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Income Taxes (Tables)

12 Months Ended

Dec. 31, 2025

Schedule of Components of Pre-Tax Income

Consolidated pre-tax income consisted of the following:


	For the Year Ended
	December 31, 2025		December 31, 2024		December 31, 2023
	(In thousands)
U.S. operations	$	179,094	$	250,455	$	150,361
Foreign operations	280,395		372,050		315,043
Consolidated pre-tax income excluding equity method investments	$	459,489	$	622,505	$	465,404

Schedule of Provision for Current and Deferred Income Taxes

The provision for current and deferred income taxes consisted of the following:


	For the Year Ended
	December 31, 2025		December 31, 2024		December 31, 2023
	(In thousands)
Current
Federal	$	8,559	$	40,647	$	8,256
State	18,205		5,888		4,669
Foreign	85,927		76,562		79,843
	112,691		123,097		92,768
Deferred
Federal	6,662		(15,645)		(24,711)
State	(6,096)		(2,463)		1,986
Foreign	(23,483)		637		199,432
	(22,917)		(17,471)		176,707
Provision for income taxes	$	89,774	$	105,626	$	269,475

Schedule of Deferred Income Tax Assets (Liabilities)

Mattel's deferred income tax assets (liabilities) were composed of the following:


	December 31, 2025		December 31, 2024
	(In thousands)
Tax credit carryforwards	$	17,853	$	20,007
Research and development expenses	164,980		129,836
Net operating loss carryforwards	89,101		87,398
Interest expense	28,093		50,214
Allowances and reserves	108,594		96,264
Intangible assets	33,360		31,209
Deferred compensation	65,833		71,880
Postretirement benefits	15,944		19,138
Lease liabilities	85,704		83,301
Other	39,021		45,819
Gross deferred income tax assets	648,483		635,066
Intangible assets	(172,409)		(167,607)
Right-of-use assets	(77,563)		(75,266)
Other	(25,111)		(42,026)
Gross deferred income tax liabilities	(275,083)		(284,899)
Deferred income tax asset valuation allowances	(100,454)		(97,661)
Net deferred income tax assets	$	272,946	$	252,506

Net deferred income tax assets and other noncurrent liabilities were reported in the consolidated balance sheets as follows:


	December 31, 2025		December 31, 2024
	(In thousands)
Deferred income tax assets	$	312,913	$	296,862
Other noncurrent liabilities	(39,967)		(44,356)
	$	272,946	$	252,506

Schedule of Expiration of Loss and Tax Credit Carryforwards

Mattel's loss and tax credit carryforwards expire in the following periods:


	Loss Carryforward		Tax Credit Carryforward
	(In thousands)
2026–2030	$	5,067	$	—
Thereafter	42,376		1,494
No expiration date	312,169		16,163
	$	359,612	$	17,657

Schedule of Reconciliation of Provision for Income Taxes at US Federal Statutory Rate to Provision in Statements of Operations

A reconciliation of the provision for income taxes to the amount computed by applying the 21% statutory U.S. federal income tax rate to income before income taxes after the adoption of ASU 2023-09 is as follows:


	For the Year Ended
	December 31, 2025
	Amount		Percent
	(In thousands)
Provision at U.S. federal statutory rate	$	96,493	21.0	%
State and local income tax, net of federal income tax effect (a)	1,533		0.3
Foreign tax effects:
Hong Kong
Income not subject to tax	(10,482)		(2.3)
Minimum top-up tax	5,816		1.3
Other adjustments	(3,364)		(0.7)
Netherlands	7,431		1.6
Other foreign jurisdictions	8,469		1.8
Effect of cross-border tax laws:
Foreign-derived intangible income	(7,918)		(1.7)
Subpart F income inclusion	(18,895)		(4.1)
Other	3,441		0.7
Tax credits:
Research and development tax credits	(7,920)		(1.7)
Nontaxable or nondeductible items
Non-deductible executive compensation	6,104		1.3
Other	(2,723)		(0.6)
Changes in unrecognized tax benefits	11,789		2.6
Provision for income taxes	$	89,774	19.5	%

(a)The states and local jurisdictions that contribute to the majority (greater than 50%) of the effect in this category include Pennsylvania and California.

A reconciliation of the provision for income taxes to the amount computed by applying the 21% statutory U.S. federal income tax rate to income before income taxes for years prior to the adoption of ASU 2023-09 is as follows:


		For the Year Ended
		December 31, 2024		December 31, 2023
	(In thousands)
Provision at U.S. federal statutory rate		$	130,726	$	97,735
Differences resulting from:
Changes in valuation allowances		13,362		2,343
Foreign earnings taxed at different rates, including foreign losses without benefit		(9,111)		(12,480)
Foreign-derived intangible income		(8,006)		(364)
Tax related to pass-through income		5,125		3,869
Non deductible executive compensation		5,941		7,248
State and local taxes, net of U.S. federal benefit		7,711		8,480
Adjustments to previously accrued taxes		5,553		9,943
Tax on undistributed earnings of foreign subsidiaries		1,100		(1,000)
Research and development tax credit		(6,163)		(7,248)
Discrete tax impact related to intra-group IP transfer		(34,762)		161,388
Other		(5,850)		(439)
Provision for income taxes		$	105,626	$	269,475

Schedule of Reconciliation of Unrecognized Tax Benefits

A reconciliation of the reserve for unrecognized tax benefits is as follows:


	For the Year Ended
	December 31, 2025		December 31, 2024		December 31, 2023
	(In thousands)
Unrecognized tax benefits at January 1	$	134,853	$	129,970	$	114,057
Increases for positions taken in current year	7,135		9,123		5,855
Increases for positions taken in a prior year	17,373		12,715		18,831
Decreases for positions taken in a prior year	(2,074)		(7,983)		(4,841)
Decreases for settlements with taxing authorities	(498)		(2,940)		(273)
Decreases for lapses in the applicable statute of limitations	(3,320)		(6,032)		(3,659)
Unrecognized tax benefits at December 31	$	153,469	$	134,853	$	129,970

Schedule of Income Taxes Paid

The amount of income taxes paid (net of refunds received) by Mattel were as follows:


	For the Year Ended
	December 31, 2025
	(In thousands)
Federal	$	10,825
State and local	9,287
Foreign
Hong Kong	17,870
Netherlands	15,840
Brazil	5,577
China	5,476
All other foreign	42,973
Total income taxes paid (net of refunds received)	$	107,848