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Restructuring Charges
 6 Months Ended
Jun. 30, 2019
Restructuring and Related Activities [Abstract]  
Restructuring Charges
Restructuring Charges
Structural Simplification Cost Savings Program
During the third quarter of 2017, Mattel initiated its Structural Simplification cost savings program. The major initiatives of the Structural Simplification cost savings program include:
•
Reducing manufacturing complexity, including SKU reduction, and implementing process improvement initiatives at owned and co-manufacturing facilities;
•
Streamlining the organizational structure and reducing headcount expense to better align with the revenue base; and
•
Optimizing advertising spend.
In connection with the Structural Simplification cost savings program, Mattel recorded severance and other restructuring charges of $6.4 million and $15.2 million during the three and six months ended June 30, 2019, respectively, as compared to $47.8 million and $72.7 million during the three and six ended June 30, 2018, respectively, within other selling and administrative expenses in the consolidated statements of operations, which is included in corporate and other expense in "Note 23 to the Consolidated Financial Statements—Segment Information."
The following table summarizes Mattel's severance and other restructuring costs activity related to the Structural Simplification cost savings program for the six months ended June 30, 2019:
 
Liability at December 31, 2018
 
 Charges
 
Payments/Utilization
 
Liability at
June 30, 2019
 
(In thousands)
Severance
$
27,670

 
$
7,174

 
$
(22,398
)
 
$
12,446

Other restructuring costs (a)
13,722

 
7,982

 
(13,742
)
 
7,962

 
$
41,392

 
$
15,156

 
$
(36,140
)
 
$
20,408

______________________________________________________________________
(a)
Consists primarily of consulting fees.
To date, Mattel has recorded cumulative severance and other restructuring charges of $170.1 million and expects to incur total severance and restructuring charges of approximately $185 million related to the Structural Simplification cost savings program.
Capital Light Initiative
During the first quarter of 2019, Mattel announced the commencement of its Capital Light initiative to optimize Mattel's manufacturing footprint (including the sale or consolidation of manufacturing facilities), increase the productivity of its plant infrastructure, and achieve additional efficiencies across its entire supply chain. In connection with the Capital Light initiative, Mattel recorded severance and other restructuring charges of $11.5 million during the three and six months ended June 30, 2019, with $8.0 million recorded within other selling and administrative expenses and $3.5 million recorded within cost of sales in the consolidated statements of operations.
The following table summarizes Mattel's severance and other restructuring costs activity related to the Capital Light initiative for the six months ended June 30, 2019:
 
Liability at December 31, 2018
 
 Charges
 
Payments/Utilization
 
Liability at
June 30, 2019
 
(In thousands)
Severance
$
—

 
$
7,971

 
$
—

 
$
7,971

Other restructuring costs (a)
—

 
3,483

 
(3,483
)
 
—

 
$
—

 
$
11,454

 
$
(3,483
)
 
$
7,971

______________________________________________________________________
(a)
Consists primarily of plant restructuring non-cash charges.
Mattel expects to incur total severance and restructuring charges, excluding non-cash charges, of approximately $24 million during 2019 related to the Capital Light initiative.