XML 38 R30.htm IDEA: XBRL DOCUMENT
v3.19.3

Segment Information | 9 Months Ended
--- | ---
Sep. 30, 2019
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. Gross Sales Although there were no changes to Mattel's commercial operations that impacted its operating segments, in the first quarter of 2019, Mattel modified its reporting structure for revenues, as outlined below, and reorganized its regional sales reporting structure within the International segment. Prior period amounts have been reclassified to conform to the current period presentation. Gross sales by categories are presented as follows: Dolls—including brands such as Barbie, American Girl, Enchantimals, and Polly Pocket. Infant, Toddler, and Preschool—including brands such as Fisher-Price and Thomas & Friends, Power Wheels, Fireman Sam, and Shimmer and Shine (Nickelodeon). Vehicles—including brands such as Hot Wheels, Matchbox, and CARS (Disney Pixar). Action Figures, Building Sets, and Games—including brands such as MEGA, UNO, Toy Story (Disney Pixar), Jurassic World (Universal), and WWE. Segment Data 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 across categories, although some products are developed and adapted for particular international markets. The following tables present information about revenues, income (loss), 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" and reconciled to net sales in the tables below). 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 uses gross and net sales by segment as metrics to measure segment performance. Such sales adjustments are included in the determination of segment income (loss) from operations based on the adjustments recorded in the financial accounting systems. Segment income (loss) represents each segment's operating income (loss), while consolidated operating income (loss) represents income (loss) from operations before net interest, other non-operating expense, 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 compensation, 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 |  | For the Nine Months Ended
| September 30, 2019 |  | September 30, 2018 |  | September 30, 2019 |  | September 30, 2018
| (In thousands)
Revenues by Segment |  |  |  |  |  |  |
North America | $ | 880,441 |  |  | $ | 886,307 |  |  | $ | 1,697,186 |  |  | $ | 1,677,580 |
International | 721,705 |  |  | 656,467 |  |  | 1,567,390 |  |  | 1,507,277 |
American Girl | 54,764 |  |  | 63,862 |  |  | 134,726 |  |  | 175,910 |
Gross sales | 1,656,910 |  |  | 1,606,636 |  |  | 3,399,302 |  |  | 3,360,767 |
Sales adjustments | (175,353 | ) |  | (169,185 | ) |  | (368,436 | ) |  | (370,238 | )
Net sales | $ | 1,481,557 |  |  | $ | 1,437,451 |  |  | $ | 3,030,866 |  |  | $ | 2,990,529 |
| For the Three Months Ended |  | For the Nine Months Ended
| September 30, 2019 |  | September 30, 2018 |  | September 30, 2019 |  | September 30, 2018
| (In thousands)
Segment Income (Loss) |  |  |  |  |  |  |
North America (a) | $ | 194,368 |  |  | $ | 186,705 |  |  | $ | 202,923 |  |  | $ | 54,015 |
International (a) | 89,244 |  |  | 46,466 |  |  | 61,434 |  |  | (71,582 | )
American Girl (a) | (11,079 | ) |  | (9,638 | ) |  | (41,442 | ) |  | (40,703 | )
| 272,533 |  |  | 223,533 |  |  | 222,915 |  |  | (58,270 | )
Corporate and other expense (b) | (122,446 | ) |  | (101,659 | ) |  | (251,255 | ) |  | (281,670 | )
Operating income (loss) | 150,087 |  |  | 121,874 |  |  | (28,340 | ) |  | (339,940 | )
Interest expense | 47,689 |  |  | 48,156 |  |  | 140,881 |  |  | 132,702 |
Interest (income) | (821 | ) |  | (785 | ) |  | (4,625 | ) |  | (5,631 | )
Other non-operating expense, net | 1,264 |  |  | 1,911 |  |  | 2,874 |  |  | 4,366 |
Income (loss) before income taxes | $ | 101,955 |  |  | $ | 72,592 |  |  | $ | (167,470 | ) |  | $ | (471,377 | )
__________________________________________
(a) | Segment income (loss) for the three and nine months ended September 30, 2019 included charges of $3.9 million and $34.3 million, respectively, attributable to the inclined sleeper product recalls, most of which was recorded in the North America segment. Segment income (loss) for the three and nine months ended September 30, 2018 included $(13.0) million and $66.8 million, respectively, of net sales reversal and bad debt expense, net, attributable to the Toys "R" Us liquidation. Of the $66.8 million of charges recognized for the Toys "R" Us liquidation for the nine months ended September 30, 2018, $57.4 million, $7.7 million, and $1.7 million was recorded in the North America, International, and American Girl segments, respectively.
(b) | Corporate and other expense included severance and restructuring charges of $11.3 million and $34.4 million for the three and nine months ended September 30, 2019, respectively, and $25.5 million and $98.2 million for the three and nine months ended September 30, 2018, respectively, and share-based compensation expense of $14.8 million and $39.1 million for the three and nine months ended September 30, 2019, respectively, and $13.8 million and $36.2 million for the three and nine months ended September 30, 2018, respectively.
Segment assets are comprised of accounts receivable and inventories, net of applicable reserves and allowances.
| September 30, 2019 |  | September 30, 2018 |  | December 31, 2018
| (In thousands)
Assets by Segment |  |  |  |  |
North America | $ | 916,250 |  |  | $ | 912,008 |  |  | $ | 615,654 |
International | 906,788 |  |  | 917,668 |  |  | 728,870 |
American Girl | 60,171 |  |  | 85,515 |  |  | 43,748 |
| 1,883,209 |  |  | 1,915,191 |  |  | 1,388,272 |
Corporate and other | 109,613 |  |  | 123,753 |  |  | 124,700 |
Accounts receivable and inventories, net | $ | 1,992,822 |  |  | $ | 2,038,944 |  |  | $ | 1,512,972 |
The table below presents worldwide revenues by categories:
| For the Three Months Ended |  | For the Nine Months Ended
| September 30, 2019 |  | September 30, 2018 |  | September 30, 2019 |  | September 30, 2018
| (In thousands)
Revenues by Categories (a) |  |  |  |  |  |  |
Dolls | $ | 567,598 |  |  | $ | 538,368 |  |  | $ | 1,093,890 |  |  | $ | 1,062,357 |
Infant, Toddler, and Preschool | 430,973 |  |  | 483,424 |  |  | 876,595 |  |  | 998,072 |
Vehicles | 346,939 |  |  | 306,490 |  |  | 744,437 |  |  | 710,461 |
Action Figures, Building Sets, and Games | 311,400 |  |  | 278,354 |  |  | 684,380 |  |  | 589,877 |
Gross sales | 1,656,910 |  |  | 1,606,636 |  |  | 3,399,302 |  |  | 3,360,767 |
Sales adjustments | (175,353 | ) |  | (169,185 | ) |  | (368,436 | ) |  | (370,238 | )
Net sales | $ | 1,481,557 |  |  | $ | 1,437,451 |  |  | $ | 3,030,866 |  |  | $ | 2,990,529 |
__________________________________________
(a) | Mattel modified its reporting structure for revenues in the first quarter of 2019 to disclose revenues by categories.
The table below presents supplemental disclosure of worldwide revenues:
| For the Three Months Ended |  | For the Nine Months Ended
| September 30, 2019 |  | September 30, 2018 |  | September 30, 2019 |  | September 30, 2018
| (In thousands)
Revenues by Top 3 Power Brands |  |  |  |  |  |  |
Barbie | $ | 412,840 |  |  | $ | 374,707 |  |  | $ | 762,849 |  |  | $ | 698,131 |
Hot Wheels | 293,295 |  |  | 234,993 |  |  | 619,030 |  |  | 547,239 |
Fisher-Price and Thomas & Friends | 396,339 |  |  | 409,497 |  |  | 791,146 |  |  | 833,468 |
Other | 554,436 |  |  | 587,439 |  |  | 1,226,277 |  |  | 1,281,929 |
Gross sales | 1,656,910 |  |  | 1,606,636 |  |  | 3,399,302 |  |  | 3,360,767 |
Sales adjustments | (175,353 | ) |  | (169,185 | ) |  | (368,436 | ) |  | (370,238 | )
Net sales | $ | 1,481,557 |  |  | $ | 1,437,451 |  |  | $ | 3,030,866 |  |  | $ | 2,990,529 |
Geographic Information The table below presents information by geographic area. Revenues are attributed to countries based on location of the customer.
| For the Three Months Ended |  | For the Nine Months Ended
| September 30, 2019 |  | September 30, 2018 |  | September 30, 2019 |  | September 30, 2018
| (In thousands)
Revenues |  |  |  |  |  |  |
North America | $ | 935,205 |  |  | $ | 950,169 |  |  | $ | 1,831,912 |  |  | $ | 1,853,490 |
International (a) |  |  |  |  |  |  |
EMEA | 408,660 |  |  | 370,084 |  |  | 859,116 |  |  | 819,153 |
Latin America | 213,535 |  |  | 198,760 |  |  | 430,095 |  |  | 411,778 |
Asia Pacific | 99,510 |  |  | 87,623 |  |  | 278,179 |  |  | 276,346 |
Total International | 721,705 |  |  | 656,467 |  |  | 1,567,390 |  |  | 1,507,277 |
Gross sales | 1,656,910 |  |  | 1,606,636 |  |  | 3,399,302 |  |  | 3,360,767 |
Sales adjustments | (175,353 | ) |  | (169,185 | ) |  | (368,436 | ) |  | (370,238 | )
Net sales | $ | 1,481,557 |  |  | $ | 1,437,451 |  |  | $ | 3,030,866 |  |  | $ | 2,990,529 |
__________________________________________ (a) Mattel reorganized its regional sales reporting structure in the first quarter of 2019. As a result, the new regions are Europe, the Middle East, and Africa ("EMEA"), Latin America, and Asia Pacific. The Middle East, Africa, Russia, and Turkey were previously included in the Asia Pacific region (previously Global Emerging Markets) and are now included in EMEA (previously Europe). Prior period amounts have been reclassified to conform to the current period presentation.

X
- References No definition available. + Details
Name: | us-gaap_SegmentReportingAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration