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Segment Information
6 Months Ended
Jun. 30, 2017
Segment Reporting [Abstract]  
Segment Information
Segment Information
Mattel, through its subsidiaries, sells a broad variety of toy products which are grouped into four major brand categories:
Mattel Girls & Boys Brands—including Barbie® fashion dolls and accessories (“Barbie”), Monster High®, Ever After High®, Polly Pocket®, and DC Super Hero Girls™ (collectively “Other Girls”), Hot Wheels® and Matchbox® vehicles and play sets (collectively “Wheels”), and CARS®, DC Comics®, WWE® Wrestling, Minecraft®, Max Steel®, BOOMco.®, Toy Story®, and games and puzzles (collectively “Entertainment”).
Fisher-Price Brands—including Fisher-Price®, Little People®, BabyGear™, Laugh & Learn®, and Imaginext® (collectively “Core Fisher-Price”), Thomas & Friends®, Dora the Explorer®, Mickey Mouse® Clubhouse, and Disney Jake and the Never Land Pirates® (collectively “Fisher-Price Friends”), and Power Wheels®.
American Girl Brands—including Truly Me®, Girl of the Year®, BeForever®, Bitty Baby®, and WellieWishers™. American Girl® Brands products are sold directly to consumers via its catalog, website, and proprietary retail stores, as well as sold directly to certain retailers.
Construction and Arts & Crafts Brands—including MEGA BLOKS® and RoseArt®.
Mattel’s operating segments are: (i) North America, which consists of the US and Canada, (ii) International, and (iii) American Girl.  The North America and International segments sell products in the Mattel Girls & Boys Brands, Fisher-Price Brands, and Construction and Arts & Crafts Brands categories, although some are developed and adapted for particular international markets.
Segment Data
The following tables present information about revenues, income, and assets by segment. In the following tables, Mattel does not include sales adjustments such as trade discounts and other allowances in the calculation of segment revenues (referred to as “gross sales” and reconciled to net sales in Part I, Item 2 “Management’s Discussion and Analysis of Financial Condition and Results of Operations–Non-GAAP Financial Measures” of this Quarterly Report on Form 10-Q). Mattel records these adjustments in its financial accounting systems at the time of sale to each customer, but the adjustments are not allocated to brands or individual products. For this reason, Mattel’s chief operating decision maker uses gross sales by segment as one of the metrics to measure segment performance. Such sales adjustments are included in the determination of segment income from operations based on the adjustments recorded in the financial accounting systems. Segment income represents each segment’s operating income, while consolidated operating income represents income from operations before net interest, other non-operating expense/income, net, and income taxes as reported in the consolidated statements of operations. The corporate and other expense category includes costs not allocated to individual segments, including charges related to incentive compensation, share-based payments, and corporate headquarters functions managed on a worldwide basis, and the impact of changes in foreign currency exchange rates on intercompany transactions.
 
For the Three Months Ended
 
For the Six Months Ended
 
June 30,
2017
 
June 30,
2016
 
June 30,
2017
 
June 30,
2016
 
(In thousands)
Revenues by Segment
 
 
 
 
 
 
 
North America
$
507,242

 
$
515,595

 
$
869,560

 
$
1,006,117

International
493,748

 
465,154

 
860,084

 
839,958

American Girl
67,516

 
72,045

 
153,500

 
168,824

Gross sales
1,068,506

 
1,052,794

 
1,883,144

 
2,014,899

Sales adjustments
(94,029
)
 
(95,518
)
 
(173,049
)
 
(188,224
)
Net sales
$
974,477

 
$
957,276

 
$
1,710,095

 
$
1,826,675

 
For the Three Months Ended
 
For the Six Months Ended
 
June 30,
2017
 
June 30,
2016
 
June 30,
2017
 
June 30,
2016
 
(In thousands)
Segment (Loss) Income
 
 
 
 
 
 
 
North America
$
42,723

 
$
64,350

 
$
23,383

 
$
105,499

International
(8,325
)
 
23,079

 
(33,167
)
 
5,717

American Girl
(18,172
)
 
(9,593
)
 
(23,957
)
 
(6,206
)
 
16,226

 
77,836

 
(33,741
)
 
105,010

Corporate and other expense (a)
(64,903
)
 
(89,496
)
 
(141,964
)
 
(165,816
)
Operating loss
(48,677
)
 
(11,660
)
 
(175,705
)
 
(60,806
)
Interest expense
21,881

 
22,624

 
43,911

 
45,144

Interest (income)
(2,296
)
 
(2,713
)
 
(4,762
)
 
(5,073
)
Other non-operating expense (income), net
5,481

 
(1,819
)
 
4,560

 
22,354

Loss before income taxes
$
(73,743
)
 
$
(29,752
)
 
$
(219,414
)
 
$
(123,231
)
__________________________________________ 
(a)
Corporate and other expense includes severance and restructuring expenses of $5.8 million and $8.8 million for the three and six months ended June 30, 2017, respectively, and $17.4 million and $27.2 million for the three and six months ended June 30, 2016, respectively, and share-based compensation expense of $17.9 million and $30.6 million for the three and six months ended June 30, 2017, respectively, and $14.0 million and $26.4 million for the three and six months ended June 30, 2016, respectively.
Segment assets are comprised of accounts receivable and inventories, net of applicable reserves and allowances.
 
June 30,
2017
 
June 30,
2016
 
December 31,
2016
 
(In thousands)
Assets by Segment
 
 
 
 
 
North America
$
750,027

 
$
672,771

 
$
677,203

International
791,822

 
684,910

 
766,584

American Girl
168,114

 
135,833

 
154,924

 
1,709,963

 
1,493,514

 
1,598,711

Corporate and other
143,622

 
192,902

 
130,304

Accounts receivable, net and inventories
$
1,853,585

 
$
1,686,416

 
$
1,729,015


The table below presents worldwide revenues by brand category:
 
For the Three Months Ended
 
For the Six Months Ended
 
June 30,
2017
 
June 30,
2016
 
June 30,
2017
 
June 30,
2016
 
(In thousands)
Worldwide Revenues by Brand Category
 
 
 
 
 
 
 
Mattel Girls & Boys Brands
$
609,925

 
$
553,698

 
$
1,050,989

 
$
1,081,552

Fisher-Price Brands
334,967

 
346,334

 
581,856

 
618,946

American Girl Brands
63,959

 
68,124

 
146,173

 
161,410

Construction and Arts & Crafts Brands
52,976

 
72,282

 
91,477

 
134,197

Other
6,679

 
12,356

 
12,649

 
18,794

Gross sales
1,068,506

 
1,052,794

 
1,883,144

 
2,014,899

Sales adjustments
(94,029
)
 
(95,518
)
 
(173,049
)
 
(188,224
)
Net sales
$
974,477

 
$
957,276

 
$
1,710,095

 
$
1,826,675