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Accumulated Other Comprehensive Income (Loss)
 3 Months Ended
Mar. 31, 2015
Accumulated Other Comprehensive Income (Loss)
11. Accumulated Other Comprehensive Income (Loss)

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

 

     For the Three Months Ended March 31, 2015  
     Derivative
Instruments		     Defined Benefit
Pension Plans		     Currency
Translation
Adjustments		     Total  
     (In thousands)  

Accumulated Other Comprehensive Income (Loss), Net of Tax, as of December 31, 2014

    $ 30,025      $ (161,507 )    $ (490,607 )    $ (622,089 ) 

Other comprehensive income (loss) before reclassifications

      25,751        (139 )      (126,692 )      (101,080 ) 

Amounts reclassified from accumulated other comprehensive income (loss)

      (8,851 )      2,994        —         (5,857 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in other comprehensive income

   16,900      2,855      (126,692 )    (106,937 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Accumulated Other Comprehensive Income (Loss), Net of Tax, as of March 31, 2015

 $ 46,925    $ (158,652 )  $ (617,299 )  $ (729,026 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

 

     For the Three Months Ended March 31, 2014  
     Derivative
Instruments		     Defined Benefit
Pension Plans		     Currency
Translation
Adjustments		     Total  
     (In thousands)  

Accumulated Other Comprehensive Income (Loss), Net of Tax, as of December 31, 2013

    $ (10,789 )    $ (131,946 )    $ (300,941 )    $ (443,676 ) 

Other comprehensive income (loss) before reclassifications

      1,228        (92 )      3,872        5,008   

Amounts reclassified from accumulated other comprehensive income (loss)

      2,767        2,180        —         4,947   
  

 

 

    

 

 

    

 

 

    

 

 

  

Net decrease in other comprehensive loss

   3,995      2,088      3,872      9,955   
  

 

 

    

 

 

    

 

 

    

 

 

  

Accumulated Other Comprehensive Income (Loss), Net of Tax, as of March 31, 2014

 $ (6,794 )  $ (129,858 )  $ (297,069 )  $ (433,721 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

 

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
March 31,
2015		     For the Three
Months Ended
March 31,
2014		     Statements of Operations
Classification
     (In thousands)      

Derivative Instruments

   

Gain (loss) on foreign currency forward exchange contracts

    $ 8,820      $ (2,718 )    Cost of sales
     31        (49 )    Provision for income taxes
  

 

 

    

 

 

    
$ 8,851    $ (2,767 )  Net loss
  

 

 

    

 

 

    

Defined Benefit Pension Plans

Amortization of prior service credit

 $ 264    $ 264    (a)

Recognized actuarial loss

   (4,931 )    (3,662 )  (a)
  

 

 

    

 

 

    
  (4,667 )    (3,398 ) 
  1,673      1,218    Provision for income taxes
  

 

 

    

 

 

    
$ (2,994 )  $ (2,180 )  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 15 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 US dollar. The translation of its net investments in subsidiaries with non-US dollar functional currencies subjects Mattel to the impact of currency exchange rate fluctuations in its results of operations and financial position. Assets and liabilities of subsidiaries with non-US dollar functional currencies are translated into US 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 income (loss) within stockholders’ equity. Currency translation adjustments resulted in a net loss of $126.7 million for the three months ended March 31, 2015, primarily due to the weakening of the Euro and Brazilian real against the US dollar. Currency translation adjustments resulted in a net gain of $3.9 million for the three months ended March 31, 2014, primarily due to the strengthening of the Brazilian real, Australian dollar, and Indonesian rupiah against the US dollar, partially offset by the weakening of the Argentine peso.