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Segment Information
 9 Months Ended
Sep. 30, 2017
Segment Reporting [Abstract]  
Segment Information
Segment Information
Mattel, through its subsidiaries, sells a broad variety of toy products which are grouped into four major brand categories:
Mattel Girls & Boys Brands—including Barbie® fashion dolls and accessories (“Barbie”), Monster High®, Ever After High®, Polly Pocket®, and DC Super Hero Girls™ (collectively “Other Girls”), Hot Wheels® and Matchbox® vehicles and play sets (collectively “Wheels”), and CARS®, DC Comics®, WWE® Wrestling, Minecraft®, Max Steel®, BOOMco.®, Toy Story®, 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®, Girl of the Year®, BeForever®, Bitty Baby®, and WellieWishers™. American Girl® Brands products are sold directly to consumers via its catalog, website, and proprietary retail stores, as well as sold directly to certain retailers.
Construction and Arts & Crafts Brands—including MEGA BLOKS® and RoseArt®.
Mattel’s operating segments are: (i) North America, which consists of the US and Canada, (ii) International, and (iii) American Girl.  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. In the following tables, Mattel does not include sales adjustments such as trade discounts and other allowances in the calculation of segment revenues (referred to as “gross sales” and reconciled to net sales in Part I, Item 2 “Management’s Discussion and Analysis of Financial Condition and Results of Operations–Non-GAAP Financial Measures” of this Quarterly Report on Form 10-Q). Mattel records these adjustments in its financial accounting systems at the time of sale to each customer, but the adjustments are not allocated to brands or individual products. For this reason, Mattel’s chief operating decision maker 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 expense/income, net, 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 exchange rates on intercompany transactions.
 
For the Three Months Ended
 
For the Nine Months Ended
 
September 30,
2017
 
September 30,
2016
 
September 30,
2017
 
September 30,
2016
 
(In thousands)
Revenues by Segment
 
 
 
 
 
 
 
North America
$
839,341

 
$
1,071,030

 
$
1,708,901

 
$
2,077,147

International
776,947

 
774,211

 
1,637,031

 
1,614,169

American Girl
93,876

 
130,109

 
247,376

 
298,933

Gross sales
1,710,164

 
1,975,350

 
3,593,308

 
3,990,249

Sales adjustments
(149,181
)
 
(179,775
)
 
(322,230
)
 
(367,999
)
Net sales
$
1,560,983

 
$
1,795,575

 
$
3,271,078

 
$
3,622,250

 
For the Three Months Ended
 
For the Nine Months Ended
 
September 30,
2017
 
September 30,
2016
 
September 30,
2017
 
September 30,
2016
 
(In thousands)
Segment Income (Loss)
 
 
 
 
 
 
 
North America
$
86,240

 
$
265,597

 
$
109,623

 
$
371,096

International
81,307

 
150,232

 
48,140

 
155,949

American Girl
(14,601
)
 
28,056

 
(38,558
)
 
21,850

 
152,946

 
443,885

 
119,205

 
548,895

Corporate and other expense (a)
(67,244
)
 
(126,489
)
 
(209,208
)
 
(292,305
)
Operating income (loss)
85,702

 
317,396

 
(90,003
)
 
256,590

Interest expense
24,646

 
24,989

 
68,557

 
70,133

Interest (income)
(1,575
)
 
(2,477
)
 
(6,337
)
 
(7,550
)
Other non-operating expense, net
1,368

 
856

 
5,928

 
23,210

Income (loss) before income taxes
$
61,263

 
$
294,028

 
$
(158,151
)
 
$
170,797

__________________________________________ 
(a)
Corporate and other expense includes severance and restructuring expenses of $12.6 million and $21.5 million for the three and nine months ended September 30, 2017, respectively, and $6.4 million and $33.6 million for the three and nine months ended September 30, 2016, respectively, and share-based compensation expense of $17.0 million and $47.6 million for the three and nine months ended September 30, 2017, respectively, and $12.4 million and $38.7 million for the three and nine months ended September 30, 2016, respectively.
Segment assets are comprised of accounts receivable and inventories, net of applicable reserves and allowances.
 
September 30,
2017
 
September 30,
2016
 
December 31,
2016
 
(In thousands)
Assets by Segment
 
 
 
 
 
North America
$
1,060,312

 
$
1,050,120

 
$
677,203

International
1,144,772

 
1,049,008

 
766,584

American Girl
197,110

 
184,101

 
154,924

 
2,402,194

 
2,283,229

 
1,598,711

Corporate and other
93,946

 
156,125

 
130,304

Accounts receivable, net and inventories
$
2,496,140

 
$
2,439,354

 
$
1,729,015


The table below presents worldwide revenues by brand category:
 
For the Three Months Ended
 
For the Nine Months Ended
 
September 30,
2017
 
September 30,
2016
 
September 30,
2017
 
September 30,
2016
 
(In thousands)
Worldwide Revenues by Brand Category
 
 
 
 
 
 
 
Mattel Girls & Boys Brands
$
967,028

 
$
1,061,113

 
$
2,018,017

 
$
2,142,665

Fisher-Price Brands
561,610

 
661,489

 
1,143,466

 
1,280,435

American Girl Brands
88,008

 
125,499

 
234,181

 
286,910

Construction and Arts & Crafts Brands
84,599

 
118,605

 
176,076

 
252,802

Other
8,919

 
8,644

 
21,568

 
27,437

Gross sales
1,710,164

 
1,975,350

 
3,593,308

 
3,990,249

Sales adjustments
(149,181
)
 
(179,775
)
 
(322,230
)
 
(367,999
)
Net sales
$
1,560,983

 
$
1,795,575

 
$
3,271,078

 
$
3,622,250