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Segment Information
 12 Months Ended
Dec. 31, 2015
Segment Reporting [Abstract]  
Segment Information
Segment Information
Description of Segments
Mattel, through its subsidiaries, sells a broad variety of toy products which are grouped into four major brand categories, including the Construction and Arts & Crafts brand category, which was introduced in the second quarter of 2014:
Mattel Girls & Boys Brands—including Barbie® fashion dolls and accessories (“Barbie”), Monster High®, Disney Classics®, Ever After High®, Little Mommy®, and Polly Pocket (collectively “Other Girls”), Hot Wheels® and Matchbox® vehicles and play sets (collectively “Wheels”), and CARS®, Disney Planes™, BOOMco®, Radica®, Toy Story®, Max Steel®, WWE® Wrestling, DC Comics™, and games and puzzles (collectively “Entertainment”).
Fisher-Price Brands—including Fisher-Price®, Little People®, BabyGear™, Laugh & Learn®, and Imaginext® (collectively “Core Fisher-Price”), Thomas & Friends®, Dora the Explorer®, Mickey Mouse® Clubhouse, and Disney Jake and the Never Land Pirates® (collectively “Fisher-Price Friends”), and Power Wheels®.
American Girl Brands—including Truly Me®, BeForever®, and Bitty Baby®. American Girl® Brands products are sold directly to consumers via its catalog, website, and proprietary retail stores. Its children’s publications are also sold to certain retailers.
Construction and Arts & Crafts Brands—including MEGA BLOKS®, RoseArt®, and Board Dudes®.
Mattel’s operating segments are: (i) North America, which consists of the US and Canada, (ii) International, and (iii) American Girl. Factors considered in determining the operating segments include the nature of business activities, the management structure directly accountable to the Chief Operating Decision Maker (“CODM”) for operating and administrative activities, availability of discrete financial information, and strategic priorities within the organizational structure. These factors correspond to the manner in which the CODM reviews and evaluates operating performance to make decisions about resources to be allocated to these operating segments.
The North America and International segments sell products in the Mattel Girls & Boys Brands, Fisher-Price Brands, and Construction and Arts & Crafts Brands categories, although some are developed and adapted for particular international markets.
Segment Data
The following tables present information about revenues, income, and assets by segment. Mattel does not include sales adjustments such as trade discounts and other allowances in the calculation of segment revenues (referred to as “gross sales”). Mattel records these adjustments in its financial accounting systems at the time of sale to each customer, but the adjustments are not allocated to individual products. For this reason, Mattel’s CODM uses gross sales by segment as one of the metrics to measure segment performance. Such sales adjustments are included in the determination of segment income from operations based on the adjustments recorded in the financial accounting systems. Segment income represents each segment’s operating income, while consolidated operating income represents income from operations before net interest, other non-operating income, and income taxes as reported in the consolidated statements of operations. The corporate and other expense category includes costs not allocated to individual segments, including charges related to incentive compensation, share-based payments, and corporate headquarters functions managed on a worldwide basis, and the impact of changes in foreign currency rates on intercompany transactions.
 
 
For the Year
 
2015
 
2014
 
2013
 
(In thousands)
Revenues by Segment
 
 
 
 
 
North America
$
3,083,873

 
$
3,011,633

 
$
3,181,205

International
2,603,537

 
3,061,506

 
3,277,840

American Girl
596,218

 
645,309

 
658,768

Gross sales
6,283,628

 
6,718,448

 
7,117,813

Sales adjustments
(581,015
)
 
(694,629
)
 
(632,921
)
Net sales
$
5,702,613

 
$
6,023,819

 
$
6,484,892

Segment Income
 
 
 
 
 
North America
$
538,249

 
$
459,833

 
$
723,834

International
321,068

 
359,904

 
622,910

American Girl
69,899

 
113,571

 
138,029

 
929,216

 
933,308

 
1,484,773

Corporate and other expense (a)
(388,294
)
 
(279,594
)
 
(316,670
)
Operating income
540,922

 
653,714

 
1,168,103

Interest expense
85,270

 
79,271

 
78,505

Interest (income)
(7,230
)
 
(7,382
)
 
(5,555
)
Other non-operating (income), net
(1,033
)
 
(5,085
)
 
(3,975
)
Income before income taxes
$
463,915

 
$
586,910

 
$
1,099,128

 
(a)
Corporate and other expense includes (i) incentive compensation expense of $50.2 million, $25.2 million, and $65.0 million for 2015, 2014, and 2013, respectively, (ii) $72.0 million, $51.8 million, and $17.6 million of charges related to severance and other termination-related costs for 2015, 2014, and 2013, respectively, (iii) share-based compensation expense of $56.7 million, $52.0 million, and $61.7 million for 2015, 2014, and 2013, respectively, and (iv) legal fees associated with MGA litigation matters.
 
 
For the Year
 
2015
 
2014
 
2013
 
(In thousands)
Depreciation and Amortization by Segment
 
 
 
 
 
North America
$
122,757

 
$
118,633

 
$
84,935

International
90,269

 
86,011

 
71,380

American Girl
22,054

 
18,434

 
17,364

 
235,080

 
223,078

 
173,679

Corporate and other
30,347

 
25,623

 
22,714

Depreciation and amortization
$
265,427

 
$
248,701

 
$
196,393


Segment assets are comprised of accounts receivable and inventories, net of applicable reserves and allowances.
 
 
December 31,
 
2015
 
2014
 
2013
 
(In thousands)
Assets by Segment
 
 
 
 
 
North America
$
764,945

 
$
698,357

 
$
723,886

International
759,709

 
778,849

 
920,770

American Girl
108,414

 
108,667

 
100,438

 
1,633,068

 
1,585,873

 
1,745,094

Corporate and other
99,552

 
70,334

 
83,854

Accounts receivable and inventories, net
$
1,732,620

 
$
1,656,207

 
$
1,828,948


Mattel sells a broad variety of toy products, which are grouped into four major categories: Mattel Girls & Boys Brands, Fisher-Price Brands, American Girl Brands, and Construction and Arts & Crafts Brands. The table below presents worldwide revenues by brand category:
 
 
For the Year
 
2015
 
2014
 
2013
 
(In thousands)
Worldwide Revenues by Brand Category
 
 
 
 
 
Mattel Girls & Boys Brands
$
3,464,195

 
$
3,897,218

 
$
4,315,855

Fisher-Price Brands
1,852,219

 
1,842,550

 
2,120,719

American Girl Brands
571,957

 
618,678

 
632,515

Construction and Arts & Crafts Brands
351,747

 
314,994

 
—

Other
43,510

 
45,008

 
48,724

Gross sales
6,283,628

 
6,718,448

 
7,117,813

Sales adjustments
(581,015
)
 
(694,629
)
 
(632,921
)
Net sales
$
5,702,613

 
$
6,023,819

 
$
6,484,892



Geographic Information
The tables below present information by geographic area. Revenues are attributed to countries based on location of customer. Long-lived assets principally include goodwill, property, plant, and equipment, net, and identifiable intangibles, net.
 
 
For the Year
 
2015
 
2014
 
2013
 
(In thousands)
Revenues
 
 
 
 
 
North American Region (a)
$
3,680,091

 
$
3,656,942

 
$
3,839,973

International Region:
 
 
 
 
 
Europe
1,388,753

 
1,687,039

 
1,806,707

Latin America
711,041

 
909,432

 
1,011,718

Asia Pacific
503,743

 
465,035

 
459,415

Total International Region
2,603,537

 
3,061,506

 
3,277,840

Gross sales
6,283,628

 
6,718,448

 
7,117,813

Sales adjustments
(581,015
)
 
(694,629
)
 
(632,921
)
Net sales
$
5,702,613

 
$
6,023,819

 
$
6,484,892


 
 
December 31,
 
2015
 
2014
 
2013
 
(In thousands)
Long-Lived Assets
 
 
 
 
 
North American Region (b)
$
1,572,432

 
$
1,656,985

 
$
1,361,538

International Region
1,466,003

 
1,492,633

 
1,326,457

Consolidated total
$
3,038,435

 
$
3,149,618

 
$
2,687,995


 
(a)
Revenues for the North American Region include revenues attributable to the US of $3.46 billion, $3.41 billion, and $3.58 billion for 2015, 2014, and 2013, respectively.
(b)
Long-lived assets for the North American Region include long-lived assets attributable to the US of $1.57 billion, $1.65 billion, and $1.36 billion for 2015, 2014, and 2013, respectively.
Major Customers
Sales to Mattel’s three largest customers accounted for 37%, 35%, and 36% of worldwide consolidated net sales for 2015, 2014, and 2013, respectively, as follows:
 
 
For the Year
 
2015
 
2014
 
2013
 
(In billions)
Wal-Mart
$
1.0

 
$
1.1

 
$
1.2

Toys “R” Us
0.6

 
0.6

 
0.7

Target
0.5

 
0.5

 
0.5

The North America segment sells products to each of Mattel’s three largest customers. The International segment sells products to Wal-Mart and Toys “R” Us. The American Girl segment sells its children’s publications to each of Mattel's three largest customers.