XML 42 R29.htm IDEA: XBRL DOCUMENT
v3.20.2

Segment Information | 6 Months Ended
--- | ---
Jun. 30, 2020
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 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, CARS (Disney Pixar), and Jurassic World (NBCUniversal). Action Figures, Building Sets, Games, and Other—including brands such as MEGA, UNO, Toy Story (Disney Pixar), Jurassic World (NBCUniversal), WWE, and Star Wars (Disney). 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 generally are not associated with categories, brands, and individual products. For this reason, Mattel's Chief Operating Decision Maker uses total net sales and gross sales by segment as measures to evaluate segment performance. 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 loss represents loss from operations before net interest, other non-operating expense (income), 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 Six Months Ended |  |
| June 30, 2020 |  | June 30, 2019 |  | June 30, 2020 |  | June 30, 2019
| (In thousands) |  |  |  |  |  |
Revenues by Segment |  |  |  |  |  |  |
North America | $ | 461,550 |  |  | $ | 447,354 |  |  | $ | 767,302 |  |  | $ | 816,745 |
International | 323,944 |  |  | 480,507 |  |  | 650,064 |  |  | 845,685 |
American Girl | 29,066 |  |  | 34,405 |  |  | 67,159 |  |  | 79,962 |
Gross sales | 814,560 |  |  | 962,266 |  |  | 1,484,525 |  |  | 1,742,392 |
Sales adjustments | (82,424) |  |  | (102,203) |  |  | (158,319) |  |  | (193,083) |
Net sales | $ | 732,136 |  |  | $ | 860,063 |  |  | $ | 1,326,206 |  |  | $ | 1,549,309 |
| For the Three Months Ended |  |  |  | For the Six Months Ended |  |
| June 30, 2020 |  | June 30, 2019 |  | June 30, 2020 |  | June 30, 2019
| (In thousands) |  |  |  |  |  |
Segment Income (Loss) |  |  |  |  |  |  |
North America (a) | $ | 77,920 |  |  | $ | 28,297 |  |  | $ | 85,951 |  |  | $ | 8,556 |
International (a) | (9,767) |  |  | (3,507) |  |  | (43,848) |  |  | (27,810) |
American Girl | (13,858) |  |  | (16,305) |  |  | (31,299) |  |  | (30,364) |
| 54,295 |  |  | 8,485 |  |  | 10,804 |  |  | (49,618) |
Corporate and other expense (b) | (100,436) |  |  | (59,901) |  |  | (206,756) |  |  | (128,809) |
Operating loss | (46,141) |  |  | (51,416) |  |  | (195,952) |  |  | (178,427) |
Interest expense | 49,615 |  |  | 46,234 |  |  | 98,595 |  |  | 93,192 |
Interest (income) | (1,025) |  |  | (1,532) |  |  | (3,108) |  |  | (3,804) |
Other non-operating expense (income), net | 1,602 |  |  | (294) |  |  | 3,743 |  |  | 1,610 |
Loss before income taxes | $ | (96,333) |  |  | $ | (95,824) |  |  | $ | (295,182) |  |  | $ | (269,425) |
_______________________________________ (a)Segment income (loss) included severance and restructuring expenses of $1.4 million and $4.5 million, for the three and six months ended June 30, 2020, respectively, and $3.5 million, for the three and six months ended June 30, 2019, respectively, which were allocated to the North America and International segments. Segment income (loss) for the three and six months ended June 30, 2019 also included charges of $3.1 million and $30.4 million, respectively, attributable to the inclined sleeper product recalls, substantially all of which was recorded in the North America segment. (b)Corporate and other expense included severance and restructuring charges of $16.2 million and $23.8 million, for the three and six months ended June 30, 2020, respectively, and $14.4 million and $23.1 million, for the three and six months ended June 30, 2019. Corporate and other expense also included expenses related to inclined sleeper product recall litigation of $2.9 million and $9.1 million, for the three and six months ended June 30, 2020, respectively, and share-based compensation for the three and six months ended June 30, 2020 and June 30, 2019. Segment assets are comprised of accounts receivable and inventories, net of applicable allowances and reserves.
| June 30, 2020 |  | June 30, 2019 |  | December 31, 2019
| (In thousands) |  |  |  |
Assets by Segment |  |  |  |  |
North America | $ | 620,900 |  |  | $ | 622,614 |  |  | $ | 569,819 |
International | 520,189 |  |  | 677,958 |  |  | 721,251 |
American Girl | 48,192 |  |  | 42,681 |  |  | 35,004 |
| 1,189,281 |  |  | 1,343,253 |  |  | 1,326,074 |
Corporate and other | 163,813 |  |  | 134,839 |  |  | 105,789 |
Accounts receivable and inventories, net | $ | 1,353,094 |  |  | $ | 1,478,092 |  |  | $ | 1,431,863 |
The table below presents worldwide revenues by categories:
| For the Three Months Ended |  |  |  | For the Six Months Ended |  |
| June 30, 2020 |  | June 30, 2019 |  | June 30, 2020 |  | June 30, 2019
| (In thousands) |  |  |  |  |  |
Revenues by Categories |  |  |  |  |  |  |
Dolls | $ | 261,023 |  |  | $ | 273,405 |  |  | $ | 486,892 |  |  | $ | 526,291 |
Infant, Toddler, and Preschool | 199,824 |  |  | 251,996 |  |  | 340,144 |  |  | 445,622 |
Vehicles | 158,683 |  |  | 214,137 |  |  | 344,334 |  |  | 397,498 |
Action Figures, Building Sets, Games, and Other | 195,030 |  |  | 222,728 |  |  | 313,155 |  |  | 372,981 |
Gross sales | 814,560 |  |  | 962,266 |  |  | 1,484,525 |  |  | 1,742,392 |
Sales adjustments | (82,424) |  |  | (102,203) |  |  | (158,319) |  |  | (193,083) |
Net sales | $ | 732,136 |  |  | $ | 860,063 |  |  | $ | 1,326,206 |  |  | $ | 1,549,309 |
The table below presents supplemental disclosure of worldwide revenues:
| For the Three Months Ended |  |  |  | For the Six Months Ended |  |
| June 30, 2020 |  | June 30, 2019 |  | June 30, 2020 |  | June 30, 2019
| (In thousands) |  |  |  |  |  |
Revenues by Top 3 Power Brands |  |  |  |  |  |  |
Barbie | $ | 199,312 |  |  | $ | 186,531 |  |  | $ | 346,797 |  |  | $ | 350,009 |
Hot Wheels | 136,479 |  |  | 175,199 |  |  | 295,097 |  |  | 325,735 |
Fisher-Price and Thomas & Friends | 176,259 |  |  | 222,409 |  |  | 305,009 |  |  | 394,807 |
Other | 302,510 |  |  | 378,127 |  |  | 537,622 |  |  | 671,841 |
Gross sales | 814,560 |  |  | 962,266 |  |  | 1,484,525 |  |  | 1,742,392 |
Sales adjustments | (82,424) |  |  | (102,203) |  |  | (158,319) |  |  | (193,083) |
Net sales | $ | 732,136 |  |  | $ | 860,063 |  |  | $ | 1,326,206 |  |  | $ | 1,549,309 |
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 Six Months Ended |  |
| June 30, 2020 |  | June 30, 2019 |  | June 30, 2020 |  | June 30, 2019
| (In thousands) |  |  |  |  |  |
Revenues by Geographic Area |  |  |  |  |  |  |
North America | $ | 490,616 |  |  | $ | 481,759 |  |  | $ | 834,461 |  |  | $ | 896,707 |
International |  |  |  |  |  |  |
EMEA | 184,018 |  |  | 234,107 |  |  | 399,305 |  |  | 450,456 |
Latin America | 67,690 |  |  | 141,310 |  |  | 127,351 |  |  | 216,560 |
Asia Pacific | 72,236 |  |  | 105,090 |  |  | 123,408 |  |  | 178,669 |
Total International | 323,944 |  |  | 480,507 |  |  | 650,064 |  |  | 845,685 |
Gross sales | 814,560 |  |  | 962,266 |  |  | 1,484,525 |  |  | 1,742,392 |
Sales adjustments | (82,424) |  |  | (102,203) |  |  | (158,319) |  |  | (193,083) |
Net sales | $ | 732,136 |  |  | $ | 860,063 |  |  | $ | 1,326,206 |  |  | $ | 1,549,309 |

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://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -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