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Segment Information | 12 Months Ended
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Dec. 31, 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 (NBCUniversal), 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, certain 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 Year Ended
| December 31, 2019 |  | December 31, 2018 |  | December 31, 2017 (b)
| (In thousands)
Revenues by Segment |  |  |  |  |
North America | $ | 2,432,299 |  |  | $ | 2,422,108 |  |  | $ | 2,536,654 |
International | 2,363,786 |  |  | 2,312,230 |  |  | 2,503,527 |
American Girl | 268,489 |  |  | 341,191 |  |  | 473,944 |
Gross sales | 5,064,574 |  |  | 5,075,529 |  |  | 5,514,125 |
Sales adjustments | (560,003 | ) |  | (560,719 | ) |  | (632,632 | )
Net sales | $ | 4,504,571 |  |  | $ | 4,514,810 |  |  | $ | 4,881,493 |
Segment Income (Loss) |  |  |  |  |
North America | $ | 357,039 |  |  | $ | 220,769 |  |  | $ | 102,710 |
International | 166,873 |  |  | 13,915 |  |  | (6,322 | )
American Girl | (58,813 | ) |  | (17,726 | ) |  | (72,968 | )
| 465,099 |  |  | 216,958 |  |  | 23,420 |
Corporate and other expense (a) | (425,859 | ) |  | (451,307 | ) |  | (359,118 | )
Operating income (loss) | 39,240 |  |  | (234,349 | ) |  | (335,698 | )
Interest expense | 201,044 |  |  | 181,886 |  |  | 105,214 |
Interest (income) | (6,166 | ) |  | (6,463 | ) |  | (7,777 | )
Other non-operating expense, net | 2,650 |  |  | 7,331 |  |  | 68,110 |
Loss before income taxes | $ | (158,288 | ) |  | $ | (417,103 | ) |  | $ | (501,245 | )
(a) | Corporate and other expense includes (i) incentive compensation expense of $119.5 million, $84.1 million, and $19.4 million for 2019, 2018, and 2017, respectively; (ii) $40.5 million, $104.1 million, and $65.1 million of charges related to severance and other restructuring costs for 2019, 2018, and 2017, respectively; and (iii) share-based compensation expense of $56.0 million, $48.9 million, and $67.1 million for 2019, 2018, and 2017, respectively.
(b) | In accordance with ASU 2017-07, prior period amounts have been retrospectively adjusted, which resulted in a reclassification of $3.4 million of expense, net from other selling and administrative expenses, which is included in corporate and other expense, to other non-operating expense, net for the year ended December 31, 2017.
| For the Year Ended
| December 31, 2019 |  | December 31, 2018 |  | December 31, 2017
| (In thousands)
Depreciation/Amortization by Segment |  |  |  |  |
North America | $ | 112,988 |  |  | $ | 130,087 |  |  | $ | 118,898 |
International | 85,496 |  |  | 95,480 |  |  | 96,623 |
American Girl | 12,416 |  |  | 14,391 |  |  | 22,615 |
| 210,900 |  |  | 239,958 |  |  | 238,136 |
Corporate and other | 33,618 |  |  | 31,974 |  |  | 36,631 |
Depreciation and amortization | $ | 244,518 |  |  | $ | 271,932 |  |  | $ | 274,767 |
Segment assets are comprised of accounts receivable and inventories, net of applicable reserves and allowances.
| December 31, 2019 |  | December 31, 2018 |  | December 31, 2017
| (In thousands)
Assets by Segment |  |  |  |  |
North America | $ | 569,819 |  |  | $ | 615,654 |  |  | $ | 692,232 |
International | 721,251 |  |  | 728,870 |  |  | 825,227 |
American Girl | 35,004 |  |  | 43,748 |  |  | 100,184 |
| 1,326,074 |  |  | 1,388,272 |  |  | 1,617,643 |
Corporate and other | 105,789 |  |  | 124,700 |  |  | 107,713 |
Accounts receivable and inventories, net | $ | 1,431,863 |  |  | $ | 1,512,972 |  |  | $ | 1,725,356 |
The table below presents worldwide revenues by categories:
| For the Year Ended
| December 31, 2019 |  | December 31, 2018 |  | December 31, 2017
| (In thousands)
Revenues by Categories (a) |  |  |  |  |
Dolls | $ | 1,724,008 |  |  | $ | 1,730,907 |  |  | $ | 1,725,865 |
Infant, Toddler, and Preschool | 1,257,646 |  |  | 1,417,820 |  |  | 1,677,223 |
Vehicles | 1,101,338 |  |  | 1,065,452 |  |  | 1,242,790 |
Action Figures, Building Sets, and Games | 981,582 |  |  | 861,350 |  |  | 868,247 |
Gross sales | 5,064,574 |  |  | 5,075,529 |  |  | 5,514,125 |
Sales adjustments | (560,003 | ) |  | (560,719 | ) |  | (632,632 | )
Net sales | $ | 4,504,571 |  |  | $ | 4,514,810 |  |  | $ | 4,881,493 |
(a) | Mattel modified its reporting structure for revenues in the first quarter of 2019 to disclose revenues by categories.
The table below presents worldwide revenues by brand category:
| For the Year Ended
| December 31, 2019 |  | December 31, 2018 |  | December 31, 2017
| (In thousands)
Revenues by Top 3 Power Brands |  |  |  |  |
Barbie | $ | 1,159,768 |  |  | $ | 1,088,953 |  |  | $ | 954,892 |
Hot Wheels | 925,854 |  |  | 834,058 |  |  | 777,341 |
Fisher-Price and Thomas & Friends | 1,131,750 |  |  | 1,185,669 |  |  | 1,370,543 |
Other | 1,847,202 |  |  | 1,966,849 |  |  | 2,411,349 |
Gross sales | 5,064,574 |  |  | 5,075,529 |  |  | 5,514,125 |
Sales adjustments | (560,003 | ) |  | (560,719 | ) |  | (632,632 | )
Net sales | $ | 4,504,571 |  |  | $ | 4,514,810 |  |  | $ | 4,881,493 |
Geographic Information The tables below present information by geographic area. Revenues are attributed to countries based on location of customer. Long-lived assets principally include goodwill, property, plant, and equipment, net, and identifiable intangibles, net.
| For the Year Ended
| December 31, 2019 |  | December 31, 2018 |  | December 31, 2017
| (In thousands)
Revenues |  |  |  |  |
North American Region (a) | $ | 2,700,788 |  |  | $ | 2,763,299 |  |  | $ | 3,010,598 |
International Region (b): |  |  |  |  |
EMEA | 1,292,948 |  |  | 1,252,424 |  |  | 1,281,671 |
Latin America | 666,102 |  |  | 653,992 |  |  | 675,286 |
Asia Pacific | 404,736 |  |  | 405,814 |  |  | 546,570 |
Total International Region | 2,363,786 |  |  | 2,312,230 |  |  | 2,503,527 |
Gross sales | 5,064,574 |  |  | 5,075,529 |  |  | 5,514,125 |
Sales adjustments | (560,003 | ) |  | (560,719 | ) |  | (632,632 | )
Net sales | $ | 4,504,571 |  |  | $ | 4,514,810 |  |  | $ | 4,881,493 |
| December 31, 2019 |  | December 31, 2018 |  | December 31, 2017
| (In thousands)
Long-Lived Assets |  |  |  |  |
North American Region (c) | $ | 1,429,549 |  |  | $ | 1,466,413 |  |  | $ | 1,543,662 |
International Region | 1,276,616 |  |  | 1,374,676 |  |  | 1,506,503 |
Consolidated total | $ | 2,706,165 |  |  | $ | 2,841,089 |  |  | $ | 3,050,165 |
(a) | Revenues for the North American Region include revenues attributable to the U.S. of $2.54 billion, $2.60 billion, and $2.82 billion for 2019, 2018, and 2017, respectively.
(b) | Mattel reorganized its regional 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 regions (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.
(c) | Long-lived assets for the North American Region include long-lived assets attributable to the U.S. of $1.39 billion, $1.42 billion, and $1.49 billion for 2019, 2018, and 2017, respectively.
Major Customers Sales to Mattel’s two largest customers accounted for 32%, 34%, and 29% of worldwide consolidated net sales for 2019, 2018, and 2017, respectively, as follows:
| For the Year Ended
| December 31, 2019 |  | December 31, 2018 |  | December 31, 2017
| (In billions)
Walmart | $ | 1.01 |  |  | $ | 1.07 |  |  | $ | 1.02 |
Target | $ | 0.44 |  |  | $ | 0.45 |  |  | $ | 0.37 |
The North America segment sells products to each of Mattel’s two largest customers. The International segment sells products to Walmart. The American Girl segment sells its children’s publications to each of Mattel's two largest customers.

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- 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
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