Accumulated Other Comprehensive Loss

9 Months Ended

Sep. 30, 2012

Accumulated Other Comprehensive Loss

10. Accumulated Other Comprehensive Loss

The components of accumulated other comprehensive loss are as follows:

	September 30, 2012			September 30, 2011			December 31, 2011
	(In thousands)
Currency translation adjustments	$	(288,270	)	$	(276,347	)	$	(298,863	)
Defined benefit pension and other postretirement plans, net of tax		(165,693	)		(126,338	)		(172,398	)
Net unrealized gains on derivative instruments, net of tax		17,890			7,603			24,616
	$	(436,073	)	$	(395,082	)	$	(446,645	)

Currency Translation Adjustments

Mattel’s reporting currency is the US dollar. The translation of its net investment in subsidiaries with non-US dollar functional currencies subjects Mattel to 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 fiscal period-end exchange rates. Income, expense, and cash flow items are translated at weighted average exchange rates prevailing during the fiscal period. The resulting currency translation adjustments are recorded as a component of accumulated other comprehensive loss within stockholders’ equity. For the nine months ended September 30, 2012, currency translation adjustments resulted in a net gain of $10.6 million, with gains primarily from the strengthening of the Mexican peso and British pound sterling against the US dollar. For the nine months ended September 30, 2011, currency translation adjustments resulted in a net loss of $54.6 million, with losses primarily from the weakening of the Mexican peso, Brazilian real, and British pound sterling against the US dollar.