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Seasonal Financing and Debt | 12 Months Ended
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Dec. 31, 2024
Debt Disclosure [Abstract] |
Seasonal Financing and Debt | Seasonal Financing and Debt Seasonal Financing On July 15, 2024, Mattel entered into a revolving credit agreement (the "Credit Agreement"), among Mattel, as the borrower, Bank of America, N.A., as administrative agent, and the other lenders and financial institutions party thereto, providing for $1.40 billion in aggregate principal amount of senior unsecured revolving credit facilities (the "Credit Facility"). The Credit Facility matures on July 15, 2029. In connection with the Credit Facility, Mattel terminated the commitments and satisfied all outstanding obligations under Mattel's prior revolving credit agreement, dated as of September 15, 2022 (as amended), among Mattel, as the borrower, Bank of America, N.A., as administrative agent, and the other lenders and financial institutions party thereto, which provided for a senior secured revolving credit facility in an aggregate principal amount of $1.40 billion. Borrowings under the Credit Facility bear interest at a floating rate, which for U.S. Dollar-denominated loans can be, at Mattel's option, either (a) Term SOFR (as defined in the Credit Agreement), plus an applicable margin ranging from 0.875% to 1.375% per annum, or (b) Base Rate (as defined in the Credit Agreement), plus an applicable margin ranging from 0.000% to 0.375% per annum, in each case, such applicable margins to be determined based on Mattel's debt rating. In addition to paying interest on the outstanding principal under the Credit Facility, Mattel is required to pay (i) an unused line fee per annum of the average daily unused portion of the Credit Facility, (ii) a letter of credit fronting fee based on a percentage of the aggregate face amount of outstanding letters of credit, and (iii) certain other customary fees and expenses of the lenders and agents. The Credit Agreement contains customary covenants, including, but not limited to, (a) restrictions on Mattel's and its subsidiaries' ability to merge and consolidate with other companies, dispose of all or substantially all assets, incur indebtedness, or grant liens or other security interests on assets, in each case, subject to certain customary exceptions and (b) the requirement that the obligations of Mattel under the Credit Facility be guaranteed by any existing or future direct or indirect domestic subsidiary of Mattel that guarantees other indebtedness of Mattel in an aggregate principal or committed amount in excess of $50 million, subject to certain customary exceptions. As of December 31, 2024, no subsidiaries of Mattel were required to guarantee the Credit Facility. The Credit Agreement requires the maintenance of (a) an interest coverage ratio of not less than 2.75 to 1.00 as of the end of each fiscal quarter and (b) a total leverage ratio as of the end of each fiscal quarter, not to exceed (x) 3.75 to 1.00 with respect to fiscal quarters ending on March 31, June 30 and December 31 of each year, and (y) 4.00 to 1.00 with respect to fiscal quarters ending on September 30 of each year. The total leverage ratio financial covenant is subject to a step-up to 4.25 to 1.00, with respect to fiscal quarters in which certain material acquisitions are consummated, and for a period of four fiscal quarters thereafter, and subject to certain customary exceptions. As of December 31, 2024 and 2023, Mattel had no borrowings outstanding under the Credit Facility and the prior credit facility, respectively. Outstanding letters of credit under the Credit Facility and the prior credit facility totaled approximately $9 million as of December 31, 2024 and 2023. To finance seasonal working capital requirements of certain foreign subsidiaries, Mattel avails itself of individual short-term credit lines. As of December 31, 2024, foreign credit lines totaled approximately $18 million. Mattel expects to extend the majority of these credit lines throughout 2025. As of December 31, 2024, Mattel was in compliance with all covenants contained in the Credit Agreement. The Credit Agreement is a material agreement, and failure to comply with its covenants may result in an event of default under the terms of the Credit Facility. If Mattel were to default under the terms of the Credit Facility, its ability to meet its seasonal financing requirements could be adversely affected. Short-Term Borrowings As of December 31, 2024 and 2023, Mattel had no short-term borrowings outstanding. During 2024 and 2023, Mattel had no borrowings under the Credit Facility and prior credit facility, and no other short-term borrowings. Long-Term Debt Mattel's long-term debt consists of the following:
| Interest Rate |  | December 31, 2024 |  | December 31, 2023
|  |  | (In thousands)
2010 Senior Notes due October 2040 | 6.20 | % |  | $ | 250,000 |  |  | $ | 250,000 |
2011 Senior Notes due November 2041 | 5.45 | % |  | 300,000 |  |  | 300,000 |
2019 Senior Notes due December 2027 | 5.875 | % |  | 600,000 |  |  | 600,000 |
2021 Senior Notes due April 2026 | 3.375 | % |  | 600,000 |  |  | 600,000 |
2021 Senior Notes due April 2029 | 3.75 | % |  | 600,000 |  |  | 600,000 |
Debt issuance costs and debt discount |  |  | (15,649) |  |  | (20,014) |
|  |  | 2,334,351 |  |  | 2,329,986 |
Less: current portion |  |  | — |  |  | — |
Total long-term debt |  |  | $ | 2,334,351 |  |  | $ | 2,329,986 |
Mattel's 2019 Senior Notes due 2027 were issued pursuant to an indenture dated November 20, 2019, and its 2021 Senior Notes due 2026 and 2021 Senior Notes due 2029 were issued pursuant to an indenture dated March 19, 2021. These indentures contain covenants that limit Mattel's (and some of its subsidiaries') ability to, among other things: (i) incur additional debt or issue certain preferred shares; (ii) pay dividends on or make other distributions in respect of their capital stock or make other restricted payments; (iii) make investments in unrestricted subsidiaries; (iv) create liens; (v) enter into certain sale/leaseback transactions; (vi) merge or consolidate, or sell, transfer or otherwise dispose of substantially all of their assets; and (vii) designate future guarantors. The indentures also provided that certain of these covenants would be suspended if Mattel achieved a debt rating of BBB-, Baa3, and/or BBB- (or higher) from any two of S&P, Moody's, and Fitch, respectively, and no event of default has occurred. In 2024, Fitch changed Mattel's credit rating from BB+ to BBB- with a stable outlook, S&P changed Mattel's credit rating from BBB- to BBB with a stable outlook, and Moody's maintained Mattel's credit rating of Baa3 with a stable outlook. As a result of the current credit ratings and no events of default, the covenants limiting Mattel's ability to incur additional debt or issue certain preferred shares, pay dividends on or make other distributions in respect of its capital stock or make other restricted payments, and make investments in unrestricted subsidiaries, and certain provisions of the covenant limiting Mattel's ability to merge or consolidate, or sell, transfer or otherwise dispose of substantially all of its assets and designate future guarantors, are suspended. If Mattel ceases to have credit ratings of BBB-, Baa3, and/or BBB- (or higher) from any two of S&P, Moody's, and Fitch, respectively, Mattel will thereafter be subject to the suspended covenants with respect to future events. On December 30, 2022, Mattel used cash on hand to redeem and retire the $250 million aggregate principal amount of the 2013 Senior Notes due 2023. The aggregate principal amount of long-term debt maturing in the next five years and thereafter is as follows:
| 2010 Senior Notes |  | 2011 Senior Notes |  | 2019 Senior Notes |  | 2021 Senior Notes |  | Total
| (In thousands)
2025 | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
2026 | — |  |  | — |  |  | — |  |  | 600,000 |  |  | 600,000 |
2027 | — |  |  | — |  |  | 600,000 |  |  | — |  |  | 600,000 |
2028 | — |  |  | — |  |  | — |  |  | — |  |  | — |
2029 | — |  |  | — |  |  | — |  |  | 600,000 |  |  | 600,000 |
Thereafter | 250,000 |  |  | 300,000 |  |  | — |  |  | — |  |  | 550,000 |
| $ | 250,000 |  |  | $ | 300,000 |  |  | $ | 600,000 |  |  | $ | 1,200,000 |  |  | $ | 2,350,000 |

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