Accumulated Other Comprehensive Income (Loss)

9 Months Ended

Sep. 30, 2021

Accumulated Other Comprehensive Income (Loss)

The following tables present changes in the accumulated balances for each component of other comprehensive income (loss), including other comprehensive income (loss) and reclassifications out of accumulated other comprehensive income (loss) for each period:


	For the Three Months Ended September 30, 2021
	Derivative Instruments		Available-for-Sale Security		Employee Benefit Plans		Currency Translation Adjustments		Total
	(In thousands)
Accumulated Other Comprehensive Loss, Net of Tax, as of June 30, 2021	$	(6,709)	$	(4,290)	$	(182,285)	$	(742,032)	$	(935,316)
Other comprehensive income (loss) before reclassifications	13,900		(1,320)		56		(29,316)		(16,680)
Amounts reclassified from accumulated other comprehensive loss	(2,223)		—		3,568		—		1,345
Net increase (decrease) in other comprehensive income (loss)	11,677		(1,320)		3,624		(29,316)		(15,335)
Accumulated Other Comprehensive Income (Loss), Net of Tax, as of September 30, 2021	$	4,968	$	(5,610)	$	(178,661)	$	(771,348)	$	(950,651)


	For the Nine Months Ended September 30, 2021
	Derivative Instruments		Available-for-Sale Security		Employee Benefit Plans		Currency Translation Adjustments		Total
	(In thousands)
Accumulated Other Comprehensive Loss, Net of Tax, as of December 31, 2020	$	(15,369)	$	(7,522)	$	(186,854)	$	(734,831)	$	(944,576)
Other comprehensive income (loss) before reclassifications	23,230		1,912		(203)		(36,517)		(11,578)
Amounts reclassified from accumulated other comprehensive loss	(2,893)		—		8,396		—		5,503
Net increase (decrease) in other comprehensive income (loss)	20,337		1,912		8,193		(36,517)		(6,075)
Accumulated Other Comprehensive Income (Loss), Net of Tax, as of September 30, 2021	$	4,968	$	(5,610)	$	(178,661)	$	(771,348)	$	(950,651)


	For the Three Months Ended September 30, 2020
	Derivative Instruments		Available-for-Sale Security		Employee Benefit Plans		Currency Translation Adjustments		Total
	(In thousands)
Accumulated Other Comprehensive Income (Loss), Net of Tax, as of June 30, 2020	$	18,026	$	(8,145)	$	(166,279)	$	(821,199)	$	(977,597)
Other comprehensive (loss) income before reclassifications	(20,578)		178		(432)		13,032		(7,800)
Amounts reclassified from accumulated other comprehensive income (loss)	(2,200)		—		1,723		—		(477)
Net (decrease) increase in other comprehensive (loss) income	(22,778)		178		1,291		13,032		(8,277)
Accumulated Other Comprehensive Loss, Net of Tax, as of September 30, 2020	$	(4,752)	$	(7,967)	$	(164,988)	$	(808,167)	$	(985,874)


	For the Nine Months Ended September 30, 2020
	Derivative Instruments		Available-for-Sale Security		Employee Benefit Plans		Currency Translation Adjustments		Total
	(In thousands)
Accumulated Other Comprehensive Income (Loss), Net of Tax, as of December 31, 2019	$	11,041	$	(8,260)	$	(169,857)	$	(702,408)	$	(869,484)
Other comprehensive (loss) income before reclassifications	(4,556)		293		67		(105,759)		(109,955)
Amounts reclassified from accumulated other comprehensive income (loss)	(11,237)		—		4,802		—		(6,435)
Net (decrease) increase in other comprehensive (loss) income	(15,793)		293		4,869		(105,759)		(116,390)
Accumulated Other Comprehensive Loss, Net of Tax, as of September 30, 2020	$	(4,752)	$	(7,967)	$	(164,988)	$	(808,167)	$	(985,874)

The following table presents 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, 2021		September 30, 2020		Statements of Operations Classification
	(In thousands)
Derivative Instruments
Gain on foreign currency forward exchange and other contracts	$	2,322	$	2,143	Cost of sales
Tax effect	(99)		57		(Benefit) Provision for income taxes
	$	2,223	$	2,200	Net Income (loss)
Employee Benefit Plans
Amortization of prior service credit (a)	$	455	$	472	Other non-operating expense, net
Recognized actuarial loss (a)	(2,830)		(2,336)		Other non-operating expense, net
Settlement loss (a)	(3,375)		—		Other non-operating expense, net
	(5,750)		(1,864)
Tax effect	2,182		141		(Benefit) Provision for income taxes
	$	(3,568)	$	(1,723)	Net Income (loss)


	For the Nine Months Ended
	September 30, 2021		September 30, 2020		Statements of Operations Classification
	(In thousands)
Derivative Instruments
Gain on foreign currency forward exchange and other contracts	$	3,191	$	11,086	Cost of sales
Tax effect	(298)		151		(Benefit) Provision for income taxes
	$	2,893	$	11,237	Net Income (loss)
Employee Benefit Plans
Amortization of prior service credit (a)	$	1,253	$	1,405	Other non-operating expense, net
Recognized actuarial loss (a)	(8,394)		(7,014)		Other non-operating expense, net
Settlement loss (a)	(3,375)		—		Other non-operating expense, net
	(10,516)		(5,609)
Tax effect	2,120		807		(Benefit) Provision for income taxes
	$	(8,396)	$	(4,802)	Net Income (loss)

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(a)The amortization of prior service credit, recognized actuarial loss, and settlement loss are included in the computation of net periodic benefit cost. Refer to "Note 16 to the Consolidated Financial Statements—Employee Benefit Plans" 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 foreign 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 and expense 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 loss within stockholders' equity. Currency translation adjustments resulted in a net loss of $36.5 million for the nine months ended September 30, 2021, primarily due to the weakening of the Mexican peso, Chilean peso, Turkish lira, British pound sterling, and the Euro against the U.S. dollar. Currency translation adjustments resulted in a net loss of $105.8 million for the nine months ended September 30, 2020, primarily due to the weakening of the Brazilian real, Mexican peso, Russian ruble, and the British pound sterling against the U.S. dollar.