Goodwill and Other Intangibles

12 Months Ended

Dec. 31, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill is allocated to various reporting units, which are at the operating segment level, for the purpose of evaluating whether goodwill is impaired. Mattel’s reporting units are: (i) North America, (ii) International, and (iii) American Girl. Components of the operating segments have been aggregated into a single reporting unit as the components have similar economic characteristics. The similar economic characteristics include the nature of the products, the nature of the production processes, the customers, and the manner in which the products are distributed.

The change in the carrying amount of goodwill by operating segment for 2020 and 2019 is shown below. Brand-specific goodwill held by foreign subsidiaries is allocated to the North America operating segment selling those brands, thereby causing a foreign currency translation impact.


	North America		International		American Girl		Total
	(In thousands)
Balance at December 31, 2018	$	731,234	$	447,619	$	207,571	$	1,386,424

Currency exchange rate impact	1,196		3,094		—		4,290
Balance at December 31, 2019	732,430		450,713		207,571		1,390,714
Currency exchange rate impact	971		2,149		—		3,120
Balance at December 31, 2020	$	733,401	$	452,862	$	207,571	$	1,393,834

In the third quarter of 2020, Mattel performed its annual impairment test and determined that goodwill was not impaired since each reporting unit's fair value exceeded its carrying value.

Other Intangibles

Identifiable intangibles were $518.2 million, net of accumulated amortization of $286.9 million, and $553.1 million, net of accumulated amortization of $248.0 million, as of December 31, 2020 and 2019, respectively. The estimated future amortization expense for the next five years is as follows:


	Amortization Expense
	(In thousands)
2021	$	37,468
2022	38,144
2023	38,891
2024	32,715
2025	32,654

Mattel tests its amortizable intangible assets for impairment whenever events or changes in circumstances indicate that the carrying value of the asset may not be recoverable. Mattel's amortizable intangible assets primarily consist of trademarks. During 2020 and 2019, Mattel's amortizable intangible assets were not impaired. During 2018, Mattel discontinued the use of certain brands and products, which resulted in asset impairments of $4.3 million.