Share-Based Payments

6 Months Ended

Jun. 30, 2020

Share-based Payment Arrangement [Abstract]

Mattel has various stock compensation plans, which are more fully described in Part II, Item 8 "Financial Statements and Supplementary Data—Note 8 to the Consolidated Financial Statements—Share-Based Payments" in the 2019 Annual Report on Form 10-K. Under the Mattel, Inc. Amended and Restated 2010 Equity and Long-Term Compensation Plan, Mattel has the ability to grant nonqualified stock options, incentive stock options, stock appreciation rights, restricted stock, RSUs, performance awards, dividend equivalent rights, and shares of common stock to officers, employees, and other persons providing services to Mattel. Stock options are granted with exercise prices at the fair market value of Mattel's common stock on the applicable grant date and expire no later than ten years from the date of grant. Stock options and RSUs generally provide for vesting over a period of three years from the date of grant.

As of June 30, 2020, two long-term incentive programs were in place with the following performance cycles: (i) a January 1, 2018–December 31, 2020 performance cycle and (ii) a January 1, 2019–December 31, 2021 performance cycle.

Compensation expense, included within other selling and administrative expenses in the consolidated statements of operations, related to stock options and RSUs is as follows:


	For the Three Months Ended						For the Six Months Ended
	June 30, 2020		June 30, 2019		June 30, 2020		June 30, 2019
	(In thousands)
Stock option compensation expense	$	2,376	$	2,168	$	5,507	$	4,574
RSU compensation expense (a)	6,762		10,277		17,907		19,736
	$	9,138	$	12,445	$	23,414	$	24,310

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(a)Includes compensation expense associated with Mattel's long-term incentive programs of $0.2 million and $4.0 million for the three and six months ended June 30, 2020, respectively, and $1.3 million and $2.1 million for the three and six months ended June 30, 2019, respectively.

As of June 30, 2020, total unrecognized compensation expense related to unvested share-based payments totaled $50.4 million and is expected to be recognized over a weighted-average period of 1.6 years.

Mattel uses treasury shares purchased under its share repurchase program to satisfy stock option exercises and the vesting of RSUs. No cash was received for stock option exercises during the six months ended June 30, 2020 and 2019.