Mattel's Optimizing for Growth program (the "OFG program") was a multi-year cost savings program that integrated and expanded upon the previously announced Capital Light program. In February 2023, the OFG program was expanded to include additional initiatives, including actions to further streamline Mattel's organizational structure.

Mattel has concluded the OFG program as of December 31, 2023. In connection with the OFG program, Mattel recorded severance and other restructuring costs in the following cost and expense categories within operating income in the consolidated statements of operations:


	For the Year Ended
	December 31, 2023		December 31, 2022		December 31, 2021
	(In thousands)
Cost of sales (a)	$	(1,276)	$	10,685	$	2,885
Other selling and administrative expenses (b)	32,302		23,592		32,266
	$	31,026	$	34,277	$	35,151

(a)Severance and other restructuring costs recorded within cost of sales in the consolidated statements of operations are included in segment operating income in "Note 14 to the Consolidated Financial Statements—Segment Information."

(b)Severance and other restructuring costs recorded within other selling and administrative expenses in the consolidated statements of operations are included in corporate and other expense in "Note 14 to the Consolidated Financial Statements—Segment Information."

The following tables summarize Mattel's severance and other restructuring charges activity within operating income related to the OFG program:


	Liability at December 31, 2022		Charges (a)		Payments/Utilization		Liability at December 31, 2023
	(In thousands)
Severance	$	9,355	$	22,030	$	(27,122)	$	4,263
Other restructuring charges	3,540		8,996		(12,077)		459
	$	12,895	$	31,026	$	(39,199)	$	4,722


	Liability at December 31, 2021		Charges (a)		Payments/Utilization		Liability at December 31, 2022
	(In thousands)
Severance	$	12,411	$	14,729	$	(17,785)	$	9,355
Other restructuring charges	2,834		19,548		(18,842)		3,540
	$	15,245	$	34,277	$	(36,627)	$	12,895

(a)Other restructuring charges consist primarily of expenses associated with the restructuring of commercial and corporate functions and consolidation of manufacturing facilities.

As of December 31, 2023, Mattel had recorded cumulative severance and other restructuring charges related to the OFG program, including previous actions taken under the Capital Light program, of approximately $196 million, which included approximately $73.0 million of non-cash charges, including $45.4 million recorded in non-operating expense, net, during 2022, related to the liquidation of Mattel's subsidiary in Argentina.

During 2021, in conjunction with the OFG program, Mattel completed the sale of a manufacturing plant based in Mexico, which included land and buildings, resulting in a pre-tax gain of $15.8 million.

On February 7, 2024, Mattel announced the Optimizing for Profitable Growth program, a multi-year cost savings program that follows the OFG program and is designed to achieve further efficiency and cost savings opportunities, primarily within Mattel's global supply chain, including its manufacturing footprint (the "OPG program"). The OPG program includes cost savings actions in connection with discontinuing production at a plant in China as previously announced in the third quarter of 2023, that were not included in the OFG program.

In connection with the OPG program, as of Decemeber 31, 2023, Mattel recorded $25.3 million of severance costs within other selling and administrative expense in the consolidated statements of operations and is included in corporate and other expense in "Note 14 to the Consolidated Financial Statements—Segment Information."

The following table summarizes Mattel's severance charges activity related to the OPG program for the year ended December 31, 2023:


	Liability at December 31, 2022		Charges		Payments/Utilization		Liability at December 31, 2023
	(In thousands)
Severance	$	—	$	25,296	$	(200)	$	25,096

As of December 31, 2023, Mattel expects to incur total cash expenditures under the OPG program of approximately $130 to $165 million and non-cash charges of up to $5 million.

In 2023, Mattel executed other cost savings actions not included in the OFG program or the OPG program to streamline its organizational structure. In connection with these actions, Mattel recorded severance expense of $3.4 million within other selling and administrative expenses in the consolidated statement of operations.