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Document and Entity Information - shares	9 Months Ended
Document and Entity Information - shares	Sep. 30, 2018	Oct. 12, 2018
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2018
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	Q3
Trading Symbol	MAT
Entity Registrant Name	MATTEL INC /DE/
Entity Central Index Key	0000063276
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Emerging Growth Company	false
Small Business	false
Entity Common Stock, Shares Outstanding		345,150,787

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017	Sep. 30, 2017
Current Assets
Cash and equivalents	$ 209,150	$ 1,079,221	$ 181,308
Accounts receivable, net	1,312,932	1,128,610	1,506,145
Inventories	726,012	600,704	989,995
Prepaid expenses and other current assets	287,042	303,053	352,711
Total current assets	2,535,136	3,111,588	3,030,159
Noncurrent Assets
Property, plant, and equipment, net	677,030	785,285	821,228
Goodwill	1,388,883	1,396,669	1,397,642
Other noncurrent assets	880,796	944,961	950,655
Total Assets	5,481,845	6,238,503	6,199,684
Current Liabilities
Short-term borrowings	275,000	0	732,649
Current portion of long-term debt	0	250,000	250,000
Accounts payable	529,720	572,166	713,488
Accrued liabilities	683,470	792,139	568,845
Income taxes payable	5,813	9,498	32,296
Total current liabilities	1,494,003	1,623,803	2,297,278
Noncurrent Liabilities
Long-term debt	2,849,922	2,873,119	1,886,404
Other noncurrent liabilities	471,510	484,126	576,327
Total noncurrent liabilities	3,321,432	3,357,245	2,462,731
Stockholders’ Equity
Common stock $1.00 par value, 1.0 billion shares authorized; 441.4 million shares issued	441,369	441,369	441,369
Additional paid-in capital	1,802,556	1,808,391	1,793,036
Treasury stock at cost: 96.2 million shares, 97.7 million shares, and 97.6 million shares, respectively	(2,356,836)	(2,389,877)	(2,392,422)
Retained earnings	1,614,343	2,179,358	2,460,224
Accumulated other comprehensive loss	(835,022)	(781,786)	(862,532)
Total stockholders’ equity	666,410	1,257,455	1,439,675
Total Liabilities and Stockholders’ Equity	$ 5,481,845	$ 6,238,503	$ 6,199,684

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Sep. 30, 2018	Dec. 31, 2017	Sep. 30, 2017
Statement of Financial Position [Abstract]
Common stock, par value (USD per share)	$ 1.00	$ 1.00	$ 1.00
Common stock authorized (shares)	1,000,000,000	1,000,000,000	1,000,000,000
Common stock issued (shares)	441,400,000	441,400,000	441,400,000
Treasury stock (shares)	96,200,000	97,600,000	97,700,000

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Income Statement [Abstract]
Net Sales	$ 1,437,451	$ 1,560,983	$ 2,986,571	$ 3,271,078
Cost of sales	824,395	913,834	1,901,440	1,945,386
Gross Profit	613,056	647,149	1,085,131	1,325,692
Advertising and promotion expenses	165,308	179,691	318,538	348,752
Other selling and administrative expenses	325,874	381,214	1,110,491	1,065,339
Operating Income (Loss)	121,874	86,244	(343,898)	(88,399)
Interest expense	48,156	24,646	132,702	68,557
Interest (income)	(785)	(1,575)	(5,631)	(6,337)
Other non-operating expense, net	1,911	1,910	4,366	7,532
Income (Loss) Before Income Taxes	72,592	61,263	(475,335)	(158,151)
Provision for income taxes	66,314	664,510	70,571	614,402
Net Income (Loss)	$ 6,278	$ (603,247)	$ (545,906)	$ (772,553)
Net Income (Loss) Per Common Share—Basic (USD per share)	$ 0.02	$ (1.75)	$ (1.58)	$ (2.25)
Weighted average number of common shares	345,285	343,870	344,774	343,304
Net Income (Loss) Per Common Share—Diluted (USD per share)	$ 0.02	$ (1.75)	$ (1.58)	$ (2.25)
Weighted average number of common and potential common shares	345,672	343,870	344,774	343,304
Dividends Declared Per Common Share (USD per share)	$ 0	$ 0.15	$ 0	$ 0.91

CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Statement of Comprehensive Income [Abstract]
Net Income (Loss)	$ 6,278	$ (603,247)	$ (545,906)	$ (772,553)
Other Comprehensive (Loss) Income, Net of Tax
Currency translation adjustments	(17,132)	36,912	(80,870)	142,248
Defined benefit pension plan adjustments	1,762	1,106	4,447	3,185
Net unrealized gains (losses) on available-for-sale security	424	(3,848)	(2,365)	(7,585)
Net unrealized gains (losses) on derivative instruments:
Unrealized holding gains (losses)	3,215	(24,009)	15,548	(63,999)
Reclassification adjustment for realized gains included in net income (loss)	787	9,241	10,004	6,648
Net unrealized gains (losses) on derivative instruments	4,002	(14,768)	25,552	(57,351)
Other Comprehensive (Loss) Income, Net of Tax	(10,944)	19,402	(53,236)	80,497
Comprehensive Loss	$ (4,666)	$ (583,845)	$ (599,142)	$ (692,056)

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	9 Months Ended
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	Sep. 30, 2018	Sep. 30, 2017
Cash Flows From Operating Activities:
Net loss	$ (545,906,000)	$ (772,553,000)
Adjustments to reconcile net loss to net cash flows used for operating activities:
Depreciation	179,617,000	179,831,000
Amortization	29,925,000	16,264,000
Asset impairments	13,653,000	14,942,000
Deferred income taxes	1,435,000	2,057,000
Indefinite reinvestment assertion and U.S. Tax Reform	23,833,000	0
Valuation allowance on deferred tax assets	0	561,915,000
Share-based compensation	36,187,000	47,582,000
Bad debt expense	43,617,000	11,758,000
Inventory obsolescence	56,586,000	37,402,000
Decrease from changes in assets and liabilities, net of acquired assets and liabilities:
Accounts receivable	(255,781,000)	(367,579,000)
Inventories	(210,437,000)	(396,415,000)
Prepaid expenses and other current assets	9,250,000	(19,027,000)
Accounts payable, accrued liabilities, and income taxes payable	(107,601,000)	9,893,000
Other, net	(5,830,000)	(66,140,000)
Net cash flows used for operating activities	(731,452,000)	(740,070,000)
Cash Flows From Investing Activities:
Purchases of tools, dies, and molds	(58,187,000)	(101,428,000)
Purchases of other property, plant, and equipment	(52,945,000)	(133,895,000)
(Payments for) proceeds from foreign currency forward exchange contracts	(10,220,000)	60,376,000
Other, net	6,712,000	38,000
Net cash flows used for investing activities	(114,640,000)	(174,909,000)
Cash Flows From Financing Activities:
Payments of short-term borrowings, net	0	(878,937,000)
Proceeds from short-term borrowings, net	275,000,000	1,419,418,000
Payments of long-term borrowings	(750,000,000)	0
Proceeds from long-term borrowings, net	475,550,000	0
Payments of dividends on common stock	0	(311,973,000)
Proceeds from exercise of stock options	0	1,768,000
Other, net	(11,236,000)	(16,543,000)
Net cash flows (used for) provided by financing activities	(10,686,000)	213,733,000
Effect of Currency Exchange Rate Changes on Cash	(13,293,000)	13,023,000
Decrease in Cash and Equivalents	(870,071,000)	(688,223,000)
Cash and Equivalents at Beginning of Period	1,079,221,000	869,531,000
Cash and Equivalents at End of Period	$ 209,150,000	$ 181,308,000

Basis of Presentation	9 Months Ended
Basis of Presentation	Sep. 30, 2018
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The accompanying unaudited consolidated financial statements and related disclosures have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") applicable to interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. In the opinion of management, all adjustments, consisting of only those of a normal recurring nature, considered necessary for a fair statement of the financial position and interim results of Mattel, Inc. and its subsidiaries ("Mattel") as of and for the periods presented have been included. As Mattel’s business is seasonal, results for interim periods are not necessarily indicative of those that may be expected for a full year. Prior period amounts have been reclassified to conform to the current period presentation, as further discussed in "Note 16 to the Consolidated Financial Statements—Employee Benefit Plans" and "Note 23 to the Consolidated Financial Statements—Segment Information." The year-end balance sheet data was derived from audited financial statements; however, the accompanying interim notes to the consolidated financial statements do not include all the annual disclosures required by GAAP. The financial information included herein should be read in conjunction with Mattel’s consolidated financial statements and related notes in its 2017 Annual Report on Form 10-K.

Accounts Receivable	9 Months Ended
Accounts Receivable	Sep. 30, 2018
Receivables [Abstract]
Accounts Receivable	Accounts Receivable Accounts receivable are net of allowances for doubtful accounts of $23.4 million, $22.4 million, and $25.4 million as of September 30, 2018, September 30, 2017, and December 31, 2017, respectively. As a result of the Toys "R" Us liquidation in the first quarter of 2018, Mattel reversed net sales which occurred during the first quarter of 2018 and related accounts receivable of approximately $30 million. In addition, for the three and nine months ended September 30, 2018, Mattel recorded bad debt expense, net of approximately $(13) million and $37 million, respectively, related to outstanding Toys "R" Us receivables as of December 31, 2017. As a result of Toys "R" Us filing for bankruptcy in September 2017, Mattel reversed gross sales and accounts receivable of approximately $47 million and reversed net sales of approximately $43 million for the three and nine months ended September 30, 2017.

- Definition

The entire disclosure for claims held for amounts due a entity, excluding financing receivables. Examples include, but are not limited to, trade accounts receivables, notes receivables, loans receivables. Includes disclosure for allowance for credit losses.

+ References + Details

Inventories

9 Months Ended

Sep. 30, 2018

Inventory Disclosure [Abstract]

Inventories

Inventories include the following:



	September 30, 2018		September 30, 2017		December 31, 2017
	(In thousands)
Raw materials and work in process	$	129,088	$	130,895	$	101,690
Finished goods	596,924		859,100		499,014
	$	726,012	$	989,995	$	600,704

Property, Plant, and Equipment

9 Months Ended

Sep. 30, 2018

Property, Plant and Equipment [Abstract]

Property, Plant, and Equipment

Property, plant, and equipment, net includes the following:



	September 30, 2018			September 30, 2017			December 31, 2017
	(In thousands)
Land	$	25,064		$	25,045		$	25,114
Buildings	298,659			293,024			303,495
Machinery and equipment	873,574			933,967			902,861
Software	387,503			374,934			384,568
Tools, dies, and molds	864,089			923,752			887,442
Capital leases	23,927			23,970			24,279
Leasehold improvements	239,587			263,276			213,238
	2,712,403			2,837,968			2,740,997
Less: accumulated depreciation	(2,035,373		)	(2,016,740		)	(1,955,712		)
	$	677,030		$	821,228		$	785,285

Goodwill

9 Months Ended

Sep. 30, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill

Goodwill is allocated to various reporting units, which are at the operating segment level, for purposes of evaluating whether goodwill is impaired. Mattel’s reporting units are: (i) North America, (ii) International, and (iii) American Girl. Mattel tests its goodwill for impairment annually in the third quarter and whenever events or changes in circumstances indicate that the carrying value of a reporting unit may exceed its fair value.

In the third quarter of 2018, Mattel performed its annual impairment test and determined that goodwill was not impaired. The change in the carrying amount of goodwill by operating segment for the nine months ended September 30, 2018 is shown below. Brand-specific goodwill held by foreign subsidiaries is allocated to the North America and American Girl operating segments selling those brands, thereby causing a foreign currency translation impact for these operating segments. In the first quarter of 2018, Mattel sold certain assets related to its Corolle business and wrote off approximately $4 million of goodwill.



	December 31, 2017		Dispositions			Currency Exchange Rate Impact			September 30, 2018
	(In thousands)
North America	$	733,034	$	—		$	(1,159	)	$	731,875
International	452,152		—			(2,715		)	449,437
American Girl	211,483		(4,018		)	106			207,571
	$	1,396,669	$	(4,018	)	$	(3,768	)	$	1,388,883

Other Noncurrent Assets

9 Months Ended

Sep. 30, 2018

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

Other Noncurrent Assets

Other noncurrent assets include the following:



	September 30, 2018		September 30, 2017		December 31, 2017
	(In thousands)
Identifiable intangibles (net of amortization of $198.7 million, $166.7 million, and $168.8 million, respectively)	$	599,938	$	189,382	$	639,203
Deferred income taxes	75,590		75,660		76,750
Nonamortizable identifiable intangibles	—		462,398		—
Other	205,268		223,215		229,008
	$	880,796	$	950,655	$	944,961

Mattel tests nonamortizable intangible assets, including trademarks and trade names, for impairment annually in the third quarter and whenever events or changes in circumstances indicate that the carrying values may exceed the fair values. In the fourth quarter of 2017, Mattel concluded that a triggering event had occurred related to its remaining nonamortizable intangible asset and determined that it was not impaired, but that the intangible asset was no longer nonamortizable.

Mattel also tests its amortizable intangible assets for impairment whenever events or changes in circumstances indicate that the carrying value of the asset may not be recoverable. During the three months ended June 30, 2018, Mattel discontinued the use of certain brands and products, which resulted in $4.3 million of asset impairments. Mattel's remaining amortizable intangible assets were not impaired during the three and nine months ended September 30, 2018.

During the third quarter of 2017, Mattel established a valuation allowance on certain deferred tax assets, the benefits of which Mattel believes will likely not be realized. Refer to Part II, Item 8 "Financial Statements and Supplementary Data—Note 14 to the Consolidated Financial Statements—Income Taxes" in its 2017 Annual Report on Form 10-K for additional information.

Accrued Liabilities

9 Months Ended

Sep. 30, 2018

Payables and Accruals [Abstract]

Accrued Liabilities

Accrued liabilities include the following:



	September 30, 2018		September 30, 2017		December 31, 2017
	(In thousands)
Advertising and promotion	$	124,120	$	81,185	$	165,572
Royalties	92,998		90,968		111,669
Taxes other than income taxes	52,273		61,318		74,626
Other	414,079		335,374		440,272
	$	683,470	$	568,845	$	792,139

Seasonal Financing	9 Months Ended
Seasonal Financing	Sep. 30, 2018
Debt Disclosure [Abstract]
Seasonal Financing	Seasonal Financing On December 20, 2017, Mattel, Inc. and certain of its domestic subsidiaries ("U.S. Borrowers") and a Canadian subsidiary ("Canadian Borrower") entered into a syndicated facility agreement (as amended, the "Credit Agreement"), as borrowers thereunder, with Bank of America, N.A., as global administrative agent, collateral agent, Australian security trustee, and lender, and the other lenders and financial institutions party thereto, providing for $1.60 billion in aggregate principal amount of senior secured revolving credit facilities (the "senior secured revolving credit facilities"), consisting of an asset based lending facility, subject to borrowing base capacity, and a revolving credit facility secured by certain fixed assets and intellectual property of the U.S. Borrowers and certain equity interests in various subsidiaries of Mattel, subject to borrowing base capacity (the "Fixed Asset & IP Facility"). As of September 30, 2018, Mattel had outstanding borrowings under the senior secured revolving credit facilities of $275.0 million. There were no amounts outstanding as of December 31, 2017. On March 28, 2018 and March 29, 2018, Mattel, Inc. and certain of its subsidiaries entered into various foreign joinder agreements to the Credit Agreement. The foreign joinder agreements join the relevant foreign borrowers and foreign lenders to the Credit Agreement, as contemplated therein, making portions of the senior secured revolving credit facilities available to other subsidiaries of Mattel, Inc. such that, together with the initial entry into the Credit Agreement, the senior secured revolving credit facilities are available to certain subsidiaries of Mattel, Inc., in their capacity as borrowers, located in the following jurisdictions: (i) the United States (the "U.S. Borrowers"), (ii) Canada (the "Canadian Borrower"), (iii) Germany, the Netherlands and the United Kingdom (the "European (GNU) Borrowers"), (iv) Spain (the "Spanish Borrower"), (v) France (the "French Borrower"), and (vi) Australia (the "Australian Borrower"), in each case through subfacilities in each such jurisdiction (each, a "Subfacility"). Through the initial Credit Agreement and the foreign joinder agreements, certain additional domestic and foreign subsidiaries of Mattel, Inc. are also parties to the Credit Agreement as guarantors of various obligations of the borrowers under the Credit Agreement as further described below. On June 1, 2018, Mattel, Inc. entered into an amendment (the "Amendment") to the Credit Agreement. The Amendment amends certain terms of the Credit Agreement, including, but not limited to, the extension of the maturity date of the Credit Agreement (and the facilities and lending commitments thereunder) from December 20, 2020 to June 1, 2021. Borrowings under the senior secured revolving credit facilities (i) are limited by jurisdiction-specific borrowing base calculations based on the sum of specified percentages of eligible accounts receivable, eligible inventory and certain fixed assets and intellectual property, as applicable, minus the amount of any applicable reserves, and (ii) bear interest at a floating rate, which can be either, at the Borrower’s option, (a) an adjusted LIBOR rate plus an applicable margin ranging from 1.25% to 3.00% per annum or (b) an alternate base rate plus an applicable margin ranging from 0.25% to 2.00% per annum, in each case, such applicable margins to be determined based on the Borrower’s average borrowing availability remaining under the senior secured revolving credit facilities. In addition to paying interest on the outstanding principal under the senior secured revolving credit facilities, Mattel, Inc. is required to pay (i) an unused line fee per annum of the average daily unused portion of the senior secured revolving credit facilities; (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 U.S. Borrowers, as well as certain Mattel U.S. subsidiaries that are guarantors (the "U.S. Guarantors"), are guaranteeing the obligations of all Borrowers under the senior secured revolving credit facilities. Additionally, the obligations of the Canadian Borrower, the French Borrower, the Spanish Borrower, the European (GNU) Borrowers and the Australian Borrower (collectively, the "Foreign Borrowers"), are each guaranteed by the obligations of the other Foreign Borrowers, as well as additional foreign subsidiaries of Mattel, Inc. that are guarantors (the "Foreign Guarantors"). The U.S. Subfacility is secured by liens on substantially all of the U.S. Borrowers’ and the U.S. Guarantors’ accounts receivable and inventory (the "U.S. Current Assets Collateral"). The Canadian Subfacility, the French Subfacility, the Spanish Subfacility, the European (GNU) Subfacility and the Australian Subfacility are each secured by a first priority lien on (i) the accounts receivable and inventory of the applicable Foreign Borrower(s) and Foreign Guarantors under such facility, and (ii) the U.S. Current Assets Collateral. The Fixed Asset & IP Facility is secured by a first priority lien on certain owned real property in the U.S., certain U.S. trademarks and patents, and 100% of the equity interests in the U.S. Borrowers (aside from Mattel) and U.S. Guarantors, as well as 65% of the voting equity interests and 100% of the non-voting equity interests in Mattel Holdings Limited. The Fixed Asset & IP Facility is also secured by 65% of the voting equity interests of such additional Foreign Borrowers and Foreign Guarantors that are directly owned by a U.S. Borrower or U.S. Guarantor. The Credit Agreement contains customary covenants, including, but not limited to, restrictions on the Borrower’s and its subsidiaries’ ability to merge and consolidate with other companies, incur indebtedness, grant liens or security interests on assets, make acquisitions, loans, advances or investments, pay dividends, sell or otherwise transfer assets outside of the ordinary course, optionally prepay or modify terms of any junior indebtedness, enter into transactions with affiliates, or change their line of business. The Credit Agreement requires the maintenance of a fixed charge coverage ratio of 1.00 to 1.00 at the end of each fiscal quarter when excess availability under the senior secured revolving credit facilities is less than the greater of (x) $100 million and (y) 10% of the aggregate amount available thereunder (the "Availability Threshold") and on the last day of each subsequent fiscal quarter ending thereafter until no event of default exists and excess availability is greater than the Availability Threshold for at least 30 consecutive days. The fixed charge coverage ratio covenant was not in effect based on Mattel's excess availability under the senior secured revolving credit facilities as of September 30, 2018. Mattel was in compliance with all covenants contained in the Credit Agreement as of September 30, 2018. The Credit Agreement is a material agreement, and failure to comply with the covenants may result in an event of default under the terms of the senior secured revolving credit facilities. If Mattel were to default under the terms of the senior secured revolving credit facilities, its ability to meet its seasonal financing requirements could be adversely affected.

Long-Term Debt

9 Months Ended

Sep. 30, 2018

Debt Disclosure [Abstract]

Long-Term Debt

Long-term debt includes the following:



	September 30, 2018			September 30, 2017			December 31, 2017
	(In thousands)
2010 Senior Notes due October 2020 and October 2040	$	500,000		$	500,000		$	500,000
2011 Senior Notes due November 2041	300,000			300,000			300,000
2013 Senior Notes due March 2018 and March 2023	250,000			500,000			500,000
2014 Senior Notes due May 2019	—			500,000			500,000
2016 Senior Notes due August 2021	350,000			350,000			350,000
2017/2018 Senior Notes due December 2025	1,500,000			—			1,000,000
Debt issuance costs and debt discount	(50,078		)	(13,596		)	(26,881		)
	2,849,922			2,136,404			3,123,119
Less: current portion	—			(250,000		)	(250,000		)
Total long-term debt	$	2,849,922		$	1,886,404		$	2,873,119

In December 2017, Mattel issued $1.00 billion aggregate principal amount of 6.75% senior unsecured notes due December 31, 2025 ("2017 Senior Notes"). The 2017 Senior Notes were issued pursuant to an indenture, dated December 20, 2017, among Mattel, the guarantors named therein, and MUFG Union Bank, N.A., as Trustee (the "Indenture"). Interest on the 2017 Senior Notes is payable semi-annually in arrears on June 30 and December 31 of each year, beginning on June 30, 2018. Mattel may redeem all or part of the 2017 Senior Notes at any time, or from time to time prior to December 31, 2020, at its option, at a redemption price equal to 100% of the principal amount, plus a "make whole" premium, plus accrued and unpaid interest on the 2017 Senior Notes being redeemed to, but excluding, the redemption date. Mattel may also redeem up to 40% of the principal amount of the 2017 Senior Notes at any time, or from time to time prior to December 31, 2020, at its option, at a redemption price equal to 106.75% of the principal amount, plus accrued and unpaid interest on the 2017 Senior Notes being redeemed to, but excluding, the redemption date, with the net cash proceeds of sales of one or more equity offerings by Mattel, or any direct or indirect parent of Mattel. Mattel may redeem all or part of the 2017 Senior Notes at any time, or from time to time on or after December 31, 2020, at its option, at a redemption price including a call premium that varies from 0% to 5.063%, depending on the year of redemption, plus accrued and unpaid interest on the 2017 Senior Notes being redeemed to, but excluding, the redemption date.

In March 2018, Mattel repaid $250.0 million of its 2013 Senior Notes in connection with its scheduled maturity.

In May 2018, Mattel issued $500.0 million aggregate principal amount of its 6.75% senior unsecured notes due December 31, 2025 ("2018 Senior Notes"). The 2018 Senior Notes were issued pursuant to a supplemental indenture, dated May 31, 2018 (the "Supplemental Indenture"), to the Indenture, dated December 20, 2017, among Mattel, the guarantors named therein and MUFG Union Bank, N.A., as Trustee.

In June 2018, Mattel used the net proceeds from the issuance of the 2018 Senior Notes, plus cash on hand, to redeem and retire all of its 2014 Senior Notes due May 6, 2019 at a redemption price equal to the principal amount, plus accrued and unpaid interest.

Other Noncurrent Liabilities

9 Months Ended

Sep. 30, 2018

Payables and Accruals [Abstract]

Other Noncurrent Liabilities

Other noncurrent liabilities include the following:



	September 30, 2018		September 30, 2017		December 31, 2017
	(In thousands)
Benefit plan liabilities	$	177,289	$	196,967	$	168,539
Noncurrent tax liabilities	156,135		218,308		124,330
Other	138,086		161,052		191,257
	$	471,510	$	576,327	$	484,126

Accumulated Other Comprehensive Income (Loss)

9 Months Ended

Sep. 30, 2018

Equity [Abstract]

Accumulated Other Comprehensive Income (Loss)

The following tables present changes in the accumulated balances for each component of other comprehensive income (loss), including current period other comprehensive income (loss) and reclassifications out of accumulated other comprehensive income (loss):



	For the Three Months Ended September 30, 2018
	Derivative Instruments			Available-for-sale security			Defined Benefit Pension Plans			Currency Translation Adjustments			Total
	(In thousands)
Accumulated Other Comprehensive Income (Loss), Net of Tax, as of June 30, 2018	$	452		$	(5,588	)	$	(140,528	)	$	(678,414	)	$	(824,078	)
Other comprehensive income (loss) before reclassifications	3,215			424			219			(17,132		)	(13,274		)
Amounts reclassified from accumulated other comprehensive income (loss)	787			—			1,543			—			2,330
Net increase (decrease) in other comprehensive income (loss)	4,002			424			1,762			(17,132		)	(10,944		)
Accumulated Other Comprehensive Income (Loss), Net of Tax, as of September 30, 2018	$	4,454		$	(5,164	)	$	(138,766	)	$	(695,546	)	$	(835,022	)


	For the Nine Months Ended September 30, 2018
	Derivative Instruments			Available-for-sale security			Defined Benefit Pension Plans			Currency Translation Adjustments			Total
	(In thousands)
Accumulated Other Comprehensive Loss, Net of Tax, as of December 31, 2017	$	(21,098	)	$	(2,799	)	$	(143,213	)	$	(614,676	)	$	(781,786	)
Other comprehensive income (loss) before reclassifications	15,548			(2,365		)	(2,888		)	(80,870		)	(70,575		)
Amounts reclassified from accumulated other comprehensive loss	10,004			—			7,335			—			17,339
Net increase (decrease) in other comprehensive income (loss)	25,552			(2,365		)	4,447			(80,870		)	(53,236		)
Accumulated Other Comprehensive Income (Loss), Net of Tax, as of September 30, 2018	$	4,454		$	(5,164	)	$	(138,766	)	$	(695,546	)	$	(835,022	)



	For the Three Months Ended September 30, 2017
	Derivative Instruments			Available-for-sale security			Defined Benefit Pension Plans			Currency Translation Adjustments			Total
	(In thousands)
Accumulated Other Comprehensive Loss, Net of Tax, as of June 30, 2017	$	(25,114	)	$	(588	)	$	(155,625	)	$	(700,607	)	$	(881,934	)
Other comprehensive (loss) income before reclassifications	(24,009		)	(3,848		)	(103		)	36,912			8,952
Amounts reclassified from accumulated other comprehensive loss	9,241			—			1,209			—			10,450
Net (decrease) increase in other comprehensive (loss) income	(14,768		)	(3,848		)	1,106			36,912			19,402
Accumulated Other Comprehensive Loss, Net of Tax, as of September 30, 2017	$	(39,882	)	$	(4,436	)	$	(154,519	)	$	(663,695	)	$	(862,532	)



	For the Nine Months Ended September 30, 2017
	Derivative Instruments			Available-for-sale security			Defined Benefit Pension Plans			Currency Translation Adjustments			Total
	(In thousands)
Accumulated Other Comprehensive Income (Loss), Net of Tax, as of December 31, 2016	$	17,469		$	3,149		$	(157,704	)	$	(805,943	)	$	(943,029	)
Other comprehensive (loss) income before reclassifications	(63,999		)	(7,585		)	(303		)	142,248			70,361
Amounts reclassified from accumulated other comprehensive income (loss)	6,648			—			3,488			—			10,136
Net (decrease) increase in other comprehensive (loss) income	(57,351		)	(7,585		)	3,185			142,248			80,497
Accumulated Other Comprehensive Loss, Net of Tax, as of September 30, 2017	$	(39,882	)	$	(4,436	)	$	(154,519	)	$	(663,695	)	$	(862,532	)

The following tables present the classification and amount of the reclassifications from accumulated other comprehensive income (loss) to the consolidated statements of operations:



	For the Three Months Ended
	September 30, 2018			September 30, 2017			Statements of Operations Classification
	(In thousands)
Derivative Instruments
Loss on foreign currency forward exchange contracts	$	(910	)	$	(9,124	)	Cost of sales
Tax effect of net loss	123			(117		)	Provision for income taxes
	$	(787	)	$	(9,241	)	Net income (loss)
Defined Benefit Pension Plans
Amortization of prior service credit (cost) (a)	$	502		$	(8	)	Other non-operating expense, net
Recognized actuarial loss (a)	(2,045		)	(1,860		)	Other non-operating expense, net
	(1,543		)	(1,868		)
Tax effect of net loss	—			659			Provision for income taxes
	$	(1,543	)	$	(1,209	)	Net income (loss)



	For the Nine Months Ended
	September 30, 2018			September 30, 2017			Statements of Operations Classification
	(In thousands)
Derivative Instruments
Loss on foreign currency forward exchange contracts	$	(10,060	)	$	(6,658	)	Cost of sales
Tax effect of net loss	56			10			Provision for income taxes
	$	(10,004	)	$	(6,648	)	Net income (loss)
Defined Benefit Pension Plans
Amortization of prior service credit (cost) (a)	$	1,505		$	(23	)	Other non-operating expense, net
Recognized actuarial loss (a)	(6,408		)	(5,576		)	Other non-operating expense, net
Settlement loss	(2,443		)	—			Other non-operating expense, net
	(7,346		)	(5,599		)
Tax effect of net loss	11			2,111			Provision for income taxes
	$	(7,335	)	$	(3,488	)	Net income (loss)

_______________________________________


(a)	The amortization of prior service credit (cost) and recognized actuarial loss are included in the computation of net periodic benefit cost. Refer to "Note 16 to the Consolidated Financial Statements—Employee Benefit Plans" of this Quarterly Report on Form 10-Q for additional information regarding Mattel’s net periodic benefit cost.

Currency Translation Adjustments

Mattel’s reporting currency is the U.S. dollar. The translation of its net investments in subsidiaries with non-U.S. dollar functional currencies subjects Mattel to the impact of currency exchange rate fluctuations in its results of operations and financial position. Assets and liabilities of subsidiaries with non-U.S. dollar functional currencies are translated into U.S. dollars at fiscal period-end exchange rates. Income, expense, and cash flow items are translated at weighted average exchange rates prevailing during the fiscal period. The resulting currency translation adjustments are recorded as a component of accumulated other comprehensive income (loss) within stockholders’ equity. Currency translation adjustments resulted in a net loss of $80.9 million for the nine months ended September 30, 2018, primarily due to the weakening of the Euro, Brazilian real, Russian ruble, British pound sterling, and Turkish lira against the U.S. dollar. Currency translation adjustments resulted in a net gain of $142.2 million for the nine months ended September 30, 2017, primarily due to the strengthening of the Euro, British pound sterling, and Mexican peso against the U.S. dollar.

Derivative Instruments

9 Months Ended

Sep. 30, 2018

Derivative Instruments and Hedging Activities Disclosure [Abstract]

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 generally have maturity dates of up to 18 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 (loss) ("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. Additionally, 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 has not designated these contracts as hedging instruments, and, as such, changes in fair value are recorded in the period of change in the consolidated statements of operations. As of September 30, 2018, September 30, 2017, and December 31, 2017, Mattel held foreign currency forward exchange contracts with notional amounts of $936.8 million, $2.46 billion, and $987.7 million, respectively.

The following tables present Mattel’s derivative assets and liabilities:



	Derivative Assets
	Balance Sheet Classification	Fair Value
		September 30, 2018		September 30, 2017		December 31, 2017
Derivatives designated as hedging instruments:
Foreign currency forward exchange contracts	Prepaid expenses and other current assets	$	7,399	$	1,951	$	2,175
Foreign currency forward exchange contracts	Other noncurrent assets	1,758		764		115
Total derivatives designated as hedging instruments		$	9,157	$	2,715	$	2,290

Derivatives not designated as hedging instruments:
Foreign currency forward exchange contracts	Prepaid expenses and other current assets	$	619	$	1,369	$	5,514
Total		$	9,776	$	4,084	$	7,804

	Derivative Liabilities
	Balance Sheet Classification	Fair Value
		September 30, 2018		September 30, 2017		December 31, 2017
Derivatives designated as hedging instruments:
Foreign currency forward exchange contracts	Accrued liabilities	$	5,219	$	21,624	$	15,970
Foreign currency forward exchange contracts	Other noncurrent liabilities	68		7,206		3,159
Total derivatives designated as hedging instruments		$	5,287	$	28,830	$	19,129

Derivatives not designated as hedging instruments:
Foreign currency forward exchange contracts	Accrued liabilities	$	4,505	$	1,047	$	191
Total		$	9,792	$	29,877	$	19,320

The following tables present the classification and amount of gains and losses, net of tax, from derivatives reported in the consolidated statements of operations:



	For the Three Months Ended
	September 30, 2018					September 30, 2017						Statements of Operations Classification
	Amount of Gain Recognized in OCI		Amount of (Loss) Reclassified from Accumulated OCI to Statement of Operations			Amount of (Loss) Recognized in OCI			Amount of (Loss) Reclassified from Accumulated OCI to Statement of Operations			Statements of Operations Classification
	(In thousands)
Derivatives designated as hedging instruments
Foreign currency forward exchange contracts	$	3,215	$	(787	)	$	(24,009	)	$	(9,241	)	Cost of sales



	For the Nine Months Ended
	September 30, 2018					September 30, 2017						Statements of Operations Classification
	Amount of Gain Recognized in OCI		Amount of (Loss) Reclassified from Accumulated OCI to Statement of Operations			Amount of (Loss) Recognized in OCI			Amount of (Loss) Reclassified from Accumulated OCI to Statement of Operations			Statements of Operations Classification
	(In thousands)
Derivatives designated as hedging instruments
Foreign currency forward exchange contracts	$	15,548	$	(10,004	)	$	(63,999	)	$	(6,648	)	Cost of sales

The net losses of $0.8 million and $10.0 million reclassified from accumulated other comprehensive loss to the consolidated statements of operations for the three and nine months ended September 30, 2018, respectively, and the net losses of $9.2 million and $6.6 million reclassified from accumulated other comprehensive loss to the consolidated statements of operations for the three and nine months ended September 30, 2017, respectively, are offset by the changes in cash flows associated with the underlying hedged transactions.



	Amount of (Loss) Gain Recognized in the Statements of Operations					Statements of Operations Classification
	For the Three Months Ended
	September 30, 2018			September 30, 2017
	(In thousands)
Derivatives not designated as hedging instruments
Foreign currency forward exchange contracts	$	(2,332	)	$	13,624	Other non-operating expense, net
Foreign currency forward exchange contracts	15			9		Cost of sales
Total	$	(2,317	)	$	13,633

	Amount of (Loss) Gain Recognized in the Statements of Operations					Statements of Operations Classification
	For the Nine Months Ended
	September 30, 2018			September 30, 2017
	(In thousands)
Derivatives not designated as hedging instruments
Foreign currency forward exchange contracts	$	(19,196	)	$	64,582	Other non-operating expense, net
Foreign currency forward exchange contracts	(233		)	511		Cost of sales
Total	$	(19,429	)	$	65,093

The net losses of $2.3 million and $19.4 million recognized in the consolidated statements of operations for the three and nine months ended September 30, 2018, respectively, and the net gains of $13.6 million and $65.1 million recognized in the consolidated statements of operations for the three and nine months ended September 30, 2017, respectively, are offset by foreign currency transaction gains and losses on the related hedged balances.

Fair Value Measurements

9 Months Ended

Sep. 30, 2018

Fair Value Disclosures [Abstract]

Fair Value Measurements

The following tables present information about Mattel’s assets and liabilities measured and reported in the financial statements at fair value and indicates the fair value hierarchy of the valuation techniques utilized to determine such fair value. The three levels of the fair value hierarchy are as follows:


•	Level 1 – Valuations based on unadjusted quoted prices in active markets for identical assets or liabilities that the entity has the ability to access.


•	Level 2 – Valuations based on quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable data for substantially the full term of the assets or liabilities.


•	Level 3 – Valuations based on inputs that are unobservable, supported by little or no market activity, and that are significant to the fair value of the assets or liabilities.

Mattel’s financial assets and liabilities measured and reported at fair value on a recurring basis include the following:



	September 30, 2018
	Level 1		Level 2		Level 3		Total
	(In thousands)
Assets:
Foreign currency forward exchange contracts (a)	$	—	$	9,776	$	—	$	9,776
Available-for-sale (b)	6,657		—		—		6,657
Total assets	$	6,657	$	9,776	$	—	$	16,433
Liabilities:
Foreign currency forward exchange contracts (a)	$	—	$	9,792	$	—	$	9,792

	September 30, 2017
	Level 1		Level 2		Level 3		Total
	(In thousands)
Assets:
Foreign currency forward exchange contracts (a)	$	—	$	4,084	$	—	$	4,084
Available-for-sale (b)	7,354		—		—		7,354
Total assets	$	7,354	$	4,084	$	—	$	11,438
Liabilities:
Foreign currency forward exchange contracts (a)	$	—	$	29,877	$	—	$	29,877

	December 31, 2017
	Level 1		Level 2		Level 3		Total
	(In thousands)
Assets:
Foreign currency forward exchange contracts (a)	$	—	$	7,804	$	—	$	7,804
Available-for-sale (b)	8,991		—		—		8,991
Total assets	$	8,991	$	7,804	$	—	$	16,795
Liabilities:
Foreign currency forward exchange contracts (a)	$	—	$	19,320	$	—	$	19,320

____________________________________________


(a)	The fair value of the foreign currency forward exchange contracts are based on dealer quotes of market forward rates and reflect the amount that Mattel would receive or pay at their maturity dates for contracts involving the same notional amounts, currencies, and maturity dates.


(b)	The fair value of the available-for-sale security is based on the quoted price on an active public exchange.

Non-Recurring Fair Value Measurements

Mattel tests its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying value may not be recoverable or that the carrying value may exceed its fair value. During the three and nine months ended September 30, 2018, Mattel fully impaired certain intangible assets and property, plant, and equipment of $1.8 million and $13.7 million, respectively, due to discontinued use.

Other Financial Instruments

Mattel’s financial instruments include cash and equivalents, accounts receivable and payable, accrued liabilities, and short-term and long-term borrowings. The fair values of these instruments approximate their carrying values because of their short-term nature. Cash is classified as Level 1 and all other financial instruments are classified as Level 2 within the fair value hierarchy.

The estimated fair value of Mattel’s long-term debt, including the current portion, was $2.70 billion (compared to a carrying value of $2.90 billion) as of September 30, 2018, $2.17 billion (compared to a carrying value of $2.15 billion) as of September 30, 2017, and $3.01 billion (compared to a carrying value of $3.15 billion) as of December 31, 2017. The estimated fair values have been calculated based on broker quotes or rates for the same or similar instruments and are classified as Level 2 within the fair value hierarchy.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Earnings Per Share

9 Months Ended

Sep. 30, 2018

Earnings Per Share [Abstract]

Earnings Per Share

Unvested share-based payment awards that contain nonforfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are participating securities and are included in the computation of earnings per share pursuant to the two-class method. Prior to June 30, 2018, certain of Mattel’s restricted stock units ("RSUs") were considered participating securities because they contained nonforfeitable rights to dividend equivalents.

Under the two-class method, net income is reduced by the amount of dividends declared in the period for each class of common stock and participating securities. The remaining undistributed earnings are then allocated to common stock and participating securities as if all of the net income for the period had been distributed. Basic earnings per common share excludes dilution and is calculated by dividing net income allocable to common shares by the weighted average number of common shares outstanding for the period. Diluted earnings per common share is calculated by dividing net income allocable to common shares by the weighted average number of common shares for the period, as adjusted for the potential dilutive effect of non-participating share-based awards.

The following table reconciles earnings per common share for the three and nine months ended September 30, 2018 and 2017:



	For the Three Months Ended					For the Nine Months Ended
	September 30, 2018		September 30, 2017			September 30, 2018			September 30, 2017
	(In thousands, except per share amounts)
Basic:
Net income (loss)	$	6,278	$	(603,247	)	$	(545,906	)	$	(772,553	)
Less: Net income (loss) allocable to participating RSUs (a)	—		—			—			—
Net income (loss) available for basic common shares	$	6,278	$	(603,247	)	$	(545,906	)	$	(772,553	)
Weighted average common shares outstanding	345,285		343,870			344,774			343,304
Basic net income (loss) per common share	$	0.02	$	(1.75	)	$	(1.58	)	$	(2.25	)
Diluted:
Net income (loss)	$	6,278	$	(603,247	)	$	(545,906	)	$	(772,553	)
Less: Net income (loss) allocable to participating RSUs (a)	—		—			—			—
Net income (loss) available for diluted common shares	$	6,278	$	(603,247	)	$	(545,906	)	$	(772,553	)
Weighted average common shares outstanding	345,285		343,870			344,774			343,304
Weighted average common equivalent shares arising from:
Dilutive stock options and non-participating RSUs (b)	387		—			—			—
Weighted average number of common and potential common shares	345,672		343,870			344,774			343,304
Diluted net income (loss) per common share	$	0.02	$	(1.75	)	$	(1.58	)	$	(2.25	)

_______________________________________


(a)	For the nine months ended September 30, 2018 and the three and nine months ended September 30, 2017, Mattel did not allocate its net loss to its participating RSUs as its participating RSUs are not obligated to share in Mattel's losses. As of July 1, 2018, Mattel no longer has participating RSUs.

(b)

Mattel was in a net loss position for the nine months ended September 30, 2018 and the three and nine months ended September 30, 2017, and, accordingly, all outstanding nonqualified stock options and non-participating RSUs were excluded from the calculation of diluted earnings per common share because their effect would be antidilutive. Nonqualified stock options and nonparticipating RSUs totaling 22.6 million shares were excluded from the calculation of diluted net income per common share for the three months ended September 30, 2018 because their effect would be antidilutive.

Revenues	9 Months Ended
Revenues	Sep. 30, 2018
Revenue from Contract with Customer [Abstract]
Revenues	Revenues Effective January 1, 2018, Mattel adopted ASU 2014-09 and its related amendments (collectively, the "new revenue standards") using the modified retrospective transition method, which was applied to all contracts not completed as of that date. Results for reporting periods beginning after January 1, 2018 are presented under the new revenue standards, while prior periods were not adjusted. The cumulative effect of the adoption of the new revenue standards on January 1, 2018 was reflected as a net reduction of approximately $29 million to the opening balance of retained earnings associated with certain licensing contracts. The adoption of the new revenue standards did not have a material impact on Mattel's consolidated balance sheets or consolidated statements of earnings as of or for the three and nine months ended September 30, 2018. Revenue Recognition and Sales Adjustments Substantially all of Mattel's revenues continue to be recognized upon shipment or upon receipt of finished goods by the customer, depending on the contract terms. Additionally, Mattel routinely enters into arrangements with its customers to provide sales incentives, support customer promotions, and provide allowances for returns and defective merchandise. Such programs, which can be either contractual or discretionary in nature, are based primarily on customer purchases, customer performance of specified promotional activities, and other specified factors such as sales to consumers. Mattel bases its estimates for these programs on agreed upon customer contract terms as well as historical experience. The costs of these programs are considered variable consideration and are recorded as sales adjustments that reduce gross sales in the period the related sale is recognized. Based on Mattel's analysis of the new revenue standards, revenue recognition from the sale of finished goods to customers, which represents substantially all of Mattel's revenues, was not impacted by the adoption of the new revenue standards. Mattel also enters into symbolic and functional licensing arrangements, whereby the licensee pays Mattel royalties based on sales of licensed product, and in certain cases are subject to minimum guaranteed amounts. The timing of revenue recognition for certain of these licensing arrangements with minimum guarantees changed under the new revenue standards, which under the new revenue standards is based on the determination of whether the license of intellectual property ("IP") is symbolic, which includes the license of Mattel's brands, or functional, which includes the license of Mattel's completed television or streaming content. Revenues from symbolic licenses of IP are recognized based on actual sales when Mattel expects royalties to exceed the minimum guarantee. For symbolic licensing arrangements in which Mattel does not expect royalties to exceed the minimum guarantee, an estimate of the royalties expected to be recouped is recognized on a straight-line basis over the license term. Revenues from functional licenses of IP are recognized once the license period has commenced and the licensee has the ability to use the delivered content. Disaggregated Revenues For a presentation of Mattel's revenues disaggregated by segment, brand, and geography, see "Note 23 to the Consolidated Financial Statements—Segment Information." Practical Expedient Mattel applied the practical expedient prescribed in the new revenue standards and did not evaluate contracts of one year or less for the existence of a significant financing component. Multi-year contracts were not material.

Employee Benefit Plans

9 Months Ended

Sep. 30, 2018

Retirement Benefits [Abstract]

Employee Benefit Plans

Mattel and certain of its subsidiaries have qualified and nonqualified retirement plans covering substantially all employees of these companies, which are more fully described in Part II, Item 8 "Financial Statements and Supplementary Data—Note 4 to the Consolidated Financial Statements–Employee Benefit Plans" in its 2017 Annual Report on Form 10-K.

A summary of the components of net periodic benefit cost for Mattel’s defined benefit pension plans is as follows:



	For the Three Months Ended						For the Nine Months Ended
	September 30, 2018			September 30, 2017			September 30, 2018			September 30, 2017
	(In thousands)
Service cost	$	1,014		$	1,198		$	3,206		$	3,441
Interest cost	4,494			4,479			13,691			13,370
Expected return on plan assets	(5,621		)	(5,768		)	(16,952		)	(17,253		)
Amortization of prior service cost	7			8			23			23
Recognized actuarial loss	2,125			1,823			6,648			5,464
Settlement loss	—			—			2,443			—
	$	2,019		$	1,740		$	9,059		$	5,045

A summary of the components of net periodic benefit cost for Mattel's postretirement benefit plans is as follows:



	For the Three Months Ended					For the Nine Months Ended
	September 30, 2018			September 30, 2017		September 30, 2018			September 30, 2017
	(In thousands)
Service credit	$	—		$	—	$	1		$	1
Interest cost	52			203		156			609
Amortization of prior service credit	(509		)	—		(1,528		)	—
Recognized actuarial (gain) loss	(80		)	37		(240		)	112
	$	(537	)	$	240	$	(1,611	)	$	722

In accordance with ASU 2017-07, Compensation-Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost, which went into effect for interim and annual reporting periods beginning on January 1, 2018, Mattel's service cost component is recorded within operating income (loss), presented in the same line items as other employee compensation costs arising from employee services rendered in the period, while other components of net periodic pension cost and postretirement benefit cost are recorded outside of income from operations, presented in other non-operating expense, net. Prior period amounts have been retrospectively adjusted, which resulted in a reclassification of $0.5 million and $1.6 million of expense, net from other selling and administrative expenses to other non-operating expense, net for the three and nine months ended September 30, 2017, respectively.

During the nine months ended September 30, 2018, Mattel made cash contributions totaling approximately $17 million related to its defined benefit pension and postretirement benefit plans. During the remainder of 2018, Mattel expects to make additional cash contributions of approximately $3 million.

Share-Based Payments

9 Months Ended

Sep. 30, 2018

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Share-Based Payments

Mattel has various stock compensation plans, which are more fully described in Part II, Item 8 "Financial Statements and Supplementary Data—Note 7 to the Consolidated Financial Statements—Share-Based Payments" in its 2017 Annual Report on Form 10-K. Under the Mattel, Inc. Amended and Restated 2010 Equity and Long-Term Compensation Plan, Mattel has the ability to grant nonqualified stock options, incentive stock options, stock appreciation rights, restricted stock, RSUs, performance awards, dividend equivalent rights, and shares of common stock to officers, employees, and other persons providing services to Mattel. Stock options are granted with exercise prices at the fair market value of Mattel’s common stock on the applicable grant date and expire no later than ten years from the date of grant. Both stock options and time-vesting RSUs generally provide for vesting over a period of three years from the date of grant.

In April 2018, the Compensation Committee approved a new long-term incentive program for the January 1, 2018–December 31, 2020 performance cycle. As of September 30, 2018, three long-term incentive programs were in place with the following performance cycles: (i) a January 1, 2016–December 31, 2018 performance cycle, (ii) a January 1, 2017–December 31, 2019 performance cycle, and (iii) a January 1, 2018–December 31, 2020 performance cycle.

For the January 1, 2018–December 31, 2020 performance cycle, Mattel granted performance-based restricted stock units ("Performance RSUs") under the Mattel, Inc. Amended and Restated 2010 Equity and Long-Term Compensation Plan to senior executives providing services to Mattel. Performance RSUs granted under this program are earned based on an initial target number with the final number of Performance RSUs payable being determined based on the product of the initial target number of Performance RSUs multiplied by a performance factor based on measurements of Mattel's performance with respect to (i) a cumulative three-year free cash flow target for the performance cycle and (ii) Mattel's total shareholder return ("TSR") multiplier, which is based on Mattel’s three-year TSR relative to the TSR realized by companies comprised of the S&P 500 as of the first day of the performance cycle. The Performance RSUs also have dividend equivalent rights that are converted to shares of Mattel common stock only when and to the extent the underlying Performance RSUs are earned and paid in shares of Mattel common stock.

During the three and nine months ended September 30, 2018, Mattel recognized $0.6 million of compensation expense in connection with its 2018–2020 performance cycle. During the three and nine months ended September 30, 2018, Mattel recognized $0.5 million of compensation expense related to the 2017–2019 performance-related component and no compensation expense related to the 2016–2018 performance-related component. Mattel recognized minimal expense related to the 2017–2019 and the 2016–2018 market-related components during the three and nine months ended September 30, 2018.

Compensation expense, included within other selling and administrative expenses in the consolidated statements of operations, related to stock options and RSUs is as follows:



	For the Three Months Ended				For the Nine Months Ended
	September 30, 2018		September 30, 2017		September 30, 2018		September 30, 2017
	(In thousands)
Stock option compensation expense	$	2,751	$	3,446	$	6,125	$	9,262
RSU compensation expense	11,019		13,583		30,062		38,320
	$	13,770	$	17,029	$	36,187	$	47,582

As of September 30, 2018, total unrecognized compensation cost related to unvested share-based payments totaled $115.4 million and is expected to be recognized over a weighted-average period of 2.4 years.

Mattel uses treasury shares purchased under its share repurchase program to satisfy stock option exercises and the vesting of RSUs. Cash received for stock option exercises was $0 and $1.8 million during the nine months ended September 30, 2018 and 2017, respectively.

Other Selling and Administrative Expenses	9 Months Ended
Other Selling and Administrative Expenses	Sep. 30, 2018
Other Income and Expenses [Abstract]
Other Selling and Administrative Expenses