Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2014

Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis

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

	March 31, 2014
	Level 1		Level 2		Level 3		Total
	(In thousands)
Assets:
Foreign currency forward exchange contracts (a)	$	—	$	6,710	$	—	$	6,710
Auction rate security (b)		—		—		29,988		29,988
Total assets	$	—	$	6,710	$	29,988	$	36,698
Liabilities:
Foreign currency forward exchange contracts (a)	$	—	$	18,227	$	—	$	18,227
	March 31, 2013
	Level 1		Level 2		Level 3		Total
	(In thousands)
Assets:
Foreign currency forward exchange contracts (a)	$	—	$	10,868	$	—	$	10,868
Auction rate security (b)		—		—		21,504		21,504
Total assets	$	—	$	10,868	$	21,504	$	32,372
Liabilities:
Foreign currency forward exchange contracts (a)	$	—	$	4,904	$	—	$	4,904
	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

(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, 2013	$	28,895
Unrealized gain		1,093
Balance at March 31, 2014	$	29,988