Employee Benefit Plans (Tables)

12 Months Ended

Dec. 31, 2016

Compensation and Retirement Disclosure [Abstract]

A summary of retirement plan expense is as follows:



	For the Year Ended
	December 31, 2016		December 31, 2015		December 31, 2014
	(In thousands)
Defined contribution retirement plans	$	37,661	$	40,673	$	43,819
Defined benefit pension plans	13,999		14,779		18,124
Deferred compensation and excess benefit plans	5,093		225		4,840
Postretirement benefit plans	1,343		1,396		1,461
	$	58,096	$	57,073	$	68,244

Schedule of Defined Benefit Plan Amounts Recognized in Other Comprehensive Income (Loss)

A summary of the components of Mattel’s net periodic benefit cost and other changes in plan assets and benefit obligations recognized in other comprehensive income for the years ended December 31 is as follows:



	Defined Benefit Pension Plans									Postretirement Benefit Plans
	2016			2015			2014			2016			2015			2014
	(In thousands)
Net periodic benefit cost:
Service cost	$	5,557		$	6,105		$	7,515		$	52		$	54		$	67
Interest cost	24,526			26,007			27,708			1,143			1,194			1,377
Expected return on plan assets	(25,726		)	(29,850		)	(31,833		)	—			—			—
Amortization of prior service cost (credit)	461			(465		)	(1,037		)	—			—			—
Recognized actuarial loss	6,994			15,168			15,771			148			148			17
Settlement loss	1,772			6,453			—			—			—			—
Curtailment loss (gain)	415			(8,639		)	—			—			—			—
Net periodic benefit cost	$	13,999		$	14,779		$	18,124		$	1,343		$	1,396		$	1,461
Other changes in plan assets and benefit obligations recognized in other comprehensive income:
Net actuarial (gain) loss	$	(1,531	)	$	(8,813	)	$	48,502		$	(1,833	)	$	(3,130	)	$	(2,205	)
Prior service cost	505			8,691			20			—			—			—
Amortization of prior service (cost) credit	(461		)	465			1,037			—			—			—
Total recognized in other comprehensive income (a)	$	(1,487	)	$	343		$	49,559		$	(1,833	)	$	(3,130	)	$	(2,205	)
Total recognized in net periodic benefit cost and other comprehensive income	$	12,512		$	15,122		$	67,683		$	(490	)	$	(1,734	)	$	(744	)


(a)	Amounts exclude related tax expense (benefit) of $1.2 million, $1.1 million, and $(17.8) million, during 2016, 2015, and 2014, respectively, which are also included in other comprehensive income.

Summary of Components of Net Periodic Benefit Cost



	Defined Benefit Pension Plans									Postretirement Benefit Plans
	2016			2015			2014			2016			2015			2014
	(In thousands)
Net periodic benefit cost:
Service cost	$	5,557		$	6,105		$	7,515		$	52		$	54		$	67
Interest cost	24,526			26,007			27,708			1,143			1,194			1,377
Expected return on plan assets	(25,726		)	(29,850		)	(31,833		)	—			—			—
Amortization of prior service cost (credit)	461			(465		)	(1,037		)	—			—			—
Recognized actuarial loss	6,994			15,168			15,771			148			148			17
Settlement loss	1,772			6,453			—			—			—			—
Curtailment loss (gain)	415			(8,639		)	—			—			—			—
Net periodic benefit cost	$	13,999		$	14,779		$	18,124		$	1,343		$	1,396		$	1,461
Other changes in plan assets and benefit obligations recognized in other comprehensive income:
Net actuarial (gain) loss	$	(1,531	)	$	(8,813	)	$	48,502		$	(1,833	)	$	(3,130	)	$	(2,205	)
Prior service cost	505			8,691			20			—			—			—
Amortization of prior service (cost) credit	(461		)	465			1,037			—			—			—
Total recognized in other comprehensive income (a)	$	(1,487	)	$	343		$	49,559		$	(1,833	)	$	(3,130	)	$	(2,205	)
Total recognized in net periodic benefit cost and other comprehensive income	$	12,512		$	15,122		$	67,683		$	(490	)	$	(1,734	)	$	(744	)


(a)	Amounts exclude related tax expense (benefit) of $1.2 million, $1.1 million, and $(17.8) million, during 2016, 2015, and 2014, respectively, which are also included in other comprehensive income.

Assumptions Used to Calculate Net Periodic Benefit Cost for Domestic Defined Benefit Pension and Postretirement Benefit Plans

Net periodic benefit cost for Mattel’s domestic defined benefit pension and postretirement benefit plans was calculated on January 1 of each year using the following assumptions:



	For the Year Ended
	December 31, 2016		December 31, 2015		December 31, 2014
Defined benefit pension plans:
Discount rate	4.2	%	3.8	%	4.7	%
Weighted average rate of future compensation increases	N/A		3.8	%	3.8	%
Long-term rate of return on plan assets	6.5	%	(a)		8.0	%
Postretirement benefit plans:
Discount rate	4.2	%	3.8	%	4.7	%
Annual increase in Medicare Part B premium	6.0	%	6.0	%	6.0	%
Health care cost trend rate:
Pre-65	7.0	%	7.5	%	8.5	%
Post-65	8.3	%	8.8	%	7.5	%
Ultimate cost trend rate:
Pre-65	4.5	%	4.5	%	6.1	%
Post-65	4.5	%	4.5	%	5.4	%
Year that the rate reaches the ultimate cost trend rate:
Pre-65	2023		2023		2030
Post-65	2024		2024		2030


(a)	A long-term rate of return on plan assets of 7.5% was used for the first half of 2015. A long-term rate of return on plan assets of 6.8% was used for the second half of 2015, resulting from a change in the plans' target asset allocation.

Summary of Changes in Benefit Obligation and Plan Assets for Defined Benefit Pension and Postretirement Benefit Plans

A summary of the changes in benefit obligation and plan assets is as follows:



	Defined Benefit Pension Plans						Postretirement Benefit Plans
	December 31, 2016			December 31, 2015			December 31, 2016			December 31, 2015
	(In thousands)
Change in Benefit Obligation:
Benefit obligation, beginning of year	$	611,490		$	677,641		$	30,416		$	34,402
Service cost	5,557			6,105			52			54
Interest cost	24,526			26,007			1,143			1,194
Impact of currency exchange rate changes	(14,535		)	(11,016		)	—			—
Actuarial loss (gain)	25,164			(14,604		)	(1,686		)	(2,981		)
Benefits paid	(46,425		)	(67,994		)	(2,311		)	(2,253		)
Plan amendments	74			(4,649		)	—			—
Benefit obligation, end of year	$	605,851		$	611,490		$	27,614		$	30,416
Change in Plan Assets:
Plan assets at fair value, beginning of year	$	435,274		$	475,940		$	—		$	—
Actual return on plan assets	43,292			(690		)	—			—
Employer contributions	17,617			33,353			2,311			2,253
Impact of currency exchange rate changes	(15,978		)	(5,335		)	—			—
Benefits paid	(46,425		)	(67,994		)	(2,311		)	(2,253		)
Plan assets at fair value, end of year	$	433,780		$	435,274		$	—		$	—
Net Amount Recognized in Consolidated Balance Sheets:
Funded status, end of year	$	(172,071	)	$	(176,216	)	$	(27,614	)	$	(30,416	)
Current accrued benefit liability	(4,519		)	(7,416		)	(2,700		)	(3,300		)
Noncurrent accrued benefit liability	(167,552		)	(168,800		)	(24,914		)	(27,116		)
Total accrued benefit liability	$	(172,071	)	$	(176,216	)	$	(27,614	)	$	(30,416	)
Amounts Recognized in Accumulated Other Comprehensive Loss (a):
Net actuarial loss (gain)	$	243,249		$	244,780		$	(49	)	$	1,784
Prior service cost	164			120			—			—
	$	243,413		$	244,900		$	(49	)	$	1,784


(a)	Amounts exclude related tax benefits of $85.7 million and $86.8 million for December 31, 2016 and 2015, respectively, which are also included in accumulated other comprehensive loss.

Assumptions Used to Determine Projected and Accumulated Benefit Obligations of Domestic Defined Benefit Pension and Postretirement Benefit Plans

The assumptions used in determining the projected and accumulated benefit obligations of Mattel’s domestic defined benefit pension and postretirement benefit plans are as follows:



	December 31, 2016		December 31, 2015
Defined benefit pension plans:
Discount rate	3.9	%	4.2	%
Weighted average rate of future compensation increases	N/A		3.8	%
Postretirement benefit plans:
Discount rate	3.9	%	4.2	%
Annual increase in Medicare Part B premium	6.0	%	6.0	%
Health care cost trend rate:
Pre-65	7.0	%	7.0	%
Post-65	7.8	%	8.3	%
Ultimate cost trend rate:
Pre-65	4.5	%	4.5	%
Post-65	4.5	%	4.5	%
Year that the rate reaches the ultimate cost trend rate:
Pre-65	2024		2023
Post-65	2024		2024

Estimated Future Benefit Payments for Defined Benefit Pension and Postretirement Benefit Plans

The estimated future benefit payments for Mattel’s defined benefit pension and postretirement benefit plans are as follows:



	Defined Benefit Pension Plans		Postretirement Benefit Plans
	(In thousands)
2017	$	54,051	$	2,700
2018	37,833		2,600
2019	37,997		2,600
2020	37,901		2,600
2021	37,466		2,600
2022 – 2026	185,012		11,300

Plan Assets Measured and Reported in Financial Statements at Fair Value

Mattel’s defined benefit pension plan assets are measured and reported in the financial statements at fair value using inputs, which are more fully described in “Note 10 to the Consolidated Financial Statements—Fair Value Measurements,” as follows:



	December 31, 2016
	Level 1		Level 2		Level 3		Total
	(In thousands)
US government and US government agency securities	$	—	$	1,568	$	—	$	1,568
US corporate debt instruments	—		33,787		—		33,787
International corporate debt instruments	—		8,689		—		8,689
Mutual funds	582		—		—		582
Money market funds	2,531		—				2,531
Other	—		6,640		—		6,640
Collective trust funds:
US equity securities (a)							96,487
International equity securities (a)							239,177
International fixed income (a)							44,319
Total	$	3,113	$	50,684	$	—	$	433,780



	December 31, 2015
	Level 1		Level 2		Level 3		Total
	(In thousands)
US government and US government agency securities	$	—	$	1,540	$	—	$	1,540
US corporate debt instruments	—		31,254		—		31,254
International corporate debt instruments	—		5,612		—		5,612
Mutual funds	567		—		—		567
Other	—		10,023		—		10,023
Collective trust funds:
US equity securities (a)							86,466
International equity securities (a)							255,694
International fixed income (a)							44,118
Total	$	567	$	48,429	$	—	$	435,274

(a) These investments consist of privately placed funds that are valued based on net asset value per share. With the adoption of ASU 2015-07, certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the statement of financial position and its related disclosures.