10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 ___________________________________________________________ 

FORM 10-Q

 ___________________________________________________________ 

(Mark One)

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

For the quarterly period ended June 30, 2021

or

☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	For the transition period from                     to

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.		90245-5012
El Segundo,	CA
(Address of principal executive offices)		(Zip Code)

(310) 252-2000

(Registrant's telephone number, including area code)

NONE

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

__________________________________________________________ 

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common stock, $1.00 per share	MAT	The Nasdaq Global Select Market

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  ☒    No  ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted 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 such files).    Yes  ☒    No  ☐

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

Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.    ☐

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

Number of shares outstanding of registrant's common stock, $1.00 par value, as of July 26, 2021: 348,970,305 shares

1

MATTEL, INC. AND SUBSIDIARIES

		Page
	PART I
Item 1.	Financial Statements	4
	Consolidated Balance Sheets	4
	Consolidated Statements of Operations	5
	Consolidated Statements of Comprehensive Income (Loss)	6
	Consolidated Statements of Cash Flows	7
	Consolidated Statements of Stockholders' Equity	8
	Notes to Consolidated Financial Statements	9
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	33
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	50
Item 4.	Controls and Procedures	51
	PART II
Item 1.	Legal Proceedings	52
Item 1A.	Risk Factors	52
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	52
Item 3.	Defaults Upon Senior Securities	52
Item 4.	Mine Safety Disclosures	52
Item 5.	Other Information	52
Item 6.	Exhibits	53
	Signature	54

2

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

Mattel is including this Cautionary Statement to caution investors and qualify for 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. The use of words such as "anticipates," "expects," "intends," "plans," "confident that," "believes," and "targeted," among others, generally identify forward-looking statements. These forward-looking statements are based on currently available operating, financial, economic, and other information and assumptions, and are subject to a number of significant risks and uncertainties. A variety of factors, many of which are beyond Mattel's control, could cause actual future results to differ materially from those projected in the forward-looking statements, and are currently, and in the future may be, amplified by the COVID-19 pandemic. Specific factors that might cause such a difference include, but are not limited to: (i) potential impacts of and uncertainty regarding the COVID-19 pandemic (and actions taken in response to it by governments, businesses, and individuals) on Mattel's business operations, financial results and financial position and on the global economy, including its impact on Mattel's sales; (ii) Mattel’s ability to design, develop, produce, manufacture, source, ship, and distribute products on a timely and cost-effective basis; (iii) sufficient interest in and demand for the products and entertainment we offer by retail customers and consumers to profitably recover Mattel’s costs; (iv) downturns in economic conditions affecting Mattel’s markets which can negatively impact retail customers and consumers, and which can result in lower employment levels and lower consumer disposable income and spending, including lower spending on purchases of Mattel’s products; (v) other factors which can lower discretionary consumer spending, such as higher costs for fuel and food, drops in the value of homes or other consumer assets, and high levels of consumer debt; (vi) potential difficulties or delays Mattel may experience in implementing cost savings and efficiency enhancing initiatives; (vii) other economic and public health conditions or regulatory changes in the markets in which Mattel and its customers and suppliers operate, which could create delays or increase Mattel’s costs, such as higher commodity prices, labor costs or transportation costs, or outbreaks of disease; (viii) currency fluctuations, including movements in foreign exchange rates and inflation, which can lower Mattel’s net revenues and earnings, and significantly impact Mattel’s costs; (ix) the concentration of Mattel’s customers, potentially increasing the negative impact to Mattel of difficulties experienced by any of Mattel’s customers, such as bankruptcies or liquidations or a general lack of success, or changes in their purchasing or selling patterns; (x) the inventory policies of Mattel’s retail customers, as well as the concentration of Mattel’s revenues in the second half of the year, which coupled with reliance by retailers on quick response inventory management techniques increases the risk of underproduction, overproduction, and shipping delays; (xi) legal, reputational, and financial risks related to security breaches or cyberattacks; (xii) work disruptions, including as a result of supply chain disruption such as plant and port closures, which may impact Mattel’s ability to manufacture or deliver product in a timely and cost-effective manner; (xiii) the impact of competition on revenues, margins, and other aspects of Mattel’s business, including the ability to offer products which consumers choose to buy instead of competitive products, the ability to secure, maintain, and renew popular licenses from licensors of entertainment properties, and the ability to attract and retain talented employees; (xiv) the risk of product recalls or product liability suits and costs associated with product safety regulations; (xv) changes in laws or regulations in the United States and/or in other major markets, such as China, in which Mattel operates, including, without limitation, with respect to taxes, tariffs, trade policies, or product safety, which may increase Mattel’s product costs and other costs of doing business, and reduce Mattel’s earnings; (xvi) failure to realize the planned benefits from any investments or acquisitions made by Mattel; (xvii) the impact of other market conditions or third party actions or approvals, including that result in any significant failure, inadequacy, or interruption from vendors or outsourcers, which could reduce demand for Mattel’s products, delay or increase the cost of implementation of Mattel’s programs, or alter Mattel’s actions and reduce actual results; (xviii) changes in financing markets or the inability of Mattel to obtain financing on attractive terms; (xix) the impact of litigation, arbitration, or regulatory decisions or settlement actions; (xx) uncertainty from the expected discontinuance of LIBOR and transition to any other interest rate benchmark; and (xxi) other risks and uncertainties detailed in Part I, Item 1A "Risk Factors" in Mattel's 2020 Annual Report on Form 10-K (the "2020 Annual Report on Form 10-K") and subsequent periodic filings. Mattel does not update forward-looking statements and expressly disclaims any obligation to do so, except as required by law.

3

PART I—FINANCIAL INFORMATION

Item 1. Financial Statements.

MATTEL, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

	June 30, 2021		June 30, 2020		December 31, 2020
	(Unaudited; in thousands, except share data)
ASSETS
Current Assets
Cash and equivalents	$	384,743	$	461,557	$	762,181
Accounts receivable, net of allowances for credit losses of $12.3 million, $18.7 million and $15.9 million, respectively	784,084		650,502		1,033,966
Inventories	818,037		727,864		528,474
Prepaid expenses and other current assets	186,965		174,218		172,070
Total current assets	2,173,829		2,014,141		2,496,691
Noncurrent Assets
Property, plant, and equipment, net	459,828		471,866		473,794
Right-of-use assets, net	343,793		282,474		291,601
Goodwill	1,392,779		1,382,858		1,393,834
Other noncurrent assets	870,829		847,366		878,970
Total Assets	$	5,241,058	$	4,998,705	$	5,534,890
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Short-term borrowings	$	214	$	400,000	$	969
Accounts payable	438,913		402,220		495,363
Accrued liabilities	647,425		541,833		831,922
Income taxes payable	35,838		15,732		27,125
Total current liabilities	1,122,390		1,359,785		1,355,379
Noncurrent Liabilities
Long-term debt	2,839,119		2,850,841		2,854,664
Noncurrent lease liabilities	306,094		246,414		249,353
Other noncurrent liabilities	445,736		435,565		465,350
Total noncurrent liabilities	3,590,949		3,532,820		3,569,367
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	1,848,201		1,844,075		1,842,680
Treasury stock at cost: 92.4 million shares, 94.4 million shares and 93.2 million shares, respectively	(2,262,223)		(2,314,967)		(2,282,939)
Retained earnings	1,435,688		1,113,220		1,553,610
Accumulated other comprehensive loss	(935,316)		(977,597)		(944,576)
Total stockholders’ equity	527,719		106,100		610,144
Total Liabilities and Stockholders’ Equity	$	5,241,058	$	4,998,705	$	5,534,890

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

4

MATTEL, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

	For the Three Months Ended				For the Six Months Ended
	June 30, 2021		June 30, 2020		June 30, 2021		June 30, 2020
	(Unaudited; in thousands, except per share amounts)
Net Sales	$	1,026,366	$	732,136	$	1,900,558	$	1,326,206
Cost of sales	538,361		413,225		1,000,716		747,073
Gross Profit	488,005		318,911		899,842		579,133
Advertising and promotion expenses	88,328		60,172		162,424		136,454
Other selling and administrative expenses	350,537		306,817		654,407		635,529
Operating Income (Loss)	49,140		(48,078)		83,011		(192,850)
Interest expense	38,144		49,615		168,627		98,595
Interest (income)	(584)		(1,025)		(1,403)		(3,108)
Other non-operating expense (income), net	533		2,662		(555)		5,684
Income (Loss) Before Income Taxes	11,047		(99,330)		(83,658)		(294,021)
Provision for income taxes	20,644		12,839		40,949		24,732
Income from equity method investments	4,060		1,060		6,685		1,941
Net Loss	$	(5,537)	$	(111,109)	$	(117,922)	$	(316,812)
Net Loss Per Common Share - Basic	$	(0.02)	$	(0.32)	$	(0.34)	$	(0.91)
Weighted-average number of common shares	349,441		346,875		349,244		346,778
Net Loss Per Common Share - Diluted	$	(0.02)	$	(0.32)	$	(0.34)	$	(0.91)
Weighted-average number of common and potential common shares	349,441		346,875		349,244		346,778

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

5

MATTEL, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

	For the Three Months Ended				For the Six Months Ended
	June 30, 2021		June 30, 2020		June 30, 2021		June 30, 2020
	(Unaudited; in thousands)
Net Loss	$	(5,537)	$	(111,109)	$	(117,922)	$	(316,812)
Other Comprehensive Income (Loss), Net of Tax
Currency translation adjustments	20,932		26,843		(7,201)		(118,791)
Employee benefit plan adjustments	2,221		518		4,569		3,578
Net unrealized gains (losses) on available-for-sale security	1,268		(80)		3,232		115
Net unrealized gains on derivative instruments:
Unrealized holding (losses) gains	(771)		2,594		9,331		16,022
Reclassification adjustments included in net loss	2,060		(1,589)		(671)		(9,037)
	1,289		1,005		8,660		6,985
Other Comprehensive Income (Loss), Net of Tax	25,710		28,286		9,260		(108,113)
Comprehensive Income (Loss)	$	20,173	$	(82,823)	$	(108,662)	$	(424,925)

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

6

MATTEL, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

	For the Six Months Ended
	June 30, 2021		June 30, 2020
	(Unaudited; in thousands)
Cash Flows From Operating Activities:
Net Loss	$	(117,922)	$	(316,812)
Adjustments to reconcile net loss to net cash flows used for operating activities:
Depreciation	72,727		81,984
Amortization	19,058		19,652
Share-based compensation	30,280		23,414
Bad debt expense	877		6,460
Inventory obsolescence	21,263		20,929
Deferred income taxes	7,588		5,784
Income from equity method investments	(6,685)		(1,941)
Loss on extinguishment of long-term borrowings	83,213		—
(Gain) loss on sale of assets/business, net	(21,839)		2,572
Changes in assets and liabilities:
Accounts receivable	239,567		248,008
Inventories	(338,313)		(244,935)
Prepaid expenses and other current assets	(14,700)		(19,423)
Accounts payable, accrued liabilities, and income taxes payable	(211,295)		(318,005)
Other, net	(5,189)		23,048
Net cash flows used for operating activities	(241,370)		(469,265)
Cash Flows From Investing Activities:
Purchases of tools, dies, and molds	(34,355)		(26,384)
Purchases of other property, plant, and equipment	(40,317)		(27,574)
Proceeds from (payments of) foreign currency forward exchange contracts, net	4,402		(21,746)
Proceeds from sale of assets/business	43,075		1,029
Other, net	—		(24)
Net cash flows used for investing activities	(27,195)		(74,699)
Cash Flows From Financing Activities:
(Payments of) proceeds from short-term borrowings, net	(755)		400,000
Payments of long-term borrowings	(1,287,022)		—
Proceeds from long-term borrowings, net	1,185,117		—
Other, net	(5,115)		(693)
Net cash flows (used for) provided by financing activities	(107,775)		399,307
Effect of Currency Exchange Rate Changes on Cash and Equivalents	(1,098)		(23,814)
Decrease in Cash and Equivalents	(377,438)		(168,471)
Cash and Equivalents at Beginning of Period	762,181		630,028
Cash and Equivalents at End of Period	$	384,743	$	461,557

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

7

MATTEL, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY

	Common Stock		Additional Paid-In Capital		Treasury Stock		Retained Earnings		Accumulated Other Comprehensive Loss		Total Stockholders’ Equity
	(Unaudited; in thousands)
Balance, December 31, 2020	$	441,369	$	1,842,680	$	(2,282,939)	$	1,553,610	$	(944,576)	$	610,144
Net loss	—		—		—		(112,385)		—		(112,385)
Other comprehensive loss, net of tax	—		—		—		—		(16,450)		(16,450)
Issuance of treasury stock for stock option exercises	—		(803)		1,913		—		—		1,110
Issuance of treasury stock for restricted stock units vesting	—		(20,031)		13,065		—		—		(6,966)
Share-based compensation	—		15,112		—		—		—		15,112
Balance, March 31, 2021	$	441,369	$	1,836,958	$	(2,267,961)	$	1,441,225	$	(961,026)	$	490,565
Net loss	—		—		—		(5,537)		—		(5,537)
Other comprehensive income, net of tax	—		—		—		—		25,710		25,710
Issuance of treasury stock for stock option exercises	—		(676)		2,830		—		—		2,154
Issuance of treasury stock for restricted stock units vesting	—		(3,212)		2,683		—		—		(529)
Deferred compensation	—		(37)		225		—		—		188
Share-based compensation	—		15,168		—		—		—		15,168
Balance, June 30, 2021	$	441,369	$	1,848,201	$	(2,262,223)	$	1,435,688	$	(935,316)	$	527,719
	Common Stock		Additional Paid-In Capital		Treasury Stock		Retained Earnings		Accumulated Other Comprehensive Loss		Total Stockholders’ Equity
	(Unaudited; in thousands)
Balance, December 31, 2019	$	441,369	$	1,825,569	$	(2,318,921)	$	1,430,031	$	(869,484)	$	508,564
Net loss	—		—		—		(205,702)		—		(205,702)
Other comprehensive loss, net of tax	—		—		—		—		(136,399)		(136,399)
Issuance of treasury stock for restricted stock units vesting	—		(3,777)		2,811		—		—		(966)
Share-based compensation	—		14,275		—		—		—		14,275
Balance, March 31, 2020	$	441,369	$	1,836,067	$	(2,316,110)	$	1,224,329	$	(1,005,883)	$	179,772
Net loss	—		—		—		(111,109)		—		(111,109)
Other comprehensive income, net of tax	—		—		—		—		28,286		28,286
Issuance of treasury stock for restricted stock units vesting	—		(944)		833		—		—		(111)
Deferred compensation	—		(186)		310		—		—		124
Share-based compensation	—		9,138		—		—		—		9,138
Balance, June 30, 2020	$	441,369	$	1,844,075	$	(2,314,967)	$	1,113,220	$	(977,597)	$	106,100

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

8

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 ("GAAP") applicable to interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. In the opinion of management, all adjustments, consisting of only those of a normal recurring nature, considered necessary for a fair statement of the financial position and interim results of Mattel, Inc. and its subsidiaries ("Mattel") as of and for the periods presented have been included.

The December 31, 2020 balance sheet data was derived from audited financial statements; however, the accompanying interim notes to the consolidated financial statements do not include all of the annual disclosures required by GAAP. As Mattel's business is seasonal, results for interim periods are not necessarily indicative of those that may be expected for a full year. The financial information included herein should be read in conjunction with Mattel's consolidated financial statements and related notes in the 2020 Annual Report on Form 10-K.

Certain prior period amounts have been reclassified to conform to the current period presentation.

Revision of Previously Issued Consolidated Financial Statements

During the quarter ended June 30, 2021, Mattel identified a misstatement in its accounting for inventory tooling expenses, which were expensed to cost of sales rather than first being capitalized into the cost of inventory, which resulted in an understatement of inventory balances and a misstatement of cost of sales. Mattel also identified a misstatement related to the timing of disbursements for certain capital expenditures, that resulted in a cash flow misclassification between operating activities and investing activities. Mattel evaluated the misstatements and concluded that the misstatements were not material, either individually or in aggregate, to its current or previously issued consolidated financial statements.

To correct the immaterial misstatements, Mattel has elected to revise its previously issued consolidated financial statements as of December 31, 2020 and 2019, and for each of the three years ended December 31, 2020, 2019, and 2018 and its unaudited consolidated financial statements as of and for the quarters and year-to-date periods ended March 31, 2020 and 2021, June 30, 2020, and September 30, 2020. The revision of the historical consolidated financial statements also includes the correction of other immaterial misstatements in its consolidated statement of operations that Mattel had previously recorded as out of period adjustments, as well as other previously identified balance sheet misclassifications. Mattel had previously determined that these misstatements did not, either individually or in the aggregate, result in a material misstatement of its previously issued consolidated financial statements and reached the same conclusion when aggregating with the recently identified misstatements. Further information regarding the misstatements and related revision is included in Note 24 - Revision for Immaterial Misstatements.

Accordingly, the accompanying financial statements and relevant footnotes to the consolidated financial statements in this Quarterly Report on Form 10-Q have been revised to correct for such misstatements. Mattel will present the revision of its previously issued consolidated financial statements as of December 31, 2020 and for the years ended December 31, 2020 and 2019 in connection with the future filing of its 2021 Annual Report on Form 10-K. Additionally, Mattel will present the revision of its previously issued consolidated financial statements as of and for the three months ended March 31, 2021 and as of and for the three and nine months ended September 30, 2020 in connection with the future filings of its Quarterly Reports on Form 10-Q.

2.     Accounts Receivable

Mattel estimates current expected credit losses based on collection history and management’s assessment of the current economic trends, business environment, customers’ financial condition, and accounts receivable aging that may impact the level of future credit losses. Accounts receivable are net of allowances for credit losses of $12.3 million, $18.7 million, and $15.9 million as of June 30, 2021, June 30, 2020, and December 31, 2020, respectively.

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3.     Inventories

Inventories include the following:

	June 30, 2021		June 30, 2020		December 31, 2020
	(In thousands)
Raw materials and work in process	$	169,794	$	139,256	$	110,010
Finished goods	648,243		588,608		418,464
	$	818,037	$	727,864	$	528,474

4.     Property, Plant, and Equipment

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

	June 30, 2021		June 30, 2020		December 31, 2020
	(In thousands)
Land	$	21,969	$	24,938	$	24,913
Buildings	321,540		332,067		335,407
Machinery and equipment	768,758		753,388		772,349
Software	348,983		342,150		344,268
Tools, dies, and molds	614,597		601,811		607,915
Leasehold improvements	116,473		143,427		131,578
	2,192,320		2,197,781		2,216,430
Less: accumulated depreciation	(1,732,492)		(1,725,915)		(1,742,636)
	$	459,828	$	471,866	$	473,794

During the three months ended March 31, 2021, Mattel completed the sale of a manufacturing plant based in Mexico, which included land and buildings, resulting in a pre-tax gain of $15.8 million. The assets sold were previously designated as held for sale, and included within property, plant, and equipment, net in the consolidated balance sheets as of December 31, 2020 and June 30, 2020.

5.     Goodwill

Goodwill is allocated to various reporting units, which are at the operating segment level, for the purpose of evaluating whether goodwill is impaired. Mattel's reporting units are: (i) North America, (ii) International, and (iii) American Girl. Components of the operating segments have been aggregated into a single reporting unit as the components have similar economic characteristics. The similar economic characteristics include the nature of the products, the nature of the production processes, the customers, and the manner in which the products are distributed. Mattel tests its goodwill for impairment annually in the third quarter and whenever events or changes in circumstances indicate that the carrying value of a reporting unit may exceed its fair value.

The change in the carrying amount of goodwill by operating segment for the six months ended June 30, 2021 is shown below. Brand-specific goodwill held by foreign subsidiaries is allocated to the North America segment, thereby causing a foreign currency translation impact. During the first quarter of 2021, Mattel sold its arts, crafts, and stationery business resulting in a reduction of goodwill of approximately $2 million.

	December 31, 2020		Dispositions		Currency Exchange Rate Impact		June 30, 2021
	(In thousands)
North America	$	733,401	$	(1,290)	$	371	$	732,482
International	452,862		(1,056)		920		452,726
American Girl	207,571		—		—		207,571
	$	1,393,834	$	(2,346)	$	1,291	$	1,392,779

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6.     Other Noncurrent Assets

Other noncurrent assets include the following: 

	June 30, 2021		June 30, 2020		December 31, 2020
	(In thousands)
Identifiable intangible assets (net of accumulated amortization of $306.0 million, $267.7 million, and $286.9 million, respectively)	$	500,811	$	524,153	$	518,190
Deferred income taxes	73,744		59,827		72,682

Mattel's amortizable intangible assets primarily consist of trademarks. Mattel tests its amortizable intangible assets for impairment whenever events or changes in circumstances indicate that the carrying value of the asset may not be recoverable. Mattel's amortizable intangible assets were not impaired during the three and six months ended June 30, 2021 and 2020.

7.     Accrued Liabilities

Accrued liabilities include the following:

	June 30, 2021		June 30, 2020		December 31, 2020
	(In thousands)
Current lease liabilities	$	71,481	$	81,225	$	79,540
Incentive compensation	69,850		46,177		126,601
Advertising and promotion	61,370		53,025		163,181
Royalties	34,165		30,998		54,442

8.     Seasonal Financing

On December 20, 2017, Mattel entered into a syndicated facility agreement, which was subsequently amended in 2018, 2019, and 2021 (as amended, the "Credit Agreement"), as a borrower (in such capacity, the "Borrower") and guarantor thereunder, along with certain of the Borrower's domestic and foreign subsidiaries as additional borrowers and/or guarantors thereunder.

On March 19, 2021, Mattel entered into the fourth amendment to the Credit Agreement, which amended certain terms, including, but not limited to, certain components of the borrowing base, a reduction of the aggregate principal commitments of the senior secured revolving credit facilities (the "senior secured revolving credit facilities") from $1.60 billion to $1.40 billion, and an extension of the maturity date from November 18, 2022 to March 19, 2024.

The senior secured revolving credit facilities consist of (i) an asset based lending facility with aggregate commitments up to $1.11 billion, subject to borrowing base capacity, secured by substantially all of the accounts receivable and inventory of the Borrower and certain of its subsidiaries who are borrowers and/or guarantors under the Credit Agreement, as well as (ii) a revolving credit facility with $294.0 million in aggregate commitments secured by certain fixed assets and intellectual property of the U.S. borrowers under the Credit Agreement, and certain equity interests in the borrower and guarantor subsidiaries under the Credit Agreement.

Borrowings under the senior secured revolving credit facilities (i) are limited by jurisdiction-specific borrowing base calculations based on the sum of specified percentages of eligible accounts receivable, eligible inventory and certain fixed assets and intellectual property, as applicable, minus the amount of any applicable reserves, and (ii) bear interest at a floating rate, which can be either, at the Borrower's option, (a) an adjusted LIBOR rate plus an applicable margin ranging from 1.25% to 1.75% per annum or (b) an alternate base rate plus an applicable margin ranging from 0.25% to 0.75% per annum, in each case, such applicable margins to be determined based on the Borrower's average borrowing availability remaining under the senior secured revolving credit facilities.

In addition to paying interest on the outstanding principal under the senior secured revolving credit facilities, the Borrower is required to pay (i) an unused line fee per annum of the average daily unused portion of the senior secured revolving credit facilities, (ii) a letter of credit fronting fee based on a percentage of the aggregate face amount of outstanding letters of credit, and (iii) certain other customary fees and expenses of the lenders and agents.

11

Mattel had no borrowings under the senior secured revolving credit facilities as of June 30, 2021, $400.0 million of borrowings as of June 30, 2020, and no borrowings under the senior secured revolving credit facilities as of December 31, 2020. Outstanding letters of credit under the senior secured revolving credit facilities totaled approximately $10 million, $13 million, and $11 million as of June 30, 2021, June 30, 2020, and December 31, 2020, respectively.

As of June 30, 2021, Mattel was in compliance with all covenants contained in the Credit Agreement. The Credit Agreement is a material agreement, and failure to comply with the covenants may result in an event of default under the terms of the senior secured revolving credit facilities. If Mattel were to default under the terms of the senior secured revolving credit facilities, its ability to meet its seasonal financing requirements could be adversely affected.

9.     Long-Term Debt

Long-term debt includes the following:

	June 30, 2021		June 30, 2020		December 31, 2020
	(In thousands)
2010 Senior Notes due October 2040	$	250,000	$	250,000	$	250,000
2011 Senior Notes due November 2041	300,000		300,000		300,000
2013 Senior Notes due March 2023	250,000		250,000		250,000
2017/2018 Senior Notes due December 2025	275,000		1,500,000		1,500,000
2019 Senior Notes due December 2027	600,000		600,000		600,000
2021 Senior Notes due April 2026	600,000		—		—
2021 Senior Notes due April 2029	600,000		—		—
Debt issuance costs and debt discount	(35,881)		(49,159)		(45,336)
	$	2,839,119	$	2,850,841	$	2,854,664

On March 19, 2021, Mattel issued (i) $600 million aggregate principal amount of 3.375% Senior Notes due 2026 (the "2026 Notes") and (ii) $600 million aggregate principal amount of 3.750% Senior Notes due 2029 (the "2029 Notes" and, together with the 2026 Notes, the "Notes"). The 2026 Notes will mature on April 1, 2026 and the 2029 Notes will mature on April 1, 2029, unless earlier redeemed in accordance with their respective terms. The Notes are guaranteed by Mattel’s existing and, subject to certain exceptions, future wholly owned domestic restricted subsidiaries that guarantee Mattel’s senior secured revolving credit facilities or certain other indebtedness.

The net proceeds from the offering, together with cash on hand, were used to redeem $1,225 million in aggregate principal amount of Mattel’s outstanding 6.750% Senior Notes due December 2025 (the "2025 Notes") and pay related prepayment premiums and transaction fees and expenses. As a result of the partial redemption of the 2025 Notes, Mattel incurred a loss on extinguishment of $83.2 million, comprised of $62.0 million of prepayment premium costs and a $21.2 million write-off of the unamortized debt issuance costs, which was recorded within interest expense in the consolidated statements of operations. Following completion of the partial redemption of the 2025 Notes, $275 million aggregate principal amount of the 2025 Notes remained outstanding.

On June 21, 2021, Mattel issued a conditional notice of redemption to holders of its 2025 Notes for the redemption of the remaining $275 million outstanding aggregate principal amount of the 2025 Notes on July 1, 2021 (the "Redemption Date") at a price equal to 105.063% of the principal amount of the 2025 Notes redeemed plus accrued and unpaid interest to, but excluding, the Redemption Date. The conditional notice was subject to the condition precedent that Mattel receive funds from the senior secured revolving credit facilities sufficient to consummate the redemption (the "Condition Precedent") and provided Mattel the right to delay the Redemption Date or modify or rescind such notice in the event the Condition Precedent was not satisfied or waived by the Redemption Date, which, consequently, gave Mattel the right to defer settlement of the 2025 Notes for a period greater than one year after June 30, 2021. The Condition Precedent was satisfied and Mattel fully redeemed the 2025 Notes on the Redemption Date using cash on hand and funds from the senior secured revolving credit facilities.

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10.     Other Noncurrent Liabilities

Other noncurrent liabilities include the following:

	June 30, 2021		June 30, 2020		December 31, 2020
	(In thousands)
Benefit plan liabilities	$	210,048	$	209,501	$	225,957
Deferred income tax liability	69,374		58,007		60,892
Noncurrent income tax payable	67,161		71,037		71,342

11.     Accumulated Other Comprehensive Income (Loss)

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

	For the Three Months Ended June 30, 2021
	Derivative Instruments		Available-for-Sale Security		Employee Benefit Plans		Currency Translation Adjustments		Total
	(In thousands)
Accumulated Other Comprehensive Loss, Net of Tax, as of March 31, 2021	$	(7,998)	$	(5,558)	$	(184,506)	$	(762,964)	$	(961,026)
Other comprehensive (loss) income before reclassifications	(771)		1,268		(254)		20,932		21,175
Amounts reclassified from accumulated other comprehensive loss	2,060		—		2,475		—		4,535
Net increase in other comprehensive (loss) income	1,289		1,268		2,221		20,932		25,710
Accumulated Other Comprehensive Loss, Net of Tax, as of June 30, 2021	$	(6,709)	$	(4,290)	$	(182,285)	$	(742,032)	$	(935,316)

	For the Six Months Ended June 30, 2021
	Derivative Instruments		Available-for-Sale Security		Employee Benefit Plans		Currency Translation Adjustments		Total
	(In thousands)
Accumulated Other Comprehensive Loss, Net of Tax, as of December 31, 2020	$	(15,369)	$	(7,522)	$	(186,854)	$	(734,831)	$	(944,576)
Other comprehensive income (loss) before reclassifications	9,331		3,232		(259)		(7,201)		5,103
Amounts reclassified from accumulated other comprehensive loss	(671)		—		4,828		—		4,157
Net increase (decrease) in other comprehensive income (loss)	8,660		3,232		4,569		(7,201)		9,260
Accumulated Other Comprehensive Loss, Net of Tax, as of June 30, 2021	$	(6,709)	$	(4,290)	$	(182,285)	$	(742,032)	$	(935,316)

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	For the Three Months Ended June 30, 2020
	Derivative Instruments		Available-for-Sale Security		Employee Benefit Plans		Currency Translation Adjustments		Total
	(In thousands)
Accumulated Other Comprehensive Income (Loss), Net of Tax, as of March 31, 2020	$	17,021	$	(8,065)	$	(166,797)	$	(848,042)	$	(1,005,883)
Other comprehensive income (loss) before reclassifications	2,594		(80)		(1,203)		26,843		28,154
Amounts reclassified from accumulated other comprehensive income (loss)	(1,589)		—		1,721		—		132
Net increase (decrease) in other comprehensive income (loss)	1,005		(80)		518		26,843		28,286
Accumulated Other Comprehensive Income (Loss), Net of Tax, as of June 30, 2020	$	18,026	$	(8,145)	$	(166,279)	$	(821,199)	$	(977,597)

	For the Six Months Ended June 30, 2020
	Derivative Instruments		Available-for-Sale Security		Employee Benefit Plans		Currency Translation Adjustments		Total
	(In thousands)
Accumulated Other Comprehensive Income (Loss), Net of Tax, as of December 31, 2019	$	11,041	$	(8,260)	$	(169,857)	$	(702,408)	$	(869,484)
Other comprehensive income (loss) before reclassifications	16,022		115		499		(118,791)		(102,155)
Amounts reclassified from accumulated other comprehensive income (loss)	(9,037)		—		3,079		—		(5,958)
Net increase (decrease) in other comprehensive income (loss)	6,985		115		3,578		(118,791)		(108,113)
Accumulated Other Comprehensive Income (Loss), Net of Tax, as of June 30, 2020	$	18,026	$	(8,145)	$	(166,279)	$	(821,199)	$	(977,597)

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

	For the Three Months Ended
	June 30, 2021		June 30, 2020		Statements of Operations Classification
	(In thousands)
Derivative Instruments
(Loss) gain on foreign currency forward exchange and other contracts	$	(1,969)	$	1,512	Cost of sales
Tax effect of net (loss) gain	(91)		77		Provision for income taxes
	$	(2,060)	$	1,589	Net loss
Employee Benefit Plans
Amortization of prior service credit (a)	$	390	$	466	Other non-operating expense (income), net
Recognized actuarial loss (a)	(2,773)		(2,337)		Other non-operating expense (income), net
	(2,383)		(1,871)
Tax effect of net (loss) gain	(92)		150		Provision for income taxes
	$	(2,475)	$	(1,721)	Net loss

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	For the Six Months Ended
	June 30, 2021		June 30, 2020		Statements of Operations Classification
	(In thousands)
Derivative Instruments
Gain on foreign currency forward exchange and other contracts	$	870	$	8,942	Cost of sales
Tax effect of net (loss) gain	(199)		95		Provision for income taxes
	$	671	$	9,037	Net loss
Employee Benefit Plans
Amortization of prior service credit (a)	$	789	$	932	Other non-operating expense (income), net
Recognized actuarial loss (a)	(5,555)		(4,677)		Other non-operating expense (income), net
	(4,766)		(3,745)
Tax effect of net (loss) gain	(62)		666		Provision for income taxes
	$	(4,828)	$	(3,079)	Net loss

_______________________________________

(a)The amortization of prior service credit and recognized actuarial loss are included in the computation of net periodic benefit cost. Refer to "Note 16 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 U.S. dollar. The translation of its net investments in subsidiaries with non-U.S. dollar functional currencies subjects Mattel to the impact of foreign currency exchange rate fluctuations in its results of operations and financial position. Assets and liabilities of subsidiaries with non-U.S. dollar functional currencies are translated into U.S. dollars at fiscal period-end exchange rates. Income and expense items are translated at weighted-average exchange rates prevailing during the fiscal period. The resulting currency translation adjustments are recorded as a component of accumulated other comprehensive loss within stockholders' equity. Currency translation adjustments resulted in a net loss of $7.2 million for the six months ended June 30, 2021, primarily due to the weakening of the Turkish lira against the U.S. dollar. Currency translation adjustments resulted in a net loss of $118.8 million for the six months ended June 30, 2020, primarily due to the weakening of the Mexican peso, Brazilian real, British pound sterling, and the Russian ruble against the U.S. dollar.

12.     Foreign Currency Transaction Exposure

Currency exchange rate fluctuations impact Mattel's results of operations and cash flows. Mattel's currency transaction exposures include gains and losses realized on unhedged inventory purchases and unhedged receivables and payables balances that are denominated in a currency other than the applicable functional currency. Gains and losses on unhedged inventory purchases and other transactions associated with operating activities are recorded in the components of operating income (loss) in the consolidated statements of operations. Gains and losses on unhedged intercompany loans and advances are recorded as a component of other non-operating expense (income), net in the consolidated statements of operations in the period in which the currency exchange rate changes. Inventory transactions denominated in the Euro, Mexican peso, Australian dollar, British pound sterling, Canadian dollar, Russian ruble, and Brazilian real were the primary transactions that caused foreign currency transaction exposure for Mattel during the six months ended June 30, 2021.

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

	For the Three Months Ended
	June 30, 2021		June 30, 2020		Statements of Operations Classification
	(In thousands)
Currency transaction gains (losses)	$	1,069	$	(4,328)	Operating income/loss
Currency transaction (losses)	(1,501)		(1,603)		Other non-operating income/expense, net
Currency transaction (losses), net	$	(432)	$	(5,931)

	For the Six Months Ended
	June 30, 2021		June 30, 2020		Statements of Operations Classification
	(In thousands)
Currency transaction (losses)	$	(2,503)	$	(5,917)	Operating income/loss
Currency transaction (losses)	(4,809)		(2,435)		Other non-operating income/expense, net
Currency transaction (losses), net	$	(7,312)	$	(8,352)

13.     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 (loss) ("OCI"). Realized gains and losses for these contracts are recorded in the consolidated statements of operations in the period in which the inventory is sold to customers. Mattel uses foreign currency forward exchange contracts to hedge intercompany loans and advances denominated in foreign currencies. Due to the short-term nature of the contracts involved, Mattel does not use hedge accounting for these contracts, and as such, changes in fair value are recorded in the period of change in the consolidated statements of operations. Mattel utilizes derivative contracts to hedge certain purchases of commodities, which were not material. As of June 30, 2021, June 30, 2020, and December 31, 2020, Mattel held foreign currency forward exchange contracts and other commodity derivative instruments, with notional amounts of $1.29 billion, $1.17 billion, and $855.0 million, respectively.

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The following tables present Mattel's derivative assets and liabilities:

	Derivative Assets
	Balance Sheet Classification	Fair Value
		June 30, 2021		June 30, 2020		December 31, 2020
		(In thousands)
Derivatives designated as hedging instruments
Foreign currency forward exchange and other contracts	Prepaid expenses and other current assets	$	5,405	$	11,731	$	3,641
Foreign currency forward exchange and other contracts	Other noncurrent assets	1,774		1,237		50
Total derivatives designated as hedging instruments		$	7,179	$	12,968	$	3,691
Derivatives not designated as hedging instruments
Foreign currency forward exchange and other contracts	Prepaid expenses and other current assets	$	1,624	$	786	$	1,982
Foreign currency forward exchange and other contracts	Other noncurrent assets	—		—		38
Total derivatives not designated as hedging instruments		$	1,624	$	786	$	2,020
		$	8,803	$	13,754	$	5,711
	Derivative Liabilities
	Balance Sheet Classification	Fair Value
		June 30, 2021		June 30, 2020		December 31, 2020
		(In thousands)
Derivatives designated as hedging instruments
Foreign currency forward exchange and other contracts	Accrued liabilities	$	10,774	$	1,973	$	20,330
Foreign currency forward exchange and other contracts	Other noncurrent liabilities	270		1,241		4,361
Total derivatives designated as hedging instruments		$	11,044	$	3,214	$	24,691
Derivatives not designated as hedging instruments
Foreign currency forward exchange and other contracts	Accrued liabilities	$	5,187	$	5,280	$	803
Foreign currency forward exchange and other contracts	Other noncurrent liabilities	—		185		—
Total derivatives not designated as hedging instruments		$	5,187	$	5,465	$	803
		$	16,231	$	8,679	$	25,494

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

	Derivatives Designated As Hedging Instruments
	For the Three Months Ended
	June 30, 2021		June 30, 2020		Statements of Operations Classification
	(In thousands)
Foreign currency forward exchange contracts:
Amount of (losses) gains recognized in OCI	$	(771)	$	2,594
Amount of (losses) gains reclassified from accumulated OCI to consolidated statements of operations	(2,060)		1,589		Cost of sales

	Derivatives Designated As Hedging Instruments
	For the Six Months Ended
	June 30, 2021		June 30, 2020		Statements of Operations Classification
	(In thousands)
Foreign currency forward exchange contracts:
Amount of gains recognized in OCI	$	9,331	$	16,022
Amount of gains reclassified from accumulated OCI to consolidated statements of operations	671		9,037		Cost of sales

The net (losses) gains reclassified from accumulated other comprehensive loss to the consolidated statements of operations during the three and six months ended June 30, 2021 and 2020, respectively, were offset by the changes in cash flows associated with the underlying hedged transactions.

	Derivatives Not Designated As Hedging Instruments
	For the Three Months Ended
	June 30, 2021		June 30, 2020		Statements of Operations Classification
	(In thousands)
Amount of net gains recognized in the Statements of Operations
Foreign currency forward exchange and other contract gains	$	7,673	$	8,121	Other non-operating expense (income), net
Foreign currency forward exchange and other contract gains	—		—		Cost of sales
	$	7,673	$	8,121

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	Derivatives Not Designated As Hedging Instruments
	For the Six Months Ended
	June 30, 2021		June 30, 2020		Statements of Operations Classification
	(In thousands)
Amount of net losses recognized in the Statements of Operations
Foreign currency forward exchange and other contract (losses)	$	(963)	$	(30,247)	Other non-operating expense (income), net
Foreign currency forward exchange and other contract gains	639		—		Cost of sales
	$	(324)	$	(30,247)

The net losses recognized in the consolidated statements of operations during the three and six months ended June 30, 2021 and June 30, 2020, respectively, were offset by foreign currency transaction gains and losses on the related hedged balances.

14.     Fair Value Measurements

The following tables present information about Mattel's assets and liabilities measured and reported in the financial statements at fair value on a recurring basis as of June 30, 2021, June 30, 2020, and December 31, 2020 and indicate the fair value hierarchy of the valuation techniques utilized to determine such fair value. The three levels of the fair value hierarchy are as follows:

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

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

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

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Mattel's financial assets and liabilities include the following:

	June 30, 2021
	Level 1		Level 2		Level 3		Total
	(In thousands)
Assets:
Foreign currency forward exchange contracts and other (a)	$	—	$	8,803	$	—	$	8,803
Available-for-sale (b)	7,500		—		—		7,500
Total assets	$	7,500	$	8,803	$	—	$	16,303
Liabilities:
Foreign currency forward exchange contracts and other (a)	$	—	$	16,231	$	—	$	16,231
	June 30, 2020
	Level 1		Level 2		Level 3		Total
	(In thousands)
Assets:
Foreign currency forward exchange contracts and other (a)	$	—	$	13,754	$	—	$	13,754
Available-for-sale (b)	3,645		—		—		3,645
Total assets	$	3,645	$	13,754	$	—	$	17,399
Liabilities:
Foreign currency forward exchange contracts and other (a)	$	—	$	8,679	$	—	$	8,679
	December 31, 2020
	Level 1		Level 2		Level 3		Total
	(In thousands)
Assets:
Foreign currency forward exchange contracts and other (a)	$	—	$	5,711	$	—	$	5,711
Available-for-sale (b)	4,268		—		—		4,268
Total assets	$	4,268	$	5,711	$	—	$	9,979
Liabilities:
Foreign currency forward exchange contracts and other (a)	$	—	$	25,494	$	—	$	25,494

 ____________________________________________

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

(b)The fair value of the available-for-sale security is based on the quoted price on an active public exchange.

Other Financial Instruments

Mattel's financial instruments include cash and equivalents, accounts receivable and payable, accrued liabilities, short-term borrowings, and long-term debt. The fair values of these instruments, excluding long-term debt, approximate their carrying values because of their short-term nature. Cash and equivalents are classified as Level 1 and all other financial instruments are classified as Level 2 within the fair value hierarchy.

The estimated fair value of Mattel's long-term debt was $3.09 billion (compared to a carrying value of $2.88 billion) as of June 30, 2021, $2.87 billion (compared to a carrying value of $2.90 billion) as of June 30, 2020, and $3.11 billion (compared to a carrying value of $2.90 billion) as of December 31, 2020. 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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15.     Earnings Per Share

The following table reconciles basic and diluted earnings per common share for the three and six months ended June 30, 2021 and 2020: 

	For the Three Months Ended				For the Six Months Ended
	June 30, 2021		June 30, 2020		June 30, 2021		June 30, 2020
	(In thousands, except per share amounts)
Basic:
Net loss	$	(5,537)	$	(111,109)	$	(117,922)	$	(316,812)
Weighted-average number of common shares	349,441		346,875		349,244		346,778
Basic net loss per common share	$	(0.02)	$	(0.32)	$	(0.34)	$	(0.91)
Diluted:
Net loss	$	(5,537)	$	(111,109)	$	(117,922)	$	(316,812)
Weighted-average number of common shares	349,441		346,875		349,244		346,778
Dilutive stock options and restricted stock units ("RSUs") (a)	—		—		—		—
Weighted-average number of common and potential common shares	349,441		346,875		349,244		346,778
Diluted net loss per common share	$	(0.02)	$	(0.32)	$	(0.34)	$	(0.91)

 _______________________________________

(a)Mattel was in a net loss position for the three and six months ended June 30, 2021 and 2020, and, accordingly, all outstanding nonqualified stock options and RSUs were excluded from the calculation of diluted net loss per common share because their effect would be antidilutive.

16.    Employee Benefit Plans

Mattel and certain of its subsidiaries have qualified and nonqualified retirement plans covering substantially all employees of these companies, which are more fully described in Part II, Item 8 "Financial Statements and Supplementary Data—Note 4 to the Consolidated Financial Statements–Employee Benefit Plans" in the 2020 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				For the Six Months Ended
	June 30, 2021		June 30, 2020		June 30, 2021		June 30, 2020
	(In thousands)				(In thousands)
Service cost	$	1,293	$	1,112	$	2,586	$	2,221
Interest cost	2,530		3,737		5,070		7,518
Expected return on plan assets	(4,637)		(4,902)		(9,264)		(9,823)
Amortization of prior service cost	119		43		230		86
Recognized actuarial loss	2,775		2,356		5,560		4,715
	$	2,080	$	2,346	$	4,182	$	4,717

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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				For the Six Months Ended
	June 30, 2021		June 30, 2020		June 30, 2021		June 30, 2020
	(In thousands)				(In thousands)
Interest cost	$	19	$	35	$	39	$	70
Amortization of prior service credit	(509)		(509)		(1,019)		(1,018)
Recognized actuarial gain	(2)		(19)		(5)		(38)
	$	(492)	$	(493)	$	(985)	$	(986)

During the six months ended June 30, 2021, Mattel made cash contributions totaling approximately $4 million related to its defined benefit pension and postretirement benefit plans. During the remainder of 2021, Mattel expects to make additional cash contributions of approximately $13 million.

17.     Share-Based Payments

Mattel has various stock compensation plans, which are more fully described in Part II, Item 8 "Financial Statements and Supplementary Data—Note 8 to the Consolidated Financial Statements—Share-Based Payments" in the 2020 Annual Report on Form 10-K. Under the Mattel, Inc. Amended and Restated 2010 Equity and Long-Term Compensation Plan, Mattel has the ability to grant nonqualified stock options, incentive stock options, stock appreciation rights, restricted stock, RSUs, performance awards, dividend equivalent rights, and shares of common stock to officers, employees, and other persons providing services to Mattel. Stock options are granted with exercise prices at the fair market value of Mattel's common stock on the applicable grant date and expire no later than ten years from the date of grant. Stock options, RSUs, and performance awards generally provide for vesting over, or at the end of, a period of three years from the date of grant.

As of June 30, 2021, three long-term incentive programs were in place with the following performance cycles: (i) a January 1, 2019–December 31, 2021 performance cycle, (ii) a January 1, 2020–December 31, 2022 performance cycle, and (iii) a January 1, 2021–December 31, 2023 performance cycle.

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

	For the Three Months Ended				For the Six Months Ended
	June 30, 2021		June 30, 2020		June 30, 2021		June 30, 2020
	(In thousands)
Stock option compensation expense	$	2,662	$	2,376	$	5,444	$	5,507
RSU compensation expense	7,673		6,588		14,031		13,950
Performance award compensation expense	4,833		174		10,805		3,957
	$	15,168	$	9,138	$	30,280	$	23,414

As of June 30, 2021, total unrecognized compensation expense related to unvested share-based payments totaled $66.7 million and is expected to be recognized over a weighted-average period of 1.9 years.

Mattel uses treasury shares purchased under its share repurchase program to satisfy stock option exercises and the vesting of RSUs and performance awards. For the six months ended June 30, 2021, cash received for stock option exercises was $3.3 million. For the six months ended June 30, 2020, no cash was received for stock option exercises.

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18.     Other Selling and Administrative Expenses

Other selling and administrative expenses include the following:

	For the Three Months Ended				For the Six Months Ended
	June 30, 2021		June 30, 2020		June 30, 2021		June 30, 2020
	(In thousands)
Design and development	$	46,747	$	46,486	$	90,728	$	91,113
Identifiable intangible asset amortization	9,544		9,687		19,058		19,652

19.     Restructuring Charges

Optimizing for Growth (formerly Capital Light)

On February 9, 2021, Mattel announced the Optimizing for Growth program, a multi-year cost savings program which integrates and expands upon the previously announced Capital Light program (the "Program").

In connection with the Program, Mattel recorded severance and other restructuring costs in the following cost and expense categories within the consolidated statements of operations:

	For the Three Months Ended				For the Six Months Ended
	June 30, 2021		June 30, 2020		June 30, 2021		June 30, 2020
	(In thousands)
Cost of sales (a)	$	(151)	$	1,407	$	1,782	$	4,464
Other selling and administrative expenses (b)	11,444		1,374		17,154		4,120
	$	11,293	$	2,781	$	18,936	$	8,584

 _______________________________________

(a)Severance and other restructuring costs recorded within cost of sales in the consolidated statements of operations include charges associated with the consolidation of manufacturing facilities.

(b)Severance and other restructuring costs recorded within other selling and administrative expenses in the consolidated statements of operations are included in corporate and other expense in "Note 22 to the Consolidated Financial Statements—Segment Information."

The following table summarizes Mattel's severance and other restructuring charges activity related to the Program for the six months ended June 30, 2021:

	Liability at December 31, 2020		Charges (a)		Payments/Utilization		Liability at June 30, 2021
	(In thousands)
Severance	$	5,294	$	10,374	$	(4,537)	$	11,131
Other restructuring charges	30		8,562		(5,417)		3,175
	$	5,324	$	18,936	$	(9,954)	$	14,306

 _______________________________________

(a)Other restructuring charges consist primarily of charges associated with the consolidation of manufacturing facilities and commercial and corporate functions.

As of June 30, 2021, Mattel has recorded cumulative severance and other restructuring charges related to the Program of approximately $69 million, which include approximately $18 million of non-cash charges. Furthermore, cumulatively, in conjunction with previous actions taken under the Program, total expected cash expenditures are approximately $140 to $165 million and total expected non-cash charges are $40 to $45 million.

During the three months ended March 31, 2021, in conjunction with the Program, Mattel completed the sale of a manufacturing plant based in Mexico, which included land and buildings, resulting in a pre-tax gain of $15.8 million.

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Other Cost Savings Actions

During the first half of 2020, Mattel recorded severance charges of approximately $15 million, primarily related to actions taken to further streamline its organizational structure.

20.     Income Taxes

Mattel's provision for income taxes was $20.6 million and $40.9 million for the three and six months ended June 30, 2021, respectively, and $12.8 million and $24.7 million for the three and six months ended June 30, 2020, respectively. During the three and six months ended June 30, 2021, Mattel recognized a net discrete tax expense of $12.2 million and discrete tax expense of $19.5 million, respectively, primarily related to income taxes recorded on a discrete basis in various jurisdictions, tax rate changes impacting deferred tax assets and reassessments of prior year's tax liabilities. During the three and six months ended June 30, 2020, Mattel recognized a net discrete tax expense of $3.2 million and $9.6 million, respectively, primarily related to income taxes recorded on a discrete basis in various jurisdictions and reassessments of prior years' tax liabilities. As a result of the establishment of a valuation allowance on U.S. deferred tax assets in 2017, there was no U.S. tax benefit provided for U.S. losses during the six months ended June 30, 2021 or 2020.

Evaluating the need for and the amount of a valuation allowance for deferred tax assets often requires significant judgment and extensive analysis of all available evidence to determine whether it is more-likely-than-not that these assets will be realized. Mattel maintains a valuation allowance on its deferred tax assets until there is sufficient evidence to support the release of all or some portion of these allowances. Release of the valuation allowance would result in the recognition of a portion of these deferred tax assets and a decrease to income tax expense for the period the release is recorded. However, the exact timing and amount, if any, of the valuation allowance release are subject to change depending on the level of earnings that Mattel is able to achieve in the tax jurisdictions in which a valuation allowance has been recorded.

In the normal course of business, Mattel is regularly audited by federal, state, and foreign tax authorities. Based on the current status of federal, state, and foreign audits, Mattel believes it is reasonably possible that in the next twelve months, the total unrecognized tax benefits could decrease by approximately $35.8 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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21.     Contingencies

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 before the 15th Civil Court of Curitiba – State of Parana (the "Trial Court"), requesting the annulment of its security bonds and promissory notes given to Mattel do Brasil as well as requesting the Trial 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, 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.

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. Additionally, the court-appointed expert calculated a loss of profits compensation of approximately $1 million. 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 to the Court of Appeals of the State of Parana (the "Appeals Court"), 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 Trial Court upheld Mattel do Brasil's counterclaim and ordered Yellowstone to pay Mattel do Brasil approximately $4 million. 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 with the Appeals Court. 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 $17 million in damages, plus attorney's fees, as adjusted for inflation and interest. The Appeals Court also awarded Mattel do Brasil approximately $7.5 million on its counterclaim, as adjusted for inflation. On August 2, 2013, Mattel do Brasil filed a motion with the Appeals Court for clarification since the written decision contained clear errors in terms of amounts awarded and interest and inflation adjustments. Mattel do Brasil's motion also asked the Appeals Court to decide whether Yellowstone’s award could be offset by the counterclaim award, despite Yellowstone's status as a bankrupt entity. Yellowstone also filed a motion for clarification on August 5, 2013. A decision on the clarification motions was rendered on November 11, 2014, and the Appeals Court accepted partially the arguments raised by Mattel do Brasil. As a result, the Appeals Court awarded Yellowstone approximately $14.5 million in damages, as adjusted for inflation and interest, plus attorney's fees. The Appeals Court also awarded Mattel do Brasil approximately $7.5 million on its counterclaim, as adjusted for inflation. The decision also recognized the existence of legal rules that support Mattel do Brasil's right to offset its counterclaim award of approximately $7.5 million. Mattel do Brasil filed a new motion for clarification with the Appeals Court on January 21, 2015, due to the incorrect statement made by the reporting judge of the Appeals Court, that the court-appointed expert analyzed the "accounting documents" of Yellowstone. On April 26, 2015, a decision on the motion for clarification was rendered. The Appeals Court ruled that the motion for clarification was denied and imposed a fine on Mattel do Brasil equal to 1% of the value of the claims made for the delay caused by the motion. On July 3, 2015, Mattel do Brasil filed a special appeal to the Superior Court of Justice based upon both procedural and substantive grounds. This special appeal sought to reverse the Appeals Court's decision of July 26, 2013, and to reverse the fine as inappropriate under the law. This special appeal was submitted to the Appeals Court.

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Yellowstone also filed a special appeal with the Appeals Court in February 2015, which was made available to Mattel do Brasil on October 7, 2015. Yellowstone's special appeal sought to reverse the Appeals Court decision with respect to: (a) the limitation on Yellowstone's loss of profits claim to the amount requested in the complaint, instead of the amount contained in the first court-appointed experts report, and (b) the award of damages to Mattel do Brasil on the counterclaim, since the specific amount was not requested in Mattel do Brasil's counterclaim brief.

On October 19, 2015, Mattel do Brasil filed its answer to the special appeal filed by Yellowstone and Yellowstone filed its answer to the special appeal filed by Mattel do Brasil. On April 4, 2016, the Appeals Court rendered a decision denying the admissibility of Mattel's and Yellowstone's special appeals. On May 11, 2016, both Mattel and Yellowstone filed interlocutory appeals.

On August 31, 2017, the reporting justice for the Appeals Court denied Yellowstone’s interlocutory appeal. As to Mattel, the reporting justice reversed the fine referenced above that had been previously imposed on Mattel for filing a motion for clarification. However, the reporting justice rejected Mattel’s arguments on the merits of Yellowstone’s damages claims. On September 22, 2017, Mattel filed a further appeal to the full panel of five appellate justices to challenge the merits of Yellowstone's damages claims. Yellowstone did not file a further appeal.

In April 2018, Mattel do Brasil entered into a settlement agreement to resolve this matter, but the settlement was later rejected by the courts, subject to a pending appeal by Mattel.

On October 2, 2018, the Appeals Court rejected Mattel's merits appeal, and affirmed the prior rulings in favor of Yellowstone. In October 2019, Mattel reached an agreement with Yellowstone's former counsel regarding payment of the attorney's fees portion of the judgment. In November 2019, Yellowstone initiated an action to enforce its judgment against Mattel, but did not account for an offset for Mattel's counterclaim. On January 27, 2020, Mattel obtained an injunction, staying Yellowstone's enforcement action pending resolution of Mattel's appeal to enforce the parties' April 2018 settlement. As of June 30, 2021, Mattel assessed its probable loss related to the Yellowstone matter and has accrued a reserve, which was not material.

Litigation Related to the Fisher-Price Rock 'n Play Sleeper

A number of putative class action lawsuits are pending against Fisher-Price, Inc. and/or Mattel, Inc. asserting claims for false advertising, negligent product design, breach of warranty, fraud, and other claims in connection with the marketing and sale of the Fisher-Price Rock 'n Play Sleeper (the "Sleeper"). In general, the lawsuits allege that the Sleeper should not have been marketed and sold as safe and fit for prolonged and overnight sleep for infants. The putative class action lawsuits propose nationwide and over 15 statewide consumer classes comprised of those who purchased the Sleeper as marketed as safe for prolonged and overnight sleep. The class actions have been consolidated before a single judge for pre-trial purposes pursuant to the federal courts’ Multi-District Litigation program.

Forty-one additional lawsuits are pending against Fisher-Price, Inc. and Mattel, Inc. alleging that a product defect in the Sleeper caused the fatalities of or injuries to forty-five children. Several lawsuits have been settled and/or dismissed. Additionally, Fisher-Price, Inc. and/or Mattel, Inc. have also received letters from lawyers purporting to represent additional plaintiffs who are threatening to assert similar claims.

In addition, a stockholder has filed a derivative action in the Court of Chancery for the State of Delaware (Kumar v. Bradley, et al., filed July 7, 2020) alleging breach of fiduciary duty and unjust enrichment related to the development, marketing, and sale of the Sleeper. The defendants in the derivative action are certain of Mattel's current and former officers and directors. In August 2020, the derivative action was stayed pending further developments in the class action lawsuits.

The lawsuits seek compensatory damages, punitive damages, statutory damages, restitution, disgorgement, attorneys’ fees, costs, interest, declaratory relief, and/or injunctive relief. Mattel believes that the allegations in the lawsuits are without merit and intends to vigorously defend against them.

A reasonable estimate of the amount of any possible loss or range of loss cannot be made at this time.

Litigation and Investigations Related to Whistleblower Letter

In December 2019 and January 2020, two stockholders filed separate complaints styled as class actions against Mattel, Inc., and certain of its current and former officers, alleging violations of federal securities laws. The complaints rely on the results of an investigation announced by Mattel in October 2019 regarding allegations in a whistleblower letter and claim that Mattel misled the market in several of its financial statements beginning in the third quarter of 2017. The lawsuits allege that the defendants' conduct caused the plaintiff and other stockholders to purchase Mattel common stock at artificially inflated prices.

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In addition, a stockholder has filed a derivative action in the United States District Court for the District of Delaware (Moher v. Kreiz, et al., filed April 9, 2020) making allegations that are substantially identical to, or are based upon, the allegations of the class action lawsuits. The defendants in the derivative action are certain of Mattel's current and former officers and directors, Mattel, Inc., and PricewaterhouseCoopers LLP. Subsequently, a nearly identical derivative action was filed by a different stockholder against the same defendants. The second lawsuit is styled as an amended complaint and replaces a complaint making unrelated allegations in a previously filed lawsuit already pending in Delaware federal court (Lombardi v. Kreiz, et al., amended complaint filed April 16, 2020). In May 2020, the Moher and Lombardi derivative actions were consolidated and stayed pending further developments in the class action lawsuits. In June 2021, a third similar derivative action was filed in the United States District Court for the District of Delaware (Chagnon v. Kreiz, et al., filed June 22, 2021). Three additional derivative actions asserting similar claims are also pending in Delaware Chancery Court (Owen v. Euteneuer, et al., filed May 12, 2021; Andersen v. Georgiadis, et al., filed May 18, 2021; and Armon v. Euteneuer, et al., filed June 29, 2021).

The lawsuits seek unspecified compensatory damages, attorneys' fees, expert fees, costs and/or injunctive relief. Mattel believes that the allegations in the lawsuits are without merit and intends to vigorously defend against them. A reasonable estimate of the amount of any possible loss or range of loss cannot be made at this time.

Mattel has also received subpoenas from the Securities and Exchange Commission (the "SEC") seeking documents related to the whistleblower letter and subsequent investigation, and is responding to those subpoenas. Mattel is also responding to requests from the United States Attorney's Office for the Southern District of New York ("SDNY") related to this matter. Mattel cannot predict the eventual scope, duration or outcome of potential legal action by the SEC or SDNY, if any, or whether any such action could have a material impact on Mattel's financial condition, results of operations or cash flows.

22.     Segment Information

Mattel designs, manufactures, and markets a broad variety of toy products worldwide, which are sold to its customers and directly to consumers.

Segment Data

Mattel's operating segments are: (i) North America, which consists of the U.S. and Canada; (ii) International; and (iii) American Girl. The North America and International segments sell products across categories, although some products are developed and adapted for particular international markets.

The following tables present information regarding net sales, operating income (loss), and assets by segment. The corporate and other expense category includes operating costs not allocated to individual segments, including charges related to incentive and share-based compensation, corporate headquarters functions managed on a worldwide basis, the impact of changes in foreign currency exchange rates on intercompany transactions, and certain severance and other restructuring costs. The prior period presentation of operating income by segment and assets by segment has been conformed to the current period's presentation.

It is impracticable for Mattel to present net sales by categories, brands, or products, as trade discounts and other allowances are generally recorded in the financial accounting systems by customer.

	For the Three Months Ended				For the Six Months Ended
	June 30, 2021		June 30, 2020		June 30, 2021		June 30, 2020
	(In thousands)
Net Sales by Segment
North America	$	560,830	$	432,892	$	1,040,489	$	720,446
International	424,897		271,065		774,252		540,421
American Girl	40,639		28,179		85,817		65,339
Net sales	$	1,026,366	$	732,136	$	1,900,558	$	1,326,206

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	For the Three Months Ended				For the Six Months Ended
	June 30, 2021		June 30, 2020		June 30, 2021		June 30, 2020
	(In thousands)
Operating Income (Loss) by Segment
North America (a)	$	149,600	$	81,838	$	274,451	$	98,686
International (a)	50,758		(4,420)		87,018		(31,444)
American Girl	(9,725)		(13,886)		(19,290)		(30,987)
	190,633		63,532		342,179		36,255
Corporate and other expense (b)	(141,493)		(111,610)		(259,168)		(229,105)
Operating Income (Loss)	49,140		(48,078)		83,011		(192,850)
Interest expense	38,144		49,615		168,627		98,595
Interest (income)	(584)		(1,025)		(1,403)		(3,108)
Other non-operating expense (income), net	533		2,662		(555)		5,684
Income (Loss) Before Income Taxes	$	11,047	$	(99,330)	$	(83,658)	$	(294,021)

_______________________________________

(a)Segment operating income (loss) included severance and restructuring expenses of $(0.2) million and $1.8 million, for the three and six months ended June 30, 2021, respectively, and $1.4 million and $4.5 million, for the three and six months ended June 30, 2020, respectively, which were allocated to the North America and International segments.

(b)Corporate and other expense included severance and restructuring charges of $10.7 million and $16.5 million, for the three and six months ended June 30, 2021, respectively, and $16.2 million and $23.8 million, for the three and six months ended June 30, 2020, respectively. Corporate and other expense also included expenses related to inclined sleeper product recall litigation of $6.8 million and $12.1 million for the three and six months ended June 30, 2021, respectively, and $2.9 million and $9.1 million, for the three and six months ended June 30, 2020, respectively, and incentive and share-based compensation for all periods presented.

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

	June 30, 2021		June 30, 2020		December 31, 2020
	(In thousands)
Assets by Segment
North America	$	686,959	$	615,180	$	658,404
International	644,450		528,510		715,043
American Girl	51,453		47,028		40,414
	1,382,862		1,190,718		1,413,861
Corporate and other	219,259		187,648		148,579
Accounts receivable and inventories, net	$	1,602,121	$	1,378,366	$	1,562,440

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Geographic Information

The table below presents information by geographic area. Net sales are attributed to countries based on location of the customer.

	For the Three Months Ended				For the Six Months Ended
	June 30, 2021		June 30, 2020		June 30, 2021		June 30, 2020
	(In thousands)
Net Sales by Geographic Area
North America	$	601,469	$	461,071	$	1,126,306	$	785,785
International
EMEA	246,816		151,948		484,985		325,271
Latin America	92,477		57,719		148,755		108,994
Asia Pacific	85,604		61,398		140,512		106,156
Total International	424,897		271,065		774,252		540,421
Net sales	$	1,026,366	$	732,136	$	1,900,558	$	1,326,206

23.     New Accounting Pronouncements

Recently Adopted Accounting Pronouncements

In December 2019, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, which simplifies the accounting for incomes taxes by removing certain exceptions to the general principles in Topic 740. The amendments also improve consistent application of and simplify the accounting for other areas of Topic 740 by clarifying and amending existing guidance. The amendments related to changes in ownership of foreign equity method investments or foreign subsidiaries are applied on a modified retrospective basis through a cumulative effect adjustment to retained earnings as of the beginning of the fiscal year of adoption. The amendments related to franchise taxes that are partially based on income are applied on either a retrospective basis for all periods presented or a modified retrospective basis through a cumulative effect adjustment to retained earnings as of the beginning of the fiscal year of adoption. All other amendments are applied on a prospective basis. Mattel adopted ASU 2019-12 on January 1, 2021. The adoption of this new accounting standard did not have a material impact on Mattel's consolidated financial statements.

Accounting Pronouncements Not Yet Adopted

In March 2020 and January 2021, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting and ASU 2021-01, Reference Rate Reform (Topic 848): Scope, respectively. ASU 2020-04 and ASU 2021-01 provide optional expedients and exceptions for applying U.S. GAAP, to contracts, hedging relationships, and other transactions that reference the London Interbank Offered Rate or another reference rate expected to be discontinued because of reference rate reform, if certain criteria are met. The guidance in ASU 2020- 04 and ASU 2021-01 was effective upon issuance and, once adopted, may be applied prospectively to contract modifications and hedging relationships through December 31, 2022. Mattel is currently evaluating the impact of the adoption of ASU 2020-04 and ASU 2021-01 on its consolidated financial statements.

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24. Revision for Immaterial Misstatements

As disclosed in Note 1, during the quarter ended June 30, 2021, Mattel identified misstatements for inventory tooling expenses that should have first been capitalized into inventory and a misstatement related to the timing of disbursements for certain capital expenditures that resulted in a cash flow misclassification between operating activities and investing activities. Although Mattel concluded that these misstatements were not material, either individually or in aggregate, to its current or previously issued consolidated financial statements, Mattel has elected to revise its previously issued consolidated financial statements to correct for these misstatements. In connection with such revision, Mattel is also correcting for other previously identified immaterial misstatements that were previously corrected for as out of period adjustments in the period of identification.

Due to certain misstatements originating prior to 2018, the opening retained earnings balance as of January 1, 2018 was understated by $25.1 million, primarily due to the net impact of the tooling misstatement of $37.2 million, partially offset by other previously identified misstatements of $12.1 million. Such previously identified misstatements were previously corrected for as out of period adjustments and included the improper revenue recognition for certain licensing contracts executed prior to 2018 and the understatement of depreciation expense for certain fixed assets. Similarly, the opening retained earnings balance as of January 1, 2020 was understated by $16.9 million, which principally included the net impact of the tooling misstatement and an over-accrual of advertising costs.

The revision also reflects the correction of previously identified balance sheet misclassifications, including a misclassification between property, plant and equipment and other assets associated with capitalized implementation costs for cloud computing software.

The accompanying consolidated statements of cash flows have been revised to reflect the above items, inclusive of the cash flow misstatement between operating and investing activities related to capitalized implementation costs for cloud computing software and the timing of disbursements for capital expenditures.

The revision to the accompanying unaudited consolidated balance sheets, consolidated statements of operations and comprehensive loss, and consolidated statements of cash flows are as follows. There were no changes to the consolidated statements of stockholders’ equity that have not otherwise been reflected in the consolidated balance sheets and consolidated statements of operations and comprehensive loss as detailed in the tables below:

	As of June 30, 2020
	As Previously Reported		Adjustments		As Revised
	(In thousands)
Consolidated Balance Sheet
Inventories	$	702,592	$	25,272	$	727,864
Prepaid expenses and other current assets	$	211,418	$	(37,200)	$	174,218
Total current assets	$	2,026,069	$	(11,928)	$	2,014,141
Property, plant, and equipment, net	$	506,555	$	(34,689)	$	471,866
Other noncurrent assets	$	794,724	$	52,642	$	847,366
Total Assets	$	4,992,680	$	6,025	$	4,998,705
Accrued liabilities	$	563,633	$	(21,800)	$	541,833
Total current liabilities	$	1,381,585	$	(21,800)	$	1,359,785
Other noncurrent liabilities	$	427,692	$	7,873	$	435,565
Total noncurrent liabilities	$	3,524,947	$	7,873	$	3,532,820
Retained earnings	$	1,093,268	$	19,952	$	1,113,220
Total stockholders' equity	$	86,148	$	19,952	$	106,100

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	For the Three Months Ended June 30, 2020
	As Previously Reported		Adjustments		As Revised
	(In thousands, except per share amounts)
Consolidated Statement of Operations and Comprehensive Loss
Cost of sales	$	411,288	$	1,937	$	413,225
Gross Profit	$	320,848	$	(1,937)	$	318,911
Operating Loss	$	(46,141)	$	(1,937)	$	(48,078)
Loss Before Income Taxes	$	(97,393)	$	(1,937)	$	(99,330)
Net Loss	$	(109,172)	$	(1,937)	$	(111,109)
Comprehensive Loss	$	(80,886)	$	(1,937)	$	(82,823)
Net Loss Per Common Share - Basic	$	(0.31)	$	(0.01)	$	(0.32)
Net Loss Per Common Share - Diluted	$	(0.31)	$	(0.01)	$	(0.32)

	For the Six Months Ended June 30, 2020
	As Previously Reported		Adjustments		As Revised
	(In thousands, except per share amounts)
Consolidated Statement of Operations and Comprehensive Loss
Cost of sales	$	750,175	$	(3,102)	$	747,073
Gross Profit	$	576,031	$	3,102	$	579,133
Operating Loss	$	(195,952)	$	3,102	$	(192,850)
Loss Before Income Taxes	$	(297,123)	$	3,102	$	(294,021)
Net Loss	$	(319,914)	$	3,102	$	(316,812)
Comprehensive Loss	$	(428,027)	$	3,102	$	(424,925)
Net Loss Per Common Share - Basic	$	(0.92)	$	0.01	$	(0.91)
Net Loss Per Common Share - Diluted	$	(0.92)	$	0.01	$	(0.91)

	For the Six Months Ended June 30, 2020
	As Previously Reported		Adjustments		As Revised
	(In thousands)
Consolidated Statement of Cash Flows
Net loss	$	(319,914)	$	3,102	$	(316,812)
Changes in assets and liabilities:
Inventories	$	(241,833)	$	(3,102)	$	(244,935)
Prepaid expenses and other current assets	$	(30,923)	$	11,500	$	(19,423)
Accounts payable, accrued liabilities, and income taxes payable	$	(305,316)	$	(12,689)	$	(318,005)
Other, net	$	28,092	$	(5,044)	$	23,048
Net cash flows used for operating activities	$	(463,032)	$	(6,233)	$	(469,265)
Purchases of tools, dies, and molds	$	(25,824)	$	(560)	$	(26,384)
Purchases of other property, plant, and equipment	$	(34,367)	$	6,793	$	(27,574)
Net cash flows used for investing activities	$	(80,932)	$	6,233	$	(74,699)

31

	As of December 31, 2020
	As Previously Reported		Adjustments		As Revised
	(In thousands)
Consolidated Balance Sheet
Inventories	$	514,673	$	13,801	$	528,474
Total current assets	$	2,482,890	$	13,801	$	2,496,691
Total Assets	$	5,521,089	$	13,801	$	5,534,890
Retained earnings	$	1,539,809	$	13,801	$	1,553,610
Total stockholders' equity	$	596,343	$	13,801	$	610,144

32

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 subsidiaries.

The following discussion should be read in conjunction with the consolidated financial statements and the related notes that appear in Part I, Item 1 "Financial Statements" of this Quarterly Report on Form 10-Q. Mattel's business is seasonal with consumers making a large percentage of all toy purchases during the traditional holiday season; therefore, results of operations are most comparable to corresponding periods.

The following discussion includes currency exchange rate impact, a non-GAAP financial measure within the meaning of Regulation G promulgated by the SEC ("Regulation G"), to supplement the financial results as reported in accordance with generally accepted accounting principles ("GAAP"). The currency exchange rate impact reflects the portion (expressed as a percentage) of changes in Mattel's reported results that are attributable to fluctuations in currency exchange rates. Mattel uses this non-GAAP financial measure to analyze its continuing operations and to monitor, assess, and identify meaningful trends in its operating and financial performance. Management believes that the disclosure of this non-GAAP financial measure provides useful supplemental information to investors to allow them to better evaluate ongoing business performance and certain components of Mattel's results. This measure is not, and should not be viewed as, a substitute for GAAP financial measures.

The following discussion also includes the use of gross billings, a key performance indicator. Gross billings represent amounts invoiced to customers. It does not include the impact of sales adjustments, such as trade discounts and other allowances. Mattel presents changes in gross billings as a metric for comparing its aggregate, categorical, brand, and geographic results to highlight significant trends in Mattel's business. Changes in gross billings are discussed because, while Mattel records the details of sales adjustments in its financial accounting systems at the time of sale, such sales adjustments are generally not associated with categories, brands, and individual products.

The following discussion has been amended to reflect Mattel’s revision of previously issued consolidated financial statements to correct for prior period misstatements, which Mattel has concluded did not, either individually or in the aggregate, result in a material misstatement of its previously issued consolidated financial statements. Further information regarding the revision is included in "Note 1 to the Consolidated Financial Statements - Basis of Presentation" and "Note 24 to the Consolidated Financial Statements - Revision for Immaterial Misstatements" of this Quarterly Report on Form 10-Q.

Effective as of the first quarter of 2021, operating income by segment reviewed by the Chief Operating Decision Maker does not include certain corporate expenses which were historically allocated by segment. The prior period presentation of operating income by segment has been conformed to the current period's presentation.

Note that amounts shown in millions or billions within this Item 2 may not sum due to rounding.

Overview

Mattel is a leading global toy company and owner of one of the strongest catalogs of children’s and family entertainment franchises in the world, creating innovative products and experiences that inspire, entertain and develop children through play. Mattel is focused on the following two-part strategy to transform Mattel into an intellectual property ("IP") driven, high-performing toy company:

•In the short-term, improve profitability by optimizing operations and accelerate topline growth by growing Mattel's Power Brands and expanding Mattel's brand portfolio.

•In the mid-to-long-term, continue to make progress on capturing the full value of Mattel's IP through franchise management and online retail and e-commerce.

Mattel is the owner of a portfolio of iconic brands and partners with global entertainment companies to license other intellectual property. Mattel's owned and licensed brands and products are organized into the following categories:

Dolls—including brands such as Barbie, American Girl, Polly Pocket, Spirit (Universal) and Enchantimals. Mattel's Dolls portfolio is driven by the flagship Barbie brand and a collection of complementary brands offered globally. Empowering girls since 1959, Barbie has inspired the limitless potential of every girl by showing them that they can be anything. With an extensive portfolio of dolls and accessories, content, gaming, and lifestyle products, American Girl is best known for imparting valuable life lessons through its inspiring dolls and books, featuring diverse characters from past and present. Its products are sold directly to consumers via its catalog, website, and proprietary retail stores.

33

Infant, Toddler, and Preschool—including brands such as Fisher-Price and Thomas & Friends, Power Wheels, and Fireman Sam. As a leader in play and child development, Fisher-Price’s mission is to provide meaningful solutions for parents and enrich children’s lives from birth to school readiness, helping families get the best possible start. Thomas & Friends is an award-winning preschool train brand franchise that brings meaningful life lessons of friendship and teamwork to kids through content, toys, live events, and other lifestyle categories.

Vehicles—including brands such as Hot Wheels, Matchbox, CARS (Disney Pixar), and Mario Kart (Nintendo). In production for over 50 years, Hot Wheels continues to push the limits of performance and design, and ignites the challenger spirit of kids, adults, and collectors. From die-cast vehicles, to tracks, playsets, and accessories, the Mattel vehicles portfolio has broad appeal that engages and excites kids of all ages.

Action Figures, Building Sets, Games, and Other—including brands such as Masters of the Universe, MEGA, UNO, Toy Story (Disney Pixar), Jurassic World (NBCUniversal), WWE, and Star Wars (Disney). From big blocks to small bricks, first builders to advanced collectors, MEGA creates building sets that encourage kids and adults to unlock their creative potential. America's number one game, UNO is the classic matching card game that is easy to learn and fast fun for everyone.

COVID-19 Update

The impact of the coronavirus disease ("COVID-19") and the actions taken by governments, businesses, and individuals in response to it have resulted in significant global economic disruption, including, but not limited to, temporary business closures, reduced retail traffic, volatility in financial markets, and restrictions on travel.

Strong consumer demand for toys during the first half of 2021 contributed to double digit year-over-year increases in net sales across all reportable segments and in each geographic region, despite COVID-19 disruption and local restrictions that impacted certain locations. Mattel’s first half of 2020 results and net sales were significantly and negatively impacted by COVID-19.

While COVID-19 has caused manufacturing and distribution disruptions for Mattel and the manufacturers and distribution network it relies upon, to date, these disruptions, including temporary plant and port closures, have not materially impacted Mattel’s ability to meet demand for its products. To the extent COVID-19 causes further manufacturing and distribution disruption, particularly during seasonally-high periods of production and/or distribution, Mattel’s ability to meet demand may be materially impacted. Due to the uncertainty of the duration and severity of the pandemic and resulting effects, it is not possible to estimate the extent of such impact.

Input cost inflation adversely affected Mattel’s gross margin in the first half of the year due to the increased demand for raw materials and distribution services associated with the impact of COVID-19, but such impact was more than offset by the benefits of fixed cost absorption and cost savings programs. Mattel anticipates that input cost inflation will have a greater adverse impact on Mattel’s gross margin in the second half of 2021 as compared to the first half of 2021 and the prior year, but such impact is expected to be partially offset by cost savings programs and pricing actions. To the extent input cost inflation becomes more widespread and/or significant than anticipated, it may have a material effect on Mattel’s results of operations.

Prolonged disruption to Mattel’s customers, supply chain, or other critical operations during the second half of 2021 would result in material adverse effects to Mattel’s business and its liquidity.  The future impact of COVID-19 on Mattel’s results of operations, financial position, and cash flows remains uncertain at this time due to rapidly evolving circumstances.  Mattel is closely monitoring the situation and actively managing its business as developments occur. Refer to Part I, Item 1A "Risk Factors" in the 2020 Annual Report on Form 10-K for further discussion regarding potential impacts of COVID-19 on Mattel’s business.

The specific line items that have been materially affected by these impacts of COVID-19 are noted within "Results of Operations—Second Quarter" and "Results of Operations—First Half" below.  In addition to the impacts of COVID-19 discussed below, it is reasonably likely that the pandemic and its resulting effects could have other unforeseen consequences that affect Mattel’s business.

34

Results of Operations—Second Quarter

Consolidated Results

The following table provides a summary of Mattel's consolidated results for the second quarter of 2021 and 2020:

	For the Three Months Ended								Year/Year Change
	June 30, 2021				June 30, 2020
	Amount		% of Net Sales		Amount		% of Net Sales		%		Basis Points of Net Sales
	(In millions, except percentage and basis point information)
Net sales	$	1,026.4	100.0	%	$	732.1	100.0	%	40	%	—
Gross profit	$	488.0	47.5	%	$	318.9	43.6	%	53	%	390
Advertising and promotion expenses	88.3		8.6	%	60.2		8.2	%	47	%	40
Other selling and administrative expenses	350.5		34.2	%	306.8		41.9	%	14	%	(770)
Operating income (loss)	49.1		4.8	%	(48.1)		-6.6	%	n/m		n/m
Interest expense	38.1		3.7	%	49.6		6.8	%	-23	%	(310)
Interest (income)	(0.6)		-0.1	%	(1.0)		-0.1	%	-43	%
Other non-operating expense, net	0.5				2.7
Income (loss) before income taxes	11.0		1.1	%	(99.3)		-13.6	%	n/m		n/m
Provision for income taxes	20.6				12.8
Income from equity method investments	4.1				1.1
Net Loss	$	(5.5)	-0.5	%	$	(111.1)	-15.2	%	-95	%	1,470

n/m - Not Meaningful

Sales

The following table provides a summary of Mattel's consolidated gross billings by categories, along with supplemental information by brand, for the second quarter of 2021 and 2020:

	For the Three Months Ended				% Change as Reported		Currency Exchange Rate Impact
	June 30, 2021		June 30, 2020
	(In millions, except percentage information)
Gross Billings by Categories
Dolls	$	394.7	$	261.0	51	%	4	%
Infant, Toddler, and Preschool	229.4		199.8		15	%	3	%
Vehicles	266.3		158.7		68	%	6	%
Action Figures, Building Sets, Games, and Other	258.2		195.0		32	%	4	%
Gross Billings	$	1,148.6	$	814.6	41	%	4	%
Sales Adjustments	(122.2)		(82.4)
Net Sales	$	1,026.4	$	732.1	40	%	4	%
Supplemental Gross Billings Disclosure
Gross Billings by Top 3 Power Brands
Barbie	$	291.3	$	199.3	46	%	5	%
Hot Wheels	227.4		136.5		67	%	6	%
Fisher-Price and Thomas & Friends	207.8		176.3		18	%	3	%
Other	422.2		302.5		40	%	5	%
Gross Billings	$	1,148.6	$	814.6	41	%	4	%

35

Gross billings were $1.15 billion in the second quarter of 2021, an increase of $334.0 million or 41%, as compared to $814.6 million in the second quarter of 2020, with a favorable impact from changes in currency exchange rates of four percentage points. The increase in second quarter of 2021 gross billings was due to higher billings across all categories.

Dolls gross billings increased 51%, of which 35% was driven by higher billings of Barbie products, driven by positive brand momentum and point of sale demand ("POS"), 5% was driven by higher billings of American Girl products, 5% was due to initial billings of Spirit products, and 4% was due to higher billings of Polly Pocket products.

Infant, Toddler, and Preschool gross billings increased 15%, of which 16% was driven by higher billings of Fisher-Price and Thomas & Friends products primarily driven by higher billings of infant and newborn products. This was partially offset by lower billings of Power Wheels products of 2%.

Vehicles gross billings increased 68%, of which 57% was driven by higher billings of Hot Wheels products, driven by positive brand momentum and POS, which benefited from a return to in-store impulse shopping, and 5% was driven by higher billings of Matchbox products.

Action Figures, Building Sets, Games, and Other gross billings increased 32%, of which 16% was driven by higher billings of Jurassic World, 14% driven by initial billings of Masters of the Universe, and 5% driven by higher billings of WWE. This was partially offset by lower billings of card game products, including UNO of 7%.

Sales adjustments represent arrangements with Mattel’s customers to provide sales incentives, support customer promotions, and provide allowances for returns and defective merchandise. Such programs are based primarily on customer purchases, customer performance of specified promotional activities, and other specified factors such as sales to consumers. Sales adjustments as a percentage of net sales was relatively consistent at 11.9% for the second quarter of 2021, as compared to 11.3% for the second quarter of 2020.

Cost of Sales

Cost of sales as a percentage of net sales was 52.5% in the second quarter of 2021, as compared to 56.4% in the second quarter of 2020. Cost of sales increased by $125.1 million, or 30%, to $538.4 million in the second quarter of 2021 from $413.2 million in the second quarter of 2020, as compared to a 40% increase in net sales in the second quarter of 2020. Within cost of sales, product and other costs increased by $104.8 million, or 31%, to $439.9 million in the second quarter of 2021 from $335.2 million in the second quarter of 2020; freight and logistics expenses increased by $13.8 million, or 29%, to $61.0 million in the second quarter of 2021 from $47.1 million in the second quarter of 2020; and royalty expense increased by $6.6 million, or 21%, to $37.5 million in the second quarter of 2021 from $30.9 million in the second quarter of 2020. Within cost of sales, certain inbound freight costs were previously classified as freight and logistics costs. Mattel reclassified such inbound freight costs from freight and logistics expenses to present all inbound freight costs within product and other costs for the periods and segments presented.

Gross Margin

Gross margin increased to 47.5% in the second quarter of 2021 from 43.6% in the second quarter of 2020. The increase in gross margin was primarily driven by the favorable impact of fixed cost absorption and the incremental realized savings from the cost savings programs, partially offset by input cost inflation due to higher raw material and inbound freight costs.

Advertising and Promotion Expenses

Advertising and promotion expenses primarily consist of: (i) media costs, which include the media, planning, and buying fees for television, print, and online advertisements, (ii) non-media costs, which include commercial and website production, merchandising, and promotional costs, (iii) retail advertising costs, which include consumer direct catalogs, newspaper inserts, fliers, and mailers and (iv) generic advertising costs, which include trade show costs. Advertising and promotion expenses as a percentage of net sales was relatively consistent at 8.6% in the second quarter of 2021, as compared to 8.2% in the second quarter of 2020. Advertising and promotion expenses increased $28.2 million, or 47%, to $88.3 million in the second quarter of 2021 from $60.2 million in the second quarter of 2020, driven by higher media spend.

Other Selling and Administrative Expenses

Other selling and administrative expenses were $350.5 million, or 34.2% of net sales, in the second quarter of 2021, as compared to $306.8 million, or 41.9% of net sales, in the second quarter of 2020. The increase in other selling and administrative expenses was primarily driven by higher employee compensation costs and comparisons to cost-savings actions taken in the prior year in response to COVID-19.

36

Interest expense

Interest expense was $38.1 million for the second quarter of 2021, as compared to $49.6 million for the second quarter of 2020. The decrease in interest expense was due to a lower interest rate associated with the partial refinancing of the 2017/2018 Senior Notes due December 2025 in the first quarter of 2021.

Provision for Income Taxes

Mattel's provision for income taxes was $20.6 million and $12.8 million for the second quarter of 2021 and 2020, respectively. For the second quarter of 2021, Mattel recognized a discrete tax expense of $9.8 million related to income taxes recorded on a discrete basis in various jurisdictions, a discrete tax expense of $7.2 million related to tax rate changes impacting deferred tax assets, and a discrete tax benefit of $4.8 million for reassessments of prior years' tax liabilities. For the second quarter of 2020, Mattel recognized a discrete tax expense of $3.7 million related to income taxes recorded on a discrete basis in various jurisdictions and a discrete tax benefit of $0.5 million for reassessments of prior years' tax liabilities. As a result of the establishment of a valuation allowance on U.S. deferred tax assets, there was no U.S. tax benefit provided for U.S. losses during the second quarter of 2021 or 2020.

Mattel recorded a valuation allowance against certain domestic and foreign deferred tax assets as of both December 31, 2020 and June 30, 2021. Evaluating the need for and the amount of a valuation allowance for deferred tax assets often requires significant judgment and extensive analysis of all available evidence to determine whether it is more likely than not that these assets will be realized. Mattel maintains a valuation allowance on its deferred tax assets until there is sufficient evidence to support the release of all or some portion of these allowances. Given Mattel's improved earnings for the year ended December 31, 2020 and the first half of 2021, and if Mattel's earnings continue to improve in the future, Mattel believes that there is a reasonable possibility that in the near term, sufficient positive evidence may become available to allow us to reach a conclusion that a significant portion of the valuation allowance related to certain foreign jurisdictions will no longer be needed. Release of the valuation allowance would result in the recognition of a portion of these deferred tax assets and a decrease to income tax expense for the period the release is recorded. However, the exact timing and amount, if any, of the valuation allowance release are subject to change depending on the level of earnings that Mattel is able to achieve in the tax jurisdictions in which a valuation allowance has been recorded.

37

Segment Results

North America Segment

The following table provides a summary of Mattel's net sales, segment income, and gross billings by categories, along with supplemental information by brand, for the North America segment for the second quarter of 2021 and 2020:

	For the Three Months Ended				% Change as Reported		Currency Exchange Rate Impact
	June 30, 2021		June 30, 2020
	(In millions, except percentage information)
Net Sales	$	560.8	$	432.9	30	%	1	%
Segment Income	149.6		81.8		83	%
Gross Billings by Categories
Dolls	$	172.6	$	121.2	42	%	—	%
Infant, Toddler, and Preschool	139.9		132.4		6	%	1	%
Vehicles	131.3		77.8		69	%	1	%
Action Figures, Building Sets, Games, and Other	154.1		130.2		18	%	—	%
Gross Billings	$	597.9	$	461.5	30	%	1	%
Sales Adjustments	(37.0)		(28.7)
Net Sales	$	560.8	$	432.9	30	%	1	%
Supplemental Gross Billings Disclosure
Gross Billings by Top 3 Power Brands
Barbie	$	151.4	$	112.3	35	%	1	%
Hot Wheels	109.7		66.2		66	%	1	%
Fisher-Price and Thomas & Friends	122.9		111.7		10	%	1	%
Other	213.9		171.4		25	%	1	%
Gross Billings	$	597.9	$	461.5	30	%	1	%

Gross billings for the North America segment were $597.9 million in the second quarter of 2021, an increase of $136.3 million, or 30%, as compared to $461.5 million in the second quarter of 2020, with a favorable impact from changes in currency exchange rates of one percentage point . The increase in the North America segment gross billings was due to higher billings across all categories. .

Dolls gross billings increased 42%, of which 32% was due to higher billings of Barbie products, 5% was due to initial billings of Spirit products, and 5% was due to higher billings of Polly Pocket products.

Infant, Toddler, and Preschool gross billings increased 6%, of which 9% was due to higher billings of Fisher-Price and Thomas & Friends products, partially offset by lower billings of Power Wheels products of 3%.

Vehicles gross billings increased 69%, of which 56% was due to higher billings of Hot Wheels products, and 6% was due to higher billings of Matchbox products.

Action Figures, Building Sets, Games, and Other gross billings increased 18%, of which 15% was due to higher billings of Jurassic World, 11% was due to initial billings of Masters of the Universe, and 7% was due to higher billings of WWE. This was partially offset by lower billings of card game products, including UNO of 11%, and lower billings of arts, crafts and stationery products of 6%.

Sales adjustments as a percentage of net sales was consistent at 6.6% for the second quarter of 2021 and 2020.

38

Cost of sales increased 20% in the second quarter of 2021, as compared to a 30% increase in net sales, primarily due to higher product and other costs. Gross margin in the second quarter of 2021 increased, primarily driven by the incremental realized savings from the cost savings programs and the favorable impact of fixed cost absorption, partially offset by input cost inflation. North America segment income was $149.6 million in the second quarter of 2021, as compared to segment income of $81.8 million in the second quarter of 2020; the improvement was due to higher gross profit.

International Segment

The following table provides a summary of Mattel's net sales, segment income (loss), and gross billings by categories, along with supplemental information by brand, for the International segment for the second quarter of 2021 and 2020:

	For the Three Months Ended				% Change as Reported		Currency Exchange Rate Impact
	June 30, 2021		June 30, 2020
	(In millions, except percentage information)
Net Sales	$	424.9	$	271.1	57	%	10	%
Segment Income (Loss)	50.8		(4.4)		n/m
Gross Billings by Categories
Dolls	$	180.7	$	110.8	63	%	10	%
Infant, Toddler, and Preschool	89.5		67.4		33	%	9	%
Vehicles	135.0		80.9		67	%	11	%
Action Figures, Building Sets, Games, and Other	104.1		64.8		61	%	12	%
Gross Billings	$	509.2	$	323.9	57	%	10	%
Sales Adjustments	(84.3)		(52.9)
Net Sales	$	424.9	$	271.1	57	%	10	%
Supplemental Gross Billings Disclosure
Gross Billings by Top 3 Power Brands
Barbie	$	139.9	$	87.0	61	%	11	%
Hot Wheels	117.7		70.3		67	%	10	%
Fisher-Price and Thomas & Friends	84.9		64.6		31	%	8	%
Other	166.8		102.1		63	%	11	%
Gross Billings	$	509.2	$	323.9	57	%	10	%

n/m - Not Meaningful

Gross billings for the International segment were $509.2 million in the second quarter of 2021, an increase of $185.3 million, or 57%, as compared to $323.9 million in the second quarter of 2020, with a favorable impact from changes in currency exchange rates of ten percentage points. The increase in the International segment gross billings was due to higher billings across all categories.

Dolls gross billings increased 63%, of which 48% was due to higher billings of Barbie products, 5% was due to initial billings of Spirit products, and 5% was due to higher billings of Polly Pocket products.

Infant, Toddler, and Preschool gross billings increased 33%, of which 30% was driven by higher billings of Fisher-Price and Thomas & Friends products.

Vehicles gross billings increased 67%, of which 59% was due to higher billings of Hot Wheels products, and 5% was due to higher billings of Matchbox products.

Action Figures, Building Sets, Games, and Other gross billings increased 61% due to higher billings of the following products: 19% from Jurassic World, 18% from initial billings of Masters of the Universe, and 8% from MEGA.

Sales adjustments as a percentage of net sales was relatively consistent at 19.9% for the second quarter of 2021, as compared to 19.5% for the second quarter of 2020.

39

Cost of sales increased 50% in the second quarter of 2021, as compared to a 57% increase in net sales, primarily due to higher product and other costs. Gross margin in the second quarter of 2021 increased, primarily driven by the favorable impact of fixed cost absorption and the incremental realized savings from the cost savings programs, partially offset by input cost inflation. International segment income was $50.8 million in the second quarter of 2021, as compared to a segment loss of $4.4 million in the second quarter of 2020; the improvement was primarily due to higher gross profit, partially offset by higher advertising and promotion expenses.

American Girl Segment

The following table provides a summary of Mattel's net sales, segment loss, and gross billings for the American Girl segment for the second quarter of 2021 and 2020:

	For the Three Months Ended				% Change as Reported		Currency Exchange Rate Impact
	June 30, 2021		June 30, 2020
	(In millions, except percentage information)
Net Sales	$	40.6	$	28.2	44	%	—	%
Segment Loss	(9.7)		(13.9)		-30	%	—	%
American Girl Segment
Total Gross Billings	41.5		29.1		43	%	—	%
Sales Adjustments	(0.8)		(0.9)
Total Net Sales	$	40.6	$	28.2	44	%	—	%

Gross billings for the American Girl segment were $41.5 million in the second quarter of 2021, an increase of $12.4 million, or 43%, as compared to $29.1 million in the second quarter of 2020. The increase in American Girl gross billings was primarily due to higher billings in proprietary retail channels, which were impacted in the second quarter of 2020 by retail store closures due to the impact of COVID-19. This was partially offset by lower billings in direct-to-consumer channels.

Sales adjustments as a percentage of net sales decreased to 2.1% for the second quarter of 2021, as compared to 3.2% for the second quarter of 2020 due to lower wholesale returns.

Cost of sales increased 38% in the second quarter of 2021, as compared to a 44% increase in net sales, primarily due to higher product and other costs. Gross margin in the second quarter of 2021 increased, primarily due to decreased freight and logistics expenses as a percentage of net sales driven by lower direct-to-consumer channel sales and the favorable impact of fixed cost absorption, partially offset by input cost inflation. American Girl segment loss was $9.7 million in the second quarter of 2021, as compared to segment loss of $13.9 million in the second quarter of 2020. This improvement was driven by higher gross profit, partially offset by higher advertising and promotion expenses.

40

Results of Operations—First Half

Consolidated Results

The following table provides a summary of Mattel's consolidated results for the first half of 2021 and 2020:

	For the Six Months Ended								Year/Year Change
	June 30, 2021				June 30, 2020
	Amount		% of Net Sales		Amount		% of Net Sales		%		Basis Points of Net Sales
	(In millions, except percentage and basis point information)
Net sales	$	1,900.6	100.0	%	$	1,326.2	100.0	%	43	%	—
Gross profit	$	899.8	47.3	%	$	579.1	43.7	%	55	%	360
Advertising and promotion expenses	162.4		8.5	%	136.5		10.3	%	19	%	(180)
Other selling and administrative expenses	654.4		34.4	%	635.5		47.9	%	3	%	(1,350)
Operating income (loss)	83.0		4.4	%	(192.8)		-14.5	%	n/m		n/m
Interest expense	168.6		8.9	%	98.6		7.4	%	71	%	150
Interest (income)	(1.4)		-0.1	%	(3.1)		-0.2	%	-55	%	10
Other non-operating (income) expense, net	(0.6)				5.7
Loss before income taxes	(83.7)		-4.4	%	(294.0)		-22.2	%	-72	%	1,780
Provision for income taxes	40.9				24.7
Income from equity method investments	6.7				1.9
Net Loss	$	(117.9)	-6.2	%	$	(316.8)	-23.9	%	-63	%	1,770

n/m - Not Meaningful

Sales

The following table provides a summary of Mattel's consolidated gross billings by categories, along with supplemental information by brand, for the first half of 2021 and 2020:

	For the Six Months Ended				% Change as Reported		Currency Exchange Rate Impact
	June 30, 2021		June 30, 2020
	(In millions, except percentage information)
Gross Billings by Categories
Dolls	$	776.0	$	486.9	59	%	2	%
Infant, Toddler, and Preschool	412.5		340.1		21	%	2	%
Vehicles	481.7		344.3		40	%	3	%
Action Figures, Building Sets, Games, and Other	457.3		313.2		46	%	4	%
Gross Billings	$	2,127.6	$	1,484.5	43	%	3	%
Sales Adjustments	(227.0)		(158.3)
Net Sales	$	1,900.6	$	1,326.2	43	%	2	%
Supplemental Gross Billings Disclosure
Gross Billings by Top 3 Power Brands
Barbie	$	567.5	$	346.8	64	%	4	%
Hot Wheels	412.0		295.1		40	%	3	%
Fisher-Price and Thomas & Friends	379.3		305.0		24	%	2	%
Other	768.7		537.6		43	%	3	%
Gross Billings	$	2,127.6	$	1,484.5	43	%	3	%

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Gross billings were $2.13 billion in the first half of 2021, an increase of $643.0 million or 43%, as compared to $1.48 billion in the first half of 2020, with a favorable impact from changes in currency exchange rates of three percentage points. The increase in gross billings for the first half of 2021 was due to higher billings across all categories.

Dolls gross billings increased 59%, of which 45% was due to higher billings of Barbie products, primarily driven by positive brand momentum and POS, 4% was due to higher billings of American Girl products, 4% was due to initial billings of Spirit products, and 3% was due to higher billings of Polly Pocket products.

Infant, Toddler, and Preschool gross billings increased 21%, of which 22% was due to higher billings of Fisher-Price and Thomas & Friends, primarily driven by higher billings of infant and newborn products. This was partially offset by lower billings of Power Wheels products of 1%.

Vehicles gross billings increased 40%, of which 34% was due to higher billings of Hot Wheels products, driven by positive brand momentum and POS, which benefited from a return to in-store impulse shopping, and 3% was due to higher billings of Matchbox products.

Action Figures, Building Sets, Games, and Other gross billings increased 46% due to higher billings of the following products: 16% from Jurassic World, 14% from initial billings of Masters of the Universe, 7% from WWE, and 6% from MEGA.

Sales adjustments represent arrangements with Mattel’s customers to provide sales incentives, support customer promotions, and provide allowances for returns and defective merchandise. Such programs are based primarily on customer purchases, customer performance of specified promotional activities, and other specified factors such as sales to consumers. Sales adjustments as a percentage of net sales was consistent at 11.9% for the first half of 2021 and 2020.

Cost of Sales

Cost of sales as a percentage of net sales was 52.7% in the first half of 2021, as compared to 56.3% in the first half of 2020. Cost of sales increased by $253.6 million, or 34%, to $1.0 billion in the first half of 2021 from $747.1 million in the first half of 2020, as compared to a 43% increase in net sales. Within cost of sales, product and other costs increased by $217.1 million, or 36%, to $816.7 million in the first half of 2021 from $599.6 million in the first half of 2020; freight and logistics expenses increased by $25.6 million, or 28%, to $118.7 million in the first half of 2021 from $93.1 million in the first half of 2020; and royalty expense increased by $10.9 million, or 20%, to $65.2 million in the first half of 2021 from $54.4 million in the first half of 2020. Within cost of sales, certain inbound freight costs were previously classified as freight and logistics costs. Mattel reclassified such inbound freight costs from freight and logistics expenses to present all inbound freight costs within product and other costs for the periods and segments presented.

Gross Margin

Gross margin increased to 47.3% in the first half of 2021 from 43.7% in the first half of 2020. The increase in gross margin was primarily driven by the favorable impact of fixed cost absorption and the incremental realized savings from the cost savings programs, partially offset by input cost inflation due to higher raw material and inbound freight costs.

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 to 8.5% in the first half of 2021 from 10.3% in the first half of 2020 driven by a 43% increase in net sales as compared to an increase in advertising and promotion expense of $25.9 million, or 19%. The increase in advertising and promotion expense to $162.4 million in the first half of 2021 from $136.5 million in the first half of 2020, was driven by higher media spend.

Other Selling and Administrative Expenses

Other selling and administrative expenses were $654.4 million, or 34.4% of net sales, in the first half of 2021, as compared to $635.5 million, or 47.9% of net sales, in the first half of 2020. The increase in other selling and administrative expenses was primarily driven by higher employee compensation costs, partially offset by incremental realized savings from the cost savings programs.

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Interest Expense

Interest expense was $168.6 million in the first half of 2021, as compared to $98.6 million in the first half of 2020. The increase in interest expense was due to a loss on extinguishment of $83.2 million as a result of the partial redemption of the 2017/2018 Senior Notes due December 2025 in the first quarter of 2021. This was partially offset by lower interest expense in the second quarter of 2021 due to a lower interest rate associated with the partial refinancing of the 2017/2018 Senior Notes.

Provision for Income Taxes

Mattel's provision for income taxes was $40.9 million and $24.7 million for the first half of 2021 and 2020, respectively. For the first half of 2021, Mattel recognized a net discrete tax expense of $16.2 million related to income taxes recorded on a discrete basis in various jurisdictions, a discrete tax expense of $7.2 million related to tax rate changes impacting deferred tax assets, and a discrete tax benefit of $3.9 million for reassessments of prior years' tax liabilities. For the first half of 2020, Mattel recognized a discrete tax expense of $8.3 million related to income taxes recorded on a discrete basis in various jurisdictions and a discrete tax expense of $1.3 million for reassessments of prior years' tax liabilities. As a result of the establishment of a valuation allowance on U.S. deferred tax assets, there was no U.S. tax benefit provided for U.S. losses during the first half of 2021 or 2020.

Segment Results

North America Segment

The following table provides a summary of Mattel's net sales, segment income, and gross billings by categories, along with supplemental information by brand, for the North America segment for the first half of 2021 and 2020:

	For the Six Months Ended				% Change as Reported		Currency Exchange Rate Impact
	June 30, 2021		June 30, 2020
	(In millions, except percentage information)
Net Sales	$	1,040.5	$	720.4	44	%	—	%
Segment Income	274.5		98.7		178	%
Gross Billings by Categories
Dolls	$	348.8	$	195.1	79	%	1	%
Infant, Toddler, and Preschool	248.4		208.9		19	%	1	%
Vehicles	241.2		166.5		45	%	1	%
Action Figures, Building Sets, Games, and Other	271.3		196.7		38	%	1	%
Gross Billings	$	1,109.6	$	767.3	45	%	1	%
Sales Adjustments	(69.1)		(46.9)
Net Sales	$	1,040.5	$	720.4	44	%	—	%
Supplemental Gross Billings Disclosure
Gross Billings by Top 3 Power Brands
Barbie	$	308.3	$	180.1	71	%	—	%
Hot Wheels	202.4		140.3		44	%	—	%
Fisher-Price and Thomas & Friends	223.7		181.6		23	%	—	%
Other	375.2		265.3		41	%	—	%
Gross Billings	$	1,109.6	767.3		45	%	1	%

Gross billings for the North America segment were $1.11 billion in the first half of 2021, an increase of $342.3 million, or 45%, as compared to $767.3 million in the first half of 2020, with a favorable impact from changes in currency exchange rates of one percentage point. The increase in the North America segment gross billings was due to higher billings across all categories.

Dolls gross billings increased 79%, of which 66% was due to higher billings of Barbie products, 7% was due to initial billings of Spirit products, and 5% was due to higher billings of Polly Pocket products.

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Infant, Toddler, and Preschool gross billings increased 19%, of which 20% was due to higher billings of Fisher-Price and Thomas & Friends products, partially offset by lower billings of Power Wheels products of 1%.

Vehicles gross billings increased 45%, of which 37% was due to higher billings of Hot Wheels products, and 3% was due to higher billings of Matchbox products.

Action Figures, Building Sets, Games, and Other gross billings increased 38% due to higher billings of the following products: 15% from Jurassic World, 13% from initial billings of Masters of the Universe, 9% from WWE, and 5% from MEGA. This was partially offset by lower billings of card games products, including UNO of 7%.

Sales adjustments as a percentage of net sales was relatively consistent at 6.6% for the first half of 2021, as compared to 6.5% for the first half of 2020.

Cost of sales increased 31.0% during the first half of 2021, as compared to a 44% increase in net sales, primarily due to higher product and other costs. Gross margin in the first half of 2021 increased primarily driven by the favorable impact of fixed cost absorption and the incremental realized savings from the cost savings programs, partially offset by input cost inflation. North America segment income was $274.5 million in the first half of 2021, as compared to segment income of $98.7 million in the first half of 2020; the improvement was primarily due to higher gross profit, partially offset by higher advertising and promotion expenses.

International Segment

The following table provides a summary of Mattel's net sales, segment income (loss), and gross billings by categories, along with supplemental information by brand, for the International segment for the first half of 2021 and 2020:

	For the Six Months Ended				% Change as Reported		Currency Exchange Rate Impact
	June 30, 2021		June 30, 2020
	(In millions, except percentage information)
Net Sales	$	774.3	$	540.4	43	%	6	%
Segment Income (Loss)	87.0		(31.4)		n/m
Gross Billings by Categories
Dolls	$	339.4	$	224.7	51	%	6	%
Infant, Toddler, and Preschool	164.1		131.2		25	%	6	%
Vehicles	240.5		177.8		35	%	5	%
Action Figures, Building Sets, Games, and Other	186.1		116.4		60	%	9	%
Gross Billings	$	930.2	$	650.1	43	%	6	%
Sales Adjustments	(155.9)		(109.6)
Net Sales	$	774.3	$	540.4	43	%	6	%
Supplemental Gross Billings Disclosure
Gross Billings by Top 3 Power Brands
Barbie	$	259.2	$	166.7	55	%	6	%
Hot Wheels	209.6		154.8		35	%	4	%
Fisher-Price and Thomas & Friends	155.6		123.4		26	%	5	%
Other	305.8		205.2		49	%	7	%
Gross Billings	$	930.2	$	650.1	43	%	6	%

n/m - Not Meaningful

Gross billings for the International segment were $930.2 million in the first half of 2021, an increase of $280.1 million, or 43%, as compared to $650.1 million in the first half of 2020, with a favorable impact from changes in currency exchange rates of 6 percentage points. The increase in the International segment gross billings was due to higher billings across all categories.

Dolls gross billings increased 51%, of which 41% was due to higher billings of Barbie products, 4% was due to initial billings of Spirit products, and 3% was due to higher billings of Polly Pocket products.

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Infant, Toddler, and Preschool gross billings increased 25%, of which 24% was due to higher billings of Fisher-Price and Thomas & Friends products.

Vehicles gross billings increased 35%, of which 31% was due to higher billings of Hot Wheels products, and 4% was due to higher billings of Matchbox products.

Action Figures, Building Sets, Games, and Other gross billings increased 60% due to higher billings of the following products: 17% from Jurassic World, 15% from initial billings of Masters of the Universe, 8% from MEGA, and 3% from WWE.

Sales adjustments as a percentage of net sales was relatively consistent at 20.1% for the first half of 2021, as compared to 20.3% for the first half of 2020.

Cost of sales increased 35.0% in the first half of 2021, as compared to a 43% increase in net sales, primarily due to higher product and other costs. Gross margin in the first half of 2021 increased primarily driven by the incremental realized savings from the cost savings programs and the favorable impact of fixed cost absorption, partially offset by input cost inflation. International segment income was $87.0 million in the first half of 2021, as compared to segment loss of $31.4 million in the first half of 2020; the improvement was primarily due to higher gross profit, partially offset by higher advertising and promotion expenses.

American Girl Segment

The following table provides a summary of Mattel's net sales, segment loss, and gross billings by categories, along with supplemental information by brand, for the American Girl segment for the first half of 2021 and 2020:

	For the Six Months Ended				% Change as Reported		Currency Exchange Rate Impact
	June 30, 2021		June 30, 2020
	(In millions, except percentage information)
Net Sales	$	85.8	$	65.3	31	%	—	%
Segment Loss	(19.3)		(31.0)		-38	%
American Girl Segment
Total Gross Billings	87.8		67.2		31	%	—	%
Sales Adjustments	(2.0)		(1.8)
Total Net Sales	$	85.8	$	65.3	31	%	—	%

Gross billings for the American Girl segment was $87.8 million in the first half of 2021, an increase of $20.6 million, or 31%, as compared to $67.2 million in the first half of 2020. The increase in American Girl gross billings was due to higher billings in propriety retail channels and higher direct-to-consumer channel billings.

Sales adjustments as a percentage of net sales decreased to 2.3% for the first half of 2021, as compared to 2.8% for the first half of 2020 due to lower wholesale returns.

Cost of sales increased 29% in the first half of 2021, as compared to a 31% increase in net sales, primarily due to higher product and other costs. Gross margin in the first half of 2021 increased, primarily driven by the favorable impact of fixed cost absorption and the incremental realized savings from the cost savings programs, partially offset by input cost inflation. American Girl segment loss was $19.3 million in the first half of 2021, as compared to segment loss of $31.0 million in the first half of 2020; the improvement was primarily due to higher gross profit, partially offset by higher advertising and promotion expenses.

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Cost Savings Programs

Optimizing for Growth (formerly Capital Light)

On February 9, 2021, Mattel announced the Optimizing for Growth program, a multi-year cost savings program which integrates and expands upon the previously announced Capital Light program (the "Program"). Targeted annual gross cost savings from actions that are expected to be completed beginning 2021 through 2023 are $250 million. Of the $250 million in incremental targeted gross cost savings, approximately 50% is expected to benefit Cost of Sales, 40% to benefit Other Selling and Administrative Expenses, and 10% to benefit Advertising and Promotion Expense. Aggregate incremental cash expenditures associated with the Program are expected to be approximately $100 to $125 million.

Mattel estimates the aggregate cost of incremental actions for the Program to be as follows:

Optimizing for Growth - Incremental Actions	Estimate of Cost
Employee severance	$40 to $50 million
Real estate/supply chain optimization and other restructuring costs	$15 to $20 million
Asset impairments and other non-cash charges	$25 to $30 million
Total estimated severance and restructuring costs	$80 to $100 million
Information technology enhancements and other investments	$45 to $55 million
Total estimated incremental charges	$125 to $155 million

Cumulatively, in conjunction with previous actions taken under the Capital Light program, targeted annual gross cost savings for the Program are $325 million by 2023, with total expected cash expenditures of approximately $140 to $165 million, and total expected non-cash charges of $40 to $45 million. Of the $325 million in targeted gross cost savings, approximately 60% is expected to benefit Cost of Sales, 30% to benefit Other Selling and Administrative Expenses, and 10% to benefit Advertising and Promotion Expense.

In connection with the Program, Mattel has recorded severance and other restructuring costs in the following cost and expense categories within the consolidated statements of operations:

	For the Six Months Ended
	June 30, 2021		June 30, 2020
	(In millions)
Cost of sales (a)	$	1.8	$	4.5
Other selling and administrative expenses (b)	17.2		4.1
	$	18.9	$	8.6

(a)Severance and other restructuring costs recorded within cost of sales in the consolidated statements of operations are included in segment income (loss) in "Note 22 to the Consolidated Financial Statements—Segment Information."

(b)Severance and other restructuring costs recorded within other selling and administrative expenses in the consolidated statements of operations are included in corporate and other expense in "Note 22 to the Consolidated Financial Statements—Segment Information."

As of June 30, 2021, Mattel has recorded cumulative severance and other restructuring charges related to the Program of approximately $69 million, which include approximately $18 million of non-cash charges. Mattel realized cumulative cost savings (before severance, restructuring costs, and cost inflation) of approximately $124 million, primarily within gross profit, as of June 30, 2021 in connection with the Program.

During the three months ended March 31, 2021, in conjunction with the Program, Mattel completed the sale of a manufacturing plant based in Mexico, which included land and buildings, resulting in a pre-tax gain of $15.8 million.

Other Cost Savings Actions

During the first half of 2020, Mattel recorded severance charges of approximately $15 million, primarily related to actions taken to further streamline its organizational structure.

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Liquidity and Capital Resources

Mattel's primary sources of liquidity are its domestic and foreign cash and equivalents balances, short-term borrowing facilities, including its $1.40 billion senior secured revolving credit facilities, and access to capital markets to fund its operations and obligations. Such obligations may include investing and financing activities such as capital expenditures and debt service. Of Mattel's $384.7 million in cash and equivalents at June 30, 2021, approximately $215.3 million was held by foreign subsidiaries.

Cash flows from operating activities could be negatively impacted by decreased demand for Mattel's products, which could result from factors such as, but not limited to, 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, but not limited to, global economic crises and tight credit environments, an inability to comply with its debt covenants and its senior secured revolving credit facilities covenants, or deterioration of Mattel's credit ratings. As discussed under Part I, Item 2 "Management’s Discussion and Analysis of Financial Condition and Results of Operations—COVID-19 Update" of this Quarterly Report on Form 10-Q, many of the aforementioned factors have been and may be adversely affected by COVID-19. However, based on Mattel’s current business plan and factors known to date, including the currently known impacts of COVID-19, it is expected that existing cash and equivalents, cash flows from operations, availability under the senior secured credit revolving facilities, and access to capital markets, will be sufficient to meet working capital and operating expenditure requirements for the next twelve months.

Current Market Conditions

Mattel is exposed to financial market risk resulting from changes in interest and foreign currency exchange rates.

Consistent with prior periods, Mattel intends to utilize its senior secured revolving credit facilities to meet its short-term liquidity needs. At June 30, 2021, Mattel had no outstanding borrowings under the senior secured revolving credit facilities and approximately $10 million in outstanding letters of credit under the senior secured revolving credit facilities. 

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 Mattel'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 collectability risks, and customer terms and credit limits are adjusted, if necessary. Additionally, Mattel uses a variety of financial arrangements to ensure collectability 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.

Mattel's business has been impacted by COVID-19. Refer to Part I, Item 2 "Management’s Discussion and Analysis of Financial Condition and Results of Operations—COVID-19 Update" for further discussion regarding the impact and potential impacts of COVID-19 on Mattel’s business.

Cash Flow Activities

Cash flows used for operating activities were $241.4 million in the first half of 2021, as compared to $469.3 million in the first half of 2020. The decrease in cash flows used for operating activities was primarily due to lower net loss, excluding the impact of non-cash charges.

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Cash flows used for investing activities were $27.2 million in the first half of 2021, as compared to $74.7 million in the first half of 2020. The decrease in cash flows used for investing activities was primarily driven by proceeds from the disposal of assets and a business of $43.1 million in the first half of 2021 and net payments for foreign currency forward exchange contracts in the first half of 2020.

Cash flows used for financing activities were $107.8 million in the first half of 2021, as compared to cash flows provided by financing activities of $399.3 million in the first half of 2020. The change in cash flows from financing activities was driven primarily by proceeds from short-term borrowings of $400.0 million in the first half of 2020 as compared to the partial redemption of the 2017/2018 Senior Notes due December 2025 in the first half of 2021.

Seasonal Financing

See Part I, Item 1 "Financial Statements—Note 8 to the Consolidated Financial Statements—Seasonal Financing" of this Quarterly Report on Form 10-Q.

Financial Position

Mattel's cash and equivalents decreased $377.4 million to $384.7 million at June 30, 2021, as compared to $762.2 million at December 31, 2020, due to seasonal working capital usage, the partial redemption of the 2017/2018 Senior Notes due December 2025, and capital expenditures. The decreases were partially offset by proceeds from the disposal of assets and a business during the first half of 2021. Mattel's cash and equivalents decreased $76.8 million to $384.7 million at June 30, 2021, as compared to $461.6 million at June 30, 2020, primarily due to repayment of short-term borrowings of $400.0 million outstanding as of June 30, 2020, the partial redemption of the 2017/2018 Senior Notes due December 2025 in the first half of 2021, and capital expenditures, partially offset by cash flows from operating activities in the trailing twelve months.

Accounts receivable decreased $249.9 million to $784.1 million at June 30, 2021, as compared to $1.03 billion at December 31, 2020, primarily due to seasonal declines as year-end receivables are collected. Accounts receivable increased $133.6 million to $784.1 million at June 30, 2021, as compared to $650.5 million at June 30, 2020, primarily due to higher net sales in the second quarter of 2021. Net sales in the second quarter of 2020 were negatively impacted by COVID-19.

Inventory increased $289.6 million to $818.0 million at June 30, 2021, as compared to $528.5 million at December 31, 2020, primarily due to seasonal inventory build. Inventory increased $90.2 million to $818.0 million at June 30, 2021, as compared to $727.9 million at June 30, 2020, due to cost inflation and increased production to support growth in the second half of 2021.

Accounts payable and accrued liabilities decreased $240.9 million to $1.09 billion at June 30, 2021, as compared to $1.33 billion at December 31, 2020 due to seasonal declines in expenditure levels. Accounts payable and accrued liabilities increased $142.3 million to $1.09 billion at June 30, 2021, as compared to $944.1 million at June 30, 2020 due to increased payables associated with cost inflation and higher inventory production levels.

Mattel had $0.2 million, $400.0 million, and $1.0 million of short-term borrowings outstanding at June 30, 2021, June 30, 2020, and December 31, 2020, respectively. Mattel elevated its borrowings under the senior secured revolving credit facilities during 2020 in light of uncertainties surrounding the impact of COVID-19.

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A summary of Mattel's capitalization is as follows:

	June 30, 2021				June 30, 2020				December 31, 2020
	(In millions, except percentage information)
Cash and equivalents	$	384.7			$	461.6			$	762.2
Short-term borrowings	0.2				400.0				1.0
2010 Senior Notes due October 2040	250.0				250.0				250.0
2011 Senior Notes due November 2041	300.0				300.0				300.0
2013 Senior Notes due March 2023	250.0				250.0				250.0
2017/2018 Senior Notes due December 2025	275.0				1,500.0				1,500.0
2019 Senior Notes due December 2027	600.0				600.0				600.0
2021 Senior Notes due April 2026	600.0				—				—
2021 Senior Notes due April 2029	600.0				—				—
Debt issuance costs and debt discount	(35.9)				(49.2)				(45.3)
Total debt	2,839.3		84	%	3,250.8		97	%	2,855.7		82	%
Stockholders’ equity	527.7		16		106.1		3		610.1		18
Total capitalization (debt plus equity)	$	3,367.1	100	%	$	3,356.9	100	%	$	3,465.8	100	%

Total debt was $2.84 billion at June 30, 2021, as compared to $2.86 billion at December 31, 2020. On March 19, 2021, Mattel used the net proceeds from the issuance of $600.0 million aggregate principal amount of 3.375% Senior Notes due 2026 and $600.0 million aggregate principal amount of 3.750% Senior Notes due 2029, together with cash on hand, to redeem and retire $1.23 billion in aggregate principal amount of Mattel's outstanding 2017/2018 Senior Notes due December 2025 (the "2025 Notes") and pay related prepayment premiums and transaction fees and expenses. Total debt was $2.84 billion at June 30, 2021, as compared to $3.25 billion at June 30, 2020. The decrease is primarily due to the repayment of short-term borrowings of $400.0 million outstanding at June 30, 2020.

On June 21, 2021, Mattel issued a conditional notice of redemption to holders of its 2025 Notes for the redemption of the remaining $275 million outstanding aggregate principal amount of the 2025 Notes on July 1, 2021 (the "Redemption Date") at a price equal to 105.063% of the principal amount of the 2025 Notes redeemed plus accrued and unpaid interest to, but excluding, the Redemption Date. The conditional notice was subject to the condition precedent that Mattel receive funds from the senior secured revolving credit facilities sufficient to consummate the redemption (the "Condition Precedent") and provided Mattel the right to delay the Redemption Date or modify or rescind such notice in the event the Condition Precedent was not satisfied or waived by the Redemption Date, which, consequently, gave Mattel the right to defer settlement of the 2025 Notes for a period greater than one year after June 30, 2021. The Condition Precedent was satisfied and Mattel fully redeemed the 2025 Notes on the Redemption Date using cash on hand and funds from the senior secured revolving credit facilities.

Stockholders' equity decreased $82.4 million to $527.7 million at June 30, 2021, as compared to $610.1 million at December 31, 2020, primarily due to the net loss for the first half of 2021. Stockholders' equity increased $421.6 million to $527.7 million at June 30, 2021, as compared to $106.1 million at June 30, 2020, primarily due to net income for the trailing twelve months.

Litigation

See Part I, Item 1 "Financial Statements—Note 21 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 the 2020 Annual Report on Form 10-K and did not materially change during the first six months of 2021.

New Accounting Pronouncements

See Part I, Item 1 "Financial Statements—Note 23 to the Consolidated Financial Statements—New Accounting Pronouncements" of this Quarterly Report on Form 10-Q.

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Non-GAAP Financial Measure

To supplement the financial results presented in accordance with U.S. GAAP, Mattel presents a non-GAAP financial measure within the meaning of Regulation G promulgated by the SEC. The non-GAAP financial measure that Mattel presents is currency exchange rate impact. Mattel uses this measure to analyze its continuing operations and to monitor, assess, and identify meaningful trends in its operating and financial performance. Mattel believes that the disclosure of this non-GAAP financial measure provides useful supplemental information to investors to be able to better evaluate ongoing business performance and certain components of Mattel's results. This measure is not, and should not be viewed as, a substitute for GAAP financial measures and may not be comparable to similarly-titled measures used by other companies.

Currency Exchange Rate Impact

The currency exchange rate impact reflects the portion (expressed as a percentage) of changes in Mattel's reported results that are attributable to fluctuations in currency exchange rates.

For entities reporting in currencies other than the U.S. dollar, Mattel calculates the percentage change of period-over-period results at constant currency exchange rates (established as described below) by translating current period and prior period results using these rates. It then determines the currency exchange rate impact percentage by calculating the difference between the percentage change at such constant currency exchange rates and the percentage change at actual exchange rates.

The constant currency exchange rates are determined by Mattel at the beginning of each year and are applied consistently during the year. They are generally different from the actual exchange rates in effect during the current or prior period due to volatility in actual foreign exchange rates. Mattel considers whether any changes to the constant currency rates are appropriate at the beginning of each year. The exchange rates used for these constant currency calculations are generally based on prior year actual exchange rates.

Mattel believes that the disclosure of the percentage impact of foreign currency changes is useful supplemental information for investors to be able to gauge Mattel's current business performance and the longer-term strength of its overall business since foreign currency changes could potentially mask underlying sales trends. The disclosure of the percentage impact of foreign exchange allows investors to calculate the impact on a constant currency basis and also enhances their ability to compare financial results from one period to another.

Key Performance Indicator

Gross billings represent amounts invoiced to customers. It does not include the impact of sales adjustments, such as trade discounts and other allowances. Mattel presents changes in gross billings as a metric for comparing its aggregate, categorical, brand, and geographic results to highlight significant trends in Mattel's business. Changes in gross billings are discussed because, while Mattel records the details of sales adjustments in its financial accounting systems at the time of sale, such sales adjustments are generally not associated with categories, brands, and individual products.

Item 3. Quantitative and Qualitative Disclosures About Market Risk.

Foreign Currency Exchange Rate Risk

Currency exchange rate fluctuations impact Mattel's results of operations and cash flows. Inventory transactions denominated in the Euro, Mexican peso, Australian dollar, British pound sterling, Canadian dollar, Russian ruble, and Brazilian real were the primary transactions that caused foreign currency transaction exposure for Mattel during the first half of 2021. 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 statements of operations in the period in which the exchange rate changes as part of operating income (loss) or other non-operating expense (income), net based on the nature of the underlying transaction. Transaction gains or losses on hedged intercompany inventory transactions are recorded in the consolidated statements 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.

50

Mattel's financial position is also impacted by currency exchange rate fluctuations on translation of its net investments in subsidiaries with non-U.S. dollar functional currencies. Assets and liabilities of subsidiaries with non-U.S. dollar functional currencies are translated into U.S. dollars at fiscal period-end exchange rates. Income, 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 loss within stockholders' equity. Mattel's primary currency translation adjustments for the first half of 2021 were related to its net investments in entities having functional currencies denominated in the Turkish lira.

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 U.S. dollar would have impacted Mattel's second quarter net sales by approximately 0.4% and have no impact to its second quarter loss per share.

United Kingdom Operations

During June 2016, the referendum by British voters to exit the EU ("Brexit") adversely impacted global markets and resulted in a sharp decline of the British pound sterling against the U.S. dollar. In February 2017, the British Parliament voted in favor of allowing the British government to begin the formal process of Brexit and discussions with the EU began in March 2017. On January 29, 2020, the British Parliament approved a withdrawal agreement, and the United Kingdom ("U.K.") officially withdrew from the EU on January 31, 2020 and entered into a transition period that ended on December 31, 2020.

On December 24, 2020, the U.K. and EU agreed upon The EU-UK Trade and Cooperation Agreement. The agreement was provisionally applicable beginning January 1, 2021 and sets new rules and arrangements between the U.K. and EU in areas such as the trade of goods and services, intellectual property, transportation, and more. As a result of the agreement, the U.K. is no longer considered a member of the EU Single Market and Customs Union and exited all EU policies and trade agreements. The transfer of goods between the U.K. and EU is subject to additional inspections and checkpoints causing possible delays in the movement of inventory.

On April 27, 2021, the European Parliament gave final approval to the EU-UK Trade and Cooperation Agreement, and on April 29, 2021, the EU approved the conclusion of the agreement by way of a Council Decision. As a result, the agreements between the U.K. and the EU came into effect on May 1, 2021. This was the last official step in formalizing the new relationship between the U.K. and the EU. Although the agreement has mitigated a portion of the risk that arose due to the U.K.'s withdrawal from the EU, the overall impact on Mattel's operations is still being evaluated, including the volatility of the British pound sterling. Mattel's U.K. operations represented approximately 6% of Mattel's consolidated net sales for the first half of 2021.

Item 4. Controls and Procedures.

Evaluation of Disclosure Controls and Procedures

As of June 30, 2021, 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, as amended, 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 the Securities and Exchange Commission's rules and forms. Based on this evaluation, Ynon Kreiz, Mattel’s principal executive officer, and Anthony DiSilvestro, Mattel’s principal financial officer, concluded that these disclosure controls and procedures were effective to provide reasonable assurance as of June 30, 2021.

Changes in Internal Control over Financial Reporting

There were no changes in internal control over financial reporting that occurred during the quarter ended June 30, 2021 that have materially affected, or are reasonably likely to materially affect, Mattel’s internal control over financial reporting.

51

PART II—OTHER INFORMATION

Item 1. Legal Proceedings.

The content of Part I, Item 1 "Financial Statements—Note 21 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 the 2020 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 second quarter of 2021, 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 second quarter of 2021:

Period	Total Number of Shares (or Units) Purchased (a)	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 (b)
April 1—30	12,548	$	20.85	—	$	203,016,273
May 1—31	3,184	21.21		—	203,016,273
June 1—30	9,822	20.07		—	203,016,273
Total	25,554	$	20.60	—	$	203,016,273

 ____________________________________

(a)The total number of shares purchased represents shares withheld from employees to satisfy minimum tax withholding obligations that occur upon settlement of equity awards. These shares were not purchased as part of a publicly announced repurchase plan or program.

(b)Mattel's share repurchase program was first announced on July 21, 2003. On July 17, 2013, the Board of Directors authorized Mattel to increase its share repurchase program by $500.0 million. At June 30, 2021, share repurchase authorizations of $203.0 million had not been executed. 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.

52

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 Bylaws of Mattel, Inc.	8-K	001-05647	3.1	August 28, 2018
4.0	Specimen Stock Certificate with respect to Mattel, Inc.	10-Q	001-05647	4.0	August 3, 2007
10.1+	Fifth Amendment to Mattel, Inc. Amended and Restated 2010 Equity and Long-Term Compensation Plan	DEF 14A	001-05647	Appendix A	April 13, 2021
31.0*	Certification of Principal Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.1*	Certification of Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.0**	Certifications of Principal Executive Officer and Principal Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101.INS*	Inline XBRL Instance Document
101.SCH*	Inline XBRL Taxonomy Extension Schema Document
101.CAL*	Inline XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF*	Inline XBRL Taxonomy Extension Definition Linkbase Document
101.LAB*	Inline XBRL Taxonomy Extension Label Linkbase Document
101.PRE*	Inline XBRL Taxonomy Extension Presentation Linkbase Document
104*	The cover page from Mattel's Quarterly Report on Form 10-Q for the three months ended June 30, 2021, formatted in Inline XBRL.

______________________________________________

+	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.

53

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/ Yoon Hugh
	Yoon Hugh Senior Vice President and Corporate Controller (Duly Authorized Officer and Chief Accounting Officer)

Date: August 9, 2021

54

EX-31.0

EXHIBIT 31.0

CERTIFICATION

I, Ynon Kreiz, certify that:

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

2. Based on my knowledge, this 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:	August 9, 2021	By:	/s/    Ynon Kreiz
			Ynon Kreiz Chairman and Chief Executive Officer (Principal Executive Officer)

EX-31.1

EXHIBIT 31.1

CERTIFICATION

I, Anthony DiSilvestro, certify that:

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

2. Based on my knowledge, this 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:	August 9, 2021	By:	/s/ Anthony DiSilvestro
			Anthony DiSilvestro Chief Financial Officer (Principal Financial Officer)

EX-32

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 June 30, 2021 as filed with the Securities and Exchange Commission (the “Report”), Ynon Kreiz, Chief Executive Officer, and Anthony DiSilvestro, 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:	August 9, 2021	By:	/s/    Ynon Kreiz
			Ynon Kreiz
			Chairman and Chief Executive Officer
			/s/    Anthony DiSilvestro
			Anthony DiSilvestro
			Chief Financial Officer

XML

Cover - shares	6 Months Ended
	Jun. 30, 2021	Jul. 26, 2021
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document period end date	Jun. 30, 2021
Document Transition Report	false
Entity File Number	001-05647
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	95-1567322
Entity Address, Address Line One	333 Continental Blvd.
Entity Address, City or Town	El Segundo,
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	90245-5012
City Area Code	310
Local Phone Number	252-2000
Title of 12(b) Security	Common stock, $1.00 per share
Trading Symbol	MAT
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Small Business	false
Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		348,970,305
Amendment Flag	false
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q2
Entity Registrant Name	MATTEL INC /DE/
Entity Central Index Key	0000063276
Current Fiscal Year End Date	--12-31

XML

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020	Jun. 30, 2020
Current Assets
Cash and equivalents	$ 384,743	$ 762,181	$ 461,557
Accounts receivable, net of allowances for credit losses of $12.3 million, $18.7 million and $15.9 million, respectively	784,084	1,033,966	650,502
Inventories	818,037	528,474	727,864
Prepaid expenses and other current assets	186,965	172,070	174,218
Total current assets	2,173,829	2,496,691	2,014,141
Noncurrent Assets
Property, plant, and equipment, net	459,828	473,794	471,866
Right-of-use assets, net	343,793	291,601	282,474
Goodwill	1,392,779	1,393,834	1,382,858
Other noncurrent assets	870,829	878,970	847,366
Total Assets	5,241,058	5,534,890	4,998,705
Current Liabilities
Short-term borrowings	214	969	400,000
Accounts payable	438,913	495,363	402,220
Accrued liabilities	647,425	831,922	541,833
Income taxes payable	35,838	27,125	15,732
Total current liabilities	1,122,390	1,355,379	1,359,785
Noncurrent Liabilities
Long-term debt	2,839,119	2,854,664	2,850,841
Noncurrent lease liabilities	306,094	249,353	246,414
Other noncurrent liabilities	445,736	465,350	435,565
Total noncurrent liabilities	3,590,949	3,569,367	3,532,820
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	1,848,201	1,842,680	1,844,075
Treasury stock at cost: 92.4 million shares, 94.4 million shares and 93.2 million shares, respectively	(2,262,223)	(2,282,939)	(2,314,967)
Retained earnings	1,435,688	1,553,610	1,113,220
Accumulated other comprehensive loss	(935,316)	(944,576)	(977,597)
Total stockholders’ equity	527,719	610,144	106,100
Total Liabilities and Stockholders’ Equity	$ 5,241,058	$ 5,534,890	$ 4,998,705

XML

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions	Jun. 30, 2021	Dec. 31, 2020	Jun. 30, 2020
Statement of Financial Position [Abstract]
Accounts receivable, allowances for credit losses	$ 12.3	$ 15.9	$ 18.7
Common stock, par value (USD per share)	$ 1.00	$ 1.00	$ 1.00
Common stock authorized (in shares)	1,000,000,000.0	1,000,000,000.0	1,000,000,000.0
Common stock issued (in shares)	441,400,000	441,400,000	441,400,000
Treasury stock (in shares)	92,400,000	93,200,000	94,400,000

XML

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Income Statement [Abstract]
Net Sales	$ 1,026,366	$ 732,136	$ 1,900,558	$ 1,326,206
Cost of sales	538,361	413,225	1,000,716	747,073
Gross Profit	488,005	318,911	899,842	579,133
Advertising and promotion expenses	88,328	60,172	162,424	136,454
Other selling and administrative expenses	350,537	306,817	654,407	635,529
Operating Income (Loss)	49,140	(48,078)	83,011	(192,850)
Interest expense	38,144	49,615	168,627	98,595
Interest (income)	(584)	(1,025)	(1,403)	(3,108)
Other non-operating expense (income), net	533	2,662	(555)	5,684
Income (Loss) Before Income Taxes	11,047	(99,330)	(83,658)	(294,021)
Provision for income taxes	20,644	12,839	40,949	24,732
Income from equity method investments	4,060	1,060	6,685	1,941
Net Loss	$ (5,537)	$ (111,109)	$ (117,922)	$ (316,812)
Net Loss Per Common Share - Basic (USD per share)	$ (0.02)	$ (0.32)	$ (0.34)	$ (0.91)
Weighted average number of common shares (in shares)	349,441	346,875	349,244	346,778
Net Loss Per Common Share - Diluted (USD per share)	$ (0.02)	$ (0.32)	$ (0.34)	$ (0.91)
Weighted average number of common and potential common shares (in shares)	349,441	346,875	349,244	346,778

XML

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Statement of Comprehensive Income [Abstract]
Net Loss	$ (5,537)	$ (111,109)	$ (117,922)	$ (316,812)
Other Comprehensive Income (Loss), Net of Tax
Currency translation adjustments	20,932	26,843	(7,201)	(118,791)
Employee benefit plan adjustments	2,221	518	4,569	3,578
Net unrealized gains (losses) on available-for-sale security	1,268	(80)	3,232	115
Net unrealized gains on derivative instruments:
Unrealized holding (losses) gains	(771)	2,594	9,331	16,022
Reclassification adjustments included in net loss	2,060	(1,589)	(671)	(9,037)
Net unrealized gains on derivative instruments	1,289	1,005	8,660	6,985
Other Comprehensive Income (Loss), Net of Tax	25,710	28,286	9,260	(108,113)
Comprehensive Income (Loss)	$ 20,173	$ (82,823)	$ (108,662)	$ (424,925)

XML

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
Cash Flows From Operating Activities:
Net Loss	$ (117,922)	$ (316,812)
Adjustments to reconcile net loss to net cash flows used for operating activities:
Depreciation	72,727	81,984
Amortization	19,058	19,652
Share-based compensation	30,280	23,414
Bad debt expense	877	6,460
Inventory obsolescence	21,263	20,929
Deferred income taxes	7,588	5,784
Income from equity method investments	(6,685)	(1,941)
Loss on extinguishment of long-term borrowings	83,213	0
(Gain) loss on sale of assets/business, net	(21,839)	2,572
Changes in assets and liabilities:
Accounts receivable	239,567	248,008
Inventories	(338,313)	(244,935)
Prepaid expenses and other current assets	(14,700)	(19,423)
Accounts payable, accrued liabilities, and income taxes payable	(211,295)	(318,005)
Other, net	(5,189)	23,048
Net cash flows used for operating activities	(241,370)	(469,265)
Cash Flows From Investing Activities:
Purchases of tools, dies, and molds	(34,355)	(26,384)
Purchases of other property, plant, and equipment	(40,317)	(27,574)
Proceeds from (payments of) foreign currency forward exchange contracts, net	4,402	(21,746)
Proceeds from sale of assets/business	43,075	1,029
Other, net	0	(24)
Net cash flows used for investing activities	(27,195)	(74,699)
Cash Flows From Financing Activities:
(Payments of) proceeds from short-term borrowings, net	(755)	400,000
Payments of long-term borrowings	(1,287,022)	0
Proceeds from long-term borrowings, net	1,185,117	0
Other, net	(5,115)	(693)
Net cash flows (used for) provided by financing activities	(107,775)	399,307
Effect of Currency Exchange Rate Changes on Cash and Equivalents	(1,098)	(23,814)
Decrease in Cash and Equivalents	(377,438)	(168,471)
Cash and Equivalents at Beginning of Period	762,181	630,028
Cash and Equivalents at End of Period	$ 384,743	$ 461,557

XML

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-In Capital	Treasury Stock	Retained Earnings	Accumulated Other Comprehensive Loss
Beginning balance at Dec. 31, 2019	$ 508,564	$ 441,369	$ 1,825,569	$ (2,318,921)	$ 1,430,031	$ (869,484)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net Loss	(205,702)				(205,702)
Other comprehensive income (loss), net of tax	(136,399)					(136,399)
Issuance of treasury stock for restricted stock units vesting	(966)		(3,777)	2,811
Share-based compensation	14,275		14,275
Ending balance at Mar. 31, 2020	179,772	441,369	1,836,067	(2,316,110)	1,224,329	(1,005,883)
Beginning balance at Dec. 31, 2019	508,564	441,369	1,825,569	(2,318,921)	1,430,031	(869,484)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net Loss	(316,812)
Other comprehensive income (loss), net of tax	(108,113)
Ending balance at Jun. 30, 2020	106,100	441,369	1,844,075	(2,314,967)	1,113,220	(977,597)
Beginning balance at Mar. 31, 2020	179,772	441,369	1,836,067	(2,316,110)	1,224,329	(1,005,883)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net Loss	(111,109)				(111,109)
Other comprehensive income (loss), net of tax	28,286					28,286
Issuance of treasury stock for restricted stock units vesting	(111)		(944)	833
Deferred compensation	124		(186)	310
Share-based compensation	9,138		9,138
Ending balance at Jun. 30, 2020	106,100	441,369	1,844,075	(2,314,967)	1,113,220	(977,597)
Beginning balance at Dec. 31, 2020	610,144	441,369	1,842,680	(2,282,939)	1,553,610	(944,576)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net Loss	(112,385)				(112,385)
Other comprehensive income (loss), net of tax	(16,450)					(16,450)
Issuance of treasury stock for stock option exercises	1,110		(803)	1,913
Issuance of treasury stock for restricted stock units vesting	(6,966)		(20,031)	13,065
Share-based compensation	15,112		15,112
Ending balance at Mar. 31, 2021	490,565	441,369	1,836,958	(2,267,961)	1,441,225	(961,026)
Beginning balance at Dec. 31, 2020	610,144	441,369	1,842,680	(2,282,939)	1,553,610	(944,576)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net Loss	(117,922)
Other comprehensive income (loss), net of tax	9,260
Ending balance at Jun. 30, 2021	527,719	441,369	1,848,201	(2,262,223)	1,435,688	(935,316)
Beginning balance at Mar. 31, 2021	490,565	441,369	1,836,958	(2,267,961)	1,441,225	(961,026)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net Loss	(5,537)				(5,537)
Other comprehensive income (loss), net of tax	25,710					25,710
Issuance of treasury stock for stock option exercises	2,154		(676)	2,830
Issuance of treasury stock for restricted stock units vesting	(529)		(3,212)	2,683
Deferred compensation	188		(37)	225
Share-based compensation	15,168		15,168
Ending balance at Jun. 30, 2021	$ 527,719	$ 441,369	$ 1,848,201	$ (2,262,223)	$ 1,435,688	$ (935,316)

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Basis of Presentation

6 Months Ended

Jun. 30, 2021

Accounting Policies [Abstract]

Basis of Presentation

Basis of Presentation

The accompanying unaudited consolidated financial statements and related disclosures have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") applicable to interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. In the opinion of management, all adjustments, consisting of only those of a normal recurring nature, considered necessary for a fair statement of the financial position and interim results of Mattel, Inc. and its subsidiaries ("Mattel") as of and for the periods presented have been included.

The December 31, 2020 balance sheet data was derived from audited financial statements; however, the accompanying interim notes to the consolidated financial statements do not include all of the annual disclosures required by GAAP. As Mattel's business is seasonal, results for interim periods are not necessarily indicative of those that may be expected for a full year. The financial information included herein should be read in conjunction with Mattel's consolidated financial statements and related notes in the 2020 Annual Report on Form 10-K.

Certain prior period amounts have been reclassified to conform to the current period presentation.

Revision of Previously Issued Consolidated Financial Statements

During the quarter ended June 30, 2021, Mattel identified a misstatement in its accounting for inventory tooling expenses, which were expensed to cost of sales rather than first being capitalized into the cost of inventory, which resulted in an understatement of inventory balances and a misstatement of cost of sales. Mattel also identified a misstatement related to the timing of disbursements for certain capital expenditures, that resulted in a cash flow misclassification between operating activities and investing activities. Mattel evaluated the misstatements and concluded that the misstatements were not material, either individually or in aggregate, to its current or previously issued consolidated financial statements.

To correct the immaterial misstatements, Mattel has elected to revise its previously issued consolidated financial statements as of December 31, 2020 and 2019, and for each of the three years ended December 31, 2020, 2019, and 2018 and its unaudited consolidated financial statements as of and for the quarters and year-to-date periods ended March 31, 2020 and 2021, June 30, 2020, and September 30, 2020. The revision of the historical consolidated financial statements also includes the correction of other immaterial misstatements in its consolidated statement of operations that Mattel had previously recorded as out of period adjustments, as well as other previously identified balance sheet misclassifications. Mattel had previously determined that these misstatements did not, either individually or in the aggregate, result in a material misstatement of its previously issued consolidated financial statements and reached the same conclusion when aggregating with the recently identified misstatements. Further information regarding the misstatements and related revision is included in Note 24 - Revision for Immaterial Misstatements.

Accordingly, the accompanying financial statements and relevant footnotes to the consolidated financial statements in this Quarterly Report on Form 10-Q have been revised to correct for such misstatements. Mattel will present the revision of its previously issued consolidated financial statements as of December 31, 2020 and for the years ended December 31, 2020 and 2019 in connection with the future filing of its 2021 Annual Report on Form 10-K. Additionally, Mattel will present the revision of its previously issued consolidated financial statements as of and for the three months ended March 31, 2021 and as of and for the three and nine months ended September 30, 2020 in connection with the future filings of its Quarterly Reports on Form 10-Q.

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Accounts Receivable	6 Months Ended
	Jun. 30, 2021
Receivables [Abstract]
Accounts Receivable	Accounts Receivable Mattel estimates current expected credit losses based on collection history and management’s assessment of the current economic trends, business environment, customers’ financial condition, and accounts receivable aging that may impact the level of future credit losses. Accounts receivable are net of allowances for credit losses of $12.3 million, $18.7 million, and $15.9 million as of June 30, 2021, June 30, 2020, and December 31, 2020, respectively.

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Inventories

6 Months Ended

Jun. 30, 2021

Inventory Disclosure [Abstract]

Inventories

Inventories

Inventories include the following:

	June 30, 2021		June 30, 2020		December 31, 2020
	(In thousands)
Raw materials and work in process	$	169,794	$	139,256	$	110,010
Finished goods	648,243		588,608		418,464
	$	818,037	$	727,864	$	528,474

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Property, Plant, and Equipment

6 Months Ended

Jun. 30, 2021

Property, Plant and Equipment [Abstract]

Property, Plant, and Equipment

Property, Plant, and Equipment

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

	June 30, 2021		June 30, 2020		December 31, 2020
	(In thousands)
Land	$	21,969	$	24,938	$	24,913
Buildings	321,540		332,067		335,407
Machinery and equipment	768,758		753,388		772,349
Software	348,983		342,150		344,268
Tools, dies, and molds	614,597		601,811		607,915
Leasehold improvements	116,473		143,427		131,578
	2,192,320		2,197,781		2,216,430
Less: accumulated depreciation	(1,732,492)		(1,725,915)		(1,742,636)
	$	459,828	$	471,866	$	473,794

During the three months ended March 31, 2021, Mattel completed the sale of a manufacturing plant based in Mexico, which included land and buildings, resulting in a pre-tax gain of $15.8 million. The assets sold were previously designated as held for sale, and included within property, plant, and equipment, net in the consolidated balance sheets as of December 31, 2020 and June 30, 2020.

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Goodwill

6 Months Ended

Jun. 30, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill

Goodwill

Goodwill is allocated to various reporting units, which are at the operating segment level, for the purpose of evaluating whether goodwill is impaired. Mattel's reporting units are: (i) North America, (ii) International, and (iii) American Girl. Components of the operating segments have been aggregated into a single reporting unit as the components have similar economic characteristics. The similar economic characteristics include the nature of the products, the nature of the production processes, the customers, and the manner in which the products are distributed. Mattel tests its goodwill for impairment annually in the third quarter and whenever events or changes in circumstances indicate that the carrying value of a reporting unit may exceed its fair value.

The change in the carrying amount of goodwill by operating segment for the six months ended June 30, 2021 is shown below. Brand-specific goodwill held by foreign subsidiaries is allocated to the North America segment, thereby causing a foreign currency translation impact. During the first quarter of 2021, Mattel sold its arts, crafts, and stationery business resulting in a reduction of goodwill of approximately $2 million.

	December 31, 2020		Dispositions		Currency Exchange Rate Impact		June 30, 2021
	(In thousands)
North America	$	733,401	$	(1,290)	$	371	$	732,482
International	452,862		(1,056)		920		452,726
American Girl	207,571		—		—		207,571
	$	1,393,834	$	(2,346)	$	1,291	$	1,392,779

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Other Noncurrent Assets

6 Months Ended

Jun. 30, 2021

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

Other Noncurrent Assets

Other Noncurrent Assets

Other noncurrent assets include the following: 

	June 30, 2021		June 30, 2020		December 31, 2020
	(In thousands)
Identifiable intangible assets (net of accumulated amortization of $306.0 million, $267.7 million, and $286.9 million, respectively)	$	500,811	$	524,153	$	518,190
Deferred income taxes	73,744		59,827		72,682

Mattel's amortizable intangible assets primarily consist of trademarks. Mattel tests its amortizable intangible assets for impairment whenever events or changes in circumstances indicate that the carrying value of the asset may not be recoverable. Mattel's amortizable intangible assets were not impaired during the three and six months ended June 30, 2021 and 2020.

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Accrued Liabilities

6 Months Ended

Jun. 30, 2021

Payables and Accruals [Abstract]

Accrued Liabilities

Accrued Liabilities

Accrued liabilities include the following:

	June 30, 2021		June 30, 2020		December 31, 2020
	(In thousands)
Current lease liabilities	$	71,481	$	81,225	$	79,540
Incentive compensation	69,850		46,177		126,601
Advertising and promotion	61,370		53,025		163,181
Royalties	34,165		30,998		54,442

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Seasonal Financing

6 Months Ended

Jun. 30, 2021

Debt Disclosure [Abstract]

Seasonal Financing

Seasonal Financing

On December 20, 2017, Mattel entered into a syndicated facility agreement, which was subsequently amended in 2018, 2019, and 2021 (as amended, the "Credit Agreement"), as a borrower (in such capacity, the "Borrower") and guarantor thereunder, along with certain of the Borrower's domestic and foreign subsidiaries as additional borrowers and/or guarantors thereunder.

On March 19, 2021, Mattel entered into the fourth amendment to the Credit Agreement, which amended certain terms, including, but not limited to, certain components of the borrowing base, a reduction of the aggregate principal commitments of the senior secured revolving credit facilities (the "senior secured revolving credit facilities") from $1.60 billion to $1.40 billion, and an extension of the maturity date from November 18, 2022 to March 19, 2024.

The senior secured revolving credit facilities consist of (i) an asset based lending facility with aggregate commitments up to $1.11 billion, subject to borrowing base capacity, secured by substantially all of the accounts receivable and inventory of the Borrower and certain of its subsidiaries who are borrowers and/or guarantors under the Credit Agreement, as well as (ii) a revolving credit facility with $294.0 million in aggregate commitments secured by certain fixed assets and intellectual property of the U.S. borrowers under the Credit Agreement, and certain equity interests in the borrower and guarantor subsidiaries under the Credit Agreement.

Borrowings under the senior secured revolving credit facilities (i) are limited by jurisdiction-specific borrowing base calculations based on the sum of specified percentages of eligible accounts receivable, eligible inventory and certain fixed assets and intellectual property, as applicable, minus the amount of any applicable reserves, and (ii) bear interest at a floating rate, which can be either, at the Borrower's option, (a) an adjusted LIBOR rate plus an applicable margin ranging from 1.25% to 1.75% per annum or (b) an alternate base rate plus an applicable margin ranging from 0.25% to 0.75% per annum, in each case, such applicable margins to be determined based on the Borrower's average borrowing availability remaining under the senior secured revolving credit facilities.

In addition to paying interest on the outstanding principal under the senior secured revolving credit facilities, the Borrower is required to pay (i) an unused line fee per annum of the average daily unused portion of the senior secured revolving credit facilities, (ii) a letter of credit fronting fee based on a percentage of the aggregate face amount of outstanding letters of credit, and (iii) certain other customary fees and expenses of the lenders and agents.

Mattel had no borrowings under the senior secured revolving credit facilities as of June 30, 2021, $400.0 million of borrowings as of June 30, 2020, and no borrowings under the senior secured revolving credit facilities as of December 31, 2020. Outstanding letters of credit under the senior secured revolving credit facilities totaled approximately $10 million, $13 million, and $11 million as of June 30, 2021, June 30, 2020, and December 31, 2020, respectively.

As of June 30, 2021, Mattel was in compliance with all covenants contained in the Credit Agreement. The Credit Agreement is a material agreement, and failure to comply with the covenants may result in an event of default under the terms of the senior secured revolving credit facilities. If Mattel were to default under the terms of the senior secured revolving credit facilities, its ability to meet its seasonal financing requirements could be adversely affected.

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Long-Term Debt

6 Months Ended

Jun. 30, 2021

Debt Disclosure [Abstract]

Long-Term Debt

Long-Term Debt

Long-term debt includes the following:

	June 30, 2021		June 30, 2020		December 31, 2020
	(In thousands)
2010 Senior Notes due October 2040	$	250,000	$	250,000	$	250,000
2011 Senior Notes due November 2041	300,000		300,000		300,000
2013 Senior Notes due March 2023	250,000		250,000		250,000
2017/2018 Senior Notes due December 2025	275,000		1,500,000		1,500,000
2019 Senior Notes due December 2027	600,000		600,000		600,000
2021 Senior Notes due April 2026	600,000		—		—
2021 Senior Notes due April 2029	600,000		—		—
Debt issuance costs and debt discount	(35,881)		(49,159)		(45,336)
	$	2,839,119	$	2,850,841	$	2,854,664

On March 19, 2021, Mattel issued (i) $600 million aggregate principal amount of 3.375% Senior Notes due 2026 (the "2026 Notes") and (ii) $600 million aggregate principal amount of 3.750% Senior Notes due 2029 (the "2029 Notes" and, together with the 2026 Notes, the "Notes"). The 2026 Notes will mature on April 1, 2026 and the 2029 Notes will mature on April 1, 2029, unless earlier redeemed in accordance with their respective terms. The Notes are guaranteed by Mattel’s existing and, subject to certain exceptions, future wholly owned domestic restricted subsidiaries that guarantee Mattel’s senior secured revolving credit facilities or certain other indebtedness.

The net proceeds from the offering, together with cash on hand, were used to redeem $1,225 million in aggregate principal amount of Mattel’s outstanding 6.750% Senior Notes due December 2025 (the "2025 Notes") and pay related prepayment premiums and transaction fees and expenses. As a result of the partial redemption of the 2025 Notes, Mattel incurred a loss on extinguishment of $83.2 million, comprised of $62.0 million of prepayment premium costs and a $21.2 million write-off of the unamortized debt issuance costs, which was recorded within interest expense in the consolidated statements of operations. Following completion of the partial redemption of the 2025 Notes, $275 million aggregate principal amount of the 2025 Notes remained outstanding.

On June 21, 2021, Mattel issued a conditional notice of redemption to holders of its 2025 Notes for the redemption of the remaining $275 million outstanding aggregate principal amount of the 2025 Notes on July 1, 2021 (the "Redemption Date") at a price equal to 105.063% of the principal amount of the 2025 Notes redeemed plus accrued and unpaid interest to, but excluding, the Redemption Date. The conditional notice was subject to the condition precedent that Mattel receive funds from the senior secured revolving credit facilities sufficient to consummate the redemption (the "Condition Precedent") and provided Mattel the right to delay the Redemption Date or modify or rescind such notice in the event the Condition Precedent was not satisfied or waived by the Redemption Date, which, consequently, gave Mattel the right to defer settlement of the 2025 Notes for a period greater than one year after June 30, 2021. The Condition Precedent was satisfied and Mattel fully redeemed the 2025 Notes on the Redemption Date using cash on hand and funds from the senior secured revolving credit facilities.

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Other Noncurrent Liabilities

6 Months Ended

Jun. 30, 2021

Payables and Accruals [Abstract]

Other Noncurrent Liabilities

Other Noncurrent Liabilities

Other noncurrent liabilities include the following:

	June 30, 2021		June 30, 2020		December 31, 2020
	(In thousands)
Benefit plan liabilities	$	210,048	$	209,501	$	225,957
Deferred income tax liability	69,374		58,007		60,892
Noncurrent income tax payable	67,161		71,037		71,342

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Accumulated Other Comprehensive Income (Loss)

6 Months Ended

Jun. 30, 2021

Equity [Abstract]

Accumulated Other Comprehensive Income (Loss)

Accumulated Other Comprehensive Income (Loss)

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

	For the Three Months Ended June 30, 2021
	Derivative Instruments		Available-for-Sale Security		Employee Benefit Plans		Currency Translation Adjustments		Total
	(In thousands)
Accumulated Other Comprehensive Loss, Net of Tax, as of March 31, 2021	$	(7,998)	$	(5,558)	$	(184,506)	$	(762,964)	$	(961,026)
Other comprehensive (loss) income before reclassifications	(771)		1,268		(254)		20,932		21,175
Amounts reclassified from accumulated other comprehensive loss	2,060		—		2,475		—		4,535
Net increase in other comprehensive (loss) income	1,289		1,268		2,221		20,932		25,710
Accumulated Other Comprehensive Loss, Net of Tax, as of June 30, 2021	$	(6,709)	$	(4,290)	$	(182,285)	$	(742,032)	$	(935,316)

	For the Six Months Ended June 30, 2021
	Derivative Instruments		Available-for-Sale Security		Employee Benefit Plans		Currency Translation Adjustments		Total
	(In thousands)
Accumulated Other Comprehensive Loss, Net of Tax, as of December 31, 2020	$	(15,369)	$	(7,522)	$	(186,854)	$	(734,831)	$	(944,576)
Other comprehensive income (loss) before reclassifications	9,331		3,232		(259)		(7,201)		5,103
Amounts reclassified from accumulated other comprehensive loss	(671)		—		4,828		—		4,157
Net increase (decrease) in other comprehensive income (loss)	8,660		3,232		4,569		(7,201)		9,260
Accumulated Other Comprehensive Loss, Net of Tax, as of June 30, 2021	$	(6,709)	$	(4,290)	$	(182,285)	$	(742,032)	$	(935,316)

	For the Three Months Ended June 30, 2020
	Derivative Instruments		Available-for-Sale Security		Employee Benefit Plans		Currency Translation Adjustments		Total
	(In thousands)
Accumulated Other Comprehensive Income (Loss), Net of Tax, as of March 31, 2020	$	17,021	$	(8,065)	$	(166,797)	$	(848,042)	$	(1,005,883)
Other comprehensive income (loss) before reclassifications	2,594		(80)		(1,203)		26,843		28,154
Amounts reclassified from accumulated other comprehensive income (loss)	(1,589)		—		1,721		—		132
Net increase (decrease) in other comprehensive income (loss)	1,005		(80)		518		26,843		28,286
Accumulated Other Comprehensive Income (Loss), Net of Tax, as of June 30, 2020	$	18,026	$	(8,145)	$	(166,279)	$	(821,199)	$	(977,597)

	For the Six Months Ended June 30, 2020
	Derivative Instruments		Available-for-Sale Security		Employee Benefit Plans		Currency Translation Adjustments		Total
	(In thousands)
Accumulated Other Comprehensive Income (Loss), Net of Tax, as of December 31, 2019	$	11,041	$	(8,260)	$	(169,857)	$	(702,408)	$	(869,484)
Other comprehensive income (loss) before reclassifications	16,022		115		499		(118,791)		(102,155)
Amounts reclassified from accumulated other comprehensive income (loss)	(9,037)		—		3,079		—		(5,958)
Net increase (decrease) in other comprehensive income (loss)	6,985		115		3,578		(118,791)		(108,113)
Accumulated Other Comprehensive Income (Loss), Net of Tax, as of June 30, 2020	$	18,026	$	(8,145)	$	(166,279)	$	(821,199)	$	(977,597)

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

	For the Three Months Ended
	June 30, 2021		June 30, 2020		Statements of Operations Classification
	(In thousands)
Derivative Instruments
(Loss) gain on foreign currency forward exchange and other contracts	$	(1,969)	$	1,512	Cost of sales
Tax effect of net (loss) gain	(91)		77		Provision for income taxes
	$	(2,060)	$	1,589	Net loss
Employee Benefit Plans
Amortization of prior service credit (a)	$	390	$	466	Other non-operating expense (income), net
Recognized actuarial loss (a)	(2,773)		(2,337)		Other non-operating expense (income), net
	(2,383)		(1,871)
Tax effect of net (loss) gain	(92)		150		Provision for income taxes
	$	(2,475)	$	(1,721)	Net loss

	For the Six Months Ended
	June 30, 2021		June 30, 2020		Statements of Operations Classification
	(In thousands)
Derivative Instruments
Gain on foreign currency forward exchange and other contracts	$	870	$	8,942	Cost of sales
Tax effect of net (loss) gain	(199)		95		Provision for income taxes
	$	671	$	9,037	Net loss
Employee Benefit Plans
Amortization of prior service credit (a)	$	789	$	932	Other non-operating expense (income), net
Recognized actuarial loss (a)	(5,555)		(4,677)		Other non-operating expense (income), net
	(4,766)		(3,745)
Tax effect of net (loss) gain	(62)		666		Provision for income taxes
	$	(4,828)	$	(3,079)	Net loss

_______________________________________

(a)The amortization of prior service credit and recognized actuarial loss are included in the computation of net periodic benefit cost. Refer to "Note 16 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 U.S. dollar. The translation of its net investments in subsidiaries with non-U.S. dollar functional currencies subjects Mattel to the impact of foreign currency exchange rate fluctuations in its results of operations and financial position. Assets and liabilities of subsidiaries with non-U.S. dollar functional currencies are translated into U.S. dollars at fiscal period-end exchange rates. Income and expense items are translated at weighted-average exchange rates prevailing during the fiscal period. The resulting currency translation adjustments are recorded as a component of accumulated other comprehensive loss within stockholders' equity. Currency translation adjustments resulted in a net loss of $7.2 million for the six months ended June 30, 2021, primarily due to the weakening of the Turkish lira against the U.S. dollar. Currency translation adjustments resulted in a net loss of $118.8 million for the six months ended June 30, 2020, primarily due to the weakening of the Mexican peso, Brazilian real, British pound sterling, and the Russian ruble against the U.S. dollar

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Foreign Currency Transaction Exposure

6 Months Ended

Jun. 30, 2021

Foreign Currency [Abstract]

Foreign Currency Transaction Exposure

Foreign Currency Transaction ExposureCurrency exchange rate fluctuations impact Mattel's results of operations and cash flows. Mattel's currency transaction exposures include gains and losses realized on unhedged inventory purchases and unhedged receivables and payables balances that are denominated in a currency other than the applicable functional currency. Gains and losses on unhedged inventory purchases and other transactions associated with operating activities are recorded in the components of operating income (loss) in the consolidated statements of operations. Gains and losses on unhedged intercompany loans and advances are recorded as a component of other non-operating expense (income), net in the consolidated statements of operations in the period in which the currency exchange rate changes. Inventory transactions denominated in the Euro, Mexican peso, Australian dollar, British pound sterling, Canadian dollar, Russian ruble, and Brazilian real were the primary transactions that caused foreign currency transaction exposure for Mattel during the six months ended June 30, 2021.

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

	For the Three Months Ended
	June 30, 2021		June 30, 2020		Statements of Operations Classification
	(In thousands)
Currency transaction gains (losses)	$	1,069	$	(4,328)	Operating income/loss
Currency transaction (losses)	(1,501)		(1,603)		Other non-operating income/expense, net
Currency transaction (losses), net	$	(432)	$	(5,931)

	For the Six Months Ended
	June 30, 2021		June 30, 2020		Statements of Operations Classification
	(In thousands)
Currency transaction (losses)	$	(2,503)	$	(5,917)	Operating income/loss
Currency transaction (losses)	(4,809)		(2,435)		Other non-operating income/expense, net
Currency transaction (losses), net	$	(7,312)	$	(8,352)

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Derivative Instruments

6 Months Ended

Jun. 30, 2021

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments

Derivative InstrumentsMattel seeks to mitigate its exposure to foreign currency transaction risk by monitoring its foreign currency transaction exposure for the year and partially hedging such exposure using foreign currency forward exchange contracts. Mattel uses foreign currency forward exchange contracts as cash flow hedges primarily to hedge its purchases and sales of inventory denominated in foreign currencies. These contracts generally have maturity dates of up to 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 (loss) ("OCI"). Realized gains and losses for these contracts are recorded in the consolidated statements of operations in the period in which the inventory is sold to customers. Mattel uses foreign currency forward exchange contracts to hedge intercompany loans and advances denominated in foreign currencies. Due to the short-term nature of the contracts involved, Mattel does not use hedge accounting for these contracts, and as such, changes in fair value are recorded in the period of change in the consolidated statements of operations. Mattel utilizes derivative contracts to hedge certain purchases of commodities, which were not material. As of June 30, 2021, June 30, 2020, and December 31, 2020, Mattel held foreign currency forward exchange contracts and other commodity derivative instruments, with notional amounts of $1.29 billion, $1.17 billion, and $855.0 million, respectively.

The following tables present Mattel's derivative assets and liabilities:

	Derivative Assets
	Balance Sheet Classification	Fair Value
		June 30, 2021		June 30, 2020		December 31, 2020
		(In thousands)
Derivatives designated as hedging instruments
Foreign currency forward exchange and other contracts	Prepaid expenses and other current assets	$	5,405	$	11,731	$	3,641
Foreign currency forward exchange and other contracts	Other noncurrent assets	1,774		1,237		50
Total derivatives designated as hedging instruments		$	7,179	$	12,968	$	3,691
Derivatives not designated as hedging instruments
Foreign currency forward exchange and other contracts	Prepaid expenses and other current assets	$	1,624	$	786	$	1,982
Foreign currency forward exchange and other contracts	Other noncurrent assets	—		—		38
Total derivatives not designated as hedging instruments		$	1,624	$	786	$	2,020
		$	8,803	$	13,754	$	5,711
	Derivative Liabilities
	Balance Sheet Classification	Fair Value
		June 30, 2021		June 30, 2020		December 31, 2020
		(In thousands)
Derivatives designated as hedging instruments
Foreign currency forward exchange and other contracts	Accrued liabilities	$	10,774	$	1,973	$	20,330
Foreign currency forward exchange and other contracts	Other noncurrent liabilities	270		1,241		4,361
Total derivatives designated as hedging instruments		$	11,044	$	3,214	$	24,691
Derivatives not designated as hedging instruments
Foreign currency forward exchange and other contracts	Accrued liabilities	$	5,187	$	5,280	$	803
Foreign currency forward exchange and other contracts	Other noncurrent liabilities	—		185		—
Total derivatives not designated as hedging instruments		$	5,187	$	5,465	$	803
		$	16,231	$	8,679	$	25,494

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

	Derivatives Designated As Hedging Instruments
	For the Three Months Ended
	June 30, 2021		June 30, 2020		Statements of Operations Classification
	(In thousands)
Foreign currency forward exchange contracts:
Amount of (losses) gains recognized in OCI	$	(771)	$	2,594
Amount of (losses) gains reclassified from accumulated OCI to consolidated statements of operations	(2,060)		1,589		Cost of sales

	Derivatives Designated As Hedging Instruments
	For the Six Months Ended
	June 30, 2021		June 30, 2020		Statements of Operations Classification
	(In thousands)
Foreign currency forward exchange contracts:
Amount of gains recognized in OCI	$	9,331	$	16,022
Amount of gains reclassified from accumulated OCI to consolidated statements of operations	671		9,037		Cost of sales

The net (losses) gains reclassified from accumulated other comprehensive loss to the consolidated statements of operations during the three and six months ended June 30, 2021 and 2020, respectively, were offset by the changes in cash flows associated with the underlying hedged transactions.

	Derivatives Not Designated As Hedging Instruments
	For the Three Months Ended
	June 30, 2021		June 30, 2020		Statements of Operations Classification
	(In thousands)
Amount of net gains recognized in the Statements of Operations
Foreign currency forward exchange and other contract gains	$	7,673	$	8,121	Other non-operating expense (income), net
Foreign currency forward exchange and other contract gains	—		—		Cost of sales
	$	7,673	$	8,121

	Derivatives Not Designated As Hedging Instruments
	For the Six Months Ended
	June 30, 2021		June 30, 2020		Statements of Operations Classification
	(In thousands)
Amount of net losses recognized in the Statements of Operations
Foreign currency forward exchange and other contract (losses)	$	(963)	$	(30,247)	Other non-operating expense (income), net
Foreign currency forward exchange and other contract gains	639		—		Cost of sales
	$	(324)	$	(30,247)

The net losses recognized in the consolidated statements of operations during the three and six months ended June 30, 2021 and June 30, 2020, respectively, were offset by foreign currency transaction gains and losses on the related hedged balances.

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Fair Value Measurements

6 Months Ended

Jun. 30, 2021

Fair Value Disclosures [Abstract]

Fair Value Measurements

Fair Value Measurements

The following tables present information about Mattel's assets and liabilities measured and reported in the financial statements at fair value on a recurring basis as of June 30, 2021, June 30, 2020, and December 31, 2020 and indicate the fair value hierarchy of the valuation techniques utilized to determine such fair value. The three levels of the fair value hierarchy are as follows:

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

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

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

Mattel's financial assets and liabilities include the following:

	June 30, 2021
	Level 1		Level 2		Level 3		Total
	(In thousands)
Assets:
Foreign currency forward exchange contracts and other (a)	$	—	$	8,803	$	—	$	8,803
Available-for-sale (b)	7,500		—		—		7,500
Total assets	$	7,500	$	8,803	$	—	$	16,303
Liabilities:
Foreign currency forward exchange contracts and other (a)	$	—	$	16,231	$	—	$	16,231
	June 30, 2020
	Level 1		Level 2		Level 3		Total
	(In thousands)
Assets:
Foreign currency forward exchange contracts and other (a)	$	—	$	13,754	$	—	$	13,754
Available-for-sale (b)	3,645		—		—		3,645
Total assets	$	3,645	$	13,754	$	—	$	17,399
Liabilities:
Foreign currency forward exchange contracts and other (a)	$	—	$	8,679	$	—	$	8,679
	December 31, 2020
	Level 1		Level 2		Level 3		Total
	(In thousands)
Assets:
Foreign currency forward exchange contracts and other (a)	$	—	$	5,711	$	—	$	5,711
Available-for-sale (b)	4,268		—		—		4,268
Total assets	$	4,268	$	5,711	$	—	$	9,979
Liabilities:
Foreign currency forward exchange contracts and other (a)	$	—	$	25,494	$	—	$	25,494

 ____________________________________________

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

(b)The fair value of the available-for-sale security is based on the quoted price on an active public exchange.

Other Financial Instruments

Mattel's financial instruments include cash and equivalents, accounts receivable and payable, accrued liabilities, short-term borrowings, and long-term debt. The fair values of these instruments, excluding long-term debt, approximate their carrying values because of their short-term nature. Cash and equivalents are classified as Level 1 and all other financial instruments are classified as Level 2 within the fair value hierarchy.

The estimated fair value of Mattel's long-term debt was $3.09 billion (compared to a carrying value of $2.88 billion) as of June 30, 2021, $2.87 billion (compared to a carrying value of $2.90 billion) as of June 30, 2020, and $3.11 billion (compared to a carrying value of $2.90 billion) as of December 31, 2020. 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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Earnings Per Share

6 Months Ended

Jun. 30, 2021

Earnings Per Share [Abstract]

Earnings Per Share

Earnings Per Share

The following table reconciles basic and diluted earnings per common share for the three and six months ended June 30, 2021 and 2020: 

	For the Three Months Ended				For the Six Months Ended
	June 30, 2021		June 30, 2020		June 30, 2021		June 30, 2020
	(In thousands, except per share amounts)
Basic:
Net loss	$	(5,537)	$	(111,109)	$	(117,922)	$	(316,812)
Weighted-average number of common shares	349,441		346,875		349,244		346,778
Basic net loss per common share	$	(0.02)	$	(0.32)	$	(0.34)	$	(0.91)
Diluted:
Net loss	$	(5,537)	$	(111,109)	$	(117,922)	$	(316,812)
Weighted-average number of common shares	349,441		346,875		349,244		346,778
Dilutive stock options and restricted stock units ("RSUs") (a)	—		—		—		—
Weighted-average number of common and potential common shares	349,441		346,875		349,244		346,778
Diluted net loss per common share	$	(0.02)	$	(0.32)	$	(0.34)	$	(0.91)

 _______________________________________

(a)Mattel was in a net loss position for the three and six months ended June 30, 2021 and 2020, and, accordingly, all outstanding nonqualified stock options and RSUs were excluded from the calculation of diluted net loss per common share because their effect would be antidilutive.

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Employee Benefit Plans

6 Months Ended

Jun. 30, 2021

Retirement Benefits [Abstract]

Employee Benefit Plans

Employee Benefit Plans

Mattel and certain of its subsidiaries have qualified and nonqualified retirement plans covering substantially all employees of these companies, which are more fully described in Part II, Item 8 "Financial Statements and Supplementary Data—Note 4 to the Consolidated Financial Statements–Employee Benefit Plans" in the 2020 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				For the Six Months Ended
	June 30, 2021		June 30, 2020		June 30, 2021		June 30, 2020
	(In thousands)				(In thousands)
Service cost	$	1,293	$	1,112	$	2,586	$	2,221
Interest cost	2,530		3,737		5,070		7,518
Expected return on plan assets	(4,637)		(4,902)		(9,264)		(9,823)
Amortization of prior service cost	119		43		230		86
Recognized actuarial loss	2,775		2,356		5,560		4,715
	$	2,080	$	2,346	$	4,182	$	4,717

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

	For the Three Months Ended				For the Six Months Ended
	June 30, 2021		June 30, 2020		June 30, 2021		June 30, 2020
	(In thousands)				(In thousands)
Interest cost	$	19	$	35	$	39	$	70
Amortization of prior service credit	(509)		(509)		(1,019)		(1,018)
Recognized actuarial gain	(2)		(19)		(5)		(38)
	$	(492)	$	(493)	$	(985)	$	(986)

During the six months ended June 30, 2021, Mattel made cash contributions totaling approximately $4 million related to its defined benefit pension and postretirement benefit plans. During the remainder of 2021, Mattel expects to make additional cash contributions of approximately $13 million.

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Share-Based Payments

6 Months Ended

Jun. 30, 2021

Share-based Payment Arrangement [Abstract]

Share-Based Payments

Share-Based Payments

Mattel has various stock compensation plans, which are more fully described in Part II, Item 8 "Financial Statements and Supplementary Data—Note 8 to the Consolidated Financial Statements—Share-Based Payments" in the 2020 Annual Report on Form 10-K. Under the Mattel, Inc. Amended and Restated 2010 Equity and Long-Term Compensation Plan, Mattel has the ability to grant nonqualified stock options, incentive stock options, stock appreciation rights, restricted stock, RSUs, performance awards, dividend equivalent rights, and shares of common stock to officers, employees, and other persons providing services to Mattel. Stock options are granted with exercise prices at the fair market value of Mattel's common stock on the applicable grant date and expire no later than ten years from the date of grant. Stock options, RSUs, and performance awards generally provide for vesting over, or at the end of, a period of three years from the date of grant.

As of June 30, 2021, three long-term incentive programs were in place with the following performance cycles: (i) a January 1, 2019–December 31, 2021 performance cycle, (ii) a January 1, 2020–December 31, 2022 performance cycle, and (iii) a January 1, 2021–December 31, 2023 performance cycle.

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

	For the Three Months Ended				For the Six Months Ended
	June 30, 2021		June 30, 2020		June 30, 2021		June 30, 2020
	(In thousands)
Stock option compensation expense	$	2,662	$	2,376	$	5,444	$	5,507
RSU compensation expense	7,673		6,588		14,031		13,950
Performance award compensation expense	4,833		174		10,805		3,957
	$	15,168	$	9,138	$	30,280	$	23,414

As of June 30, 2021, total unrecognized compensation expense related to unvested share-based payments totaled $66.7 million and is expected to be recognized over a weighted-average period of 1.9 years.

Mattel uses treasury shares purchased under its share repurchase program to satisfy stock option exercises and the vesting of RSUs and performance awards. For the six months ended June 30, 2021, cash received for stock option exercises was $3.3 million. For the six months ended June 30, 2020, no cash was received for stock option exercises.

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Other Selling and Administrative Expenses

6 Months Ended

Jun. 30, 2021

Other Income and Expenses [Abstract]

Other Selling and Administrative Expenses

Other Selling and Administrative Expenses

Other selling and administrative expenses include the following:

	For the Three Months Ended				For the Six Months Ended
	June 30, 2021		June 30, 2020		June 30, 2021		June 30, 2020
	(In thousands)
Design and development	$	46,747	$	46,486	$	90,728	$	91,113
Identifiable intangible asset amortization	9,544		9,687		19,058		19,652

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Restructuring Charges

6 Months Ended

Jun. 30, 2021

Restructuring and Related Activities [Abstract]

Restructuring Charges

Restructuring Charges

Optimizing for Growth (formerly Capital Light)

On February 9, 2021, Mattel announced the Optimizing for Growth program, a multi-year cost savings program which integrates and expands upon the previously announced Capital Light program (the "Program").

In connection with the Program, Mattel recorded severance and other restructuring costs in the following cost and expense categories within the consolidated statements of operations:

	For the Three Months Ended				For the Six Months Ended
	June 30, 2021		June 30, 2020		June 30, 2021		June 30, 2020
	(In thousands)
Cost of sales (a)	$	(151)	$	1,407	$	1,782	$	4,464
Other selling and administrative expenses (b)	11,444		1,374		17,154		4,120
	$	11,293	$	2,781	$	18,936	$	8,584

 _______________________________________

(a)Severance and other restructuring costs recorded within cost of sales in the consolidated statements of operations include charges associated with the consolidation of manufacturing facilities.

(b)Severance and other restructuring costs recorded within other selling and administrative expenses in the consolidated statements of operations are included in corporate and other expense in "Note 22 to the Consolidated Financial Statements—Segment Information."

The following table summarizes Mattel's severance and other restructuring charges activity related to the Program for the six months ended June 30, 2021:

	Liability at December 31, 2020		Charges (a)		Payments/Utilization		Liability at June 30, 2021
	(In thousands)
Severance	$	5,294	$	10,374	$	(4,537)	$	11,131
Other restructuring charges	30		8,562		(5,417)		3,175
	$	5,324	$	18,936	$	(9,954)	$	14,306

 _______________________________________

(a)Other restructuring charges consist primarily of charges associated with the consolidation of manufacturing facilities and commercial and corporate functions.

As of June 30, 2021, Mattel has recorded cumulative severance and other restructuring charges related to the Program of approximately $69 million, which include approximately $18 million of non-cash charges. Furthermore, cumulatively, in conjunction with previous actions taken under the Program, total expected cash expenditures are approximately $140 to $165 million and total expected non-cash charges are $40 to $45 million.

During the three months ended March 31, 2021, in conjunction with the Program, Mattel completed the sale of a manufacturing plant based in Mexico, which included land and buildings, resulting in a pre-tax gain of $15.8 million.

Other Cost Savings Actions

During the first half of 2020, Mattel recorded severance charges of approximately $15 million, primarily related to actions taken to further streamline its organizational structure.

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Income Taxes

6 Months Ended

Jun. 30, 2021

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

Mattel's provision for income taxes was $20.6 million and $40.9 million for the three and six months ended June 30, 2021, respectively, and $12.8 million and $24.7 million for the three and six months ended June 30, 2020, respectively. During the three and six months ended June 30, 2021, Mattel recognized a net discrete tax expense of $12.2 million and discrete tax expense of $19.5 million, respectively, primarily related to income taxes recorded on a discrete basis in various jurisdictions, tax rate changes impacting deferred tax assets and reassessments of prior year's tax liabilities. During the three and six months ended June 30, 2020, Mattel recognized a net discrete tax expense of $3.2 million and $9.6 million, respectively, primarily related to income taxes recorded on a discrete basis in various jurisdictions and reassessments of prior years' tax liabilities. As a result of the establishment of a valuation allowance on U.S. deferred tax assets in 2017, there was no U.S. tax benefit provided for U.S. losses during the six months ended June 30, 2021 or 2020.

Evaluating the need for and the amount of a valuation allowance for deferred tax assets often requires significant judgment and extensive analysis of all available evidence to determine whether it is more-likely-than-not that these assets will be realized. Mattel maintains a valuation allowance on its deferred tax assets until there is sufficient evidence to support the release of all or some portion of these allowances. Release of the valuation allowance would result in the recognition of a portion of these deferred tax assets and a decrease to income tax expense for the period the release is recorded. However, the exact timing and amount, if any, of the valuation allowance release are subject to change depending on the level of earnings that Mattel is able to achieve in the tax jurisdictions in which a valuation allowance has been recorded.

In the normal course of business, Mattel is regularly audited by federal, state, and foreign tax authorities. Based on the current status of federal, state, and foreign audits, Mattel believes it is reasonably possible that in the next twelve months, the total unrecognized tax benefits could decrease by approximately $35.8 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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Contingencies

6 Months Ended

Jun. 30, 2021

Commitments and Contingencies Disclosure [Abstract]

Contingencies

Contingencies

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 before the 15th Civil Court of Curitiba – State of Parana (the "Trial Court"), requesting the annulment of its security bonds and promissory notes given to Mattel do Brasil as well as requesting the Trial 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, 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.

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. Additionally, the court-appointed expert calculated a loss of profits compensation of approximately $1 million. 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 to the Court of Appeals of the State of Parana (the "Appeals Court"), 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 Trial Court upheld Mattel do Brasil's counterclaim and ordered Yellowstone to pay Mattel do Brasil approximately $4 million. 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 with the Appeals Court. 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 $17 million in damages, plus attorney's fees, as adjusted for inflation and interest. The Appeals Court also awarded Mattel do Brasil approximately $7.5 million on its counterclaim, as adjusted for inflation. On August 2, 2013, Mattel do Brasil filed a motion with the Appeals Court for clarification since the written decision contained clear errors in terms of amounts awarded and interest and inflation adjustments. Mattel do Brasil's motion also asked the Appeals Court to decide whether Yellowstone’s award could be offset by the counterclaim award, despite Yellowstone's status as a bankrupt entity. Yellowstone also filed a motion for clarification on August 5, 2013. A decision on the clarification motions was rendered on November 11, 2014, and the Appeals Court accepted partially the arguments raised by Mattel do Brasil. As a result, the Appeals Court awarded Yellowstone approximately $14.5 million in damages, as adjusted for inflation and interest, plus attorney's fees. The Appeals Court also awarded Mattel do Brasil approximately $7.5 million on its counterclaim, as adjusted for inflation. The decision also recognized the existence of legal rules that support Mattel do Brasil's right to offset its counterclaim award of approximately $7.5 million. Mattel do Brasil filed a new motion for clarification with the Appeals Court on January 21, 2015, due to the incorrect statement made by the reporting judge of the Appeals Court, that the court-appointed expert analyzed the "accounting documents" of Yellowstone. On April 26, 2015, a decision on the motion for clarification was rendered. The Appeals Court ruled that the motion for clarification was denied and imposed a fine on Mattel do Brasil equal to 1% of the value of the claims made for the delay caused by the motion. On July 3, 2015, Mattel do Brasil filed a special appeal to the Superior Court of Justice based upon both procedural and substantive grounds. This special appeal sought to reverse the Appeals Court's decision of July 26, 2013, and to reverse the fine as inappropriate under the law. This special appeal was submitted to the Appeals Court.

Yellowstone also filed a special appeal with the Appeals Court in February 2015, which was made available to Mattel do Brasil on October 7, 2015. Yellowstone's special appeal sought to reverse the Appeals Court decision with respect to: (a) the limitation on Yellowstone's loss of profits claim to the amount requested in the complaint, instead of the amount contained in the first court-appointed experts report, and (b) the award of damages to Mattel do Brasil on the counterclaim, since the specific amount was not requested in Mattel do Brasil's counterclaim brief.

On October 19, 2015, Mattel do Brasil filed its answer to the special appeal filed by Yellowstone and Yellowstone filed its answer to the special appeal filed by Mattel do Brasil. On April 4, 2016, the Appeals Court rendered a decision denying the admissibility of Mattel's and Yellowstone's special appeals. On May 11, 2016, both Mattel and Yellowstone filed interlocutory appeals.

On August 31, 2017, the reporting justice for the Appeals Court denied Yellowstone’s interlocutory appeal. As to Mattel, the reporting justice reversed the fine referenced above that had been previously imposed on Mattel for filing a motion for clarification. However, the reporting justice rejected Mattel’s arguments on the merits of Yellowstone’s damages claims. On September 22, 2017, Mattel filed a further appeal to the full panel of five appellate justices to challenge the merits of Yellowstone's damages claims. Yellowstone did not file a further appeal.

In April 2018, Mattel do Brasil entered into a settlement agreement to resolve this matter, but the settlement was later rejected by the courts, subject to a pending appeal by Mattel.

On October 2, 2018, the Appeals Court rejected Mattel's merits appeal, and affirmed the prior rulings in favor of Yellowstone. In October 2019, Mattel reached an agreement with Yellowstone's former counsel regarding payment of the attorney's fees portion of the judgment. In November 2019, Yellowstone initiated an action to enforce its judgment against Mattel, but did not account for an offset for Mattel's counterclaim. On January 27, 2020, Mattel obtained an injunction, staying Yellowstone's enforcement action pending resolution of Mattel's appeal to enforce the parties' April 2018 settlement. As of June 30, 2021, Mattel assessed its probable loss related to the Yellowstone matter and has accrued a reserve, which was not material.

Litigation Related to the Fisher-Price Rock 'n Play Sleeper

A number of putative class action lawsuits are pending against Fisher-Price, Inc. and/or Mattel, Inc. asserting claims for false advertising, negligent product design, breach of warranty, fraud, and other claims in connection with the marketing and sale of the Fisher-Price Rock 'n Play Sleeper (the "Sleeper"). In general, the lawsuits allege that the Sleeper should not have been marketed and sold as safe and fit for prolonged and overnight sleep for infants. The putative class action lawsuits propose nationwide and over 15 statewide consumer classes comprised of those who purchased the Sleeper as marketed as safe for prolonged and overnight sleep. The class actions have been consolidated before a single judge for pre-trial purposes pursuant to the federal courts’ Multi-District Litigation program.

Forty-one additional lawsuits are pending against Fisher-Price, Inc. and Mattel, Inc. alleging that a product defect in the Sleeper caused the fatalities of or injuries to forty-five children. Several lawsuits have been settled and/or dismissed. Additionally, Fisher-Price, Inc. and/or Mattel, Inc. have also received letters from lawyers purporting to represent additional plaintiffs who are threatening to assert similar claims.

In addition, a stockholder has filed a derivative action in the Court of Chancery for the State of Delaware (Kumar v. Bradley, et al., filed July 7, 2020) alleging breach of fiduciary duty and unjust enrichment related to the development, marketing, and sale of the Sleeper. The defendants in the derivative action are certain of Mattel's current and former officers and directors. In August 2020, the derivative action was stayed pending further developments in the class action lawsuits.

The lawsuits seek compensatory damages, punitive damages, statutory damages, restitution, disgorgement, attorneys’ fees, costs, interest, declaratory relief, and/or injunctive relief. Mattel believes that the allegations in the lawsuits are without merit and intends to vigorously defend against them.

A reasonable estimate of the amount of any possible loss or range of loss cannot be made at this time.

Litigation and Investigations Related to Whistleblower Letter

In December 2019 and January 2020, two stockholders filed separate complaints styled as class actions against Mattel, Inc., and certain of its current and former officers, alleging violations of federal securities laws. The complaints rely on the results of an investigation announced by Mattel in October 2019 regarding allegations in a whistleblower letter and claim that Mattel misled the market in several of its financial statements beginning in the third quarter of 2017. The lawsuits allege that the defendants' conduct caused the plaintiff and other stockholders to purchase Mattel common stock at artificially inflated prices.

In addition, a stockholder has filed a derivative action in the United States District Court for the District of Delaware (Moher v. Kreiz, et al., filed April 9, 2020) making allegations that are substantially identical to, or are based upon, the allegations of the class action lawsuits. The defendants in the derivative action are certain of Mattel's current and former officers and directors, Mattel, Inc., and PricewaterhouseCoopers LLP. Subsequently, a nearly identical derivative action was filed by a different stockholder against the same defendants. The second lawsuit is styled as an amended complaint and replaces a complaint making unrelated allegations in a previously filed lawsuit already pending in Delaware federal court (Lombardi v. Kreiz, et al., amended complaint filed April 16, 2020). In May 2020, the Moher and Lombardi derivative actions were consolidated and stayed pending further developments in the class action lawsuits. In June 2021, a third similar derivative action was filed in the United States District Court for the District of Delaware (Chagnon v. Kreiz, et al., filed June 22, 2021). Three additional derivative actions asserting similar claims are also pending in Delaware Chancery Court (Owen v. Euteneuer, et al., filed May 12, 2021; Andersen v. Georgiadis, et al., filed May 18, 2021; and Armon v. Euteneuer, et al., filed June 29, 2021).

The lawsuits seek unspecified compensatory damages, attorneys' fees, expert fees, costs and/or injunctive relief. Mattel believes that the allegations in the lawsuits are without merit and intends to vigorously defend against them. A reasonable estimate of the amount of any possible loss or range of loss cannot be made at this time.

Mattel has also received subpoenas from the Securities and Exchange Commission (the "SEC") seeking documents related to the whistleblower letter and subsequent investigation, and is responding to those subpoenas. Mattel is also responding to requests from the United States Attorney's Office for the Southern District of New York ("SDNY") related to this matter. Mattel cannot predict the eventual scope, duration or outcome of potential legal action by the SEC or SDNY, if any, or whether any such action could have a material impact on Mattel's financial condition, results of operations or cash flows.

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Segment Information

6 Months Ended

Jun. 30, 2021

Segment Reporting [Abstract]

Segment Information

Segment Information

Mattel designs, manufactures, and markets a broad variety of toy products worldwide, which are sold to its customers and directly to consumers.

Segment Data

Mattel's operating segments are: (i) North America, which consists of the U.S. and Canada; (ii) International; and (iii) American Girl. The North America and International segments sell products across categories, although some products are developed and adapted for particular international markets.

The following tables present information regarding net sales, operating income (loss), and assets by segment. The corporate and other expense category includes operating costs not allocated to individual segments, including charges related to incentive and share-based compensation, corporate headquarters functions managed on a worldwide basis, the impact of changes in foreign currency exchange rates on intercompany transactions, and certain severance and other restructuring costs. The prior period presentation of operating income by segment and assets by segment has been conformed to the current period's presentation.

It is impracticable for Mattel to present net sales by categories, brands, or products, as trade discounts and other allowances are generally recorded in the financial accounting systems by customer.

	For the Three Months Ended				For the Six Months Ended
	June 30, 2021		June 30, 2020		June 30, 2021		June 30, 2020
	(In thousands)
Net Sales by Segment
North America	$	560,830	$	432,892	$	1,040,489	$	720,446
International	424,897		271,065		774,252		540,421
American Girl	40,639		28,179		85,817		65,339
Net sales	$	1,026,366	$	732,136	$	1,900,558	$	1,326,206

	For the Three Months Ended				For the Six Months Ended
	June 30, 2021		June 30, 2020		June 30, 2021		June 30, 2020
	(In thousands)
Operating Income (Loss) by Segment
North America (a)	$	149,600	$	81,838	$	274,451	$	98,686
International (a)	50,758		(4,420)		87,018		(31,444)
American Girl	(9,725)		(13,886)		(19,290)		(30,987)
	190,633		63,532		342,179		36,255
Corporate and other expense (b)	(141,493)		(111,610)		(259,168)		(229,105)
Operating Income (Loss)	49,140		(48,078)		83,011		(192,850)
Interest expense	38,144		49,615		168,627		98,595
Interest (income)	(584)		(1,025)		(1,403)		(3,108)
Other non-operating expense (income), net	533		2,662		(555)		5,684
Income (Loss) Before Income Taxes	$	11,047	$	(99,330)	$	(83,658)	$	(294,021)

_______________________________________

(a)Segment operating income (loss) included severance and restructuring expenses of $(0.2) million and $1.8 million, for the three and six months ended June 30, 2021, respectively, and $1.4 million and $4.5 million, for the three and six months ended June 30, 2020, respectively, which were allocated to the North America and International segments.

(b)Corporate and other expense included severance and restructuring charges of $10.7 million and $16.5 million, for the three and six months ended June 30, 2021, respectively, and $16.2 million and $23.8 million, for the three and six months ended June 30, 2020, respectively. Corporate and other expense also included expenses related to inclined sleeper product recall litigation of $6.8 million and $12.1 million for the three and six months ended June 30, 2021, respectively, and $2.9 million and $9.1 million, for the three and six months ended June 30, 2020, respectively, and incentive and share-based compensation for all periods presented.

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

	June 30, 2021		June 30, 2020		December 31, 2020
	(In thousands)
Assets by Segment
North America	$	686,959	$	615,180	$	658,404
International	644,450		528,510		715,043
American Girl	51,453		47,028		40,414
	1,382,862		1,190,718		1,413,861
Corporate and other	219,259		187,648		148,579
Accounts receivable and inventories, net	$	1,602,121	$	1,378,366	$	1,562,440

Geographic Information

The table below presents information by geographic area. Net sales are attributed to countries based on location of the customer.

	For the Three Months Ended				For the Six Months Ended
	June 30, 2021		June 30, 2020		June 30, 2021		June 30, 2020
	(In thousands)
Net Sales by Geographic Area
North America	$	601,469	$	461,071	$	1,126,306	$	785,785
International
EMEA	246,816		151,948		484,985		325,271
Latin America	92,477		57,719		148,755		108,994
Asia Pacific	85,604		61,398		140,512		106,156
Total International	424,897		271,065		774,252		540,421
Net sales	$	1,026,366	$	732,136	$	1,900,558	$	1,326,206

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New Accounting Pronouncements

6 Months Ended

Jun. 30, 2021

Accounting Standards Update and Change in Accounting Principle [Abstract]

New Accounting Pronouncements

New Accounting Pronouncements

Recently Adopted Accounting Pronouncements

In December 2019, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, which simplifies the accounting for incomes taxes by removing certain exceptions to the general principles in Topic 740. The amendments also improve consistent application of and simplify the accounting for other areas of Topic 740 by clarifying and amending existing guidance. The amendments related to changes in ownership of foreign equity method investments or foreign subsidiaries are applied on a modified retrospective basis through a cumulative effect adjustment to retained earnings as of the beginning of the fiscal year of adoption. The amendments related to franchise taxes that are partially based on income are applied on either a retrospective basis for all periods presented or a modified retrospective basis through a cumulative effect adjustment to retained earnings as of the beginning of the fiscal year of adoption. All other amendments are applied on a prospective basis. Mattel adopted ASU 2019-12 on January 1, 2021. The adoption of this new accounting standard did not have a material impact on Mattel's consolidated financial statements.

Accounting Pronouncements Not Yet Adopted

In March 2020 and January 2021, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting and ASU 2021-01, Reference Rate Reform (Topic 848): Scope, respectively. ASU 2020-04 and ASU 2021-01 provide optional expedients and exceptions for applying U.S. GAAP, to contracts, hedging relationships, and other transactions that reference the London Interbank Offered Rate or another reference rate expected to be discontinued because of reference rate reform, if certain criteria are met. The guidance in ASU 2020- 04 and ASU 2021-01 was effective upon issuance and, once adopted, may be applied prospectively to contract modifications and hedging relationships through December 31, 2022. Mattel is currently evaluating the impact of the adoption of ASU 2020-04 and ASU 2021-01 on its consolidated financial statements.

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Revision for Immaterial Misstatements

6 Months Ended

Jun. 30, 2021

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Revision for Immaterial Misstatements

Revision for Immaterial Misstatements

As disclosed in Note 1, during the quarter ended June 30, 2021, Mattel identified misstatements for inventory tooling expenses that should have first been capitalized into inventory and a misstatement related to the timing of disbursements for certain capital expenditures that resulted in a cash flow misclassification between operating activities and investing activities. Although Mattel concluded that these misstatements were not material, either individually or in aggregate, to its current or previously issued consolidated financial statements, Mattel has elected to revise its previously issued consolidated financial statements to correct for these misstatements. In connection with such revision, Mattel is also correcting for other previously identified immaterial misstatements that were previously corrected for as out of period adjustments in the period of identification.

Due to certain misstatements originating prior to 2018, the opening retained earnings balance as of January 1, 2018 was understated by $25.1 million, primarily due to the net impact of the tooling misstatement of $37.2 million, partially offset by other previously identified misstatements of $12.1 million. Such previously identified misstatements were previously corrected for as out of period adjustments and included the improper revenue recognition for certain licensing contracts executed prior to 2018 and the understatement of depreciation expense for certain fixed assets. Similarly, the opening retained earnings balance as of January 1, 2020 was understated by $16.9 million, which principally included the net impact of the tooling misstatement and an over-accrual of advertising costs.

The revision also reflects the correction of previously identified balance sheet misclassifications, including a misclassification between property, plant and equipment and other assets associated with capitalized implementation costs for cloud computing software.

The accompanying consolidated statements of cash flows have been revised to reflect the above items, inclusive of the cash flow misstatement between operating and investing activities related to capitalized implementation costs for cloud computing software and the timing of disbursements for capital expenditures.

The revision to the accompanying unaudited consolidated balance sheets, consolidated statements of operations and comprehensive loss, and consolidated statements of cash flows are as follows. There were no changes to the consolidated statements of stockholders’ equity that have not otherwise been reflected in the consolidated balance sheets and consolidated statements of operations and comprehensive loss as detailed in the tables below:

	As of June 30, 2020
	As Previously Reported		Adjustments		As Revised
	(In thousands)
Consolidated Balance Sheet
Inventories	$	702,592	$	25,272	$	727,864
Prepaid expenses and other current assets	$	211,418	$	(37,200)	$	174,218
Total current assets	$	2,026,069	$	(11,928)	$	2,014,141
Property, plant, and equipment, net	$	506,555	$	(34,689)	$	471,866
Other noncurrent assets	$	794,724	$	52,642	$	847,366
Total Assets	$	4,992,680	$	6,025	$	4,998,705
Accrued liabilities	$	563,633	$	(21,800)	$	541,833
Total current liabilities	$	1,381,585	$	(21,800)	$	1,359,785
Other noncurrent liabilities	$	427,692	$	7,873	$	435,565
Total noncurrent liabilities	$	3,524,947	$	7,873	$	3,532,820
Retained earnings	$	1,093,268	$	19,952	$	1,113,220
Total stockholders' equity	$	86,148	$	19,952	$	106,100

	For the Three Months Ended June 30, 2020
	As Previously Reported		Adjustments		As Revised
	(In thousands, except per share amounts)
Consolidated Statement of Operations and Comprehensive Loss
Cost of sales	$	411,288	$	1,937	$	413,225
Gross Profit	$	320,848	$	(1,937)	$	318,911
Operating Loss	$	(46,141)	$	(1,937)	$	(48,078)
Loss Before Income Taxes	$	(97,393)	$	(1,937)	$	(99,330)
Net Loss	$	(109,172)	$	(1,937)	$	(111,109)
Comprehensive Loss	$	(80,886)	$	(1,937)	$	(82,823)
Net Loss Per Common Share - Basic	$	(0.31)	$	(0.01)	$	(0.32)
Net Loss Per Common Share - Diluted	$	(0.31)	$	(0.01)	$	(0.32)

	For the Six Months Ended June 30, 2020
	As Previously Reported		Adjustments		As Revised
	(In thousands, except per share amounts)
Consolidated Statement of Operations and Comprehensive Loss
Cost of sales	$	750,175	$	(3,102)	$	747,073
Gross Profit	$	576,031	$	3,102	$	579,133
Operating Loss	$	(195,952)	$	3,102	$	(192,850)
Loss Before Income Taxes	$	(297,123)	$	3,102	$	(294,021)
Net Loss	$	(319,914)	$	3,102	$	(316,812)
Comprehensive Loss	$	(428,027)	$	3,102	$	(424,925)
Net Loss Per Common Share - Basic	$	(0.92)	$	0.01	$	(0.91)
Net Loss Per Common Share - Diluted	$	(0.92)	$	0.01	$	(0.91)

	For the Six Months Ended June 30, 2020
	As Previously Reported		Adjustments		As Revised
	(In thousands)
Consolidated Statement of Cash Flows
Net loss	$	(319,914)	$	3,102	$	(316,812)
Changes in assets and liabilities:
Inventories	$	(241,833)	$	(3,102)	$	(244,935)
Prepaid expenses and other current assets	$	(30,923)	$	11,500	$	(19,423)
Accounts payable, accrued liabilities, and income taxes payable	$	(305,316)	$	(12,689)	$	(318,005)
Other, net	$	28,092	$	(5,044)	$	23,048
Net cash flows used for operating activities	$	(463,032)	$	(6,233)	$	(469,265)
Purchases of tools, dies, and molds	$	(25,824)	$	(560)	$	(26,384)
Purchases of other property, plant, and equipment	$	(34,367)	$	6,793	$	(27,574)
Net cash flows used for investing activities	$	(80,932)	$	6,233	$	(74,699)

	As of December 31, 2020
	As Previously Reported		Adjustments		As Revised
	(In thousands)
Consolidated Balance Sheet
Inventories	$	514,673	$	13,801	$	528,474
Total current assets	$	2,482,890	$	13,801	$	2,496,691
Total Assets	$	5,521,089	$	13,801	$	5,534,890
Retained earnings	$	1,539,809	$	13,801	$	1,553,610
Total stockholders' equity	$	596,343	$	13,801	$	610,144

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New Accounting Pronouncements (Policies)

6 Months Ended

Jun. 30, 2021

Accounting Standards Update and Change in Accounting Principle [Abstract]

Basis of Presentation

The accompanying unaudited consolidated financial statements and related disclosures have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") applicable to interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. In the opinion of management, all adjustments, consisting of only those of a normal recurring nature, considered necessary for a fair statement of the financial position and interim results of Mattel, Inc. and its subsidiaries ("Mattel") as of and for the periods presented have been included.

Recently Adopted Accounting Pronouncements and Accounting Pronouncements Not Yet Adopted

Recently Adopted Accounting Pronouncements

In December 2019, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, which simplifies the accounting for incomes taxes by removing certain exceptions to the general principles in Topic 740. The amendments also improve consistent application of and simplify the accounting for other areas of Topic 740 by clarifying and amending existing guidance. The amendments related to changes in ownership of foreign equity method investments or foreign subsidiaries are applied on a modified retrospective basis through a cumulative effect adjustment to retained earnings as of the beginning of the fiscal year of adoption. The amendments related to franchise taxes that are partially based on income are applied on either a retrospective basis for all periods presented or a modified retrospective basis through a cumulative effect adjustment to retained earnings as of the beginning of the fiscal year of adoption. All other amendments are applied on a prospective basis. Mattel adopted ASU 2019-12 on January 1, 2021. The adoption of this new accounting standard did not have a material impact on Mattel's consolidated financial statements.

Accounting Pronouncements Not Yet Adopted

In March 2020 and January 2021, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting and ASU 2021-01, Reference Rate Reform (Topic 848): Scope, respectively. ASU 2020-04 and ASU 2021-01 provide optional expedients and exceptions for applying U.S. GAAP, to contracts, hedging relationships, and other transactions that reference the London Interbank Offered Rate or another reference rate expected to be discontinued because of reference rate reform, if certain criteria are met. The guidance in ASU 2020- 04 and ASU 2021-01 was effective upon issuance and, once adopted, may be applied prospectively to contract modifications and hedging relationships through December 31, 2022. Mattel is currently evaluating the impact of the adoption of ASU 2020-04 and ASU 2021-01 on its consolidated financial statements.

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Inventories (Tables)

6 Months Ended

Jun. 30, 2021

Inventory Disclosure [Abstract]

Schedule of Inventories

Inventories include the following:

	June 30, 2021		June 30, 2020		December 31, 2020
	(In thousands)
Raw materials and work in process	$	169,794	$	139,256	$	110,010
Finished goods	648,243		588,608		418,464
	$	818,037	$	727,864	$	528,474

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Property, Plant, and Equipment (Tables)

6 Months Ended

Jun. 30, 2021

Property, Plant and Equipment [Abstract]

Schedule of Property, Plant, and Equipment

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

	June 30, 2021		June 30, 2020		December 31, 2020
	(In thousands)
Land	$	21,969	$	24,938	$	24,913
Buildings	321,540		332,067		335,407
Machinery and equipment	768,758		753,388		772,349
Software	348,983		342,150		344,268
Tools, dies, and molds	614,597		601,811		607,915
Leasehold improvements	116,473		143,427		131,578
	2,192,320		2,197,781		2,216,430
Less: accumulated depreciation	(1,732,492)		(1,725,915)		(1,742,636)
	$	459,828	$	471,866	$	473,794

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Goodwill (Tables)

6 Months Ended

Jun. 30, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Goodwill

	December 31, 2020		Dispositions		Currency Exchange Rate Impact		June 30, 2021
	(In thousands)
North America	$	733,401	$	(1,290)	$	371	$	732,482
International	452,862		(1,056)		920		452,726
American Girl	207,571		—		—		207,571
	$	1,393,834	$	(2,346)	$	1,291	$	1,392,779

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Other Noncurrent Assets (Tables)

6 Months Ended

Jun. 30, 2021

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

Schedule of Other Noncurrent Assets

Other noncurrent assets include the following: 

	June 30, 2021		June 30, 2020		December 31, 2020
	(In thousands)
Identifiable intangible assets (net of accumulated amortization of $306.0 million, $267.7 million, and $286.9 million, respectively)	$	500,811	$	524,153	$	518,190
Deferred income taxes	73,744		59,827		72,682

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Accrued Liabilities (Tables)

6 Months Ended

Jun. 30, 2021

Payables and Accruals [Abstract]

Schedule of Accrued Liabilities

Accrued liabilities include the following:

	June 30, 2021		June 30, 2020		December 31, 2020
	(In thousands)
Current lease liabilities	$	71,481	$	81,225	$	79,540
Incentive compensation	69,850		46,177		126,601
Advertising and promotion	61,370		53,025		163,181
Royalties	34,165		30,998		54,442

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Long-Term Debt (Tables)

6 Months Ended

Jun. 30, 2021

Debt Disclosure [Abstract]

Schedule of Long-Term Debt

Long-term debt includes the following:

	June 30, 2021		June 30, 2020		December 31, 2020
	(In thousands)
2010 Senior Notes due October 2040	$	250,000	$	250,000	$	250,000
2011 Senior Notes due November 2041	300,000		300,000		300,000
2013 Senior Notes due March 2023	250,000		250,000		250,000
2017/2018 Senior Notes due December 2025	275,000		1,500,000		1,500,000
2019 Senior Notes due December 2027	600,000		600,000		600,000
2021 Senior Notes due April 2026	600,000		—		—
2021 Senior Notes due April 2029	600,000		—		—
Debt issuance costs and debt discount	(35,881)		(49,159)		(45,336)
	$	2,839,119	$	2,850,841	$	2,854,664

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Other Noncurrent Liabilities (Tables)

6 Months Ended

Jun. 30, 2021

Payables and Accruals [Abstract]

Schedule of Other Noncurrent Liabilities

Other noncurrent liabilities include the following:

	June 30, 2021		June 30, 2020		December 31, 2020
	(In thousands)
Benefit plan liabilities	$	210,048	$	209,501	$	225,957
Deferred income tax liability	69,374		58,007		60,892
Noncurrent income tax payable	67,161		71,037		71,342

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Accumulated Other Comprehensive Income (Loss) (Tables)

6 Months Ended

Jun. 30, 2021

Equity [Abstract]

Schedule of Changes in Accumulated Other Comprehensive Income (Loss)

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

	For the Three Months Ended June 30, 2021
	Derivative Instruments		Available-for-Sale Security		Employee Benefit Plans		Currency Translation Adjustments		Total
	(In thousands)
Accumulated Other Comprehensive Loss, Net of Tax, as of March 31, 2021	$	(7,998)	$	(5,558)	$	(184,506)	$	(762,964)	$	(961,026)
Other comprehensive (loss) income before reclassifications	(771)		1,268		(254)		20,932		21,175
Amounts reclassified from accumulated other comprehensive loss	2,060		—		2,475		—		4,535
Net increase in other comprehensive (loss) income	1,289		1,268		2,221		20,932		25,710
Accumulated Other Comprehensive Loss, Net of Tax, as of June 30, 2021	$	(6,709)	$	(4,290)	$	(182,285)	$	(742,032)	$	(935,316)

	For the Six Months Ended June 30, 2021
	Derivative Instruments		Available-for-Sale Security		Employee Benefit Plans		Currency Translation Adjustments		Total
	(In thousands)
Accumulated Other Comprehensive Loss, Net of Tax, as of December 31, 2020	$	(15,369)	$	(7,522)	$	(186,854)	$	(734,831)	$	(944,576)
Other comprehensive income (loss) before reclassifications	9,331		3,232		(259)		(7,201)		5,103
Amounts reclassified from accumulated other comprehensive loss	(671)		—		4,828		—		4,157
Net increase (decrease) in other comprehensive income (loss)	8,660		3,232		4,569		(7,201)		9,260
Accumulated Other Comprehensive Loss, Net of Tax, as of June 30, 2021	$	(6,709)	$	(4,290)	$	(182,285)	$	(742,032)	$	(935,316)

	For the Three Months Ended June 30, 2020
	Derivative Instruments		Available-for-Sale Security		Employee Benefit Plans		Currency Translation Adjustments		Total
	(In thousands)
Accumulated Other Comprehensive Income (Loss), Net of Tax, as of March 31, 2020	$	17,021	$	(8,065)	$	(166,797)	$	(848,042)	$	(1,005,883)
Other comprehensive income (loss) before reclassifications	2,594		(80)		(1,203)		26,843		28,154
Amounts reclassified from accumulated other comprehensive income (loss)	(1,589)		—		1,721		—		132
Net increase (decrease) in other comprehensive income (loss)	1,005		(80)		518		26,843		28,286
Accumulated Other Comprehensive Income (Loss), Net of Tax, as of June 30, 2020	$	18,026	$	(8,145)	$	(166,279)	$	(821,199)	$	(977,597)

	For the Six Months Ended June 30, 2020
	Derivative Instruments		Available-for-Sale Security		Employee Benefit Plans		Currency Translation Adjustments		Total
	(In thousands)
Accumulated Other Comprehensive Income (Loss), Net of Tax, as of December 31, 2019	$	11,041	$	(8,260)	$	(169,857)	$	(702,408)	$	(869,484)
Other comprehensive income (loss) before reclassifications	16,022		115		499		(118,791)		(102,155)
Amounts reclassified from accumulated other comprehensive income (loss)	(9,037)		—		3,079		—		(5,958)
Net increase (decrease) in other comprehensive income (loss)	6,985		115		3,578		(118,791)		(108,113)
Accumulated Other Comprehensive Income (Loss), Net of Tax, as of June 30, 2020	$	18,026	$	(8,145)	$	(166,279)	$	(821,199)	$	(977,597)

Schedule of Consolidated Statement of Operations Line Items Affected by Reclassifications from Accumulated Other Comprehensive Income (Loss)

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

	For the Three Months Ended
	June 30, 2021		June 30, 2020		Statements of Operations Classification
	(In thousands)
Derivative Instruments
(Loss) gain on foreign currency forward exchange and other contracts	$	(1,969)	$	1,512	Cost of sales
Tax effect of net (loss) gain	(91)		77		Provision for income taxes
	$	(2,060)	$	1,589	Net loss
Employee Benefit Plans
Amortization of prior service credit (a)	$	390	$	466	Other non-operating expense (income), net
Recognized actuarial loss (a)	(2,773)		(2,337)		Other non-operating expense (income), net
	(2,383)		(1,871)
Tax effect of net (loss) gain	(92)		150		Provision for income taxes
	$	(2,475)	$	(1,721)	Net loss

	For the Six Months Ended
	June 30, 2021		June 30, 2020		Statements of Operations Classification
	(In thousands)
Derivative Instruments
Gain on foreign currency forward exchange and other contracts	$	870	$	8,942	Cost of sales
Tax effect of net (loss) gain	(199)		95		Provision for income taxes
	$	671	$	9,037	Net loss
Employee Benefit Plans
Amortization of prior service credit (a)	$	789	$	932	Other non-operating expense (income), net
Recognized actuarial loss (a)	(5,555)		(4,677)		Other non-operating expense (income), net
	(4,766)		(3,745)
Tax effect of net (loss) gain	(62)		666		Provision for income taxes
	$	(4,828)	$	(3,079)	Net loss

_______________________________________

(a)The amortization of prior service credit and recognized actuarial loss are included in the computation of net periodic benefit cost. Refer to "Note 16 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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Foreign Currency Transaction Exposure (Tables)

6 Months Ended

Jun. 30, 2021

Foreign Currency [Abstract]

Schedule of Currency Transaction Exposure

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

	For the Three Months Ended
	June 30, 2021		June 30, 2020		Statements of Operations Classification
	(In thousands)
Currency transaction gains (losses)	$	1,069	$	(4,328)	Operating income/loss
Currency transaction (losses)	(1,501)		(1,603)		Other non-operating income/expense, net
Currency transaction (losses), net	$	(432)	$	(5,931)

	For the Six Months Ended
	June 30, 2021		June 30, 2020		Statements of Operations Classification
	(In thousands)
Currency transaction (losses)	$	(2,503)	$	(5,917)	Operating income/loss
Currency transaction (losses)	(4,809)		(2,435)		Other non-operating income/expense, net
Currency transaction (losses), net	$	(7,312)	$	(8,352)

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Derivative Instruments (Tables)

6 Months Ended

Jun. 30, 2021

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Derivative Assets and Liabilities

The following tables present Mattel's derivative assets and liabilities:

	Derivative Assets
	Balance Sheet Classification	Fair Value
		June 30, 2021		June 30, 2020		December 31, 2020
		(In thousands)
Derivatives designated as hedging instruments
Foreign currency forward exchange and other contracts	Prepaid expenses and other current assets	$	5,405	$	11,731	$	3,641
Foreign currency forward exchange and other contracts	Other noncurrent assets	1,774		1,237		50
Total derivatives designated as hedging instruments		$	7,179	$	12,968	$	3,691
Derivatives not designated as hedging instruments
Foreign currency forward exchange and other contracts	Prepaid expenses and other current assets	$	1,624	$	786	$	1,982
Foreign currency forward exchange and other contracts	Other noncurrent assets	—		—		38
Total derivatives not designated as hedging instruments		$	1,624	$	786	$	2,020
		$	8,803	$	13,754	$	5,711
	Derivative Liabilities
	Balance Sheet Classification	Fair Value
		June 30, 2021		June 30, 2020		December 31, 2020
		(In thousands)
Derivatives designated as hedging instruments
Foreign currency forward exchange and other contracts	Accrued liabilities	$	10,774	$	1,973	$	20,330
Foreign currency forward exchange and other contracts	Other noncurrent liabilities	270		1,241		4,361
Total derivatives designated as hedging instruments		$	11,044	$	3,214	$	24,691
Derivatives not designated as hedging instruments
Foreign currency forward exchange and other contracts	Accrued liabilities	$	5,187	$	5,280	$	803
Foreign currency forward exchange and other contracts	Other noncurrent liabilities	—		185		—
Total derivatives not designated as hedging instruments		$	5,187	$	5,465	$	803
		$	16,231	$	8,679	$	25,494

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

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

	Derivatives Designated As Hedging Instruments
	For the Three Months Ended
	June 30, 2021		June 30, 2020		Statements of Operations Classification
	(In thousands)
Foreign currency forward exchange contracts:
Amount of (losses) gains recognized in OCI	$	(771)	$	2,594
Amount of (losses) gains reclassified from accumulated OCI to consolidated statements of operations	(2,060)		1,589		Cost of sales

	Derivatives Designated As Hedging Instruments
	For the Six Months Ended
	June 30, 2021		June 30, 2020		Statements of Operations Classification
	(In thousands)
Foreign currency forward exchange contracts:
Amount of gains recognized in OCI	$	9,331	$	16,022
Amount of gains reclassified from accumulated OCI to consolidated statements of operations	671		9,037		Cost of sales

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

	Derivatives Not Designated As Hedging Instruments
	For the Three Months Ended
	June 30, 2021		June 30, 2020		Statements of Operations Classification
	(In thousands)
Amount of net gains recognized in the Statements of Operations
Foreign currency forward exchange and other contract gains	$	7,673	$	8,121	Other non-operating expense (income), net
Foreign currency forward exchange and other contract gains	—		—		Cost of sales
	$	7,673	$	8,121

	Derivatives Not Designated As Hedging Instruments
	For the Six Months Ended
	June 30, 2021		June 30, 2020		Statements of Operations Classification
	(In thousands)
Amount of net losses recognized in the Statements of Operations
Foreign currency forward exchange and other contract (losses)	$	(963)	$	(30,247)	Other non-operating expense (income), net
Foreign currency forward exchange and other contract gains	639		—		Cost of sales
	$	(324)	$	(30,247)

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Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2021

Fair Value Disclosures [Abstract]

Schedule of Financial Assets and Liabilities

Mattel's financial assets and liabilities include the following:

	June 30, 2021
	Level 1		Level 2		Level 3		Total
	(In thousands)
Assets:
Foreign currency forward exchange contracts and other (a)	$	—	$	8,803	$	—	$	8,803
Available-for-sale (b)	7,500		—		—		7,500
Total assets	$	7,500	$	8,803	$	—	$	16,303
Liabilities:
Foreign currency forward exchange contracts and other (a)	$	—	$	16,231	$	—	$	16,231
	June 30, 2020
	Level 1		Level 2		Level 3		Total
	(In thousands)
Assets:
Foreign currency forward exchange contracts and other (a)	$	—	$	13,754	$	—	$	13,754
Available-for-sale (b)	3,645		—		—		3,645
Total assets	$	3,645	$	13,754	$	—	$	17,399
Liabilities:
Foreign currency forward exchange contracts and other (a)	$	—	$	8,679	$	—	$	8,679
	December 31, 2020
	Level 1		Level 2		Level 3		Total
	(In thousands)
Assets:
Foreign currency forward exchange contracts and other (a)	$	—	$	5,711	$	—	$	5,711
Available-for-sale (b)	4,268		—		—		4,268
Total assets	$	4,268	$	5,711	$	—	$	9,979
Liabilities:
Foreign currency forward exchange contracts and other (a)	$	—	$	25,494	$	—	$	25,494

 ____________________________________________

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

(b)The fair value of the available-for-sale security is based on the quoted price on an active public exchange.

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Earnings Per Share (Tables)

6 Months Ended

Jun. 30, 2021

Earnings Per Share [Abstract]

Schedule of Earnings Per Share

The following table reconciles basic and diluted earnings per common share for the three and six months ended June 30, 2021 and 2020: 

	For the Three Months Ended				For the Six Months Ended
	June 30, 2021		June 30, 2020		June 30, 2021		June 30, 2020
	(In thousands, except per share amounts)
Basic:
Net loss	$	(5,537)	$	(111,109)	$	(117,922)	$	(316,812)
Weighted-average number of common shares	349,441		346,875		349,244		346,778
Basic net loss per common share	$	(0.02)	$	(0.32)	$	(0.34)	$	(0.91)
Diluted:
Net loss	$	(5,537)	$	(111,109)	$	(117,922)	$	(316,812)
Weighted-average number of common shares	349,441		346,875		349,244		346,778
Dilutive stock options and restricted stock units ("RSUs") (a)	—		—		—		—
Weighted-average number of common and potential common shares	349,441		346,875		349,244		346,778
Diluted net loss per common share	$	(0.02)	$	(0.32)	$	(0.34)	$	(0.91)

 _______________________________________

(a)Mattel was in a net loss position for the three and six months ended June 30, 2021 and 2020, and, accordingly, all outstanding nonqualified stock options and RSUs were excluded from the calculation of diluted net loss per common share because their effect would be antidilutive.

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Employee Benefit Plans (Tables)

6 Months Ended

Jun. 30, 2021

Retirement Benefits [Abstract]

Schedule of Components of Net Periodic Benefit Cost

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

	For the Three Months Ended				For the Six Months Ended
	June 30, 2021		June 30, 2020		June 30, 2021		June 30, 2020
	(In thousands)				(In thousands)
Service cost	$	1,293	$	1,112	$	2,586	$	2,221
Interest cost	2,530		3,737		5,070		7,518
Expected return on plan assets	(4,637)		(4,902)		(9,264)		(9,823)
Amortization of prior service cost	119		43		230		86
Recognized actuarial loss	2,775		2,356		5,560		4,715
	$	2,080	$	2,346	$	4,182	$	4,717

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

	For the Three Months Ended				For the Six Months Ended
	June 30, 2021		June 30, 2020		June 30, 2021		June 30, 2020
	(In thousands)				(In thousands)
Interest cost	$	19	$	35	$	39	$	70
Amortization of prior service credit	(509)		(509)		(1,019)		(1,018)
Recognized actuarial gain	(2)		(19)		(5)		(38)
	$	(492)	$	(493)	$	(985)	$	(986)

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Share-Based Payments (Tables)

6 Months Ended

Jun. 30, 2021

Share-based Payment Arrangement [Abstract]

Schedule of Stock Option and Restricted Stock Unit Compensation Expense

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

	For the Three Months Ended				For the Six Months Ended
	June 30, 2021		June 30, 2020		June 30, 2021		June 30, 2020
	(In thousands)
Stock option compensation expense	$	2,662	$	2,376	$	5,444	$	5,507
RSU compensation expense	7,673		6,588		14,031		13,950
Performance award compensation expense	4,833		174		10,805		3,957
	$	15,168	$	9,138	$	30,280	$	23,414

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Other Selling and Administrative Expenses (Tables)

6 Months Ended

Jun. 30, 2021

Other Income and Expenses [Abstract]

Schedule of Other Selling and Administrative Expenses

Other selling and administrative expenses include the following:

	For the Three Months Ended				For the Six Months Ended
	June 30, 2021		June 30, 2020		June 30, 2021		June 30, 2020
	(In thousands)
Design and development	$	46,747	$	46,486	$	90,728	$	91,113
Identifiable intangible asset amortization	9,544		9,687		19,058		19,652

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Restructuring Charges (Tables)

6 Months Ended

Jun. 30, 2021

Restructuring and Related Activities [Abstract]

Schedule of Restructuring Charges

In connection with the Program, Mattel recorded severance and other restructuring costs in the following cost and expense categories within the consolidated statements of operations:

	For the Three Months Ended				For the Six Months Ended
	June 30, 2021		June 30, 2020		June 30, 2021		June 30, 2020
	(In thousands)
Cost of sales (a)	$	(151)	$	1,407	$	1,782	$	4,464
Other selling and administrative expenses (b)	11,444		1,374		17,154		4,120
	$	11,293	$	2,781	$	18,936	$	8,584

 _______________________________________

(a)Severance and other restructuring costs recorded within cost of sales in the consolidated statements of operations include charges associated with the consolidation of manufacturing facilities.

(b)Severance and other restructuring costs recorded within other selling and administrative expenses in the consolidated statements of operations are included in corporate and other expense in "Note 22 to the Consolidated Financial Statements—Segment Information."

The following table summarizes Mattel's severance and other restructuring charges activity related to the Program for the six months ended June 30, 2021:

	Liability at December 31, 2020		Charges (a)		Payments/Utilization		Liability at June 30, 2021
	(In thousands)
Severance	$	5,294	$	10,374	$	(4,537)	$	11,131
Other restructuring charges	30		8,562		(5,417)		3,175
	$	5,324	$	18,936	$	(9,954)	$	14,306

 _______________________________________

(a)Other restructuring charges consist primarily of charges associated with the consolidation of manufacturing facilities and commercial and corporate functions.

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Segment Information (Tables)

6 Months Ended

Jun. 30, 2021

Segment Reporting [Abstract]

Schedule of Revenues from Segment to Consolidated

The following tables present information regarding net sales, operating income (loss), and assets by segment. The corporate and other expense category includes operating costs not allocated to individual segments, including charges related to incentive and share-based compensation, corporate headquarters functions managed on a worldwide basis, the impact of changes in foreign currency exchange rates on intercompany transactions, and certain severance and other restructuring costs. The prior period presentation of operating income by segment and assets by segment has been conformed to the current period's presentation.

It is impracticable for Mattel to present net sales by categories, brands, or products, as trade discounts and other allowances are generally recorded in the financial accounting systems by customer.

	For the Three Months Ended				For the Six Months Ended
	June 30, 2021		June 30, 2020		June 30, 2021		June 30, 2020
	(In thousands)
Net Sales by Segment
North America	$	560,830	$	432,892	$	1,040,489	$	720,446
International	424,897		271,065		774,252		540,421
American Girl	40,639		28,179		85,817		65,339
Net sales	$	1,026,366	$	732,136	$	1,900,558	$	1,326,206

	For the Three Months Ended				For the Six Months Ended
	June 30, 2021		June 30, 2020		June 30, 2021		June 30, 2020
	(In thousands)
Operating Income (Loss) by Segment
North America (a)	$	149,600	$	81,838	$	274,451	$	98,686
International (a)	50,758		(4,420)		87,018		(31,444)
American Girl	(9,725)		(13,886)		(19,290)		(30,987)
	190,633		63,532		342,179		36,255
Corporate and other expense (b)	(141,493)		(111,610)		(259,168)		(229,105)
Operating Income (Loss)	49,140		(48,078)		83,011		(192,850)
Interest expense	38,144		49,615		168,627		98,595
Interest (income)	(584)		(1,025)		(1,403)		(3,108)
Other non-operating expense (income), net	533		2,662		(555)		5,684
Income (Loss) Before Income Taxes	$	11,047	$	(99,330)	$	(83,658)	$	(294,021)

_______________________________________

(a)Segment operating income (loss) included severance and restructuring expenses of $(0.2) million and $1.8 million, for the three and six months ended June 30, 2021, respectively, and $1.4 million and $4.5 million, for the three and six months ended June 30, 2020, respectively, which were allocated to the North America and International segments.

(b)Corporate and other expense included severance and restructuring charges of $10.7 million and $16.5 million, for the three and six months ended June 30, 2021, respectively, and $16.2 million and $23.8 million, for the three and six months ended June 30, 2020, respectively. Corporate and other expense also included expenses related to inclined sleeper product recall litigation of $6.8 million and $12.1 million for the three and six months ended June 30, 2021, respectively, and $2.9 million and $9.1 million, for the three and six months ended June 30, 2020, respectively, and incentive and share-based compensation for all periods presented.

Schedule of Segment Assets

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

	June 30, 2021		June 30, 2020		December 31, 2020
	(In thousands)
Assets by Segment
North America	$	686,959	$	615,180	$	658,404
International	644,450		528,510		715,043
American Girl	51,453		47,028		40,414
	1,382,862		1,190,718		1,413,861
Corporate and other	219,259		187,648		148,579
Accounts receivable and inventories, net	$	1,602,121	$	1,378,366	$	1,562,440

Schedule of Revenues by Geographic Area

The table below presents information by geographic area. Net sales are attributed to countries based on location of the customer.

	For the Three Months Ended				For the Six Months Ended
	June 30, 2021		June 30, 2020		June 30, 2021		June 30, 2020
	(In thousands)
Net Sales by Geographic Area
North America	$	601,469	$	461,071	$	1,126,306	$	785,785
International
EMEA	246,816		151,948		484,985		325,271
Latin America	92,477		57,719		148,755		108,994
Asia Pacific	85,604		61,398		140,512		106,156
Total International	424,897		271,065		774,252		540,421
Net sales	$	1,026,366	$	732,136	$	1,900,558	$	1,326,206

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Revision for Immaterial Misstatements (Tables)

6 Months Ended

Jun. 30, 2021

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of Error Corrections and Prior Period Adjustments

The revision to the accompanying unaudited consolidated balance sheets, consolidated statements of operations and comprehensive loss, and consolidated statements of cash flows are as follows. There were no changes to the consolidated statements of stockholders’ equity that have not otherwise been reflected in the consolidated balance sheets and consolidated statements of operations and comprehensive loss as detailed in the tables below:

	As of June 30, 2020
	As Previously Reported		Adjustments		As Revised
	(In thousands)
Consolidated Balance Sheet
Inventories	$	702,592	$	25,272	$	727,864
Prepaid expenses and other current assets	$	211,418	$	(37,200)	$	174,218
Total current assets	$	2,026,069	$	(11,928)	$	2,014,141
Property, plant, and equipment, net	$	506,555	$	(34,689)	$	471,866
Other noncurrent assets	$	794,724	$	52,642	$	847,366
Total Assets	$	4,992,680	$	6,025	$	4,998,705
Accrued liabilities	$	563,633	$	(21,800)	$	541,833
Total current liabilities	$	1,381,585	$	(21,800)	$	1,359,785
Other noncurrent liabilities	$	427,692	$	7,873	$	435,565
Total noncurrent liabilities	$	3,524,947	$	7,873	$	3,532,820
Retained earnings	$	1,093,268	$	19,952	$	1,113,220
Total stockholders' equity	$	86,148	$	19,952	$	106,100

	For the Three Months Ended June 30, 2020
	As Previously Reported		Adjustments		As Revised
	(In thousands, except per share amounts)
Consolidated Statement of Operations and Comprehensive Loss
Cost of sales	$	411,288	$	1,937	$	413,225
Gross Profit	$	320,848	$	(1,937)	$	318,911
Operating Loss	$	(46,141)	$	(1,937)	$	(48,078)
Loss Before Income Taxes	$	(97,393)	$	(1,937)	$	(99,330)
Net Loss	$	(109,172)	$	(1,937)	$	(111,109)
Comprehensive Loss	$	(80,886)	$	(1,937)	$	(82,823)
Net Loss Per Common Share - Basic	$	(0.31)	$	(0.01)	$	(0.32)
Net Loss Per Common Share - Diluted	$	(0.31)	$	(0.01)	$	(0.32)

	For the Six Months Ended June 30, 2020
	As Previously Reported		Adjustments		As Revised
	(In thousands, except per share amounts)
Consolidated Statement of Operations and Comprehensive Loss
Cost of sales	$	750,175	$	(3,102)	$	747,073
Gross Profit	$	576,031	$	3,102	$	579,133
Operating Loss	$	(195,952)	$	3,102	$	(192,850)
Loss Before Income Taxes	$	(297,123)	$	3,102	$	(294,021)
Net Loss	$	(319,914)	$	3,102	$	(316,812)
Comprehensive Loss	$	(428,027)	$	3,102	$	(424,925)
Net Loss Per Common Share - Basic	$	(0.92)	$	0.01	$	(0.91)
Net Loss Per Common Share - Diluted	$	(0.92)	$	0.01	$	(0.91)

	For the Six Months Ended June 30, 2020
	As Previously Reported		Adjustments		As Revised
	(In thousands)
Consolidated Statement of Cash Flows
Net loss	$	(319,914)	$	3,102	$	(316,812)
Changes in assets and liabilities:
Inventories	$	(241,833)	$	(3,102)	$	(244,935)
Prepaid expenses and other current assets	$	(30,923)	$	11,500	$	(19,423)
Accounts payable, accrued liabilities, and income taxes payable	$	(305,316)	$	(12,689)	$	(318,005)
Other, net	$	28,092	$	(5,044)	$	23,048
Net cash flows used for operating activities	$	(463,032)	$	(6,233)	$	(469,265)
Purchases of tools, dies, and molds	$	(25,824)	$	(560)	$	(26,384)
Purchases of other property, plant, and equipment	$	(34,367)	$	6,793	$	(27,574)
Net cash flows used for investing activities	$	(80,932)	$	6,233	$	(74,699)

	As of December 31, 2020
	As Previously Reported		Adjustments		As Revised
	(In thousands)
Consolidated Balance Sheet
Inventories	$	514,673	$	13,801	$	528,474
Total current assets	$	2,482,890	$	13,801	$	2,496,691
Total Assets	$	5,521,089	$	13,801	$	5,534,890
Retained earnings	$	1,539,809	$	13,801	$	1,553,610
Total stockholders' equity	$	596,343	$	13,801	$	610,144

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Accounts Receivable (Details) - USD ($) $ in Millions	Jun. 30, 2021	Dec. 31, 2020	Jun. 30, 2020
Receivables [Abstract]
Accounts receivable, allowances for credit losses	$ 12.3	$ 15.9	$ 18.7

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Inventories (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020	Jun. 30, 2020
Inventory Disclosure [Abstract]
Raw materials and work in process	$ 169,794	$ 110,010	$ 139,256
Finished goods	648,243	418,464	588,608
Inventories	$ 818,037	$ 528,474	$ 727,864

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Property, Plant, and Equipment (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Jun. 30, 2021	Dec. 31, 2020	Jun. 30, 2020
Property, Plant and Equipment [Line Items]
Property, plant, and equipment, gross		$ 2,192,320	$ 2,216,430	$ 2,197,781
Less: accumulated depreciation		(1,732,492)	(1,742,636)	(1,725,915)
Property, plant, and equipment, net		459,828	473,794	471,866
Land
Property, Plant and Equipment [Line Items]
Property, plant, and equipment, gross		21,969	24,913	24,938
Buildings
Property, Plant and Equipment [Line Items]
Property, plant, and equipment, gross		321,540	335,407	332,067
Machinery and equipment
Property, Plant and Equipment [Line Items]
Property, plant, and equipment, gross		768,758	772,349	753,388
Software
Property, Plant and Equipment [Line Items]
Property, plant, and equipment, gross		348,983	344,268	342,150
Tools, dies, and molds
Property, Plant and Equipment [Line Items]
Property, plant, and equipment, gross		614,597	607,915	601,811
Leasehold improvements
Property, Plant and Equipment [Line Items]
Property, plant, and equipment, gross		$ 116,473	$ 131,578	$ 143,427
Land and building | Mexico
Property, Plant and Equipment [Line Items]
Gain on disposal of property, plant, and equipment	$ 15,800

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Goodwill (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Mar. 31, 2021	Jun. 30, 2021
Goodwill [Roll Forward]
Balance at beginning of period	$ 1,393,834	$ 1,393,834
Dispositions	(2,000)	(2,346)
Currency Exchange Rate Impact		1,291
Balance at end of period		1,392,779
North America
Goodwill [Roll Forward]
Balance at beginning of period	733,401	733,401
Dispositions		(1,290)
Currency Exchange Rate Impact		371
Balance at end of period		732,482
International
Goodwill [Roll Forward]
Balance at beginning of period	452,862	452,862
Dispositions		(1,056)
Currency Exchange Rate Impact		920
Balance at end of period		452,726
American Girl
Goodwill [Roll Forward]
Balance at beginning of period	$ 207,571	207,571
Dispositions		0
Currency Exchange Rate Impact		0
Balance at end of period		$ 207,571

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Other Noncurrent Assets (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Identifiable intangible assets (net of accumulated amortization of $306.0 million, $267.7 million, and $286.9 million, respectively)	$ 500,811,000	$ 524,153,000	$ 500,811,000	$ 524,153,000	$ 518,190,000
Deferred income taxes	73,744,000	59,827,000	73,744,000	59,827,000	72,682,000
Identifiable intangible assets, accumulated amortization	306,000,000.0	267,700,000	306,000,000.0	267,700,000	$ 286,900,000
Impairment of intangible assets	$ 0	$ 0	$ 0	$ 0

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Accrued Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020	Jun. 30, 2020
Payables and Accruals [Abstract]
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List]	Accrued liabilities	Accrued liabilities	Accrued liabilities
Current lease liabilities	$ 71,481	$ 79,540	$ 81,225
Incentive compensation	69,850	126,601	46,177
Advertising and promotion	61,370	163,181	53,025
Royalties	$ 34,165	$ 54,442	$ 30,998

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Seasonal Financing (Details) - USD ($)	6 Months Ended
	Jun. 30, 2021	Mar. 19, 2021	Dec. 31, 2020	Jun. 30, 2020	Dec. 20, 2017
Debt Instrument [Line Items]
Short-term borrowings	$ 214,000		$ 969,000	$ 400,000,000
Credit Agreement
Debt Instrument [Line Items]
Outstanding letters of credit	10,000,000		11,000,000	13,000,000
Revolving Credit Facility | Credit Agreement
Debt Instrument [Line Items]
Aggregate commitment under the credit facility		$ 1,400,000,000			$ 1,600,000,000
Short-term borrowings	$ 0		$ 0	$ 400,000,000.0
Revolving Credit Facility | Credit Agreement | Minimum | LIBOR
Debt Instrument [Line Items]
Interest rate margin for loans (as a percent)	1.25%
Revolving Credit Facility | Credit Agreement | Minimum | Base Rate
Debt Instrument [Line Items]
Interest rate margin for loans (as a percent)	0.25%
Revolving Credit Facility | Credit Agreement | Maximum | LIBOR
Debt Instrument [Line Items]
Interest rate margin for loans (as a percent)	1.75%
Revolving Credit Facility | Credit Agreement | Maximum | Base Rate
Debt Instrument [Line Items]
Interest rate margin for loans (as a percent)	0.75%
Revolving Credit Facility, Asset Based | Credit Agreement
Debt Instrument [Line Items]
Aggregate commitment under the credit facility	$ 1,110,000,000
Revolving Credit Facility, Secured | Credit Agreement
Debt Instrument [Line Items]
Aggregate commitment under the credit facility	$ 294,000,000.0

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Long-Term Debt - Schedule of Debt (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Mar. 19, 2021	Dec. 31, 2020	Jun. 30, 2020
Debt Instrument [Line Items]
Long-term debt	$ 2,880,000		$ 2,900,000	$ 2,900,000
Debt issuance costs and debt discount	(35,881)		(45,336)	(49,159)
Long-term debt, net	2,839,119		2,854,664	2,850,841
Senior Notes | 2010 Senior Notes due October 2040
Debt Instrument [Line Items]
Long-term debt	250,000		250,000	250,000
Senior Notes | 2011 Senior Notes due November 2041
Debt Instrument [Line Items]
Long-term debt	300,000		300,000	300,000
Senior Notes | 2013 Senior Notes due March 2023
Debt Instrument [Line Items]
Long-term debt	250,000		250,000	250,000
Senior Notes | 2017/2018 Senior Notes due December 2025
Debt Instrument [Line Items]
Long-term debt	275,000	$ 275,000	1,500,000	1,500,000
Senior Notes | 2019 Senior Notes due December 2027
Debt Instrument [Line Items]
Long-term debt	600,000		600,000	600,000
Senior Notes | 2021 Senior Notes due April 2026
Debt Instrument [Line Items]
Long-term debt	600,000		0	0
Senior Notes | 2021 Senior Notes due April 2029
Debt Instrument [Line Items]
Long-term debt	$ 600,000		$ 0	$ 0

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Long-Term Debt - Narrative (Details) - USD ($)			6 Months Ended
	Jun. 21, 2021	Mar. 19, 2021	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020
Debt Instrument [Line Items]
Redemption of debt			$ 1,287,022,000	$ 0
Loss on extinguishment of long-term borrowings			83,213,000	0
Long-term debt			2,880,000,000	2,900,000,000	$ 2,900,000,000
Senior Notes | 2021 Senior Notes due April 2026
Debt Instrument [Line Items]
Principal of debt instrument		$ 600,000,000
Interest rate		3.375%
Long-term debt			600,000,000	0	0
Senior Notes | 2021 Senior Notes due April 2029
Debt Instrument [Line Items]
Principal of debt instrument		$ 600,000,000
Interest rate		3.75%
Long-term debt			600,000,000	0	0
Senior Notes | 2017/2018 Senior Notes due December 2025
Debt Instrument [Line Items]
Interest rate		6.75%
Redemption of debt		$ 1,225,000,000
Loss on extinguishment of long-term borrowings		83,200,000
Debt prepayment premium costs		62,000,000.0
Write-off of unamortized debt issuance costs		21,200,000
Long-term debt		$ 275,000,000	$ 275,000,000	$ 1,500,000,000	$ 1,500,000,000
Redemption price percentage	105.063%

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Other Noncurrent Liabilities (Details) - Other noncurrent liabilities - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020	Jun. 30, 2020
Other Commitments [Line Items]
Benefit plan liabilities	$ 210,048	$ 225,957	$ 209,501
Deferred income tax liability	69,374	60,892	58,007
Noncurrent income tax payable	$ 67,161	$ 71,342	$ 71,037

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Accumulated Other Comprehensive Income (Loss) - Changes in Accumulated Balances (Details) - USD ($) $ in Thousands	3 Months Ended				6 Months Ended
	Jun. 30, 2021	Mar. 31, 2021	Jun. 30, 2020	Mar. 31, 2020	Jun. 30, 2021	Jun. 30, 2020
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	$ 490,565	$ 610,144	$ 179,772	$ 508,564	$ 610,144	$ 508,564
Other comprehensive income (loss) before reclassifications	21,175		28,154		5,103	(102,155)
Amounts reclassified from accumulated other comprehensive loss	4,535		132		4,157	(5,958)
Other Comprehensive Income (Loss), Net of Tax	25,710	(16,450)	28,286	(136,399)	9,260	(108,113)
Ending balance	527,719	490,565	106,100	179,772	527,719	106,100
Total
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(961,026)	(944,576)	(1,005,883)	(869,484)	(944,576)	(869,484)
Other Comprehensive Income (Loss), Net of Tax	25,710	(16,450)	28,286	(136,399)
Ending balance	(935,316)	(961,026)	(977,597)	(1,005,883)	(935,316)	(977,597)
Derivative Instruments
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(7,998)	(15,369)	17,021	11,041	(15,369)	11,041
Other comprehensive income (loss) before reclassifications	(771)		2,594		9,331	16,022
Amounts reclassified from accumulated other comprehensive loss	2,060		(1,589)		(671)	(9,037)
Other Comprehensive Income (Loss), Net of Tax	1,289		1,005		8,660	6,985
Ending balance	(6,709)	(7,998)	18,026	17,021	(6,709)	18,026
Available-for-Sale Security
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(5,558)	(7,522)	(8,065)	(8,260)	(7,522)	(8,260)
Other comprehensive income (loss) before reclassifications	1,268		(80)		3,232	115
Amounts reclassified from accumulated other comprehensive loss	0		0		0	0
Other Comprehensive Income (Loss), Net of Tax	1,268		(80)		3,232	115
Ending balance	(4,290)	(5,558)	(8,145)	(8,065)	(4,290)	(8,145)
Employee  Benefit Plans
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(184,506)	(186,854)	(166,797)	(169,857)	(186,854)	(169,857)
Other comprehensive income (loss) before reclassifications	(254)		(1,203)		(259)	499
Amounts reclassified from accumulated other comprehensive loss	2,475		1,721		4,828	3,079
Other Comprehensive Income (Loss), Net of Tax	2,221		518		4,569	3,578
Ending balance	(182,285)	(184,506)	(166,279)	(166,797)	(182,285)	(166,279)
Currency Translation Adjustments
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(762,964)	(734,831)	(848,042)	(702,408)	(734,831)	(702,408)
Other comprehensive income (loss) before reclassifications	20,932		26,843		(7,201)	(118,791)
Amounts reclassified from accumulated other comprehensive loss	0		0		0	0
Other Comprehensive Income (Loss), Net of Tax	20,932		26,843		(7,201)	(118,791)
Ending balance	$ (742,032)	$ (762,964)	$ (821,199)	$ (848,042)	$ (742,032)	$ (821,199)

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Accumulated Other Comprehensive Income (Loss) - Reclassification from AOCI (Details) - USD ($) $ in Thousands	3 Months Ended				6 Months Ended
	Jun. 30, 2021	Mar. 31, 2021	Jun. 30, 2020	Mar. 31, 2020	Jun. 30, 2021	Jun. 30, 2020
Reclassification Adjustment out of Accumulated Other Comprehensive Income (Loss) [Line Items]
Provision for income taxes	$ 20,644		$ 12,839		$ 40,949	$ 24,732
Other non-operating expense (income), net	533		2,662		(555)	5,684
Loss before income taxes	(11,047)		99,330		83,658	294,021
Net Loss	5,537	$ 112,385	111,109	$ 205,702	117,922	316,812
Reclassification Out of Accumulated Other Comprehensive Income (Loss) | Derivative Instruments
Reclassification Adjustment out of Accumulated Other Comprehensive Income (Loss) [Line Items]
Cost of sales	(1,969)		1,512		870	8,942
Provision for income taxes	(91)		77		(199)	95
Net Loss	(2,060)		1,589		671	9,037
Reclassification Out of Accumulated Other Comprehensive Income (Loss) | Employee Benefit Plans
Reclassification Adjustment out of Accumulated Other Comprehensive Income (Loss) [Line Items]
Provision for income taxes	(92)		150		(62)	666
Loss before income taxes	(2,383)		(1,871)		(4,766)	(3,745)
Net Loss	(2,475)		(1,721)		(4,828)	(3,079)
Reclassification Out of Accumulated Other Comprehensive Income (Loss) | Amortization of prior service credit
Reclassification Adjustment out of Accumulated Other Comprehensive Income (Loss) [Line Items]
Other non-operating expense (income), net	390		466		789	932
Reclassification Out of Accumulated Other Comprehensive Income (Loss) | Recognized actuarial loss
Reclassification Adjustment out of Accumulated Other Comprehensive Income (Loss) [Line Items]
Other non-operating expense (income), net	$ (2,773)		$ (2,337)		$ (5,555)	$ (4,677)

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Accumulated Other Comprehensive Income (Loss) - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended				6 Months Ended
	Jun. 30, 2021	Mar. 31, 2021	Jun. 30, 2020	Mar. 31, 2020	Jun. 30, 2021	Jun. 30, 2020
Accumulated Other Comprehensive Income (Loss) [Line Items]
Currency translation adjustments loss	$ 25,710	$ (16,450)	$ 28,286	$ (136,399)	$ 9,260	$ (108,113)
Currency Translation Adjustments
Accumulated Other Comprehensive Income (Loss) [Line Items]
Currency translation adjustments loss	$ 20,932		$ 26,843		$ (7,201)	$ (118,791)

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Foreign Currency Transaction Exposure (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Currency Transaction Gains (Losses) [Line Items]
Currency transaction (losses), net	$ (432)	$ (5,931)	$ (7,312)	$ (8,352)
Operating income/loss
Currency Transaction Gains (Losses) [Line Items]
Currency transaction (losses), net	1,069	(4,328)	(2,503)	(5,917)
Other non-operating income/expense, net
Currency Transaction Gains (Losses) [Line Items]
Currency transaction (losses), net	$ (1,501)	$ (1,603)	$ (4,809)	$ (2,435)

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Derivative Instruments - Narrative (Details) - Foreign currency forward exchange and other contracts - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2021	Dec. 31, 2020	Jun. 30, 2020
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Notional amount	$ 1,290.0	$ 855.0	$ 1,170.0
Maximum
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative term of contracts	18 months

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Derivative Instruments - Assets and Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020	Jun. 30, 2020
Derivatives, Fair Value [Line Items]
Derivative assets, fair value	$ 8,803	$ 5,711	$ 13,754
Derivative liabilities, fair value	16,231	25,494	8,679
Derivatives designated as hedging instruments
Derivatives, Fair Value [Line Items]
Derivative assets, fair value	7,179	3,691	12,968
Derivative liabilities, fair value	11,044	24,691	3,214
Derivatives designated as hedging instruments | Foreign currency forward exchange and other contracts | Prepaid expenses and other current assets
Derivatives, Fair Value [Line Items]
Derivative assets, fair value	5,405	3,641	11,731
Derivatives designated as hedging instruments | Foreign currency forward exchange and other contracts | Other noncurrent assets
Derivatives, Fair Value [Line Items]
Derivative assets, fair value	1,774	50	1,237
Derivatives designated as hedging instruments | Foreign currency forward exchange and other contracts | Accrued liabilities
Derivatives, Fair Value [Line Items]
Derivative liabilities, fair value	10,774	20,330	1,973
Derivatives designated as hedging instruments | Foreign currency forward exchange and other contracts | Other noncurrent liabilities
Derivatives, Fair Value [Line Items]
Derivative liabilities, fair value	270	4,361	1,241
Derivatives not designated as hedging instruments
Derivatives, Fair Value [Line Items]
Derivative assets, fair value	1,624	2,020	786
Derivatives not designated as hedging instruments | Foreign currency forward exchange and other contracts
Derivatives, Fair Value [Line Items]
Derivative liabilities, fair value	5,187	803	5,465
Derivatives not designated as hedging instruments | Foreign currency forward exchange and other contracts | Prepaid expenses and other current assets
Derivatives, Fair Value [Line Items]
Derivative assets, fair value	1,624	1,982	786
Derivatives not designated as hedging instruments | Foreign currency forward exchange and other contracts | Other noncurrent assets
Derivatives, Fair Value [Line Items]
Derivative assets, fair value	0	38	0
Derivatives not designated as hedging instruments | Foreign currency forward exchange and other contracts | Accrued liabilities
Derivatives, Fair Value [Line Items]
Derivative liabilities, fair value	5,187	803	5,280
Derivatives not designated as hedging instruments | Foreign currency forward exchange and other contracts | Other noncurrent liabilities
Derivatives, Fair Value [Line Items]
Derivative liabilities, fair value	$ 0	$ 0	$ 185

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Derivative Instruments - Designated as Hedging Instruments by Classification and Amount of Gains and Losses (Details) - Derivatives Designated As Hedging Instruments - Foreign Exchange Forward - Cost of sales - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Derivative Instruments, Gain (Loss) [Line Items]
Amount of (losses) gains recognized in OCI	$ (771)	$ 2,594	$ 9,331	$ 16,022
Amount of (losses) gains reclassified from accumulated OCI to consolidated statements of operations	$ (2,060)	$ 1,589	$ 671	$ 9,037

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Derivative Instruments - Not Designated as Hedging Instruments by Classification and Amount of Gains and Losses (Details) - Derivatives Designated As Hedging Instruments - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Derivative Instruments, Gain (Loss) [Line Items]
Amount of net gains (losses) recognized in the Statements of Operations	$ 7,673	$ 8,121	$ (324)	$ (30,247)
Foreign Exchange Forward | Other non-operating expense (income), net
Derivative Instruments, Gain (Loss) [Line Items]
Amount of net gains (losses) recognized in the Statements of Operations	7,673	8,121	(963)	(30,247)
Foreign Exchange Forward | Cost of sales
Derivative Instruments, Gain (Loss) [Line Items]
Amount of net gains (losses) recognized in the Statements of Operations	$ 0	$ 0	$ 639	$ 0

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Fair Value Measurements - Assets and Liabilities Measured on Recurring Basis (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020	Jun. 30, 2020
Assets:
Foreign currency forward exchange contracts and other	$ 8,803	$ 5,711	$ 13,754
Available-for-sale security	7,500	4,268	3,645
Total assets	16,303	9,979	17,399
Liabilities:
Foreign currency forward exchange contracts and other	16,231	25,494	8,679
Level 1
Assets:
Foreign currency forward exchange contracts and other	0	0	0
Available-for-sale security	7,500	4,268	3,645
Total assets	7,500	4,268	3,645
Liabilities:
Foreign currency forward exchange contracts and other	0	0	0
Level 2
Assets:
Foreign currency forward exchange contracts and other	8,803	5,711	13,754
Available-for-sale security	0	0	0
Total assets	8,803	5,711	13,754
Liabilities:
Foreign currency forward exchange contracts and other	16,231	25,494	8,679
Level 3
Assets:
Foreign currency forward exchange contracts and other	0	0	0
Available-for-sale security	0	0	0
Total assets	0	0	0
Liabilities:
Foreign currency forward exchange contracts and other	$ 0	$ 0	$ 0

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Fair Value Measurements - Narrative (Details) - USD ($) $ in Millions	Jun. 30, 2021	Dec. 31, 2020	Jun. 30, 2020
Fair Value Disclosures [Abstract]
Estimated fair value of long-term debt	$ 3,090	$ 3,110	$ 2,870
Carrying value of long-term debt	$ 2,880	$ 2,900	$ 2,900

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Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended				6 Months Ended
	Jun. 30, 2021	Mar. 31, 2021	Jun. 30, 2020	Mar. 31, 2020	Jun. 30, 2021	Jun. 30, 2020
Basic:
Net Loss	$ (5,537)	$ (112,385)	$ (111,109)	$ (205,702)	$ (117,922)	$ (316,812)
Weighted average number of common shares (in shares)	349,441		346,875		349,244	346,778
Basic net loss per common share (USD per share)	$ (0.02)		$ (0.32)		$ (0.34)	$ (0.91)
Diluted:
Net Loss	$ (5,537)	$ (112,385)	$ (111,109)	$ (205,702)	$ (117,922)	$ (316,812)
Weighted average number of common shares (in shares)	349,441		346,875		349,244	346,778
Dilutive stock options and non-participating RSUs (in shares)	0		0		0	0
Weighted average number of common and potential common shares (in shares)	349,441		346,875		349,244	346,778
Diluted net loss per common share (USD per share)	$ (0.02)		$ (0.32)		$ (0.34)	$ (0.91)

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Employee Benefit Plans - Components of Net Periodic Benefit Cost (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Defined Benefit Pension Plans
Defined Benefit Plan Disclosure [Line Items]
Service cost	$ 1,293	$ 1,112	$ 2,586	$ 2,221
Interest cost	2,530	3,737	5,070	7,518
Expected return on plan assets	(4,637)	(4,902)	(9,264)	(9,823)
Amortization of prior service cost (credit)	119	43	230	86
Recognized actuarial loss (gain)	2,775	2,356	5,560	4,715
Net periodic benefit cost (credit)	2,080	2,346	4,182	4,717
Postretirement Benefit Plans
Defined Benefit Plan Disclosure [Line Items]
Interest cost	19	35	39	70
Amortization of prior service cost (credit)	(509)	(509)	(1,019)	(1,018)
Recognized actuarial loss (gain)	(2)	(19)	(5)	(38)
Net periodic benefit cost (credit)	$ (492)	$ (493)	$ (985)	$ (986)

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Employee Benefit Plans - Narrative (Details) $ in Millions	6 Months Ended
	Jun. 30, 2021 USD ($)
Retirement Benefits [Abstract]
Cash contributions made during the period	$ 4
Expected additional cash contributions	$ 13

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Share-Based Payments - Narrative (Details)	6 Months Ended
	Jun. 30, 2021 USD ($) incentiveProgram	Jun. 30, 2020 USD ($)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of incentive programs | incentiveProgram	3
Proceeds from exercise of stock options	$ 3,300,000	$ 0
Stock options, RSUs, and performance shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total unrecognized compensation expense related to unvested share-based payments	$ 66,700,000
Weighted-average period for unrecognized compensation expense expected to be recognized	1 year 10 months 24 days
Stock options, RSUs, and performance shares | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
General vesting period	3 years
Stock options | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Period of stock option expiration from date of grant	10 years

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Share-Based Payments - Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended				6 Months Ended
	Jun. 30, 2021	Mar. 31, 2021	Jun. 30, 2020	Mar. 31, 2020	Jun. 30, 2021	Jun. 30, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense			$ 9,138		$ 30,280	$ 23,414
Share-based compensation	$ 15,168	$ 15,112	9,138	$ 14,275
Additional Paid-In Capital
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation	15,168	$ 15,112	9,138	$ 14,275
Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	2,662		2,376		5,444	5,507
Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	7,673		6,588		14,031	13,950
Performance awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	$ 4,833		$ 174		$ 10,805	$ 3,957

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Other Selling and Administrative Expenses (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Other Income and Expenses [Abstract]
Design and development	$ 46,747	$ 46,486	$ 90,728	$ 91,113
Identifiable intangible asset amortization	$ 9,544	$ 9,687	$ 19,058	$ 19,652

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Restructuring Charges - Schedule of Capital Light Restructuring Charges (Details) - Optimizing for Growth (formerly Capital Light Initiative) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Restructuring Cost and Reserve [Line Items]
Restructuring charges	$ 11,293	$ 2,781	$ 18,936	$ 8,584
Cost of sales
Restructuring Cost and Reserve [Line Items]
Restructuring charges	(151)	1,407	1,782	4,464
Other selling and administrative expenses
Restructuring Cost and Reserve [Line Items]
Restructuring charges	$ 11,444	$ 1,374	$ 17,154	$ 4,120

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Restructuring Charges - Severance and Other Restructuring Charges Activity (Details) - Optimizing for Growth (formerly Capital Light Initiative) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Restructuring Reserve [Roll Forward]
Liability at December 31, 2020			$ 5,324
Charges	$ 11,293	$ 2,781	18,936	$ 8,584
Payments/Utilization			(9,954)
Liability at June 30, 2021	14,306		14,306
Severance
Restructuring Reserve [Roll Forward]
Liability at December 31, 2020			5,294
Charges			10,374
Payments/Utilization			(4,537)
Liability at June 30, 2021	11,131		11,131
Other restructuring charges
Restructuring Reserve [Roll Forward]
Liability at December 31, 2020			30
Charges			8,562
Payments/Utilization			(5,417)
Liability at June 30, 2021	$ 3,175		$ 3,175

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Restructuring Charges - Narrative (Details) - USD ($) $ in Millions	3 Months Ended	6 Months Ended
	Mar. 31, 2021	Jun. 30, 2020	Jun. 30, 2021
Mexico | Land and building
Restructuring Cost and Reserve [Line Items]
Gain on disposal of property, plant, and equipment	$ 15.8
Optimizing for Growth (formerly Capital Light Initiative)
Restructuring Cost and Reserve [Line Items]
Severance and other restructuring charges incurred to date			$ 69.0
Restructuring and related cost, cost incurred to date, non-cash charges			18.0
Optimizing for Growth (formerly Capital Light Initiative) | Minimum
Restructuring Cost and Reserve [Line Items]
Expected restructuring costs			140.0
Expected non-cash restructuring costs			40.0
Optimizing for Growth (formerly Capital Light Initiative) | Maximum
Restructuring Cost and Reserve [Line Items]
Expected restructuring costs			165.0
Expected non-cash restructuring costs			$ 45.0
Severance | Other Cost Savings Actions
Restructuring Cost and Reserve [Line Items]
Severance charges		$ 15.0

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Income Taxes (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Income Tax Disclosure [Abstract]
Provision for income taxes	$ 20,644,000	$ 12,839,000	$ 40,949,000	$ 24,732,000
Discrete tax expense	12,200,000	$ 3,200,000	19,500,000	9,600,000
Current federal tax benefit			0	$ 0
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	$ 35,800,000		$ 35,800,000

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Contingencies (Details) $ in Millions		1 Months Ended		2 Months Ended	6 Months Ended
	Apr. 26, 2015	Jan. 31, 2010 USD ($)	Apr. 30, 1999 USD ($)	Jan. 31, 2020 stockholder	Jun. 30, 2021 class lawsuit child	Nov. 11, 2014 USD ($)	Jul. 26, 2013 USD ($)
Yellowstone
Loss Contingencies [Line Items]
Alleged loss of profits			$ 1.0
Unpaid accounts receivable			4.0
Alleged business investments			3.0
Initial estimate of loss of profits			$ 1.0
Court awarded damages from counterclaim		$ 4.0
Damages awarded, including attorney fees, inflation and interest							$ 17.0
Counter claim awarded, including inflation						$ 7.5	$ 7.5
Damages award including inflation and interest						$ 14.5
Fine on claims (as a percent)	1.00%
Sleeper
Loss Contingencies [Line Items]
Number of additional lawsuits pending | lawsuit					41
Number of children with injuries or fatalities related to lawsuits | child					45
Whistleblower Letter
Loss Contingencies [Line Items]
Number of additional lawsuits pending | lawsuit					3
Number of stockholders who filed complaints | stockholder				2
Minimum | Sleeper
Loss Contingencies [Line Items]
Number of consumer classes | class					15

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Segment Information - Revenues and Income (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Segment Reporting Information [Line Items]
Revenues	$ 1,026,366	$ 732,136	$ 1,900,558	$ 1,326,206
Operating Income (Loss)	49,140	(48,078)	83,011	(192,850)
Interest expense	38,144	49,615	168,627	98,595
Interest (income)	(584)	(1,025)	(1,403)	(3,108)
Other non-operating expense (income), net	533	2,662	(555)	5,684
Income (Loss) Before Income Taxes	11,047	(99,330)	(83,658)	(294,021)
Operating Segments
Segment Reporting Information [Line Items]
Operating Income (Loss)	190,633	63,532	342,179	36,255
Operating Segments | North America and International
Segment Reporting Information [Line Items]
Restructuring charges	(200)	1,400	1,800	4,500
Operating Segments | North America
Segment Reporting Information [Line Items]
Revenues	560,830	432,892	1,040,489	720,446
Operating Income (Loss)	149,600	81,838	274,451	98,686
Operating Segments | International
Segment Reporting Information [Line Items]
Revenues	424,897	271,065	774,252	540,421
Operating Income (Loss)	50,758	(4,420)	87,018	(31,444)
Operating Segments | American Girl
Segment Reporting Information [Line Items]
Revenues	40,639	28,179	85,817	65,339
Operating Income (Loss)	(9,725)	(13,886)	(19,290)	(30,987)
Corporate and other expense
Segment Reporting Information [Line Items]
Operating Income (Loss)	(141,493)	(111,610)	(259,168)	(229,105)
Restructuring charges	10,700	16,200	16,500	23,800
Total product recall charges	$ 6,800	$ 2,900	$ 12,100	$ 9,100

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Segment Information - Assets (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020	Jun. 30, 2020
Segment Reporting, Asset Reconciling Item [Line Items]
Accounts receivable and inventories, net	$ 1,602,121	$ 1,562,440	$ 1,378,366
Operating Segments
Segment Reporting, Asset Reconciling Item [Line Items]
Accounts receivable and inventories, net	1,382,862	1,413,861	1,190,718
Operating Segments | North America
Segment Reporting, Asset Reconciling Item [Line Items]
Accounts receivable and inventories, net	686,959	658,404	615,180
Operating Segments | International
Segment Reporting, Asset Reconciling Item [Line Items]
Accounts receivable and inventories, net	644,450	715,043	528,510
Operating Segments | American Girl
Segment Reporting, Asset Reconciling Item [Line Items]
Accounts receivable and inventories, net	51,453	40,414	47,028
Corporate and other expense
Segment Reporting, Asset Reconciling Item [Line Items]
Accounts receivable and inventories, net	$ 219,259	$ 148,579	$ 187,648

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Segment Information - Revenues by Geographic Area (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Segment Reporting Information [Line Items]
Revenues	$ 1,026,366	$ 732,136	$ 1,900,558	$ 1,326,206
Operating Segments | North America
Segment Reporting Information [Line Items]
Revenues	560,830	432,892	1,040,489	720,446
Operating Segments | North America | North America
Segment Reporting Information [Line Items]
Revenues	601,469	461,071	1,126,306	785,785
Operating Segments | International
Segment Reporting Information [Line Items]
Revenues	424,897	271,065	774,252	540,421
Operating Segments | International | EMEA
Segment Reporting Information [Line Items]
Revenues	246,816	151,948	484,985	325,271
Operating Segments | International | Latin America
Segment Reporting Information [Line Items]
Revenues	92,477	57,719	148,755	108,994
Operating Segments | International | Asia Pacific
Segment Reporting Information [Line Items]
Revenues	$ 85,604	$ 61,398	$ 140,512	$ 106,156

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Revision for Immaterial Misstatements - Narrative (Details) - USD ($) $ in Thousands	Jan. 01, 2018	Jun. 30, 2021	Mar. 31, 2021	Dec. 31, 2020	Jun. 30, 2020	Mar. 31, 2020	Jan. 01, 2020	Dec. 31, 2019
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Total stockholders' equity		$ 527,719	$ 490,565	$ 610,144	$ 106,100	$ 179,772		$ 508,564
Retained Earnings
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Total stockholders' equity		$ 1,435,688	$ 1,441,225	1,553,610	1,113,220	$ 1,224,329		$ 1,430,031
Tooling Misstatement
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Immaterial misstatement, amount	$ (37,200)
Other Misstatements
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Immaterial misstatement, amount	12,100
Adjustments
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Total stockholders' equity				$ 13,801	$ 19,952
Adjustments | Retained Earnings
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Total stockholders' equity	$ 25,100						$ 16,900

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Revision for Immaterial Misstatements - Balance Sheet (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Mar. 31, 2021	Dec. 31, 2020	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Inventories	$ 818,037		$ 528,474	$ 727,864
Prepaid expenses and other current assets	186,965		172,070	174,218
Total current assets	2,173,829		2,496,691	2,014,141
Property, plant, and equipment, net	459,828		473,794	471,866
Other noncurrent assets	870,829		878,970	847,366
Total assets	5,241,058		5,534,890	4,998,705
Accrued liabilities	647,425		831,922	541,833
Total current liabilities	1,122,390		1,355,379	1,359,785
Other noncurrent liabilities	445,736		465,350	435,565
Total noncurrent liabilities	3,590,949		3,569,367	3,532,820
Retained earnings	1,435,688		1,553,610	1,113,220
Total stockholders' equity	$ 527,719	$ 490,565	610,144	106,100	$ 179,772	$ 508,564
As Previously Reported
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Inventories			514,673	702,592
Prepaid expenses and other current assets				211,418
Total current assets			2,482,890	2,026,069
Property, plant, and equipment, net				506,555
Other noncurrent assets				794,724
Total assets			5,521,089	4,992,680
Accrued liabilities				563,633
Total current liabilities				1,381,585
Other noncurrent liabilities				427,692
Total noncurrent liabilities				3,524,947
Retained earnings			1,539,809	1,093,268
Total stockholders' equity			596,343	86,148
Adjustments
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Inventories			13,801	25,272
Prepaid expenses and other current assets				(37,200)
Total current assets			13,801	(11,928)
Property, plant, and equipment, net				(34,689)
Other noncurrent assets				52,642
Total assets			13,801	6,025
Accrued liabilities				(21,800)
Total current liabilities				(21,800)
Other noncurrent liabilities				7,873
Total noncurrent liabilities				7,873
Retained earnings			13,801	19,952
Total stockholders' equity			$ 13,801	$ 19,952

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Revision for Immaterial Misstatements - Statement of Operations and Comprehensive Loss (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended				6 Months Ended
	Jun. 30, 2021	Mar. 31, 2021	Jun. 30, 2020	Mar. 31, 2020	Jun. 30, 2021	Jun. 30, 2020
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Cost of sales	$ 538,361		$ 413,225		$ 1,000,716	$ 747,073
Gross profit	488,005		318,911		899,842	579,133
Operating income (loss)	49,140		(48,078)		83,011	(192,850)
Income (loss) before income taxes	11,047		(99,330)		(83,658)	(294,021)
Net income (loss)	(5,537)	$ (112,385)	(111,109)	$ (205,702)	(117,922)	(316,812)
Comprehensive income (loss)	$ 20,173		$ (82,823)		$ (108,662)	$ (424,925)
Net (loss) income per common share - basic (USD per share)	$ (0.02)		$ (0.32)		$ (0.34)	$ (0.91)
Net (loss) income per common share - diluted (USD per share)	$ (0.02)		$ (0.32)		$ (0.34)	$ (0.91)
As Previously Reported
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Cost of sales			$ 411,288			$ 750,175
Gross profit			320,848			576,031
Operating income (loss)			(46,141)			(195,952)
Income (loss) before income taxes			(97,393)			(297,123)
Net income (loss)			(109,172)			(319,914)
Comprehensive income (loss)			$ (80,886)			$ (428,027)
Net (loss) income per common share - basic (USD per share)			$ (0.31)			$ (0.92)
Net (loss) income per common share - diluted (USD per share)			$ (0.31)			$ (0.92)
Adjustments
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Cost of sales			$ 1,937			$ (3,102)
Gross profit			(1,937)			3,102
Operating income (loss)			(1,937)			3,102
Income (loss) before income taxes			(1,937)			3,102
Net income (loss)			(1,937)			3,102
Comprehensive income (loss)			$ (1,937)			$ 3,102
Net (loss) income per common share - basic (USD per share)			$ (0.01)			$ 0.01
Net (loss) income per common share - diluted (USD per share)			$ (0.01)			$ 0.01

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Revision for Immaterial Misstatements - Statement of Cash Flows (Details) - USD ($) $ in Thousands	3 Months Ended				6 Months Ended
	Jun. 30, 2021	Mar. 31, 2021	Jun. 30, 2020	Mar. 31, 2020	Jun. 30, 2021	Jun. 30, 2020
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Net income (loss)	$ (5,537)	$ (112,385)	$ (111,109)	$ (205,702)	$ (117,922)	$ (316,812)
Changes in assets and liabilities:
Increase (Decrease) in Inventories					(338,313)	(244,935)
Prepaid expenses and other current assets					(14,700)	(19,423)
Accounts payable, accrued liabilities, and income taxes payable					(211,295)	(318,005)
Increase (Decrease) in Other Operating Assets and Liabilities, Net					(5,189)	23,048
Net cash flows provided by (used for) operating activities					(241,370)	(469,265)
Purchases of tools, dies, and molds					(34,355)	(26,384)
Purchases of other property, plant, and equipment					(40,317)	(27,574)
Net cash flows provided by (used for) investing activities					$ (27,195)	(74,699)
As Previously Reported
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Net income (loss)			(109,172)			(319,914)
Changes in assets and liabilities:
Increase (Decrease) in Inventories						(241,833)
Prepaid expenses and other current assets						(30,923)
Accounts payable, accrued liabilities, and income taxes payable						(305,316)
Increase (Decrease) in Other Operating Assets and Liabilities, Net						28,092
Net cash flows provided by (used for) operating activities						(463,032)
Purchases of tools, dies, and molds						(25,824)
Purchases of other property, plant, and equipment						(34,367)
Net cash flows provided by (used for) investing activities						(80,932)
Adjustments
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Net income (loss)			$ (1,937)			3,102
Changes in assets and liabilities:
Increase (Decrease) in Inventories						(3,102)
Prepaid expenses and other current assets						11,500
Accounts payable, accrued liabilities, and income taxes payable						(12,689)
Increase (Decrease) in Other Operating Assets and Liabilities, Net						(5,044)
Net cash flows provided by (used for) operating activities						(6,233)
Purchases of tools, dies, and molds						(560)
Purchases of other property, plant, and equipment						6,793
Net cash flows provided by (used for) investing activities						$ 6,233