Foreign Currency Transaction Exposure

3 Months Ended

Mar. 31, 2021

Currency exchange rate fluctuations may impact Mattel's results of operations and cash flows. Mattel's currency transaction exposures include gains and losses realized on unhedged inventory purchases and unhedged receivables and payables balances that are denominated in a currency other than the applicable functional currency. Gains and losses on unhedged inventory purchases and other transactions associated with operating activities are recorded in the components of operating income (loss) in the consolidated statements of operations. Gains and losses on unhedged intercompany loans and advances are recorded as a component of other non-operating (income) expense, net in the consolidated statements of operations in the period in which the currency exchange rate changes. Inventory transactions denominated in the Euro, Mexican peso, Australian dollar, British pound sterling, Canadian dollar, Russian ruble, and Brazilian real were the primary transactions that caused foreign currency transaction exposure for Mattel during the three months ended March 31, 2021.

Currency transaction gains (losses) included in the consolidated statements of operations are as follows:


	For the Three Months Ended
	March 31, 2021		March 31, 2020		Statements of Operations Classification
	(In thousands)
Currency transaction (losses) gains	$	(13,791)	$	224	Operating income/loss
Currency transaction (losses)	(3,308)		(832)		Other non-operating income/expense, net
Currency transaction (losses), net	$	(17,099)	$	(608)