Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Income Tax Disclosure [Abstract]

Schedule of Components of Pre-Tax Loss

Consolidated pre-tax loss consists of the following:

	For the Year Ended
	December 31, 2019			December 31, 2018			December 31, 2017
	(In thousands)
U.S. operations	$	(330,139	)	$	(344,443	)	$	(269,244	)
Foreign operations	171,851			(72,660		)	(232,001		)
	$	(158,288	)	$	(417,103	)	$	(501,245	)

Schedule of Provision (Benefit) for Current and Deferred Income Taxes

The provision for current and deferred income taxes consists of the following:

	For the Year Ended
	December 31, 2019			December 31, 2018			December 31, 2017
	(In thousands)
Current
Federal	$	5,520		$	3,935		$	(3,153	)
State	2,170			1,340			1,885
Foreign	68,837			95,404			113,315
	76,527			100,679			112,047
Deferred
Federal	(5,610		)	(4,630		)	422,397
State	68			(3,368		)	38,819
Foreign	(15,761		)	23,515			(19,929		)
	(21,303		)	15,517			441,287
Provision for income taxes	$	55,224		$	116,196		$	553,334

Schedule of Deferred Income Tax Assets (Liabilities)

Mattel’s deferred income tax assets (liabilities) are composed of the following:

	December 31, 2019			December 31, 2018
	(In thousands)
Tax credit carryforwards	$	59,640		$	64,895
Research and development expenses	58,340			76,906
Net operating loss carryforwards	234,640			187,741
Allowances and reserves	100,896			94,168
Deferred compensation	67,689			63,641
Postretirement benefits	33,839			24,666
Intangible assets	245,138			419
Other	43,485			48,262
Gross deferred income tax assets	843,667			560,698
Intangible assets	(190,677		)	(196,012		)
Other	(31,024		)	(15,782		)
Gross deferred income tax liabilities	(221,701		)	(211,794		)
Deferred income tax asset valuation allowances	(610,560		)	(365,820		)
Net deferred income tax assets (liabilities)	$	11,406		$	(16,916	)

Net deferred income tax assets (liabilities) are reported in the consolidated balance sheets as follows:

	December 31, 2019			December 31, 2018
	(In thousands)
Other noncurrent assets	$	67,900		$	49,937
Other noncurrent liabilities	(56,494		)	(66,853		)
	$	11,406		$	(16,916	)

Schedule of Expiration of Loss and Tax Credit Carryforwards

Mattel’s loss and tax credit carryforwards expire in the following periods:

	Loss Carryforwards		Tax Credit Carryforwards
	(In thousands)
2020–2024	$	40,890	$	456
Thereafter	187,120		31,809
No expiration date	444,094		20,293
Total	$	672,104	$	52,558

Schedule of Reconciliation of Provision for Income Taxes at US Federal Statutory Rate to Provision in Statements of Operations

Differences between the provision for income taxes at the U.S. federal statutory income tax rate and the provision in the consolidated statements of operations are as follows:

	For the Year Ended
	December 31, 2019			December 31, 2018			December 31, 2017
	(In thousands)
Benefit at U.S. federal statutory rate	$	(33,240	)	$	(87,592	)	$	(175,436	)
Increase resulting from:
U.S. valuation allowance	19,141			64,907			558,976
Foreign earnings taxed at different rates, including foreign losses without benefit	51,612			103,231			266,807
U.S. Tax Act (a)	—			3,709			(107,049		)
State and local taxes, net of U.S. federal (expense) benefit	2,438			(2,028		)	2,254
Adjustments to previously accrued taxes	14,160			6,621			5,159
Change in indefinite reinvestment assertion	(2,700		)	14,566			—
Other (b)	3,813			12,782			2,623
Provision for income taxes	$	55,224		$	116,196		$	553,334

(a) For 2018, U.S. Tax Act expense was netted with utilization of carryover tax attributes and current year generated tax attributes.

(b)

For 2018, Other includes $8.1 million of tax credit expiration.

Schedule of Reconciliation of Unrecognized Tax Benefits

A reconciliation of the reserve for unrecognized tax benefits is as follows:

	For the Year Ended
	December 31, 2019			December 31, 2018			December 31, 2017
	(In thousands)
Unrecognized tax benefits at January 1	$	119,818		$	116,070		$	109,347
Increases for positions taken in current year	3,836			7,548			4,171
Increases for positions taken in a prior year	29,487			25,239			19,318
Decreases for positions taken in a prior year	(10,150		)	(1,813		)	(5,637		)
Decreases for settlements with taxing authorities	(1,982		)	(1,143		)	(2,349		)
Decreases for lapses in the applicable statute of limitations	(3,080		)	(26,083		)	(8,780		)
Unrecognized tax benefits at December 31	$	137,929		$	119,818		$	116,070