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Income Taxes
 12 Months Ended
Dec. 31, 2024
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
Consolidated pre-tax income consists of the following:
 For the Year Ended
 December 31,
2024		December 31,
2023		December 31,
2022
(In thousands)
U.S. operations$250,455 $150,361 $221,149 
Foreign operations372,050 315,043 283,186 
Consolidated pre-tax income excluding equity method investments$622,505 $465,404 $504,335 
The provision for current and deferred income taxes consists of the following:
 For the Year Ended
 December 31,
2024		December 31,
2023		December 31,
2022
 (In thousands)
Current
Federal$40,647 $8,256 $— 
State5,888 4,669 2,359 
Foreign76,562 79,843 62,278 
123,097 92,768 64,637 
Deferred
Federal(15,645)(24,711)55,805 
State(2,463)1,986 2,440 
Foreign637 199,432 12,969 
(17,471)176,707 71,214 
Provision for income taxes$105,626 $269,475 $135,851 
Deferred income taxes are provided principally for tax credit carryforwards, net operating loss carryforwards, interest expense, research and development expenses, employee compensation-related expenses, right-of-use assets, lease liabilities, and certain other reserves that are recognized in different years for financial statement and income tax reporting purposes. Mattel's deferred income tax assets (liabilities) are composed of the following:
 December 31,
2024		December 31,
2023
 (In thousands)
Tax credit carryforwards$20,007 $41,550 
Research and development expenses129,836 104,582 
Net operating loss carryforwards87,398 77,321 
Interest expense50,214 65,045 
Allowances and reserves127,473 116,148 
Deferred compensation71,880 63,458 
Postretirement benefits19,138 22,741 
Lease liabilities 83,301 81,604 
Other45,819 35,624 
Gross deferred income tax assets635,066 608,073 
Intangible assets(167,607)(167,336)
Right-of-use assets(75,266)(75,076)
Other(42,026)(37,259)
Gross deferred income tax liabilities(284,899)(279,671)
Deferred income tax asset valuation allowances(97,661)(85,352)
Net deferred income tax assets$252,506 $243,050 
Net deferred income tax assets are reported in the consolidated balance sheets as follows:
 December 31,
2024		December 31,
2023
 (In thousands)
Deferred income tax assets$296,862 $299,157 
Other noncurrent liabilities(44,356)(56,107)
$252,506 $243,050 
As of December 31, 2024, Mattel had U.S. federal and foreign loss carryforwards totaling $363.1 million and U.S. federal, state, and foreign tax credit carryforwards of $20.1 million, which excludes carryforwards that do not meet the threshold for recognition in the financial statements. Utilization of these loss and tax credit carryforwards is subject to annual limitations. Mattel's loss and tax credit carryforwards expire in the following periods:
Loss
Carryforward		Tax Credit
Carryforward
 (In thousands)
2025–2029$8,752 $— 
Thereafter41,481 3,607 
No expiration date312,897 16,473 
$363,130 $20,080 
In 2024, Mattel recognized a net income tax benefit of $34.8 million related to tax elections filed to amortize certain intangible assets transferred as part of Mattel's intra-group IP rights transfer and establishment of certain U.S. deferred tax assets.
In 2023, Mattel completed an intra-group transfer of certain IP rights, resulting in a net tax expense of $161.4 million related to the write-down of certain foreign deferred tax assets and establishment of certain U.S. deferred tax assets, resulting in a reduction in intangible deferred tax assets and deferred tax liabilities and an increase in research and development deferred tax assets.
Evaluating the need for and the amount of a valuation allowance for deferred tax assets often requires significant judgment and extensive analysis of all available evidence to determine whether it is more likely than not that these assets will be realizable. Mattel routinely assesses the positive and negative evidence for this realizability, including the evaluation of sustained profitability and three years of cumulative pretax income for each tax jurisdiction. Changes in the valuation allowances in 2022 primarily related to utilization and expiration of tax attributes and currency fluctuations. As of December 31, 2022, Mattel's valuation allowances on its U.S. federal and state deferred tax assets and foreign deferred tax assets were approximately $16 million and $74 million, respectively. Changes in the valuation allowances in 2023 primarily related to changes in assessment of the future realizability of certain deferred tax assets, utilization and expiration of tax attributes, and currency fluctuations. As of December 31, 2023, Mattel's valuation allowances on its U.S. federal and state deferred tax assets and foreign deferred tax assets were approximately $14 million and $71 million, respectively. Changes in the valuation allowances in 2024 primarily related to changes in assessment of the future realizability of certain deferred tax assets, utilization and expiration of tax attributes. As of December 31, 2024, Mattel's valuation allowances on its U.S. federal and state deferred tax assets and foreign deferred tax assets were approximately $12 million and $85 million, respectively. As of December 31, 2024 and 2023, Mattel has recorded net deferred tax assets of $252.5 million and $243.1 million, respectively.
Differences between the provision for income taxes at the U.S. federal statutory income tax rate and the provision in the consolidated statements of operations are as follows:
 For the Year Ended
 December 31,
2024		December 31,
2023		December 31,
2022
 (In thousands)
Provision at U.S. federal statutory rate$130,726 $97,735 $105,910 
Differences resulting from:
Changes in valuation allowances13,362 2,343 — 
Foreign earnings taxed at different rates, including foreign losses without benefit(9,111)(12,480)18,138 
Foreign-derived intangible income(8,006)(364)(1,261)
Tax related to pass-through income5,125 3,869 5,340 
Non deductible executive compensation5,941 7,248 5,141 
State and local taxes, net of U.S. federal benefit7,711 8,480 5,027 
Adjustments to previously accrued taxes5,553 9,943 (9,471)
Tax on undistributed earnings of foreign subsidiaries1,100 (1,000)10,600 
Research and development tax credit (6,163)(7,248)(5,487)
Discrete tax impact related to intra-group IP transfer(34,762)161,388 — 
Other(5,850)(439)1,914 
Provision for income taxes$105,626 $269,475 $135,851 
In assessing whether uncertain tax positions should be recognized in its financial statements, Mattel first determines whether it is more likely than not that a tax position will be sustained upon examination, including resolution of any related appeals or litigation processes, based on the technical merits of the position. In evaluating whether a tax position has met the more likely than not recognition threshold, Mattel presumes that the position will be examined by the appropriate taxing authority that would have full knowledge of all relevant information. For tax positions that meet the more likely than not recognition threshold, Mattel measures the amount of benefit recognized in the financial statements at the largest amount of benefit that is greater than 50 percent likely of being realized upon ultimate settlement. Mattel recognizes unrecognized tax benefits in the first financial reporting period in which information becomes available indicating that such benefits will more likely than not be realized.
Mattel records a reserve for unrecognized tax benefits for U.S. federal, state, local, and foreign tax positions related primarily to transfer pricing, tax credits claimed, tax nexus, and apportionment. For each reporting period, management applies a consistent methodology to measure unrecognized tax benefits, and all unrecognized tax benefits are reviewed periodically and adjusted as circumstances warrant. Mattel's measurement of its reserve for unrecognized tax benefits is based on management's assessment of all relevant information, including prior audit experience, the status of audits, conclusions of tax audits, lapsing of applicable statutes of limitations, identification of new issues, and any administrative guidance or developments.
A reconciliation of the reserve for unrecognized tax benefits is as follows:
 For the Year Ended
 December 31,
2024		December 31,
2023		December 31,
2022
 (In thousands)
Unrecognized tax benefits at January 1$129,970 $114,057 $118,781 
Increases for positions taken in current year9,123 5,855 5,034 
Increases for positions taken in a prior year12,715 18,831 8,037 
Decreases for positions taken in a prior year(7,983)(4,841)(7,315)
Decreases for settlements with taxing authorities(2,940)(273)(1,236)
Decreases for lapses in the applicable statute of limitations(6,032)(3,659)(9,244)
Unrecognized tax benefits at December 31$134,853 $129,970 $114,057 
Of the $134.9 million of unrecognized tax benefits as of December 31, 2024, $107.7 million would impact the effective tax rate if recognized, $10.0 million would result in an increase in the valuation allowance, and $17.2 million would result in an offset with a non-current asset account.
Mattel recognized a net increase of interest and penalties of $1.7 million in 2024, a net increase of $1.5 million in 2023, and a net decrease of $5.3 million in 2022, related to unrecognized tax benefits, which are reflected in the provision for income taxes in the consolidated statements of operations. As of December 31, 2024, Mattel accrued $19.0 million in interest and penalties related to unrecognized tax benefits, all of which would impact the effective tax rate if recognized. As of December 31, 2023, Mattel accrued $17.3 million in interest and penalties related to unrecognized tax benefits, all of which would impact the effective tax rate if recognized. As of December 31, 2022, Mattel accrued $15.9 million in interest and penalties related to unrecognized tax benefits, all of which would impact the effective tax rate if recognized.
In the normal course of business, Mattel is regularly audited by U.S. federal, state, local and foreign tax authorities. Mattel remains subject to IRS examination for the 2021 through 2024 tax years. Mattel files multiple state and local income tax returns and remains subject to examination in various jurisdictions, including California for the 2019 through 2024 tax years and New York for the 2021 through 2024 tax years. Mattel files multiple foreign income tax returns and remains subject to examination in various foreign jurisdictions including Hong Kong for the 2018 through 2024 tax years, Mexico for the 2019 through 2024 tax years, Netherlands for the 2020 through 2024 tax years, and China for the 2020 through 2024 tax years. Based on the current status of U.S. federal, state, local, and foreign audits, Mattel believes it is reasonably possible that in the next 12 months, the total unrecognized tax benefits could decrease by $15.2 million related to the settlement of tax audits and/or the expiration of statutes of limitations. The ultimate settlement of certain issues with the applicable taxing authority could have a material impact on Mattel's consolidated financial statements.
Mattel has recorded a deferred tax liability of $22.1 million related to undistributed earnings of certain foreign subsidiaries of $0.56 billion as of December 31, 2024. During 2024, Mattel reported a distribution of foreign earnings to the United States for which taxes had been previously provided. Taxes have not been provided on approximately $1.16 billion of undistributed foreign U.S. GAAP retained earnings. The determination of any incremental tax liability associated with these earnings is not practicable due to the complexity of local country withholding rules and interactions with tax treaties, foreign exchange considerations, and the diversity of state income tax treatment on actual distribution. Mattel will remit reinvested earnings of its foreign subsidiaries for which a deferred tax liability has been recorded when Mattel determines that it is advantageous for business operations or cash management purposes.