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Segment Information
 3 Months Ended
Mar. 31, 2018
Segment Reporting [Abstract]  
Segment Information
Segment Information
Mattel designs, manufactures, and markets a broad variety of toy products worldwide which are sold to its customers and directly to consumers. Mattel reorganized its brands reporting structure in 2018 as outlined below. Prior period amounts have been reclassified to conform to the current year presentation.
Mattel’s portfolio of brands and products are classified as Power Brands, which includes Barbie, Hot Wheels, Fisher-Price and Thomas & Friends, and American Girl Brands, and Toy Box, which includes Owned Brands and Partner Brands.
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 both the Power Brands, excluding American Girl, and Toy Box 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
 
March 31,
2018
 
March 31,
2017
 
(In thousands)
Revenues by Segment
 
 
 
North America
$
348,390

 
$
362,318

International
384,134

 
366,336

American Girl
67,487

 
85,984

Gross sales
800,011

 
814,638

Sales adjustments
(91,639
)
 
(79,020
)
Net sales
$
708,372

 
$
735,618

 
For the Three Months Ended
 
March 31,
2018
 
March 31,
2017
 
(In thousands)
Segment Loss
 
 
 
North America (a)
$
(106,750
)
 
$
(19,340
)
International (a)
(72,265
)
 
(24,842
)
American Girl (a)
(14,843
)
 
(5,785
)
 
(193,858
)
 
(49,967
)
Corporate and other expense (b)
(82,723
)
 
(75,646
)
Operating loss
(276,581
)
 
(125,613
)
Interest expense
41,079

 
22,030

Interest (income)
(3,147
)
 
(2,466
)
Other non-operating (income) expense, net
(608
)
 
494

Loss before income taxes
$
(313,905
)
 
$
(145,671
)
__________________________________________ 
(a)
Segment loss for the three months ended March 31, 2018, includes $86.8 million of net sales reversal and bad debt expense attributable to the Toys “R” Us liquidation. The North America, International and American Girl segments recorded charges of $71.6 million, $12.1 million, and $3.1 million respectively. No charge was recorded in Corporate and other expense.
(b)
Corporate and other expense includes severance and restructuring expenses of $24.9 million and $3.0 million for the three months ended March 31, 2018 and 2017, respectively, and share-based compensation expense of $14.4 million and $12.7 million for the three months ended March 31, 2018 and 2017, respectively.
Segment assets are comprised of accounts receivable and inventories, net of applicable reserves and allowances.
 
March 31,
2018
 
March 31,
2017
 
December 31,
2017
 
(In thousands)
Assets by Segment
 
 
 
 
 
North America
$
523,535

 
$
624,539

 
$
692,232

International
620,718

 
675,996

 
829,185

American Girl
94,592

 
150,373

 
100,184

 
1,238,845

 
1,450,908

 
1,621,601

Corporate and other
115,006

 
125,691

 
107,713

Accounts receivable, net and inventories
$
1,353,851

 
$
1,576,599

 
$
1,729,314


The table below presents worldwide revenues by brand category:
 
For the Three Months Ended
 
March 31,
2018
 
March 31,
2017
 
(In thousands)
Worldwide Revenues by Brand Category (a)
 
 
 
Barbie
$
152,691

 
$
123,390

Hot Wheels
144,940

 
125,679

Fisher-Price and Thomas & Friends
187,795

 
205,044

American Girl
67,427

 
85,813

Toy Box
247,158

 
274,712

Gross sales
800,011

 
814,638

Sales adjustments
(91,639
)
 
(79,020
)
Net sales
$
708,372

 
$
735,618

__________________________________________ 
(a) Mattel reorganized its brands reporting structure in 2018. Prior period amounts have been reclassified to conform to the current year presentation.
Geographic Information
The table below present information by geographic area. Revenues are attributed to countries based on location of customer.
 
For the Three Months Ended
 
March 31,
2018
 
March 31,
2017
 
(In thousands)
Revenues
 
 
 
North America
$
415,877

 
$
448,302

International (a)
 
 
 
Europe
168,338

 
156,561

Latin America
74,468

 
69,768

Global Emerging Markets
141,328

 
140,007

Total International
384,134

 
366,336

Gross sales
800,011

 
814,638

Sales adjustments
(91,639
)
 
(79,020
)
Net sales
$
708,372

 
$
735,618

__________________________________________ 
(a) Mattel reorganized its regional reporting structure in 2018. As a result, Global Emerging Markets, which was previously disclosed as Asia Pacific, includes Russia, Turkey, the Middle East, and Africa, which were previously included within Europe. Prior period amounts have been reclassified to conform to the current year presentation.