Employee Benefit Plans (Tables)

12 Months Ended

Dec. 31, 2014

Summary of Retirement Plan Expense

A summary of retirement plan expense is as follows:

	For the Year
	2014		2013		2012
	(In thousands)
Defined contribution retirement plans	$	43,819	$	43,694	$	40,266
Defined benefit pension plans		18,124		30,747		33,597
Deferred compensation and excess benefit plans		4,840		9,298		5,740
Postretirement benefit plans		1,461		2,245		1,607
	$	68,244	$	85,984	$	81,210

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
	2014			2013			2012			2014			2013		2012
	(In thousands)
Net periodic benefit cost:
Service cost	$	7,515		$	12,982		$	13,285		$	67		$	82	$	79
Interest cost		27,708			25,580			29,530			1,377			1,585		1,411
Expected return on plan assets		(31,833	)		(29,786	)		(31,270	)		—			—		—
Amortization of prior service credit		(1,037	)		(1,057	)		(502	)		—			—		—
Recognized actuarial loss		15,771			21,193			19,020			17			578		117
Settlement loss		—			1,835			3,534			—			—		—
Net periodic benefit cost	$	18,124		$	30,747		$	33,597		$	1,461		$	2,245	$	1,607
Other changes in plan assets and benefit obligations recognized in other comprehensive income:
Net actuarial loss (gain)	$	48,502		$	(95,744	)	$	27,144		$	(2,205	)	$	3,470	$	4,755
Prior service cost (credit)		20			—			(11,789	)		—			—		—
Amortization of prior service credit		1,037			1,057			501			—			—		—
Total recognized in other comprehensive income (a)	$	49,559		$	(94,687	)	$	15,856		$	(2,205	)	$	3,470	$	4,755
Total recognized in net periodic benefit cost and other comprehensive income	$	67,683		$	(63,940	)	$	49,453		$	(744	)	$	5,715	$	6,362

(a) Amounts exclude related tax (benefit) expense of $(17.8) million, $32.5 million, and $(2.3) million, during 2014, 2013, and 2012, respectively, which are also included in other comprehensive income.

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
	2014			2013			2012			2014			2013		2012
	(In thousands)
Net periodic benefit cost:
Service cost	$	7,515		$	12,982		$	13,285		$	67		$	82	$	79
Interest cost		27,708			25,580			29,530			1,377			1,585		1,411
Expected return on plan assets		(31,833	)		(29,786	)		(31,270	)		—			—		—
Amortization of prior service credit		(1,037	)		(1,057	)		(502	)		—			—		—
Recognized actuarial loss		15,771			21,193			19,020			17			578		117
Settlement loss		—			1,835			3,534			—			—		—
Net periodic benefit cost	$	18,124		$	30,747		$	33,597		$	1,461		$	2,245	$	1,607
Other changes in plan assets and benefit obligations recognized in other comprehensive income:
Net actuarial loss (gain)	$	48,502		$	(95,744	)	$	27,144		$	(2,205	)	$	3,470	$	4,755
Prior service cost (credit)		20			—			(11,789	)		—			—		—
Amortization of prior service credit		1,037			1,057			501			—			—		—
Total recognized in other comprehensive income (a)	$	49,559		$	(94,687	)	$	15,856		$	(2,205	)	$	3,470	$	4,755
Total recognized in net periodic benefit cost and other comprehensive income	$	67,683		$	(63,940	)	$	49,453		$	(744	)	$	5,715	$	6,362

(a) Amounts exclude related tax (benefit) expense of $(17.8) million, $32.5 million, and $(2.3) million, during 2014, 2013, and 2012, 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
	2014			2013			2012
Defined benefit pension plans:
Discount rate		4.7	%		4.0	%		4.5	%
Weighted average rate of future compensation increases		3.8	%		3.8	%		3.8	%
Long-term rate of return on plan assets		8.0	%		8.0	%		8.0	%
Postretirement benefit plans:
Discount rate		4.7	%		4.0	%		4.5	%
Annual increase in Medicare Part B premium		6.0	%		6.0	%		6.0	%
Health care cost trend rate:
Pre-65		8.5	%		8.5	%		7.5	%
Post-65		7.5	%		7.5	%		7.5	%
Ultimate cost trend rate:
Pre-65		6.1	%		6.1	%		5.0	%
Post-65		5.4	%		5.4	%		5.0	%
Year that the rate reaches the ultimate cost trend rate:
Pre-65		2030			2030			2017
Post-65		2030			2030			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 Pension Plans						Postretirement Benefit Plans
	2014			2013			2014			2013
	(In thousands)
Change in Benefit Obligation:
Benefit obligation, beginning of year	$	616,938		$	669,351		$	37,914		$	35,433
Service cost		7,515			12,982			67			82
Interest cost		27,708			25,580			1,377			1,585
Impact of currency exchange rate changes		(10,673	)		(2,206	)		—			—
Actuarial loss (gain)		75,839			(57,418	)		(2,188	)		4,048
Benefits paid		(39,686	)		(31,351	)		(2,768	)		(3,234	)
Benefit obligation, end of year	$	677,641		$	616,938		$	34,402		$	37,914
Change in Plan Assets:
Plan assets at fair value, beginning of year	$	456,445		$	406,163		$	—		$	—
Actual return on plan assets		43,804			47,529			—			—
Employer contributions		21,596			32,078			2,768			3,234
Impact of currency exchange rate changes		(6,219	)		2,026			—			—
Benefits paid		(39,686	)		(31,351	)		(2,768	)		(3,234	)
Plan assets at fair value, end of year	$	475,940		$	456,445		$	—		$	—
Net Amount Recognized in Consolidated Balance Sheets:
Funded status, end of year	$	(201,701	)	$	(160,493	)	$	(34,402	)	$	(37,914	)
Current accrued benefit liability		(2,540	)		(2,661	)		(3,600	)		(2,700	)
Noncurrent accrued benefit liability		(199,161	)		(157,832	)		(30,802	)		(35,214	)
Total accrued benefit liability	$	(201,701	)	$	(160,493	)	$	(34,402	)	$	(37,914	)
Amounts Recognized in Accumulated Other Comprehensive Loss (a):
Net actuarial loss	$	253,593		$	205,091		$	4,914		$	7,119
Prior service (credit)		(9,036	)		(10,093	)		—			—
	$	244,557		$	194,998		$	4,914		$	7,119

(a) Amounts exclude related tax benefits of $88.0 million and $70.2 million for December 31, 2014 and 2013, 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,
	2014			2013
Defined benefit pension plans:
Discount rate		3.8	%		4.7	%
Weighted average rate of future compensation increases		3.8	%		3.8	%
Postretirement benefit plans:
Discount rate		3.8	%		4.7	%
Annual increase in Medicare Part B premium		6.0	%		6.0	%
Health care cost trend rate:
Pre-65		7.5	%		8.5	%
Post-65		8.8	%		7.5	%
Ultimate cost trend rate:
Pre-65		4.5	%		6.1	%
Post-65		4.5	%		5.4	%
Year that the rate reaches the ultimate cost trend rate:
Pre-65		2023			2030
Post-65		2024			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 Pension Plans		Postretirement Benefit Plans
	(In thousands)
2015	$	31,082	$	3,600
2016		40,340		3,400
2017		41,846		3,400
2018		43,161		3,300
2019		41,119		3,200
2020 – 2024		186,866		14,100

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, 2014
	Level 1		Level 2		Level 3		Total
	(In thousands)
Collective trust funds:
US equity securities	$	—	$	174,027	$	—	$	174,027
International equity securities		—		166,432		—		166,432
International fixed income		—		47,260		—		47,260
US government and US government agency securities		—		36,531		—		36,531
US corporate debt instruments		—		24,628		—		24,628
International corporate debt instruments		—		4,700		—		4,700
Mutual funds		561		15,000		—		15,561
Other		—		6,801		—		6,801
Total	$	561	$	475,379	$	—	$	475,940

	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