Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Feb. 14, 2014 | Jun. 28, 2013 | |
Document Information [Line Items] | ' | ' | ' |
Document Type | '10-K | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Trading Symbol | 'MAT | ' | ' |
Entity Registrant Name | 'MATTEL INC /DE/ | ' | ' |
Entity Central Index Key | '0000063276 | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Well-known Seasoned Issuer | 'Yes | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Filer Category | 'Large Accelerated Filer | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 340,361,493 | ' |
Entity Public Float | ' | ' | $15,641,182,003 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Current Assets | ' | ' |
Cash and equivalents | $1,039,216 | $1,335,711 |
Accounts receivable, net of allowances of $20.4 million and $33.5 million in 2013 and 2012, respectively | 1,260,105 | 1,226,833 |
Inventories | 568,843 | 465,057 |
Prepaid expenses and other current assets | 509,829 | 529,204 |
Total current assets | 3,377,993 | 3,556,805 |
Noncurrent Assets | ' | ' |
Property, plant, and equipment, net | 659,333 | 593,213 |
Goodwill | 1,083,239 | 1,080,798 |
Other noncurrent assets | 1,319,061 | 1,295,969 |
Total Assets | 6,439,626 | 6,526,785 |
Current Liabilities | ' | ' |
Short-term borrowings | 4,278 | 9,844 |
Current portion of long-term debt | ' | 400,000 |
Accounts payable | 375,328 | 385,375 |
Accrued liabilities | 640,155 | 887,748 |
Income taxes payable | 27,679 | 33,045 |
Total current liabilities | 1,047,440 | 1,716,012 |
Noncurrent Liabilities | ' | ' |
Long-term debt | 1,600,000 | 1,100,000 |
Other noncurrent liabilities | 540,627 | 643,729 |
Total noncurrent liabilities | 2,140,627 | 1,743,729 |
Commitments and Contingencies (See Note 11) | ' | ' |
Stockholders' Equity | ' | ' |
Common stock $1.00 par value, 1.0 billion shares authorized; 441.4 million shares issued | 441,369 | 441,369 |
Additional paid-in capital | 1,784,445 | 1,727,682 |
Treasury stock at cost; 102.1 million shares and 99.1 million shares in 2013 and 2012, respectively | -2,448,701 | -2,152,702 |
Retained earnings | 3,918,122 | 3,515,181 |
Accumulated other comprehensive loss | -443,676 | -464,486 |
Total stockholders' equity | 3,251,559 | 3,067,044 |
Total Liabilities and Stockholders' Equity | $6,439,626 | $6,526,785 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, except Per Share data, unless otherwise specified | ||
Accounts receivable, allowances | $20.40 | $33.50 |
Common stock, par value | $1 | $1 |
Common stock, shares authorized | 1,000 | 1,000 |
Common stock, shares issued | 441.4 | 441.4 |
Treasury stock, shares | 102.1 | 99.1 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Net Sales | $6,484,892 | $6,420,881 | $6,266,037 |
Cost of sales | 3,006,009 | 3,011,684 | 3,120,211 |
Gross Profit | 3,478,883 | 3,409,197 | 3,145,826 |
Advertising and promotion expenses | 750,205 | 717,803 | 699,247 |
Other selling and administrative expenses | 1,560,575 | 1,670,379 | 1,405,478 |
Operating Income | 1,168,103 | 1,021,015 | 1,041,101 |
Interest expense | 78,505 | 88,835 | 75,332 |
Interest (income) | -5,555 | -6,841 | -8,093 |
Other non-operating (income) expense, net | -3,975 | -6,024 | 3,189 |
Income Before Income Taxes | 1,099,128 | 945,045 | 970,673 |
Provision for income taxes | 195,184 | 168,581 | 202,165 |
Net Income | $903,944 | $776,464 | $768,508 |
Net Income Per Common Share-Basic | $2.61 | $2.25 | $2.20 |
Weighted average number of common shares | 343,394 | 341,665 | 344,669 |
Net Income Per Common Share-Diluted | $2.58 | $2.22 | $2.18 |
Weighted average number of common and potential common shares | 347,459 | 346,158 | 348,424 |
Dividends Declared Per Common Share | $1.44 | $1.24 | $0.92 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Net Income | $903,944 | $776,464 | $768,508 |
Other Comprehensive Income (Loss), Net of Tax: | ' | ' | ' |
Currency translation adjustments | -29,694 | 27,616 | -77,105 |
Defined benefit pension plans net prior service credit (cost) and net actuarial gain (loss) | 58,710 | -18,258 | -38,084 |
Net unrealized (losses) gains on derivative instruments: | ' | ' | ' |
Unrealized holding (losses) gains | -13,103 | 2,734 | 17,900 |
Reclassification adjustment for realized losses (gains) included in net income | 4,897 | -29,933 | 9,843 |
Net unrealized (losses) gains on derivative instruments | -8,206 | -27,199 | 27,743 |
Other Comprehensive Income (Loss), Net of Tax | 20,810 | -17,841 | -87,446 |
Comprehensive Income | $924,754 | $758,623 | $681,062 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Cash Flows From Operating Activities: | ' | ' | ' |
Net Income | $903,944 | $776,464 | $768,508 |
Adjustments to reconcile net income to net cash flows from operating activities: | ' | ' | ' |
Depreciation | 179,333 | 157,536 | 147,458 |
Amortization | 17,060 | 16,746 | 13,840 |
Asset impairment | 14,000 | ' | ' |
Deferred income taxes | 19,632 | -36,183 | 49,368 |
Tax benefits from share-based payment arrangements | -50,374 | -35,798 | -24,199 |
Share-based compensation | 61,651 | 63,277 | 53,476 |
(Decrease) increase from changes in assets and liabilities, net of acquired assets and liabilities: | ' | ' | ' |
Accounts receivable | -48,802 | 66,999 | -175,526 |
Inventories | -116,509 | 34,382 | -40,015 |
Prepaid expenses and other current assets | -43,159 | -66,401 | -22,689 |
Accounts payable, accrued liabilities, and income taxes payable | -201,868 | 312,634 | -87,021 |
Other, net | -36,482 | -14,006 | -18,507 |
Net cash flows from operating activities | 698,426 | 1,275,650 | 664,693 |
Cash Flows From Investing Activities: | ' | ' | ' |
Purchases of tools, dies, and molds | -128,080 | -108,070 | -102,193 |
Purchases of other property, plant, and equipment | -123,974 | -110,978 | -88,721 |
Payments for acquisition, net of cash acquired | ' | -684,522 | ' |
Proceeds from foreign currency forward exchange contracts | 12,849 | 2,964 | 16,432 |
Other, net | -2,901 | 454 | -22 |
Net cash flows used for investing activities | -242,106 | -900,152 | -174,504 |
Cash Flows From Financing Activities: | ' | ' | ' |
Payments of short-term borrowings, net | -9,844 | -8,018 | -236,811 |
Proceeds from short-term borrowings, net | 4,278 | 9,844 | 244,829 |
Payments of long-term borrowings | -400,000 | -50,000 | -250,000 |
Proceeds from long-term borrowings, net | 495,260 | ' | 591,801 |
Payment of credit facility renewal costs | -4,003 | ' | -6,917 |
Share repurchases | -492,740 | -66,733 | -524,009 |
Payment of dividends on common stock | -494,371 | -423,378 | -316,503 |
Proceeds from exercise of stock options | 134,506 | 122,296 | 115,611 |
Tax benefits from share-based payment arrangements | 50,374 | 35,798 | 24,199 |
Other, net | -23,422 | -30,737 | -39,508 |
Net cash flows used for financing activities | -739,962 | -410,928 | -397,308 |
Effect of Currency Exchange Rate Changes on Cash | -12,853 | 2,028 | -4,891 |
(Decrease) Increase in Cash and Equivalents | -296,495 | -33,402 | 87,990 |
Cash and Equivalents at Beginning of Year | 1,335,711 | 1,369,113 | 1,281,123 |
Cash and Equivalents at End of Year | 1,039,216 | 1,335,711 | 1,369,113 |
Cash paid during the year for: | ' | ' | ' |
Income taxes, gross | 175,603 | 159,070 | 173,625 |
Interest | $81,874 | $88,524 | $76,502 |
Consolidated_Statements_of_Sto
Consolidated Statements of Stockholders' Equity (USD $) | Total | Common Stock | Additional Paid-In Capital | Treasury Stock | Retained Earnings | Accumulated Other Comprehensive Loss |
In Thousands | ||||||
Balance at Dec. 31, 2010 | $2,628,584 | $441,369 | $1,706,461 | ($1,880,692) | $2,720,645 | ($359,199) |
Net Income | 768,508 | ' | ' | ' | 768,508 | ' |
Other comprehensive income (loss), net of tax | -87,446 | ' | ' | ' | ' | -87,446 |
Purchase of treasury stock | -536,318 | ' | ' | -536,318 | ' | ' |
Issuance of treasury stock for stock option exercises | 115,611 | ' | -9,758 | 125,369 | ' | ' |
Issuance of treasury stock for restricted stock units vesting | -36,101 | ' | -84,631 | 48,530 | ' | ' |
Deferred compensation | 150 | ' | ' | 589 | -439 | ' |
Share-based compensation | 53,476 | ' | 53,476 | ' | ' | ' |
Tax benefits from share-based payment arrangements | 24,199 | ' | 24,199 | ' | ' | ' |
Dividend equivalents for restricted stock units | -3,557 | ' | 658 | ' | -4,215 | ' |
Dividends | -316,503 | ' | ' | ' | -316,503 | ' |
Balance at Dec. 31, 2011 | 2,610,603 | 441,369 | 1,690,405 | -2,242,522 | 3,167,996 | -446,645 |
Net Income | 776,464 | ' | ' | ' | 776,464 | ' |
Other comprehensive income (loss), net of tax | -17,841 | ' | ' | ' | ' | -17,841 |
Purchase of treasury stock | -77,946 | ' | ' | -77,946 | ' | ' |
Issuance of treasury stock for stock option exercises | 123,092 | ' | -13,702 | 136,794 | ' | ' |
Issuance of treasury stock for restricted stock units vesting | -19,154 | ' | -49,385 | 30,231 | ' | ' |
Deferred compensation | 160 | ' | ' | 741 | -581 | ' |
Share-based compensation | 63,277 | ' | 63,277 | ' | ' | ' |
Tax benefits from share-based payment arrangements | 35,798 | ' | 35,798 | ' | ' | ' |
Dividend equivalents for restricted stock units | -4,031 | ' | 1,289 | ' | -5,320 | ' |
Dividends | -423,378 | ' | ' | ' | -423,378 | ' |
Balance at Dec. 31, 2012 | 3,067,044 | 441,369 | 1,727,682 | -2,152,702 | 3,515,181 | -464,486 |
Net Income | 903,944 | ' | ' | ' | 903,944 | ' |
Other comprehensive income (loss), net of tax | 20,810 | ' | ' | ' | ' | 20,810 |
Purchase of treasury stock | -469,218 | ' | ' | -469,218 | ' | ' |
Issuance of treasury stock for stock option exercises | 134,747 | ' | -17,531 | 152,278 | ' | ' |
Issuance of treasury stock for restricted stock units vesting | -18,962 | ' | -39,293 | 20,331 | ' | ' |
Deferred compensation | 20 | ' | ' | 610 | -590 | ' |
Share-based compensation | 61,651 | ' | 61,651 | ' | ' | ' |
Tax benefits from share-based payment arrangements | 50,374 | ' | 50,374 | ' | ' | ' |
Dividend equivalents for restricted stock units | -4,480 | ' | 1,562 | ' | -6,042 | ' |
Dividends | -494,371 | ' | ' | ' | -494,371 | ' |
Balance at Dec. 31, 2013 | $3,251,559 | $441,369 | $1,784,445 | ($2,448,701) | $3,918,122 | ($443,676) |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2013 | |
Summary of Significant Accounting Policies | ' |
Note 1—Summary of Significant Accounting Policies | |
Principles of Consolidation and Basis of Preparation | |
The consolidated financial statements include the accounts of Mattel, Inc. and its subsidiaries. All wholly and majority-owned subsidiaries are consolidated and included in Mattel’s consolidated financial statements. Mattel does not have any minority stock ownership interests in which it has a controlling financial interest that would require consolidation. All significant intercompany accounts and transactions have been eliminated upon consolidation. | |
Use of Estimates | |
Preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (“US GAAP”) requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could ultimately differ from those estimates. | |
Cash and Equivalents | |
Cash and equivalents include short-term investments, which are highly liquid investments with maturities of three months or less when purchased. Such investments are stated at cost, which approximates market value. | |
Accounts Receivable and Allowance for Doubtful Accounts | |
Credit is granted to customers on an unsecured basis. Credit limits and payment terms are established based on extensive evaluations made on an ongoing basis throughout the fiscal year of the financial performance, cash generation, financing availability, and liquidity status of each customer. Customers are reviewed at least annually, with more frequent reviews performed as necessary, based on the customers’ financial condition and the level of credit being extended. For customers who are experiencing financial difficulties, management performs additional financial analyses before shipping to those customers on credit. Mattel uses a variety of financial arrangements to ensure collectibility of accounts receivable of customers deemed to be a credit risk, including requiring letters of credit, purchasing various forms of credit insurance with unrelated third parties, factoring, or requiring cash in advance of shipment. | |
Mattel records an allowance for doubtful accounts based on management’s assessment of the business environment, customers’ financial condition, historical collection experience, accounts receivable aging, and customer disputes. | |
Inventories | |
Inventories, net of an allowance for excess quantities and obsolescence, are stated at the lower of cost or market. Inventory allowances are charged to cost of sales and establish a lower cost basis for the inventory. Cost is determined by the first-in, first-out method. | |
Property, Plant, and Equipment | |
Property, plant, and equipment are stated at cost less accumulated depreciation and amortization. Depreciation is computed using the straight-line method over estimated useful lives of 10 to 30 years for buildings, 3 to 10 years for machinery and equipment, and 10 to 20 years, not to exceed the lease term, for leasehold improvements. Tools, dies, and molds are depreciated using the straight-line method over 3 years. Estimated useful lives are periodically reviewed and, where appropriate, changes are made prospectively. The carrying value of property, plant, and equipment is reviewed when events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. Any potential impairment identified is assessed by evaluating the operating performance and future undiscounted cash flows of the underlying assets. When property is sold or retired, the cost of the property and the related accumulated depreciation are removed from the consolidated balance sheet, and any resulting gain or loss is included in the results of operations. | |
Goodwill and Intangible Assets | |
Goodwill is allocated to various reporting units, which are at the operating segment level, for purposes of evaluating whether goodwill is impaired. As more fully described in “Note 12 to the Consolidated Financial Statements—Segment Information,” on January 1, 2012, Mattel changed its operating segments to align with its new organizational structure, which resulted in changes to its reporting units. The new reporting units are: (i) North America, (ii) International, and (iii) American Girl. Components of the operating segments have been aggregated into a single reporting unit as the components have similar economic characteristics. The similar economic characteristics include the nature of the products, the nature of the production processes, the customers, and the manner in which the products are distributed. Mattel reassigned goodwill to the new reporting units based on a relative fair value approach. 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. | |
Mattel tests its nonamortizable intangible assets, including trademarks and trade names, for impairment by comparing the estimated fair values of the nonamortizable intangible assets with the carrying values. Mattel tests nonamortizable intangible assets for impairment annually in the third quarter or whenever events or changes in circumstances indicate that the carrying value may exceed its fair value. | |
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 recovered. | |
Foreign Currency Translation Exposure | |
Mattel’s reporting currency is the US dollar. The translation of its net investments in subsidiaries with non-US 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-US dollar functional currencies are translated into US dollars at year-end exchange rates. Income, expense, and cash flow items are translated at weighted average exchange rates prevailing during the year. The resulting currency translation adjustments are recorded as a component of accumulated other comprehensive loss within stockholders’ equity. Mattel’s primary currency translation exposures in 2013 were related to its net investments in entities having functional currencies denominated in the Euro, Brazilian real, Australian dollar, and Indonesian rupiah. | |
Foreign Currency Transaction Exposure | |
Currency exchange rate fluctuations may impact Mattel’s results of operations and cash flows. Mattel’s currency transaction exposures include gains and losses realized on unhedged inventory purchases and unhedged receivables and payables balances that are denominated in a currency other than the applicable functional currency. Gains and losses on unhedged inventory purchases and other transactions associated with operating activities are recorded in the components of operating income in the consolidated statement of operations. Gains and losses on unhedged intercompany loans and advances are recorded as a component of other non-operating (income) expense, net in the consolidated statement of operations in the period in which the currency exchange rate changes. Inventory transactions denominated in the Euro, British pound sterling, Mexican peso, Brazilian real, and Indonesian rupiah were the primary transactions that caused foreign currency transaction exposure for Mattel in 2013. | |
Derivative Instruments | |
Mattel uses foreign currency forward exchange contracts as cash flow hedges primarily to hedge its purchases and sales of inventory denominated in foreign currencies. At the inception of the contracts, Mattel designates these derivatives as cash flow hedges and documents the relationship of the hedge to the underlying transaction. Hedge effectiveness is assessed at inception and throughout the life of the hedge to ensure the hedge qualifies for hedge accounting. Changes in fair value associated with hedge ineffectiveness, if any, are recorded in the results of operations. Changes in fair value of cash flow hedge derivatives are deferred and recorded as part of accumulated other comprehensive loss in stockholders’ equity until the underlying transaction affects earnings. In the event that an anticipated transaction is no longer likely to occur, Mattel recognizes the change in fair value of the derivative in its results of operations in the period the determination is made. | |
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 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. | |
Revenue Recognition and Sales Adjustments | |
Revenue is recognized upon shipment or upon receipt of products by the customer, depending on terms, provided that: there are no uncertainties regarding customer acceptance; persuasive evidence of an agreement exists documenting the specific terms of the transaction; the sales price is fixed or determinable; and collectibility is reasonably assured. Management assesses the business environment, the customer’s financial condition, historical collection experience, accounts receivable aging, and customer disputes to determine whether collectibility is reasonably assured. If collectibility is not considered reasonably assured at the time of sale, Mattel does not recognize revenue until collection occurs. Value added taxes are recorded on a net basis and are excluded from revenue. 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 are based primarily on customer purchases, customer performance of specified promotional activities, and other specified factors such as sales to consumers. The costs of these programs are recorded as sales adjustments that reduce gross revenue in the period the related revenue is recognized. | |
Advertising and Promotion Costs | |
Costs of media advertising are expensed the first time the advertising takes place, except for direct-response advertising, which is capitalized and amortized over its expected period of future benefits. Direct-response advertising consists primarily of catalog production and mailing costs, which are generally amortized within three months from the date the catalogs are mailed. | |
Product Recalls and Withdrawals | |
Mattel establishes a reserve for product recalls and withdrawals on a product-specific basis when circumstances giving rise to the recall or withdrawal become known. Facts and circumstances related to the recall or withdrawal, including where the product affected by the recall or withdrawal is located (e.g., with consumers, in customers’ inventory, or in Mattel’s inventory), cost estimates for shipping and handling for returns, cost estimates for communicating the recall or withdrawal to consumers and customers, and cost estimates for parts and labor if the recalled or withdrawn product is deemed to be repairable, are considered when establishing a product recall or withdrawal reserve. These factors are updated and reevaluated each period, and the related reserves are adjusted when these factors indicate that the recall or withdrawal reserve is either not sufficient to cover or exceeds the estimated product recall or withdrawal expenses. | |
Design and Development Costs | |
Product design and development costs primarily include employee compensation and outside services and are charged to the results of operations as incurred. | |
Employee Benefit Plans | |
Mattel and certain of its subsidiaries have retirement and other postretirement benefit plans covering substantially all employees of these companies. Actuarial valuations are used in determining amounts recognized in the financial statements for certain retirement and other postretirement benefit plans (see “Note 4 to the Consolidated Financial Statements—Employee Benefit Plans”). | |
Share-Based Payments | |
Mattel recognizes the cost of employee share-based payment awards on a straight-line attribution basis over the requisite employee service period, net of estimated forfeitures. In determining when additional tax benefits associated with share-based payment exercises are recognized, Mattel follows the ordering of deductions under the tax law, which allows deductions for share-based payment exercises to be utilized before previously existing net operating loss carryforwards. | |
Determining the fair value of share-based awards at the measurement date requires judgment, including estimating the expected term that stock options will be outstanding prior to exercise, the associated volatility, and the expected dividends. Mattel estimates the fair value of options granted using the Black-Scholes valuation model. The expected life of the options used in this calculation is the period of time the options are expected to be outstanding and has been determined based on historical exercise experience. Expected stock price volatility is based on the historical volatility of Mattel’s stock for a period approximating the expected life, the expected dividend yield is based on Mattel’s most recent actual annual dividend payout, and the risk-free interest rate is based on the implied yield available on US Treasury zero-coupon issues approximating the expected life. Judgment is also required in estimating the amount of share-based awards that will be forfeited prior to vesting. | |
Income Taxes | |
Certain income and expense items are accounted for differently for financial reporting and income tax purposes. Deferred income tax assets and liabilities are determined based on the difference between the financial statement and tax bases of assets and liabilities, applying enacted statutory income tax rates in effect for the year in which the differences are expected to reverse. | |
In the normal course of business, Mattel is regularly audited by federal, state, local, and foreign tax authorities. The ultimate settlement of any particular issue with the applicable taxing authority could have a material impact on Mattel’s consolidated financial statements. | |
New Accounting Pronouncements | |
In March 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2013-05, Parent’s Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity, which requires the release of a cumulative translation adjustment into net income when a parent ceases to have a controlling financial interest in a subsidiary or group of assets within a consolidated foreign entity and the sale or transfer results in the complete or substantially complete liquidation of the foreign entity. ASU 2013-05 will be effective for interim and annual reporting periods beginning after December 15, 2013. Mattel has not completed its evaluation of ASU 2013-05, but does not expect the adoption of ASU 2013-05 to have a material effect on its operating results or financial position. | |
In July 2013, the FASB issued ASU 2013-11, Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists, which generally requires an unrecognized tax benefit, or a portion of an unrecognized tax benefit, to be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward. However, to the extent a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date to settle any additional income taxes that would result from the disallowance of a tax position or the applicable tax law does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. ASU 2013-11 will be effective for interim and annual reporting periods beginning after December 15, 2013. Mattel has not completed its evaluation of ASU 2013-11, but does not expect the adoption of ASU 2013-11 to have a material effect on its operating results or financial position. |
Goodwill_and_Other_Intangibles
Goodwill and Other Intangibles | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Goodwill and Other Intangibles | ' | ||||||||||||||||
Note 2—Goodwill and Other Intangibles | |||||||||||||||||
Goodwill is allocated to various reporting units, which are at the operating segment level, for purposes of evaluating whether goodwill is impaired. As more fully described in “Note 12 to the Consolidated Financial Statements—Segment Information,” on January 1, 2012, Mattel changed its operating segments to align with its new organizational structure, which resulted in changes to its reporting units. The new reporting units are: (i) North America, (ii) International, and (iii) American Girl. Components of the operating segments have been aggregated into a single reporting unit as the components have similar economic characteristics. The similar economic characteristics include the nature of the products, the nature of the production processes, the customers, and the manner in which the products are distributed. Mattel reassigned the 2011 goodwill balances to the new reporting units based on a relative fair value approach. | |||||||||||||||||
The change in the carrying amount of goodwill by operating segment for 2013 and 2012 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. | |||||||||||||||||
North America | International | American Girl | Total | ||||||||||||||
(In thousands) | |||||||||||||||||
Balance at December 31, 2011 | $ | 393,905 | $ | 214,612 | $ | 213,622 | $ | 822,139 | |||||||||
Acquisition | 151,348 | 100,898 | — | 252,246 | |||||||||||||
Currency exchange rate impact | 1,645 | 4,659 | 109 | 6,413 | |||||||||||||
Balance at December 31, 2012 | 546,898 | 320,169 | 213,731 | 1,080,798 | |||||||||||||
Currency exchange rate impact | 697 | 1,487 | 257 | 2,441 | |||||||||||||
Balance at December 31, 2013 | $ | 547,595 | $ | 321,656 | $ | 213,988 | $ | 1,083,239 | |||||||||
In the third quarter of 2013, Mattel assessed its goodwill for impairment by evaluating qualitative factors for each of its reporting units in accordance with ASU 2011-08, Testing Goodwill for Impairment, and determined that it was not more likely than not that the fair values of its reporting units were less than the carrying amounts. As a result of this determination, the quantitative two-step goodwill impairment test was deemed unnecessary. Mattel has not recorded any impairment of goodwill subsequent to its initial adoption of Accounting Standards Codification (“ASC”) 350-20, Goodwill, on January 1, 2002. | |||||||||||||||||
Acquisition of HIT Entertainment | |||||||||||||||||
On February 1, 2012, Mattel acquired Helium Holdings 1A Ltd, a private limited company existing under the laws of Jersey (“HIT Entertainment”), pursuant to the Stock Purchase Agreement dated as of October 23, 2011, between Mattel’s wholly-owned subsidiary, Mattel Entertainment Holdings Limited, a private limited company existing under the laws of England and Wales (the “Purchasing Sub”), HIT Entertainment’s parent company, HIT Entertainment Scottish Limited Partnership, a limited partnership existing under the laws of Scotland and majority-owned by a consortium of funds led by Apax Partners, LLP and its affiliates (the “Selling Stockholder”) and, with respect to certain provisions thereof, Mattel (the “Purchase Agreement”). Pursuant to the terms set forth in the Purchase Agreement, Mattel indirectly acquired, through the Purchasing Sub, 100% of the issued and outstanding shares of HIT Entertainment from the Selling Stockholder for total cash consideration of $713.5 million, including payment for acquired cash, subject to customary adjustments. HIT Entertainment owns and licenses a diverse portfolio of pre-school entertainment brands, including Thomas & Friends. | |||||||||||||||||
The total consideration was allocated to the assets acquired and liabilities assumed based on their estimated fair values. As a result of the acquisition, Mattel recognized $510.7 million of identifiable intangible assets (primarily related to intellectual property rights), $49.4 million of net liabilities assumed (primarily related to deferred tax liabilities), and $252.2 million of goodwill, which is not deductible for tax purposes. The fair values of the identifiable intangible assets were estimated based on the multi-period excess earnings method, using Level 3 inputs within the fair value hierarchy, which included forecasted future cash flows, long-term revenue growth rates, and the weighted average cost of capital. Goodwill relates to a number of factors built into the purchase price, including the future earnings and cash flow potential of the business, as well as the complementary strategic fit and the resulting synergies it brings to Mattel’s existing operations. | |||||||||||||||||
Mattel recognized approximately $5 million and $18 million of integration costs during 2013 and 2012, respectively. During 2012, Mattel recognized approximately $6 million of transaction costs. No transaction costs were incurred during 2013. Integration and transaction costs are recorded within other selling and administrative expenses in the consolidated statements of operations. The pro forma and actual results of operations for this acquisition have not been presented because they are not material. | |||||||||||||||||
Other Intangibles | |||||||||||||||||
Identifiable intangibles include the following: | |||||||||||||||||
December 31, | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
(In thousands) | |||||||||||||||||
Nonamortizable identifiable intangibles | $ | 504,241 | $ | 617,223 | |||||||||||||
Identifiable intangibles (net of amortization of $68.3 million and $64.9 million at December 31, 2013 and 2012, respectively) | 176,579 | 88,786 | |||||||||||||||
$ | 680,820 | $ | 706,009 | ||||||||||||||
In connection with the acquisition of HIT Entertainment during 2012, Mattel recognized $495.0 million of nonamortizable identifiable intangible assets and $15.7 million of amortizable identifiable intangible assets, primarily related to intellectual property rights. | |||||||||||||||||
During the second quarter of 2013, Mattel changed its brand strategy for Polly Pocket, which includes a more focused allocation of resources to support the Polly Pocket brand in specific markets, resulting in a reduction of the forecasted future cash flows of the brand. As a result of the change, Mattel tested the Polly Pocket trade name for impairment. The Polly Pocket trade name, which had a carrying value of approximately $113 million, was previously determined to be a nonamortizable intangible asset. Its fair value was determined to be approximately $99 million based on a discounted cash flow analysis using the multi-period excess earnings method. Level 3 inputs, including forecasted future cash flows, an estimated useful life, and a discount rate, were used in the valuation. As the fair value of the asset was below the carrying value, Mattel recorded an impairment charge of approximately $14 million, which is reflected within other selling and administrative expenses in the consolidated statement of operations for the North America and International operating segments. | |||||||||||||||||
In conjunction with the Polly Pocket trade name impairment test, Mattel reassessed the intangible asset’s nonamortizable classification and determined that the nonamortizable classification could no longer be supported. During the second quarter of 2013, the Polly Pocket trade name was reclassified as an amortizable intangible asset, and the remaining fair value of the asset is being amortized over its estimated remaining useful life. | |||||||||||||||||
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. During 2013 and 2012, Mattel performed the annual impairment tests and determined that the remaining nonamortizable intangible assets were not impaired. | |||||||||||||||||
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. Mattel determined that its amortizable intangible assets were not impaired during 2013 and 2012. |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Income Taxes | ' | ||||||||||||
Note 3—Income Taxes | |||||||||||||
Consolidated pre-tax income consists of the following: | |||||||||||||
For the Year | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(In thousands) | |||||||||||||
US operations | $ | 231,372 | $ | 104,707 | $ | 169,706 | |||||||
Foreign operations | 867,756 | 840,338 | 800,967 | ||||||||||
$ | 1,099,128 | $ | 945,045 | $ | 970,673 | ||||||||
The provision (benefit) for current and deferred income taxes consists of the following: | |||||||||||||
For the Year | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(In thousands) | |||||||||||||
Current | |||||||||||||
Federal | $ | 38,227 | $ | 69,639 | $ | 15,933 | |||||||
State | 6,447 | 8,660 | 5,268 | ||||||||||
Foreign | 130,878 | 126,465 | 131,596 | ||||||||||
175,552 | 204,764 | 152,797 | |||||||||||
Deferred | |||||||||||||
Federal | 30,342 | (26,489 | ) | 49,853 | |||||||||
State | (512 | ) | 520 | (2,629 | ) | ||||||||
Foreign | (10,198 | ) | (10,214 | ) | 2,144 | ||||||||
19,632 | (36,183 | ) | 49,368 | ||||||||||
Provision for income taxes | $ | 195,184 | $ | 168,581 | $ | 202,165 | |||||||
Deferred income taxes are provided principally for tax credit carryforwards, research and development expenses, net operating loss carryforwards, employee compensation-related expenses, 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, | |||||||||||||
2013 | 2012 | ||||||||||||
(In thousands) | |||||||||||||
Tax credit carryforwards | $ | 77,396 | $ | 59,372 | |||||||||
Research and development expenses | 187,477 | 181,449 | |||||||||||
Loss carryforwards | 124,201 | 131,989 | |||||||||||
Allowances and reserves | 202,141 | 229,056 | |||||||||||
Deferred compensation | 111,850 | 118,878 | |||||||||||
Postretirement benefits | 37,479 | 72,912 | |||||||||||
Other | 66,599 | 67,942 | |||||||||||
Gross deferred income tax assets | 807,143 | 861,598 | |||||||||||
Intangible assets | (282,737 | ) | (279,592 | ) | |||||||||
Other | (5,555 | ) | (8,262 | ) | |||||||||
Gross deferred income tax liabilities | (288,292 | ) | (287,854 | ) | |||||||||
Deferred income tax asset valuation allowances | (64,641 | ) | (67,705 | ) | |||||||||
Net deferred income tax assets | $ | 454,210 | $ | 506,039 | |||||||||
The table of deferred tax assets and liabilities as shown above does not include deferred tax assets for net operating losses as of December 31, 2013 that arose directly from tax deductions attributable to windfall income tax benefits. Additional paid-in-capital will be increased by $4.6 million when the deferred tax assets are realized. Mattel uses tax law ordering when determining when excess tax benefits have been realized. | |||||||||||||
Net deferred income tax assets are reported in the consolidated balance sheets as follows: | |||||||||||||
December 31, | |||||||||||||
2013 | 2012 | ||||||||||||
(In thousands) | |||||||||||||
Prepaid expenses and other current assets | $ | 195,872 | $ | 253,664 | |||||||||
Other noncurrent assets | 373,638 | 374,667 | |||||||||||
Accrued liabilities | (109 | ) | (152 | ) | |||||||||
Other noncurrent liabilities | (115,191 | ) | (122,140 | ) | |||||||||
$ | 454,210 | $ | 506,039 | ||||||||||
As of December 31, 2013, Mattel has federal and foreign loss carryforwards totaling $445.8 million and tax credit carryforwards of $77.4 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 | Tax Credit | ||||||||||||
Carryforwards | Carryforwards | ||||||||||||
(In thousands) | |||||||||||||
2014 – 2018 | $ | 60,363 | $ | 27,678 | |||||||||
Thereafter | 180,756 | 43,502 | |||||||||||
No expiration date | 204,681 | 6,220 | |||||||||||
Total | $ | 445,800 | $ | 77,400 | |||||||||
Management considered all available evidence under existing tax law and anticipated expiration of tax statutes and determined that a valuation allowance of $56.8 million was required as of December 31, 2013 for those loss and tax credit carryforwards that are not expected to provide future tax benefits. In addition, management determined that a valuation allowance of $7.8 million was required as of December 31, 2013 for those deferred tax assets for which there is not sufficient evidence as to its ultimate utilization, primarily related to certain foreign affiliates. Changes in the valuation allowance for 2013 include increases in the valuation allowance for 2013 foreign losses without benefits, decreases in the valuation allowances for certain deferred tax assets, and decreases in the valuation allowance for expirations, projected utilization of tax loss and tax credit carryforwards and changes in tax rates. Management believes it is more-likely-than-not that Mattel will generate sufficient taxable income in the appropriate future periods to realize the benefit of the remaining net deferred income tax assets of $454.2 million. Changes in enacted tax laws, audits in various jurisdictions around the world, settlements, or acquisitions could negatively impact Mattel’s ability to fully realize all of the benefits of its remaining net deferred tax assets. | |||||||||||||
Differences between the provision for income taxes at the US federal statutory income tax rate and the provision in the consolidated statements of operations are as follows: | |||||||||||||
For the Year | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(In thousands) | |||||||||||||
Provision at US federal statutory rate | $ | 384,695 | $ | 330,766 | $ | 339,736 | |||||||
(Decrease) increase resulting from: | |||||||||||||
Foreign earnings taxed at different rates, including withholding taxes | (165,768 | ) | (157,488 | ) | (139,476 | ) | |||||||
Foreign losses without income tax benefit | 3,215 | 1,047 | 2,883 | ||||||||||
State and local taxes, net of US federal benefit | 4,854 | 6,856 | 4,833 | ||||||||||
Adjustments to previously accrued taxes | (32,200 | ) | (16,000 | ) | (6,800 | ) | |||||||
Other | 388 | 3,400 | 989 | ||||||||||
Provision for income taxes | $ | 195,184 | $ | 168,581 | $ | 202,165 | |||||||
In assessing whether uncertain tax positions should be recognized in its financial statements, Mattel first determines whether it is more-likely-than-not (a greater than 50 percent likelihood) 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 unrecognized tax benefits for US 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 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 unrecognized tax benefits is as follows: | |||||||||||||
For the Year | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(In thousands) | |||||||||||||
Unrecognized tax benefits at January 1 | $ | 285,560 | $ | 262,560 | $ | 252,570 | |||||||
Increases for positions taken in current year | 12,997 | 14,800 | 13,480 | ||||||||||
Increases for positions taken in a prior year | 14,289 | 21,030 | 2,280 | ||||||||||
Decreases for positions taken in a prior year | (186,555 | ) | (700 | ) | (980 | ) | |||||||
Decreases for settlements with taxing authorities | (5,135 | ) | (800 | ) | (1,390 | ) | |||||||
Decreases for lapses in the applicable statute of limitations | (9,786 | ) | (11,330 | ) | (3,400 | ) | |||||||
Unrecognized tax benefits at December 31 | $ | 111,370 | $ | 285,560 | $ | 262,560 | |||||||
Of the $111.4 million of unrecognized tax benefits as of December 31, 2013, $106.9 million would impact the effective tax rate if recognized. | |||||||||||||
During 2013, Mattel recognized $1.0 million of interest and penalties related to unrecognized tax benefits, which are reflected in provision for income taxes in the consolidated statements of operations. As of December 31, 2013, Mattel accrued $6.1 million in interest and penalties related to unrecognized tax benefits. Of this balance, $5.4 million would impact the effective tax rate if recognized. | |||||||||||||
In August 2013, Mattel reached a settlement with the Internal Revenue Service (“IRS”) Office of Appeals regarding all unresolved issues in the IRS’s examination of Mattel’s 2008 and 2009 federal income tax returns. As a result, Mattel’s total unrecognized tax benefits decreased by $190.0 million. A majority of the decrease related to a capital loss for which Mattel recognized no financial statement benefit. | |||||||||||||
In the normal course of business, Mattel is regularly audited by federal, state, local and foreign tax authorities. The IRS is currently auditing Mattel’s 2010 and 2011 federal income tax returns. The IRS audit plan calls for the completion of the current examination in the first quarter of 2014. While it is reasonably possible that a significant increase or decrease in Mattel’s unrecognized tax benefits may occur in the next twelve months related to this IRS audit, a current estimate of the range of reasonably possible outcomes cannot be made at this time. | |||||||||||||
Mattel files multiple state and local income tax returns and remains subject to examination in various of these jurisdictions, including California for the 2008 through 2013 tax years, New York for the 2007 through 2013 tax years, and Wisconsin for the 2008 through 2013 tax years. Mattel files multiple foreign income tax returns and remains subject to examination in major foreign jurisdictions, including Hong Kong for the 2007 through 2013 tax years, Brazil, Mexico and Netherlands for the 2008 through 2013 tax years. Based on the current status of state and foreign audits, Mattel believes it is reasonably possible that in the next 12 months, the total unrecognized tax benefits could decrease by approximately $17 million related to the settlement of tax audits and/or the expiration of statutes of limitations. The ultimate settlement of any particular issue with the applicable taxing authority could have a material impact on Mattel’s consolidated financial statements. | |||||||||||||
The income tax provision included net tax benefits of $32.2 million, $16.0 million, and $6.8 million in 2013, 2012, and 2011, respectively, primarily related to reassessments of prior years’ tax liabilities based on the status of audits and tax filings in various jurisdictions around the world, settlements, and enacted tax law changes. | |||||||||||||
The cumulative amount of undistributed earnings of foreign subsidiaries that Mattel intends to indefinitely reinvest and upon which no deferred US income taxes have been provided is approximately $5.9 billion as of December 31, 2013. Management periodically reviews the undistributed earnings of its foreign subsidiaries and reassesses the intent to indefinitely reinvest such earnings. It is not practicable for Mattel to determine the deferred tax liability associated with these undistributed earnings due to the availability of foreign tax credits, the complexity of our international holding company structure, the rules governing the utilization of foreign tax credits, and the interplay between utilization of such foreign tax credits and Mattel’s other significant tax attributes. | |||||||||||||
US GAAP requires that windfall income tax benefits related to the exercise of nonqualified stock options and vesting of other stock compensation awards be credited to additional paid-in capital in the period in which such amounts reduce current taxes payable. The exercise of nonqualified stock options and vesting of other stock compensation awards resulted in an increase to additional paid-in capital for related windfall income tax benefits totaling $50.4 million, $35.8 million, and $24.2 million in 2013, 2012, and 2011, respectively. |
Employee_Benefit_Plans
Employee Benefit Plans | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Employee Benefit Plans | ' | ||||||||||||||||||||||||
Note 4—Employee Benefit Plans | |||||||||||||||||||||||||
Mattel and certain of its subsidiaries have qualified and nonqualified retirement plans covering substantially all employees of these companies. These plans include defined benefit pension plans, defined contribution retirement plans, postretirement benefit plans, and deferred compensation and excess benefit plans. In addition, Mattel makes contributions to government-mandated retirement plans in countries outside the US where its employees work. | |||||||||||||||||||||||||
A summary of retirement plan expense is as follows: | |||||||||||||||||||||||||
For the Year | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
Defined contribution retirement plans | $ | 43,694 | $ | 40,266 | $ | 36,873 | |||||||||||||||||||
Defined benefit pension plans | 30,747 | 33,597 | 37,597 | ||||||||||||||||||||||
Deferred compensation and excess benefit plans | 9,298 | 5,740 | 730 | ||||||||||||||||||||||
Postretirement benefit plans | 2,245 | 1,607 | 1,601 | ||||||||||||||||||||||
$ | 85,984 | $ | 81,210 | $ | 76,801 | ||||||||||||||||||||
Defined Benefit Pension and Postretirement Benefit Plans | |||||||||||||||||||||||||
Mattel provides defined benefit pension plans for eligible domestic employees, which are intended to comply with the requirements of the Employee Retirement Income Security Act of 1974 (“ERISA”). Some of Mattel’s foreign subsidiaries have defined benefit pension plans covering substantially all of their eligible employees. Mattel funds these plans in accordance with the terms of the plans and local statutory requirements, which differ for each of the countries in which the subsidiaries are located. Mattel also has unfunded postretirement health insurance plans covering certain eligible domestic employees. | |||||||||||||||||||||||||
A summary of the components of Mattel’s net periodic benefit cost and other changes in plan assets and benefit obligations recognized in other comprehensive income for the years ended December 31 is as follows: | |||||||||||||||||||||||||
Defined Benefit Pension Plans | Postretirement Benefit Plans | ||||||||||||||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
Net periodic benefit cost: | |||||||||||||||||||||||||
Service cost | $ | 12,982 | $ | 13,285 | $ | 13,610 | $ | 82 | $ | 79 | $ | 73 | |||||||||||||
Interest cost | 25,580 | 29,530 | 28,433 | 1,585 | 1,411 | 1,576 | |||||||||||||||||||
Expected return on plan assets | (29,786 | ) | (31,270 | ) | (25,714 | ) | — | — | — | ||||||||||||||||
Amortization of prior service (credit) cost | (1,057 | ) | (502 | ) | 1,776 | — | — | — | |||||||||||||||||
Recognized actuarial loss (gain) | 21,193 | 19,020 | 19,492 | 578 | 117 | (48 | ) | ||||||||||||||||||
Settlement loss | 1,835 | 3,534 | — | — | — | — | |||||||||||||||||||
Net periodic benefit cost | $ | 30,747 | $ | 33,597 | $ | 37,597 | $ | 2,245 | $ | 1,607 | $ | 1,601 | |||||||||||||
Other changes in plan assets and benefit obligations recognized in other comprehensive income: | |||||||||||||||||||||||||
Net actuarial (gain) loss | $ | (95,744 | ) | $ | 27,144 | $ | 62,687 | $ | 3,470 | $ | 4,755 | $ | (1,249 | ) | |||||||||||
Prior service cost (credit) | — | (11,789 | ) | 2 | — | — | — | ||||||||||||||||||
Amortization of prior service credit (cost) | 1,057 | 501 | (1,776 | ) | — | — | — | ||||||||||||||||||
Total recognized in other comprehensive income (a) | $ | (94,687 | ) | $ | 15,856 | $ | 60,913 | $ | 3,470 | $ | 4,755 | $ | (1,249 | ) | |||||||||||
Total recognized in net periodic benefit cost and other comprehensive income | $ | (63,940 | ) | $ | 49,453 | $ | 98,510 | $ | 5,715 | $ | 6,362 | $ | 352 | ||||||||||||
(a) | Amounts exclude related tax expense (benefit) of $32.5 million, $(2.3) million, and $(21.6) million, during 2013, 2012, and 2011, respectively, which are also included in other comprehensive income. | ||||||||||||||||||||||||
Net periodic benefit cost for Mattel’s domestic defined benefit pension and postretirement benefit plans was calculated on January 1 of each year using the following assumptions: | |||||||||||||||||||||||||
For the Year | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
Defined benefit pension plans: | |||||||||||||||||||||||||
Discount rate | 4.00% | 4.50% | 5.20% | ||||||||||||||||||||||
Weighted average rate of future compensation increases | 3.80% | 3.80% | 3.80% | ||||||||||||||||||||||
Long-term rate of return on plan assets | 8.00% | 8.00% | 8.00% | ||||||||||||||||||||||
Postretirement benefit plans: | |||||||||||||||||||||||||
Discount rate | 4.00% | 4.50% | 5.20% | ||||||||||||||||||||||
Annual increase in Medicare Part B premium | 6.00% | 6.00% | 6.00% | ||||||||||||||||||||||
Health care cost trend rate: | |||||||||||||||||||||||||
Pre-65 | 8.50% | 7.50% | 8.00% | ||||||||||||||||||||||
Post-65 | 7.50% | 7.50% | 8.00% | ||||||||||||||||||||||
Ultimate cost trend rate: | |||||||||||||||||||||||||
Pre-65 | 6.10% | 5.00% | 5.00% | ||||||||||||||||||||||
Post-65 | 5.40% | 5.00% | 5.00% | ||||||||||||||||||||||
Year that the rate reaches the ultimate cost trend rate: | |||||||||||||||||||||||||
Pre-65 | 2030 | 2017 | 2017 | ||||||||||||||||||||||
Post-65 | 2030 | 2017 | 2017 | ||||||||||||||||||||||
Discount rates, weighted average rates of future compensation increases, and long-term rates of return on plan assets for Mattel’s foreign defined benefit pension plans differ from the assumptions used for Mattel’s domestic defined benefit pension plans due to differences in local economic conditions from which the non-US plans are based. The rates shown in the preceding table are indicative of the weighted average rates of all Mattel’s defined benefit pension plans given the relative insignificance of the foreign plans to the consolidated total. | |||||||||||||||||||||||||
The estimated net actuarial loss and prior service credit for the domestic defined benefit pension plans that will be amortized from accumulated other comprehensive loss into net periodic benefit cost in 2014 is $10.6 million. The estimated net actuarial loss for the domestic postretirement benefit plans that will be amortized from accumulated other comprehensive loss into net periodic benefit cost in 2014 is $0.2 million. | |||||||||||||||||||||||||
Mattel used a measurement date of December 31, 2013 for its defined benefit pension and postretirement benefit plans. A summary of the changes in benefit obligation and plan assets is as follows: | |||||||||||||||||||||||||
Defined Benefit | Postretirement | ||||||||||||||||||||||||
Pension Plans | Benefit Plans | ||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
Change in Benefit Obligation: | |||||||||||||||||||||||||
Benefit obligation, beginning of year | $ | 669,351 | $ | 610,016 | $ | 35,433 | $ | 32,334 | |||||||||||||||||
Service cost | 12,982 | 13,285 | 82 | 79 | |||||||||||||||||||||
Interest cost | 25,580 | 29,530 | 1,585 | 1,411 | |||||||||||||||||||||
Plan amendments | — | (11,791 | ) | — | — | ||||||||||||||||||||
Impact of currency exchange rate changes | (2,206 | ) | 1,713 | — | — | ||||||||||||||||||||
Actuarial (gain) loss | (57,418 | ) | 74,433 | 4,048 | 4,872 | ||||||||||||||||||||
Benefits paid | (31,351 | ) | (47,835 | ) | (3,234 | ) | (3,263 | ) | |||||||||||||||||
Benefit obligation, end of year | $ | 616,938 | $ | 669,351 | $ | 37,914 | $ | 35,433 | |||||||||||||||||
Change in Plan Assets: | |||||||||||||||||||||||||
Plan assets at fair value, beginning of year | $ | 406,163 | $ | 338,081 | $ | — | $ | — | |||||||||||||||||
Actual return on plan assets (a) | 47,529 | 57,028 | — | — | |||||||||||||||||||||
Employer contributions | 32,078 | 55,752 | 3,234 | 3,263 | |||||||||||||||||||||
Impact of currency exchange rate changes | 2,026 | 3,137 | — | — | |||||||||||||||||||||
Benefits paid | (31,351 | ) | (47,835 | ) | (3,234 | ) | (3,263 | ) | |||||||||||||||||
Plan assets at fair value, end of year | $ | 456,445 | $ | 406,163 | $ | — | $ | — | |||||||||||||||||
Net Amount Recognized in Consolidated Balance Sheets: | |||||||||||||||||||||||||
Funded status, end of year | $ | (160,493 | ) | $ | (263,188 | ) | $ | (37,914 | ) | $ | (35,433 | ) | |||||||||||||
Current accrued benefit liability | (2,661 | ) | (11,407 | ) | (2,700 | ) | (2,600 | ) | |||||||||||||||||
Noncurrent accrued benefit liability | (157,832 | ) | (251,781 | ) | (35,214 | ) | (32,833 | ) | |||||||||||||||||
Total accrued benefit liability | $ | (160,493 | ) | $ | (263,188 | ) | $ | (37,914 | ) | $ | (35,433 | ) | |||||||||||||
Amounts Recognized in Accumulated Other Comprehensive Loss (b): | |||||||||||||||||||||||||
Net actuarial loss | $ | 205,091 | $ | 300,835 | $ | 7,119 | $ | 3,649 | |||||||||||||||||
Prior service (credit) | (10,093 | ) | (11,150 | ) | — | — | |||||||||||||||||||
$ | 194,998 | $ | 289,685 | $ | 7,119 | $ | 3,649 | ||||||||||||||||||
(a) | The 2012 actual return on plan assets from defined benefit pension plan includes an increase of approximately $12 million related to assets transferred to the Fisher-Price Pension Plan resulting from its conversion to a cash balance plan. | ||||||||||||||||||||||||
(b) | Amounts exclude related tax benefits of $70.2 million and $102.7 million for December 31, 2013 and 2012, respectively, which are also included in accumulated other comprehensive loss. | ||||||||||||||||||||||||
The accumulated benefit obligation differs from the projected benefit obligation in that it assumes future compensation levels will remain unchanged. Mattel’s accumulated benefit obligation for its defined benefit pension plans as of December 31, 2013 and 2012 totaled $579.0 million and $597.6 million, respectively. | |||||||||||||||||||||||||
The assumptions used in determining the projected and accumulated benefit obligations of Mattel’s domestic defined benefit pension and postretirement benefit plans are as follows: | |||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Defined benefit pension plans: | |||||||||||||||||||||||||
Discount rate | 4.70% | 4.00% | |||||||||||||||||||||||
Weighted average rate of future compensation increases | 3.80% | 3.80% | |||||||||||||||||||||||
Postretirement benefit plans: | |||||||||||||||||||||||||
Discount rate | 4.70% | 4.00% | |||||||||||||||||||||||
Annual increase in Medicare Part B premium | 6.00% | 6.00% | |||||||||||||||||||||||
Health care cost trend rate: | |||||||||||||||||||||||||
Pre-65 | 8.50% | 8.50% | |||||||||||||||||||||||
Post-65 | 7.50% | 7.50% | |||||||||||||||||||||||
Ultimate cost trend rate: | |||||||||||||||||||||||||
Pre-65 | 6.10% | 6.10% | |||||||||||||||||||||||
Post-65 | 5.40% | 5.40% | |||||||||||||||||||||||
Year that the rate reaches the ultimate cost trend rate: | |||||||||||||||||||||||||
Pre-65 | 2030 | 2030 | |||||||||||||||||||||||
Post-65 | 2030 | 2030 | |||||||||||||||||||||||
A one percentage point increase/(decrease) in the assumed health care cost trend rate for each future year would impact the postretirement benefit obligation as of December 31, 2013 by $3.0 million and $(2.5) million, respectively, while a one percentage point increase/(decrease) would impact the service and interest cost recognized for 2013 by $0.1 million and $(0.1) million, respectively. | |||||||||||||||||||||||||
The estimated future benefit payments for Mattel’s defined benefit pension and postretirement benefit plans are as follows: | |||||||||||||||||||||||||
Defined Benefit | Postretirement | ||||||||||||||||||||||||
Pension Plans | Benefit Plans | ||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
2014 | $ | 32,289 | $ | 2,700 | |||||||||||||||||||||
2015 | 36,071 | 2,600 | |||||||||||||||||||||||
2016 | 42,815 | 2,500 | |||||||||||||||||||||||
2017 | 34,583 | 2,500 | |||||||||||||||||||||||
2018 | 35,934 | 2,500 | |||||||||||||||||||||||
2019 – 2023 | 203,523 | 11,100 | |||||||||||||||||||||||
Mattel expects to make cash contributions totaling approximately $29 million to its defined benefit pension and postretirement benefit plans in 2014, which includes approximately $8 million for benefit payments for its unfunded plans. | |||||||||||||||||||||||||
Mattel periodically commissions a study of the plans’ assets and liabilities to determine an asset allocation that would best match expected cash flows from the plans’ assets to expected benefit payments. Mattel monitors the returns earned by the plans’ assets and reallocates investments as needed. Mattel’s overall investment strategy is to achieve an adequately diversified asset allocation mix of investments that provides for both near-term benefit payments as well as long-term growth. The assets are invested in a combination of indexed and actively managed funds. The target allocations for Mattel’s domestic plan assets, which comprise 81% of Mattel’s total plan assets, are 35% in US equities, 35% in non-US equities, 20% in US long-term bonds, and 10% in US Treasury inflation-protected securities. The US equities are benchmarked against the S&P 500, and the non-US equities are benchmarked against a combination of developed and emerging markets indices. Fixed income securities are long-duration bonds intended to closely match the duration of the liabilities and include US government treasuries and agencies, corporate bonds from various industries, and mortgage-backed and asset-backed securities. | |||||||||||||||||||||||||
Mattel’s defined benefit pension plan assets are measured and reported in the financial statements at fair value using inputs, which are more fully described in “Note 10 to the Consolidated Financial Statements—Fair Value Measurements,” as follows: | |||||||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
Collective trust funds: | |||||||||||||||||||||||||
US equity securities | $ | — | $ | 174,735 | $ | — | $ | 174,735 | |||||||||||||||||
International equity securities | — | 164,998 | — | 164,998 | |||||||||||||||||||||
International fixed income | — | 41,523 | — | 41,523 | |||||||||||||||||||||
US government and US government agency securities | — | 31,434 | — | 31,434 | |||||||||||||||||||||
US corporate debt instruments | — | 21,171 | — | 21,171 | |||||||||||||||||||||
International corporate debt instruments | — | 4,996 | — | 4,996 | |||||||||||||||||||||
Mutual funds | 1,520 | 7,221 | — | 8,741 | |||||||||||||||||||||
Other | — | 8,847 | — | 8,847 | |||||||||||||||||||||
Total | $ | 1,520 | $ | 454,925 | $ | — | $ | 456,445 | |||||||||||||||||
31-Dec-12 | |||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
Collective trust funds: | |||||||||||||||||||||||||
US equity securities | $ | — | $ | 148,435 | $ | — | $ | 148,435 | |||||||||||||||||
International equity securities | — | 147,756 | — | 147,756 | |||||||||||||||||||||
International fixed income | — | 36,580 | — | 36,580 | |||||||||||||||||||||
US government and US government agency securities | — | 35,944 | — | 35,944 | |||||||||||||||||||||
US corporate debt instruments | — | 20,514 | — | 20,514 | |||||||||||||||||||||
International corporate debt instruments | — | 5,455 | — | 5,455 | |||||||||||||||||||||
Mutual funds | 1,422 | 3,661 | — | 5,083 | |||||||||||||||||||||
Other | — | 6,396 | — | 6,396 | |||||||||||||||||||||
Total | $ | 1,422 | $ | 404,741 | $ | — | $ | 406,163 | |||||||||||||||||
The fair value of collective trust funds and mutual funds shares are determined based on the net asset value of shares held at year-end. The fair value of US government securities, US government agency securities, and corporate debt instruments are determined based on quoted market prices or are estimated using pricing models with observable inputs, quoted prices of securities with similar characteristics, or discounted cash flows. | |||||||||||||||||||||||||
Mattel’s defined benefit pension plan assets are not directly invested in Mattel common stock. Mattel believes that the long-term rate of return on plan assets of 8.0% as of December 31, 2013 is reasonable based on historical returns. | |||||||||||||||||||||||||
During 1999, Mattel amended the Fisher-Price Pension Plan to convert it from a career-average plan to a cash balance plan and applied for a determination letter from the IRS. In 2003 and 2011, Mattel further amended the Fisher-Price Pension Plan to reflect changes in regulations and court cases associated with cash balance plans and submitted applications for a determination letter to the IRS. Mattel received a favorable determination letter in February 2012 and converted the Fisher-Price Pension Plan to a cash balance plan in July 2012. The Fisher-Price Pension Plan was renamed the Mattel Cash Balance Plan in connection with the conversion. The plan conversion resulted in a reduction in the benefit obligation of approximately $12 million, which was recognized in 2012. | |||||||||||||||||||||||||
Defined Contribution Retirement Plans | |||||||||||||||||||||||||
Domestic employees are eligible to participate in a 401(k) savings plan, the Mattel, Inc. Personal Investment Plan (the “Plan”), sponsored by Mattel, which is a funded defined contribution plan intended to comply with ERISA’s requirements. Contributions to the Plan include voluntary contributions by eligible employees and employer automatic and matching contributions by Mattel. The Plan allows employees to allocate both their voluntary contributions and their employer automatic and matching contributions to a variety of investment funds, including a fund that is invested in Mattel common stock (the “Mattel Stock Fund”). Employees are not required to allocate any of their Plan account balance to the Mattel Stock Fund, allowing employees to limit or eliminate their exposure to market changes in Mattel’s stock price. Furthermore, the Plan limits the percentage of the employee’s total account balance that may be allocated to the Mattel Stock Fund to 25%. Employees may generally reallocate their account balances on a daily basis. However, pursuant to Mattel’s insider trading policy, employees classified as insiders and restricted personnel under Mattel’s insider trading policy are limited to certain periods in which they may make allocations into or out of the Mattel Stock Fund. | |||||||||||||||||||||||||
Certain non-US employees participate in other defined contribution retirement plans with varying vesting and contribution provisions. | |||||||||||||||||||||||||
Deferred Compensation and Excess Benefit Plans | |||||||||||||||||||||||||
Mattel maintains a deferred compensation plan that permits certain officers and key employees to elect to defer portions of their compensation. The deferred compensation plan, together with certain contributions made by Mattel and participating employees to an excess benefit plan, earns various rates of return. The liability for these plans as of December 31, 2013 and 2012 was $68.0 million and $55.9 million, respectively, and is included in other noncurrent liabilities in the consolidated balance sheets. Changes in the market value of the participant-selected investment options are recorded as retirement plan expense within other selling and administrative expenses in the consolidated statements of operations. Separately, Mattel has purchased group trust-owned life insurance contracts designed to assist in funding these programs. The cash surrender value of these policies, valued at $66.0 million and $54.3 million as of December 31, 2013 and 2012, respectively, are held in an irrevocable grantor trust, the assets of which are subject to the claims of Mattel’s creditors and are included in other noncurrent assets in the consolidated balance sheets. | |||||||||||||||||||||||||
Incentive Compensation Plans | |||||||||||||||||||||||||
Mattel has annual incentive compensation plans under which officers and key employees may earn incentive compensation based on Mattel’s performance and are subject to certain approvals of the Compensation Committee of the Board of Directors. For 2013, 2012, and 2011, $65.0 million, $108.1 million, and $75.3 million, respectively, was charged to expense for awards under these plans. | |||||||||||||||||||||||||
Mattel had one long-term incentive program (“LTIP”) performance cycle in place for the time period between 2011 and 2013, which was established by the Compensation Committee of the Board of Directors in March 2011. | |||||||||||||||||||||||||
For the January 1, 2011—December 31, 2013 LTIP, Mattel granted performance-based restricted stock units (“Performance RSUs”) under the Mattel, Inc. 2010 Equity and Long-Term Compensation Plan to officers and certain employees 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) annual operating result targets for each year in the performance cycle using a net operating profit after taxes less capital charge measure and a net sales performance measure (“the performance-related components”), and (ii) Mattel’s total stock return (“TSR”) for the three-year performance cycle relative to the TSR realized by companies comprising the S&P 500 as of the first day of the performance cycle (“the market-related component”), adjusted for dividends declared during the three-year 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. For the performance-related components, the range of possible outcomes is that between zero and 0.5 million shares that can be earned for each of the three years during the three-year performance cycle. For the market-related component, the possible outcomes range from an upward adjustment of 0.5 million shares to a downward adjustment of 0.5 million shares to the results of the performance-related components over the three-year performance cycle. For the January 1, 2011—December 31, 2013 LTIP performance cycle, 1.0 million shares were earned relating to the performance-related components, 0.5 million shares were earned relating to the market-related component, and 0.1 million shares were earned related to dividend equivalent rights, resulting in a total of 1.6 million shares that vested in February 2014. | |||||||||||||||||||||||||
For the January 1, 2011—December 31, 2013 LTIP performance cycle, the weighted average grant date fair value of the performance-related and market-related components of the Performance RSUs were $42.30 and $4.59 per share, respectively, for 2013, $32.87 and $4.55 per share, respectively, for 2012, and $24.67 and $4.22 per share, respectively, for 2011. During 2013, $10.0 million was charged to expense relating to the performance-related components as the actual results were below the targeted performance level for 2013. During 2012, $12.4 million was charged to expense relating to the performance-related components as the 2012 actual results exceeded the 2012 performance threshold. During 2011, $7.1 million was charged to expense relating to the performance-related components as the 2011 actual results exceeded the 2011 performance threshold. Additionally, during 2013, 2012, and 2011, Mattel recognized share-based compensation expense of $1.4 million, $1.8 million, and $1.2 million, respectively, for the market-related component. | |||||||||||||||||||||||||
The fair values of the performance-related components were based on the closing stock prices of Mattel’s common stock on each of the grant dates. The fair values of the market-related component were estimated at the grant dates using a Monte Carlo valuation methodology. Share-based compensation is recognized as expense over the performance cycle using a straight-line attribution approach, reduced for estimated forfeitures. |
Seasonal_Financing_and_Debt
Seasonal Financing and Debt | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Seasonal Financing and Debt | ' | ||||||||||||||||
Note 5—Seasonal Financing and Debt | |||||||||||||||||
Seasonal Financing | |||||||||||||||||
Mattel maintains and periodically amends or replaces its domestic unsecured committed revolving credit facility with a commercial bank group. The facility is used as a back-up to Mattel’s commercial paper program, which is used as the primary source of financing for the seasonal working capital requirements of its domestic subsidiaries. The agreement governing the credit facility was amended and restated on March 11, 2013 to, among other things, (i) extend the maturity date of the credit facility to March 12, 2018, (ii) increase aggregate commitments under the credit facility to $1.60 billion, with an “accordion feature,” which allows Mattel to increase the aggregate availability under the credit facility to $1.85 billion under certain circumstances, (iii) decrease the applicable interest rate margins to a range of 0.00% to 0.75% above the applicable base rate for base rate loans and 0.88% to 1.75% above the applicable LIBOR for Eurodollar rate loans, in each case depending on Mattel’s senior unsecured long-term debt rating, and (iv) decrease commitment fees to a range of 0.08% to 0.28% of the unused commitments under the credit facility. | |||||||||||||||||
The amended credit facility has a borrowing capacity of up to $1.60 billion over a term of five years. Prior to the amendment, the facility permitted Mattel to borrow up to $1.40 billion and had two years remaining to maturity. The proportion of unamortized debt issuance costs from the prior facility renewal related to creditors involved in both the prior facility and amended facility and borrowing costs incurred as a result of the amendment were deferred and will be amortized over the term of the amended facility. | |||||||||||||||||
Mattel is required to meet financial ratio covenants at the end of each quarter and fiscal year, using the formulae specified in the credit agreement to calculate the ratios. Mattel was in compliance with such covenants at the end of each fiscal quarter and fiscal year in 2013. As of December 31, 2013, Mattel’s consolidated debt-to-EBITDA ratio, as calculated per the terms of the credit agreement, was 1.16 to 1 (compared to a maximum allowed of 3.00 to 1), and Mattel’s interest coverage ratio was 17.69 to 1 (compared to a minimum required of 3.50 to 1). | |||||||||||||||||
The credit agreement is a material agreement, and failure to comply with the financial ratio 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. | |||||||||||||||||
Mattel believes its cash on hand, amounts available under its credit facility, and its foreign credit lines will be adequate to meet its seasonal financing requirements in 2014. | |||||||||||||||||
To finance seasonal working capital requirements of certain foreign subsidiaries, Mattel avails itself of individual short-term credit lines with a number of banks. As of December 31, 2013, foreign credit lines totaled approximately $349 million. Mattel expects to extend the majority of these credit lines throughout 2014. | |||||||||||||||||
Additionally, sales of foreign receivables occur periodically to finance seasonal working capital requirements. The outstanding amounts of accounts receivable that have been sold under international factoring arrangements were $25.6 million and $25.3 million at December 31, 2013 and 2012, respectively. These amounts have been excluded from Mattel’s consolidated balance sheets. | |||||||||||||||||
Short-Term Borrowings | |||||||||||||||||
As of December 31, 2013 and 2012, Mattel had foreign short-term bank loans outstanding of $4.3 million and $9.8 million, respectively. As of December 31, 2013 and 2012, Mattel had no borrowings outstanding under the credit facility. | |||||||||||||||||
During 2013 and 2012, Mattel had average borrowings of $38.0 million and $44.3 million, respectively, under its foreign short-term bank loans, and $262.3 million and $661.9 million, respectively, under the credit facility and other short-term borrowings, to help finance its seasonal working capital requirements. The weighted average interest rate on foreign short-term bank loans during 2013 and 2012 was 9.4% and 7.8%, respectively. The weighted average interest rate on the credit facility and other short-term borrowings during 2013 and 2012 was 0.2% and 0.4%, respectively. | |||||||||||||||||
Long-Term Debt | |||||||||||||||||
In March 2013, Mattel issued $250.0 million aggregate principal amount of 1.70% senior unsecured notes (“1.70% Senior Notes”) due March 15, 2018 and $250.0 million aggregate principal amount of 3.15% senior unsecured notes (“3.15% Senior Notes”) due March 15, 2023 (collectively, “2013 Senior Notes”). Interest on the 2013 Senior Notes is payable semi-annually on March 15 and September 15 of each year, beginning September 15, 2013. Mattel may redeem all or part of the 1.70% Senior Notes at any time or from time to time at its option, at a redemption price equal to the greater of (i) 100% of the principal amount of the notes being redeemed plus accrued and unpaid interest to but excluding the redemption date, and (ii) a “make-whole” amount based on the yield of a comparable US Treasury security plus 15 basis points. Mattel may redeem all or part of the 3.15% Senior Notes at any time or from time to time prior to December 15, 2022 (three months prior to the maturity date of the 3.15% Senior Notes) at its option, at a redemption price equal to the greater of (i) 100% of the principal amount of the notes being redeemed plus accrued and unpaid interest to but excluding the redemption date, and (ii) a “make-whole” amount based on the yield of a comparable US Treasury security plus 20 basis points. Mattel may redeem all or part of the 3.15% Senior Notes at any time or from time to time on or after December 15, 2022 (three months prior to the maturity date for the 3.15% Senior Notes) at its option, at a redemption price equal to 100% of the principal amount of the notes to be redeemed plus accrued and unpaid interest to but excluding the redemption date. | |||||||||||||||||
Mattel’s long-term debt consists of the following: | |||||||||||||||||
December 31, | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
(In thousands) | |||||||||||||||||
Medium-term notes | $ | — | $ | 50,000 | |||||||||||||
2008 Senior Notes | — | 350,000 | |||||||||||||||
2010 Senior Notes due October 2020 and October 2040 | 500,000 | 500,000 | |||||||||||||||
2011 Senior Notes due November 2016 and November 2041 | 600,000 | 600,000 | |||||||||||||||
2013 Senior Notes due March 2018 and March 2023 | 500,000 | — | |||||||||||||||
1,600,000 | 1,500,000 | ||||||||||||||||
Less: current portion | — | (400,000 | ) | ||||||||||||||
Total long-term debt | $ | 1,600,000 | $ | 1,100,000 | |||||||||||||
Mattel’s 2010 Senior Notes bear interest at fixed rates ranging from 4.35% to 6.20%, with a weighted average interest rate of 5.275% as of December 31, 2013 and 2012. Mattel’s 2011 Senior Notes bear interest at fixed rates ranging from 2.50% to 5.45%, with a weighted average interest rate of 3.975% as of December 31, 2013 and 2012. Mattel’s 2013 Senior Notes bear interest at fixed rates ranging from 1.70% to 3.15%, with a weighted average interest rate of 2.425% as of December 31, 2013. | |||||||||||||||||
During 2013, Mattel repaid the remaining $350.0 million of its 2008 Senior Notes in connection with their scheduled maturity. During 2013 and 2012, Mattel repaid $50.0 million of its Medium-term notes in connection with their scheduled maturities. | |||||||||||||||||
The aggregate amount of long-term debt maturing in the next five years and thereafter is as follows: | |||||||||||||||||
2010 | 2011 | 2013 | Total | ||||||||||||||
Senior | Senior | Senior | |||||||||||||||
Notes | Notes | Notes | |||||||||||||||
(In thousands) | |||||||||||||||||
2014 | $ | — | $ | — | $ | — | $ | — | |||||||||
2015 | — | — | — | — | |||||||||||||
2016 | — | 300,000 | — | 300,000 | |||||||||||||
2017 | — | — | — | — | |||||||||||||
2018 | — | — | 250,000 | 250,000 | |||||||||||||
Thereafter | 500,000 | 300,000 | 250,000 | 1,050,000 | |||||||||||||
$ | 500,000 | $ | 600,000 | $ | 500,000 | $ | 1,600,000 | ||||||||||
Stockholders_Equity
Stockholders' Equity | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Stockholders' Equity | ' | ||||||||||||||||
Note 6—Stockholders’ Equity | |||||||||||||||||
Preference Stock | |||||||||||||||||
Mattel is authorized to issue up to 20.0 million shares of $0.01 par value preference stock, of which none is currently outstanding. | |||||||||||||||||
Preferred Stock | |||||||||||||||||
Mattel is authorized to issue up to 3.0 million shares of $1.00 par value preferred stock, of which none is currently outstanding. | |||||||||||||||||
Common Stock Repurchase Program | |||||||||||||||||
During 2013, Mattel repurchased 11.0 million shares of its common stock at a cost of $469.2 million. During 2012, Mattel repurchased 2.3 million shares of its common stock at a cost of $77.9 million. During 2011, Mattel repurchased 20.4 million shares of its common stock at a cost of $536.3 million. During both 2013 and 2011, the Board of Directors authorized Mattel to increase its share repurchase program by $500.0 million. At December 31, 2013, share repurchase authorizations of $380.2 million had not been executed. Repurchases will take place from time to time, depending on market conditions. Mattel’s share repurchase program has no expiration date. | |||||||||||||||||
Dividends | |||||||||||||||||
During 2013, 2012, and 2011, Mattel paid total dividends per share of $1.44, $1.24, and $0.92, respectively, to holders of its common stock. The Board of Directors declared the dividends on a quarterly basis, and Mattel paid the dividends during the quarters in which the dividends were declared. The payment of dividends on common stock is at the discretion of the Board of Directors and is subject to customary limitations. | |||||||||||||||||
Accumulated Other Comprehensive Loss | |||||||||||||||||
In 2013, Mattel adopted ASU 2013-02, Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income, which requires an entity to present either on the face of the statement where net income is presented or in the notes to the financial statements, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income. The following tables present changes in the accumulated balances for each component of other comprehensive income, including current period other comprehensive income and reclassifications out of accumulated other comprehensive income: | |||||||||||||||||
For the Year Ended December 31, 2013 | |||||||||||||||||
Derivative | Defined Benefit | Currency | Total | ||||||||||||||
Instruments | Pension Plans | Translation | |||||||||||||||
Adjustments | |||||||||||||||||
(In thousands) | |||||||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax, as of December 31, 2012 | $ | (2,583 | ) | $ | (190,656 | ) | $ | (271,247 | ) | $ | (464,486 | ) | |||||
Other comprehensive (loss) income before reclassifications | (13,103 | ) | 44,288 | (29,694 | ) | 1,491 | |||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | 4,897 | 14,422 | — | 19,319 | |||||||||||||
Net (decrease) increase in other comprehensive income | (8,206 | ) | 58,710 | (29,694 | ) | 20,810 | |||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax, as of December 31, 2013 | $ | (10,789 | ) | $ | (131,946 | ) | $ | (300,941 | ) | $ | (443,676 | ) | |||||
For the Year Ended December 31, 2012 | |||||||||||||||||
Derivative | Defined Benefit | Currency | Total | ||||||||||||||
Instruments | Pension Plans | Translation | |||||||||||||||
Adjustments | |||||||||||||||||
(In thousands) | |||||||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax, as of December 31, 2011 | $ | 24,616 | $ | (172,398 | ) | $ | (298,863 | ) | $ | (446,645 | ) | ||||||
Other comprehensive income (loss) before reclassifications | 2,734 | (32,390 | ) | 27,616 | (2,040 | ) | |||||||||||
Amounts reclassified from accumulated other comprehensive (loss) income | (29,933 | ) | 14,132 | — | (15,801 | ) | |||||||||||
Net (decrease) increase in other comprehensive income | (27,199 | ) | (18,258 | ) | 27,616 | (17,841 | ) | ||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax, as of December 31, 2012 | $ | (2,583 | ) | $ | (190,656 | ) | $ | (271,247 | ) | $ | (464,486 | ) | |||||
For the Year Ended December 31, 2011 | |||||||||||||||||
Derivative | Defined Benefit | Currency | Total | ||||||||||||||
Instruments | Pension Plans | Translation | |||||||||||||||
Adjustments | |||||||||||||||||
(In thousands) | |||||||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax, as of December 31, 2010 | $ | (3,127 | ) | $ | (134,314 | ) | $ | (221,758 | ) | $ | (359,199 | ) | |||||
Other comprehensive income (loss) before reclassifications | 17,900 | (51,303 | ) | (77,105 | ) | (110,508 | ) | ||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | 9,843 | 13,219 | — | 23,062 | |||||||||||||
Net increase (decrease) in other comprehensive income | 27,743 | (38,084 | ) | (77,105 | ) | (87,446 | ) | ||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax, as of December 31, 2011 | $ | 24,616 | $ | (172,398 | ) | $ | (298,863 | ) | $ | (446,645 | ) | ||||||
The following table presents the classification and amount of the reclassifications from accumulated other comprehensive income to the consolidated statement of operations: | |||||||||||||||||
For the Year | Statements of Operations | ||||||||||||||||
2013 | 2012 | 2011 | Classification | ||||||||||||||
(In thousands) | |||||||||||||||||
Derivative Instruments | |||||||||||||||||
(Loss) gain on foreign currency forward exchange contracts | $ | (5,735 | ) | $ | 29,978 | $ | (8,502 | ) | Cost of sales | ||||||||
838 | (45 | ) | (1,341 | ) | Provision for income taxes | ||||||||||||
$ | (4,897 | ) | $ | 29,933 | $ | (9,843 | ) | Net income | |||||||||
Defined Benefit Pension Plans | |||||||||||||||||
Amortization of prior service credit (cost) | $ | 1,057 | $ | 502 | $ | (1,776 | ) | (a) | |||||||||
Recognized actuarial loss | (21,771 | ) | (19,137 | ) | (19,444 | ) | (a) | ||||||||||
Settlement loss | (1,835 | ) | (3,534 | ) | — | (a) | |||||||||||
(22,549 | ) | (22,169 | ) | (21,220 | ) | ||||||||||||
8,127 | 8,037 | 8,001 | Provision for income taxes | ||||||||||||||
$ | (14,422 | ) | $ | (14,132 | ) | $ | (13,219 | ) | Net income | ||||||||
(a) | The amortization of prior service credit (cost), recognized actuarial loss, and settlement loss are included in the computation of net periodic benefit cost. Refer to “Note 4 to the Consolidated Financial Statements—Employee Benefit Plans” for additional information regarding Mattel’s net periodic benefit cost. | ||||||||||||||||
Currency Translation Adjustments | |||||||||||||||||
For 2013, currency translation adjustments resulted in a net loss of $29.7 million, primarily due to the weakening of the Brazilian real, Australian dollar, and Indonesian rupiah against the US dollar, partially offset by the strengthening of the Euro against the US dollar. For 2012, currency translation adjustments resulted in a net gain of $27.6 million, with gains from the strengthening of the Euro, Mexican peso, and British pound sterling against the US dollar, partially offset by the weakening of the Brazilian real against the US dollar. For 2011, currency translation adjustments resulted in a net loss of $77.1 million, with losses from the weakening of the Euro, Mexican peso, Brazilian real, and British pound sterling against the US dollar. |
ShareBased_Payments
Share-Based Payments | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Share-Based Payments | ' | ||||||||||||||||||||||||
Note 7—Share-Based Payments | |||||||||||||||||||||||||
Mattel Stock Option Plans | |||||||||||||||||||||||||
In May 2010, Mattel’s stockholders approved the Mattel, Inc. 2010 Equity and Long-Term Compensation Plan (the “2010 Plan”). Upon approval of the 2010 Plan, Mattel terminated its 2005 Equity Compensation Plan (the “2005 Plan”), except with respect to grants then outstanding under the 2005 Plan. Outstanding restricted stock unit (“RSU”) awards made under the 2005 Plan continue to vest pursuant to the terms of their respective grant agreements. Outstanding stock option grants under the 2005 Plan that have not expired or have not been terminated continue to be exercisable under the terms of their respective grant agreements. The terms of the 2010 Plan are substantially similar to the 2005 Plan. | |||||||||||||||||||||||||
Under the 2010 Plan, Mattel has the ability to grant nonqualified stock options, incentive stock options, stock appreciation rights, restricted stock, RSUs, dividend equivalent rights, performance awards, and shares of common stock to officers, employees, and other persons providing services to Mattel. Generally, options vest and become exercisable contingent upon the grantees’ continued employment or service with Mattel. Nonqualified stock options are granted at not less than 100% of the fair market value of Mattel’s common stock on the date of grant, expire no later than ten years from the date of grant, and vest on a schedule determined by the Compensation Committee of the Board of Directors, generally during a period of three years from the date of grant. In the event of a retirement of an employee aged 55 years or greater with 5 or more years of service, or the death or disability of an employee, that occurs in each case at least 6 months after the grant date, nonqualified stock options become fully vested. Similar provisions exist for non-employee directors. Time-vesting RSUs granted under the 2010 Plan are generally accompanied by dividend equivalent rights and generally vest over a period of three years from the date of grant. In the event of the involuntary termination of an employee aged 55 years or greater with 5 or more years of service, or the death or disability of an employee, that occurs at least 6 months after the grant date, RSUs become fully vested. The 2010 Plan also contains provisions regarding grants of equity compensation to the non-employee members of the Board of Directors. The 2010 Plan expires on March 25, 2020, except as to any grants then outstanding. | |||||||||||||||||||||||||
The number of shares of common stock available for grant under the 2010 Plan is subject to an aggregate limit of the sum of (i) 48 million shares, (ii) the number of shares that remained available for issuance under the 2005 Plan on May 12, 2010, and (iii) any shares subject to awards outstanding under the 2005 Plan that on or after May 12, 2010 are forfeited or otherwise terminate or expire without the issuance of shares to the holder of the award. The 2010 Plan is further subject to detailed share-counting rules. As a result of such share-counting rules, full-value grants such as grants of restricted stock or RSUs count against shares remaining available for grant at a higher rate than grants of stock options and stock appreciation rights. Each stock option or stock appreciation right grant is treated as using one available share for each share actually subject to such grant, whereas each restricted stock or RSU grant is treated as using three available shares for each share actually subject to such full-value grant. At December 31, 2013, there were approximately 27 million shares of common stock available for grant remaining under the 2010 Plan. | |||||||||||||||||||||||||
As of December 31, 2013, total unrecognized compensation cost related to unvested share-based payments totaled $75.9 million and is expected to be recognized over a weighted-average period of 2.0 years. | |||||||||||||||||||||||||
Stock Options | |||||||||||||||||||||||||
Mattel recognized compensation expense of $12.1 million, $13.8 million, and $14.5 million for stock options during 2013, 2012, and 2011, respectively, which is included within other selling and administrative expenses in the consolidated statements of operations. Income tax benefits related to stock option compensation expense recognized in the consolidated statements of operations during 2013, 2012, and 2011 totaled $3.8 million, $4.5 million, and $4.8 million, respectively. | |||||||||||||||||||||||||
The fair value of options granted has been estimated using the Black-Scholes valuation model. The expected life of the options used in this calculation is the period of time the options are expected to be outstanding and has been determined based on historical exercise experience. Expected stock price volatility is based on the historical volatility of Mattel’s stock for a period approximating the expected life, the expected dividend yield is based on Mattel’s most recent actual annual dividend payout, and the risk-free interest rate is based on the implied yield available on US Treasury zero-coupon issues approximating the expected life. The weighted average grant date fair value of options granted during 2013, 2012, and 2011 was $8.80, $7.32, and $5.76, respectively. The following weighted average assumptions were used in determining the fair value of options granted: | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
Expected life (in years) | 4.9 | 5 | 5.1 | ||||||||||||||||||||||
Risk-free interest rate | 1.5 | % | 0.7 | % | 1.4 | % | |||||||||||||||||||
Volatility factor | 31.8 | % | 35 | % | 34 | % | |||||||||||||||||||
Dividend yield | 3.4 | % | 3.6 | % | 3.5 | % | |||||||||||||||||||
The following is a summary of stock option information and weighted average exercise prices for Mattel’s stock options: | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
Shares | Weighted | Shares | Weighted | Shares | Weighted | ||||||||||||||||||||
Average | Average | Average | |||||||||||||||||||||||
Exercise | Exercise | Exercise | |||||||||||||||||||||||
Price | Price | Price | |||||||||||||||||||||||
(In thousands, except weighted average exercise price) | |||||||||||||||||||||||||
Outstanding at January 1 | 14,630 | $ | 22.34 | 19,299 | $ | 20.3 | 23,265 | $ | 19.48 | ||||||||||||||||
Granted | 1,488 | 42.7 | 1,827 | 34.29 | 2,211 | 26.38 | |||||||||||||||||||
Exercised | (6,828 | ) | 19.74 | (6,312 | ) | 19.5 | (5,977 | ) | 19.34 | ||||||||||||||||
Forfeited | (60 | ) | 33.18 | (134 | ) | 27.13 | (163 | ) | 20.5 | ||||||||||||||||
Canceled | (12 | ) | 20.02 | (50 | ) | 20.02 | (37 | ) | 17.46 | ||||||||||||||||
Outstanding at December 31 | 9,218 | $ | 27.48 | 14,630 | $ | 22.34 | 19,299 | $ | 20.3 | ||||||||||||||||
Exercisable at December 31 | 6,135 | $ | 22.7 | 10,971 | $ | 20.03 | 14,359 | $ | 19.39 | ||||||||||||||||
The intrinsic value of a stock option is the amount by which the current market value of the underlying stock exceeds the exercise price of an option. The total intrinsic value of options exercised during 2013, 2012, and 2011 was $156.6 million, $85.8 million, and $43.5 million, respectively. At December 31, 2013, options outstanding had an intrinsic value of $185.3 million, with a weighted average remaining life of 6.8 years. At December 31, 2013, options exercisable had an intrinsic value of $152.6 million, with a weighted average remaining life of 5.8 years. At December 31, 2013, stock options vested or expected to vest totaled 9.1 million shares, with a total intrinsic value of $184.2 million, weighted average exercise price of $27.31, and weighted average remaining life of 6.8 years. During 2013 approximately 2 million stock options vested. The total grant date fair value of stock options vested during 2013, 2012, and 2011 was approximately $13 million, $15 million, and $14 million, respectively. | |||||||||||||||||||||||||
Mattel uses treasury shares purchased under its share repurchase program to satisfy stock option exercises. Cash received from stock options exercised during 2013, 2012, and 2011 was $134.5 million, $122.3 million, and $115.6 million, respectively. | |||||||||||||||||||||||||
Restricted Stock Units | |||||||||||||||||||||||||
RSUs are valued at the market value on the date of grant and the expense is evenly attributed to the periods in which the restrictions lapse, which is three years from the date of grant. | |||||||||||||||||||||||||
Compensation expense recognized related to grants of RSUs was $38.2 million, $35.3 million, and $30.7 million in 2013, 2012, and 2011, respectively, and is included within other selling and administrative expenses in the consolidated statements of operations. Income tax benefits related to RSU compensation expense recognized in the consolidated statements of operations during 2013, 2012, and 2011 totaled $10.6 million, $9.6 million, and $9.0 million, respectively. | |||||||||||||||||||||||||
The following is a summary of RSU information and weighted average grant date fair values for Mattel’s RSUs: | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
Shares | Weighted | Shares | Weighted | Shares | Weighted | ||||||||||||||||||||
Average | Average | Average | |||||||||||||||||||||||
Grant Date | Grant Date | Grant Date | |||||||||||||||||||||||
Fair Value | Fair Value | Fair Value | |||||||||||||||||||||||
(In thousands, except weighted average grant date fair value) | |||||||||||||||||||||||||
Unvested at January 1 | 3,505 | $ | 28.24 | 3,732 | $ | 22.53 | 4,274 | $ | 19.49 | ||||||||||||||||
Granted | 1,116 | 42.82 | 1,417 | 34.43 | 1,663 | 26.38 | |||||||||||||||||||
Vested | (1,337 | ) | 24.53 | (1,479 | ) | 19.96 | (1,740 | ) | 19.01 | ||||||||||||||||
Forfeited | (248 | ) | 31.82 | (165 | ) | 26.47 | (465 | ) | 21.53 | ||||||||||||||||
Unvested at December 31 | 3,036 | $ | 34.94 | 3,505 | $ | 28.24 | 3,732 | $ | 22.53 | ||||||||||||||||
At December 31, 2013, RSUs expected to vest totaled 2.9 million shares, with a weighted average grant date fair value of $34.77. The total grant date fair value of RSUs vested during 2013, 2012, and 2011 was $32.8 million, $29.5 million, and $33.1 million, respectively. | |||||||||||||||||||||||||
In addition to the expense and share amounts described above, Mattel recognized compensation expense of $11.4 million, $14.2 million, and $8.3 million during 2013, 2012, and 2011, respectively, for Performance RSUs granted in connection with its January 1, 2011–December 31, 2013 LTIP, as more fully described in “Note 4 to the Consolidated Financial Statements—Employee Benefit Plans.” Income tax benefits related to Performance RSU compensation expense recognized in the consolidated statements of operations during 2013, 2012, and 2011 totaled $4.2 million, $5.2 million, and $3.1 million, respectively. |
Earnings_Per_Share
Earnings Per Share | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Earnings Per Share | ' | ||||||||||||
Note 8—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. Certain of Mattel’s RSUs are considered participating securities because they contain 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 Year | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(In thousands, except per share amounts) | |||||||||||||
Basic: | |||||||||||||
Net income | $ | 903,944 | $ | 776,464 | $ | 768,508 | |||||||
Less: Net income allocable to participating RSUs | (8,335 | ) | (7,730 | ) | (8,821 | ) | |||||||
Net income available for basic common shares | $ | 895,609 | $ | 768,734 | $ | 759,687 | |||||||
Weighted average common shares outstanding | 343,394 | 341,665 | 344,669 | ||||||||||
Basic net income per common share | $ | 2.61 | $ | 2.25 | $ | 2.2 | |||||||
Diluted: | |||||||||||||
Net income | $ | 903,944 | $ | 776,464 | $ | 768,508 | |||||||
Less: Net income allocable to participating RSUs | (8,291 | ) | (7,682 | ) | (8,765 | ) | |||||||
Net income available for diluted common shares | $ | 895,653 | $ | 768,782 | $ | 759,743 | |||||||
Weighted average common shares outstanding | 343,394 | 341,665 | 344,669 | ||||||||||
Weighted average common equivalent shares arising from: | |||||||||||||
Dilutive stock options and non-participating RSUs | 4,065 | 4,493 | 3,755 | ||||||||||
Weighted average number of common and potential common shares | 347,459 | 346,158 | 348,424 | ||||||||||
Diluted net income per common share | $ | 2.58 | $ | 2.22 | $ | 2.18 | |||||||
The calculation of potential common shares assumes the exercise of dilutive stock options and vesting of non-participating RSUs, net of assumed treasury share repurchases at average market prices. Nonqualified stock options and non-participating RSUs totaling 0.6 million shares, 0.7 million shares, and 1.0 million shares were excluded from the calculation of diluted net income per common share for 2013, 2012, and 2011, respectively, because they were antidilutive. |
Derivative_Instruments
Derivative Instruments | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||
Derivative Instruments | ' | ||||||||||||||||||
Note 9—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 (“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 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. As of December 31, 2013 and 2012, Mattel held foreign currency forward exchange contracts with notional amounts of $1.55 billion and $1.36 billion, respectively. | |||||||||||||||||||
The following table presents Mattel’s derivative assets and liabilities: | |||||||||||||||||||
Asset Derivatives | |||||||||||||||||||
Balance Sheet Classification | Fair Value | ||||||||||||||||||
December 31, | December 31, | ||||||||||||||||||
2013 | 2012 | ||||||||||||||||||
(In thousands) | |||||||||||||||||||
Derivatives designated as hedging instruments: | |||||||||||||||||||
Foreign currency forward exchange contracts | Prepaid expenses and other | $ | 415 | $ | 3,064 | ||||||||||||||
current assets | |||||||||||||||||||
Foreign currency forward exchange contracts | Other noncurrent assets | — | 4 | ||||||||||||||||
Total derivatives designated as hedging instruments | $ | 415 | $ | 3,068 | |||||||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||||||
Foreign currency forward exchange contracts | Prepaid expenses and other | $ | 1,895 | $ | — | ||||||||||||||
current assets | |||||||||||||||||||
Total | $ | 2,310 | $ | 3,068 | |||||||||||||||
Liability Derivatives | |||||||||||||||||||
Balance Sheet Classification | Fair Value | ||||||||||||||||||
December 31, | December 31, | ||||||||||||||||||
2013 | 2012 | ||||||||||||||||||
(In thousands) | |||||||||||||||||||
Derivatives designated as hedging instruments: | |||||||||||||||||||
Foreign currency forward exchange contracts | Accrued liabilities | $ | 12,432 | $ | 8,093 | ||||||||||||||
Foreign currency forward exchange contracts | Other noncurrent liabilities | 470 | 177 | ||||||||||||||||
Total derivatives designated as hedging instruments | $ | 12,902 | $ | 8,270 | |||||||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||||||
Foreign currency forward exchange contracts | Accrued liabilities | $ | 1,711 | $ | 487 | ||||||||||||||
Total | $ | 14,613 | $ | 8,757 | |||||||||||||||
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 Year Ended | For the Year Ended | Statements of | |||||||||||||||||
December 31, 2013 | December 31, 2012 | Operations | |||||||||||||||||
Amount of Gain | Amount of | Amount of Gain | Amount of | Classification | |||||||||||||||
(Loss) Recognized | Gain (Loss) | (Loss) Recognized | Gain (Loss) | ||||||||||||||||
in OCI | Reclassified from | in OCI | Reclassified from | ||||||||||||||||
Accumulated OCI | Accumulated OCI | ||||||||||||||||||
to Statements of | to Statements of | ||||||||||||||||||
Operations | Operations | ||||||||||||||||||
(In thousands) | |||||||||||||||||||
Derivatives designated as hedging instruments: | |||||||||||||||||||
Foreign currency forward exchange contracts | $ | (13,103 | ) | $ | (4,897 | ) | $ | 2,734 | $ | 29,933 | Cost of sales | ||||||||
The net loss of $4.9 million and net gain of $29.9 million reclassified from accumulated other comprehensive loss to the consolidated statements of operations during 2013 and 2012, respectively, are offset by the changes in cash flows associated with the underlying hedged transactions. | |||||||||||||||||||
Amount of Gain | Statements of Operations | ||||||||||||||||||
(Loss) Recognized in the | Classification | ||||||||||||||||||
Statements of Operations | |||||||||||||||||||
For the Year Ended | For the Year Ended | ||||||||||||||||||
December 31, | December 31, | ||||||||||||||||||
2013 | 2012 | ||||||||||||||||||
(In thousands) | |||||||||||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||||||
Foreign currency forward exchange | $ | 17,975 | $ | 6,317 | Non-operating income/expense | ||||||||||||||
contracts | |||||||||||||||||||
Foreign currency forward exchange | (4,455 | ) | (910 | ) | Cost of sales | ||||||||||||||
contracts | |||||||||||||||||||
Total | $ | 13,520 | $ | 5,407 | |||||||||||||||
The net gains of $13.5 million and $5.4 million recognized in the consolidated statements of operations during 2013 and 2012, respectively, are offset by foreign currency transaction gains and losses on the related hedged balances. |
Fair_Value_Measurements
Fair Value Measurements | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Fair Value Measurements | ' | ||||||||||||||||
Note 10—Fair Value Measurements | |||||||||||||||||
The following table presents information about Mattel’s assets and liabilities measured and reported in the financial statements at fair value on a recurring basis as of December 31, 2013 and 2012 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 include the following: | |||||||||||||||||
December 31, 2013 | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
(In thousands) | |||||||||||||||||
Assets: | |||||||||||||||||
Foreign currency forward exchange contracts (a) | $ | — | $ | 2,310 | $ | — | $ | 2,310 | |||||||||
Auction rate security (b) | — | — | 28,895 | 28,895 | |||||||||||||
Total assets | $ | — | $ | 2,310 | $ | 28,895 | $ | 31,205 | |||||||||
Liabilities: | |||||||||||||||||
Foreign currency forward exchange contracts (a) | $ | — | $ | 14,613 | $ | — | $ | 14,613 | |||||||||
December 31, 2012 | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
(In thousands) | |||||||||||||||||
Assets: | |||||||||||||||||
Foreign currency forward exchange contracts (a) | $ | — | $ | 3,068 | $ | — | $ | 3,068 | |||||||||
Auction rate security (b) | — | — | 19,256 | 19,256 | |||||||||||||
Total assets | $ | — | $ | 3,068 | $ | 19,256 | $ | 22,324 | |||||||||
Liabilities: | |||||||||||||||||
Foreign currency forward exchange contracts (a) | $ | — | $ | 8,757 | $ | — | $ | 8,757 | |||||||||
(a) | The fair value of the foreign currency forward exchange contracts is based on dealer quotes of market forward rates and reflects 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 auction rate security is estimated using a discounted cash flow model based on (i) estimated interest rates, timing, and amount of cash flows, (ii) credit spreads, recovery rates, and credit quality of the underlying securities, (iii) illiquidity considerations, and (iv) market correlation. | ||||||||||||||||
The following table presents information about Mattel’s auction rate security measured and reported at fair value on a recurring basis using significant Level 3 inputs: | |||||||||||||||||
Level 3 | |||||||||||||||||
(In thousands) | |||||||||||||||||
Balance at December 31, 2010 | $ | 21,000 | |||||||||||||||
Unrealized loss | (5,370 | ) | |||||||||||||||
Balance at December 31, 2011 | 15,630 | ||||||||||||||||
Unrealized gain | 3,626 | ||||||||||||||||
Balance at December 31, 2012 | 19,256 | ||||||||||||||||
Unrealized gain | 9,639 | ||||||||||||||||
Balance at December 31, 2013 | $ | 28,895 | |||||||||||||||
The unrealized gains/losses recognized relating to the auction rate security are reflected within other non-operating income in the consolidated statements of operations. | |||||||||||||||||
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 second quarter of 2013, Mattel changed its brand strategy for Polly Pocket, which includes a more focused allocation of resources to support the Polly Pocket brand in specific markets, resulting in a reduction of the forecasted future cash flows of the brand. As a result, Mattel recognized an impairment charge of approximately $14 million, which reduced the value of the intangible asset to approximately $99 million, as more fully described in “Note 2 to the Consolidated Financial Statements—Goodwill and Other Intangibles.” | |||||||||||||||||
During 2013, 2012, and 2011, Mattel did not have any other assets or liabilities measured and reported at fair value on a non-recurring basis in periods subsequent to initial recognition. | |||||||||||||||||
Other Financial Instruments | |||||||||||||||||
Mattel’s financial instruments include cash and equivalents, accounts receivable and payable, short-term borrowings, and accrued liabilities. The carrying value of these instruments approximates fair value because of their short-term nature. | |||||||||||||||||
The estimated fair value of Mattel’s long-term debt, including the current portion, was $1.62 billion (compared to a carrying value of $1.60 billion) as of December 31, 2013 and $1.63 billion (compared to a carrying value of $1.50 billion) as of December 31, 2012. 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. | |||||||||||||||||
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Commitments and Contingencies | ' | ||||||||
Note 11—Commitments and Contingencies | |||||||||
Leases | |||||||||
Mattel routinely enters into noncancelable lease agreements for premises and equipment used in the normal course of business. Certain of these leases include escalation clauses that adjust rental expense to reflect changes in price indices, as well as renewal options. In addition to minimum rental payments, certain of Mattel’s leases require additional payments to reimburse the lessors for operating expenses such as real estate taxes, maintenance, utilities, and insurance. Rental expense is recorded on a straight-line basis, including escalating minimum payments. The American Girl Place leases in Chicago, Illinois, Los Angeles, California, and New York, New York, and American Girl store leases in Alpharetta, Georgia, Bloomington, Minnesota, Charlotte, North Carolina, Chesterfield, Missouri, Columbus, Ohio, Dallas, Texas, Houston, Texas, Lone Tree, Colorado, Lynnwood, Washington, McLean, Virginia, Miami, Florida, Natick, Massachusetts, Orlando, Florida, Overland Park, Kansas, and Palo Alto, California also contain provisions for additional rental payments based on a percentage of the sales of each store after reaching certain sales benchmarks. Contingent rental expense is recorded in the period in which the contingent event becomes probable. During 2013, 2012, and 2011, contingent rental expense was not material. The following table shows the future minimum obligations under lease commitments in effect at December 31, 2013: | |||||||||
Capitalized | Operating | ||||||||
Leases | Leases | ||||||||
(In thousands) | |||||||||
2014 | $ | 294 | $ | 103,927 | |||||
2015 | 294 | 89,387 | |||||||
2016 | 294 | 82,389 | |||||||
2017 | 294 | 60,941 | |||||||
2018 | 294 | 44,294 | |||||||
Thereafter | 321 | 163,544 | |||||||
$ | 1,791 | (a) | $ | 544,482 | |||||
(a) | Includes $0.4 million of imputed interest. | ||||||||
Rental expense under operating leases amounted to $111.0 million, $116.5 million, and $113.3 million for 2013, 2012, and 2011, respectively, net of sublease income of $0.9 million, $0.9 million, and $0.9 million in 2013, 2012, and 2011, respectively. | |||||||||
Commitments | |||||||||
In the normal course of business, Mattel enters into contractual arrangements to obtain and protect Mattel’s right to create and market certain products and for future purchases of goods and services to ensure availability and timely delivery. Such arrangements include royalty payments pursuant to licensing agreements and commitments primarily for future inventory purchases. Certain of these commitments routinely contain provisions for guarantees or minimum expenditures during the term of the contracts. Current and future commitments for guaranteed payments reflect Mattel’s focus on expanding its product lines through alliances with businesses in other industries. | |||||||||
Licensing and similar agreements in effect at December 31, 2013 contain provisions for future minimum payments as shown in the following table: | |||||||||
Licensing and | |||||||||
Similar | |||||||||
Agreements | |||||||||
(In thousands) | |||||||||
2014 | $ | 67,391 | |||||||
2015 | 78,621 | ||||||||
2016 | 42,310 | ||||||||
2017 | 18,928 | ||||||||
2018 | 1,002 | ||||||||
Thereafter | 550 | ||||||||
$ | 208,802 | ||||||||
Royalty expense for 2013, 2012, and 2011 was $246.9 million, $240.2 million, and $262.4 million, respectively. | |||||||||
The following table shows the future minimum obligations for purchases of inventory, other assets, and services at December 31, 2013: | |||||||||
Other | |||||||||
Purchase | |||||||||
Obligations | |||||||||
(In thousands) | |||||||||
2014 | $ | 361,915 | |||||||
2015 | 15,838 | ||||||||
2016 | 4,483 | ||||||||
2017 | 1,038 | ||||||||
2018 | — | ||||||||
$ | 383,274 | ||||||||
Insurance | |||||||||
Mattel has a wholly-owned subsidiary, Far West Insurance Company, Ltd. (“Far West”), that was established to insure Mattel’s workers’ compensation, general, automobile, product liability, and foreign property risks. Far West insures the first $1.0 million per occurrence for workers’ compensation risks, the first $0.5 million for general and automobile liability risks, the first $2.0 million per occurrence and $2.0 million per year for product liability risks, and $0.5 million per occurrence for foreign property risks. Various insurance companies, that have an “A” or better AM Best rating at the time the policies are purchased, reinsure Mattel’s risk in excess of the amounts insured by Far West. Mattel’s liability for reported and incurred but not reported claims at December 31, 2013 and 2012 totaled $15.8 million and $17.0 million, respectively, and is included in other noncurrent liabilities in the consolidated balance sheets. Loss reserves are accrued based on Mattel’s estimate of the aggregate liability for claims incurred. | |||||||||
Litigation | |||||||||
Litigation Related to Carter Bryant and MGA Entertainment, Inc. | |||||||||
In April 2004, Mattel filed a lawsuit in Los Angeles County Superior Court against Carter Bryant (“Bryant”), a former Mattel design employee. The suit alleges that Bryant aided and assisted a Mattel competitor, MGA Entertainment, Inc. (“MGA”), during the time he was employed by Mattel, in violation of his contractual and other duties to Mattel. In September 2004, Bryant asserted counterclaims against Mattel, including counterclaims in which Bryant sought, as a putative class action representative, to invalidate Mattel’s Confidential Information and Proprietary Inventions Agreements with its employees. Bryant also removed Mattel’s suit to the United States District Court for the Central District of California. In December 2004, MGA intervened as a party-defendant in Mattel’s action against Bryant, asserting that its rights to Bratz properties are at stake in the litigation. | |||||||||
Separately, in November 2004, Bryant filed an action against Mattel in the United States District Court for the Central District of California. The action sought a judicial declaration that Bryant’s purported conveyance of rights in Bratz was proper and that he did not misappropriate Mattel property in creating Bratz. | |||||||||
In April 2005, MGA filed suit against Mattel in the United States District Court for the Central District of California. MGA’s action alleges claims of trade dress infringement, trade dress dilution, false designation of origin, unfair competition, and unjust enrichment. The suit alleges, among other things, that certain products, themes, packaging, and/or television commercials in various Mattel product lines have infringed upon products, themes, packaging, and/or television commercials for various MGA product lines, including Bratz. The complaint also asserts that various alleged Mattel acts with respect to unidentified retailers, distributors, and licensees have damaged MGA and that various alleged acts by industry organizations, purportedly induced by Mattel, have damaged MGA. MGA’s suit alleges that MGA has been damaged in an amount “believed to reach or exceed tens of millions of dollars” and further seeks punitive damages, disgorgement of Mattel’s profits and injunctive relief. | |||||||||
In June 2006, the three cases were consolidated in the United States District Court for the Central District of California. On July 17, 2006, the Court issued an order dismissing all claims that Bryant had asserted against Mattel, including Bryant’s purported counterclaims to invalidate Mattel’s Confidential Information and Proprietary Inventions Agreements with its employees, and Bryant’s claims for declaratory relief. | |||||||||
In November 2006, Mattel asked the Court for leave to file an Amended Complaint that included not only additional claims against Bryant, but also included claims for copyright infringement, Racketeer Influenced and Corrupt Organizations (“RICO”) violations, misappropriation of trade secrets, intentional interference with contract, aiding and abetting breach of fiduciary duty and breach of duty of loyalty, and unfair competition, among others, against MGA, its Chief Executive Officer Isaac Larian, certain MGA affiliates and an MGA employee. The RICO claim alleged that MGA stole Bratz and then, by recruiting and hiring key Mattel employees and directing them to bring with them Mattel confidential and proprietary information, unfairly competed against Mattel using Mattel’s trade secrets, confidential information, and key employees to build their business. On January 12, 2007, the Court granted Mattel leave to file these claims as counterclaims in the consolidated cases, which Mattel did that same day. | |||||||||
Mattel sought to try all of its claims in a single trial, but in February 2007, the Court decided that the consolidated cases would be tried in two phases, with the first trial to determine claims and defenses related to Mattel’s ownership of Bratz works and whether MGA infringed those works. On May 19, 2008, Bryant reached a settlement agreement with Mattel and is no longer a defendant in the litigation. In the public stipulation entered by Mattel and Bryant in connection with the resolution, Bryant agreed that he was and would continue to be bound by all prior and future Court Orders relating to Bratz ownership and infringement, including the Court’s summary judgment rulings. | |||||||||
The first phase of the first trial, which began on May 27, 2008, resulted in a unanimous jury verdict on July 17, 2008 in favor of Mattel. The jury found that almost all of the Bratz design drawings and other works in question were created by Bryant while he was employed at Mattel; that MGA and Isaac Larian intentionally interfered with the contractual duties owed by Bryant to Mattel, aided and abetted Bryant’s breaches of his duty of loyalty to Mattel, aided and abetted Bryant’s breaches of the fiduciary duties he owed to Mattel, and converted Mattel property for their own use. The same jury determined that defendants MGA, Larian, and MGA Entertainment (HK) Limited infringed Mattel’s copyrights in the Bratz design drawings and other Bratz works, and awarded Mattel total damages of approximately $100 million against the defendants. On December 3, 2008, the Court issued a series of orders rejecting MGA’s equitable defenses and granting Mattel’s motions for equitable relief, including an order enjoining the MGA party defendants from manufacturing, marketing, or selling certain Bratz fashion dolls or from using the “Bratz” name. The Court stayed the effect of the December 3, 2008 injunctive orders until further order of the Court and entered a further specified stay of the injunctive orders on January 7, 2009. | |||||||||
The parties filed and argued additional motions for post-trial relief, including a request by MGA to enter judgment as a matter of law on Mattel’s claims in MGA’s favor and to reduce the jury’s damages award to Mattel. Mattel additionally moved for the appointment of a receiver. On April 27, 2009, the Court entered an order confirming that Bratz works found by the jury to have been created by Bryant during his Mattel employment were Mattel’s property and that hundreds of Bratz female fashion dolls infringe Mattel’s copyrights. The Court also upheld the jury’s award of damages in the amount of $100 million and ordered an accounting of post-trial Bratz sales. The Court further vacated the stay of the December 3, 2008 orders, except to the extent specified by the Court’s January 7, 2009 modification. | |||||||||
MGA appealed the Court’s equitable orders to the Court of Appeals for the Ninth Circuit. On December 9, 2009, the Ninth Circuit heard oral argument on MGA’s appeal and issued an order staying the District Court’s equitable orders pending a further order to be issued by the Ninth Circuit. The Ninth Circuit opinion vacating the relief ordered by the District Court was issued on July 22, 2010. The Ninth Circuit stated that, because of several jury instruction errors it identified, a significant portion—if not all—of the jury verdict and damage award should be vacated. | |||||||||
In its opinion, the Ninth Circuit found that the District Court erred in concluding that Mattel’s Invention agreement unambiguously applied to “ideas;” that it should have considered extrinsic evidence in determining the application of the agreement; and if the conclusion turns on conflicting evidence, it should have been up to the jury to decide. The Ninth Circuit also concluded that the District Judge erred in transferring the entire brand to Mattel based on misappropriated names and that the Court should have submitted to the jury, rather than deciding itself, whether Bryant’s agreement assigned works created outside the scope of his employment and whether Bryant’s creation of the Bratz designs and sculpt was outside of his employment. The Court then went on to address copyright issues which would be raised after a retrial, since Mattel “might well convince a properly instructed jury” that it owns Bryant’s designs and sculpt. The Ninth Circuit stated that the sculpt itself was entitled only to “thin” copyright protection against virtually identical works, while the Bratz sketches were entitled to “broad” protection against substantially similar works; in applying the broad protection, however, the Ninth Circuit found that the lower court had erred in failing to filter out all of the unprotectable elements of Bryant’s sketches. This mistake, the Court said, caused the lower court to conclude that all Bratz dolls were substantially similar to Bryant’s original sketches. | |||||||||
Judge Stephen Larson, who presided over the first trial, retired from the bench during the course of the appeal, and the case was transferred to Judge David O. Carter. After the transfer, Judge Carter granted Mattel leave to file a Fourth Amended Answer and Counterclaims which focused on RICO, trade secret and other claims, and added additional parties, and subsequently granted in part and denied in part a defense motion to dismiss those counterclaims. | |||||||||
Later, on August 16, 2010, MGA asserted several new claims against Mattel in response to Mattel’s Fourth Amended Answer and Counterclaims, including claims for alleged trade secret misappropriation, an alleged violation of RICO, and wrongful injunction. MGA alleged, in summary, that, for more than a decade dating back to 1992, Mattel employees engaged in a pattern of stealing alleged trade secret information from competitors’ “toy fair” showrooms, and then sought to conceal that alleged misconduct. Mattel moved to strike and/or dismiss these claims, as well as certain MGA allegations regarding Mattel’s motives for filing suit. The Court granted that motion as to the wrongful injunction claim, which it dismissed with prejudice, and as to the allegations about Mattel’s motives, which it struck. The Court denied the motion as to MGA’s trade secret misappropriation claim and its claim for violations of RICO. | |||||||||
The Court resolved summary judgment motions in late 2010. Among other rulings, the Court dismissed both parties’ RICO claims; dismissed Mattel’s claim for breach of fiduciary duty and portions of other claims as “preempted” by the trade secrets act; dismissed MGA’s trade dress infringement claims; dismissed MGA’s unjust enrichment claim; dismissed MGA’s common law unfair competition claim; and dismissed portions of Mattel’s copyright infringement claim as to “later generation” Bratz dolls. | |||||||||
Trial of all remaining claims began in early January 2011. During the trial, and before the case was submitted to the jury, the Court granted MGA’s motions for judgment as to Mattel’s claims for aiding and abetting breach of duty of loyalty and conversion. The Court also granted a defense motion for judgment on portions of Mattel’s claim for misappropriation of trade secrets relating to thefts by former Mattel employees located in Mexico. | |||||||||
The jury reached verdicts on the remaining claims in April 2011. In those verdicts, the jury ruled against Mattel on its claims for ownership of Bratz-related works, for copyright infringement, and for misappropriation of trade secrets. The jury ruled for MGA on its claim of trade secret misappropriation as to 26 of its claimed trade secrets and awarded $88.5 million in damages. The jury ruled against MGA as to 88 of its claimed trade secrets. The jury found that Mattel’s misappropriation was willful and malicious. | |||||||||
In early August 2011, the Court ruled on post-trial motions. The Court rejected MGA’s unfair competition claims and also rejected Mattel’s equitable defenses to MGA’s misappropriation of trade secrets claim. The Court reduced the jury’s damages award of $88.5 million to $85.0 million. The Court awarded MGA an additional $85.0 million in punitive damages and approximately $140 million in attorney’s fees and costs. The Court entered a judgment which totaled approximately $310 million in favor of MGA. | |||||||||
On August 11, 2011, Mattel appealed the judgment, challenging on appeal the entirety of the District Court’s monetary award in favor of MGA, including both the award of $170 million in damages for alleged trade secret misappropriation and approximately $140 million in attorney’s fees and costs. On January 24, 2013, the Ninth Circuit Court of Appeals issued a ruling on Mattel’s appeal. In that ruling, the Court found that MGA’s claim for trade secrets misappropriation was not compulsory to any Mattel claim and could not be filed as a counterclaim-in-reply. Accordingly, the Court of Appeals vacated the portion of the judgment awarding damages and attorney’s fees and costs to MGA for prevailing on its trade secrets misappropriation claim, totaling approximately $172.5 million. It ruled that, on remand, the District Court must dismiss MGA’s trade secret claim without prejudice. In its ruling, the Court of Appeals also affirmed the District Court’s award of attorney’s fees and costs under the Copyright Act. Accordingly, Mattel recorded a litigation accrual of approximately $138 million during the fourth quarter of 2012 to cover these fees and costs. | |||||||||
Because multiple claimants asserted rights to the attorney’s fees portion of the judgment, on February 13, 2013, Mattel filed a motion in the district court for orders permitting Mattel to interplead the proceeds of the judgment and releasing Mattel from liability to any claimant based on Mattel’s payment of the judgment. | |||||||||
On February 27, 2013, MGA filed a motion for leave to amend its prior complaint in the existing federal court lawsuit so that it could reassert its trade-secrets claim. Mattel opposed that motion. On December 17, 2013, the district court denied MGA’s motion for leave to amend and entered an order dismissing MGA’s trade-secrets claim without prejudice. Also on December 17, 2013, following a settlement between MGA and certain insurance carriers, the district court denied Mattel’s motion for leave to interplead the proceeds of the judgment. | |||||||||
On December 21, 2013, a stipulation regarding settlement with insurers and payment of judgment was filed in the district court, which provided that (i) Mattel would pay approximately $138 million, including accrued interest, in full satisfaction of the copyright fees judgment, (ii) all parties would consent to entry of an order exonerating and discharging the appeal bond posted by Mattel, and (iii) MGA’s insurers would dismiss all pending actions related to the proceeds of the copyright fees judgment, including an appeal by Evanston Insurance Company in an action against Mattel that was pending in the Ninth Circuit. On December 23, 2013, Mattel paid the copyright fees judgment in the total sum, including interest, of approximately $138 million. On December 26, 2013, the court entered an order exonerating and discharging the appeal bond posted by Mattel, and on December 27, 2013, MGA filed an acknowledgment of satisfaction of judgment. On December 30, 2013, Evanston Insurance Company’s appeal in its action against Mattel was dismissed. | |||||||||
On January 13, 2014, MGA filed a new, but virtually identical, trade-secrets claim against Mattel in Los Angeles County Superior Court. Mattel was served with the complaint on January 23, 2014. In its complaint, MGA purports to seek damages in excess of $1 billion. Mattel believes that MGA’s claim should be barred as a matter of law, and intends to vigorously defend against it. Accordingly, Mattel does not believe a loss is probable and, therefore, a liability has not been accrued as of December 31, 2013. | |||||||||
Litigation Related to Yellowstone do Brasil Ltda. | |||||||||
Yellowstone do Brasil Ltda. (formerly known as Trebbor Informática Ltda.) was a customer of Mattel’s subsidiary Mattel do Brasil Ltda. when a commercial dispute arose between Yellowstone and Mattel do Brasil regarding the supply of product and related payment terms. As a consequence of the dispute, in April 1999, Yellowstone filed a declarative action against Mattel do Brasil requesting the annulment of its security bonds and promissory notes given to Mattel as well as requesting the court to find Mattel do Brasil liable for damages incurred as a result of Mattel do Brasil’s alleged abrupt and unreasonable breach of an oral exclusive distribution agreement between the parties relating to the supply and sale of toys in Brazil. Yellowstone’s complaint sought alleged loss of profits of approximately $0.5 million, plus an unspecified amount of damages consisting of: (i) compensation for all investments made by Yellowstone to develop Mattel do Brasil’s business; (ii) reimbursement of the amounts paid by Yellowstone to terminate labor and civil contracts in connection with the business; (iii) compensation for alleged unfair competition and for the goodwill of trade; and (iv) compensation for non-pecuniary damages. | |||||||||
Mattel do Brasil filed its defenses to these claims and simultaneously presented a counterclaim for unpaid accounts receivable for goods supplied to Yellowstone in the approximate amount of $3.5 million. | |||||||||
During the evidentiary phase a first accounting report was submitted by a court-appointed expert. Such report stated that Yellowstone had invested approximately $2.8 million in its business. Additionally, the court-appointed expert calculated a loss of profits compensation of approximately $1.2 million. Mattel do Brasil challenged the report since it was not made based on the official accounting documents of Yellowstone and since the report calculated damages based only on documents unilaterally submitted by Yellowstone. | |||||||||
The trial court accepted the challenge and ruled that a second accounting examination should take place in the lawsuit. Yellowstone appealed the decision but it was upheld by the appeals court. | |||||||||
The second court-appointed expert’s report submitted at trial did not assign a value to any of Yellowstone’s claims and found no evidence of causation between Mattel do Brasil’s actions and such claims. | |||||||||
In January 2010, the trial court ruled in favor of Mattel do Brasil and denied all of Yellowstone’s claims based primarily on the lack of any causal connection between the acts of Mattel do Brasil and Yellowstone’s alleged damages. Additionally, the court upheld Mattel do Brasil’s counterclaim and ordered Yellowstone to pay Mattel do Brasil approximately $3.8 million. The likelihood of Mattel do Brasil recovering this amount was uncertain due to the fact that Yellowstone was declared insolvent and filed for bankruptcy protection. In February 2010, Yellowstone filed a motion seeking clarification of the decision which was denied. | |||||||||
In September 2010, Yellowstone filed a further appeal. Under Brazilian law, the appeal was de novo and Yellowstone restated all of the arguments it made at the trial court level. Yellowstone did not provide any additional information supporting its unspecified alleged damages. The appeals court held hearings on the appeal in March and April 2013. On July 26, 2013, the appeals court awarded Yellowstone approximately $20 million in damages, as adjusted for inflation and interest. The court also awarded Mattel approximately $8 million on its counterclaim, as adjusted for inflation. On August 2, 2013, Mattel filed a motion for clarification since the written decision contained clear errors in terms of amounts awarded and interest and inflation adjustments. Mattel’s motion also asked the court to decide whether Yellowstone’s award could be offset by the counterclaim award, despite Yellowstone’s status as a bankrupt entity. A decision on the clarification motion is expected in the first quarter of 2014. Mattel intends to appeal the decision to the Superior Court based on both procedural and substantive grounds. | |||||||||
Mattel believes that it is reasonably possible that a loss in this matter could range from $0 to approximately $20 million. The high end of this range, approximately $20 million, is based on the calculation of the current amount of the damages and loss of profits, including interest and inflation adjustments, reported in the first court-appointed examination report submitted in the lawsuit, plus attorney’s fees. Mattel do Brasil may be entitled to offset its counterclaim award of approximately $8 million, including inflation adjustment, against such loss. The existence of pending motions for clarification filed by both parties and the resulting clarification decision expected to be issued in the first quarter of 2014, as well as the procedural aspects of an appeal to the Superior Court, adds some uncertainty to the final outcome of the matter. Mattel believes however that it has good legal grounds for appeal of the decision and does not believe that a loss is probable for this matter. Accordingly, a liability has not been accrued as of December 31, 2013. Mattel may be required to place the full amount of the damage award in escrow pending an appeal decision by the Superior Court. |
Segment_Information
Segment Information | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Segment Information | ' | ||||||||||||
Note 12—Segment Information | |||||||||||||
Description of Segments | |||||||||||||
Mattel sells a broad variety of toy products which are grouped into three major brand categories: | |||||||||||||
Mattel Girls & Boys Brands—including Barbie fashion dolls and accessories (“Barbie”), Monster High, Disney Classics, Ever After High, Little Mommy, and Polly Pocket (collectively “Other Girls”), Hot Wheels, Matchbox, and Tyco R/C vehicles and play sets (collectively “Wheels”), and CARS, Disney Planes, Radica, Toy Story, Max Steel, WWE Wrestling, Batman, and games and puzzles (collectively “Entertainment”). | |||||||||||||
Fisher-Price Brands—including Fisher-Price, Little People, BabyGear, Laugh & Learn, and Imaginext (collectively “Core Fisher-Price”), Thomas & Friends, Dora the Explorer, Mickey Mouse Clubhouse, and Disney Jake and the Never Land Pirates (collectively “Fisher-Price Friends”), and Power Wheels. | |||||||||||||
American Girl Brands—including My American Girl, the historical collection, and Bitty Baby. American Girl Brands products are sold directly to consumers via its catalog, website, and proprietary retail stores. Its children’s publications are also sold to certain retailers. | |||||||||||||
Prior to 2012, Mattel’s operating segments were divided on a geographic basis between domestic and international. The domestic segment was further divided into Mattel Girls & Boys Brands US, Fisher-Price Brands US, and American Girl Brands. Effective January 1, 2012, Mattel modified its organizational structure into North America, International, and American Girl divisions. This reorganization was implemented in order to simplify the organization and to move decision-making for the North America business closer to its retail customers and its toy consumers. Prior to the reorganization, the functions of the US operations were divided between the Mattel Girls & Boys Brands US and Fisher-Price Brands US operating segments. Both of these segments had distinct and separate reporting structures. The reorganization consolidated functions within the US into a single reporting structure that is no longer structured around brands, including the US sales, customer marketing, customer forecasting, customer service, and finance teams. The new structure is primarily organized based on customer-focused teams that are designated to specific retail customers. As a result, the reorganization changed the way the US business is being operated, and combined the US business with Canada under one leadership team, to form the North America division. As part of the reorganization, new executive positions were created and prior executive positions within the US operations were eliminated or restructured to align to the North America division. Mattel’s strategic goals and internal reporting of financial information have also been changed consistent with this reorganization into the North America division. | |||||||||||||
The change to Mattel’s organizational structure and formation of the North America division resulted in changes to Mattel’s operating segments. The new operating segments are: (i) North America, which consists of the US and Canada, (ii) International, and (iii) American Girl. The North America and International segments sell products in the Mattel Girls & Boys Brands and Fisher-Price Brands categories, although some are developed and adapted for particular international markets. Factors considered in determining the new operating segments include the nature of business activities, the management structure directly accountable to the Chief Operating Decision Maker (“CODM”) for operating and administrative activities, availability of discrete financial information, and strategic priorities within the new organizational structure. These factors correspond to the manner in which the CODM currently reviews and evaluates operating performance to make decisions about resources to be allocated to these operating segments. Effective January 1, 2012, the CODM reviews key financial information, including gross sales, operating income, accounts receivable, and inventory for the new operating segments. Prior to 2012, the CODM reviewed and evaluated operating performance to make decisions about resources to be allocated based on the Mattel Girls & Boys Brands US, Fisher-Price Brands US, American Girl Brands, and International segments. Operating performance for Mattel Girls & Boys Brands US and Fisher-Price Brands US is no longer reviewed by the CODM. | |||||||||||||
The 2011 operating segment results have been reclassified to conform to the current presentation. | |||||||||||||
Segment Data | |||||||||||||
The following tables present information about revenues, income, and assets by segment. Mattel does not include sales adjustments such as trade discounts and other allowances in the calculation of segment revenues (referred to as “gross sales”). Mattel records these adjustments in its financial accounting systems at the time of sale to each customer, but the adjustments are not allocated to individual products. For this reason, Mattel’s CODM uses gross sales by segment as one of the metrics to measure segment performance. Such sales adjustments are included in the determination of segment income from operations based on the adjustments recorded in the financial accounting systems. Segment income represents each segment’s operating income, while consolidated operating income represents income from operations before net interest, other non-operating income, and income taxes as reported in the consolidated statements of operations. The corporate and other expense category includes costs not allocated to individual segments, including charges related to incentive compensation, share-based payments, and corporate headquarters functions managed on a worldwide basis, and the impact of changes in foreign currency rates on intercompany transactions. | |||||||||||||
For the Year | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(In thousands) | |||||||||||||
Revenues by Segment | |||||||||||||
North America | $ | 3,181,205 | $ | 3,330,217 | $ | 3,296,995 | |||||||
International | 3,277,840 | 3,126,088 | 3,001,705 | ||||||||||
American Girl | 658,768 | 596,298 | 542,387 | ||||||||||
Gross sales | 7,117,813 | 7,052,603 | 6,841,087 | ||||||||||
Sales adjustments | (632,921 | ) | (631,722 | ) | (575,050 | ) | |||||||
Net sales | $ | 6,484,892 | $ | 6,420,881 | $ | 6,266,037 | |||||||
Segment Income | |||||||||||||
North America | $ | 723,834 | $ | 810,271 | $ | 770,276 | |||||||
International | 622,910 | 571,413 | 513,414 | ||||||||||
American Girl | 138,029 | 121,642 | 111,104 | ||||||||||
1,484,773 | 1,503,326 | 1,394,794 | |||||||||||
Corporate and other expense (a) | (316,670 | ) | (482,311 | ) | (353,693 | ) | |||||||
Operating income | 1,168,103 | 1,021,015 | 1,041,101 | ||||||||||
Interest expense | 78,505 | 88,835 | 75,332 | ||||||||||
Interest (income) | (5,555 | ) | (6,841 | ) | (8,093 | ) | |||||||
Other non-operating (income) expense, net | (3,975 | ) | (6,024 | ) | 3,189 | ||||||||
Income before income taxes | $ | 1,099,128 | $ | 945,045 | $ | 970,673 | |||||||
(a) | Corporate and other expense includes (i) incentive compensation expense of $65.0 million, $108.1 million, and $75.3 million for 2013, 2012, and 2011, respectively, (ii) $17.6 million, $13.4 million, and $14.9 million of charges related to severance and other termination-related costs for 2013, 2012, and 2011, respectively, (iii) share-based compensation expense of $61.7 million, $63.3 million, and $53.5 million for 2013, 2012, and 2011, respectively, (iv) the Litigation Charge of $137.8 million for 2012, (v) $7.5 million Gunther-Wahl Productions legal settlement for 2011, and (vi) legal fees associated with MGA litigation matters. | ||||||||||||
For the Year | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(In thousands) | |||||||||||||
Depreciation/Amortization by Segment | |||||||||||||
North America | $ | 84,935 | $ | 76,593 | $ | 66,477 | |||||||
International | 71,380 | 65,340 | 63,026 | ||||||||||
American Girl | 17,364 | 15,622 | 15,210 | ||||||||||
173,679 | 157,555 | 144,713 | |||||||||||
Corporate and other | 22,714 | 16,727 | 16,585 | ||||||||||
Depreciation and amortization | $ | 196,393 | $ | 174,282 | $ | 161,298 | |||||||
Segment assets are comprised of accounts receivable and inventories, net of applicable reserves and allowances. | |||||||||||||
December 31, | |||||||||||||
2013 | 2012 | ||||||||||||
(In thousands) | |||||||||||||
Assets by Segment | |||||||||||||
North America | $ | 723,886 | $ | 694,479 | |||||||||
International | 920,770 | 807,911 | |||||||||||
American Girl | 100,438 | 90,335 | |||||||||||
1,745,094 | 1,592,725 | ||||||||||||
Corporate and other | 83,854 | 99,165 | |||||||||||
Accounts receivable and inventories, net | $ | 1,828,948 | $ | 1,691,890 | |||||||||
Mattel sells a broad variety of toy products, which are grouped into three major categories: Mattel Girls & Boys Brands, Fisher-Price Brands, and American Girl Brands. The table below presents worldwide revenues by brand category: | |||||||||||||
For the Year | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(In thousands) | |||||||||||||
Worldwide Revenues by Brand Category | |||||||||||||
Mattel Girls & Boys Brands | $ | 4,315,855 | $ | 4,186,550 | $ | 4,120,564 | |||||||
Fisher-Price Brands | 2,120,719 | 2,252,339 | 2,159,178 | ||||||||||
American Girl Brands | 632,515 | 567,521 | 510,936 | ||||||||||
Other | 48,724 | 46,193 | 50,409 | ||||||||||
Gross sales | 7,117,813 | 7,052,603 | 6,841,087 | ||||||||||
Sales adjustments | (632,921 | ) | (631,722 | ) | (575,050 | ) | |||||||
Net sales | $ | 6,484,892 | $ | 6,420,881 | $ | 6,266,037 | |||||||
Geographic Information | |||||||||||||
The tables below present information by geographic area. Revenues are attributed to countries based on location of customer. Long-lived assets principally include goodwill, property, plant, and equipment, net, and identifiable intangibles, net. | |||||||||||||
For the Year | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(In thousands) | |||||||||||||
Revenues | |||||||||||||
North American Region (a) | $ | 3,839,973 | $ | 3,926,515 | $ | 3,839,382 | |||||||
International Region: | |||||||||||||
Europe | 1,806,707 | 1,685,274 | 1,626,120 | ||||||||||
Latin America | 1,011,718 | 1,008,236 | 991,435 | ||||||||||
Asia Pacific | 459,415 | 432,578 | 384,150 | ||||||||||
Total International Region | 3,277,840 | 3,126,088 | 3,001,705 | ||||||||||
Gross sales | 7,117,813 | 7,052,603 | 6,841,087 | ||||||||||
Sales adjustments | (632,921 | ) | (631,722 | ) | (575,050 | ) | |||||||
Net sales | $ | 6,484,892 | $ | 6,420,881 | $ | 6,266,037 | |||||||
December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(In thousands) | |||||||||||||
Long-Lived Assets | |||||||||||||
North American Region (b) | $ | 1,361,538 | $ | 1,252,938 | $ | 1,074,914 | |||||||
International Region | 1,326,457 | 1,342,375 | 679,185 | ||||||||||
Consolidated total | $ | 2,687,995 | $ | 2,595,313 | $ | 1,754,099 | |||||||
(a) | Revenues for the North American Region include revenues attributable to the US of $3.58 billion, $3.61 billion, and $3.58 billion for 2013, 2012, and 2011, respectively. | ||||||||||||
(b) | Long-lived assets for the North American Region include long-lived assets attributable to the US of $1.36 billion, $1.25 billion, and $1.05 billion for 2013, 2012, and 2011, respectively. | ||||||||||||
Major Customers | |||||||||||||
Sales to Mattel’s three largest customers accounted for 36%, 37%, and 38% of worldwide consolidated net sales for 2013, 2012, and 2011, respectively, as follows: | |||||||||||||
For the Year | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(In billions) | |||||||||||||
Wal-Mart | $ | 1.2 | $ | 1.2 | $ | 1.2 | |||||||
Toys “R” Us | 0.7 | 0.7 | 0.7 | ||||||||||
Target | 0.5 | 0.5 | 0.5 | ||||||||||
The North America segment sells products to each of Mattel’s three largest customers. The International segment sells products to Wal-Mart and Toys “R” Us. The American Girl segment sells its children’s publications to Wal-Mart and Target. |
Supplemental_Financial_Informa
Supplemental Financial Information | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Supplemental Financial Information | ' | ||||||||||||
Note 13—Supplemental Financial Information | |||||||||||||
December 31, | |||||||||||||
2013 | 2012 | ||||||||||||
(In thousands) | |||||||||||||
Inventories include the following: | |||||||||||||
Raw materials and work in process | $ | 89,863 | $ | 79,216 | |||||||||
Finished goods | 478,980 | 385,841 | |||||||||||
$ | 568,843 | $ | 465,057 | ||||||||||
Property, plant, and equipment, net includes the following: | |||||||||||||
Land | $ | 27,555 | $ | 26,692 | |||||||||
Buildings | 269,874 | 268,381 | |||||||||||
Machinery and equipment | 974,830 | 931,732 | |||||||||||
Tools, dies, and molds | 713,749 | 674,119 | |||||||||||
Capital leases | 23,271 | 23,271 | |||||||||||
Leasehold improvements | 230,271 | 208,900 | |||||||||||
2,239,550 | 2,133,095 | ||||||||||||
Less: accumulated depreciation | (1,580,217 | ) | (1,539,882 | ) | |||||||||
$ | 659,333 | $ | 593,213 | ||||||||||
Other noncurrent assets include the following: | |||||||||||||
Nonamortizable identifiable intangibles | $ | 504,241 | $ | 617,223 | |||||||||
Deferred income taxes | 373,638 | 374,667 | |||||||||||
Identifiable intangibles (net of amortization of $68.3 million and $64.9 million at December 31, 2013 and 2012, respectively) | 176,579 | 88,786 | |||||||||||
Other | 264,603 | 215,293 | |||||||||||
$ | 1,319,061 | $ | 1,295,969 | ||||||||||
Accrued liabilities include the following: | |||||||||||||
Royalties | $ | 100,542 | $ | 97,051 | |||||||||
Advertising and promotion | 76,453 | 87,878 | |||||||||||
Taxes other than income taxes | 70,121 | 80,673 | |||||||||||
Incentive compensation | 67,239 | 110,039 | |||||||||||
Litigation accrual | — | 137,800 | |||||||||||
Other | 325,800 | 374,307 | |||||||||||
$ | 640,155 | $ | 887,748 | ||||||||||
Other noncurrent liabilities include the following: | |||||||||||||
Benefit plan liabilities | $ | 193,046 | $ | 284,614 | |||||||||
Noncurrent tax liabilities | 186,055 | 213,658 | |||||||||||
Other | 161,526 | 145,457 | |||||||||||
$ | 540,627 | $ | 643,729 | ||||||||||
For the Year | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(In thousands) | |||||||||||||
Currency transaction gains/(losses) included in: | |||||||||||||
Operating income | $ | 38,842 | $ | 61,956 | $ | 34,299 | |||||||
Other non-operating (expense) income, net | (1,270 | ) | 1,563 | (1,848 | ) | ||||||||
Net transaction gains | $ | 37,572 | $ | 63,519 | $ | 32,451 | |||||||
Other selling and administrative expenses include the following: | |||||||||||||
Design and development | $ | 201,942 | $ | 195,070 | $ | 178,982 | |||||||
Identifiable intangible asset amortization | 12,575 | 11,880 | 8,880 | ||||||||||
Bad debt expense | 4,471 | 2,645 | 6,160 |
Quarterly_Financial_Informatio
Quarterly Financial Information (Unaudited) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Quarterly Financial Information (Unaudited) | ' | ||||||||||||||||
Note 14—Quarterly Financial Information (Unaudited) | |||||||||||||||||
First | Second | Third | Fourth | ||||||||||||||
Quarter | Quarter | Quarter | Quarter | ||||||||||||||
(In thousands, except per share amounts) | |||||||||||||||||
Year Ended December 31, 2013: | |||||||||||||||||
Net sales | $ | 995,606 | $ | 1,169,109 | $ | 2,206,961 | $ | 2,113,216 | |||||||||
Gross profit | 540,051 | 600,008 | 1,187,980 | 1,150,844 | |||||||||||||
Advertising and promotion expenses | 104,540 | 113,403 | 249,386 | 282,876 | |||||||||||||
Other selling and administrative expenses | 369,680 | 391,815 | 410,419 | 388,661 | |||||||||||||
Operating income | 65,831 | 94,790 | 528,175 | 479,307 | |||||||||||||
Income before income taxes | 44,165 | 78,729 | 514,343 | 461,891 | |||||||||||||
Net income (a) | 38,511 | 73,348 | 422,836 | 369,249 | |||||||||||||
Net income per common share—basic | $ | 0.11 | $ | 0.21 | $ | 1.22 | $ | 1.08 | |||||||||
Weighted average number of common shares | 344,315 | 346,614 | 343,279 | 339,402 | |||||||||||||
Net income per common share—diluted | $ | 0.11 | $ | 0.21 | $ | 1.21 | $ | 1.07 | |||||||||
Weighted average number of common and potential common shares | 348,795 | 350,424 | 346,695 | 343,237 | |||||||||||||
Dividends declared per common share | $ | 0.36 | $ | 0.36 | $ | 0.36 | $ | 0.36 | |||||||||
Common stock market price: | |||||||||||||||||
High | $ | 43.77 | $ | 46.79 | $ | 47.08 | $ | 47.82 | |||||||||
Low | 35.7 | 42.64 | 40.39 | 40.39 | |||||||||||||
Year Ended December 31, 2012: | |||||||||||||||||
Net sales | $ | 928,449 | $ | 1,158,711 | $ | 2,077,816 | $ | 2,255,905 | |||||||||
Gross profit | 473,371 | 594,522 | 1,115,371 | 1,225,933 | |||||||||||||
Advertising and promotion expenses | 97,859 | 112,395 | 234,793 | 272,756 | |||||||||||||
Other selling and administrative expenses (b) | 346,776 | 350,694 | 393,211 | 579,698 | |||||||||||||
Operating income (b) | 28,736 | 131,433 | 487,367 | 373,479 | |||||||||||||
Income before income taxes | 10,168 | 111,361 | 466,847 | 356,669 | |||||||||||||
Net income (a) | 7,829 | 96,218 | 365,937 | 306,480 | |||||||||||||
Net income per common share—basic | $ | 0.02 | $ | 0.28 | $ | 1.06 | $ | 0.88 | |||||||||
Weighted average number of common shares | 339,144 | 341,256 | 342,595 | 343,624 | |||||||||||||
Net income per common share—diluted | $ | 0.02 | $ | 0.28 | $ | 1.04 | $ | 0.87 | |||||||||
Weighted average number of common and potential common shares | 343,660 | 345,554 | 347,122 | 348,351 | |||||||||||||
Dividends declared per common share | $ | 0.31 | $ | 0.31 | $ | 0.31 | $ | 0.31 | |||||||||
Common stock market price: | |||||||||||||||||
High | $ | 34.39 | $ | 34.3 | $ | 36.17 | $ | 37.79 | |||||||||
Low | 27.76 | 30.56 | 31.04 | 35.11 | |||||||||||||
(a) | Net income for the first quarter of 2013 included $4.0 million of net tax benefits primarily related to enacted tax law changes. Net income for the second and third quarter of 2013 included net tax benefits of $11.2 million and $17.0 million, respectively, primarily related to reassessments of prior years’ tax liabilities based on the status of audits and tax filings in various jurisdictions, settlements, and enacted tax law changes. Net income for the second and third quarter of 2012 included net tax benefits of $10.5 million and $5.5 million, respectively, primarily related to reassessments of prior years’ tax liabilities based on the status of audits and tax filings in various jurisdictions, settlements, and enacted tax law changes. Net income for the fourth quarter of 2012 included the impact of the Litigation Charge, net of tax, of $87.1 million. | ||||||||||||||||
(b) | Other selling and administrative expenses and operating income for the fourth quarter of 2012 included the impact of the Litigation Charge of $137.8 million. |
Subsequent_Event
Subsequent Event | 12 Months Ended |
Dec. 31, 2013 | |
Subsequent Event | ' |
Note 15—Subsequent Event | |
On January 31, 2014, Mattel announced that its Board of Directors declared a first quarter dividend of $0.38 per common share. The dividend is payable on March 7, 2014 to stockholders of record on February 20, 2014. |
Valuation_and_Qualifying_Accou
Valuation and Qualifying Accounts and Allowances | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Valuation and Qualifying Accounts and Allowances | ' | ||||||||||||||||
SCHEDULE II | |||||||||||||||||
MATTEL, INC. AND SUBSIDIARIES | |||||||||||||||||
VALUATION AND QUALIFYING ACCOUNTS AND ALLOWANCES | |||||||||||||||||
Balance at | Additions | Net | Balance at | ||||||||||||||
Beginning | Charged to | Deductions | End of | ||||||||||||||
of Year | Operations | and Other | Year | ||||||||||||||
(In thousands) | |||||||||||||||||
Allowance for Doubtful Accounts: | |||||||||||||||||
Year ended December 31, 2013 | $ | 33,499 | $ | 4,471 | $ | (17,554 | )(a) | $ | 20,416 | ||||||||
Year ended December 31, 2012 | 26,331 | 15,395 | (d) | (8,227 | )(a) | 33,499 | |||||||||||
Year ended December 31, 2011 | 21,775 | 6,160 | (1,604 | )(a) | 26,331 | ||||||||||||
Allowance for Inventory Obsolescence: | |||||||||||||||||
Year ended December 31, 2013 | $ | 46,585 | $ | 35,027 | $ | (32,499 | )(b) | $ | 49,113 | ||||||||
Year ended December 31, 2012 | 39,247 | 36,209 | (28,871 | )(b) | 46,585 | ||||||||||||
Year ended December 31, 2011 | 46,876 | 33,027 | (40,656 | )(b) | 39,247 | ||||||||||||
Income Tax Valuation Allowances: | |||||||||||||||||
Year ended December 31, 2013 | $ | 67,705 | $ | 6,564 | $ | (9,628 | )(c) | $ | 64,641 | ||||||||
Year ended December 31, 2012 | 42,286 | 38,740 | (13,321 | )(c) | 67,705 | ||||||||||||
Year ended December 31, 2011 | 44,917 | 7,394 | (10,025 | )(c) | 42,286 | ||||||||||||
(a) | Includes write-offs, recoveries of previous write-offs, and currency translation adjustments. | ||||||||||||||||
(b) | Primarily relates to the disposal of related inventory and raw materials and currency translation adjustments. | ||||||||||||||||
(c) | Primarily represents projected utilization and write-offs of loss carryforwards and changes in tax rates for 2013; projected utilization and write-offs of loss carryforwards for 2012; and utilization and write-offs of loss carryforwards for 2011 and change in the projected utilization of loss carryforwards due to tax law changes extending the carryover periods in 2011. | ||||||||||||||||
(d) | Includes an allowance for doubtful accounts of $12.8 million related to a transaction that was not recognized in the statement of operations as the transaction did not meet the relevant revenue recognition criteria. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2013 | |
Principles of Consolidation and Basis of Preparation | ' |
Principles of Consolidation and Basis of Preparation | |
The consolidated financial statements include the accounts of Mattel, Inc. and its subsidiaries. All wholly and majority-owned subsidiaries are consolidated and included in Mattel’s consolidated financial statements. Mattel does not have any minority stock ownership interests in which it has a controlling financial interest that would require consolidation. All significant intercompany accounts and transactions have been eliminated upon consolidation. | |
Use of Estimates | ' |
Use of Estimates | |
Preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (“US GAAP”) requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could ultimately differ from those estimates. | |
Cash and Equivalents | ' |
Cash and Equivalents | |
Cash and equivalents include short-term investments, which are highly liquid investments with maturities of three months or less when purchased. Such investments are stated at cost, which approximates market value. | |
Accounts Receivable and Allowance for Doubtful Accounts | ' |
Accounts Receivable and Allowance for Doubtful Accounts | |
Credit is granted to customers on an unsecured basis. Credit limits and payment terms are established based on extensive evaluations made on an ongoing basis throughout the fiscal year of the financial performance, cash generation, financing availability, and liquidity status of each customer. Customers are reviewed at least annually, with more frequent reviews performed as necessary, based on the customers’ financial condition and the level of credit being extended. For customers who are experiencing financial difficulties, management performs additional financial analyses before shipping to those customers on credit. Mattel uses a variety of financial arrangements to ensure collectibility of accounts receivable of customers deemed to be a credit risk, including requiring letters of credit, purchasing various forms of credit insurance with unrelated third parties, factoring, or requiring cash in advance of shipment. | |
Mattel records an allowance for doubtful accounts based on management’s assessment of the business environment, customers’ financial condition, historical collection experience, accounts receivable aging, and customer disputes. | |
Inventories | ' |
Inventories | |
Inventories, net of an allowance for excess quantities and obsolescence, are stated at the lower of cost or market. Inventory allowances are charged to cost of sales and establish a lower cost basis for the inventory. Cost is determined by the first-in, first-out method. | |
Property, Plant, and Equipment | ' |
Property, Plant, and Equipment | |
Property, plant, and equipment are stated at cost less accumulated depreciation and amortization. Depreciation is computed using the straight-line method over estimated useful lives of 10 to 30 years for buildings, 3 to 10 years for machinery and equipment, and 10 to 20 years, not to exceed the lease term, for leasehold improvements. Tools, dies, and molds are depreciated using the straight-line method over 3 years. Estimated useful lives are periodically reviewed and, where appropriate, changes are made prospectively. The carrying value of property, plant, and equipment is reviewed when events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. Any potential impairment identified is assessed by evaluating the operating performance and future undiscounted cash flows of the underlying assets. When property is sold or retired, the cost of the property and the related accumulated depreciation are removed from the consolidated balance sheet, and any resulting gain or loss is included in the results of operations. | |
Goodwill | ' |
Goodwill is allocated to various reporting units, which are at the operating segment level, for purposes of evaluating whether goodwill is impaired. As more fully described in “Note 12 to the Consolidated Financial Statements—Segment Information,” on January 1, 2012, Mattel changed its operating segments to align with its new organizational structure, which resulted in changes to its reporting units. The new reporting units are: (i) North America, (ii) International, and (iii) American Girl. Components of the operating segments have been aggregated into a single reporting unit as the components have similar economic characteristics. The similar economic characteristics include the nature of the products, the nature of the production processes, the customers, and the manner in which the products are distributed. Mattel reassigned goodwill to the new reporting units based on a relative fair value approach. 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. | |
Nonamortizable Intangible Assets | ' |
Mattel tests its nonamortizable intangible assets, including trademarks and trade names, for impairment by comparing the estimated fair values of the nonamortizable intangible assets with the carrying values. Mattel tests nonamortizable intangible assets for impairment annually in the third quarter or whenever events or changes in circumstances indicate that the carrying value may exceed its fair value. | |
Amortizable Intangible Assets | ' |
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 recovered. | |
Foreign Currency Translation Exposure | ' |
Foreign Currency Translation Exposure | |
Mattel’s reporting currency is the US dollar. The translation of its net investments in subsidiaries with non-US 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-US dollar functional currencies are translated into US dollars at year-end exchange rates. Income, expense, and cash flow items are translated at weighted average exchange rates prevailing during the year. The resulting currency translation adjustments are recorded as a component of accumulated other comprehensive loss within stockholders’ equity. Mattel’s primary currency translation exposures in 2013 were related to its net investments in entities having functional currencies denominated in the Euro, Brazilian real, Australian dollar, and Indonesian rupiah. | |
Foreign Currency Transaction Exposure | ' |
Foreign Currency Transaction Exposure | |
Currency exchange rate fluctuations may impact Mattel’s results of operations and cash flows. Mattel’s currency transaction exposures include gains and losses realized on unhedged inventory purchases and unhedged receivables and payables balances that are denominated in a currency other than the applicable functional currency. Gains and losses on unhedged inventory purchases and other transactions associated with operating activities are recorded in the components of operating income in the consolidated statement of operations. Gains and losses on unhedged intercompany loans and advances are recorded as a component of other non-operating (income) expense, net in the consolidated statement of operations in the period in which the currency exchange rate changes. Inventory transactions denominated in the Euro, British pound sterling, Mexican peso, Brazilian real, and Indonesian rupiah were the primary transactions that caused foreign currency transaction exposure for Mattel in 2013. | |
Derivative Instruments | ' |
Derivative Instruments | |
Mattel uses foreign currency forward exchange contracts as cash flow hedges primarily to hedge its purchases and sales of inventory denominated in foreign currencies. At the inception of the contracts, Mattel designates these derivatives as cash flow hedges and documents the relationship of the hedge to the underlying transaction. Hedge effectiveness is assessed at inception and throughout the life of the hedge to ensure the hedge qualifies for hedge accounting. Changes in fair value associated with hedge ineffectiveness, if any, are recorded in the results of operations. Changes in fair value of cash flow hedge derivatives are deferred and recorded as part of accumulated other comprehensive loss in stockholders’ equity until the underlying transaction affects earnings. In the event that an anticipated transaction is no longer likely to occur, Mattel recognizes the change in fair value of the derivative in its results of operations in the period the determination is made. | |
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 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. | |
Revenue Recognition | ' |
Revenue is recognized upon shipment or upon receipt of products by the customer, depending on terms, provided that: there are no uncertainties regarding customer acceptance; persuasive evidence of an agreement exists documenting the specific terms of the transaction; the sales price is fixed or determinable; and collectibility is reasonably assured. Management assesses the business environment, the customer’s financial condition, historical collection experience, accounts receivable aging, and customer disputes to determine whether collectibility is reasonably assured. If collectibility is not considered reasonably assured at the time of sale, Mattel does not recognize revenue until collection occurs. Value added taxes are recorded on a net basis and are excluded from revenue. | |
Sales Adjustments | ' |
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 are based primarily on customer purchases, customer performance of specified promotional activities, and other specified factors such as sales to consumers. The costs of these programs are recorded as sales adjustments that reduce gross revenue in the period the related revenue is recognized. | |
Advertising and Promotion Costs | ' |
Advertising and Promotion Costs | |
Costs of media advertising are expensed the first time the advertising takes place, except for direct-response advertising, which is capitalized and amortized over its expected period of future benefits. Direct-response advertising consists primarily of catalog production and mailing costs, which are generally amortized within three months from the date the catalogs are mailed. | |
Product Recalls and Withdrawals | ' |
Product Recalls and Withdrawals | |
Mattel establishes a reserve for product recalls and withdrawals on a product-specific basis when circumstances giving rise to the recall or withdrawal become known. Facts and circumstances related to the recall or withdrawal, including where the product affected by the recall or withdrawal is located (e.g., with consumers, in customers’ inventory, or in Mattel’s inventory), cost estimates for shipping and handling for returns, cost estimates for communicating the recall or withdrawal to consumers and customers, and cost estimates for parts and labor if the recalled or withdrawn product is deemed to be repairable, are considered when establishing a product recall or withdrawal reserve. These factors are updated and reevaluated each period, and the related reserves are adjusted when these factors indicate that the recall or withdrawal reserve is either not sufficient to cover or exceeds the estimated product recall or withdrawal expenses. | |
Design and Development Costs | ' |
Design and Development Costs | |
Product design and development costs primarily include employee compensation and outside services and are charged to the results of operations as incurred. | |
Employee Benefit Plans | ' |
Employee Benefit Plans | |
Mattel and certain of its subsidiaries have retirement and other postretirement benefit plans covering substantially all employees of these companies. Actuarial valuations are used in determining amounts recognized in the financial statements for certain retirement and other postretirement benefit plans (see “Note 4 to the Consolidated Financial Statements—Employee Benefit Plans”). | |
Share-Based Payments | ' |
Share-Based Payments | |
Mattel recognizes the cost of employee share-based payment awards on a straight-line attribution basis over the requisite employee service period, net of estimated forfeitures. In determining when additional tax benefits associated with share-based payment exercises are recognized, Mattel follows the ordering of deductions under the tax law, which allows deductions for share-based payment exercises to be utilized before previously existing net operating loss carryforwards. | |
Determining the fair value of share-based awards at the measurement date requires judgment, including estimating the expected term that stock options will be outstanding prior to exercise, the associated volatility, and the expected dividends. Mattel estimates the fair value of options granted using the Black-Scholes valuation model. The expected life of the options used in this calculation is the period of time the options are expected to be outstanding and has been determined based on historical exercise experience. Expected stock price volatility is based on the historical volatility of Mattel’s stock for a period approximating the expected life, the expected dividend yield is based on Mattel’s most recent actual annual dividend payout, and the risk-free interest rate is based on the implied yield available on US Treasury zero-coupon issues approximating the expected life. Judgment is also required in estimating the amount of share-based awards that will be forfeited prior to vesting. | |
Income Taxes | ' |
Income Taxes | |
Certain income and expense items are accounted for differently for financial reporting and income tax purposes. Deferred income tax assets and liabilities are determined based on the difference between the financial statement and tax bases of assets and liabilities, applying enacted statutory income tax rates in effect for the year in which the differences are expected to reverse. | |
In the normal course of business, Mattel is regularly audited by federal, state, local, and foreign tax authorities. The ultimate settlement of any particular issue with the applicable taxing authority could have a material impact on Mattel’s consolidated financial statements. | |
New Accounting Pronouncements | ' |
New Accounting Pronouncements | |
In March 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2013-05, Parent’s Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity, which requires the release of a cumulative translation adjustment into net income when a parent ceases to have a controlling financial interest in a subsidiary or group of assets within a consolidated foreign entity and the sale or transfer results in the complete or substantially complete liquidation of the foreign entity. ASU 2013-05 will be effective for interim and annual reporting periods beginning after December 15, 2013. Mattel has not completed its evaluation of ASU 2013-05, but does not expect the adoption of ASU 2013-05 to have a material effect on its operating results or financial position. | |
In July 2013, the FASB issued ASU 2013-11, Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists, which generally requires an unrecognized tax benefit, or a portion of an unrecognized tax benefit, to be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward. However, to the extent a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date to settle any additional income taxes that would result from the disallowance of a tax position or the applicable tax law does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. ASU 2013-11 will be effective for interim and annual reporting periods beginning after December 15, 2013. Mattel has not completed its evaluation of ASU 2013-11, but does not expect the adoption of ASU 2013-11 to have a material effect on its operating results or financial position. | |
Income Tax Uncertainties and Unrecognized Tax Benefits Policy | ' |
In assessing whether uncertain tax positions should be recognized in its financial statements, Mattel first determines whether it is more-likely-than-not (a greater than 50 percent likelihood) 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 unrecognized tax benefits for US 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 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. | |
Debt Policy | ' |
The proportion of unamortized debt issuance costs from the prior facility renewal related to creditors involved in both the prior facility and amended facility and borrowing costs incurred as a result of the amendment were deferred and will be amortized over the term of the amended facility. | |
Earnings Per Share Policy | ' |
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. Certain of Mattel’s RSUs are considered participating securities because they contain 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. |
Goodwill_and_Other_Intangibles1
Goodwill and Other Intangibles (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Goodwill | ' | ||||||||||||||||
The change in the carrying amount of goodwill by operating segment for 2013 and 2012 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. | |||||||||||||||||
North America | International | American Girl | Total | ||||||||||||||
(In thousands) | |||||||||||||||||
Balance at December 31, 2011 | $ | 393,905 | $ | 214,612 | $ | 213,622 | $ | 822,139 | |||||||||
Acquisition | 151,348 | 100,898 | — | 252,246 | |||||||||||||
Currency exchange rate impact | 1,645 | 4,659 | 109 | 6,413 | |||||||||||||
Balance at December 31, 2012 | 546,898 | 320,169 | 213,731 | 1,080,798 | |||||||||||||
Currency exchange rate impact | 697 | 1,487 | 257 | 2,441 | |||||||||||||
Balance at December 31, 2013 | $ | 547,595 | $ | 321,656 | $ | 213,988 | $ | 1,083,239 | |||||||||
Schedule of Identifiable Intangibles | ' | ||||||||||||||||
Identifiable intangibles include the following: | |||||||||||||||||
December 31, | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
(In thousands) | |||||||||||||||||
Nonamortizable identifiable intangibles | $ | 504,241 | $ | 617,223 | |||||||||||||
Identifiable intangibles (net of amortization of $68.3 million and $64.9 million at December 31, 2013 and 2012, respectively) | 176,579 | 88,786 | |||||||||||||||
$ | 680,820 | $ | 706,009 | ||||||||||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Pre-tax Income | ' | ||||||||||||
Consolidated pre-tax income consists of the following: | |||||||||||||
For the Year | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(In thousands) | |||||||||||||
US operations | $ | 231,372 | $ | 104,707 | $ | 169,706 | |||||||
Foreign operations | 867,756 | 840,338 | 800,967 | ||||||||||
$ | 1,099,128 | $ | 945,045 | $ | 970,673 | ||||||||
Provision (Benefit) for Current and Deferred Income Taxes | ' | ||||||||||||
The provision (benefit) for current and deferred income taxes consists of the following: | |||||||||||||
For the Year | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(In thousands) | |||||||||||||
Current | |||||||||||||
Federal | $ | 38,227 | $ | 69,639 | $ | 15,933 | |||||||
State | 6,447 | 8,660 | 5,268 | ||||||||||
Foreign | 130,878 | 126,465 | 131,596 | ||||||||||
175,552 | 204,764 | 152,797 | |||||||||||
Deferred | |||||||||||||
Federal | 30,342 | (26,489 | ) | 49,853 | |||||||||
State | (512 | ) | 520 | (2,629 | ) | ||||||||
Foreign | (10,198 | ) | (10,214 | ) | 2,144 | ||||||||
19,632 | (36,183 | ) | 49,368 | ||||||||||
Provision for income taxes | $ | 195,184 | $ | 168,581 | $ | 202,165 | |||||||
Deferred Income Tax Assets (Liabilities) | ' | ||||||||||||
Deferred income taxes are provided principally for tax credit carryforwards, research and development expenses, net operating loss carryforwards, employee compensation-related expenses, 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, | |||||||||||||
2013 | 2012 | ||||||||||||
(In thousands) | |||||||||||||
Tax credit carryforwards | $ | 77,396 | $ | 59,372 | |||||||||
Research and development expenses | 187,477 | 181,449 | |||||||||||
Loss carryforwards | 124,201 | 131,989 | |||||||||||
Allowances and reserves | 202,141 | 229,056 | |||||||||||
Deferred compensation | 111,850 | 118,878 | |||||||||||
Postretirement benefits | 37,479 | 72,912 | |||||||||||
Other | 66,599 | 67,942 | |||||||||||
Gross deferred income tax assets | 807,143 | 861,598 | |||||||||||
Intangible assets | (282,737 | ) | (279,592 | ) | |||||||||
Other | (5,555 | ) | (8,262 | ) | |||||||||
Gross deferred income tax liabilities | (288,292 | ) | (287,854 | ) | |||||||||
Deferred income tax asset valuation allowances | (64,641 | ) | (67,705 | ) | |||||||||
Net deferred income tax assets | $ | 454,210 | $ | 506,039 | |||||||||
Balance Sheet Classification of Deferred Income Tax Assets (Liabilities) | ' | ||||||||||||
Net deferred income tax assets are reported in the consolidated balance sheets as follows: | |||||||||||||
December 31, | |||||||||||||
2013 | 2012 | ||||||||||||
(In thousands) | |||||||||||||
Prepaid expenses and other current assets | $ | 195,872 | $ | 253,664 | |||||||||
Other noncurrent assets | 373,638 | 374,667 | |||||||||||
Accrued liabilities | (109 | ) | (152 | ) | |||||||||
Other noncurrent liabilities | (115,191 | ) | (122,140 | ) | |||||||||
$ | 454,210 | $ | 506,039 | ||||||||||
Expiration of Loss and Tax Credit Carryforwards | ' | ||||||||||||
Mattel’s loss and tax credit carryforwards expire in the following periods: | |||||||||||||
Loss | Tax Credit | ||||||||||||
Carryforwards | Carryforwards | ||||||||||||
(In thousands) | |||||||||||||
2014 – 2018 | $ | 60,363 | $ | 27,678 | |||||||||
Thereafter | 180,756 | 43,502 | |||||||||||
No expiration date | 204,681 | 6,220 | |||||||||||
Total | $ | 445,800 | $ | 77,400 | |||||||||
Reconciliation of Provision for Income Taxes at US Federal Statutory Rate to Provision in Statements of Operations | ' | ||||||||||||
Differences between the provision for income taxes at the US federal statutory income tax rate and the provision in the consolidated statements of operations are as follows: | |||||||||||||
For the Year | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(In thousands) | |||||||||||||
Provision at US federal statutory rate | $ | 384,695 | $ | 330,766 | $ | 339,736 | |||||||
(Decrease) increase resulting from: | |||||||||||||
Foreign earnings taxed at different rates, including withholding taxes | (165,768 | ) | (157,488 | ) | (139,476 | ) | |||||||
Foreign losses without income tax benefit | 3,215 | 1,047 | 2,883 | ||||||||||
State and local taxes, net of US federal benefit | 4,854 | 6,856 | 4,833 | ||||||||||
Adjustments to previously accrued taxes | (32,200 | ) | (16,000 | ) | (6,800 | ) | |||||||
Other | 388 | 3,400 | 989 | ||||||||||
Provision for income taxes | $ | 195,184 | $ | 168,581 | $ | 202,165 | |||||||
Reconciliation of Unrecognized Tax Benefits | ' | ||||||||||||
A reconciliation of unrecognized tax benefits is as follows: | |||||||||||||
For the Year | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(In thousands) | |||||||||||||
Unrecognized tax benefits at January 1 | $ | 285,560 | $ | 262,560 | $ | 252,570 | |||||||
Increases for positions taken in current year | 12,997 | 14,800 | 13,480 | ||||||||||
Increases for positions taken in a prior year | 14,289 | 21,030 | 2,280 | ||||||||||
Decreases for positions taken in a prior year | (186,555 | ) | (700 | ) | (980 | ) | |||||||
Decreases for settlements with taxing authorities | (5,135 | ) | (800 | ) | (1,390 | ) | |||||||
Decreases for lapses in the applicable statute of limitations | (9,786 | ) | (11,330 | ) | (3,400 | ) | |||||||
Unrecognized tax benefits at December 31 | $ | 111,370 | $ | 285,560 | $ | 262,560 | |||||||
Employee_Benefit_Plans_Tables
Employee Benefit Plans (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Summary of Retirement Plan Expense | ' | ||||||||||||||||||||||||
A summary of retirement plan expense is as follows: | |||||||||||||||||||||||||
For the Year | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
Defined contribution retirement plans | $ | 43,694 | $ | 40,266 | $ | 36,873 | |||||||||||||||||||
Defined benefit pension plans | 30,747 | 33,597 | 37,597 | ||||||||||||||||||||||
Deferred compensation and excess benefit plans | 9,298 | 5,740 | 730 | ||||||||||||||||||||||
Postretirement benefit plans | 2,245 | 1,607 | 1,601 | ||||||||||||||||||||||
$ | 85,984 | $ | 81,210 | $ | 76,801 | ||||||||||||||||||||
Summary of Components of Net Periodic Benefit Cost and Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income | ' | ||||||||||||||||||||||||
A summary of the components of Mattel’s net periodic benefit cost and other changes in plan assets and benefit obligations recognized in other comprehensive income for the years ended December 31 is as follows: | |||||||||||||||||||||||||
Defined Benefit Pension Plans | Postretirement Benefit Plans | ||||||||||||||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
Net periodic benefit cost: | |||||||||||||||||||||||||
Service cost | $ | 12,982 | $ | 13,285 | $ | 13,610 | $ | 82 | $ | 79 | $ | 73 | |||||||||||||
Interest cost | 25,580 | 29,530 | 28,433 | 1,585 | 1,411 | 1,576 | |||||||||||||||||||
Expected return on plan assets | (29,786 | ) | (31,270 | ) | (25,714 | ) | — | — | — | ||||||||||||||||
Amortization of prior service (credit) cost | (1,057 | ) | (502 | ) | 1,776 | — | — | — | |||||||||||||||||
Recognized actuarial loss (gain) | 21,193 | 19,020 | 19,492 | 578 | 117 | (48 | ) | ||||||||||||||||||
Settlement loss | 1,835 | 3,534 | — | — | — | — | |||||||||||||||||||
Net periodic benefit cost | $ | 30,747 | $ | 33,597 | $ | 37,597 | $ | 2,245 | $ | 1,607 | $ | 1,601 | |||||||||||||
Other changes in plan assets and benefit obligations recognized in other comprehensive income: | |||||||||||||||||||||||||
Net actuarial (gain) loss | $ | (95,744 | ) | $ | 27,144 | $ | 62,687 | $ | 3,470 | $ | 4,755 | $ | (1,249 | ) | |||||||||||
Prior service cost (credit) | — | (11,789 | ) | 2 | — | — | — | ||||||||||||||||||
Amortization of prior service credit (cost) | 1,057 | 501 | (1,776 | ) | — | — | — | ||||||||||||||||||
Total recognized in other comprehensive income (a) | $ | (94,687 | ) | $ | 15,856 | $ | 60,913 | $ | 3,470 | $ | 4,755 | $ | (1,249 | ) | |||||||||||
Total recognized in net periodic benefit cost and other comprehensive income | $ | (63,940 | ) | $ | 49,453 | $ | 98,510 | $ | 5,715 | $ | 6,362 | $ | 352 | ||||||||||||
(a) | Amounts exclude related tax expense (benefit) of $32.5 million, $(2.3) million, and $(21.6) million, during 2013, 2012, and 2011, respectively, which are also included in other comprehensive income. | ||||||||||||||||||||||||
Assumptions Used to Calculate Net Periodic Benefit Cost for Domestic Defined Benefit Pension and Postretirement Benefit Plans | ' | ||||||||||||||||||||||||
Net periodic benefit cost for Mattel’s domestic defined benefit pension and postretirement benefit plans was calculated on January 1 of each year using the following assumptions: | |||||||||||||||||||||||||
For the Year | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
Defined benefit pension plans: | |||||||||||||||||||||||||
Discount rate | 4.00% | 4.50% | 5.20% | ||||||||||||||||||||||
Weighted average rate of future compensation increases | 3.80% | 3.80% | 3.80% | ||||||||||||||||||||||
Long-term rate of return on plan assets | 8.00% | 8.00% | 8.00% | ||||||||||||||||||||||
Postretirement benefit plans: | |||||||||||||||||||||||||
Discount rate | 4.00% | 4.50% | 5.20% | ||||||||||||||||||||||
Annual increase in Medicare Part B premium | 6.00% | 6.00% | 6.00% | ||||||||||||||||||||||
Health care cost trend rate: | |||||||||||||||||||||||||
Pre-65 | 8.50% | 7.50% | 8.00% | ||||||||||||||||||||||
Post-65 | 7.50% | 7.50% | 8.00% | ||||||||||||||||||||||
Ultimate cost trend rate: | |||||||||||||||||||||||||
Pre-65 | 6.10% | 5.00% | 5.00% | ||||||||||||||||||||||
Post-65 | 5.40% | 5.00% | 5.00% | ||||||||||||||||||||||
Year that the rate reaches the ultimate cost trend rate: | |||||||||||||||||||||||||
Pre-65 | 2030 | 2017 | 2017 | ||||||||||||||||||||||
Post-65 | 2030 | 2017 | 2017 | ||||||||||||||||||||||
Summary of Changes in Benefit Obligation and Plan Assets for Defined Benefit Pension and Postretirement Benefit Plans | ' | ||||||||||||||||||||||||
A summary of the changes in benefit obligation and plan assets is as follows: | |||||||||||||||||||||||||
Defined Benefit | Postretirement | ||||||||||||||||||||||||
Pension Plans | Benefit Plans | ||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
Change in Benefit Obligation: | |||||||||||||||||||||||||
Benefit obligation, beginning of year | $ | 669,351 | $ | 610,016 | $ | 35,433 | $ | 32,334 | |||||||||||||||||
Service cost | 12,982 | 13,285 | 82 | 79 | |||||||||||||||||||||
Interest cost | 25,580 | 29,530 | 1,585 | 1,411 | |||||||||||||||||||||
Plan amendments | — | (11,791 | ) | — | — | ||||||||||||||||||||
Impact of currency exchange rate changes | (2,206 | ) | 1,713 | — | — | ||||||||||||||||||||
Actuarial (gain) loss | (57,418 | ) | 74,433 | 4,048 | 4,872 | ||||||||||||||||||||
Benefits paid | (31,351 | ) | (47,835 | ) | (3,234 | ) | (3,263 | ) | |||||||||||||||||
Benefit obligation, end of year | $ | 616,938 | $ | 669,351 | $ | 37,914 | $ | 35,433 | |||||||||||||||||
Change in Plan Assets: | |||||||||||||||||||||||||
Plan assets at fair value, beginning of year | $ | 406,163 | $ | 338,081 | $ | — | $ | — | |||||||||||||||||
Actual return on plan assets (a) | 47,529 | 57,028 | — | — | |||||||||||||||||||||
Employer contributions | 32,078 | 55,752 | 3,234 | 3,263 | |||||||||||||||||||||
Impact of currency exchange rate changes | 2,026 | 3,137 | — | — | |||||||||||||||||||||
Benefits paid | (31,351 | ) | (47,835 | ) | (3,234 | ) | (3,263 | ) | |||||||||||||||||
Plan assets at fair value, end of year | $ | 456,445 | $ | 406,163 | $ | — | $ | — | |||||||||||||||||
Net Amount Recognized in Consolidated Balance Sheets: | |||||||||||||||||||||||||
Funded status, end of year | $ | (160,493 | ) | $ | (263,188 | ) | $ | (37,914 | ) | $ | (35,433 | ) | |||||||||||||
Current accrued benefit liability | (2,661 | ) | (11,407 | ) | (2,700 | ) | (2,600 | ) | |||||||||||||||||
Noncurrent accrued benefit liability | (157,832 | ) | (251,781 | ) | (35,214 | ) | (32,833 | ) | |||||||||||||||||
Total accrued benefit liability | $ | (160,493 | ) | $ | (263,188 | ) | $ | (37,914 | ) | $ | (35,433 | ) | |||||||||||||
Amounts Recognized in Accumulated Other Comprehensive Loss (b): | |||||||||||||||||||||||||
Net actuarial loss | $ | 205,091 | $ | 300,835 | $ | 7,119 | $ | 3,649 | |||||||||||||||||
Prior service (credit) | (10,093 | ) | (11,150 | ) | — | — | |||||||||||||||||||
$ | 194,998 | $ | 289,685 | $ | 7,119 | $ | 3,649 | ||||||||||||||||||
(a) | The 2012 actual return on plan assets from defined benefit pension plan includes an increase of approximately $12 million related to assets transferred to the Fisher-Price Pension Plan resulting from its conversion to a cash balance plan. | ||||||||||||||||||||||||
(b) | Amounts exclude related tax benefits of $70.2 million and $102.7 million for December 31, 2013 and 2012, respectively, which are also included in accumulated other comprehensive loss. | ||||||||||||||||||||||||
Assumptions Used to Determine Projected and Accumulated Benefit Obligations of Domestic Defined Benefit Pension and Postretirement Benefit Plans | ' | ||||||||||||||||||||||||
The assumptions used in determining the projected and accumulated benefit obligations of Mattel’s domestic defined benefit pension and postretirement benefit plans are as follows: | |||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Defined benefit pension plans: | |||||||||||||||||||||||||
Discount rate | 4.70% | 4.00% | |||||||||||||||||||||||
Weighted average rate of future compensation increases | 3.80% | 3.80% | |||||||||||||||||||||||
Postretirement benefit plans: | |||||||||||||||||||||||||
Discount rate | 4.70% | 4.00% | |||||||||||||||||||||||
Annual increase in Medicare Part B premium | 6.00% | 6.00% | |||||||||||||||||||||||
Health care cost trend rate: | |||||||||||||||||||||||||
Pre-65 | 8.50% | 8.50% | |||||||||||||||||||||||
Post-65 | 7.50% | 7.50% | |||||||||||||||||||||||
Ultimate cost trend rate: | |||||||||||||||||||||||||
Pre-65 | 6.10% | 6.10% | |||||||||||||||||||||||
Post-65 | 5.40% | 5.40% | |||||||||||||||||||||||
Year that the rate reaches the ultimate cost trend rate: | |||||||||||||||||||||||||
Pre-65 | 2030 | 2030 | |||||||||||||||||||||||
Post-65 | 2030 | 2030 | |||||||||||||||||||||||
Estimated Future Benefit Payments for Defined Benefit Pension and Postretirement Benefit Plans | ' | ||||||||||||||||||||||||
The estimated future benefit payments for Mattel’s defined benefit pension and postretirement benefit plans are as follows: | |||||||||||||||||||||||||
Defined Benefit | Postretirement | ||||||||||||||||||||||||
Pension Plans | Benefit Plans | ||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
2014 | $ | 32,289 | $ | 2,700 | |||||||||||||||||||||
2015 | 36,071 | 2,600 | |||||||||||||||||||||||
2016 | 42,815 | 2,500 | |||||||||||||||||||||||
2017 | 34,583 | 2,500 | |||||||||||||||||||||||
2018 | 35,934 | 2,500 | |||||||||||||||||||||||
2019 – 2023 | 203,523 | 11,100 | |||||||||||||||||||||||
Plan Assets Measured and Reported in Financial Statements at Fair Value | ' | ||||||||||||||||||||||||
Mattel’s defined benefit pension plan assets are measured and reported in the financial statements at fair value using inputs, which are more fully described in “Note 10 to the Consolidated Financial Statements—Fair Value Measurements,” as follows: | |||||||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
Collective trust funds: | |||||||||||||||||||||||||
US equity securities | $ | — | $ | 174,735 | $ | — | $ | 174,735 | |||||||||||||||||
International equity securities | — | 164,998 | — | 164,998 | |||||||||||||||||||||
International fixed income | — | 41,523 | — | 41,523 | |||||||||||||||||||||
US government and US government agency securities | — | 31,434 | — | 31,434 | |||||||||||||||||||||
US corporate debt instruments | — | 21,171 | — | 21,171 | |||||||||||||||||||||
International corporate debt instruments | — | 4,996 | — | 4,996 | |||||||||||||||||||||
Mutual funds | 1,520 | 7,221 | — | 8,741 | |||||||||||||||||||||
Other | — | 8,847 | — | 8,847 | |||||||||||||||||||||
Total | $ | 1,520 | $ | 454,925 | $ | — | $ | 456,445 | |||||||||||||||||
31-Dec-12 | |||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
Collective trust funds: | |||||||||||||||||||||||||
US equity securities | $ | — | $ | 148,435 | $ | — | $ | 148,435 | |||||||||||||||||
International equity securities | — | 147,756 | — | 147,756 | |||||||||||||||||||||
International fixed income | — | 36,580 | — | 36,580 | |||||||||||||||||||||
US government and US government agency securities | — | 35,944 | — | 35,944 | |||||||||||||||||||||
US corporate debt instruments | — | 20,514 | — | 20,514 | |||||||||||||||||||||
International corporate debt instruments | — | 5,455 | — | 5,455 | |||||||||||||||||||||
Mutual funds | 1,422 | 3,661 | — | 5,083 | |||||||||||||||||||||
Other | — | 6,396 | — | 6,396 | |||||||||||||||||||||
Total | $ | 1,422 | $ | 404,741 | $ | — | $ | 406,163 | |||||||||||||||||
Seasonal_Financing_and_Debt_Ta
Seasonal Financing and Debt (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Long-Term Debt | ' | ||||||||||||||||
Mattel’s long-term debt consists of the following: | |||||||||||||||||
December 31, | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
(In thousands) | |||||||||||||||||
Medium-term notes | $ | — | $ | 50,000 | |||||||||||||
2008 Senior Notes | — | 350,000 | |||||||||||||||
2010 Senior Notes due October 2020 and October 2040 | 500,000 | 500,000 | |||||||||||||||
2011 Senior Notes due November 2016 and November 2041 | 600,000 | 600,000 | |||||||||||||||
2013 Senior Notes due March 2018 and March 2023 | 500,000 | — | |||||||||||||||
1,600,000 | 1,500,000 | ||||||||||||||||
Less: current portion | — | (400,000 | ) | ||||||||||||||
Total long-term debt | $ | 1,600,000 | $ | 1,100,000 | |||||||||||||
Long-Term Debt Maturity | ' | ||||||||||||||||
The aggregate amount of long-term debt maturing in the next five years and thereafter is as follows: | |||||||||||||||||
2010 | 2011 | 2013 | Total | ||||||||||||||
Senior | Senior | Senior | |||||||||||||||
Notes | Notes | Notes | |||||||||||||||
(In thousands) | |||||||||||||||||
2014 | $ | — | $ | — | $ | — | $ | — | |||||||||
2015 | — | — | — | — | |||||||||||||
2016 | — | 300,000 | — | 300,000 | |||||||||||||
2017 | — | — | — | — | |||||||||||||
2018 | — | — | 250,000 | 250,000 | |||||||||||||
Thereafter | 500,000 | 300,000 | 250,000 | 1,050,000 | |||||||||||||
$ | 500,000 | $ | 600,000 | $ | 500,000 | $ | 1,600,000 | ||||||||||
Stockholders_Equity_Tables
Stockholders' Equity (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Summary of Changes in Accumulated Other Comprehensive Income/Loss | ' | ||||||||||||||||
The following tables present changes in the accumulated balances for each component of other comprehensive income, including current period other comprehensive income and reclassifications out of accumulated other comprehensive income: | |||||||||||||||||
For the Year Ended December 31, 2013 | |||||||||||||||||
Derivative | Defined Benefit | Currency | Total | ||||||||||||||
Instruments | Pension Plans | Translation | |||||||||||||||
Adjustments | |||||||||||||||||
(In thousands) | |||||||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax, as of December 31, 2012 | $ | (2,583 | ) | $ | (190,656 | ) | $ | (271,247 | ) | $ | (464,486 | ) | |||||
Other comprehensive (loss) income before reclassifications | (13,103 | ) | 44,288 | (29,694 | ) | 1,491 | |||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | 4,897 | 14,422 | — | 19,319 | |||||||||||||
Net (decrease) increase in other comprehensive income | (8,206 | ) | 58,710 | (29,694 | ) | 20,810 | |||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax, as of December 31, 2013 | $ | (10,789 | ) | $ | (131,946 | ) | $ | (300,941 | ) | $ | (443,676 | ) | |||||
For the Year Ended December 31, 2012 | |||||||||||||||||
Derivative | Defined Benefit | Currency | Total | ||||||||||||||
Instruments | Pension Plans | Translation | |||||||||||||||
Adjustments | |||||||||||||||||
(In thousands) | |||||||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax, as of December 31, 2011 | $ | 24,616 | $ | (172,398 | ) | $ | (298,863 | ) | $ | (446,645 | ) | ||||||
Other comprehensive income (loss) before reclassifications | 2,734 | (32,390 | ) | 27,616 | (2,040 | ) | |||||||||||
Amounts reclassified from accumulated other comprehensive (loss) income | (29,933 | ) | 14,132 | — | (15,801 | ) | |||||||||||
Net (decrease) increase in other comprehensive income | (27,199 | ) | (18,258 | ) | 27,616 | (17,841 | ) | ||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax, as of December 31, 2012 | $ | (2,583 | ) | $ | (190,656 | ) | $ | (271,247 | ) | $ | (464,486 | ) | |||||
For the Year Ended December 31, 2011 | |||||||||||||||||
Derivative | Defined Benefit | Currency | Total | ||||||||||||||
Instruments | Pension Plans | Translation | |||||||||||||||
Adjustments | |||||||||||||||||
(In thousands) | |||||||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax, as of December 31, 2010 | $ | (3,127 | ) | $ | (134,314 | ) | $ | (221,758 | ) | $ | (359,199 | ) | |||||
Other comprehensive income (loss) before reclassifications | 17,900 | (51,303 | ) | (77,105 | ) | (110,508 | ) | ||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | 9,843 | 13,219 | — | 23,062 | |||||||||||||
Net increase (decrease) in other comprehensive income | 27,743 | (38,084 | ) | (77,105 | ) | (87,446 | ) | ||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax, as of December 31, 2011 | $ | 24,616 | $ | (172,398 | ) | $ | (298,863 | ) | $ | (446,645 | ) | ||||||
Summary of Consolidated Statement of Operations Line Items Affected by Reclassifications from Accumulated Other Comprehensive Income/Loss | ' | ||||||||||||||||
The following table presents the classification and amount of the reclassifications from accumulated other comprehensive income to the consolidated statement of operations: | |||||||||||||||||
For the Year | Statements of Operations | ||||||||||||||||
2013 | 2012 | 2011 | Classification | ||||||||||||||
(In thousands) | |||||||||||||||||
Derivative Instruments | |||||||||||||||||
(Loss) gain on foreign currency forward exchange contracts | $ | (5,735 | ) | $ | 29,978 | $ | (8,502 | ) | Cost of sales | ||||||||
838 | (45 | ) | (1,341 | ) | Provision for income taxes | ||||||||||||
$ | (4,897 | ) | $ | 29,933 | $ | (9,843 | ) | Net income | |||||||||
Defined Benefit Pension Plans | |||||||||||||||||
Amortization of prior service credit (cost) | $ | 1,057 | $ | 502 | $ | (1,776 | ) | (a) | |||||||||
Recognized actuarial loss | (21,771 | ) | (19,137 | ) | (19,444 | ) | (a) | ||||||||||
Settlement loss | (1,835 | ) | (3,534 | ) | — | (a) | |||||||||||
(22,549 | ) | (22,169 | ) | (21,220 | ) | ||||||||||||
8,127 | 8,037 | 8,001 | Provision for income taxes | ||||||||||||||
$ | (14,422 | ) | $ | (14,132 | ) | $ | (13,219 | ) | Net income | ||||||||
(a) | The amortization of prior service credit (cost), recognized actuarial loss, and settlement loss are included in the computation of net periodic benefit cost. Refer to “Note 4 to the Consolidated Financial Statements—Employee Benefit Plans” for additional information regarding Mattel’s net periodic benefit cost. |
ShareBased_Payments_Tables
Share-Based Payments (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Weighted Average Assumptions Used to Determine Fair Value of Options Granted | ' | ||||||||||||||||||||||||
The following weighted average assumptions were used in determining the fair value of options granted: | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
Expected life (in years) | 4.9 | 5 | 5.1 | ||||||||||||||||||||||
Risk-free interest rate | 1.5 | % | 0.7 | % | 1.4 | % | |||||||||||||||||||
Volatility factor | 31.8 | % | 35 | % | 34 | % | |||||||||||||||||||
Dividend yield | 3.4 | % | 3.6 | % | 3.5 | % | |||||||||||||||||||
Summary of Stock Option Information and Weighted Average Exercise Prices | ' | ||||||||||||||||||||||||
The following is a summary of stock option information and weighted average exercise prices for Mattel’s stock options: | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
Shares | Weighted | Shares | Weighted | Shares | Weighted | ||||||||||||||||||||
Average | Average | Average | |||||||||||||||||||||||
Exercise | Exercise | Exercise | |||||||||||||||||||||||
Price | Price | Price | |||||||||||||||||||||||
(In thousands, except weighted average exercise price) | |||||||||||||||||||||||||
Outstanding at January 1 | 14,630 | $ | 22.34 | 19,299 | $ | 20.3 | 23,265 | $ | 19.48 | ||||||||||||||||
Granted | 1,488 | 42.7 | 1,827 | 34.29 | 2,211 | 26.38 | |||||||||||||||||||
Exercised | (6,828 | ) | 19.74 | (6,312 | ) | 19.5 | (5,977 | ) | 19.34 | ||||||||||||||||
Forfeited | (60 | ) | 33.18 | (134 | ) | 27.13 | (163 | ) | 20.5 | ||||||||||||||||
Canceled | (12 | ) | 20.02 | (50 | ) | 20.02 | (37 | ) | 17.46 | ||||||||||||||||
Outstanding at December 31 | 9,218 | $ | 27.48 | 14,630 | $ | 22.34 | 19,299 | $ | 20.3 | ||||||||||||||||
Exercisable at December 31 | 6,135 | $ | 22.7 | 10,971 | $ | 20.03 | 14,359 | $ | 19.39 | ||||||||||||||||
Summary of RSU Information and Weighted Average Grant Date Fair Values | ' | ||||||||||||||||||||||||
The following is a summary of RSU information and weighted average grant date fair values for Mattel’s RSUs: | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
Shares | Weighted | Shares | Weighted | Shares | Weighted | ||||||||||||||||||||
Average | Average | Average | |||||||||||||||||||||||
Grant Date | Grant Date | Grant Date | |||||||||||||||||||||||
Fair Value | Fair Value | Fair Value | |||||||||||||||||||||||
(In thousands, except weighted average grant date fair value) | |||||||||||||||||||||||||
Unvested at January 1 | 3,505 | $ | 28.24 | 3,732 | $ | 22.53 | 4,274 | $ | 19.49 | ||||||||||||||||
Granted | 1,116 | 42.82 | 1,417 | 34.43 | 1,663 | 26.38 | |||||||||||||||||||
Vested | (1,337 | ) | 24.53 | (1,479 | ) | 19.96 | (1,740 | ) | 19.01 | ||||||||||||||||
Forfeited | (248 | ) | 31.82 | (165 | ) | 26.47 | (465 | ) | 21.53 | ||||||||||||||||
Unvested at December 31 | 3,036 | $ | 34.94 | 3,505 | $ | 28.24 | 3,732 | $ | 22.53 | ||||||||||||||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Earnings Per Share | ' | ||||||||||||
The following table reconciles earnings per common share: | |||||||||||||
For the Year | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(In thousands, except per share amounts) | |||||||||||||
Basic: | |||||||||||||
Net income | $ | 903,944 | $ | 776,464 | $ | 768,508 | |||||||
Less: Net income allocable to participating RSUs | (8,335 | ) | (7,730 | ) | (8,821 | ) | |||||||
Net income available for basic common shares | $ | 895,609 | $ | 768,734 | $ | 759,687 | |||||||
Weighted average common shares outstanding | 343,394 | 341,665 | 344,669 | ||||||||||
Basic net income per common share | $ | 2.61 | $ | 2.25 | $ | 2.2 | |||||||
Diluted: | |||||||||||||
Net income | $ | 903,944 | $ | 776,464 | $ | 768,508 | |||||||
Less: Net income allocable to participating RSUs | (8,291 | ) | (7,682 | ) | (8,765 | ) | |||||||
Net income available for diluted common shares | $ | 895,653 | $ | 768,782 | $ | 759,743 | |||||||
Weighted average common shares outstanding | 343,394 | 341,665 | 344,669 | ||||||||||
Weighted average common equivalent shares arising from: | |||||||||||||
Dilutive stock options and non-participating RSUs | 4,065 | 4,493 | 3,755 | ||||||||||
Weighted average number of common and potential common shares | 347,459 | 346,158 | 348,424 | ||||||||||
Diluted net income per common share | $ | 2.58 | $ | 2.22 | $ | 2.18 | |||||||
Derivative_Instruments_Tables
Derivative Instruments (Tables) | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||
Derivative Assets and Liabilities | ' | ||||||||||||||||||
The following table presents Mattel’s derivative assets and liabilities: | |||||||||||||||||||
Asset Derivatives | |||||||||||||||||||
Balance Sheet Classification | Fair Value | ||||||||||||||||||
December 31, | December 31, | ||||||||||||||||||
2013 | 2012 | ||||||||||||||||||
(In thousands) | |||||||||||||||||||
Derivatives designated as hedging instruments: | |||||||||||||||||||
Foreign currency forward exchange contracts | Prepaid expenses and other | $ | 415 | $ | 3,064 | ||||||||||||||
current assets | |||||||||||||||||||
Foreign currency forward exchange contracts | Other noncurrent assets | — | 4 | ||||||||||||||||
Total derivatives designated as hedging instruments | $ | 415 | $ | 3,068 | |||||||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||||||
Foreign currency forward exchange contracts | Prepaid expenses and other | $ | 1,895 | $ | — | ||||||||||||||
current assets | |||||||||||||||||||
Total | $ | 2,310 | $ | 3,068 | |||||||||||||||
Liability Derivatives | |||||||||||||||||||
Balance Sheet Classification | Fair Value | ||||||||||||||||||
December 31, | December 31, | ||||||||||||||||||
2013 | 2012 | ||||||||||||||||||
(In thousands) | |||||||||||||||||||
Derivatives designated as hedging instruments: | |||||||||||||||||||
Foreign currency forward exchange contracts | Accrued liabilities | $ | 12,432 | $ | 8,093 | ||||||||||||||
Foreign currency forward exchange contracts | Other noncurrent liabilities | 470 | 177 | ||||||||||||||||
Total derivatives designated as hedging instruments | $ | 12,902 | $ | 8,270 | |||||||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||||||
Foreign currency forward exchange contracts | Accrued liabilities | $ | 1,711 | $ | 487 | ||||||||||||||
Total | $ | 14,613 | $ | 8,757 | |||||||||||||||
Derivatives Designated as Hedging Instruments by Classification and Amount of Gains and Losses | ' | ||||||||||||||||||
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 Year Ended | For the Year Ended | Statements of | |||||||||||||||||
December 31, 2013 | December 31, 2012 | Operations | |||||||||||||||||
Amount of Gain | Amount of | Amount of Gain | Amount of | Classification | |||||||||||||||
(Loss) Recognized | Gain (Loss) | (Loss) Recognized | Gain (Loss) | ||||||||||||||||
in OCI | Reclassified from | in OCI | Reclassified from | ||||||||||||||||
Accumulated OCI | Accumulated OCI | ||||||||||||||||||
to Statements of | to Statements of | ||||||||||||||||||
Operations | Operations | ||||||||||||||||||
(In thousands) | |||||||||||||||||||
Derivatives designated as hedging instruments: | |||||||||||||||||||
Foreign currency forward exchange contracts | $ | (13,103 | ) | $ | (4,897 | ) | $ | 2,734 | $ | 29,933 | Cost of sales | ||||||||
Derivatives Not Designated as Hedging Instruments by Classification and Amount of Gains and Losses | ' | ||||||||||||||||||
Amount of Gain | Statements of Operations | ||||||||||||||||||
(Loss) Recognized in the | Classification | ||||||||||||||||||
Statements of Operations | |||||||||||||||||||
For the Year Ended | For the Year Ended | ||||||||||||||||||
December 31, | December 31, | ||||||||||||||||||
2013 | 2012 | ||||||||||||||||||
(In thousands) | |||||||||||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||||||
Foreign currency forward exchange | $ | 17,975 | $ | 6,317 | Non-operating income/expense | ||||||||||||||
contracts | |||||||||||||||||||
Foreign currency forward exchange | (4,455 | ) | (910 | ) | Cost of sales | ||||||||||||||
contracts | |||||||||||||||||||
Total | $ | 13,520 | $ | 5,407 | |||||||||||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis | ' | ||||||||||||||||
Mattel’s financial assets and liabilities include the following: | |||||||||||||||||
December 31, 2013 | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
(In thousands) | |||||||||||||||||
Assets: | |||||||||||||||||
Foreign currency forward exchange contracts (a) | $ | — | $ | 2,310 | $ | — | $ | 2,310 | |||||||||
Auction rate security (b) | — | — | 28,895 | 28,895 | |||||||||||||
Total assets | $ | — | $ | 2,310 | $ | 28,895 | $ | 31,205 | |||||||||
Liabilities: | |||||||||||||||||
Foreign currency forward exchange contracts (a) | $ | — | $ | 14,613 | $ | — | $ | 14,613 | |||||||||
December 31, 2012 | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
(In thousands) | |||||||||||||||||
Assets: | |||||||||||||||||
Foreign currency forward exchange contracts (a) | $ | — | $ | 3,068 | $ | — | $ | 3,068 | |||||||||
Auction rate security (b) | — | — | 19,256 | 19,256 | |||||||||||||
Total assets | $ | — | $ | 3,068 | $ | 19,256 | $ | 22,324 | |||||||||
Liabilities: | |||||||||||||||||
Foreign currency forward exchange contracts (a) | $ | — | $ | 8,757 | $ | — | $ | 8,757 | |||||||||
(a) | The fair value of the foreign currency forward exchange contracts is based on dealer quotes of market forward rates and reflects 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 auction rate security is estimated using a discounted cash flow model based on (i) estimated interest rates, timing, and amount of cash flows, (ii) credit spreads, recovery rates, and credit quality of the underlying securities, (iii) illiquidity considerations, and (iv) market correlation. | ||||||||||||||||
Reconciliation of Fair Value of Assets Measured Using Level 3 Inputs | ' | ||||||||||||||||
The following table presents information about Mattel’s auction rate security measured and reported at fair value on a recurring basis using significant Level 3 inputs: | |||||||||||||||||
Level 3 | |||||||||||||||||
(In thousands) | |||||||||||||||||
Balance at December 31, 2010 | $ | 21,000 | |||||||||||||||
Unrealized loss | (5,370 | ) | |||||||||||||||
Balance at December 31, 2011 | 15,630 | ||||||||||||||||
Unrealized gain | 3,626 | ||||||||||||||||
Balance at December 31, 2012 | 19,256 | ||||||||||||||||
Unrealized gain | 9,639 | ||||||||||||||||
Balance at December 31, 2013 | $ | 28,895 | |||||||||||||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Schedule of Future Minimum Obligations Under Lease Commitments | ' | ||||||||
The following table shows the future minimum obligations under lease commitments in effect at December 31, 2013: | |||||||||
Capitalized | Operating | ||||||||
Leases | Leases | ||||||||
(In thousands) | |||||||||
2014 | $ | 294 | $ | 103,927 | |||||
2015 | 294 | 89,387 | |||||||
2016 | 294 | 82,389 | |||||||
2017 | 294 | 60,941 | |||||||
2018 | 294 | 44,294 | |||||||
Thereafter | 321 | 163,544 | |||||||
$ | 1,791 | (a) | $ | 544,482 | |||||
(a) | Includes $0.4 million of imputed interest. | ||||||||
Schedule of Future Minimum Payments for Licensing and Similar Agreements | ' | ||||||||
Licensing and similar agreements in effect at December 31, 2013 contain provisions for future minimum payments as shown in the following table: | |||||||||
Licensing and | |||||||||
Similar | |||||||||
Agreements | |||||||||
(In thousands) | |||||||||
2014 | $ | 67,391 | |||||||
2015 | 78,621 | ||||||||
2016 | 42,310 | ||||||||
2017 | 18,928 | ||||||||
2018 | 1,002 | ||||||||
Thereafter | 550 | ||||||||
$ | 208,802 | ||||||||
Schedule of Future Minimum Obligations for Purchases of Inventory, Other Assets, and Services | ' | ||||||||
The following table shows the future minimum obligations for purchases of inventory, other assets, and services at December 31, 2013: | |||||||||
Other | |||||||||
Purchase | |||||||||
Obligations | |||||||||
(In thousands) | |||||||||
2014 | $ | 361,915 | |||||||
2015 | 15,838 | ||||||||
2016 | 4,483 | ||||||||
2017 | 1,038 | ||||||||
2018 | — | ||||||||
$ | 383,274 | ||||||||
Segment_Information_Tables
Segment Information (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Segment Revenues and Segment Income | ' | ||||||||||||
The following tables present information about revenues, income, and assets by segment. Mattel does not include sales adjustments such as trade discounts and other allowances in the calculation of segment revenues (referred to as “gross sales”). Mattel records these adjustments in its financial accounting systems at the time of sale to each customer, but the adjustments are not allocated to individual products. For this reason, Mattel’s CODM uses gross sales by segment as one of the metrics to measure segment performance. Such sales adjustments are included in the determination of segment income from operations based on the adjustments recorded in the financial accounting systems. Segment income represents each segment’s operating income, while consolidated operating income represents income from operations before net interest, other non-operating income, and income taxes as reported in the consolidated statements of operations. The corporate and other expense category includes costs not allocated to individual segments, including charges related to incentive compensation, share-based payments, and corporate headquarters functions managed on a worldwide basis, and the impact of changes in foreign currency rates on intercompany transactions. | |||||||||||||
For the Year | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(In thousands) | |||||||||||||
Revenues by Segment | |||||||||||||
North America | $ | 3,181,205 | $ | 3,330,217 | $ | 3,296,995 | |||||||
International | 3,277,840 | 3,126,088 | 3,001,705 | ||||||||||
American Girl | 658,768 | 596,298 | 542,387 | ||||||||||
Gross sales | 7,117,813 | 7,052,603 | 6,841,087 | ||||||||||
Sales adjustments | (632,921 | ) | (631,722 | ) | (575,050 | ) | |||||||
Net sales | $ | 6,484,892 | $ | 6,420,881 | $ | 6,266,037 | |||||||
Segment Income | |||||||||||||
North America | $ | 723,834 | $ | 810,271 | $ | 770,276 | |||||||
International | 622,910 | 571,413 | 513,414 | ||||||||||
American Girl | 138,029 | 121,642 | 111,104 | ||||||||||
1,484,773 | 1,503,326 | 1,394,794 | |||||||||||
Corporate and other expense (a) | (316,670 | ) | (482,311 | ) | (353,693 | ) | |||||||
Operating income | 1,168,103 | 1,021,015 | 1,041,101 | ||||||||||
Interest expense | 78,505 | 88,835 | 75,332 | ||||||||||
Interest (income) | (5,555 | ) | (6,841 | ) | (8,093 | ) | |||||||
Other non-operating (income) expense, net | (3,975 | ) | (6,024 | ) | 3,189 | ||||||||
Income before income taxes | $ | 1,099,128 | $ | 945,045 | $ | 970,673 | |||||||
(a) | Corporate and other expense includes (i) incentive compensation expense of $65.0 million, $108.1 million, and $75.3 million for 2013, 2012, and 2011, respectively, (ii) $17.6 million, $13.4 million, and $14.9 million of charges related to severance and other termination-related costs for 2013, 2012, and 2011, respectively, (iii) share-based compensation expense of $61.7 million, $63.3 million, and $53.5 million for 2013, 2012, and 2011, respectively, (iv) the Litigation Charge of $137.8 million for 2012, (v) $7.5 million Gunther-Wahl Productions legal settlement for 2011, and (vi) legal fees associated with MGA litigation matters. | ||||||||||||
Segment Depreciation/Amortization | ' | ||||||||||||
For the Year | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(In thousands) | |||||||||||||
Depreciation/Amortization by Segment | |||||||||||||
North America | $ | 84,935 | $ | 76,593 | $ | 66,477 | |||||||
International | 71,380 | 65,340 | 63,026 | ||||||||||
American Girl | 17,364 | 15,622 | 15,210 | ||||||||||
173,679 | 157,555 | 144,713 | |||||||||||
Corporate and other | 22,714 | 16,727 | 16,585 | ||||||||||
Depreciation and amortization | $ | 196,393 | $ | 174,282 | $ | 161,298 | |||||||
Segment Assets | ' | ||||||||||||
Segment assets are comprised of accounts receivable and inventories, net of applicable reserves and allowances. | |||||||||||||
December 31, | |||||||||||||
2013 | 2012 | ||||||||||||
(In thousands) | |||||||||||||
Assets by Segment | |||||||||||||
North America | $ | 723,886 | $ | 694,479 | |||||||||
International | 920,770 | 807,911 | |||||||||||
American Girl | 100,438 | 90,335 | |||||||||||
1,745,094 | 1,592,725 | ||||||||||||
Corporate and other | 83,854 | 99,165 | |||||||||||
Accounts receivable and inventories, net | $ | 1,828,948 | $ | 1,691,890 | |||||||||
Worldwide Revenues by Brand Category | ' | ||||||||||||
Mattel sells a broad variety of toy products, which are grouped into three major categories: Mattel Girls & Boys Brands, Fisher-Price Brands, and American Girl Brands. The table below presents worldwide revenues by brand category: | |||||||||||||
For the Year | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(In thousands) | |||||||||||||
Worldwide Revenues by Brand Category | |||||||||||||
Mattel Girls & Boys Brands | $ | 4,315,855 | $ | 4,186,550 | $ | 4,120,564 | |||||||
Fisher-Price Brands | 2,120,719 | 2,252,339 | 2,159,178 | ||||||||||
American Girl Brands | 632,515 | 567,521 | 510,936 | ||||||||||
Other | 48,724 | 46,193 | 50,409 | ||||||||||
Gross sales | 7,117,813 | 7,052,603 | 6,841,087 | ||||||||||
Sales adjustments | (632,921 | ) | (631,722 | ) | (575,050 | ) | |||||||
Net sales | $ | 6,484,892 | $ | 6,420,881 | $ | 6,266,037 | |||||||
Revenues by Geographic Area | ' | ||||||||||||
The tables below present information by geographic area. Revenues are attributed to countries based on location of customer. Long-lived assets principally include goodwill, property, plant, and equipment, net, and identifiable intangibles, net. | |||||||||||||
For the Year | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(In thousands) | |||||||||||||
Revenues | |||||||||||||
North American Region (a) | $ | 3,839,973 | $ | 3,926,515 | $ | 3,839,382 | |||||||
International Region: | |||||||||||||
Europe | 1,806,707 | 1,685,274 | 1,626,120 | ||||||||||
Latin America | 1,011,718 | 1,008,236 | 991,435 | ||||||||||
Asia Pacific | 459,415 | 432,578 | 384,150 | ||||||||||
Total International Region | 3,277,840 | 3,126,088 | 3,001,705 | ||||||||||
Gross sales | 7,117,813 | 7,052,603 | 6,841,087 | ||||||||||
Sales adjustments | (632,921 | ) | (631,722 | ) | (575,050 | ) | |||||||
Net sales | $ | 6,484,892 | $ | 6,420,881 | $ | 6,266,037 | |||||||
Long-lived Assets by Geographic Area | ' | ||||||||||||
December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(In thousands) | |||||||||||||
Long-Lived Assets | |||||||||||||
North American Region (b) | $ | 1,361,538 | $ | 1,252,938 | $ | 1,074,914 | |||||||
International Region | 1,326,457 | 1,342,375 | 679,185 | ||||||||||
Consolidated total | $ | 2,687,995 | $ | 2,595,313 | $ | 1,754,099 | |||||||
(a) | Revenues for the North American Region include revenues attributable to the US of $3.58 billion, $3.61 billion, and $3.58 billion for 2013, 2012, and 2011, respectively. | ||||||||||||
(b) | Long-lived assets for the North American Region include long-lived assets attributable to the US of $1.36 billion, $1.25 billion, and $1.05 billion for 2013, 2012, and 2011, respectively. | ||||||||||||
Major Customers | ' | ||||||||||||
Sales to Mattel’s three largest customers accounted for 36%, 37%, and 38% of worldwide consolidated net sales for 2013, 2012, and 2011, respectively, as follows: | |||||||||||||
For the Year | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(In billions) | |||||||||||||
Wal-Mart | $ | 1.2 | $ | 1.2 | $ | 1.2 | |||||||
Toys “R” Us | 0.7 | 0.7 | 0.7 | ||||||||||
Target | 0.5 | 0.5 | 0.5 |
Supplemental_Financial_Informa1
Supplemental Financial Information (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Supplemental Financial Information - Balance Sheet Accounts | ' | ||||||||||||
Supplemental Financial Information | |||||||||||||
December 31, | |||||||||||||
2013 | 2012 | ||||||||||||
(In thousands) | |||||||||||||
Inventories include the following: | |||||||||||||
Raw materials and work in process | $ | 89,863 | $ | 79,216 | |||||||||
Finished goods | 478,980 | 385,841 | |||||||||||
$ | 568,843 | $ | 465,057 | ||||||||||
Property, plant, and equipment, net includes the following: | |||||||||||||
Land | $ | 27,555 | $ | 26,692 | |||||||||
Buildings | 269,874 | 268,381 | |||||||||||
Machinery and equipment | 974,830 | 931,732 | |||||||||||
Tools, dies, and molds | 713,749 | 674,119 | |||||||||||
Capital leases | 23,271 | 23,271 | |||||||||||
Leasehold improvements | 230,271 | 208,900 | |||||||||||
2,239,550 | 2,133,095 | ||||||||||||
Less: accumulated depreciation | (1,580,217 | ) | (1,539,882 | ) | |||||||||
$ | 659,333 | $ | 593,213 | ||||||||||
Other noncurrent assets include the following: | |||||||||||||
Nonamortizable identifiable intangibles | $ | 504,241 | $ | 617,223 | |||||||||
Deferred income taxes | 373,638 | 374,667 | |||||||||||
Identifiable intangibles (net of amortization of $68.3 million and $64.9 million at December 31, 2013 and 2012, respectively) | 176,579 | 88,786 | |||||||||||
Other | 264,603 | 215,293 | |||||||||||
$ | 1,319,061 | $ | 1,295,969 | ||||||||||
Accrued liabilities include the following: | |||||||||||||
Royalties | $ | 100,542 | $ | 97,051 | |||||||||
Advertising and promotion | 76,453 | 87,878 | |||||||||||
Taxes other than income taxes | 70,121 | 80,673 | |||||||||||
Incentive compensation | 67,239 | 110,039 | |||||||||||
Litigation accrual | — | 137,800 | |||||||||||
Other | 325,800 | 374,307 | |||||||||||
$ | 640,155 | $ | 887,748 | ||||||||||
Other noncurrent liabilities include the following: | |||||||||||||
Benefit plan liabilities | $ | 193,046 | $ | 284,614 | |||||||||
Noncurrent tax liabilities | 186,055 | 213,658 | |||||||||||
Other | 161,526 | 145,457 | |||||||||||
$ | 540,627 | $ | 643,729 | ||||||||||
Supplemental Financial Information - Income Statement Accounts | ' | ||||||||||||
For the Year | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(In thousands) | |||||||||||||
Currency transaction gains/(losses) included in: | |||||||||||||
Operating income | $ | 38,842 | $ | 61,956 | $ | 34,299 | |||||||
Other non-operating (expense) income, net | (1,270 | ) | 1,563 | (1,848 | ) | ||||||||
Net transaction gains | $ | 37,572 | $ | 63,519 | $ | 32,451 | |||||||
Other selling and administrative expenses include the following: | |||||||||||||
Design and development | $ | 201,942 | $ | 195,070 | $ | 178,982 | |||||||
Identifiable intangible asset amortization | 12,575 | 11,880 | 8,880 | ||||||||||
Bad debt expense | 4,471 | 2,645 | 6,160 |
Quarterly_Financial_Informatio1
Quarterly Financial Information (Unaudited) (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Quarterly Financial Information (Unaudited) | ' | ||||||||||||||||
First | Second | Third | Fourth | ||||||||||||||
Quarter | Quarter | Quarter | Quarter | ||||||||||||||
(In thousands, except per share amounts) | |||||||||||||||||
Year Ended December 31, 2013: | |||||||||||||||||
Net sales | $ | 995,606 | $ | 1,169,109 | $ | 2,206,961 | $ | 2,113,216 | |||||||||
Gross profit | 540,051 | 600,008 | 1,187,980 | 1,150,844 | |||||||||||||
Advertising and promotion expenses | 104,540 | 113,403 | 249,386 | 282,876 | |||||||||||||
Other selling and administrative expenses | 369,680 | 391,815 | 410,419 | 388,661 | |||||||||||||
Operating income | 65,831 | 94,790 | 528,175 | 479,307 | |||||||||||||
Income before income taxes | 44,165 | 78,729 | 514,343 | 461,891 | |||||||||||||
Net income (a) | 38,511 | 73,348 | 422,836 | 369,249 | |||||||||||||
Net income per common share—basic | $ | 0.11 | $ | 0.21 | $ | 1.22 | $ | 1.08 | |||||||||
Weighted average number of common shares | 344,315 | 346,614 | 343,279 | 339,402 | |||||||||||||
Net income per common share—diluted | $ | 0.11 | $ | 0.21 | $ | 1.21 | $ | 1.07 | |||||||||
Weighted average number of common and potential common shares | 348,795 | 350,424 | 346,695 | 343,237 | |||||||||||||
Dividends declared per common share | $ | 0.36 | $ | 0.36 | $ | 0.36 | $ | 0.36 | |||||||||
Common stock market price: | |||||||||||||||||
High | $ | 43.77 | $ | 46.79 | $ | 47.08 | $ | 47.82 | |||||||||
Low | 35.7 | 42.64 | 40.39 | 40.39 | |||||||||||||
Year Ended December 31, 2012: | |||||||||||||||||
Net sales | $ | 928,449 | $ | 1,158,711 | $ | 2,077,816 | $ | 2,255,905 | |||||||||
Gross profit | 473,371 | 594,522 | 1,115,371 | 1,225,933 | |||||||||||||
Advertising and promotion expenses | 97,859 | 112,395 | 234,793 | 272,756 | |||||||||||||
Other selling and administrative expenses (b) | 346,776 | 350,694 | 393,211 | 579,698 | |||||||||||||
Operating income (b) | 28,736 | 131,433 | 487,367 | 373,479 | |||||||||||||
Income before income taxes | 10,168 | 111,361 | 466,847 | 356,669 | |||||||||||||
Net income (a) | 7,829 | 96,218 | 365,937 | 306,480 | |||||||||||||
Net income per common share—basic | $ | 0.02 | $ | 0.28 | $ | 1.06 | $ | 0.88 | |||||||||
Weighted average number of common shares | 339,144 | 341,256 | 342,595 | 343,624 | |||||||||||||
Net income per common share—diluted | $ | 0.02 | $ | 0.28 | $ | 1.04 | $ | 0.87 | |||||||||
Weighted average number of common and potential common shares | 343,660 | 345,554 | 347,122 | 348,351 | |||||||||||||
Dividends declared per common share | $ | 0.31 | $ | 0.31 | $ | 0.31 | $ | 0.31 | |||||||||
Common stock market price: | |||||||||||||||||
High | $ | 34.39 | $ | 34.3 | $ | 36.17 | $ | 37.79 | |||||||||
Low | 27.76 | 30.56 | 31.04 | 35.11 | |||||||||||||
(a) | Net income for the first quarter of 2013 included $4.0 million of net tax benefits primarily related to enacted tax law changes. Net income for the second and third quarter of 2013 included net tax benefits of $11.2 million and $17.0 million, respectively, primarily related to reassessments of prior years’ tax liabilities based on the status of audits and tax filings in various jurisdictions, settlements, and enacted tax law changes. Net income for the second and third quarter of 2012 included net tax benefits of $10.5 million and $5.5 million, respectively, primarily related to reassessments of prior years’ tax liabilities based on the status of audits and tax filings in various jurisdictions, settlements, and enacted tax law changes. Net income for the fourth quarter of 2012 included the impact of the Litigation Charge, net of tax, of $87.1 million. | ||||||||||||||||
(b) | Other selling and administrative expenses and operating income for the fourth quarter of 2012 included the impact of the Litigation Charge of $137.8 million. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2013 | |
Significant Accounting Policies [Line Items] | ' |
Catalog production and mailing costs amortization period | '3 months |
Maximum | ' |
Significant Accounting Policies [Line Items] | ' |
Cash equivalents maturity period | '3 months |
Buildings | Minimum | ' |
Significant Accounting Policies [Line Items] | ' |
Estimated useful lives, years | '10 years |
Buildings | Maximum | ' |
Significant Accounting Policies [Line Items] | ' |
Estimated useful lives, years | '30 years |
Machinery and Equipment | Minimum | ' |
Significant Accounting Policies [Line Items] | ' |
Estimated useful lives, years | '3 years |
Machinery and Equipment | Maximum | ' |
Significant Accounting Policies [Line Items] | ' |
Estimated useful lives, years | '10 years |
Leasehold improvements | Minimum | ' |
Significant Accounting Policies [Line Items] | ' |
Estimated useful lives, years | '10 years |
Leasehold improvements | Maximum | ' |
Significant Accounting Policies [Line Items] | ' |
Estimated useful lives, years | '20 years |
Tools, dies, and molds | ' |
Significant Accounting Policies [Line Items] | ' |
Estimated useful lives, years | '3 years |
Goodwill_Detail
Goodwill (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Goodwill [Line Items] | ' | ' |
Goodwill, beginning balance | $1,080,798 | $822,139 |
Acquisition | ' | 252,246 |
Currency exchange rate impact | 2,441 | 6,413 |
Goodwill, ending balance | 1,083,239 | 1,080,798 |
North America | ' | ' |
Goodwill [Line Items] | ' | ' |
Goodwill, beginning balance | 546,898 | 393,905 |
Acquisition | ' | 151,348 |
Currency exchange rate impact | 697 | 1,645 |
Goodwill, ending balance | 547,595 | 546,898 |
International | ' | ' |
Goodwill [Line Items] | ' | ' |
Goodwill, beginning balance | 320,169 | 214,612 |
Acquisition | ' | 100,898 |
Currency exchange rate impact | 1,487 | 4,659 |
Goodwill, ending balance | 321,656 | 320,169 |
American Girl | ' | ' |
Goodwill [Line Items] | ' | ' |
Goodwill, beginning balance | 213,731 | 213,622 |
Currency exchange rate impact | 257 | 109 |
Goodwill, ending balance | $213,988 | $213,731 |
Goodwill_and_Other_Intangibles2
Goodwill and Other Intangibles - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | |
Jun. 30, 2013 | Dec. 31, 2012 | Feb. 01, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | |
HIT Entertainment | HIT Entertainment | HIT Entertainment | |||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' |
Percentage of ownership acquired | ' | ' | 100.00% | ' | ' |
Total cash consideration paid, including payment for acquired cash, subject to customary adjustments | ' | ' | $713,500,000 | ' | ' |
Identifiable intangible assets | ' | ' | 510,700,000 | ' | ' |
Net liabilities assumed | ' | ' | 49,400,000 | ' | ' |
Goodwill relating to acquisition | ' | 252,246,000 | 252,246,000 | ' | ' |
Integration costs for acquisition | ' | ' | ' | 5,000,000 | 18,000,000 |
Transaction costs for acquisition | ' | ' | ' | ' | 6,000,000 |
Nonamortizable identifiable intangible assets acquired | ' | ' | 495,000,000 | ' | ' |
Amortizable identifiable intangible assets acquired | ' | ' | 15,700,000 | ' | ' |
Carrying amount of nonamortizable identifiable intangible asset prior to impairment | 113,000,000 | ' | ' | ' | ' |
Remaining fair value of intangible asset | 99,000,000 | ' | ' | ' | ' |
Impairment charge | $14,000,000 | ' | ' | ' | ' |
Identifiable_Intangibles_Detai
Identifiable Intangibles (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Identifiable Intangibles [Line Items] | ' | ' |
Nonamortizable identifiable intangibles | $504,241 | $617,223 |
Identifiable intangibles (net of amortization of $68.3 million and $64.9 million at December 31, 2013 and 2012, respectively) | 176,579 | 88,786 |
Total identifiable intangibles | $680,820 | $706,009 |
Identifiable_Intangibles_Paren
Identifiable Intangibles (Parenthetical) (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Identifiable Intangibles [Line Items] | ' | ' |
Accumulated amortization of identifiable intangible assets | $68.30 | $64.90 |
Pretax_Income_Detail
Pre-tax Income (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Pre-tax Income [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Pre-tax income from US operations | ' | ' | ' | ' | ' | ' | ' | ' | $231,372 | $104,707 | $169,706 |
Pre-tax income from foreign operations | ' | ' | ' | ' | ' | ' | ' | ' | 867,756 | 840,338 | 800,967 |
Income Before Income Taxes | $461,891 | $514,343 | $78,729 | $44,165 | $356,669 | $466,847 | $111,361 | $10,168 | $1,099,128 | $945,045 | $970,673 |
Provision_Benefit_For_Current_
Provision (Benefit) For Current and Deferred Income Taxes (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Current | ' | ' | ' |
Federal | $38,227 | $69,639 | $15,933 |
State | 6,447 | 8,660 | 5,268 |
Foreign | 130,878 | 126,465 | 131,596 |
Total current income tax expense | 175,552 | 204,764 | 152,797 |
Deferred | ' | ' | ' |
Federal | 30,342 | -26,489 | 49,853 |
State | -512 | 520 | -2,629 |
Foreign | -10,198 | -10,214 | 2,144 |
Total deferred income tax expense | 19,632 | -36,183 | 49,368 |
Provision for income taxes | $195,184 | $168,581 | $202,165 |
Deferred_Income_Tax_Assets_Lia
Deferred Income Tax Assets (Liabilities) (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Schedule of Deferred Income Tax Assets and Liabilities [Line Items] | ' | ' |
Tax credit carryforwards | $77,396 | $59,372 |
Research and development expenses | 187,477 | 181,449 |
Loss carryforwards | 124,201 | 131,989 |
Allowances and reserves | 202,141 | 229,056 |
Deferred compensation | 111,850 | 118,878 |
Postretirement benefits | 37,479 | 72,912 |
Other | 66,599 | 67,942 |
Gross deferred income tax assets | 807,143 | 861,598 |
Intangible assets | -282,737 | -279,592 |
Other | -5,555 | -8,262 |
Gross deferred income tax liabilities | -288,292 | -287,854 |
Deferred income tax asset valuation allowances | -64,641 | -67,705 |
Net deferred income tax assets | $454,210 | $506,039 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 1 Months Ended | 12 Months Ended | |||
Aug. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | |
Income Taxes [Line Items] | ' | ' | ' | ' | ' |
Increase in additional paid in capital from deferred tax assets | ' | $4,600,000 | ' | ' | ' |
Loss carryforwards | ' | 445,800,000 | ' | ' | ' |
Tax credit carryforwards | ' | 77,400,000 | ' | ' | ' |
Deferred income tax asset valuation allowances | ' | 64,641,000 | 67,705,000 | ' | ' |
Net deferred income tax assets | ' | 454,210,000 | 506,039,000 | ' | ' |
Percentage greater than threshold of Income tax examination of uncertain tax positions that should be recognized | ' | 50.00% | ' | ' | ' |
Unrecognized tax benefits, end of period | ' | 111,370,000 | 285,560,000 | 262,560,000 | 252,570,000 |
Amount of unrecognized tax benefits that would impact the effective tax rate if recognized | ' | 106,900,000 | ' | ' | ' |
Recognized interest and penalties related to unrecognized tax benefits | ' | 1,000,000 | ' | ' | ' |
Accrued interest and penalties related to unrecognized tax benefits | ' | 6,100,000 | ' | ' | ' |
Amount of unrecognized tax benefits related to interest and penalties that would impact the effective tax rate if recognized | ' | 5,400,000 | ' | ' | ' |
Decrease in unrecognized tax benefits related to IRS settlement | 190,000,000 | ' | ' | ' | ' |
Reasonably possible changes to unrecognized tax benefits related to settlement of tax audits and/or expiration of statutes of limitations within the next twelve months | ' | 17,000,000 | ' | ' | ' |
Net tax benefit | ' | 32,200,000 | 16,000,000 | 6,800,000 | ' |
Cumulative amount of undistributed earnings of foreign subsidiaries that is intended to be indefinitely reinvested and for which no deferred US income taxes have been provided | ' | 5,900,000,000 | ' | ' | ' |
Increase to additional paid-in-capital for related windfall income tax benefits resulting from the exercise of nonqualified stock options and vesting of other stock compensation awards | ' | 50,374,000 | 35,798,000 | 24,199,000 | ' |
California | ' | ' | ' | ' | ' |
Income Taxes [Line Items] | ' | ' | ' | ' | ' |
Remaining periods subject to examination | ' | '2008 through 2013 tax years | ' | ' | ' |
New York | ' | ' | ' | ' | ' |
Income Taxes [Line Items] | ' | ' | ' | ' | ' |
Remaining periods subject to examination | ' | '2007 through 2013 tax years | ' | ' | ' |
Wisconsin | ' | ' | ' | ' | ' |
Income Taxes [Line Items] | ' | ' | ' | ' | ' |
Remaining periods subject to examination | ' | '2008 through 2013 tax years | ' | ' | ' |
Hong Kong | ' | ' | ' | ' | ' |
Income Taxes [Line Items] | ' | ' | ' | ' | ' |
Remaining periods subject to examination | ' | '2007 through 2013 tax years | ' | ' | ' |
Brazil | ' | ' | ' | ' | ' |
Income Taxes [Line Items] | ' | ' | ' | ' | ' |
Remaining periods subject to examination | ' | '2008 through 2013 tax years | ' | ' | ' |
Mexico | ' | ' | ' | ' | ' |
Income Taxes [Line Items] | ' | ' | ' | ' | ' |
Remaining periods subject to examination | ' | '2008 through 2013 tax years | ' | ' | ' |
Netherlands | ' | ' | ' | ' | ' |
Income Taxes [Line Items] | ' | ' | ' | ' | ' |
Remaining periods subject to examination | ' | '2008 through 2013 tax years | ' | ' | ' |
Valuation Allowances Net Operating Losses and Tax Credit Carryforwards | ' | ' | ' | ' | ' |
Income Taxes [Line Items] | ' | ' | ' | ' | ' |
Deferred income tax asset valuation allowances | ' | 56,800,000 | ' | ' | ' |
Valuation Allowance for Other Deferred Tax Assets | ' | ' | ' | ' | ' |
Income Taxes [Line Items] | ' | ' | ' | ' | ' |
Deferred income tax asset valuation allowances | ' | $7,800,000 | ' | ' | ' |
Classification_of_Net_Deferred
Classification of Net Deferred Income Tax Assets (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Balance Sheet Classification of Deferred Income Tax Assets and Liabilities [Line Items] | ' | ' |
Net deferred income tax assets | $454,210 | $506,039 |
Prepaid expenses and other current assets | ' | ' |
Balance Sheet Classification of Deferred Income Tax Assets and Liabilities [Line Items] | ' | ' |
Net deferred income tax assets | 195,872 | 253,664 |
Other noncurrent assets | ' | ' |
Balance Sheet Classification of Deferred Income Tax Assets and Liabilities [Line Items] | ' | ' |
Net deferred income tax assets | 373,638 | 374,667 |
Accrued liabilities | ' | ' |
Balance Sheet Classification of Deferred Income Tax Assets and Liabilities [Line Items] | ' | ' |
Net deferred income tax assets | -109 | -152 |
Other noncurrent liabilities | ' | ' |
Balance Sheet Classification of Deferred Income Tax Assets and Liabilities [Line Items] | ' | ' |
Net deferred income tax assets | ($115,191) | ($122,140) |
Expiration_of_Loss_and_Tax_Cre
Expiration of Loss and Tax Credit Carryforwards (Detail) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Operating Loss and Tax Credit Carryforward [Line Items] | ' |
Loss carryforwards | $445,800 |
Tax credit carryforwards | 77,400 |
Period of Expiration 2014 - 2018 | ' |
Operating Loss and Tax Credit Carryforward [Line Items] | ' |
Loss carryforwards | 60,363 |
Tax credit carryforwards | 27,678 |
Period of Expiration Thereafter | ' |
Operating Loss and Tax Credit Carryforward [Line Items] | ' |
Loss carryforwards | 180,756 |
Tax credit carryforwards | 43,502 |
No Expiration Date | ' |
Operating Loss and Tax Credit Carryforward [Line Items] | ' |
Loss carryforwards | 204,681 |
Tax credit carryforwards | $6,220 |
Reconciliation_of_Provision_fo
Reconciliation of Provision for Income Taxes at US Federal Statutory Rate to Provision in Statements of Operations (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Reconciliation of Statutory Federal Tax Rate [Line Items] | ' | ' | ' |
Provision at US federal statutory rate | $384,695 | $330,766 | $339,736 |
Foreign earnings taxed at different rates, including withholding taxes | -165,768 | -157,488 | -139,476 |
Foreign losses without income tax benefit | 3,215 | 1,047 | 2,883 |
State and local taxes, net of US federal benefit | 4,854 | 6,856 | 4,833 |
Adjustments to previously accrued taxes | -32,200 | -16,000 | -6,800 |
Other | 388 | 3,400 | 989 |
Provision for income taxes | $195,184 | $168,581 | $202,165 |
Reconciliation_of_Unrecognized
Reconciliation of Unrecognized Tax Benefits (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Reconciliation of Unrecognized Tax Benefits [Line Items] | ' | ' | ' |
Unrecognized tax benefits at January 1 | $285,560 | $262,560 | $252,570 |
Increases for positions taken in current year | 12,997 | 14,800 | 13,480 |
Increases for positions taken in a prior year | 14,289 | 21,030 | 2,280 |
Decreases for positions taken in a prior year | -186,555 | -700 | -980 |
Decreases for settlements with taxing authorities | -5,135 | -800 | -1,390 |
Decreases for lapses in the applicable statute of limitations | -9,786 | -11,330 | -3,400 |
Unrecognized tax benefits at December 31 | $111,370 | $285,560 | $262,560 |
Summary_of_Retirement_Plan_Exp
Summary of Retirement Plan Expense (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Schedule of Employee Benefit Plans [Line Items] | ' | ' | ' |
Retirement plan expense | $85,984 | $81,210 | $76,801 |
Defined contribution retirement plans | ' | ' | ' |
Schedule of Employee Benefit Plans [Line Items] | ' | ' | ' |
Retirement plan expense | 43,694 | 40,266 | 36,873 |
Defined benefit pension plans | ' | ' | ' |
Schedule of Employee Benefit Plans [Line Items] | ' | ' | ' |
Retirement plan expense | 30,747 | 33,597 | 37,597 |
Deferred compensation and excess benefit plans | ' | ' | ' |
Schedule of Employee Benefit Plans [Line Items] | ' | ' | ' |
Retirement plan expense | 9,298 | 5,740 | 730 |
Postretirement benefit plans | ' | ' | ' |
Schedule of Employee Benefit Plans [Line Items] | ' | ' | ' |
Retirement plan expense | $2,245 | $1,607 | $1,601 |
Summary_of_Components_of_Net_P
Summary of Components of Net Periodic Benefit Cost and Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income (Detail) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Defined benefit pension plans | ' | ' | ' | |||
Net periodic benefit cost: | ' | ' | ' | |||
Service cost | $12,982 | $13,285 | $13,610 | |||
Interest cost | 25,580 | 29,530 | 28,433 | |||
Expected return on plan assets | -29,786 | -31,270 | -25,714 | |||
Amortization of prior service (credit) cost | -1,057 | -502 | 1,776 | |||
Recognized actuarial loss (gain) | 21,193 | 19,020 | 19,492 | |||
Settlement loss | 1,835 | 3,534 | ' | |||
Net periodic benefit cost | 30,747 | 33,597 | 37,597 | |||
Other changes in plan assets and benefit obligations recognized in other comprehensive income: | ' | ' | ' | |||
Net actuarial (gain) loss | -95,744 | 27,144 | 62,687 | |||
Prior service cost (credit) | ' | -11,789 | 2 | |||
Amortization of prior service credit (cost) | 1,057 | 501 | -1,776 | |||
Total recognized in other comprehensive income | -94,687 | [1] | 15,856 | [1] | 60,913 | [1] |
Total recognized in net periodic benefit cost and other comprehensive income | -63,940 | 49,453 | 98,510 | |||
Postretirement benefit plans | ' | ' | ' | |||
Net periodic benefit cost: | ' | ' | ' | |||
Service cost | 82 | 79 | 73 | |||
Interest cost | 1,585 | 1,411 | 1,576 | |||
Recognized actuarial loss (gain) | 578 | 117 | -48 | |||
Net periodic benefit cost | 2,245 | 1,607 | 1,601 | |||
Other changes in plan assets and benefit obligations recognized in other comprehensive income: | ' | ' | ' | |||
Net actuarial (gain) loss | 3,470 | 4,755 | -1,249 | |||
Total recognized in other comprehensive income | 3,470 | [1] | 4,755 | [1] | -1,249 | [1] |
Total recognized in net periodic benefit cost and other comprehensive income | $5,715 | $6,362 | $352 | |||
[1] | Amounts exclude related tax expense (benefit) of $32.5 million, $(2.3) million, and $(21.6) million, during 2013, 2012, and 2011, respectively, which are also included in other comprehensive income |
Summary_of_Components_of_Net_P1
Summary of Components of Net Periodic Benefit Cost and Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income (Parenthetical) (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Pension and Other Postretirement Benefits Disclosure [Line Items] | ' | ' | ' |
Tax expense (benefit) related to benefit plans included in other comprehensive income | $32.50 | ($2.30) | ($21.60) |
Assumptions_Used_to_Calculate_
Assumptions Used to Calculate Net Periodic Benefit Cost for Domestic Defined Benefit Pension and Postretirement Benefit Plans (Detail) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Defined benefit pension plans | ' | ' | ' |
Net Period Benefit Cost Assumptions [Line Items] | ' | ' | ' |
Discount rate | 4.00% | 4.50% | 5.20% |
Weighted average rate of future compensation increases | 3.80% | 3.80% | 3.80% |
Long-term rate of return on plan assets | 8.00% | 8.00% | 8.00% |
Postretirement benefit plans | ' | ' | ' |
Net Period Benefit Cost Assumptions [Line Items] | ' | ' | ' |
Discount rate | 4.00% | 4.50% | 5.20% |
Annual increase in Medicare Part B premium | 6.00% | 6.00% | 6.00% |
Net Periodic Benefit Cost | Pre-65 | ' | ' | ' |
Net Period Benefit Cost Assumptions [Line Items] | ' | ' | ' |
Health care cost trend rate | 8.50% | 7.50% | 8.00% |
Ultimate cost trend rate | 6.10% | 5.00% | 5.00% |
Year that the rate reaches the ultimate cost trend rate | '2030 | '2017 | '2017 |
Net Periodic Benefit Cost | Post-65 | ' | ' | ' |
Net Period Benefit Cost Assumptions [Line Items] | ' | ' | ' |
Health care cost trend rate | 7.50% | 7.50% | 8.00% |
Ultimate cost trend rate | 5.40% | 5.00% | 5.00% |
Year that the rate reaches the ultimate cost trend rate | '2030 | '2017 | '2017 |
Employee_Benefit_Plans_Additio
Employee Benefit Plans - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Employee Benefits Disclosure [Line Items] | ' | ' | ' |
Accumulated benefit obligation of defined benefit pension plans | $579 | $597.60 | ' |
The impact to postretirement benefit plan obligation from a one percentage point increase in the assumed health care cost trend rate for each future year | 3 | ' | ' |
The impact to postretirement benefit plan obligation from a one percentage point decrease in the assumed health care cost trend rate for each future year | -2.5 | ' | ' |
The impact to postretirement benefit plan service and interest cost from a one percentage point increase in the assumed health care cost trend rate for each future year | 0.1 | ' | ' |
The impact to postretirement benefit plan service and interest cost from a one percentage point decrease in the assumed health care cost trend rate for each future year | -0.1 | ' | ' |
Total estimated cash contributions to be made during the next fiscal year for defined benefit pension and postretirement benefit plans | 29 | ' | ' |
Total estimated cash contributions to be made during the next fiscal year for unfunded defined benefit pension and postretirement benefit plans | 8 | ' | ' |
Percentage of domestic defined benefit pension plan assets to total defined benefit pension plan assets | 81.00% | ' | ' |
Reduction in benefit obligation due to plan conversion | ' | 12 | ' |
Percentage limitation of an employee's total account balance that may be allocated to the Mattel Stock Fund in the Mattel, Inc. Personal Investment Plan | 25.00% | ' | ' |
Liability for deferred compensation and excess benefit plans | 68 | 55.9 | ' |
Cash surrender value of life insurance policies | 66 | 54.3 | ' |
Expense for incentive compensation plans | 65 | 108.1 | 75.3 |
January 1, 2011 to December 31, 2013 LTIP | ' | ' | ' |
Employee Benefits Disclosure [Line Items] | ' | ' | ' |
Performance cycle | '3 years | ' | ' |
Number of shares that can be earned for each of the three years for the performance-related component of performance restricted stock units - range of possible outcomes - (low-end) | 0 | ' | ' |
Number of shares that can be earned for each of the three years for the performance-related component of performance restricted stock units - range of possible outcomes - (high-end) | 0.5 | ' | ' |
Adjustment (for the market-related component) to the results of the performance-related component of performance restricted stock units over the three-year performance cycle - range of possible outcomes - upward adjustment - (high-end) | 0.5 | ' | ' |
Adjustment (for the market-related component) to the results of the performance-related component of performance restricted stock units over the three-year performance cycle - range of possible outcomes - downward adjustment - (low-end) | 0.5 | ' | ' |
Number of shares earned related to performance and market related component | 1.6 | ' | ' |
January 1, 2011 to December 31, 2013 LTIP | Performance- Related Component | ' | ' | ' |
Employee Benefits Disclosure [Line Items] | ' | ' | ' |
Number of shares earned related to performance related component | 1 | ' | ' |
Weighted average grant date fair value of restricted stock units granted | $42.30 | $32.87 | $24.67 |
Expense recognized for restricted stock units | 10 | 12.4 | 7.1 |
January 1, 2011 to December 31, 2013 LTIP | Market- Related Component | ' | ' | ' |
Employee Benefits Disclosure [Line Items] | ' | ' | ' |
Number of shares earned related to market related component | 0.5 | ' | ' |
Weighted average grant date fair value of restricted stock units granted | $4.59 | $4.55 | $4.22 |
Expense recognized for restricted stock units | 1.4 | 1.8 | 1.2 |
January 1, 2011 to December 31, 2013 LTIP | Dividend Equivalent Rights | ' | ' | ' |
Employee Benefits Disclosure [Line Items] | ' | ' | ' |
Number of shares earned related to dividend equivalent rights | 0.1 | ' | ' |
US equity securities | ' | ' | ' |
Employee Benefits Disclosure [Line Items] | ' | ' | ' |
Target allocation for domestic defined benefit pension plan assets | 35.00% | ' | ' |
Non US Equity Securities | ' | ' | ' |
Employee Benefits Disclosure [Line Items] | ' | ' | ' |
Target allocation for domestic defined benefit pension plan assets | 35.00% | ' | ' |
US Long-Term Bond Securities | ' | ' | ' |
Employee Benefits Disclosure [Line Items] | ' | ' | ' |
Target allocation for domestic defined benefit pension plan assets | 20.00% | ' | ' |
US Treasury Securities | ' | ' | ' |
Employee Benefits Disclosure [Line Items] | ' | ' | ' |
Target allocation for domestic defined benefit pension plan assets | 10.00% | ' | ' |
Defined benefit pension plans | ' | ' | ' |
Employee Benefits Disclosure [Line Items] | ' | ' | ' |
Estimated net actuarial loss and prior service credit that will be amortized from accumulated other comprehensive loss into net periodic benefit cost in 2014 | 10.6 | ' | ' |
Long-term rate of return on plan assets used to determine net periodic benefit cost for domestic defined benefit pension plans | 8.00% | 8.00% | 8.00% |
Postretirement benefit plans | ' | ' | ' |
Employee Benefits Disclosure [Line Items] | ' | ' | ' |
Estimated net actuarial loss and prior service credit that will be amortized from accumulated other comprehensive loss into net periodic benefit cost in 2014 | $0.20 | ' | ' |
Summary_of_Changes_in_Benefit_
Summary of Changes in Benefit Obligation and Plan Assets for Defined Benefit Pension and Postretirement Benefit Plans (Detail) (USD $) | 12 Months Ended | ||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | ||
Change in Plan Assets: | ' | ' | ' | ||
Plan assets at fair value, end of year | $456,445 | $406,163 | ' | ||
Net Amount Recognized in Consolidated Balance Sheets: | ' | ' | ' | ||
Noncurrent accrued benefit liability | -193,046 | -284,614 | ' | ||
Defined benefit pension plans | ' | ' | ' | ||
Change in Benefit Obligation: | ' | ' | ' | ||
Benefit obligation, beginning of year | 669,351 | 610,016 | ' | ||
Service cost | 12,982 | 13,285 | 13,610 | ||
Interest cost | 25,580 | 29,530 | 28,433 | ||
Plan amendments | ' | -11,791 | ' | ||
Impact of currency exchange rate changes | -2,206 | 1,713 | ' | ||
Actuarial (gain) loss | -57,418 | 74,433 | ' | ||
Benefits paid | -31,351 | -47,835 | ' | ||
Benefit obligation, end of year | 616,938 | 669,351 | 610,016 | ||
Change in Plan Assets: | ' | ' | ' | ||
Plan assets at fair value, beginning of year | 406,163 | 338,081 | ' | ||
Actual return on plan assets | 47,529 | [1] | 57,028 | [1] | ' |
Employer contributions | 32,078 | 55,752 | ' | ||
Impact of currency exchange rate changes | 2,026 | 3,137 | ' | ||
Benefits paid | -31,351 | -47,835 | ' | ||
Plan assets at fair value, end of year | 456,445 | 406,163 | 338,081 | ||
Net Amount Recognized in Consolidated Balance Sheets: | ' | ' | ' | ||
Funded status, end of year | -160,493 | -263,188 | ' | ||
Current accrued benefit liability | -2,661 | -11,407 | ' | ||
Noncurrent accrued benefit liability | -157,832 | -251,781 | ' | ||
Total accrued benefit liability | -160,493 | -263,188 | ' | ||
Amounts Recognized in Accumulated Other Comprehensive Loss: | ' | ' | ' | ||
Net actuarial loss | 205,091 | [2] | 300,835 | [2] | ' |
Prior service (credit) | -10,093 | [2] | -11,150 | [2] | ' |
Total amount recognized in accumulated other comprehensive loss, before tax | 194,998 | [2] | 289,685 | [2] | ' |
Postretirement benefit plans | ' | ' | ' | ||
Change in Benefit Obligation: | ' | ' | ' | ||
Benefit obligation, beginning of year | 35,433 | 32,334 | ' | ||
Service cost | 82 | 79 | 73 | ||
Interest cost | 1,585 | 1,411 | 1,576 | ||
Actuarial (gain) loss | 4,048 | 4,872 | ' | ||
Benefits paid | -3,234 | -3,263 | ' | ||
Benefit obligation, end of year | 37,914 | 35,433 | 32,334 | ||
Change in Plan Assets: | ' | ' | ' | ||
Employer contributions | 3,234 | 3,263 | ' | ||
Benefits paid | -3,234 | -3,263 | ' | ||
Net Amount Recognized in Consolidated Balance Sheets: | ' | ' | ' | ||
Funded status, end of year | -37,914 | -35,433 | ' | ||
Current accrued benefit liability | -2,700 | -2,600 | ' | ||
Noncurrent accrued benefit liability | -35,214 | -32,833 | ' | ||
Total accrued benefit liability | -37,914 | -35,433 | ' | ||
Amounts Recognized in Accumulated Other Comprehensive Loss: | ' | ' | ' | ||
Net actuarial loss | 7,119 | [2] | 3,649 | [2] | ' |
Total amount recognized in accumulated other comprehensive loss, before tax | $7,119 | [2] | $3,649 | [2] | ' |
[1] | The 2012 actual return on plan assets from defined benefit pension plan includes an increase of approximately $12 million related to assets transferred to the Fisher-Price Pension Plan resulting from its conversion to a cash balance plan. | ||||
[2] | Amounts exclude related tax benefits of $70.2 million and $102.7 million for December 31, 2013 and 2012, respectively, which are also included in accumulated other comprehensive loss. |
Summary_of_Changes_in_Benefit_1
Summary of Changes in Benefit Obligation and Plan Assets for Defined Benefit Pension and Postretirement Benefit Plans (Parenthetical) (Detail) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2012 | Dec. 31, 2013 |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Defined benefit plan assets transferred to plan upon conversion | $12 | ' |
Tax benefits related to changes in benefit obligation and plan assets which are also included in accumulated other comprehensive loss | $102.70 | $70.20 |
Assumptions_Used_to_Determine_
Assumptions Used to Determine Projected and Accumulated Benefit Obligations of Domestic Defined Benefit Pension and Postretirement Benefit Plans (Detail) | Dec. 31, 2013 | Dec. 31, 2012 |
Defined benefit pension plans | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Discount rate | 4.70% | 4.00% |
Weighted average rate of future compensation increases | 3.80% | 3.80% |
Postretirement benefit plans | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Discount rate | 4.70% | 4.00% |
Annual increase in Medicare Part B premium | 6.00% | 6.00% |
Projected and Accumulated Benefit Obligations | Pre-65 | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Health care cost trend rate | 8.50% | 8.50% |
Ultimate cost trend rate | 6.10% | 6.10% |
Year that the rate reaches the ultimate cost trend rate | '2030 | '2030 |
Projected and Accumulated Benefit Obligations | Post-65 | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Health care cost trend rate | 7.50% | 7.50% |
Ultimate cost trend rate | 5.40% | 5.40% |
Year that the rate reaches the ultimate cost trend rate | '2030 | '2030 |
Estimated_Future_Benefit_Payme
Estimated Future Benefit Payments for Defined Benefit Pension and Postretirement Benefit Plans (Detail) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Defined benefit pension plans | ' |
Schedule of Pension and Other Postretirement Benefits Expected Benefit Payments [Line Items] | ' |
Benefit payments - 2014 | $32,289 |
Benefit payments - 2015 | 36,071 |
Benefit payments - 2016 | 42,815 |
Benefit payments - 2017 | 34,583 |
Benefit payments - 2018 | 35,934 |
Benefit payments - 2019 - 2023 | 203,523 |
Other Postretirement Benefit Plans | ' |
Schedule of Pension and Other Postretirement Benefits Expected Benefit Payments [Line Items] | ' |
Benefit payments - 2014 | 2,700 |
Benefit payments - 2015 | 2,600 |
Benefit payments - 2016 | 2,500 |
Benefit payments - 2017 | 2,500 |
Benefit payments - 2018 | 2,500 |
Benefit payments - 2019 - 2023 | $11,100 |
Plan_Assets_Measured_and_Repor
Plan Assets Measured and Reported in Financial Statements at Fair Value (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Fair value of plan assets | $456,445 | $406,163 |
Collective trust funds | US equity securities | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Fair value of plan assets | 174,735 | 148,435 |
Collective trust funds | International equity securities | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Fair value of plan assets | 164,998 | 147,756 |
Collective trust funds | International fixed income | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Fair value of plan assets | 41,523 | 36,580 |
US government and US government agency securities | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Fair value of plan assets | 31,434 | 35,944 |
US corporate debt instruments | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Fair value of plan assets | 21,171 | 20,514 |
International corporate debt instruments | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Fair value of plan assets | 4,996 | 5,455 |
Mutual funds | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Fair value of plan assets | 8,741 | 5,083 |
Other | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Fair value of plan assets | 8,847 | 6,396 |
Level 1 | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Fair value of plan assets | 1,520 | 1,422 |
Level 1 | Mutual funds | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Fair value of plan assets | 1,520 | 1,422 |
Level 2 | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Fair value of plan assets | 454,925 | 404,741 |
Level 2 | Collective trust funds | US equity securities | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Fair value of plan assets | 174,735 | 148,435 |
Level 2 | Collective trust funds | International equity securities | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Fair value of plan assets | 164,998 | 147,756 |
Level 2 | Collective trust funds | International fixed income | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Fair value of plan assets | 41,523 | 36,580 |
Level 2 | US government and US government agency securities | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Fair value of plan assets | 31,434 | 35,944 |
Level 2 | US corporate debt instruments | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Fair value of plan assets | 21,171 | 20,514 |
Level 2 | International corporate debt instruments | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Fair value of plan assets | 4,996 | 5,455 |
Level 2 | Mutual funds | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Fair value of plan assets | 7,221 | 3,661 |
Level 2 | Other | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Fair value of plan assets | $8,847 | $6,396 |
Seasonal_Financing_and_Debt_Ad
Seasonal Financing and Debt - Additional Information (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 31, 2013 | Mar. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 |
2013 Senior Notes due March 2018 | 2013 Senior Notes due March 2023 | 2013 Credit Facility | 2013 Credit Facility | 2013 Credit Facility | 2011 Credit Facility | Foreign Short Term Bank Loans | Foreign Short Term Bank Loans | Domestic Unsecured Committed Revolving Credit Facility And Other Short Term Borrowings | Domestic Unsecured Committed Revolving Credit Facility And Other Short Term Borrowings | Medium-term notes | Medium-term notes | 2010 Senior Notes | 2010 Senior Notes | 2011 Senior Notes | 2011 Senior Notes | 2013 Senior Notes | 2008 Senior Notes | |||
Minimum | Maximum | |||||||||||||||||||
Debt Disclosure [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Terms of credit facility | ' | ' | ' | ' | 'The agreement governing the credit facility was amended and restated on March 11, 2013 to, among other things, (i) extend the maturity date of the credit facility to March 12, 2018, (ii) increase aggregate commitments under the credit facility to $1.60 billion, with an baccordion feature,b which allows Mattel to increase the aggregate availability under the credit facility to $1.85 billion under certain circumstances, (iii) decrease the applicable interest rate margins to a range of 0.00% to 0.75% above the applicable base rate for base rate loans and 0.88% to 1.75% above the applicable LIBOR for Eurodollar rate loans, in each case depending on Mattelbs senior unsecured long-term debt rating, and (iv) decrease commitment fees to a range of 0.08% to 0.28% of the unused commitments under the credit facility. | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maturity date | ' | ' | ' | ' | 12-Mar-18 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate commitment under the credit facility | ' | ' | ' | ' | $1,600,000,000 | ' | ' | $1,400,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate commitment under the credit facility, including the accordion feature | ' | ' | ' | ' | 1,850,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate margin for base rate loans | ' | ' | ' | ' | ' | 0.00% | 0.75% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate margin for Eurodollar rate loans | ' | ' | ' | ' | ' | 0.88% | 1.75% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Commitment fee rate for unused commitments | ' | ' | ' | ' | ' | 0.08% | 0.28% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Consolidated debt-to-earnings before interest taxes depreciation amortization ratio as calculated for covenant compliance | 1.16 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt-to-earnings before interest taxes depreciation amortization ratio maximum for covenant compliance | 3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest coverage ratio as calculated for covenant compliance | 17.69 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest coverage ratio minimum for covenant compliance | 3.5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Foreign credit lines available | 349,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding amounts of accounts receivable sold under international factoring arrangements | 25,600,000 | 25,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Short term bank loans outstanding | 4,278,000 | 9,844,000 | ' | ' | ' | ' | ' | ' | 4,300,000 | 9,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Average borrowings | ' | ' | ' | ' | ' | ' | ' | ' | 38,000,000 | 44,300,000 | 262,300,000 | 661,900,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average interest rate as of the balance sheet date | ' | ' | ' | ' | ' | ' | ' | ' | 9.40% | 7.80% | 0.20% | 0.40% | ' | ' | ' | ' | ' | ' | ' | ' |
Principal of debt instrument | ' | ' | 250,000,000 | 250,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument maturity date | ' | ' | 15-Mar-18 | 15-Mar-23 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Issuance date | ' | ' | '2013-03 | '2013-03 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate | ' | ' | 1.70% | 3.15% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5.28% | 5.28% | 3.98% | 3.98% | 2.43% | ' |
Interest terms of Senior Notes | ' | ' | 'Interest on the 2013 Senior Notes is payable semi-annually on March 15 and September 15 of each year, beginning September 15, 2013. | 'Interest on the 2013 Senior Notes is payable semi-annually on March 15 and September 15 of each year, beginning September 15, 2013. | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Redemption terms of 2013 Senior Notes | ' | ' | 'Mattel may redeem all or part of the 1.70% Senior Notes at any time or from time to time at its option, at a redemption price equal to the greater of (i) 100% of the principal amount of the notes being redeemed plus accrued and unpaid interest to but excluding the redemption date, and (ii) a "make-whole" amount based on the yield of a comparable US Treasury security plus 15 basis points. | 'Mattel may redeem all or part of the 3.15% Senior Notes at any time or from time to time prior to December 15, 2022 (three months prior to the maturity date of the 3.15% Senior Notes) at its option, at a redemption price equal to the greater of (i) 100% of the principal amount of the notes being redeemed plus accrued and unpaid interest to but excluding the redemption date, and (ii) a bmake-wholeb amount based on the yield of a comparable US Treasury security plus 20 basis points. Mattel may redeem all or part of the 3.15% Senior Notes at any time or from time to time on or after December 15, 2022 (three months prior to the maturity date for the 3.15% Senior Notes) at its option, at a redemption price equal to 100% of the principal amount of the notes to be redeemed plus accrued and unpaid interest to but excluding the redemption date. | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Redemption price option one | ' | ' | 100.00% | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Redemption price option two | ' | ' | 0.15% | 0.20% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate range - low end | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4.35% | 4.35% | 2.50% | 2.50% | 1.70% | ' |
Interest rate range - high end | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6.20% | 6.20% | 5.45% | 5.45% | 3.15% | ' |
Repayment of senior notes | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 350,000,000 |
Repayment of medium-term notes | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $50,000,000 | $50,000,000 | ' | ' | ' | ' | ' | ' |
LongTerm_Debt_Detail
Long-Term Debt (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Debt Instrument [Line Items] | ' | ' |
Long-term debt | $1,600,000 | $1,500,000 |
Less: current portion | ' | -400,000 |
Total long-term debt | 1,600,000 | 1,100,000 |
Medium-term notes | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term debt | ' | 50,000 |
2008 Senior Notes | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term debt | ' | 350,000 |
2010 Senior Notes | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term debt | 500,000 | 500,000 |
2011 Senior Notes | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term debt | 600,000 | 600,000 |
2013 Senior Notes | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term debt | $500,000 | ' |
LongTerm_Debt_Parenthetical_De
Long-Term Debt (Parenthetical) (Detail) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
2010 Senior Notes due October 2020 | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt instrument maturity date, month and year | '2020-10 | '2020-10 |
2010 Senior Notes due October 2040 | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt instrument maturity date, month and year | '2040-10 | '2040-10 |
2011 Senior Notes due November 2016 | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt instrument maturity date, month and year | '2016-11 | '2016-11 |
2011 Senior Notes due November 2041 | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt instrument maturity date, month and year | '2041-11 | '2041-11 |
2013 Senior Notes due March 2018 | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt instrument maturity date, month and year | '2018-03 | ' |
2013 Senior Notes due March 2023 | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt instrument maturity date, month and year | '2023-03 | ' |
LongTerm_Debt_Maturity_Detail
Long-Term Debt Maturity (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Long Term Debt Maturities Repayments Of Principal [Line Items] | ' | ' |
Amount of long-term debt maturing - 2014 | ' | ' |
Amount of long-term debt maturing - 2015 | ' | ' |
Amount of long-term debt maturing - 2016 | 300,000 | ' |
Amount of long-term debt maturing - 2017 | ' | ' |
Amount of long-term debt maturing - 2018 | 250,000 | ' |
Amount of long-term debt maturing - Thereafter | 1,050,000 | ' |
Long-term debt | 1,600,000 | 1,500,000 |
2010 Senior Notes | ' | ' |
Long Term Debt Maturities Repayments Of Principal [Line Items] | ' | ' |
Amount of long-term debt maturing - 2014 | ' | ' |
Amount of long-term debt maturing - 2015 | ' | ' |
Amount of long-term debt maturing - 2016 | ' | ' |
Amount of long-term debt maturing - 2017 | ' | ' |
Amount of long-term debt maturing - 2018 | ' | ' |
Amount of long-term debt maturing - Thereafter | 500,000 | ' |
Long-term debt | 500,000 | 500,000 |
2011 Senior Notes | ' | ' |
Long Term Debt Maturities Repayments Of Principal [Line Items] | ' | ' |
Amount of long-term debt maturing - 2014 | ' | ' |
Amount of long-term debt maturing - 2015 | ' | ' |
Amount of long-term debt maturing - 2016 | 300,000 | ' |
Amount of long-term debt maturing - 2017 | ' | ' |
Amount of long-term debt maturing - 2018 | ' | ' |
Amount of long-term debt maturing - Thereafter | 300,000 | ' |
Long-term debt | 600,000 | 600,000 |
2013 Senior Notes | ' | ' |
Long Term Debt Maturities Repayments Of Principal [Line Items] | ' | ' |
Amount of long-term debt maturing - 2014 | ' | ' |
Amount of long-term debt maturing - 2015 | ' | ' |
Amount of long-term debt maturing - 2016 | ' | ' |
Amount of long-term debt maturing - 2017 | ' | ' |
Amount of long-term debt maturing - 2018 | 250,000 | ' |
Amount of long-term debt maturing - Thereafter | 250,000 | ' |
Long-term debt | $500,000 | ' |
Stockholders_Equity_Additional
Stockholders' Equity - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Share data in Millions, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Stockholders Equity Note [Line Items] | ' | ' | ' |
Preference stock, maximum shares authorized to be issued | 20 | ' | ' |
Preference stock, par value | $0.01 | ' | ' |
Preference stock, shares outstanding | 0 | ' | ' |
Preferred stock, maximum shares authorized to be issued | 3 | ' | ' |
Preferred stock, par value | $1 | ' | ' |
Preferred stock, shares outstanding | 0 | ' | ' |
Shares of common stock repurchased | 11 | 2.3 | 20.4 |
Purchase of treasury stock | $469,218,000 | $77,946,000 | $536,318,000 |
Authorized increase to share repurchase program | 500,000,000 | ' | 500,000,000 |
Remaining share repurchase authorizations under share repurchase program | 380,200,000 | ' | ' |
Dividends paid per share of common stock | $1.44 | $1.24 | $0.92 |
Currency translation adjustments | ($29,694,000) | $27,616,000 | ($77,105,000) |
Changes_in_Accumulated_Balance
Changes in Accumulated Balances for Each Component of Other Comprehensive Income (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss), Net of Tax, as of beginning period | ($464,486) | ($446,645) | ($359,199) |
Other comprehensive income (loss) before reclassifications | 1,491 | -2,040 | -110,508 |
Amounts reclassified from accumulated other comprehensive income (loss) | 19,319 | -15,801 | 23,062 |
Other Comprehensive Income (Loss), Net of Tax | 20,810 | -17,841 | -87,446 |
Accumulated Other Comprehensive Income (Loss), Net of Tax, as of end period | -443,676 | -464,486 | -446,645 |
Derivative Instruments | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss), Net of Tax, as of beginning period | -2,583 | 24,616 | -3,127 |
Other comprehensive income (loss) before reclassifications | -13,103 | 2,734 | 17,900 |
Amounts reclassified from accumulated other comprehensive income (loss) | 4,897 | -29,933 | 9,843 |
Other Comprehensive Income (Loss), Net of Tax | -8,206 | -27,199 | 27,743 |
Accumulated Other Comprehensive Income (Loss), Net of Tax, as of end period | -10,789 | -2,583 | 24,616 |
Defined Benefit Pension Plans | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss), Net of Tax, as of beginning period | -190,656 | -172,398 | -134,314 |
Other comprehensive income (loss) before reclassifications | 44,288 | -32,390 | -51,303 |
Amounts reclassified from accumulated other comprehensive income (loss) | 14,422 | 14,132 | 13,219 |
Other Comprehensive Income (Loss), Net of Tax | 58,710 | -18,258 | -38,084 |
Accumulated Other Comprehensive Income (Loss), Net of Tax, as of end period | -131,946 | -190,656 | -172,398 |
Currency Translation Adjustments | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss), Net of Tax, as of beginning period | -271,247 | -298,863 | -221,758 |
Other comprehensive income (loss) before reclassifications | -29,694 | 27,616 | -77,105 |
Other Comprehensive Income (Loss), Net of Tax | -29,694 | 27,616 | -77,105 |
Accumulated Other Comprehensive Income (Loss), Net of Tax, as of end period | ($300,941) | ($271,247) | ($298,863) |
Classification_and_Amount_of_R
Classification and Amount of Reclassifications from Accumulated Other Comprehensive Income to Consolidated Statement of Operations (Detail) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||
Cost of sales | ' | ' | ' | ' | ' | ' | ' | ' | ($3,006,009) | ($3,011,684) | ($3,120,211) | |||||||||
Income Before Income Taxes | 461,891 | 514,343 | 78,729 | 44,165 | 356,669 | 466,847 | 111,361 | 10,168 | 1,099,128 | 945,045 | 970,673 | |||||||||
Provision for income taxes | ' | ' | ' | ' | ' | ' | ' | ' | -195,184 | -168,581 | -202,165 | |||||||||
Net Income | 369,249 | 422,836 | [1] | 73,348 | [1] | 38,511 | [1] | 306,480 | [1] | 365,937 | [1] | 96,218 | [1] | 7,829 | 903,944 | 776,464 | 768,508 | |||
Reclassification Out of Accumulated Other Comprehensive Income | Derivative Instruments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||
Provision for income taxes | ' | ' | ' | ' | ' | ' | ' | ' | 838 | -45 | -1,341 | |||||||||
Net Income | ' | ' | ' | ' | ' | ' | ' | ' | -4,897 | 29,933 | -9,843 | |||||||||
Reclassification Out of Accumulated Other Comprehensive Income | Derivative Instruments | Foreign Currency Forward Exchange Contracts | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||
Cost of sales | ' | ' | ' | ' | ' | ' | ' | ' | -5,735 | 29,978 | -8,502 | |||||||||
Reclassification Out of Accumulated Other Comprehensive Income | Defined Benefit Pension Plans | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||
Amortization of prior service credit (cost) | ' | ' | ' | ' | ' | ' | ' | ' | 1,057 | [2] | 502 | [2] | -1,776 | [2] | ||||||
Recognized actuarial loss | ' | ' | ' | ' | ' | ' | ' | ' | -21,771 | [2] | -19,137 | [2] | -19,444 | [2] | ||||||
Settlement loss | ' | ' | ' | ' | ' | ' | ' | ' | -1,835 | [2] | -3,534 | [2] | ' | |||||||
Income Before Income Taxes | ' | ' | ' | ' | ' | ' | ' | ' | -22,549 | -22,169 | -21,220 | |||||||||
Provision for income taxes | ' | ' | ' | ' | ' | ' | ' | ' | 8,127 | 8,037 | 8,001 | |||||||||
Net Income | ' | ' | ' | ' | ' | ' | ' | ' | ($14,422) | ($14,132) | ($13,219) | |||||||||
[1] | Net income for the first quarter of 2013 included $4.0 million of net tax benefits primarily related to enacted tax law changes. Net income for the second and third quarter of 2013 included net tax benefits of $11.2 million and $17.0 million, respectively, primarily related to reassessments of prior years' tax liabilities based on the status of audits and tax filings in various jurisdictions, settlements, and enacted tax law changes. Net income for the second and third quarter of 2012 included net tax benefits of $10.5 million and $5.5 million, respectively, primarily related to reassessments of prior years' tax liabilities based on the status of audits and tax filings in various jurisdictions, settlements, and enacted tax law changes. Net income for the fourth quarter of 2012 included the impact of the Litigation Charge, net of tax, of $87.1 million. | |||||||||||||||||||
[2] | The amortization of prior service credit (cost), recognized actuarial loss, and settlement loss are included in the computation of net periodic benefit cost. Refer to "Note 4 to the Consolidated Financial Statements-Employee Benefit Plans" for additional information regarding Mattel's net periodic benefit cost. |
ShareBased_Payments_Additional
Share-Based Payments - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Share data in Millions, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Minimum grant date fair value of nonqualified stock options as a percentage of the fair value of Mattel's common stock | 100.00% | ' | ' |
Mattel, Inc. 2010 Equity and Long-Term Compensation Plan expiration date | 25-Mar-20 | ' | ' |
Remaining number of shares of common stock available for grant under the Mattel, Inc. 2010 Equity and Long-Term Compensation Plan | 27 | ' | ' |
Number of shares, plus other considerations, used to determine the maximum number of shares of common stock available for grant under the Mattel, Inc. 2010 Equity and Long-Term Compensation Plan | 48 | ' | ' |
Total unrecognized compensation cost related to unvested share-based payments | $75,900,000 | ' | ' |
Weighted average period for unrecognized compensation cost expected to be recognized (in years) | '2 years | ' | ' |
Share-based compensation | 61,651,000 | 63,277,000 | 53,476,000 |
Weighted average grant date fair value of stock options granted | $8.80 | $7.32 | $5.76 |
Intrinsic value of stock options exercised | 156,600,000 | 85,800,000 | 43,500,000 |
Intrinsic value of stock options outstanding | 185,300,000 | ' | ' |
Weighted average remaining life of stock options outstanding (in years) | '6 years 9 months 18 days | ' | ' |
Intrinsic value of stock options exercisable | 152,600,000 | ' | ' |
Weighted average remaining life of stock options exercisable (in years) | '5 years 9 months 18 days | ' | ' |
Stock options vested or expected to vest | 9.1 | ' | ' |
Intrinsic value of stock options vested or expected to vest | 184,200,000 | ' | ' |
Weighted average exercise price of stock options vested or expected to vest | $27.31 | ' | ' |
Weighted average remaining life of stock options vested or expected to vest (in years) | '6 years 9 months 18 days | ' | ' |
Approximate stock options vested | 2 | ' | ' |
Approximate total grant date fair value of stock options vested | 13,000,000 | 15,000,000 | 14,000,000 |
Cash received for stock option exercises | 134,506,000 | 122,296,000 | 115,611,000 |
Restricted stock units expected to vest | 2.9 | ' | ' |
Weighted average grant date fair value of restricted stock units expected to vest | $34.77 | ' | ' |
Total grant date fair value of restricted stock units vested | 32,800,000 | 29,500,000 | 33,100,000 |
Stock Option Expiration Term | Maximum | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Stock option expire from date of grant, period | '10 years | ' | ' |
Stock Options | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Share-based compensation | 12,100,000 | 13,800,000 | 14,500,000 |
Income tax benefits from share-based payment arrangements | 3,800,000 | 4,500,000 | 4,800,000 |
Restricted Stock Unit Compensation Expense, Excluding Performance Restricted Stock Unit Compensation Expense | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Share-based compensation | 38,200,000 | 35,300,000 | 30,700,000 |
Income tax benefits from share-based payment arrangements | 10,600,000 | 9,600,000 | 9,000,000 |
Performance Restricted Stock Unit Compensation Expense | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Share-based compensation | 11,400,000 | 14,200,000 | 8,300,000 |
Income tax benefits from share-based payment arrangements | $4,200,000 | $5,200,000 | $3,100,000 |
Nonqualified Stock Options | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
General vesting period | '3 years | ' | ' |
Age requirement for accelerated vesting | 55 | ' | ' |
Service period requirement for accelerated vesting | '5 years | ' | ' |
Accelerated vesting period for individuals who meet the age and service requirements | '6 months | ' | ' |
Restricted Stock Units (RSUs) | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
General vesting period | '3 years | ' | ' |
Age requirement for accelerated vesting | 55 | ' | ' |
Service period requirement for accelerated vesting | '5 years | ' | ' |
Accelerated vesting period for individuals who meet the age and service requirements | '6 months | ' | ' |
Weighted_Average_Assumptions_U
Weighted Average Assumptions Used to Determine Fair Value of Options Granted (Detail) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Assumptions used to Determine Fair Value Options [Line Items] | ' | ' | ' |
Expected life (in years) used to determine the fair value of options granted | '4 years 10 months 24 days | '5 years | '5 years 1 month 6 days |
Risk-free interest rate used to determine the fair value of options granted | 1.50% | 0.70% | 1.40% |
Volatility factor used to determine the fair value of options granted | 31.80% | 35.00% | 34.00% |
Dividend yield used to determine the fair value of options granted | 3.40% | 3.60% | 3.50% |
Summary_of_Stock_Option_Inform
Summary of Stock Option Information and Weighted Average Exercise Prices (Detail) (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Number of shares | ' | ' | ' |
Number of stock options outstanding at beginning of period | 14,630 | 19,299 | 23,265 |
Number of stock options granted | 1,488 | 1,827 | 2,211 |
Number of stock options exercised | -6,828 | -6,312 | -5,977 |
Number of stock options forfeited | -60 | -134 | -163 |
Number of stock options canceled | -12 | -50 | -37 |
Number of stock options outstanding at end of period | 9,218 | 14,630 | 19,299 |
Number of stock options exercisable at end of period | 6,135 | 10,971 | 14,359 |
Weighted Average Exercise Price | ' | ' | ' |
Weighted average exercise price of stock options outstanding at beginning of period | $22.34 | $20.30 | $19.48 |
Weighted average exercise price of stock options granted | $42.70 | $34.29 | $26.38 |
Weighted average exercise price of stock options exercised | $19.74 | $19.50 | $19.34 |
Weighted average exercise price of stock options forfeited | $33.18 | $27.13 | $20.50 |
Weighted average exercise price of stock options canceled | $20.02 | $20.02 | $17.46 |
Weighted average exercise price of stock options outstanding at end of period | $27.48 | $22.34 | $20.30 |
Weighted average exercise price of stock options exercisable at end of period | $22.70 | $20.03 | $19.39 |
Summary_of_RSU_Information_and
Summary of RSU Information and Weighted Average Grant Date Fair Values (Detail) (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Number of Shares | ' | ' | ' |
Shares of restricted stock units unvested at beginning of period | 3,505 | 3,732 | 4,274 |
Shares of restricted stock units granted | 1,116 | 1,417 | 1,663 |
Shares of restricted stock units vested | -1,337 | -1,479 | -1,740 |
Shares of restricted stock units forfeited | -248 | -165 | -465 |
Shares of restricted stock units unvested at end of period | 3,036 | 3,505 | 3,732 |
Weighted Average Grant Date Fair Value | ' | ' | ' |
Weighted average grant date fair value of unvested restricted stock units at beginning of period | $28.24 | $22.53 | $19.49 |
Weighted average grant date fair value of restricted stock units granted | $42.82 | $34.43 | $26.38 |
Weighted average grant date fair value of restricted stock units vested | $24.53 | $19.96 | $19.01 |
Weighted average grant date fair value of restricted stock units forfeited | $31.82 | $26.47 | $21.53 |
Weighted average grant date fair value of unvested restricted stock units at end of period | $34.94 | $28.24 | $22.53 |
Earnings_Per_Share_Detail
Earnings Per Share (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | ||||||
Basic: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
Net Income | $369,249 | $422,836 | [1] | $73,348 | [1] | $38,511 | [1] | $306,480 | [1] | $365,937 | [1] | $96,218 | [1] | $7,829 | $903,944 | $776,464 | $768,508 |
Less: Net income allocable to participating RSUs | ' | ' | ' | ' | ' | ' | ' | ' | -8,335 | -7,730 | -8,821 | ||||||
Net income available for basic common shares | ' | ' | ' | ' | ' | ' | ' | ' | 895,609 | 768,734 | 759,687 | ||||||
Weighted average common shares outstanding | 339,402 | 343,279 | 346,614 | 344,315 | 343,624 | 342,595 | 341,256 | 339,144 | 343,394 | 341,665 | 344,669 | ||||||
Basic net income per common share | $1.08 | $1.22 | $0.21 | $0.11 | $0.88 | $1.06 | $0.28 | $0.02 | $2.61 | $2.25 | $2.20 | ||||||
Diluted: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
Net Income | 369,249 | 422,836 | [1] | 73,348 | [1] | 38,511 | [1] | 306,480 | [1] | 365,937 | [1] | 96,218 | [1] | 7,829 | 903,944 | 776,464 | 768,508 |
Less: Net income allocable to participating RSUs | ' | ' | ' | ' | ' | ' | ' | ' | -8,291 | -7,682 | -8,765 | ||||||
Net income available for diluted common shares | ' | ' | ' | ' | ' | ' | ' | ' | $895,653 | $768,782 | $759,743 | ||||||
Weighted average common shares outstanding | 339,402 | 343,279 | 346,614 | 344,315 | 343,624 | 342,595 | 341,256 | 339,144 | 343,394 | 341,665 | 344,669 | ||||||
Weighted average common equivalent shares arising from: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
Dilutive stock options and non-participating RSUs | ' | ' | ' | ' | ' | ' | ' | ' | 4,065 | 4,493 | 3,755 | ||||||
Weighted average number of common and potential common shares | 343,237 | 346,695 | 350,424 | 348,795 | 348,351 | 347,122 | 345,554 | 343,660 | 347,459 | 346,158 | 348,424 | ||||||
Diluted net income per common share | $1.07 | $1.21 | $0.21 | $0.11 | $0.87 | $1.04 | $0.28 | $0.02 | $2.58 | $2.22 | $2.18 | ||||||
[1] | Net income for the first quarter of 2013 included $4.0 million of net tax benefits primarily related to enacted tax law changes. Net income for the second and third quarter of 2013 included net tax benefits of $11.2 million and $17.0 million, respectively, primarily related to reassessments of prior years' tax liabilities based on the status of audits and tax filings in various jurisdictions, settlements, and enacted tax law changes. Net income for the second and third quarter of 2012 included net tax benefits of $10.5 million and $5.5 million, respectively, primarily related to reassessments of prior years' tax liabilities based on the status of audits and tax filings in various jurisdictions, settlements, and enacted tax law changes. Net income for the fourth quarter of 2012 included the impact of the Litigation Charge, net of tax, of $87.1 million. |
Earnings_Per_Share_Additional_
Earnings Per Share - Additional Information (Detail) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' |
Nonqualified stock options and non-participating RSUs excluded from the calculation of diluted net income per common share | 0.6 | 0.7 | 1 |
Derivative_Instruments_Additio
Derivative Instruments - Additional Information (Detail) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Foreign Exchange Forward | ' | ' |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ' | ' |
Notional amount of foreign currency forward exchange contracts | $1,550,000,000 | $1,360,000,000 |
Foreign Exchange Forward | Designated As Hedging Instrument | ' | ' |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ' | ' |
Net (loss) gain reclassified from accumulated other comprehensive loss to the consolidated statements of operations for derivatives designated as hedging instruments | -4,897,000 | 29,933,000 |
Foreign Exchange Forward | Not Designated As Hedging Instrument | ' | ' |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ' | ' |
Net gain (loss) recognized in the consolidated statements of operations for derivatives not designated as hedging instruments | $13,520,000 | $5,407,000 |
Maximum | ' | ' |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ' | ' |
Maximum term for foreign currency forward exchange contracts | '18 months | ' |
Derivative_Assets_and_Liabilit
Derivative Assets and Liabilities (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative asset, fair value | $2,310 | $3,068 |
Derivative liability, fair value | 14,613 | 8,757 |
Designated As Hedging Instrument | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative asset, fair value | 415 | 3,068 |
Derivative liability, fair value | 12,902 | 8,270 |
Designated As Hedging Instrument | Foreign Exchange Forward | Prepaid expenses and other current assets | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative asset, fair value | 415 | 3,064 |
Designated As Hedging Instrument | Foreign Exchange Forward | Other noncurrent assets | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative asset, fair value | ' | 4 |
Designated As Hedging Instrument | Foreign Exchange Forward | Accrued liabilities | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative liability, fair value | 12,432 | 8,093 |
Designated As Hedging Instrument | Foreign Exchange Forward | Other noncurrent liabilities | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative liability, fair value | 470 | 177 |
Not Designated As Hedging Instrument | Foreign Exchange Forward | Prepaid expenses and other current assets | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative asset, fair value | 1,895 | ' |
Not Designated As Hedging Instrument | Foreign Exchange Forward | Accrued liabilities | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative liability, fair value | $1,711 | $487 |
Derivatives_Designated_as_Hedg
Derivatives Designated as Hedging Instruments by Classification and Amount of Gains and Losses (Detail) (Designated As Hedging Instrument, Foreign Exchange Forward, USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Designated As Hedging Instrument | Foreign Exchange Forward | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Amount of gain (loss) recognized in OCI | ($13,103) | $2,734 |
Amount of gain (loss) reclassified from accumulated OCI to statements of operations | ($4,897) | $29,933 |
Derivatives_Not_Designated_as_
Derivatives Not Designated as Hedging Instruments by Classification and Amount of Gains and Losses (Detail) (Not Designated As Hedging Instrument, Foreign Exchange Forward, USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Net gain (loss) recognized in the statements of operations for derivatives not designated as hedging instruments | $13,520 | $5,407 |
Non-Operating Income Expense Classification | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Net gain (loss) recognized in the statements of operations for derivatives not designated as hedging instruments | 17,975 | 6,317 |
Cost of Sales Classification | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Net gain (loss) recognized in the statements of operations for derivatives not designated as hedging instruments | ($4,455) | ($910) |
Financial_Assets_and_Liabiliti
Financial Assets and Liabilities Measured and Reported at Fair Value on Recurring Basis (Detail) (Fair Value, Measurements, Recurring, USD $) | Dec. 31, 2013 | Dec. 31, 2012 | ||
In Thousands, unless otherwise specified | ||||
Assets: | ' | ' | ||
Foreign currency forward exchange contracts | $2,310 | [1] | $3,068 | [1] |
Auction rate security | 28,895 | [2] | 19,256 | [2] |
Total assets | 31,205 | 22,324 | ||
Liabilities: | ' | ' | ||
Foreign currency forward exchange contracts | 14,613 | [1] | 8,757 | [1] |
Level 2 | ' | ' | ||
Assets: | ' | ' | ||
Foreign currency forward exchange contracts | 2,310 | [1] | 3,068 | [1] |
Total assets | 2,310 | 3,068 | ||
Liabilities: | ' | ' | ||
Foreign currency forward exchange contracts | 14,613 | [1] | 8,757 | [1] |
Level 3 | ' | ' | ||
Assets: | ' | ' | ||
Auction rate security | 28,895 | [2] | 19,256 | [2] |
Total assets | $28,895 | $19,256 | ||
[1] | The fair value of the foreign currency forward exchange contracts is based on dealer quotes of market forward rates and reflects the amount that Mattel would receive or pay at their maturity dates for contracts involving the same notional amounts, currencies, and maturity dates. | |||
[2] | The fair value of the auction rate security is estimated using a discounted cash flow model based on (i) estimated interest rates, timing, and amount of cash flows, (ii) credit spreads, recovery rates, and credit quality of the underlying securities, (iii) illiquidity considerations, and (iv) market correlation. |
Assets_Measured_and_Reported_a
Assets Measured and Reported at Fair Value on Recurring Basis Using Significant Level 3 Inputs (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' | ' | ' |
Balance at beginning of period | $19,256 | $15,630 | $21,000 |
Unrealized gain (loss) | 9,639 | 3,626 | -5,370 |
Balance at end of period | $28,895 | $19,256 | $15,630 |
Fair_Value_Measurements_Additi
Fair Value Measurements - Additional Information (Detail) (USD $) | 3 Months Ended | ||
Jun. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | |
Financial Instruments [Line Items] | ' | ' | ' |
Impairment charge | $14,000,000 | ' | ' |
Remaining fair value of intangible assets | 99,000,000 | ' | ' |
Estimated fair value of long-term debt, including the current portion | ' | 1,620,000,000 | 1,630,000,000 |
Long-term debt | ' | $1,600,000,000 | $1,500,000,000 |
Schedule_of_Future_Minimum_Obl
Schedule of Future Minimum Obligations Under Lease Commitments (Detail) (USD $) | Dec. 31, 2013 | |
In Thousands, unless otherwise specified | ||
Commitments and Contingencies Disclosure [Line Items] | ' | |
Future minimum capital lease obligations - 2014 | $294 | |
Future minimum capital lease obligations - 2015 | 294 | |
Future minimum capital lease obligations - 2016 | 294 | |
Future minimum capital lease obligations - 2017 | 294 | |
Future minimum capital lease obligations - 2018 | 294 | |
Future minimum capital lease obligations - Thereafter | 321 | |
Total future minimum capital lease obligations | 1,791 | [1] |
Future minimum operating lease obligations - 2014 | 103,927 | |
Future minimum operating lease obligations - 2015 | 89,387 | |
Future minimum operating lease obligations - 2016 | 82,389 | |
Future minimum operating lease obligations - 2017 | 60,941 | |
Future minimum operating lease obligations - 2018 | 44,294 | |
Future minimum operating lease obligations - Thereafter | 163,544 | |
Total future minimum operating lease obligations | $544,482 | |
[1] | Includes $0.4 million of imputed interest. |
Schedule_of_Future_Minimum_Obl1
Schedule of Future Minimum Obligations Under Lease Commitments (Parenthetical) (Detail) (USD $) | Dec. 31, 2013 |
In Millions, unless otherwise specified | |
Commitments and Contingencies Disclosure [Line Items] | ' |
Imputed interest for capitalized leases | $0.40 |
Commitments_and_Contingencies_1
Commitments and Contingencies - Additional Information (Detail) (USD $) | 12 Months Ended | 1 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | |||||||||||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 23, 2013 | Dec. 21, 2013 | Jan. 24, 2013 | Aug. 31, 2011 | Aug. 11, 2011 | Apr. 30, 2011 | Apr. 27, 2009 | Jul. 17, 2008 | Jul. 26, 2013 | Jan. 31, 2010 | Apr. 30, 1999 | Dec. 31, 2013 | Jan. 23, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | |
MGA | MGA | MGA | MGA | MGA | MGA | MGA | MGA | Yellowstone | Yellowstone | Yellowstone | Yellowstone | Subsequent Event | Workers Compensation Risks | General And Automobile Liability Risks | Product Liability Risks | Foreign Property Risks | ||||
LegalMatter | MGA | |||||||||||||||||||
Minimum | ||||||||||||||||||||
Commitments and Contingencies Disclosure [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Operating lease rental expense, net of sublease income | $111,000,000 | $116,500,000 | $113,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sublease income | 900,000 | 900,000 | 900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Royalty expense | 246,900,000 | 240,200,000 | 262,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Self-insured amount per occurrence | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,000,000 | 500,000 | 2,000,000 | 500,000 |
Self-insured amount per year for product liability risks | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,000,000 | ' |
Liability for reported and incurred but not reported claims | 15,800,000 | 17,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Historical jury verdict | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100,000,000 | 100,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Claimed trade secrets | ' | ' | ' | ' | ' | ' | ' | ' | 26 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other claimed trade secrets | ' | ' | ' | ' | ' | ' | ' | ' | 88 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Compensatory damages awarded by jury | ' | ' | ' | ' | ' | ' | ' | ' | 88,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reduced compensatory damages awarded by court | ' | ' | ' | ' | ' | ' | 85,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Punitive damages awarded | ' | ' | ' | ' | ' | ' | 85,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Attorney fees and costs awarded | ' | ' | ' | ' | ' | ' | 140,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Compensatory damages, punitive damages, and attorney fees and costs awarded by court | ' | ' | ' | ' | ' | ' | 310,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Damages for alleged trade secret misappropriation appealed | ' | ' | ' | ' | ' | ' | ' | 170,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Attorney fees and costs appealed | ' | ' | ' | ' | ' | ' | ' | 140,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount of damages and attorney's fees and costs vacated by the appeals court | ' | ' | ' | ' | ' | 172,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Approximate amount of judgment finalized in the District Court, including interest | ' | ' | ' | ' | 138,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Payment of Judgment | ' | ' | ' | 138,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Litigation accrual | ' | 137,800,000 | ' | ' | ' | 138,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Alleged trade secrets damages claimed | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,000,000,000 | ' | ' | ' | ' |
Alleged loss of profits | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 500,000 | ' | ' | ' | ' | ' | ' |
Unpaid accounts receivable | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,500,000 | ' | ' | ' | ' | ' |
Alleged business investments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,800,000 | ' | ' | ' | ' | ' |
Initial court appointed expert estimated loss of profits | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,200,000 | ' | ' | ' | ' | ' |
Court awarded damages from counterclaim | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,800,000 | ' | ' | ' | ' | ' | ' | ' |
Damages awarded by Appeals Court including inflation and interest | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 20,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Counterclaim Awarded By Appeals Court | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Reasonably possible range of loss, minimum | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' |
Reasonably possible range of loss, maximum | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $20,000,000 | ' | ' | ' | ' | ' |
Schedule_of_Future_Minimum_Pay
Schedule of Future Minimum Payments for Licensing and Similar Agreements (Detail) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Commitments and Contingencies Disclosure [Line Items] | ' |
Future minimum payments for licensing and similar agreements obligations - 2014 | $67,391 |
Future minimum payments for licensing and similar agreements obligations - 2015 | 78,621 |
Future minimum payments for licensing and similar agreements obligations - 2016 | 42,310 |
Future minimum payments for licensing and similar agreements obligations - 2017 | 18,928 |
Future minimum payments for licensing and similar agreements obligations - 2018 | 1,002 |
Future minimum payments for licensing and similar agreements obligations - Thereafter | 550 |
Total future minimum licensing and similar agreements obligations | $208,802 |
Schedule_of_Future_Minimum_Obl2
Schedule of Future Minimum Obligations for Purchases of Inventory, Other Assets, and Services (Detail) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Commitments and Contingencies Disclosure [Line Items] | ' |
Future minimum obligations for purchases of inventory, other assets, and services - 2014 | $361,915 |
Future minimum obligations for purchases of inventory, other assets, and services - 2015 | 15,838 |
Future minimum obligations for purchases of inventory, other assets, and services - 2016 | 4,483 |
Future minimum obligations for purchases of inventory, other assets, and services - 2017 | 1,038 |
Future minimum obligations for purchases of inventory, other assets, and services - 2018 | ' |
Total future minimum obligations for purchases of inventory, other assets, and services | $383,274 |
Segment_Revenues_and_Segment_I
Segment Revenues and Segment Income (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Gross sales | ' | ' | ' | ' | ' | ' | ' | ' | $7,117,813 | $7,052,603 | $6,841,087 | ||||
Sales adjustments | ' | ' | ' | ' | ' | ' | ' | ' | -632,921 | -631,722 | -575,050 | ||||
Net Sales | 2,113,216 | 2,206,961 | 1,169,109 | 995,606 | 2,255,905 | 2,077,816 | 1,158,711 | 928,449 | 6,484,892 | 6,420,881 | 6,266,037 | ||||
Operating income | 479,307 | 528,175 | 94,790 | 65,831 | 373,479 | [1] | 487,367 | 131,433 | 28,736 | 1,168,103 | 1,021,015 | 1,041,101 | |||
Interest expense | ' | ' | ' | ' | ' | ' | ' | ' | 78,505 | 88,835 | 75,332 | ||||
Interest (income) | ' | ' | ' | ' | ' | ' | ' | ' | -5,555 | -6,841 | -8,093 | ||||
Other non-operating (income) expense, net | ' | ' | ' | ' | ' | ' | ' | ' | -3,975 | -6,024 | 3,189 | ||||
Income before income taxes | 461,891 | 514,343 | 78,729 | 44,165 | 356,669 | 466,847 | 111,361 | 10,168 | 1,099,128 | 945,045 | 970,673 | ||||
Operating Segments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Gross sales | ' | ' | ' | ' | ' | ' | ' | ' | 7,117,813 | 7,052,603 | 6,841,087 | ||||
Operating income | ' | ' | ' | ' | ' | ' | ' | ' | 1,484,773 | 1,503,326 | 1,394,794 | ||||
Operating Segments | North America | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Gross sales | ' | ' | ' | ' | ' | ' | ' | ' | 3,181,205 | 3,330,217 | 3,296,995 | ||||
Operating income | ' | ' | ' | ' | ' | ' | ' | ' | 723,834 | 810,271 | 770,276 | ||||
Operating Segments | International | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Gross sales | ' | ' | ' | ' | ' | ' | ' | ' | 3,277,840 | 3,126,088 | 3,001,705 | ||||
Operating income | ' | ' | ' | ' | ' | ' | ' | ' | 622,910 | 571,413 | 513,414 | ||||
Operating Segments | American Girl | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Gross sales | ' | ' | ' | ' | ' | ' | ' | ' | 658,768 | 596,298 | 542,387 | ||||
Operating income | ' | ' | ' | ' | ' | ' | ' | ' | 138,029 | 121,642 | 111,104 | ||||
Corporate and Other | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Operating income | ' | ' | ' | ' | ' | ' | ' | ' | ($316,670) | [2] | ($482,311) | [2] | ($353,693) | [2] | |
[1] | Other selling and administrative expenses and operating income for the fourth quarter of 2012 included the impact of the Litigation Charge of $137.8 million. | ||||||||||||||
[2] | Corporate and other expense includes (i) incentive compensation expense of $65.0 million, $108.1 million, and $75.3 million for 2013, 2012, and 2011, respectively, (ii) $17.6 million, $13.4 million, and $14.9 million of charges related to severance and other termination-related costs for 2013, 2012, and 2011, respectively, (iii) share-based compensation expense of $61.7 million, $63.3 million, and $53.5 million for 2013, 2012, and 2011, respectively, (iv) the Litigation Charge of $137.8 million for 2012, (v) $7.5 million Gunther-Wahl Productions legal settlement for 2011, and (vi) legal fees associated with MGA litigation matters. |
Segment_Revenues_and_Segment_I1
Segment Revenues and Segment Income (Parenthetical) (Detail) (USD $) | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Expense for incentive compensation plans | ' | $65,000,000 | $108,100,000 | $75,300,000 |
Share-based compensation expense | ' | 61,651,000 | 63,277,000 | 53,476,000 |
Litigation charge | 137,800,000 | ' | ' | ' |
Corporate and Other | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Expense for incentive compensation plans | ' | 65,000,000 | 108,100,000 | 75,300,000 |
Severance and other termination-related costs | ' | 17,600,000 | 13,400,000 | 14,900,000 |
Share-based compensation expense | ' | 61,700,000 | 63,300,000 | 53,500,000 |
Litigation charge | ' | ' | 137,800,000 | ' |
Legal settlement | ' | ' | ' | $7,500,000 |
Segment_DepreciationAmortizati
Segment Depreciation/Amortization (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Segment Depreciation and Amortization [Line Items] | ' | ' | ' |
Depreciation and amortization | $196,393 | $174,282 | $161,298 |
Operating Segments | ' | ' | ' |
Segment Depreciation and Amortization [Line Items] | ' | ' | ' |
Depreciation and amortization | 173,679 | 157,555 | 144,713 |
Operating Segments | North America | ' | ' | ' |
Segment Depreciation and Amortization [Line Items] | ' | ' | ' |
Depreciation and amortization | 84,935 | 76,593 | 66,477 |
Operating Segments | International | ' | ' | ' |
Segment Depreciation and Amortization [Line Items] | ' | ' | ' |
Depreciation and amortization | 71,380 | 65,340 | 63,026 |
Operating Segments | American Girl | ' | ' | ' |
Segment Depreciation and Amortization [Line Items] | ' | ' | ' |
Depreciation and amortization | 17,364 | 15,622 | 15,210 |
Corporate and Other | ' | ' | ' |
Segment Depreciation and Amortization [Line Items] | ' | ' | ' |
Depreciation and amortization | $22,714 | $16,727 | $16,585 |
Segment_Assets_Detail
Segment Assets (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ' | ' |
Accounts receivable and inventories, net | $1,828,948 | $1,691,890 |
Operating Segments | ' | ' |
Segment Reporting, Asset Reconciling Item [Line Items] | ' | ' |
Accounts receivable and inventories, net | 1,745,094 | 1,592,725 |
Operating Segments | North America | ' | ' |
Segment Reporting, Asset Reconciling Item [Line Items] | ' | ' |
Accounts receivable and inventories, net | 723,886 | 694,479 |
Operating Segments | International | ' | ' |
Segment Reporting, Asset Reconciling Item [Line Items] | ' | ' |
Accounts receivable and inventories, net | 920,770 | 807,911 |
Operating Segments | American Girl | ' | ' |
Segment Reporting, Asset Reconciling Item [Line Items] | ' | ' |
Accounts receivable and inventories, net | 100,438 | 90,335 |
Corporate and Other | ' | ' |
Segment Reporting, Asset Reconciling Item [Line Items] | ' | ' |
Accounts receivable and inventories, net | $83,854 | $99,165 |
Worldwide_Revenues_by_Brand_Ca
Worldwide Revenues by Brand Category (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gross sales | ' | ' | ' | ' | ' | ' | ' | ' | $7,117,813 | $7,052,603 | $6,841,087 |
Sales adjustments | ' | ' | ' | ' | ' | ' | ' | ' | -632,921 | -631,722 | -575,050 |
Net Sales | 2,113,216 | 2,206,961 | 1,169,109 | 995,606 | 2,255,905 | 2,077,816 | 1,158,711 | 928,449 | 6,484,892 | 6,420,881 | 6,266,037 |
Mattel Girls And Boys Brands | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gross sales | ' | ' | ' | ' | ' | ' | ' | ' | 4,315,855 | 4,186,550 | 4,120,564 |
Fisher-Price Brands | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gross sales | ' | ' | ' | ' | ' | ' | ' | ' | 2,120,719 | 2,252,339 | 2,159,178 |
American Girl Brands | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gross sales | ' | ' | ' | ' | ' | ' | ' | ' | 632,515 | 567,521 | 510,936 |
Other | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gross sales | ' | ' | ' | ' | ' | ' | ' | ' | $48,724 | $46,193 | $50,409 |
Revenues_by_Geographic_Area_De
Revenues by Geographic Area (Detail) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Gross sales | ' | ' | ' | ' | ' | ' | ' | ' | $7,117,813 | $7,052,603 | $6,841,087 | |||
Sales adjustments | ' | ' | ' | ' | ' | ' | ' | ' | -632,921 | -631,722 | -575,050 | |||
Net Sales | 2,113,216 | 2,206,961 | 1,169,109 | 995,606 | 2,255,905 | 2,077,816 | 1,158,711 | 928,449 | 6,484,892 | 6,420,881 | 6,266,037 | |||
North American Region | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Gross sales | ' | ' | ' | ' | ' | ' | ' | ' | 3,839,973 | [1] | 3,926,515 | [1] | 3,839,382 | [1] |
International | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Gross sales | ' | ' | ' | ' | ' | ' | ' | ' | 3,277,840 | 3,126,088 | 3,001,705 | |||
International | Europe | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Gross sales | ' | ' | ' | ' | ' | ' | ' | ' | 1,806,707 | 1,685,274 | 1,626,120 | |||
International | Latin America | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Gross sales | ' | ' | ' | ' | ' | ' | ' | ' | 1,011,718 | 1,008,236 | 991,435 | |||
International | Asia Pacific | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Gross sales | ' | ' | ' | ' | ' | ' | ' | ' | $459,415 | $432,578 | $384,150 | |||
[1] | Revenues for the North American Region include revenues attributable to the US of $3.58 billion, $3.61 billion, and $3.58 billion for 2013, 2012, and 2011, respectively. |
LongLived_Assets_by_Geographic
Long-Lived Assets by Geographic Area (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
In Thousands, unless otherwise specified | ||||||
Long-Lived Assets by Geographical Areas [Line Items] | ' | ' | ' | |||
Long-Lived Assets | $2,687,995 | $2,595,313 | $1,754,099 | |||
North American Region | ' | ' | ' | |||
Long-Lived Assets by Geographical Areas [Line Items] | ' | ' | ' | |||
Long-Lived Assets | 1,361,538 | [1] | 1,252,938 | [1] | 1,074,914 | [1] |
International | ' | ' | ' | |||
Long-Lived Assets by Geographical Areas [Line Items] | ' | ' | ' | |||
Long-Lived Assets | $1,326,457 | $1,342,375 | $679,185 | |||
[1] | Long-lived assets for the North American Region include long-lived assets attributable to the US of $1.36 billion, $1.25 billion, and $1.05 billion for 2013, 2012, and 2011, respectively. |
Revenues_by_Geographic_Area_Pa
Revenues by Geographic Area (Parenthetical) (Detail) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | |||
Gross sales | $7,117,813 | $7,052,603 | $6,841,087 | |||
North American Region | ' | ' | ' | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | |||
Gross sales | 3,839,973 | [1] | 3,926,515 | [1] | 3,839,382 | [1] |
North American Region | United States | ' | ' | ' | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | |||
Gross sales | $3,580,000 | $3,610,000 | $3,580,000 | |||
[1] | Revenues for the North American Region include revenues attributable to the US of $3.58 billion, $3.61 billion, and $3.58 billion for 2013, 2012, and 2011, respectively. |
LongLived_Assets_by_Geographic1
Long-Lived Assets by Geographic Area (Parenthetical) (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
In Thousands, unless otherwise specified | ||||||
Long-Lived Assets by Geographical Areas [Line Items] | ' | ' | ' | |||
Long-Lived Assets | $2,687,995 | $2,595,313 | $1,754,099 | |||
North American Region | ' | ' | ' | |||
Long-Lived Assets by Geographical Areas [Line Items] | ' | ' | ' | |||
Long-Lived Assets | 1,361,538 | [1] | 1,252,938 | [1] | 1,074,914 | [1] |
North American Region | United States | ' | ' | ' | |||
Long-Lived Assets by Geographical Areas [Line Items] | ' | ' | ' | |||
Long-Lived Assets | $1,360,000 | $1,250,000 | $1,050,000 | |||
[1] | Long-lived assets for the North American Region include long-lived assets attributable to the US of $1.36 billion, $1.25 billion, and $1.05 billion for 2013, 2012, and 2011, respectively. |
Segment_Information_Additional
Segment Information - Additional Information (Detail) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Segment Reporting Disclosure [Line Items] | ' | ' | ' |
Percentage of total consolidated net sales accounted by three largest customers | 36.00% | 37.00% | 38.00% |
Net_Sales_to_Three_Largest_Cus
Net Sales to Three Largest Customers (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Revenue, Major Customer [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net Sales | $2,113,216 | $2,206,961 | $1,169,109 | $995,606 | $2,255,905 | $2,077,816 | $1,158,711 | $928,449 | $6,484,892 | $6,420,881 | $6,266,037 |
Wal-Mart | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue, Major Customer [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net Sales | ' | ' | ' | ' | ' | ' | ' | ' | 1,200,000 | 1,200,000 | 1,200,000 |
Toys "R" Us | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue, Major Customer [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net Sales | ' | ' | ' | ' | ' | ' | ' | ' | 700,000 | 700,000 | 700,000 |
Target | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue, Major Customer [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net Sales | ' | ' | ' | ' | ' | ' | ' | ' | $500,000 | $500,000 | $500,000 |
Supplemental_Financial_Informa2
Supplemental Financial Information - Balance Sheet Accounts (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Supplemental Balance Sheet Information [Line Items] | ' | ' |
Raw materials and work in process | $89,863 | $79,216 |
Finished goods | 478,980 | 385,841 |
Inventories | 568,843 | 465,057 |
Property, plant, and equipment, gross | 2,239,550 | 2,133,095 |
Less: accumulated depreciation | -1,580,217 | -1,539,882 |
Total property, plant, and equipment, net | 659,333 | 593,213 |
Nonamortizable identifiable intangibles | 504,241 | 617,223 |
Deferred income taxes | 373,638 | 374,667 |
Identifiable intangibles (net of amortization of $68.3 million and $64.9 million at December 31, 2013 and 2012, respectively) | 176,579 | 88,786 |
Other noncurrent assets | 264,603 | 215,293 |
Total other noncurrent assets | 1,319,061 | 1,295,969 |
Royalties | 100,542 | 97,051 |
Advertising and promotion | 76,453 | 87,878 |
Taxes other than income taxes | 70,121 | 80,673 |
Incentive compensation | 67,239 | 110,039 |
Litigation accrual | ' | 137,800 |
Other accrued liabilities | 325,800 | 374,307 |
Total accrued liabilities | 640,155 | 887,748 |
Benefit plan liabilities | 193,046 | 284,614 |
Noncurrent tax liabilities | 186,055 | 213,658 |
Other noncurrent liabilities | 161,526 | 145,457 |
Total other noncurrent liabilities | 540,627 | 643,729 |
Land | ' | ' |
Supplemental Balance Sheet Information [Line Items] | ' | ' |
Property, plant, and equipment, gross | 27,555 | 26,692 |
Buildings | ' | ' |
Supplemental Balance Sheet Information [Line Items] | ' | ' |
Property, plant, and equipment, gross | 269,874 | 268,381 |
Machinery and equipment | ' | ' |
Supplemental Balance Sheet Information [Line Items] | ' | ' |
Property, plant, and equipment, gross | 974,830 | 931,732 |
Tools, dies, and molds | ' | ' |
Supplemental Balance Sheet Information [Line Items] | ' | ' |
Property, plant, and equipment, gross | 713,749 | 674,119 |
Capital leases | ' | ' |
Supplemental Balance Sheet Information [Line Items] | ' | ' |
Property, plant, and equipment, gross | 23,271 | 23,271 |
Leasehold improvements | ' | ' |
Supplemental Balance Sheet Information [Line Items] | ' | ' |
Property, plant, and equipment, gross | $230,271 | $208,900 |
Supplemental_Financial_Informa3
Supplemental Financial Information - Balance Sheet Accounts (Parenthetical) (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Supplemental Balance Sheet Information [Line Items] | ' | ' |
Amortization of identifiable intangibles | $68.30 | $64.90 |
Currency_Transaction_GainsLoss
Currency Transaction Gains/Losses (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Currency Transaction Gains (Losses) [Line Items] | ' | ' | ' |
Net transaction gains | $37,572 | $63,519 | $32,451 |
Operating income | ' | ' | ' |
Currency Transaction Gains (Losses) [Line Items] | ' | ' | ' |
Net transaction gains | 38,842 | 61,956 | 34,299 |
Other non-operating (expense) income, net | ' | ' | ' |
Currency Transaction Gains (Losses) [Line Items] | ' | ' | ' |
Net transaction gains | ($1,270) | $1,563 | ($1,848) |
Other_Selling_and_Administrati
Other Selling and Administrative Expenses (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Component of Operating Other Cost and Expense [Line Items] | ' | ' | ' |
Design and development | $201,942 | $195,070 | $178,982 |
Identifiable intangible asset amortization | 12,575 | 11,880 | 8,880 |
Bad debt expense | $4,471 | $2,645 | $6,160 |
Quarterly_Financial_Informatio2
Quarterly Financial Information (Unaudited) (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | ||||||
Quarterly Financial Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
Net Sales | $2,113,216 | $2,206,961 | $1,169,109 | $995,606 | $2,255,905 | $2,077,816 | $1,158,711 | $928,449 | $6,484,892 | $6,420,881 | $6,266,037 | ||||||
Gross profit | 1,150,844 | 1,187,980 | 600,008 | 540,051 | 1,225,933 | 1,115,371 | 594,522 | 473,371 | 3,478,883 | 3,409,197 | 3,145,826 | ||||||
Advertising and promotion expenses | 282,876 | 249,386 | 113,403 | 104,540 | 272,756 | 234,793 | 112,395 | 97,859 | ' | ' | ' | ||||||
Other selling and administrative expenses | 388,661 | 410,419 | 391,815 | 369,680 | 579,698 | [1] | 393,211 | 350,694 | 346,776 | ' | ' | ' | |||||
Operating income | 479,307 | 528,175 | 94,790 | 65,831 | 373,479 | [1] | 487,367 | 131,433 | 28,736 | 1,168,103 | 1,021,015 | 1,041,101 | |||||
Income before income taxes | 461,891 | 514,343 | 78,729 | 44,165 | 356,669 | 466,847 | 111,361 | 10,168 | 1,099,128 | 945,045 | 970,673 | ||||||
Net Income | $369,249 | $422,836 | [2] | $73,348 | [2] | $38,511 | [2] | $306,480 | [2] | $365,937 | [2] | $96,218 | [2] | $7,829 | $903,944 | $776,464 | $768,508 |
Net Income Per Common Share-Basic | $1.08 | $1.22 | $0.21 | $0.11 | $0.88 | $1.06 | $0.28 | $0.02 | $2.61 | $2.25 | $2.20 | ||||||
Weighted average number of common shares | 339,402 | 343,279 | 346,614 | 344,315 | 343,624 | 342,595 | 341,256 | 339,144 | 343,394 | 341,665 | 344,669 | ||||||
Net Income Per Common Share-Diluted | $1.07 | $1.21 | $0.21 | $0.11 | $0.87 | $1.04 | $0.28 | $0.02 | $2.58 | $2.22 | $2.18 | ||||||
Weighted average number of common and potential common shares | 343,237 | 346,695 | 350,424 | 348,795 | 348,351 | 347,122 | 345,554 | 343,660 | 347,459 | 346,158 | 348,424 | ||||||
Dividends Declared Per Common Share | $0.36 | $0.36 | $0.36 | $0.36 | $0.31 | $0.31 | $0.31 | $0.31 | $1.44 | $1.24 | $0.92 | ||||||
Common stock market price - high | $47.82 | $47.08 | $46.79 | $43.77 | $37.79 | $36.17 | $34.30 | $34.39 | ' | ' | ' | ||||||
Common stock market price - low | $40.39 | $40.39 | $42.64 | $35.70 | $35.11 | $31.04 | $30.56 | $27.76 | ' | ' | ' | ||||||
[1] | Other selling and administrative expenses and operating income for the fourth quarter of 2012 included the impact of the Litigation Charge of $137.8 million. | ||||||||||||||||
[2] | Net income for the first quarter of 2013 included $4.0 million of net tax benefits primarily related to enacted tax law changes. Net income for the second and third quarter of 2013 included net tax benefits of $11.2 million and $17.0 million, respectively, primarily related to reassessments of prior years' tax liabilities based on the status of audits and tax filings in various jurisdictions, settlements, and enacted tax law changes. Net income for the second and third quarter of 2012 included net tax benefits of $10.5 million and $5.5 million, respectively, primarily related to reassessments of prior years' tax liabilities based on the status of audits and tax filings in various jurisdictions, settlements, and enacted tax law changes. Net income for the fourth quarter of 2012 included the impact of the Litigation Charge, net of tax, of $87.1 million. |
Quarterly_Financial_Informatio3
Quarterly Financial Information (Unaudited) (Parenthetical) (Detail) (USD $) | 3 Months Ended | |||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 |
Quarterly Financial Information [Line Items] | ' | ' | ' | ' | ' | ' |
Net tax benefit | $17 | $11.20 | $4 | ' | $5.50 | $10.50 |
Net litigation charge | ' | ' | ' | 87.1 | ' | ' |
Litigation charge | ' | ' | ' | $137.80 | ' | ' |
Subsequent_Event_Additional_In
Subsequent Event - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | 1 Months Ended | |||||||||
Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jan. 31, 2014 | |
Subsequent Event | ||||||||||||
Dividend Declared | ||||||||||||
Subsequent Event [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Dividends declared | $0.36 | $0.36 | $0.36 | $0.36 | $0.31 | $0.31 | $0.31 | $0.31 | $1.44 | $1.24 | $0.92 | $0.38 |
Dividend payable date | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7-Mar-14 |
Dividend payable, stockholders of record date | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 20-Feb-14 |
Dividend announcement date | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 31-Jan-14 |
Valuation_and_Qualifying_Accou1
Valuation and Qualifying Accounts and Allowances (Detail) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Allowance for Doubtful Accounts | ' | ' | ' | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | ' | ' | ' | |||
Balance at Beginning of Year | $33,499 | $26,331 | $21,775 | |||
Additions Charged to Operations | 4,471 | 15,395 | [1] | 6,160 | ||
Net Deductions and Other | -17,554 | [2] | -8,227 | [2] | -1,604 | [2] |
Balance at End of Year | 20,416 | 33,499 | 26,331 | |||
Allowance for Inventory Obsolescence | ' | ' | ' | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | ' | ' | ' | |||
Balance at Beginning of Year | 46,585 | 39,247 | 46,876 | |||
Additions Charged to Operations | 35,027 | 36,209 | 33,027 | |||
Net Deductions and Other | -32,499 | [3] | -28,871 | [3] | -40,656 | [3] |
Balance at End of Year | 49,113 | 46,585 | 39,247 | |||
Income Tax Valuation Allowances | ' | ' | ' | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | ' | ' | ' | |||
Balance at Beginning of Year | 67,705 | 42,286 | 44,917 | |||
Additions Charged to Operations | 6,564 | 38,740 | 7,394 | |||
Net Deductions and Other | -9,628 | [4] | -13,321 | [4] | -10,025 | [4] |
Balance at End of Year | $64,641 | $67,705 | $42,286 | |||
[1] | Includes an allowance for doubtful accounts of $12.8 million related to a transaction that was not recognized in the statement of operations as the transaction did not meet the relevant revenue recognition criteria. | |||||
[2] | Includes write-offs, recoveries of previous write-offs, and currency translation adjustments. | |||||
[3] | Primarily relates to the disposal of related inventory and raw materials and currency translation adjustments. | |||||
[4] | Primarily represents projected utilization and write-offs of loss carryforwards and changes in tax rates for 2013; projected utilization and write-offs of loss carryforwards for 2012; and utilization and write-offs of loss carryforwards for 2011 and change in the projected utilization of loss carryforwards due to tax law changes extending the carryover periods in 2011. |
Valuation_and_Qualifying_Accou2
Valuation and Qualifying Accounts and Allowances (Parenthetical) (Detail) (USD $) | Dec. 31, 2012 |
In Millions, unless otherwise specified | |
Valuation and Qualifying Accounts Disclosure [Line Items] | ' |
Allowance for doubtful account | $12.80 |