11.

Accumulated Other Comprehensive Income (Loss)

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


	For the Three Months Ended September 30, 2015
	Derivative Instruments			Defined Benefit Pension Plans			Currency Translation Adjustments			Total
	(In thousands)
Accumulated Other Comprehensive Income (Loss), Net of Tax, as of June 30, 2015	$	30,970		$	(161,920	)	$	(579,923	)	$	(710,873	)
Other comprehensive income (loss) before reclassifications		8,866			(103	)		(90,486	)		(81,723	)
Amounts reclassified from accumulated other comprehensive income (loss)		(19,152	)		6,827			—			(12,325	)

Net (decrease) increase in other comprehensive income (loss)		(10,286	)		6,724			(90,486	)		(94,048	)

Accumulated Other Comprehensive Income (Loss), Net of Tax, as of September 30, 2015	$	20,684		$	(155,196	)	$	(670,409	)	$	(804,921	)


	For the Nine Months Ended September 30, 2015
	Derivative Instruments			Defined Benefit Pension Plans			Currency Translation Adjustments			Total
	(In thousands)
Accumulated Other Comprehensive Income (Loss), Net of Tax, as of December 31, 2014	$	30,025		$	(161,507	)	$	(490,607	)	$	(622,089	)
Other comprehensive income (loss) before reclassifications		32,367			(1,053	)		(179,802	)		(148,488	)
Amounts reclassified from accumulated other comprehensive income (loss)		(41,708	)		7,364			—			(34,344	)

Net (decrease) increase in other comprehensive income (loss)		(9,341	)		6,311			(179,802	)		(182,832	)

Accumulated Other Comprehensive Income (Loss), Net of Tax, as of September 30, 2015	$	20,684		$	(155,196	)	$	(670,409	)	$	(804,921	)

	For the Three Months Ended September 30, 2014
	Derivative Instruments			Defined Benefit Pension Plans			Currency Translation Adjustments			Total
	(In thousands)
Accumulated Other Comprehensive Income (Loss), Net of Tax, as of June 30, 2014	$	(9,500	)	$	(127,201	)	$	(263,563	)	$	(400,264	)
Other comprehensive income (loss) before reclassifications		19,745			139			(117,713	)		(97,829	)
Amounts reclassified from accumulated other comprehensive income (loss)		3,328			2,078			—			5,406

Net increase (decrease) in other comprehensive income (loss)		23,073			2,217			(117,713	)		(92,423	)

Accumulated Other Comprehensive Income (Loss), Net of Tax, as of September 30, 2014	$	13,573		$	(124,984	)	$	(381,276	)	$	(492,687	)


	For the Nine Months Ended September 30, 2014
	Derivative Instruments			Defined Benefit Pension Plans			Currency Translation Adjustments			Total
	(In thousands)
Accumulated Other Comprehensive Income (Loss), Net of Tax, as of December 31, 2013	$	(10,789	)	$	(131,946	)	$	(300,941	)	$	(443,676	)
Other comprehensive income (loss) before reclassifications		15,437			511			(80,335	)		(64,387	)
Amounts reclassified from accumulated other comprehensive income (loss)		8,925			6,451			—			15,376

Net increase (decrease) in other comprehensive income (loss)		24,362			6,962			(80,335	)		(49,011	)

Accumulated Other Comprehensive Income (Loss), Net of Tax, as of September 30, 2014	$	13,573		$	(124,984	)	$	(381,276	)	$	(492,687	)

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


	For the Three Months Ended September 30, 2015			For the Three Months Ended September 30, 2014			Statements of Operations Classification
	(In thousands)
Derivative Instruments
Gain (loss) on foreign currency forward exchange contracts	$	18,909		$	(3,671	)	Cost of sales
		243			343		Provision for income taxes

	$	19,152		$	(3,328	)	Net income

Defined Benefit Pension Plans
Amortization of prior service (cost) credit	$	(6	)	$	264		(a)
Recognized actuarial loss		(3,172	)		(3,462	)	(a)
Settlement loss		(5,233	)		—		Other selling and administrative expenses

		(8,411	)		(3,198	)
		1,584			1,120		Provision for income taxes

	$	(6,827	)	$	(2,078	)	Net income

	For the Nine Months Ended September 30, 2015			For the Nine Months Ended September 30, 2014			Statements of Operations Classification
	(In thousands)
Derivative Instruments
Gain (loss) on foreign currency forward exchange contracts	$	41,290		$	(9,248	)	Cost of sales
		418			323		Provision for income taxes

	$	41,708		$	(8,925	)	Net income

Defined Benefit Pension Plans
Amortization of prior service credit	$	522		$	792		(a)
Recognized actuarial loss		(13,030	)		(10,788	)	(a)
Curtailment gain		8,639			—		Other selling and administrative expenses
Settlement loss		(5,233	)		—		Other selling and administrative expenses

		(9,102	)		(9,996	)
		1,738			3,545		Provision for income taxes

	$	(7,364	)	$	(6,451	)	Net income

(a)

The amortization of prior service (cost) credit and recognized actuarial loss are included in the computation of net periodic benefit cost. Refer to “Note 15 to the Consolidated Financial Statements—Employee Benefit Plans” of this Quarterly Report on Form 10-Q for additional information regarding Mattel’s net periodic benefit cost.

Currency Translation Adjustments

Mattel’s reporting currency is the 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 fiscal period-end exchange rates. Income, expense, and cash flow items are translated at weighted average exchange rates prevailing during the fiscal period. The resulting currency translation adjustments are recorded as a component of accumulated other comprehensive income (loss) within stockholders’ equity. Currency translation adjustments resulted in a net loss of $179.8 million for the nine months ended September 30, 2015, primarily due to the weakening of the Euro, Mexican peso, and Brazilian real against the US dollar. Currency translation adjustments resulted in a net loss of $80.3 million for the nine months ended September 30, 2014, primarily due to the weakening of the Euro, Mexican peso, and Brazilian real against the US dollar.