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Revision for Immaterial Misstatements | 9 Months Ended
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Sep. 30, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract] |
Revision for Immaterial Misstatements | Revision for Immaterial Misstatements As disclosed in "Note 1 to the Consolidated Financial Statements—Basis of Presentation," during the quarter ended June 30, 2021, Mattel identified misstatements for inventory tooling expenses that should have first been capitalized into inventory and a misstatement related to the timing of disbursements for certain capital expenditures that resulted in a cash flow misclassification between operating activities and investing activities. Although Mattel concluded that these misstatements were not material, either individually or in aggregate, to its current or previously issued consolidated financial statements, Mattel elected to revise its previously issued consolidated financial statements to correct for these misstatements. In connection with such revision, Mattel is also correcting for other previously identified immaterial misstatements that were previously corrected for as out of period adjustments in the period of identification. Due to certain misstatements originating prior to 2018, the opening retained earnings balance as of January 1, 2018 was understated by $25.1 million, primarily due to the net impact of the tooling misstatement of $37.2 million, partially offset by other previously identified misstatements of $12.1 million. Such previously identified misstatements were previously corrected for as out of period adjustments and included the improper revenue recognition for certain licensing contracts executed prior to 2018 and the understatement of depreciation expense for certain fixed assets. Similarly, the opening retained earnings balance as of January 1, 2020 was understated by $16.9 million, which principally included the net impact of the tooling misstatement and an over-accrual of advertising costs. The revision also reflects the correction of previously identified balance sheet misclassifications, including a misclassification between property, plant and equipment and other assets associated with capitalized implementation costs for cloud computing software. The accompanying consolidated statements of cash flows have been revised to reflect the above items, inclusive of the cash flow misstatement between operating and investing activities related to capitalized implementation costs for cloud computing software and the timing of disbursements for capital expenditures. The revision to the accompanying unaudited consolidated balance sheets, consolidated statements of operations and comprehensive loss, and consolidated statements of cash flows are as follows. There were no changes to the consolidated statements of stockholders’ equity that have not otherwise been reflected in the consolidated balance sheets and consolidated statements of operations and comprehensive income (loss) as detailed in the tables below:
| As of September 30, 2020
| As Previously Reported |  | Adjustments |  | As Revised
| (In thousands)
Consolidated Balance Sheet |  |  |  |  |
Inventories | $ | 663,639 |  |  | $ | 15,843 |  |  | $ | 679,482 |
Total current assets | $ | 2,599,863 |  |  | $ | 15,843 |  |  | $ | 2,615,706 |
Property, plant, and equipment, net | $ | 497,437 |  |  | $ | (34,916) |  |  | $ | 462,521 |
Other noncurrent assets | $ | 828,438 |  |  | $ | 28,469 |  |  | $ | 856,907 |
Total Assets | $ | 5,604,095 |  |  | $ | 9,396 |  |  | $ | 5,613,491 |
Accrued liabilities | $ | 739,790 |  |  | $ | (9,000) |  |  | $ | 730,790 |
Total current liabilities | $ | 1,658,421 |  |  | $ | (9,000) |  |  | $ | 1,649,421 |
Other noncurrent liabilities | $ | 436,459 |  |  | $ | 3,100 |  |  | $ | 439,559 |
Total noncurrent liabilities | $ | 3,541,167 |  |  | $ | 3,100 |  |  | $ | 3,544,267 |
Retained earnings | $ | 1,409,262 |  |  | $ | 15,296 |  |  | $ | 1,424,558 |
Total stockholders' equity | $ | 404,507 |  |  | $ | 15,296 |  |  | $ | 419,803 |
| Three Months Ended September 30, 2020
| As Previously Reported |  | Adjustments |  | As Revised
| (In thousands, except per share amounts)
Consolidated Statement of Operations and Comprehensive Income |  |  |  |  |
Net Sales | $ | 1,631,691 |  |  | $ | 4,773 |  |  | $ | 1,636,464 |
Cost of sales | $ | 799,307 |  |  | $ | 9,429 |  |  | $ | 808,736 |
Gross profit | $ | 832,384 |  |  | $ | (4,656) |  |  | $ | 827,728 |
Operating Income | $ | 384,157 |  |  | $ | (4,656) |  |  | $ | 379,501 |
Income Before Income Taxes | $ | 332,870 |  |  | $ | (4,656) |  |  | $ | 328,214 |
Net Income | $ | 315,994 |  |  | $ | (4,656) |  |  | $ | 311,338 |
Comprehensive Income | $ | 307,717 |  |  | $ | (4,656) |  |  | $ | 303,061 |
Net Income Per Common Share - Basic | $ | 0.91 |  |  | $ | (0.01) |  |  | $ | 0.90 |
Net Income Per Common Share - Diluted | $ | 0.91 |  |  | $ | (0.02) |  |  | $ | 0.89 |
| Nine Months Ended September 30, 2020
| As Previously Reported |  | Adjustments |  | As Revised
| (In thousands, except per share amounts)
Consolidated Statement of Operations and Comprehensive Loss |  |  |  |  |
Net Sales | $ | 2,957,897 |  |  | $ | 4,773 |  |  | $ | 2,962,670 |
Cost of sales | $ | 1,549,482 |  |  | $ | 6,327 |  |  | $ | 1,555,809 |
Gross Profit | $ | 1,408,415 |  |  | $ | (1,554) |  |  | $ | 1,406,861 |
Operating Income | $ | 188,205 |  |  | $ | (1,554) |  |  | $ | 186,651 |
Income Before Income Taxes | $ | 35,747 |  |  | $ | (1,554) |  |  | $ | 34,193 |
Net Loss | $ | (3,919) |  |  | $ | (1,554) |  |  | $ | (5,473) |
Comprehensive Loss | $ | (120,309) |  |  | $ | (1,554) |  |  | $ | (121,863) |
Net Loss Per Common Share - Basic | $ | (0.01) |  |  | $ | (0.01) |  |  | $ | (0.02) |
Net Loss Per Common Share - Diluted | $ | (0.01) |  |  | $ | (0.01) |  |  | $ | (0.02) |
| Nine Months Ended September 30, 2020
| As Previously Reported |  | Adjustments |  | As Revised
| (In thousands)
Consolidated Statement of Cash Flows |  |  |  |  |
Net loss | $ | (3,919) |  |  | $ | (1,554) |  |  | $ | (5,473) |
Changes in assets and liabilities: |  |  |  |  |
Inventories | $ | (211,149) |  |  | $ | 6,327 |  |  | $ | (204,822) |
Prepaid expenses and other current assets | $ | 18,979 |  |  | $ | (25,700) |  |  | $ | (6,721) |
Accounts payable, accrued liabilities, and income taxes payable | $ | (40,082) |  |  | $ | (413) |  |  | $ | (40,495) |
Other, net | $ | (1,232) |  |  | $ | 13,307 |  |  | $ | 12,075 |
Net cash flows used for operating activities | $ | (433,977) |  |  | $ | (8,033) |  |  | $ | (442,010) |
Purchases of tools, dies, and molds | $ | (41,447) |  |  | $ | (924) |  |  | $ | (42,371) |
Purchases of other property, plant, and equipment | $ | (49,016) |  |  | $ | 8,957 |  |  | $ | (40,059) |
Net cash flows used for investing activities | $ | (115,162) |  |  | $ | 8,033 |  |  | $ | (107,129) |
| As of December 31, 2020
| As Previously Reported |  | Adjustments |  | As Revised
| (In thousands)
Consolidated Balance Sheet |  |  |  |  |
Inventories | $ | 514,673 |  |  | $ | 13,801 |  |  | $ | 528,474 |
Total current assets | $ | 2,482,890 |  |  | $ | 13,801 |  |  | $ | 2,496,691 |
Total Assets | $ | 5,521,089 |  |  | $ | 13,801 |  |  | $ | 5,534,890 |
Retained earnings | $ | 1,539,809 |  |  | $ | 13,801 |  |  | $ | 1,553,610 |
Total stockholders' equity | $ | 596,343 |  |  | $ | 13,801 |  |  | $ | 610,144 |

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