XML 31 R19.htm IDEA: XBRL DOCUMENT v3.25.3
Derivative Instruments
 9 Months Ended
Sep. 30, 2025
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, 2025, September 30, 2024, and December 31, 2024, Mattel held foreign currency forward exchange contracts and other commodity derivative instruments, with notional amounts of approximately $840 million, $748 million, and $628 million, respectively.
The following tables present Mattel's derivative assets and liabilities:
 Derivative Assets
 Balance Sheet ClassificationFair Value
September 30,
2025		September 30,
2024		December 31,
2024
(In thousands)
Derivatives Designated as Hedging Instruments:
Foreign currency forward exchange and other contractsPrepaid expenses and other current assets$1,802 $2,196 $17,290 
Foreign currency forward exchange and other contractsOther noncurrent assets65 34 2,775 
Total Derivatives Designated as Hedging Instruments$1,867 $2,230 $20,065 
Derivatives Not Designated as Hedging Instruments:
Foreign currency forward exchange and other contractsPrepaid expenses and other current assets$1,030 $1,251 $1,966 
Total Derivatives Not Designated as Hedging Instruments$1,030 $1,251 $1,966 
$2,897 $3,481 $22,031 
 Derivative Liabilities
 Balance Sheet ClassificationFair Value
 September 30,
2025		September 30,
2024		December 31,
2024
(In thousands)
Derivatives Designated as Hedging Instruments:
Foreign currency forward exchange and other contractsAccrued liabilities$20,735 $8,571 $1,370 
Foreign currency forward exchange and other contractsOther noncurrent liabilities4,129 2,026 65 
Total Derivatives Designated as Hedging Instruments$24,864 $10,597 $1,435 
Derivatives Not Designated as Hedging Instruments:
Foreign currency forward exchange and other contractsAccrued liabilities$1,254 $608 $902 
Total Derivatives Not Designated as Hedging Instruments$1,254 $608 $902 
$26,118 $11,205 $2,337 
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,
2025		September 30,
2024		Statements of
Operations
Classification
 (In thousands)
Foreign Currency Forward Exchange and Other Contracts:
Amount of gains (losses) recognized in OCI$3,332 $(13,288)
Amount of gains (losses) reclassified from accumulated OCI to the consolidated statements of operations1,159 (7,264)Cost of sales
Derivatives Designated as Hedging Instruments
For the Nine Months Ended
September 30,
2025		September 30,
2024		Statements of
Operations
Classification
(In thousands)
Foreign Currency Forward Exchange and Other Contracts:
Amount of (losses) gains recognized in OCI$(50,530)$9,764 
Amount of (losses) gains reclassified from accumulated OCI to consolidated statements of operations(12,117)7,057 Cost of sales
The net (losses) gains reclassified from accumulated other comprehensive loss to the consolidated statements of operations during the three and nine months ended September 30, 2025 and 2024 were offset by changes in cash flows associated with the underlying hedged transactions.
Derivatives Not Designated as Hedging Instruments
For the Three Months Ended
September 30,
2025		September 30,
2024		Statements of Operations
Classification
(In thousands)
Amount of Net (Losses) Gains Recognized in the Statements of Operations:
Foreign currency forward exchange and other contracts$(172)$1,845 Other non-operating income/expense, net
 Derivatives Not Designated as Hedging Instruments
For the Nine Months Ended
September 30,
2025		September 30,
2024		Statements of
Operations
Classification
 (In thousands)
Amount of Net Gains Recognized in the Statements of Operations:
Foreign currency forward exchange and other contracts$8,046 $2,195 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, 2025 and September 30, 2024, respectively, were offset by foreign currency transaction gains and losses on the related derivative balances.