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Derivative Instruments | 6 Months Ended
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Jun. 30, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Derivative Instruments | Derivative InstrumentsMattel seeks to mitigate its exposure to foreign currency transaction risk by monitoring its foreign currency transaction exposure for the year and partially hedging such exposure using foreign currency forward exchange contracts. Mattel uses foreign currency forward exchange contracts as cash flow hedges primarily to hedge its purchases and sales of inventory denominated in foreign currencies. These contracts generally have maturity dates of up to 24 months. These derivative instruments have been designated as effective cash flow hedges, whereby the unsettled hedges are reported in Mattel's consolidated balance sheets at fair value, with changes in the fair value of the hedges reflected in other comprehensive income (loss) ("OCI"). Realized gains and losses for these contracts are recorded in the consolidated statements of operations in the period in which the inventory is sold to customers. Mattel uses foreign currency forward exchange contracts to hedge intercompany loans and advances denominated in foreign currencies. Due to the short-term nature of the contracts involved, Mattel does not use hedge accounting for these contracts, and as such, changes in fair value are recorded in the period of change in the consolidated statements of operations. Mattel utilizes derivative contracts to hedge certain purchases of commodities, which were not material. As of June 30, 2022, June 30, 2021, and December 31, 2021, Mattel held foreign currency forward exchange contracts and other commodity derivative instruments, with notional amounts of approximately $872 million, $1.29 billion, and $925 million, respectively. The following tables present Mattel's derivative assets and liabilities:
| Derivative Assets
| Balance Sheet Classification |  | Fair Value
|  | June 30, 2022 |  | June 30, 2021 |  | December 31, 2021
|  |  | (In thousands)
Derivatives designated as hedging instruments |  |  |  |  |  |  |
Foreign currency forward exchange and other contracts | Prepaid expenses and other current assets |  | $ | 31,145 |  |  | $ | 5,405 |  |  | $ | 13,361 |
Foreign currency forward exchange and other contracts | Other noncurrent assets |  | 6,383 |  |  | 1,774 |  |  | 1,000 |
Total derivatives designated as hedging instruments |  |  | $ | 37,528 |  |  | $ | 7,179 |  |  | $ | 14,361 |
Derivatives not designated as hedging instruments |  |  |  |  |  |  |
Foreign currency forward exchange and other contracts | Prepaid expenses and other current assets |  | $ | 6,654 |  |  | $ | 1,624 |  |  | $ | 3,714 |
|  |  | $ | 44,182 |  |  | $ | 8,803 |  |  | $ | 18,075 |
| Derivative Liabilities
| Balance Sheet Classification |  | Fair Value
|  | June 30, 2022 |  | June 30, 2021 |  | December 31, 2021
|  |  | (In thousands)
Derivatives designated as hedging instruments |  |  |  |  |  |  |
Foreign currency forward exchange and other contracts | Accrued liabilities |  | $ | 1,132 |  |  | $ | 10,774 |  |  | $ | 2,301 |
Foreign currency forward exchange and other contracts | Other noncurrent liabilities |  | 107 |  |  | 270 |  |  | 280 |
Total derivatives designated as hedging instruments |  |  | $ | 1,239 |  |  | $ | 11,044 |  |  | $ | 2,581 |
Derivatives not designated as hedging instruments |  |  |  |  |  |  |
Foreign currency forward exchange and other contracts | Accrued liabilities |  | $ | 897 |  |  | $ | 5,187 |  |  | $ | 1,229 |
|  |  | $ | 2,136 |  |  | $ | 16,231 |  |  | $ | 3,810 |
The following tables present the classification and amount of gains and losses, net of tax, from derivatives reported in the consolidated statements of operations:
| Derivatives Designated As Hedging Instruments |  |
| For the Three Months Ended |  |
| June 30, 2022 |  | June 30, 2021 |  | Statements of Operations Classification
| (In thousands) |  |
Foreign currency forward exchange contracts: |  |  |  |  |
Amount of gains (losses) recognized in OCI | $ | 26,425 |  |  | $ | (771) |  |  |
Amount of gains (losses) reclassified from accumulated OCI to consolidated statements of operations | 7,998 |  |  | (2,060) |  |  | Cost of sales
| Derivatives Designated As Hedging Instruments |  |
| For the Six Months Ended |  |
| June 30, 2022 |  | June 30, 2021 |  | Statements of Operations Classification
| (In thousands) |
Foreign currency forward exchange contracts: |  |  |  |  |
Amount of gains recognized in OCI | $ | 33,889 |  |  | $ | 9,331 |  |  |
Amount of gains reclassified from accumulated OCI to consolidated statements of operations | 9,355 |  |  | 671 |  |  | Cost of sales
The net gains reclassified from accumulated other comprehensive loss to the consolidated statements of operations during the three and six months ended June 30, 2022 and 2021, respectively, were offset by the changes in cash flows associated with the underlying hedged transactions.
| Derivatives Not Designated As Hedging Instruments |  |
| For the Three Months Ended |  |
| June 30, 2022 |  | June 30, 2021 |  | Statements of Operations Classification
| (In thousands) |  |
Amount of net gains recognized in the Statements of Operations |  |  |  |  |
Foreign currency forward exchange and other contract gains | $ | 10,954 |  |  | $ | 7,673 |  |  | Other non-operating expense (income), net
Foreign currency forward exchange and other contract gains | — |  |  | — |  |  | Cost of sales
| $ | 10,954 |  |  | $ | 7,673 |  |  |
| Derivatives Not Designated As Hedging Instruments |  |
| For the Six Months Ended |  |
| June 30, 2022 |  | June 30, 2021 |  | Statements of Operations Classification
| (In thousands) |  |
Amount of net gains (losses) recognized in the Statements of Operations |  |  |  |  |
Foreign currency forward exchange and other contract gains (losses) | $ | 3,121 |  |  | $ | (963) |  |  | Other non-operating expense (income), net
Foreign currency forward exchange and other contract gains | — |  |  | 639 |  |  | Cost of sales
| $ | 3,121 |  |  | $ | (324) |  |  |
The net gains (losses) recognized in the consolidated statements of operations during the three and six months ended June 30, 2022 and June 30, 2021, respectively, were partially offset by foreign currency transaction gains and losses on the related derivative balances.

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- Definition The entire disclosure for derivative instruments and hedging activities including, but not limited to, risk management strategies, non-hedging derivative instruments, assets, liabilities, revenue and expenses, and methodologies and assumptions used in determining the amounts. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -URI https://asc.fasb.org/topic&trid=2229140 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 40 -Section 50 -Paragraph 5 -Subparagraph (f) -URI https://asc.fasb.org/extlink&oid=126731327&loc=d3e90205-114008 + Details
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