Goodwill

Goodwill is allocated to various reporting units, which are at the operating segment level, for purposes of evaluating whether goodwill is impaired. Mattel’s reporting units are: (i) North America, (ii) International, and (iii) American Girl. Mattel tests its goodwill for impairment annually in the third quarter and whenever events or changes in circumstances indicate that the carrying value of a reporting unit may exceed its fair value.

In the third quarter of 2018, Mattel performed its annual impairment test and determined that goodwill was not impaired. The change in the carrying amount of goodwill by operating segment for the nine months ended September 30, 2018 is shown below. Brand-specific goodwill held by foreign subsidiaries is allocated to the North America and American Girl operating segments selling those brands, thereby causing a foreign currency translation impact for these operating segments. In the first quarter of 2018, Mattel sold certain assets related to its Corolle business and wrote off approximately $4 million of goodwill.



	December 31, 2017		Dispositions			Currency Exchange Rate Impact			September 30, 2018
	(In thousands)
North America	$	733,034	$	—		$	(1,159	)	$	731,875
International	452,152		—			(2,715		)	449,437
American Girl	211,483		(4,018		)	106			207,571
	$	1,396,669	$	(4,018	)	$	(3,768	)	$	1,388,883