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Derivative Instruments | 9 Months Ended
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Sep. 30, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Derivative Instruments | Derivative Instruments Mattel 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 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 ("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 September 30, 2024, September 30, 2023, and December 31, 2023, Mattel held foreign currency forward exchange contracts and other commodity derivative instruments, with notional amounts of approximately $748 million, $636 million, and $609 million, respectively. The following tables present Mattel's derivative assets and liabilities:
| Derivative Assets
| Balance Sheet Classification |  | Fair Value
|  | September 30, 2024 |  | September 30, 2023 |  | December 31, 2023
|  |  | (In thousands)
Derivatives Designated as Hedging Instruments: |  |  |  |  |  |  |
Foreign currency forward exchange and other contracts | Prepaid expenses and other current assets |  | $ | 2,196 |  |  | $ | 13,308 |  |  | $ | 2,198 |
Foreign currency forward exchange and other contracts | Other noncurrent assets |  | 34 |  |  | 747 |  |  | 52 |
Total Derivatives Designated as Hedging Instruments |  |  | $ | 2,230 |  |  | $ | 14,055 |  |  | $ | 2,250 |
Derivatives Not Designated as Hedging Instruments: |  |  |  |  |  |  |
Foreign currency forward exchange and other contracts | Prepaid expenses and other current assets |  | $ | 1,251 |  |  | $ | 519 |  |  | $ | 578 |
Total Derivatives Not Designated as Hedging Instruments |  |  | $ | 1,251 |  |  | $ | 519 |  |  | $ | 578 |
|  |  | $ | 3,481 |  |  | $ | 14,574 |  |  | $ | 2,828 |
| Derivative Liabilities
| Balance Sheet Classification |  | Fair Value
|  | September 30, 2024 |  | September 30, 2023 |  | December 31, 2023
|  |  | (In thousands)
Derivatives Designated as Hedging Instruments: |  |  |  |  |  |  |
Foreign currency forward exchange and other contracts | Accrued liabilities |  | $ | 8,571 |  |  | $ | 1,997 |  |  | $ | 7,520 |
Foreign currency forward exchange and other contracts | Other noncurrent liabilities |  | 2,026 |  |  | 14 |  |  | 1,575 |
Total Derivatives Designated as Hedging Instruments |  |  | $ | 10,597 |  |  | $ | 2,011 |  |  | $ | 9,095 |
Derivatives Not Designated as Hedging Instruments: |  |  |  |  |  |  |
Foreign currency forward exchange and other contracts | Accrued liabilities |  | $ | 608 |  |  | $ | 323 |  |  | $ | 449 |
Foreign currency forward exchange and other contracts | Other noncurrent liabilities |  | — |  |  | — |  |  | 20 |
Total Derivatives Not Designated as Hedging Instruments |  |  | $ | 608 |  |  | $ | 323 |  |  | $ | 469 |
|  |  | $ | 11,205 |  |  | $ | 2,334 |  |  | $ | 9,564 |
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 |  |
| September 30, 2024 |  | September 30, 2023 |  | Statements of Operations Classification
| (In thousands) |  |
Foreign Currency Forward Exchange and Other Contracts: |  |  |  |  |
Amount of (losses) gains recognized in OCI | $ | (13,288) |  |  | $ | 7,521 |  |  |
Amount of (losses) gains reclassified from accumulated OCI to the consolidated statements of operations | (7,264) |  |  | 5,801 |  |  | Cost of sales
| Derivatives Designated as Hedging Instruments
| For the Nine Months Ended |  |
| September 30, 2024 |  | September 30, 2023 |  | Statements of Operations Classification
| (In thousands) |  |
Foreign Currency Forward Exchange and Other Contracts: |  |  |  |  |
Amount of gains (losses) recognized in OCI | $ | 9,764 |  |  | $ | (1,729) |  |  |
Amount of gains reclassified from accumulated OCI to the consolidated statements of operations | 7,057 |  |  | 14,062 |  |  | Cost of sales
The net gains reclassified from accumulated other comprehensive loss to the consolidated statements of operations during the three and nine months ended September 30, 2024 and 2023, respectively, were offset by changes in cash flows associated with the underlying hedged transactions.
| Derivatives Not Designated as Hedging Instruments
| For the Three Months Ended |  |
| September 30, 2024 |  | September 30, 2023 |  | Statements of Operations Classification
| (In thousands) |  |
Amount of Net Gains (Losses) Recognized in the Statements of Operations: |  |  |  |  |
Foreign currency forward exchange and other contracts | $ | 1,845 |  |  | $ | 6,805 |  |  | Other non-operating income/expense, net
| Derivatives Not Designated as Hedging Instruments
| For the Nine Months Ended |  |
| September 30, 2024 |  | September 30, 2023 |  | Statements of Operations Classification
| (In thousands) |  |
Amount of Net Gains (Losses) Recognized in the Statements of Operations: |  |  |  |  |
Foreign currency forward exchange and other contracts | $ | 2,195 |  |  | $ | 25,083 |  |  | Other non-operating income/expense, net
The net gains and losses recognized in the consolidated statements of operations during the three and nine months ended September 30, 2024 and September 30, 2023, respectively, were 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://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 40 -Name Accounting Standards Codification -Section 50 -Paragraph 5 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480237/815-40-50-5 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 5C -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-5C Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 815 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/815/tableOfContent + Details
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