Derivative Instruments

12 Months Ended

Dec. 31, 2025

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments

Derivative Instruments

Mattel seeks to mitigate its exposure to foreign currency transaction risk by monitoring its foreign currency transaction exposure for the year and partially hedging such exposure using foreign currency forward exchange contracts. Mattel uses foreign currency forward exchange contracts as cash flow hedges primarily to hedge its purchases and sales of inventory denominated in foreign currencies. These contracts have maturity dates of up to 24 months. These derivative instruments have been designated as effective cash flow hedges, whereby the unsettled hedges are reported in Mattel's consolidated balance sheets at fair value, with changes in the fair value of the hedges reflected in other comprehensive income ("OCI"). Realized gains and losses for these contracts are recorded in the consolidated statements of operations in the period in which the inventory is sold to customers. Mattel uses foreign currency forward exchange contracts to hedge intercompany loans and advances denominated in foreign currencies. Due to the short-term nature of the contracts involved, Mattel does not use hedge accounting for these contracts, and as such, changes in fair value are recorded in the period of change in the consolidated statements of operations. Mattel utilizes derivative contracts to hedge certain purchases of commodities, which were not material. As of December 31, 2025 and 2024, Mattel held foreign currency forward exchange contracts and other commodity derivative instruments, with notional amounts of approximately $677 million and $628 million, respectively.

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

	Derivative Assets
	Balance Sheet Classification	Fair Value
		December 31, 2025		December 31, 2024
		(In thousands)
Derivatives Designated as Hedging Instruments:
Foreign currency forward exchange and other contracts	Prepaid expenses and other current assets	$	854	$	17,290
Foreign currency forward exchange and other contracts	Other noncurrent assets	15		2,775
Total Derivatives Designated as Hedging Instruments		$	869	$	20,065
Derivatives Not Designated as Hedging Instruments:
Foreign currency forward exchange and other contracts	Prepaid expenses and other current assets	$	469	$	1,966
Total Derivatives Not Designated as Hedging Instruments		$	469	$	1,966
		$	1,338	$	22,031
	Derivative Liabilities
	Balance Sheet Classification	Fair Value
		December 31, 2025		December 31, 2024
		(In thousands)
Derivatives Designated as Hedging Instruments:
Foreign currency forward exchange and other contracts	Accrued liabilities	$	14,781	$	1,370
Foreign currency forward exchange and other contracts	Other noncurrent liabilities	1,257		65
Total Derivatives Designated as Hedging Instruments		$	16,038	$	1,435
Derivatives Not Designated as Hedging Instruments:
Foreign currency forward exchange and other contracts	Accrued liabilities	$	295	$	902
Total Derivatives Not Designated as Hedging Instruments		$	295	$	902
		$	16,333	$	2,337

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 Year Ended						Statements of Operations Classification
	December 31, 2025		December 31, 2024		December 31, 2023
	(In thousands)
Foreign Currency Forward Exchange Contracts:
Amount of (losses) gains recognized in OCI	$	(49,196)	$	39,409	$	(15,903)
Amount of (losses) gains reclassified from accumulated OCI to the consolidated statements of operations	(18,173)		21,639		10,292		Cost of sales

The gains and losses reclassified from accumulated other comprehensive loss to the consolidated statements of operations during 2025, 2024, and 2023, respectively, were offset by the recognition of the underlying hedged transactions.

As of December 31, 2025, approximately $18 million of net losses reported within other accumulated comprehensive loss are expected to be reclassified into the consolidated statements of operations within the next twelve months.

	Derivatives Not Designated As Hedging Instruments
	For the Year Ended						Statements of Operations Classification
	December 31, 2025		December 31, 2024		December 31, 2023
	(In thousands)
Amount of Net Gains Recognized in the Statements of Operations:
Foreign currency forward exchange and other contracts	$	7,739	$	8,404	$	19,939	Other non-operating income/expense, net

The net gains recognized in the consolidated statements of operations during 2025, 2024, and 2023, respectively, were offset by foreign currency transaction gains and losses on the related derivative balances.