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Revision of Quarterly Information | 9 Months Ended
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Sep. 30, 2019
Quarterly Financial Information Disclosure [Abstract] |
Revision of Quarterly Information | Revision of Quarterly Information As disclosed in Note 1, Mattel is revising its unaudited consolidated financial stat ements for the first and second quarters of 2019 and the first, second, and third quarters of 2018 to correc t for prior period misstatements which Mattel has determined did not, either individually or in the aggregate, materially misstate its previously issued consolidated financial statements. These misstatements related to the improper capitalization of certain advertising costs, the under-accrual of sales adjustments and employee related costs, an increase to the provision for income taxes, and an adjustment for the misclassification between amounts within operating cash flows. Accordingly, the accompanying financial statements as of and for the three and nine months ended September 30, 2018 have been revised to correct for such misstatements. Financial statements which were not impacted by such revisions are not presented. The cumulative impact of correcting prior period immaterial misstatements on retained earnings of $(5.2) million as of June 30, 2019 is comprised of the adjustments for prior period errors of $7.4 million for the six months ended June 30, 2019, $(2.3) million for the year ended December 31, 2018, and $(10.3) million for the year ended December 31, 2017 and prior periods. The revisions to Mattel's unaudited consolidated balance sheet, statements of operations and comprehensive loss, and cash flows as of and for the period ended June 30, 2019 were as follows:
| June 30, 2019
| As Previously Reported |  | Adjustments |  | As Revised
| (In thousands)
Consolidated Balance Sheet |  |  |  |  |
Accrued liabilities | $ | 590,532 |  |  | $ | 5,240 |  |  | $ | 595,772 |
Total current liabilities | $ | 1,074,580 |  |  | $ | 5,240 |  |  | $ | 1,079,820 |
Retained earnings | $ | 1,337,552 |  |  | $ | (5,240 | ) |  | $ | 1,332,312 |
Total stockholders' equity | $ | 421,337 |  |  | $ | (5,240 | ) |  | $ | 416,097 |
| Six Months Ended June 30, 2019
| As Previously Reported |  | Adjustments |  | As Revised
| (In thousands, except per share amounts)
Consolidated Statement of Operations and Comprehensive Loss |  |  |  |  |
Net sales | $ | 1,549,309 |  |  | $ | — |  |  | $ | 1,549,309 |
Cost of sales | $ | 968,135 |  |  | $ | — |  |  | $ | 968,135 |
Gross profit | $ | 581,174 |  |  | $ | — |  |  | $ | 581,174 |
Advertising and promotion expenses | $ | 153,954 |  |  | $ | — |  |  | $ | 153,954 |
Other selling and administrative expenses | $ | 609,595 |  |  | $ | (3,948 | ) |  | $ | 605,647 |
Operating loss | $ | (182,375 | ) |  | $ | 3,948 |  |  | $ | (178,427 | )
Loss before income taxes | $ | (273,373 | ) |  | $ | 3,948 |  |  | $ | (269,425 | )
Provision for income taxes | $ | 18,332 |  |  | $ | (3,474 | ) |  | $ | 14,858 |
Net loss | $ | (291,705 | ) |  | $ | 7,422 |  |  | $ | (284,283 | )
Comprehensive loss | $ | (272,141 | ) |  | $ | 7,422 |  |  | $ | (264,719 | )
Net loss per common share - basic | $ | (0.84 | ) |  | $ | 0.02 |  |  | $ | (0.82 | )
Net loss per common share - diluted | $ | (0.84 | ) |  | $ | 0.02 |  |  | $ | (0.82 | )
| Six Months Ended June 30, 2019
| As Previously Reported |  | Adjustments |  | As Revised
| (In thousands)
Consolidated Statement of Cash Flows |  |  |  |  |
Net loss | $ | (291,705 | ) |  | $ | 7,422 |  |  | $ | (284,283 | )
Increase (decrease) from changes in assets and liabilities: |  |  |  |  |
Accounts receivable | $ | 222,823 |  |  | $ | (5,069 | ) |  | $ | 217,754 |
Prepaid expenses and other current assets | $ | 146 |  |  | $ | (8,300 | ) |  | $ | (8,154 | )
Accounts payable, accrued liabilities, and income taxes payable | $ | (307,889 | ) |  | $ | 5,947 |  |  | $ | (301,942 | )
Net cash flows used for operating activities | $ | (400,519 | ) |  | $ | — |  |  | $ | (400,519 | )
The revisions to Mattel's unaudited consolidated balance sheet, statements of operations and comprehensive loss, and cash flows as of and for the period ended March 31, 2019 were as follows:
| March 31, 2019
| As Previously Reported |  | Adjustments |  | As Revised
| (In thousands)
Consolidated Balance Sheet |  |  |  |  |
Accrued liabilities | $ | 661,911 |  |  | $ | 5,240 |  |  | $ | 667,151 |
Total current liabilities | $ | 1,006,269 |  |  | $ | 5,240 |  |  | $ | 1,011,509 |
Retained earnings | $ | 1,445,539 |  |  | $ | (5,240 | ) |  | $ | 1,440,299 |
Total stockholders' equity | $ | 518,517 |  |  | $ | (5,240 | ) |  | $ | 513,277 |
| Three Months Ended March 31, 2019
| As Previously Reported |  | Adjustments |  | As Revised
| (In thousands, except per share amounts)
Consolidated Statement of Operations and Comprehensive Loss |  |  |  |  |
Net sales | $ | 689,246 |  |  | $ | — |  |  | $ | 689,246 |
Cost of sales | $ | 449,456 |  |  | $ | — |  |  | $ | 449,456 |
Gross profit | $ | 239,790 |  |  | $ | — |  |  | $ | 239,790 |
Advertising and promotion expenses | $ | 69,465 |  |  | $ | — |  |  | $ | 69,465 |
Other selling and administrative expenses | $ | 301,284 |  |  | $ | (3,948 | ) |  | $ | 297,336 |
Operating loss | $ | (130,959 | ) |  | $ | 3,948 |  |  | $ | (127,011 | )
Loss before income taxes | $ | (177,549 | ) |  | $ | 3,948 |  |  | $ | (173,601 | )
Provision for income taxes | $ | 6,169 |  |  | $ | (3,474 | ) |  | $ | 2,695 |
Net loss | $ | (183,718 | ) |  | $ | 7,422 |  |  | $ | (176,296 | )
Comprehensive loss | $ | (162,426 | ) |  | $ | 7,422 |  |  | $ | (155,004 | )
Net loss per common share - basic | $ | (0.53 | ) |  | $ | 0.02 |  |  | $ | (0.51 | )
Net loss per common share - diluted | $ | (0.53 | ) |  | $ | 0.02 |  |  | $ | (0.51 | )
| Three Months Ended March 31, 2019
| As Previously Reported |  | Adjustments |  | As Revised
| (In thousands)
Consolidated Statement of Cash Flows |  |  |  |  |
Net loss | $ | (183,718 | ) |  | $ | 7,422 |  |  | $ | (176,296 | )
Increase (decrease) from changes in assets and liabilities: |  |  |  |  |
Accounts receivable | $ | 351,450 |  |  | $ | (5,069 | ) |  | $ | 346,381 |
Prepaid expenses and other current assets | $ | (28,417 | ) |  | $ | (8,300 | ) |  | $ | (36,717 | )
Accounts payable, accrued liabilities, and income taxes payable | $ | (327,821 | ) |  | $ | 5,947 |  |  | $ | (321,874 | )
Net cash flows used for operating activities | $ | (192,810 | ) |  | $ | — |  |  | $ | (192,810 | )
The revisions to Mattel's unaudited consolidated balance sheet, statements of operations and comprehensive loss, and cash flows as of and for the period ended September 30, 2018 were as follows:
| September 30, 2018
| As Previously Reported |  | Adjustments |  | As Revised
| (In thousands)
Consolidated Balance Sheet |  |  |  |  |
Accrued liabilities | $ | 683,470 |  |  | $ | 7,388 |  |  | $ | 690,858 |
Total current liabilities | $ | 1,494,003 |  |  | $ | 7,388 |  |  | $ | 1,501,391 |
Retained earnings | $ | 1,614,343 |  |  | $ | (7,388 | ) |  | $ | 1,606,955 |
Total stockholders' equity | $ | 666,410 |  |  | $ | (7,388 | ) |  | $ | 659,022 |
| Nine Months Ended September 30, 2018
| As Previously Reported |  | Adjustments |  | As Revised
| (In thousands, except per share amounts)
Consolidated Statement of Operations and Comprehensive Loss |  |  |  |  |
Net sales | $ | 2,986,571 |  |  | $ | 3,958 |  |  | $ | 2,990,529 |
Cost of sales | $ | 1,901,440 |  |  | $ | — |  |  | $ | 1,901,440 |
Gross profit | $ | 1,085,131 |  |  | $ | 3,958 |  |  | $ | 1,089,089 |
Advertising and promotion expenses | $ | 318,538 |  |  | $ | — |  |  | $ | 318,538 |
Other selling and administrative expenses | $ | 1,110,491 |  |  | $ | — |  |  | $ | 1,110,491 |
Operating loss | $ | (343,898 | ) |  | $ | 3,958 |  |  | $ | (339,940 | )
Loss before income taxes | $ | (475,335 | ) |  | $ | 3,958 |  |  | $ | (471,377 | )
Provision for income taxes | $ | 70,571 |  |  | $ | 990 |  |  | $ | 71,561 |
Net loss | $ | (545,906 | ) |  | $ | 2,968 |  |  | $ | (542,938 | )
Comprehensive loss | $ | (599,142 | ) |  | $ | 2,968 |  |  | $ | (596,174 | )
Net loss per common share - basic | $ | (1.58 | ) |  | $ | 0.01 |  |  | $ | (1.57 | )
Net loss per common share - diluted | $ | (1.58 | ) |  | $ | 0.01 |  |  | $ | (1.57 | )
| Nine Months Ended September 30, 2018
| As Previously Reported |  | Adjustments |  | As Revised
| (In thousands)
Consolidated Statement of Cash Flows |  |  |  |  |
Net loss | $ | (545,906 | ) |  | $ | 2,968 |  |  | $ | (542,938 | )
Adjustments to reconcile net loss to net cash flows used for operating activities: |  |  |  |  |
Deferred income taxes | $ | 1,435 |  |  | $ | 990 |  |  | $ | 2,425 |
(Decrease) increase from changes in assets and liabilities, net of acquired assets and liabilities: |  |  |  |  |
Accounts receivable | $ | (255,781 | ) |  | $ | (3,958 | ) |  | $ | (259,739 | )
Prepaid expenses and other current assets | $ | 9,250 |  |  | $ | (7,388 | ) |  | $ | 1,862 |
Accounts payable, accrued liabilities, and income taxes payable | $ | (107,601 | ) |  | $ | 7,388 |  |  | $ | (100,213 | )
Net cash flows used for operating activities | $ | (731,452 | ) |  | $ | — |  |  | $ | (731,452 | )
The revisions to Mattel's unaudited consolidated balance sheet, statements of operations and comprehensive loss, and cash flows as of and for the periods ended June 30, 2018 were as follows:
| June 30, 2018
| As Previously Reported |  | Adjustments |  | As Revised
| (In thousands)
Consolidated Balance Sheet |  |  |  |  |
Accrued liabilities | $ | 585,585 |  |  | $ | 7,388 |  |  | $ | 592,973 |
Total current liabilities | $ | 1,097,445 |  |  | $ | 7,388 |  |  | $ | 1,104,833 |
Retained earnings | $ | 1,608,026 |  |  | $ | (7,388 | ) |  | $ | 1,600,638 |
Total stockholders' equity | $ | 663,971 |  |  | $ | (7,388 | ) |  | $ | 656,583 |
| Three Months Ended June 30, 2018
| As Previously Reported |  | Adjustments |  | As Revised
| (In thousands, except per share amounts)
Consolidated Statement of Operations and Comprehensive Loss |  |  |  |  |
Net sales | $ | 840,748 |  |  | $ | 3,958 |  |  | $ | 844,706 |
Cost of sales | $ | 587,546 |  |  | $ | — |  |  | $ | 587,546 |
Gross profit | $ | 253,202 |  |  | $ | 3,958 |  |  | $ | 257,160 |
Advertising and promotion expenses | $ | 82,393 |  |  | $ | — |  |  | $ | 82,393 |
Other selling and administrative expenses | $ | 360,000 |  |  | $ | — |  |  | $ | 360,000 |
Operating loss | $ | (189,191 | ) |  | $ | 3,958 |  |  | $ | (185,233 | )
Loss before income taxes | $ | (234,022 | ) |  | $ | 3,958 |  |  | $ | (230,064 | )
Provision for income taxes | $ | 6,909 |  |  | $ | 990 |  |  | $ | 7,899 |
Net loss | $ | (240,931 | ) |  | $ | 2,968 |  |  | $ | (237,963 | )
Comprehensive loss | $ | (325,860 | ) |  | $ | 2,968 |  |  | $ | (322,892 | )
Net loss per common share - basic | $ | (0.70 | ) |  | $ | 0.01 |  |  | $ | (0.69 | )
Net loss per common share - diluted | $ | (0.70 | ) |  | $ | 0.01 |  |  | $ | (0.69 | )
| Six Months Ended June 30, 2018
| As Previously Reported |  | Adjustments |  | As Revised
| (In thousands, except per share amounts)
Consolidated Statement of Operations and Comprehensive Loss |  |  |  |  |
Net sales | $ | 1,549,120 |  |  | $ | 3,958 |  |  | $ | 1,553,078 |
Cost of sales | $ | 1,077,045 |  |  | $ | — |  |  | $ | 1,077,045 |
Gross profit | $ | 472,075 |  |  | $ | 3,958 |  |  | $ | 476,033 |
Advertising and promotion expenses | $ | 153,230 |  |  | $ | — |  |  | $ | 153,230 |
Other selling and administrative expenses | $ | 784,617 |  |  | $ | — |  |  | $ | 784,617 |
Operating loss | $ | (465,772 | ) |  | $ | 3,958 |  |  | $ | (461,814 | )
Loss before income taxes | $ | (547,927 | ) |  | $ | 3,958 |  |  | $ | (543,969 | )
Provision for income taxes | $ | 4,257 |  |  | $ | 990 |  |  | $ | 5,247 |
Net loss | $ | (552,184 | ) |  | $ | 2,968 |  |  | $ | (549,216 | )
Comprehensive loss | $ | (594,476 | ) |  | $ | 2,968 |  |  | $ | (591,508 | )
Net loss per common share - basic | $ | (1.60 | ) |  | $ | 0.01 |  |  | $ | (1.59 | )
Net loss per common share - diluted | $ | (1.60 | ) |  | $ | 0.01 |  |  | $ | (1.59 | )
| Six Months Ended June 30, 2018
| As Previously Reported |  | Adjustments |  | As Revised
| (In thousands)
Consolidated Statement of Cash Flows |  |  |  |  |
Net loss | $ | (552,184 | ) |  | $ | 2,968 |  |  | $ | (549,216 | )
Adjustments to reconcile net loss to net cash flows used for operating activities: |  |  |  |  |
Deferred income taxes | $ | (827 | ) |  | $ | 990 |  |  | $ | 163 |
Increase (decrease) from changes in assets and liabilities, net of acquired assets and liabilities: |  |  |  |  |
Accounts receivable | $ | 274,306 |  |  | $ | (3,958 | ) |  | $ | 270,348 |
Prepaid expenses and other current assets | $ | (27,784 | ) |  | $ | (7,388 | ) |  | $ | (35,172 | )
Accounts payable, accrued liabilities, and income taxes payable | $ | (328,998 | ) |  | $ | 7,388 |  |  | $ | (321,610 | )
Net cash flows used for operating activities | $ | (556,609 | ) |  | $ | — |  |  | $ | (556,609 | )
The revisions to Mattel's unaudited consolidated balance sheet and statement of cash flows as of and for the period ended March 31, 2018 were as follows:
| March 31, 2018
| As Previously Reported |  | Adjustments |  | As Revised
| (In thousands)
Consolidated Balance Sheet |  |  |  |  |
Accounts receivable, net | $ | 676,119 |  |  | $ | (3,958 | ) |  | $ | 672,161 |
Total current assets | $ | 2,221,670 |  |  | $ | (3,958 | ) |  | $ | 2,217,712 |
Other noncurrent assets | $ | 928,519 |  |  | $ | 990 |  |  | $ | 929,509 |
Total assets | $ | 5,304,090 |  |  | $ | (2,968 | ) |  | $ | 5,301,122 |
Accrued liabilities | $ | 578,909 |  |  | $ | 7,388 |  |  | $ | 586,297 |
Total current liabilities | $ | 987,179 |  |  | $ | 7,388 |  |  | $ | 994,567 |
Retained earnings | $ | 1,848,957 |  |  | $ | (10,356 | ) |  | $ | 1,838,601 |
Total stockholders' equity | $ | 982,466 |  |  | $ | (10,356 | ) |  | $ | 972,110 |
| Three Months Ended March 31, 2018
| As Previously Reported |  | Adjustments |  | As Revised
| (In thousands)
Consolidated Statement of Cash Flows |  |  |  |  |
Net loss | $ | (311,253 | ) |  | $ | — |  |  | $ | (311,253 | )
Decrease from changes in assets and liabilities, net of acquired assets and liabilities: |  |  |  |  |
Prepaid expenses and other current assets | $ | (40,052 | ) |  | $ | (7,388 | ) |  | $ | (47,440 | )
Accounts payable, accrued liabilities, and income taxes payable | $ | (367,298 | ) |  | $ | 7,388 |  |  | $ | (359,910 | )
Net cash flows used for operating activities | $ | (273,732 | ) |  | $ | — |  |  | $ | (273,732 | )

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- Definition The entire disclosure for quarterly financial data. Includes, but is not limited to, tabular presentation of financial information for fiscal quarters, effect of year-end adjustments, and an explanation of matters or transactions that affect comparability of the information. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 270 -URI http://asc.fasb.org/topic&trid=2126967 + Details
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