Restructuring Charges

3 Months Ended

Mar. 31, 2019

Restructuring and Related Activities [Abstract]

Restructuring Charges

Restructuring Charges

During the third quarter of 2017, Mattel initiated its Structural Simplification cost savings program and remains on-track to exceed $650 million in run-rate savings exiting 2019.

The major initiatives of the Structural Simplification cost savings program include:

• Reducing manufacturing complexity, including SKU reduction, and implementing process improvement initiatives at owned and co-manufacturing facilities;

• Streamlining the organizational structure and reducing headcount expense to better align with the revenue base; and

• Optimizing advertising spend.

During the three months ended March 31, 2019 and 2018, in connection with the Structural Simplification cost savings program, Mattel recorded severance and other restructuring charges of $8.7 million and $24.9 million, respectively, within other selling and administrative expenses in the consolidated statements of operations, which is included in corporate and other expense in "Note 23 to the Consolidated Financial Statements—Segment Information."

The following table summarizes Mattel's severance and other restructuring costs activity for the three months ended March 31, 2019:

	Liability at December 31, 2018		Charges		Payments/Utilization			Liability at March 31, 2019
	(In thousands)
Severance	$	27,670	$	2,958	$	(12,673	)	$	17,955
Other restructuring costs (a)	13,722		5,773		(7,689		)	11,806
	$	41,392	$	8,731	$	(20,362	)	$	29,761

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(a) Consists primarily of consulting fees.

To date, Mattel has recorded cumulative severance and other restructuring charges of $163.7 million and expects to incur total severance and restructuring charges of approximately $200 million related to the Structural Simplification cost savings program.