The following tables present the impact of the revisions on Mattel’s previously issued Consolidated Statements of Operations (including Comprehensive (Loss) Income), and Cash Flows for the years ended December 31, 2018, 2017, and 2016, its Consolidated Balance Sheets as of December 31, 2018 and 2017, and its Consolidated Statements of Stockholders' Equity for the years ended December 31, 2018, 2017, and 2016. The presentation of the revised Consolidated Balance Sheets only presents those line items which were impacted as a result of the revisions. The effect of the revisions to the Consolidated Statements of Cash Flows was to components within operating cash flows. There were no effects on total operating activities, investing activities, financing activities, or cash and cash equivalents as a result of the revisions. All relevant footnotes to the consolidated financial statements have also been revised to reflect the items above.

CONSOLIDATED BALANCE SHEETS



	December 31, 2018
	As Previously Reported		Adjustments			As Revised
	(in thousands)
Consolidated Balance Sheet
Prepaid expenses and other current assets	$	244,987	$	(5,240	)	$	239,747
Total current assets	$	2,352,440	$	(5,240	)	$	2,347,200
Total Assets	$	5,243,465	$	(5,240	)	$	5,238,225
Accrued liabilities	$	700,421	$	3,948		$	704,369
Income taxes payable	$	10,046	$	3,474		$	13,520
Total current liabilities	$	1,252,608	$	7,422		$	1,260,030
Retained earnings	$	1,629,257	$	(12,662	)	$	1,616,595
Total stockholders’ equity	$	669,465	$	(12,662	)	$	656,803
Total Liabilities and Stockholders’ Equity	$	5,243,465	$	(5,240	)	$	5,238,225



	December 31, 2017
	As Previously Reported		Adjustments			As Revised
	(in thousands)
Consolidated Balance Sheet
Accounts receivable, net	$	1,128,610	$	(3,958	)	$	1,124,652
Prepaid expenses and other current assets	$	303,053	$	(7,388	)	$	295,665
Total current assets	$	3,111,588	$	(11,346	)	$	3,100,242
Other noncurrent assets	$	944,961	$	990		$	945,951
Total Assets	$	6,238,503	$	(10,356	)	$	6,228,147
Retained earnings	$	2,179,358	$	(10,356	)	$	2,169,002
Total stockholders’ equity	$	1,257,455	$	(10,356	)	$	1,247,099
Total Liabilities and Stockholders’ Equity	$	6,238,503	$	(10,356	)	$	6,228,147

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS



	Year Ended December 31, 2018
	As Previously Reported			Adjustments			As Revised
	(In thousands, except per share amounts)
Consolidated Statement of Operations and Comprehensive Loss
Net Sales	$	4,510,852		$	3,958		$	4,514,810
Cost of sales	2,716,127			—			2,716,127
Gross Profit	1,794,725			3,958			1,798,683
Advertising and promotion expenses	526,436			(2,148		)	524,288
Other selling and administrative expenses	1,504,796			3,948			1,508,744
Operating Loss	(236,507		)	2,158			(234,349		)
Interest expense	181,886			—			181,886
Interest (income)	(6,463		)	—			(6,463		)
Other non-operating expense, net	7,331			—			7,331
Loss Before Income Taxes	(419,261		)	2,158			(417,103		)
Provision for income taxes	111,732			4,464			116,196
Net Loss	$	(530,993	)	$	(2,306	)	$	(533,299	)
Comprehensive Loss	$	(608,433	)	$	(2,306	)	$	(610,739	)
Net Loss Per Common Share - Basic	$	(1.54	)	$	(0.01	)	$	(1.55	)
Weighted average number of common shares	345,012			—			345,012
Net Loss Per Common Share - Diluted	$	(1.54	)	$	(0.01	)	$	(1.55	)
Weighted average number of common and potential common shares	345,012			—			345,012



	Year Ended December 31, 2017
	As Previously Reported			Adjustments			As Revised
	(In thousands, except per share amounts)
Consolidated Statement of Operations and Comprehensive Loss
Net Sales	$	4,881,951		$	(458	)	$	4,881,493
Cost of sales	3,061,122			(4,200		)	3,056,922
Gross Profit	1,820,829			3,742			1,824,571
Advertising and promotion expenses	642,286			—			642,286
Other selling and administrative expenses	1,517,983			—			1,517,983
Operating Loss	(339,440		)	3,742			(335,698		)
Interest expense	105,214			—			105,214
Interest (income)	(7,777		)	—			(7,777		)
Other non-operating expense, net	68,110			—			68,110
Loss Before Income Taxes	(504,987		)	3,742			(501,245		)
Provision for income taxes	548,849			4,485			553,334
Net Loss	$	(1,053,836	)	$	(743	)	$	(1,054,579	)
Comprehensive Loss	$	(892,593	)	$	(743	)	$	(893,336	)
Net Loss Per Common Share - Basic	$	(3.07	)	$	—		$	(3.07	)
Weighted average number of common shares	343,564			—			343,564
Net Loss Per Common Share - Diluted	$	(3.07	)	$	—		$	(3.07	)
Weighted average number of common and potential common shares	343,564			—			343,564



	Year Ended December 31, 2016
	As Previously Reported			Adjustments			As Revised
	(In thousands, except per share amounts)
Consolidated Statement of Operations and Comprehensive Income
Net Sales	$	5,456,650		$	(3,500	)	$	5,453,150
Cost of sales	2,902,259			4,200			2,906,459
Gross Profit	2,554,391			(7,700		)	2,546,691
Advertising and promotion expenses	634,947			—			634,947
Other selling and administrative expenses	1,391,769			—			1,391,769
Operating Income	527,675			(7,700		)	519,975
Interest expense	95,118			—			95,118
Interest (income)	(9,144		)	—			(9,144		)
Other non-operating expense, net	31,959			—			31,959
Income Before Income Taxes	409,742			(7,700		)	402,042
Provision for income taxes	91,720			(2,586		)	89,134
Net Income	$	318,022		$	(5,114	)	$	312,908
Comprehensive Income	$	223,892		$	(5,114	)	$	218,778
Net Income Per Common Share - Basic	$	0.93		$	(0.02	)	$	0.91
Weighted average number of common shares	341,480			—			341,480
Net Income Per Common Share - Diluted	$	0.92		$	(0.01	)	$	0.91
Weighted average number of common and potential common shares	344,233			—			344,233

CONSOLIDATED STATEMENTS OF CASH FLOWS



	Year Ended December 31, 2018
	As Previously Reported			Adjustments			As Revised
	(In thousands)
Consolidated Statement of Cash Flows
Net loss	$	(530,993	)	$	(2,306	)	$	(533,299	)
Adjustments to reconcile net loss to net cash flows used for operating activities:
Depreciation	232,837			—			232,837
Amortization	39,095			—			39,095
Share-based compensation	48,915			—			48,915
Bad debt expense	40,894			—			40,894
Inventory obsolescence	74,974			—			74,974
Asset impairments	18,203			—			18,203
Deferred income taxes	12,359			990			13,349
Indefinite reinvestment assertion and U.S. Tax Act	18,275			—			18,275
Increase (decrease) from changes in assets and liabilities:
Accounts receivable	76,373			(3,958		)	72,415
Inventories	(53,840		)	—			(53,840		)
Prepaid expenses and other current assets	56,378			(2,148		)	54,230
Accounts payable, accrued liabilities, and income taxes payable	(54,819		)	7,422			(47,397		)
Other, net	(5,968		)	—			(5,968		)
Net cash flows used for operating activities	$	(27,317	)	$	—		$	(27,317	)



	Year Ended December 31, 2017
	As Previously Reported			Adjustments			As Revised
	(in thousands)
Consolidated Statement of Cash Flows
Net loss	$	(1,053,836	)	$	(743	)	$	(1,054,579	)
Adjustments to reconcile net loss to net cash flows used for operating activities:
Depreciation	240,818			—			240,818
Amortization	33,949			—			33,949
Share-based compensation	67,119			—			67,119
Bad debt expense	17,568			—			17,568
Inventory obsolescence	127,592			—			127,592
Asset impairments	56,324			—			56,324
Deferred income taxes	(19,840		)	1,830			(18,010		)
Indefinite reinvestment assertion and U.S. Tax Act	(105,279		)	(1,770		)	(107,049		)
Valuation allowance on deferred tax assets	561,921			4,425			566,346
Loss on discontinuation of Venezuelan operations	58,973			—			58,973
Increase (decrease) from changes in assets and liabilities:
Accounts receivable	(3,942		)	458			(3,484		)
Inventories	(91,644		)	—			(91,644		)
Prepaid expenses and other current assets	33,681			—			33,681
Accounts payable, accrued liabilities, and income taxes payable	98,044			(4,200		)	93,844
Other, net	(49,062		)	—			(49,062		)
Net cash flows used for operating activities	$	(27,614	)	$	—		$	(27,614	)



	Year Ended December 31, 2016
	As Previously Reported			Adjustments			As Revised
	(in thousands)
Consolidated Statement of Cash Flows
Net income	$	318,022		$	(5,114	)	$	312,908
Adjustments to reconcile net income to net cash flows provided by operating activities:
Depreciation	235,797			—			235,797
Amortization	26,543			—			26,543
Share-based compensation	53,950			—			53,950
Bad debt expense	9,165			—			9,165
Inventory obsolescence	31,455			—			31,455
Deferred income taxes	1,236			(2,586		)	(1,350		)
Increase (decrease) from changes in assets and liabilities, net of acquired assets and liabilities:
Accounts receivable	(33,198		)	3,500			(29,698		)
Inventories	(68,650		)	—			(68,650		)
Prepaid expenses and other current assets	34,754			—			34,754
Accounts payable, accrued liabilities, and income taxes payable	9,006			4,200			13,206
Other, net	(23,571		)	—			(23,571		)
Net cash flows provided by operating activities	$	594,509		$	—		$	594,509

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY



	December 31, 2018
	As Previously Reported		Adjustments			As Revised
	(in thousands)
Retained earnings	$	1,629,257	$	(12,662	)	$	1,616,595
Total stockholders’ equity	$	669,465	$	(12,662	)	$	656,803



	December 31, 2017
	As Previously Reported		Adjustments			As Revised
	(in thousands)
Retained earnings	$	2,179,358	$	(10,356	)	$	2,169,002
Total stockholders’ equity	$	1,257,455	$	(10,356	)	$	1,247,099



	December 31, 2016
	As Previously Reported		Adjustments			As Revised
	(in thousands)
Retained earnings at beginning of period^(a)	$	3,745,815	$	(4,499	)	$	3,741,316
Total stockholders’ equity at beginning of period^(a)	$	2,633,254	$	(4,499	)	$	2,628,755
Retained earnings at end of period	$	3,545,359	$	(9,613	)	$	3,535,746
Total stockholders’ equity at end of period	$	2,407,782	$	(9,613	)	$	2,398,169


(a)	Adjustments represent the cumulative effect of immaterial revisions originating in periods prior to 2016.