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Segment Information | 12 Months Ended
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Dec. 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 the first quarter of 2018 as outlined below. Prior period amounts have been reclassified to conform to the current period 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 U.S. 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, loss/income, depreciation and amortization, 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 Chief Operating Decision Maker ("CODM") uses gross and net sales by segment as metrics to measure segment performance. Such sales adjustments are included in the determination of segment loss/income from operations based on the adjustments recorded in the financial accounting systems. Segment loss/income represents each segment’s operating loss/income, while consolidated operating loss/income represents loss/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, severance and other restructuring costs, 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 Year Ended
| December 31, 2018 |  | December 31, 2017 (b) |  | December 31, 2016 (b)
| (In thousands)
Revenues by Segment |  |  |  |  |
North America | $ | 2,422,108 |  |  | $ | 2,536,654 |  |  | $ | 3,036,181 |
International | 2,312,230 |  |  | 2,503,527 |  |  | 2,447,615 |
American Girl | 341,191 |  |  | 473,944 |  |  | 589,918 |
Gross sales | 5,075,529 |  |  | 5,514,125 |  |  | 6,073,714 |
Sales adjustments | (560,719 | ) |  | (632,632 | ) |  | (620,564 | )
Net sales | $ | 4,514,810 |  |  | $ | 4,881,493 |  |  | $ | 5,453,150 |
Segment Income (Loss) |  |  |  |  |
North America | $ | 220,769 |  |  | $ | 102,710 |  |  | $ | 560,178 |
International | 13,915 |  |  | (6,322 | ) |  | 287,730 |
American Girl | (17,726 | ) |  | (72,968 | ) |  | 106,423 |
| 216,958 |  |  | 23,420 |  |  | 954,331 |
Corporate and other expense (a) | (451,307 | ) |  | (359,118 | ) |  | (434,356 | )
Operating (loss) income | (234,349 | ) |  | (335,698 | ) |  | 519,975 |
Interest expense | 181,886 |  |  | 105,214 |  |  | 95,118 |
Interest (income) | (6,463 | ) |  | (7,777 | ) |  | (9,144 | )
Other non-operating expense, net | 7,331 |  |  | 68,110 |  |  | 31,959 |
(Loss) income before income taxes | $ | (417,103 | ) |  | $ | (501,245 | ) |  | $ | 402,042 |
(a) | Corporate and other expense includes (i) incentive compensation expense of $84.1 million, $19.4 million, and $16.5 million for 2018, 2017, and 2016, respectively, (ii) $104.1 million, $65.1 million, and $39.9 million of charges related to severance and other restructuring costs for 2018, 2017, and 2016, respectively, and (iii) share-based compensation expense of $48.9 million, $67.1 million, and $53.9 million for 2018, 2017, and 2016, respectively.
(b) | In accordance with ASU 2017-07, prior period amounts have been retrospectively adjusted, which resulted in a reclassification of $3.4 million and $8.4 million of expense, net from other selling and administrative expenses, which is included in corporate and other expense, to other non-operating expense, net for the year ended December 31, 2017 and 2016, respectively.
| For the Year Ended
| December 31, 2018 |  | December 31, 2017 |  | December 31, 2016
| (In thousands)
Depreciation/Amortization by Segment |  |  |  |  |
North America | $ | 130,087 |  |  | $ | 118,898 |  |  | $ | 118,047 |
International | 95,480 |  |  | 96,623 |  |  | 88,414 |
American Girl | 14,391 |  |  | 22,615 |  |  | 23,023 |
| 239,958 |  |  | 238,136 |  |  | 229,484 |
Corporate and other | 31,974 |  |  | 36,631 |  |  | 32,856 |
Depreciation and amortization | $ | 271,932 |  |  | $ | 274,767 |  |  | $ | 262,340 |
Segment assets are comprised of accounts receivable and inventories, net of applicable reserves and allowances.
| December 31, 2018 |  | December 31, 2017 |  | December 31, 2016
| (In thousands)
Assets by Segment |  |  |  |  |
North America | $ | 615,654 |  |  | $ | 692,232 |  |  | $ | 677,203 |
International | 728,870 |  |  | 825,227 |  |  | 763,084 |
American Girl | 43,748 |  |  | 100,184 |  |  | 154,924 |
| 1,388,272 |  |  | 1,617,643 |  |  | 1,595,211 |
Corporate and other | 124,700 |  |  | 107,713 |  |  | 130,304 |
Accounts receivable and inventories, net | $ | 1,512,972 |  |  | $ | 1,725,356 |  |  | $ | 1,725,515 |
The table below presents worldwide revenues by brand category:
| For the Year Ended
| December 31, 2018 |  | December 31, 2017 |  | December 31, 2016
| (In thousands)
Worldwide Revenues by Brand Category (a) |  |  |  |  |
Barbie | $ | 1,088,953 |  |  | $ | 954,892 |  |  | $ | 971,795 |
Hot Wheels | 834,058 |  |  | 777,341 |  |  | 796,969 |
Fisher-Price and Thomas & Friends | 1,185,669 |  |  | 1,370,543 |  |  | 1,546,111 |
American Girl | 342,442 |  |  | 473,302 |  |  | 592,118 |
Toy Box | 1,624,407 |  |  | 1,938,047 |  |  | 2,166,721 |
Gross sales | 5,075,529 |  |  | 5,514,125 |  |  | 6,073,714 |
Sales adjustments | (560,719 | ) |  | (632,632 | ) |  | (620,564 | )
Net sales | $ | 4,514,810 |  |  | $ | 4,881,493 |  |  | $ | 5,453,150 |
(a) | Mattel reorganized its brands reporting structure in the first quarter of 2018. Prior period amounts have been reclassified to conform to the current period presentation.
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 Ended
| December 31, 2018 |  | December 31, 2017 |  | December 31, 2016
| (In thousands)
Revenues |  |  |  |  |
North American Region (a) | $ | 2,763,299 |  |  | $ | 3,010,598 |  |  | $ | 3,626,099 |
International Region (b): |  |  |  |  |
Europe | 1,013,983 |  |  | 1,054,788 |  |  | 1,066,263 |
Latin America | 653,992 |  |  | 675,286 |  |  | 636,535 |
Global Emerging Markets | 644,255 |  |  | 773,453 |  |  | 744,817 |
Total International Region | 2,312,230 |  |  | 2,503,527 |  |  | 2,447,615 |
Gross sales | 5,075,529 |  |  | 5,514,125 |  |  | 6,073,714 |
Sales adjustments | (560,719 | ) |  | (632,632 | ) |  | (620,564 | )
Net sales | $ | 4,514,810 |  |  | $ | 4,881,493 |  |  | $ | 5,453,150 |
| December 31, 2018 |  | December 31, 2017 |  | December 31, 2016
| (In thousands)
Long-Lived Assets |  |  |  |  |
North American Region (c) | $ | 1,466,413 |  |  | $ | 1,543,662 |  |  | $ | 1,566,621 |
International Region | 1,374,676 |  |  | 1,506,503 |  |  | 1,478,747 |
Consolidated total | $ | 2,841,089 |  |  | $ | 3,050,165 |  |  | $ | 3,045,368 |
(a) | Revenues for the North American Region include revenues attributable to the U.S. of $2.60 billion, $2.82 billion, and $3.39 billion for 2018, 2017, and 2016, respectively.
(b) | Mattel reorganized its regional reporting structure in the first quarter of 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 period presentation.
(c) | Long-lived assets for the North American Region include long-lived assets attributable to the U.S. of $1.42 billion, $1.49 billion, and $1.57 billion for 2018, 2017, and 2016, respectively.
Major Customers Sales to Mattel’s two largest customers accounted for 34%, 29%, and 27% of worldwide consolidated net sales for 2018, 2017, and 2016, respectively, as follows:
| For the Year Ended
| December 31, 2018 |  | December 31, 2017 |  | December 31, 2016
| (In billions)
Walmart | $ | 1.07 |  |  | $ | 1.02 |  |  | $ | 1.05 |
Target | 0.45 |  |  | 0.37 |  |  | 0.41 |
During 2017 and 2016, Toys "R" Us accounted for $0.40 billion and $0.64 billion, respectively, of worldwide consolidated net sales. The North America segment sells products to each of Mattel’s two largest customers. The International segment sells products to Walmart. The American Girl segment sells its children’s publications to each of Mattel's two largest customers.

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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