Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2015

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:

	September 30, 2015
	Level 1		Level 2		Level 3		Total
	(In thousands)
Assets:
Foreign currency forward exchange contracts (a)	$	—	$	22,992	$	—	$	22,992
Cross currency swap contract (a)		—		5,288		—		5,288
Total assets	$	—	$	28,280	$	—	$	28,280
Liabilities:
Foreign currency forward exchange contracts (a)	$	—	$	8,261	$	—	$	8,261
	September 30, 2014
	Level 1		Level 2		Level 3		Total
	(In thousands)
Assets:
Foreign currency forward exchange contracts (a)	$	—	$	33,902	$	—	$	33,902
Auction rate security (b)		—		—		31,142		31,142
Total assets	$	—	$	33,902	$	31,142	$	65,044
Liabilities:
Foreign currency forward exchange contracts (a)	$	—	$	12,596	$	—	$	12,596
	December 31, 2014
	Level 1		Level 2		Level 3		Total
	(In thousands)
Assets:
Foreign currency forward exchange contracts (a)	$	—	$	33,743	$	—	$	33,743
Auction rate security (b)		—		—		30,960		30,960
Total assets	$	—	$	33,743	$	30,960	$	64,703
Liabilities:
Foreign currency forward exchange contracts (a)	$	—	$	13,398	$	—	$	13,398

(a) The fair values of the foreign currency forward exchange contracts and the cross currency swap contract are based on dealer quotes of market forward rates and reflect 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 was 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 Asset Measured Using Level 3 Inputs

The following table presents information about Mattel’s investments measured and reported at fair value on a recurring basis using significant Level 3 inputs:

	Level 3
	(In thousands)
Balance at December 31, 2014	$	30,960
Proceeds from sale		(32,250	)
Gain on sale		1,290
Balance at September 30, 2015	$	—