Employee Benefit Plans (Tables)

12 Months Ended

Dec. 31, 2017

Compensation and Retirement Disclosure [Abstract]

A summary of retirement plan expense is as follows:



	For the Year Ended
	December 31, 2017		December 31, 2016		December 31, 2015
	(In thousands)
Defined benefit pension plans	$	7,428	$	13,999	$	14,779
Defined contribution retirement plans	38,508		37,661		40,673
Postretirement benefit plans	963		1,343		1,396
Deferred compensation and excess benefit plans	10,015		5,093		225
	$	56,914	$	58,096	$	57,073

Schedule of Defined Benefit Plan Amounts Recognized in Other Comprehensive Income (Loss)

A summary of the components of Mattel’s net periodic benefit cost and other changes in plan assets and benefit obligations recognized in other comprehensive income for the years ended December 31 is as follows:



	Defined Benefit Pension Plans									Postretirement Benefit Plans
	2017			2016			2015			2017			2016			2015
	(In thousands)
Net periodic benefit cost:
Service cost	$	4,045		$	5,557		$	6,105		$	2		$	52		$	54
Interest cost	17,961			24,526			26,007			812			1,143			1,194
Expected return on plan assets	(23,072		)	(25,726		)	(29,850		)	—			—			—
Amortization of prior service cost (credit)	29			461			(465		)	—			—			—
Recognized actuarial loss	8,362			6,994			15,168			149			148			148
Settlement loss	—			1,772			6,453			—			—			—
Curtailment loss (gain)	103			415			(8,639		)	—			—			—
Net periodic benefit cost	$	7,428		$	13,999		$	14,779		$	963		$	1,343		$	1,396
Other changes in plan assets and benefit obligations recognized in other comprehensive loss:
Net actuarial loss (gain)	$	46		$	(1,531	)	$	(8,813	)	$	(2,746	)	$	(1,833	)	$	(3,130	)
Prior service cost (credit)	—			505			8,691			(16,261		)	—			—
Amortization of prior service (cost) credit	(29		)	(461		)	465			—			—			—
Total recognized in other comprehensive income (loss) (a)	$	17		$	(1,487	)	$	343		$	(19,007	)	$	(1,833	)	$	(3,130	)
Total recognized in net periodic benefit cost and other comprehensive income (loss)	$	7,445		$	12,512		$	15,122		$	(18,044	)	$	(490	)	$	(1,734	)


(a)	Amounts exclude related tax expense of $4.5 million, $1.2 million, and $1.1 million, during 2017, 2016, and 2015, respectively, which are also included in other comprehensive income.

Schedule of Components of Net Periodic Benefit Cost



	Defined Benefit Pension Plans									Postretirement Benefit Plans
	2017			2016			2015			2017			2016			2015
	(In thousands)
Net periodic benefit cost:
Service cost	$	4,045		$	5,557		$	6,105		$	2		$	52		$	54
Interest cost	17,961			24,526			26,007			812			1,143			1,194
Expected return on plan assets	(23,072		)	(25,726		)	(29,850		)	—			—			—
Amortization of prior service cost (credit)	29			461			(465		)	—			—			—
Recognized actuarial loss	8,362			6,994			15,168			149			148			148
Settlement loss	—			1,772			6,453			—			—			—
Curtailment loss (gain)	103			415			(8,639		)	—			—			—
Net periodic benefit cost	$	7,428		$	13,999		$	14,779		$	963		$	1,343		$	1,396
Other changes in plan assets and benefit obligations recognized in other comprehensive loss:
Net actuarial loss (gain)	$	46		$	(1,531	)	$	(8,813	)	$	(2,746	)	$	(1,833	)	$	(3,130	)
Prior service cost (credit)	—			505			8,691			(16,261		)	—			—
Amortization of prior service (cost) credit	(29		)	(461		)	465			—			—			—
Total recognized in other comprehensive income (loss) (a)	$	17		$	(1,487	)	$	343		$	(19,007	)	$	(1,833	)	$	(3,130	)
Total recognized in net periodic benefit cost and other comprehensive income (loss)	$	7,445		$	12,512		$	15,122		$	(18,044	)	$	(490	)	$	(1,734	)


(a)	Amounts exclude related tax expense of $4.5 million, $1.2 million, and $1.1 million, during 2017, 2016, and 2015, respectively, which are also included in other comprehensive income.

Schedule of Assumptions Used to Calculate Net Periodic Benefit Cost for Domestic Defined Benefit Pension and Postretirement Benefit Plans

Net periodic benefit cost for Mattel’s domestic defined benefit pension and postretirement benefit plans was calculated on January 1 of each year using the following assumptions:



	For the Year Ended
	December 31, 2017		December 31, 2016		December 31, 2015
Defined benefit pension plans:
Discount rate	3.9	%	4.2	%	3.8	%
Weighted average rate of future compensation increases	N/A		N/A		3.8	%
Long-term rate of return on plan assets	6.3	%	6.5	%	(a)
Postretirement benefit plans:
Discount rate	3.9	%	4.2	%	3.8	%
Annual increase in Medicare Part B premium	6.0	%	6.0	%	6.0	%
Health care cost trend rate:
Pre-65	7.0	%	7.0	%	7.5	%
Post-65	7.8	%	8.3	%	8.8	%
Ultimate cost trend rate:
Pre-65	4.5	%	4.5	%	4.5	%
Post-65	4.5	%	4.5	%	4.5	%
Year that the rate reaches the ultimate cost trend rate:
Pre-65	2024		2023		2023
Post-65	2024		2024		2024


(a)	A long-term rate of return on plan assets of 7.5% was used for the first half of 2015. A long-term rate of return on plan assets of 6.8% was used for the second half of 2015, resulting from a change in the plans' target asset allocation.

Schedule of Changes in Benefit Obligation and Plan Assets for Defined Benefit Pension and Postretirement Benefit Plans

A summary of the changes in benefit obligation and plan assets is as follows:



	Defined Benefit Pension Plans						Postretirement Benefit Plans
	December 31, 2017			December 31, 2016			December 31, 2017			December 31, 2016
	(In thousands)
Change in Benefit Obligation:
Benefit obligation, beginning of year	$	605,851		$	611,490		$	27,614		$	30,416
Service cost	4,045			5,557			2			52
Interest cost	17,961			24,526			812			1,143
Impact of currency exchange rate changes	12,932			(14,535		)	—			—
Actuarial loss (gain)	32,817			25,164			(2,597		)	(1,686		)
Benefits paid	(34,314		)	(46,425		)	(1,818		)	(2,311		)
Plan amendments	27			74			(16,261		)	—
Benefit obligation, end of year	$	639,319		$	605,851		$	7,752		$	27,614
Change in Plan Assets:
Plan assets at fair value, beginning of year	$	433,780		$	435,274		$	—		$	—
Actual return on plan assets	47,727			43,292			—			—
Employer contributions	4,807			17,617			1,818			2,311
Impact of currency exchange rate changes	8,952			(15,978		)	—			—
Benefits paid	(34,314		)	(46,425		)	(1,818		)	(2,311		)
Plan assets at fair value, end of year	$	460,952		$	433,780		$	—		$	—
Net Amount Recognized in Consolidated Balance Sheets:
Funded status, end of year	$	(178,367	)	$	(172,071	)	$	(7,752	)	$	(27,614	)
Current accrued benefit liability	(16,180		)	(4,519		)	(1,400		)	(2,700		)
Noncurrent accrued benefit liability	(162,187		)	(167,552		)	(6,352		)	(24,914		)
Net amount recognized	$	(178,367	)	$	(172,071	)	$	(7,752	)	$	(27,614	)
Amounts Recognized in Accumulated Other Comprehensive Loss (a):
Net actuarial loss (gain)	$	243,295		$	243,249		$	(2,795	)	$	(49	)
Prior service cost (credit)	135			164			(16,261		)	—
	$	243,430		$	243,413		$	(19,056	)	$	(49	)


(a)	Amounts exclude related tax benefits of $81.2 million and $85.7 million for December 31, 2017 and 2016, respectively, which are also included in accumulated other comprehensive loss.

Schedule of Assumptions Used to Determine Projected and Accumulated Benefit Obligations of Domestic Defined Benefit Pension and Postretirement Benefit Plans

The assumptions used in determining the projected and accumulated benefit obligations of Mattel’s domestic defined benefit pension and postretirement benefit plans are as follows:



	December 31, 2017		December 31, 2016
Defined benefit pension plans:
Discount rate	3.4	%	3.9	%
Weighted average rate of future compensation increases	N/A		N/A
Postretirement benefit plans:
Discount rate	3.4	%	3.9	%
Annual increase in Medicare Part B premium	6.0	%	6.0	%
Health care cost trend rate:
Pre-65	7.0	%	7.0	%
Post-65	7.8	%	7.8	%
Ultimate cost trend rate:
Pre-65	4.5	%	4.5	%
Post-65	4.5	%	4.5	%
Year that the rate reaches the ultimate cost trend rate:
Pre-65	2024		2024
Post-65	2024		2024

Schedule of Estimated Future Benefit Payments for Defined Benefit Pension and Postretirement Benefit Plans

The estimated future benefit payments for Mattel’s defined benefit pension and postretirement benefit plans are as follows:



	Defined Benefit Pension Plans		Postretirement Benefit Plans
	(In thousands)
2018	$	60,433	$	1,400
2019	36,577		1,200
2020	36,500		1,100
2021	36,555		1,100
2022	37,686		1,000
2022 – 2026	182,421		2,600

Schedule of Plan Assets Measured and Reported in Financial Statements at Fair Value

Mattel’s defined benefit pension plan assets are measured and reported in the financial statements at fair value using inputs, which are more fully described in "Note 10 to the Consolidated Financial Statements—Fair Value Measurements," as follows:



	December 31, 2017
	Level 1		Level 2		Level 3		Total
	(In thousands)
U.S. government and U.S. government agency securities	$	—	$	5,101	$	—	$	5,101
U.S. corporate debt instruments	—		37,323		—		37,323
International corporate debt instruments	—		11,137		—		11,137
Mutual funds	611		—		—		611
Money market funds	1,975		—		—		1,975
Other investments	—		6,968		—		6,968
Insurance "buy-in" policy	—		—		33,553		33,553
Collective trust funds:
U.S. equity securities (a)							73,727
International equity securities (a)							234,472
International fixed income (a)							16,179
Diversified funds (a)							39,906
Total	$	2,586	$	60,529	$	33,553	$	460,952



	December 31, 2016
	Level 1		Level 2		Level 3		Total
	(In thousands)
U.S. government and U.S. government agency securities	$	—	$	1,568	$	—	$	1,568
U.S. corporate debt instruments	—		33,787		—		33,787
International corporate debt instruments	—		8,689		—		8,689
Mutual funds	582		—		—		582
Money market funds	2,531		—		—		2,531
Other investments	—		6,640		—		6,640
Collective trust funds:
U.S. equity securities (a)							96,487
International equity securities (a)							239,177
International fixed income (a)							44,319
Total	$	3,113	$	50,684	$	—	$	433,780

(a) These investments consist of privately placed funds that are valued based on net asset value per share. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the statement of financial position and its related disclosures.