XML 27 R15.htm IDEA: XBRL DOCUMENT
v3.22.0.1

Leases | 12 Months Ended
--- | ---
Dec. 31, 2021
Leases [Abstract] |
Leases | Leases Mattel routinely enters into noncancelable lease agreements primarily for premises and equipment used in the normal course of business. Certain of these leases include escalation clauses that adjust rental expense to reflect changes in price indices, as well as renewal and termination options. Mattel adopted the new lease standard on January 1, 2019 using the modified retrospective transition method. Prior periods were not retrospectively adjusted. Mattel elected the package of practical expedients, permitted under the transition guidance within the new lease standard, which among other things, allowed Mattel to continue to account for existing leases based on the historical lease classification. Mattel also elected the practical expedients to exclude right-of-use assets and lease liabilities for leases with an initial term of 12 months or less from the balance sheet, and to combine lease and non-lease components for property leases, which primarily relate to ancillary expenses such as common area maintenance charges and management fees. Mattel determines if an arrangement is a lease at inception by assessing whether it conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Mattel's leases have remaining lease terms of up to 11 years, and often include one or more options to renew for up to 10 years. Renewal and termination options are included in the lease term when it is reasonably certain that Mattel will exercise the option. In addition, certain of Mattel's lease agreements, primarily related to American Girl leases, include contingent rental payments based on a percentage of sales. Contingent rental expense is recorded in the period in which the contingent event becomes probable. During 2021, 2020, and 2019, contingent rental expense was not material, Mattel's lease agreements do not contain any material residual guarantees or material restrictive covenants. Right-of-use assets and lease liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. As substantially all of Mattel's leases do not provide an implicit rate, Mattel uses its incremental borrowing rate, based on the information available at the lease commencement date, to determine the present value of lease payments. Operating lease costs are recognized on a straight-line basis over the lease term. The following table summarize Mattel's right-of-use assets and liabilities and other information about its leases:
| December 31, 2021 |  | December 31, 2020
| (In thousands, except years and percentage information)
Right-of-use assets, net | $ | 325,484 |  |  | $ | 291,601 |
Accrued liabilities | $ | 73,752 |  |  | $ | 79,540 |
Noncurrent lease liabilities | 283,626 |  |  | 249,353 |
Total lease liabilities | $ | 357,378 |  |  | $ | 328,893 |
Weighted-average remaining lease term | 6.1 years |  | 6.6 years
Weighted-average discount rate | 6.5 | % |  | 7.6 | %
The components of lease costs for the years ended December 31, 2021, 2020, and 2019 are as follows:
| For the Year Ended
| December 31, 2021 |  | December 31, 2020 |  | December 31, 2019
| (In thousands)
Lease costs (a) | $ | 134,272 |  |  | $ | 136,842 |  |  | $ | 142,100 |
Sublease rental income | $ | 2,077 |  |  | $ | 2,697 |  |  | $ | 5,690 |
(a) Includes short-term and variable lease costs of approximately $39 million, $42 million, and $44 million for 2021, 2020, and 2019 respectively. Variable lease costs primarily relate to common area maintenance charges, management fees, taxes and storage fees. Supplemental information related to leases are as follows:
| For the Year Ended
| December 31, 2021 |  | December 31, 2020 |  | December 31, 2019
| (In thousands)
Cash payments for leases | $ | 100,286 |  |  | $ | 96,953 |  |  | $ | 105,015 |
Right-of-use assets obtained in exchange for new and modified lease liabilities | $ | 105,898 |  |  | $ | 53,753 |  |  | $ | 29,389 |
The following table shows the future maturities of lease liabilities for leases in effect as of December 31, 2021:
Years Ending December 31, |  | Lease Liabilities
|  | (In thousands)
2022 |  | $ | 92,254 |
2023 |  | 79,785 |
2024 |  | 67,293 |
2025 |  | 57,103 |
2026 |  | 45,331 |
Thereafter |  | 96,167 |
|  | 437,933 |
Less: imputed interest |  | (80,555) |
|  | $ | 357,378 |

X
- References No definition available. + Details
Name: | us-gaap_LeasesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=77888251 + Details
Name: | us-gaap_LesseeOperatingLeasesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration