Goodwill and Other Intangibles

12 Months Ended

Dec. 31, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill is allocated to various reporting units, which are at the operating segment level, for the purpose of evaluating whether goodwill is impaired. Mattel’s reporting units are: (i) North America, (ii) International, and (iii) American Girl. Components of the operating segments have been aggregated into a single reporting unit as the components have similar economic characteristics. The similar economic characteristics include the nature of the products, the nature of the production processes, the customers, and the manner in which the products are distributed.

The change in the carrying amount of goodwill by operating segment for 2019 and 2018 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. Due to the sale of Corolle in the first quarter of 2018, there was no foreign currency translation impact for the American Girl operating segment during the year ended December 31, 2019.



	North America			International			American Girl			Total
	(In thousands)
Balance at December 31, 2017	$	733,034		$	452,152		$	211,483		$	1,396,669
Dispositions	—			—			(4,018		)	(4,018		)
Currency exchange rate impact	(1,800		)	(4,533		)	106			(6,227		)
Balance at December 31, 2018	731,234			447,619			207,571			1,386,424
Currency exchange rate impact	1,196			3,094			—			4,290
Balance at December 31, 2019	$	732,430		$	450,713		$	207,571		$	1,390,714

In the third quarter of 2019, Mattel performed its annual impairment test and determined that goodwill was not impaired since each reporting unit's fair value exceeded its carrying value.

Other Intangibles

Identifiable intangibles were $553.1 million, net of accumulated amortization of $248.0 million, and $587.5 million, net of accumulated amortization of $207.9 million, as of December 31, 2019 and 2018, respectively. The estimated future amortization expense for the next five years is as follows:



	Amortization Expense
	(In thousands)
2020	$	39,090
2021	38,160
2022	38,311
2023	37,622
2024	36,942

Mattel had no indefinite-lived intangible assets as of and for the year ended of December 31, 2019 and 2018.

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. Mattel's amortizable intangible assets primarily consist of trademarks. During 2019, Mattel's amortizable intangible assets were not impaired. During 2018, Mattel discontinued the use of certain brands and products, which resulted in asset impairments of $4.3 million.