in attorney’s fees and costs. On January 24, 2013, the Ninth Circuit Court of Appeals issued a ruling on Mattel’s appeal. In that ruling, the Court found that MGA’s claim for trade secrets misappropriation was not compulsory to any Mattel claim and could not be filed as a counterclaim-in-reply. Accordingly, the Court of Appeals vacated the portion of the judgment awarding damages and attorney’s fees and costs to MGA for prevailing on its trade secrets misappropriation claim, totaling approximately $172.5 million. It ruled that, on remand, the District Court must dismiss MGA’s trade secret claim without prejudice. In its ruling, the Court of Appeals also affirmed the District Court’s award of attorney’s fees and costs under the Copyright Act. Accordingly, Mattel recorded a litigation accrual of approximately $138 million during the fourth quarter of 2012 to cover these fees and costs.

Because multiple claimants asserted rights to the attorney’s fees portion of the judgment, on February 13, 2013, Mattel filed a motion in the district court for orders permitting Mattel to interplead the proceeds of the judgment and releasing Mattel from liability to any claimant based on Mattel’s payment of the judgment.

On February 27, 2013, MGA filed a motion for leave to amend its prior complaint in the existing federal court lawsuit so that it could reassert its trade-secrets claim. Mattel opposed that motion. On December 17, 2013, the district court denied MGA’s motion for leave to amend and entered an order dismissing MGA’s trade-secrets claim without prejudice. Also on December 17, 2013, following a settlement between MGA and certain insurance carriers, the district court denied Mattel’s motion for leave to interplead the proceeds of the judgment.

On December 21, 2013, a stipulation regarding settlement with insurers and payment of judgment was filed in the district court, which provided that (i) Mattel would pay approximately $138 million, including accrued interest, in full satisfaction of the copyright fees judgment, (ii) all parties would consent to entry of an order exonerating and discharging the appeal bond posted by Mattel, and (iii) MGA’s insurers would dismiss all pending actions related to the proceeds of the copyright fees judgment, including an appeal by Evanston Insurance Company in an action against Mattel that was pending in the Ninth Circuit. On December 23, 2013, Mattel paid the copyright fees judgment in the total sum, including interest, of approximately $138 million. On December 26, 2013, the court entered an order exonerating and discharging the appeal bond posted by Mattel, and on December 27, 2013, MGA filed an acknowledgment of satisfaction of judgment. On December 30, 2013, Evanston Insurance Company’s appeal in its action against Mattel was dismissed.

On January 13, 2014, MGA filed a new, but virtually identical, trade-secrets claim against Mattel in Los Angeles County Superior Court. Mattel was served with the complaint on January 23, 2014. In its complaint, MGA purports to seek damages in excess of $1 billion. Mattel believes that MGA’s claim should be barred as a matter of law, and intends to vigorously defend against it. Accordingly, Mattel does not believe a loss is probable and, therefore, a liability has not been accrued as of March 31, 2014.

Litigation Related to Yellowstone do Brasil Ltda.

Yellowstone do Brasil Ltda. (formerly known as Trebbor Informática Ltda.) was a customer of Mattel’s subsidiary Mattel do Brasil Ltda. when a commercial dispute arose between Yellowstone and Mattel do Brasil regarding the supply of product and related payment terms. As a consequence of the dispute, in April 1999, Yellowstone filed a declarative action against Mattel do Brasil requesting the annulment of its security bonds and promissory notes given to Mattel as well as requesting the court to find Mattel do Brasil liable for damages incurred as a result of Mattel do Brasil’s alleged abrupt and unreasonable breach of an oral exclusive distribution agreement between the parties relating to the supply and sale of toys in Brazil. Yellowstone’s complaint sought alleged loss of profits of approximately $1 million (historical value), plus an unspecified amount of damages consisting of: (i) compensation for all investments made by Yellowstone to develop Mattel do Brasil’s business; (ii) reimbursement of the amounts paid by Yellowstone to terminate labor and civil contracts in connection with the business; (iii) compensation for alleged unfair competition and for the goodwill of trade; and (iv) compensation for non-pecuniary damages.

Mattel do Brasil filed its defenses to these claims and simultaneously presented a counterclaim for unpaid accounts receivable for goods supplied to Yellowstone in the approximate amount of $4 million (historical value).

During the evidentiary phase a first accounting report was submitted by a court-appointed expert. Such report stated that Yellowstone had invested approximately $3 million in its business (historical value). Additionally, the court-appointed expert calculated a loss of profits compensation of approximately $1 million (historical value). Mattel do Brasil challenged the report since it was not made based on the official accounting documents of Yellowstone and since the report calculated damages based only on documents unilaterally submitted by Yellowstone.

The trial court accepted the challenge and ruled that a second accounting examination should take place in the lawsuit. Yellowstone appealed the decision but it was upheld by the appeals court.

The second court-appointed expert’s report submitted at trial did not assign a value to any of Yellowstone’s claims and found no evidence of causation between Mattel do Brasil’s actions and such claims.

In January 2010, the trial court ruled in favor of Mattel do Brasil and denied all of Yellowstone’s claims based primarily on the lack of any causal connection between the acts of Mattel do Brasil and Yellowstone’s alleged damages. Additionally, the court upheld Mattel do Brasil’s counterclaim and ordered Yellowstone to pay Mattel do Brasil approximately $4 million (historical value). The likelihood of Mattel do Brasil recovering this amount was uncertain due to the fact that Yellowstone was declared insolvent and filed for bankruptcy protection. In February 2010, Yellowstone filed a motion seeking clarification of the decision which was denied.

In September 2010, Yellowstone filed a further appeal. Under Brazilian law, the appeal was de novo and Yellowstone restated all of the arguments it made at the trial court level. Yellowstone did not provide any additional information supporting its unspecified alleged damages. The appeals court held hearings on the appeal in March and April 2013. On July 26, 2013, the appeals court awarded Yellowstone approximately $20 million in damages, as adjusted for inflation and interest. The court also awarded Mattel approximately $8 million on its counterclaim, as adjusted for inflation. On August 2, 2013, Mattel filed a motion for clarification since the written decision contained clear errors in terms of amounts awarded and interest and inflation adjustments. Mattel’s motion also asked the court to decide whether Yellowstone’s award could be offset by the counterclaim award, despite Yellowstone’s status as a bankrupt entity. A decision on the clarification motion is expected in the second quarter of 2014. Mattel intends to appeal the decision to the Superior Court based on both procedural and substantive grounds.

Mattel believes that it is reasonably possible that a loss in this matter could range from $0 to approximately $20 million. The high end of this range, approximately $20 million, is based on the calculation of the current amount of the damages and loss of profits, including interest and inflation adjustments, reported in the first court-appointed examination report submitted in the lawsuit, plus attorney’s fees. Mattel do Brasil may be entitled to offset its counterclaim award of approximately $8 million, including inflation adjustment, against such loss. The existence of pending motions for clarification filed by both parties and the resulting clarification decision expected to be issued in the second quarter of 2014, as well as the procedural aspects of an appeal to the Superior Court, adds some uncertainty to the final outcome of the matter. Mattel believes however that it has good legal grounds for appeal of the decision and does not believe that a loss is probable for this matter. Accordingly, a liability has not been accrued as of March 31, 2014. Mattel may be required to place the full amount of the damage award in escrow pending an appeal decision by the Superior Court.

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Property, Plant, and Equipment (Detail) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2014	Dec. 31, 2013	Mar. 31, 2013
Property, Plant and Equipment [Line Items]
Property, plant, and equipment, gross	$ 2,271,967	$ 2,239,550	$ 2,173,086
Less: accumulated depreciation	(1,613,210)	(1,580,217)	(1,568,032)
Property, plant, and equipment, net	658,757	659,333	605,054
Land
Property, Plant and Equipment [Line Items]
Property, plant, and equipment, gross	27,682	27,555	26,733
Buildings
Property, Plant and Equipment [Line Items]
Property, plant, and equipment, gross	270,951	269,874	273,479
Machinery and equipment
Property, Plant and Equipment [Line Items]
Property, plant, and equipment, gross	680,901	673,546	682,866
Software
Property, Plant and Equipment [Line Items]
Property, plant, and equipment, gross	310,264	301,284	263,484
Tools, dies, and molds
Property, Plant and Equipment [Line Items]
Property, plant, and equipment, gross	728,931	713,749	692,215
Capital leases
Property, Plant and Equipment [Line Items]
Property, plant, and equipment, gross	23,271	23,271	23,271
Leasehold improvements
Property, Plant and Equipment [Line Items]
Property, plant, and equipment, gross	$ 229,967	$ 230,271	$ 211,038

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Earnings Per Share (Tables)

3 Months Ended

Mar. 31, 2014

Earnings (Loss) Per Share

The following table reconciles earnings (loss) per common share for the three months ended March 31, 2014 and 2013:

	For the Three Months Ended
	March 31, 2014			March 31, 2013
	(In thousands, except per share amounts)
Basic:
Net (loss) income	$	(11,218	)	$	38,511
Less: net income allocable to participating RSUs (a)		—			(401	)
Net (loss) income available for basic common shares	$	(11,218	)	$	38,110
Weighted average common shares outstanding		340,226			344,315
Basic net (loss) income per common share	$	(0.03	)	$	0.11
Diluted:
Net (loss) income	$	(11,218	)	$	38,511
Less: net income allocable to participating RSUs (a)		—			(412	)
Net (loss) income available for diluted common shares	$	(11,218	)	$	38,099
Weighted average common shares outstanding		340,226			344,315
Weighted average common equivalent shares arising from:
Dilutive stock options and non-participating RSUs		—			4,480
Weighted average number of common and potential common shares		340,226			348,795
Diluted net (loss) income per common share	$	(0.03	)	$	0.11

(a) During the three months ended March 31, 2014, Mattel did not allocate its net loss to its participating RSUs as its participating RSUs are not obligated to share in the losses of the Company. During the three months ended March 31, 2013, Mattel allocated a proportionate share of both dividends and undistributed earnings to participating RSUs.

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Consolidated Statements of Comprehensive (Loss) Income (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Net (Loss) Income	$ (11,218)	$ 38,511
Other Comprehensive Income (Loss), Net of Tax:
Currency translation adjustments	3,872	(27,379)
Defined benefit pension plans net prior service credit (cost) and net actuarial gain (loss)	2,088	3,431
Net unrealized gains (losses) on derivative instruments:
Unrealized holding gains	1,228	8,138
Reclassification adjustment for realized losses (gains) included in net income	2,767	(1,129)
Net unrealized gains on derivative instruments	3,995	7,009
Other Comprehensive Income (Loss), Net of Tax	9,955	(16,939)
Comprehensive (Loss) Income	$ (1,263)	$ 21,572

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Property, Plant, and Equipment

3 Months Ended

Mar. 31, 2014

Property, Plant, and Equipment

4. Property, Plant, and Equipment

Property, plant, and equipment, net includes the following:

	March 31, 2014			March 31, 2013			December 31, 2013
	(In thousands)
Land	$	27,682		$	26,733		$	27,555
Buildings		270,951			273,479			269,874
Machinery and equipment		680,901			682,866			673,546
Software		310,264			263,484			301,284
Tools, dies, and molds		728,931			692,215			713,749
Capital leases		23,271			23,271			23,271
Leasehold improvements		229,967			211,038			230,271
		2,271,967			2,173,086			2,239,550
Less: accumulated depreciation		(1,613,210	)		(1,568,032	)		(1,580,217	)
	$	658,757		$	605,054		$	659,333

Property, plant, and equipment are stated at cost less accumulated depreciation and amortization. Depreciation is computed using the straight-line method over estimated useful lives of 10 to 30 years for buildings, 3 to 10 years for machinery and equipment, 3 to 7 years for software, and 10 to 20 years, not to exceed the lease term, for leasehold improvements. Tools, dies, and molds are depreciated using the straight-line method over 3 years. Estimated useful lives are periodically reviewed and, where appropriate, changes are made prospectively. The carrying value of property, plant, and equipment is reviewed when events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. Any potential impairment identified is assessed by evaluating the operating performance and future undiscounted cash flows of the underlying assets. When property is sold or retired, the cost of the property and the related accumulated depreciation are removed from the consolidated balance sheet, and any resulting gain or loss is included in the results of operations.

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Long-Term Debt (Parenthetical) (Detail)	3 Months Ended		12 Months Ended
	Mar. 31, 2014	Mar. 31, 2013	Dec. 31, 2013
2010 Senior Notes due October 2020
Debt Instrument [Line Items]
Debt instrument maturity date, month and year	2020-10	2020-10	2020-10
2010 Senior Notes due October 2040
Debt Instrument [Line Items]
Debt instrument maturity date, month and year	2040-10	2040-10	2040-10
2011 Senior Notes due November 2016
Debt Instrument [Line Items]
Debt instrument maturity date, month and year	2016-11	2016-11	2016-11
2011 Senior Notes due November 2041
Debt Instrument [Line Items]
Debt instrument maturity date, month and year	2041-11	2041-11	2041-11
2013 Senior Notes due March 2018
Debt Instrument [Line Items]
Debt instrument maturity date, month and year	2018-03	2018-03	2018-03
2013 Senior Notes due March 2023
Debt Instrument [Line Items]
Debt instrument maturity date, month and year	2023-03	2023-03	2023-03

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Segment Revenues and Segment Income (Parenthetical) (Detail) (USD $)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Segment Reporting Information [Line Items]
Share-based compensation expense	$ 12,693,000	$ 13,862,000
Corporate and Other
Segment Reporting Information [Line Items]
Severance expense	21,500,000	5,500,000
Share-based compensation expense	$ 12,700,000	$ 13,900,000

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Assets Measured and Reported at Fair Value on Recurring Basis Using Significant Level 3 Inputs (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2014
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Balance at beginning of period	$ 28,895
Unrealized gain	1,093
Balance at end of period	$ 29,988

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Segment Information

3 Months Ended

Mar. 31, 2014

Segment Information

21. Segment Information

Mattel, through its subsidiaries, sells a broad variety of toy products which are grouped into three major brand categories:

Mattel Girls & Boys Brands—including Barbie^® fashion dolls and accessories (“Barbie”), Monster High^®, Disney Classics^®, Ever After High^®, Little Mommy^®, and Polly Pocket (collectively “Other Girls”), Hot Wheels^® and Matchbox^® vehicles and play sets (collectively “Wheels”), and CARS^®, Disney Planes™, Radica^®, Toy Story^®, Max Steel^®, WWE^® Wrestling, Batman^®, and games and puzzles (collectively “Entertainment”).

Fisher-Price Brands—including Fisher-Price^®, Little People^®, BabyGear™, Laugh & Learn^®, and Imaginext^® (collectively “Core Fisher-Price”), Thomas & Friends^®, Dora the Explorer^®, Mickey Mouse^® Clubhouse, and Disney Jake and the Never Land Pirates^® (collectively “Fisher-Price Friends”), and Power Wheels^®.

American Girl Brands—including My American Girl^®, the historical collection, and Bitty Baby^®. American Girl Brands products are sold directly to consumers via its catalog, website, and proprietary retail stores. Its children’s publications are also sold to certain retailers.

Mattel’s operating segments are: (i) North America, which consists of the US and Canada, (ii) International, and (iii) American Girl. The North America and International segments sell products in the Mattel Girls & Boys Brands and Fisher-Price Brands categories, although some are developed and adapted for particular international markets.

Segment Data

The following tables present information about revenues, income, and assets by segment. Mattel does not include sales adjustments such as trade discounts and other allowances in the calculation of segment revenues (referred to as “gross sales” and reconciled to net sales in Part I, Item 2 “Non-GAAP Financial Measure” of this Quarterly Report on Form 10-Q). Mattel records these adjustments in its financial accounting systems at the time of sale to each customer, but the adjustments are not allocated to individual products. For this reason, Mattel’s chief operating decision maker uses gross sales by segment as one of the metrics to measure segment performance. Such sales adjustments are included in the determination of segment income from operations based on the adjustments recorded in the financial accounting systems. Segment income represents each segment’s operating income, while consolidated operating income represents income from operations before net interest, other non-operating income (expense), and income taxes as reported in the consolidated statements of operations. The corporate and other expense category includes costs not allocated to individual segments, including charges related to incentive compensation, share-based payments, and corporate headquarters functions managed on a worldwide basis, and the impact of changes in foreign currency rates on intercompany transactions.

	For the Three Months Ended
	March 31, 2014			March 31, 2013
	(In thousands)
Revenues by Segment
North America	$	441,431		$	456,469
International		489,239			527,011
American Girl		110,558			104,950
Gross sales		1,041,228			1,088,430
Sales adjustments		(95,051	)		(92,824	)
Net sales	$	946,177		$	995,606
Segment Income
North America	$	48,723		$	68,127
International		31,480			61,995
American Girl		9,244			11,955
		89,447			142,077
Corporate and other expense (a)		(83,229	)		(76,246	)
Operating income		6,218			65,831
Interest expense		17,246			20,337
Interest (income)		(1,279	)		(1,400	)
Other non-operating (income) expense, net		(328	)		2,729
(Loss) Income before income taxes	$	(9,421	)	$	44,165

(a) Corporate and other expense includes severance and other termination-related costs of $21.5 million and $5.5 million for the three months ended March 31, 2014 and 2013, respectively, and share-based compensation expense of $12.7 million and $13.9 million for the three months ended March 31, 2014 and 2013, respectively.

Segment assets are comprised of accounts receivable and inventories, net of applicable reserves and allowances.

	March 31, 2014		March 31, 2013		December 31, 2013
	(In thousands)
Assets by Segment
North America	$	463,905	$	475,702	$	723,886
International		734,024		683,083		920,770
American Girl		110,666		94,569		100,438
		1,308,595		1,253,354		1,745,094
Corporate and other		104,794		97,340		83,854
Accounts receivable and inventories, net	$	1,413,389	$	1,350,694	$	1,828,948

The table below presents worldwide revenues by brand category:

	For the Three Months Ended
	March 31, 2014			March 31, 2013
	(In thousands)
Worldwide Revenues by Brand Category
Mattel Girls & Boys Brands	$	656,861		$	692,170
Fisher-Price Brands		271,443			287,265
American Girl Brands		105,938			100,455
Other		6,986			8,540
Gross sales		1,041,228			1,088,430
Sales adjustments		(95,051	)		(92,824	)
Net sales	$	946,177		$	995,606

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Employee Benefit Plans - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2014
Employee Benefits Disclosure [Line Items]
Cash contributions for defined benefit pension plans	$ 1
Cash contributions for postretirement benefit plans	$ 1

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Accumulated Other Comprehensive Income (Loss) (Tables)

3 Months Ended

Mar. 31, 2014

Summary of Changes in Accumulated Other Comprehensive Income/Loss

The following tables present changes in the accumulated balances for each component of other comprehensive income, including current period other comprehensive income and reclassifications out of accumulated other comprehensive income (loss):

	For the Three Months Ended March 31, 2014
	Derivative Instruments			Defined Benefit Pension Plans			Currency Translation Adjustments			Total
	(In thousands)
Accumulated Other Comprehensive Income (Loss), Net of Tax, as of December 31, 2013	$	(10,789	)	$	(131,946	)	$	(300,941	)	$	(443,676	)
Other comprehensive income before reclassifications		1,228			(92	)		3,872			5,008
Amounts reclassified from accumulated other comprehensive income (loss)		2,767			2,180			—			4,947
Net increase in other comprehensive income		3,995			2,088			3,872			9,955
Accumulated Other Comprehensive Income (Loss), Net of Tax, as of March 31, 2014	$	(6,794	)	$	(129,858	)	$	(297,069	)	$	(433,721	)
	For the Three Months Ended March 31, 2013
	Derivative Instruments			Defined Benefit Pension Plans			Currency Translation Adjustments			Total
	(In thousands)
Accumulated Other Comprehensive Income (Loss), Net of Tax, as of December 31, 2012	$	(2,583	)	$	(190,656	)	$	(271,247	)	$	(464,486	)
Other comprehensive income before reclassifications		8,138			311			(27,379	)		(18,930	)
Amounts reclassified from accumulated other comprehensive income (loss)		(1,129	)		3,120			—			1,991
Net increase (decrease) in other comprehensive income		7,009			3,431			(27,379	)		(16,939	)
Accumulated Other Comprehensive Income (Loss), Net of Tax, as of March 31, 2013	$	4,426		$	(187,225	)	$	(298,626	)	$	(481,425	)

Summary of Consolidated Statement of Operations Line Items Affected by Reclassifications from Accumulated Other Comprehensive Income/Loss

The following table presents the classification and amount of the reclassifications from accumulated other comprehensive income (loss) to the consolidated statement of operations:

	For the Three Months Ended March 31, 2014			For the Three Months Ended March 31, 2013			Statements of Operations Classification
	(In thousands)
Derivative Instruments
(Loss) gain on foreign currency forward exchange contracts	$	(2,718	)	$	1,131		Cost of sales
		(49	)		(2	)	Provision for income taxes
	$	(2,767	)	$	1,129		Net (loss) income
Defined Benefit Pension Plans
Amortization of prior service credit	$	264		$	126		(a)
Recognized actuarial loss		(3,662	)		(5,146	)	(a)
		(3,398	)		(5,020	)
		1,218			1,900		Provision for income taxes
	$	(2,180	)	$	(3,120	)	Net (loss) 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” of this Quarterly Report on Form 10-Q for additional information regarding Mattel’s net periodic benefit cost.

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Earnings Per Share

3 Months Ended

Mar. 31, 2014

Earnings Per Share

14. Earnings Per Share

Unvested share-based payment awards that contain nonforfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are participating securities and are included in the computation of earnings per share pursuant to the two-class method. Certain of Mattel’s restricted stock units (“RSUs”) are considered participating securities because they contain nonforfeitable rights to dividend equivalents.

Under the two-class method, net income is reduced by the amount of dividends declared in the period for each class of common stock and participating securities. The remaining undistributed earnings are then allocated to common stock and participating securities as if all of the net income for the period had been distributed. Basic earnings per common share excludes dilution and is calculated by dividing net income allocable to common shares by the weighted average number of common shares outstanding for the period. Diluted earnings per common share is calculated by dividing net income allocable to common shares by the weighted average number of common shares for the period, as adjusted for the potential dilutive effect of non-participating share-based awards. The following table reconciles earnings (loss) per common share for the three months ended March 31, 2014 and 2013:

	For the Three Months Ended
	March 31, 2014			March 31, 2013
	(In thousands, except per share amounts)
Basic:
Net (loss) income	$	(11,218	)	$	38,511
Less: net income allocable to participating RSUs (a)		—			(401	)
Net (loss) income available for basic common shares	$	(11,218	)	$	38,110
Weighted average common shares outstanding		340,226			344,315
Basic net (loss) income per common share	$	(0.03	)	$	0.11
Diluted:
Net (loss) income	$	(11,218	)	$	38,511
Less: net income allocable to participating RSUs (a)		—			(412	)
Net (loss) income available for diluted common shares	$	(11,218	)	$	38,099
Weighted average common shares outstanding		340,226			344,315
Weighted average common equivalent shares arising from:
Dilutive stock options and non-participating RSUs		—			4,480
Weighted average number of common and potential common shares		340,226			348,795
Diluted net (loss) income per common share	$	(0.03	)	$	0.11

(a) During the three months ended March 31, 2014, Mattel did not allocate its net loss to its participating RSUs as its participating RSUs are not obligated to share in the losses of the Company. During the three months ended March 31, 2013, Mattel allocated a proportionate share of both dividends and undistributed earnings to participating RSUs.

The calculation of potential common shares assumes the exercise of dilutive stock options and vesting of non-participating RSUs, net of assumed treasury share repurchases at average market prices. Nonqualified stock options and non-participating RSUs totaling 3.8 million and 0.1 million shares were excluded from the calculation of diluted net income per common share for the three months ended March 31, 2014 and 2013, respectively, because they were antidilutive.