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, 2018
	Derivative Instruments			Available-for-sale security			Defined Benefit Pension Plans			Currency Translation Adjustments			Total
	(In thousands)
Accumulated Other Comprehensive Income (Loss), Net of Tax, as of June 30, 2018	$	452		$	(5,588	)	$	(140,528	)	$	(678,414	)	$	(824,078	)
Other comprehensive income (loss) before reclassifications	3,215			424			219			(17,132		)	(13,274		)
Amounts reclassified from accumulated other comprehensive income (loss)	787			—			1,543			—			2,330
Net increase (decrease) in other comprehensive income (loss)	4,002			424			1,762			(17,132		)	(10,944		)
Accumulated Other Comprehensive Income (Loss), Net of Tax, as of September 30, 2018	$	4,454		$	(5,164	)	$	(138,766	)	$	(695,546	)	$	(835,022	)


	For the Nine Months Ended September 30, 2018
	Derivative Instruments			Available-for-sale security			Defined Benefit Pension Plans			Currency Translation Adjustments			Total
	(In thousands)
Accumulated Other Comprehensive Loss, Net of Tax, as of December 31, 2017	$	(21,098	)	$	(2,799	)	$	(143,213	)	$	(614,676	)	$	(781,786	)
Other comprehensive income (loss) before reclassifications	15,548			(2,365		)	(2,888		)	(80,870		)	(70,575		)
Amounts reclassified from accumulated other comprehensive loss	10,004			—			7,335			—			17,339
Net increase (decrease) in other comprehensive income (loss)	25,552			(2,365		)	4,447			(80,870		)	(53,236		)
Accumulated Other Comprehensive Income (Loss), Net of Tax, as of September 30, 2018	$	4,454		$	(5,164	)	$	(138,766	)	$	(695,546	)	$	(835,022	)



	For the Three Months Ended September 30, 2017
	Derivative Instruments			Available-for-sale security			Defined Benefit Pension Plans			Currency Translation Adjustments			Total
	(In thousands)
Accumulated Other Comprehensive Loss, Net of Tax, as of June 30, 2017	$	(25,114	)	$	(588	)	$	(155,625	)	$	(700,607	)	$	(881,934	)
Other comprehensive (loss) income before reclassifications	(24,009		)	(3,848		)	(103		)	36,912			8,952
Amounts reclassified from accumulated other comprehensive loss	9,241			—			1,209			—			10,450
Net (decrease) increase in other comprehensive (loss) income	(14,768		)	(3,848		)	1,106			36,912			19,402
Accumulated Other Comprehensive Loss, Net of Tax, as of September 30, 2017	$	(39,882	)	$	(4,436	)	$	(154,519	)	$	(663,695	)	$	(862,532	)



	For the Nine Months Ended September 30, 2017
	Derivative Instruments			Available-for-sale security			Defined Benefit Pension Plans			Currency Translation Adjustments			Total
	(In thousands)
Accumulated Other Comprehensive Income (Loss), Net of Tax, as of December 31, 2016	$	17,469		$	3,149		$	(157,704	)	$	(805,943	)	$	(943,029	)
Other comprehensive (loss) income before reclassifications	(63,999		)	(7,585		)	(303		)	142,248			70,361
Amounts reclassified from accumulated other comprehensive income (loss)	6,648			—			3,488			—			10,136
Net (decrease) increase in other comprehensive (loss) income	(57,351		)	(7,585		)	3,185			142,248			80,497
Accumulated Other Comprehensive Loss, Net of Tax, as of September 30, 2017	$	(39,882	)	$	(4,436	)	$	(154,519	)	$	(663,695	)	$	(862,532	)

The following tables present 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, 2018			September 30, 2017			Statements of Operations Classification
	(In thousands)
Derivative Instruments
Loss on foreign currency forward exchange contracts	$	(910	)	$	(9,124	)	Cost of sales
Tax effect of net loss	123			(117		)	Provision for income taxes
	$	(787	)	$	(9,241	)	Net income (loss)
Defined Benefit Pension Plans
Amortization of prior service credit (cost) (a)	$	502		$	(8	)	Other non-operating expense, net
Recognized actuarial loss (a)	(2,045		)	(1,860		)	Other non-operating expense, net
	(1,543		)	(1,868		)
Tax effect of net loss	—			659			Provision for income taxes
	$	(1,543	)	$	(1,209	)	Net income (loss)



	For the Nine Months Ended
	September 30, 2018			September 30, 2017			Statements of Operations Classification
	(In thousands)
Derivative Instruments
Loss on foreign currency forward exchange contracts	$	(10,060	)	$	(6,658	)	Cost of sales
Tax effect of net loss	56			10			Provision for income taxes
	$	(10,004	)	$	(6,648	)	Net income (loss)
Defined Benefit Pension Plans
Amortization of prior service credit (cost) (a)	$	1,505		$	(23	)	Other non-operating expense, net
Recognized actuarial loss (a)	(6,408		)	(5,576		)	Other non-operating expense, net
Settlement loss	(2,443		)	—			Other non-operating expense, net
	(7,346		)	(5,599		)
Tax effect of net loss	11			2,111			Provision for income taxes
	$	(7,335	)	$	(3,488	)	Net income (loss)

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(a)	The amortization of prior service credit (cost) and recognized actuarial loss are included in the computation of net periodic benefit cost. Refer to "Note 16 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 U.S. dollar. The translation of its net investments in subsidiaries with non-U.S. 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-U.S. dollar functional currencies are translated into U.S. 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 $80.9 million for the nine months ended September 30, 2018, primarily due to the weakening of the Euro, Brazilian real, Russian ruble, British pound sterling, and Turkish lira against the U.S. dollar. Currency translation adjustments resulted in a net gain of $142.2 million for the nine months ended September 30, 2017, primarily due to the strengthening of the Euro, British pound sterling, and Mexican peso against the U.S. dollar.