Share-Based Payments

9 Months Ended

Sep. 30, 2019

Share-based Payment Arrangement [Abstract]

Mattel has various stock compensation plans, which are more fully described in Part II, Item 8 "Financial Statements and Supplementary Data—Note 8 to the Consolidated Financial Statements—Share-Based Payments" in its 2018 Annual Report on Form 10-K/A. Under the Mattel, Inc. Amended and Restated 2010 Equity and Long-Term Compensation Plan, Mattel has the ability to grant nonqualified stock options, incentive stock options, stock appreciation rights, restricted stock, RSUs, performance awards, dividend equivalent rights, and shares of common stock to officers, employees, and other persons providing services to Mattel. Stock options are granted with exercise prices at the fair market value of Mattel's common stock on the applicable grant date and expire no later than 10 years from the date of grant. Stock options and RSUs generally provide for vesting over a period of three years from the date of grant.

As of September 30, 2019, three long-term incentive programs were in place with the following performance cycles: (i) a January 1, 2017–December 31, 2019 performance cycle, (ii) a January 1, 2018–December 31, 2020 performance cycle, and (iii) a January 1, 2019–December 31, 2021 performance cycle.

Compensation expense, included within other selling and administrative expenses in the consolidated statements of operations, related to stock options and RSUs is as follows:



	For the Three Months Ended				For the Nine Months Ended
	September 30, 2019		September 30, 2018		September 30, 2019		September 30, 2018
	(In thousands)
Stock option compensation expense	$	2,786	$	2,751	$	7,359	$	6,125
RSU compensation expense (a)	12,045		11,019		31,781		30,062
	$	14,831	$	13,770	$	39,140	$	36,187

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(a)	Includes compensation expense of $3.9 million and $6.0 million associated with Mattel's long-term incentive programs for the three and nine months ended September 30, 2019, respectively.

As of September 30, 2019, total unrecognized compensation expense related to unvested share-based payments totaled $104.5 million and is expected to be recognized over a weighted average period of 2.1 years.

Mattel uses treasury shares purchased under its share repurchase program to satisfy stock option exercises and the vesting of RSUs. No cash was received for stock option exercises during the nine months ended September 30, 2019 and 2018.