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Derivative Instruments
 12 Months Ended
Dec. 31, 2015
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 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 (“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. Additionally, 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. As of December 31, 2015 and 2014, Mattel held foreign currency forward exchange contracts with notional amounts of $930.8 million and $1.19 billion, respectively.

The following table presents Mattel’s derivative assets and liabilities:
 
 
Derivative Assets
 
Balance Sheet Classification
 
Fair Value
 
 
 
December 31, 2015
 
December 31, 2014
 
 
 
(In thousands)
Derivatives designated as hedging instruments:
 
 
 
 
 
Foreign currency forward exchange contracts
Prepaid expenses and other
current assets
 
$
15,279

 
$
31,982

Foreign currency forward exchange contracts
Other noncurrent assets
 
1,611

 
1,443

Total derivatives designated as hedging instruments
 
 
$
16,890

 
$
33,425

Derivatives not designated as hedging instruments:
 
 
 
 
 
Foreign currency forward exchange contracts
Prepaid expenses and other
current assets
 
$
1,216

 
$
318

Total
 
 
$
18,106

 
$
33,743

 
 
 
 
 
 
 
Derivative Liabilities
 
Balance Sheet Classification
 
Fair Value
 
 
 
December 31, 2015
 
December 31, 2014
 
 
 
(In thousands)
Derivatives designated as hedging instruments:
 
 
 
 
 
Foreign currency forward exchange contracts
Accrued liabilities
 
$
1,214

 
$
2,408

Foreign currency forward exchange contracts
Other noncurrent liabilities
 
219

 
36

Total derivatives designated as hedging instruments
 
 
$
1,433

 
$
2,444

Derivatives not designated as hedging instruments:
 
 
 
 
 
Foreign currency forward exchange contracts
Accrued liabilities
 
$
2,287

 
$
10,954

Total
 
 
$
3,720

 
$
13,398


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
 
Statements of
Operations
Classification
 
For the Year 2015
 
For the Year 2014
 
For the Year 2013
 
 
(In thousands)
 
 
Foreign currency forward exchange contracts:
 
 
 
 
 
 
 
Amount of gain (loss) recognized in OCI
$
37,926

 
$
39,931

 
$
(13,103
)
 
 
Amount of gain (loss) reclassified from accumulated OCI to statements of operations
52,588

 
(883
)
 
(4,897
)
 
Cost of sales


The net gains (losses) of $52.6 million, $(0.9) million, and $(4.9) million reclassified from accumulated other comprehensive loss to the consolidated statements of operations during 2015, 2014, and 2013, respectively, are offset by the changes in cash flows associated with the underlying hedged transactions.
 
 
Derivatives Not Designated As
Hedging Instruments
 
Statements of Operations
Classification
 
For the Year 2015
 
For the Year 2014
 
For the Year 2013
 
 
(In thousands)
 
 
Amount of (loss) gain recognized in the statements of operations:
 
 
 
 
 
 
 
Foreign currency forward exchange contracts
$
(51,679
)
 
$
(31,485
)
 
$
17,975

 
Non-operating income/expense
Cross currency swap contract
5,288

 
—

 
—

 
Non-operating income/ expense
Foreign currency forward exchange contracts
(265
)
 
732

 
(4,455
)
 
Cost of sales
Total
$
(46,656
)
 
$
(30,753
)
 
$
13,520

 
 

The net (losses) gains of $(46.7) million, $(30.8) million, and $13.5 million recognized in the consolidated statements of operations during 2015, 2014, and 2013, respectively, are offset by foreign currency transaction gains and losses on the related hedged balances.