Restructuring Charges

3 Months Ended

Mar. 31, 2023

Restructuring and Related Activities [Abstract]

Optimizing for Growth (formerly Capital Light)

Mattel's Optimizing for Growth program is a multi-year cost savings program that integrates and expands upon the previously announced Capital Light program (the "Program"). In February 2023, the Program was expanded to include additional initiatives, including actions to further streamline Mattel's organizational structure.

In connection with the Program, Mattel recorded severance and other restructuring costs in the following cost and expense categories within operating income in the consolidated statements of operations:


	For the Three Months Ended
	March 31, 2023		March 31, 2022
	(In thousands)
Cost of sales (a)	$	—	$	2,669
Other selling and administrative expenses (b)	20,700		6,414
	$	20,700	$	9,083

(a)Severance and other restructuring charges recorded within cost of sales in the consolidated statements of operations are included in segment operating (loss) income in "Note 21 to the Consolidated Financial Statements—Segment Information."

(b)Severance and other restructuring charges recorded within other selling and administrative expenses in the consolidated statements of operations are included in corporate and other expense in "Note 21 to the Consolidated Financial Statements—Segment Information."

The following tables summarize Mattel's severance and other restructuring charges activity within operating income related to the Program:


	Liability at December 31, 2022		Charges (a)		Payments/Utilization		Liability at March 31, 2023
	(In thousands)
Severance	$	9,355	$	17,250	$	(4,871)	$	21,734
Other restructuring charges	3,540		3,450		(5,374)		1,616
	$	12,895	$	20,700	$	(10,245)	$	23,350


	Liability at December 31, 2021		Charges (a)		Payments/Utilization		Liability at March 31, 2022
	(In thousands)
Severance	$	12,411	$	3,518	$	(3,901)	$	12,028
Other restructuring charges	2,834		5,565		(5,178)		3,221
	$	15,245	$	9,083	$	(9,079)	$	15,249

(a)Other restructuring charges consist primarily of expenses associated with the restructuring of commercial and corporate functions and consolidation of manufacturing facilities.

As of March 31, 2023, Mattel had recorded cumulative severance and other restructuring charges related to the Program of approximately $186 million, which included approximately $73 million of non-cash charges, including $45.4 million recognized within non-operating expense, net, during the fourth quarter of 2022 related to the liquidation of Mattel's subsidiary in Argentina. Furthermore, cumulatively, in conjunction with previous actions taken under the Capital Light program, total expected cash expenditures are approximately $195 to $225 million and total expected non-cash charges are approximately $75 million.

Other Cost Savings Actions

During the three months ended March 31, 2023, Mattel executed additional actions to further streamline its organizational structure that were not included in the Program. In connection with these actions, severance costs of $3.2 million were recorded within other selling and administrative expenses in the consolidated statement of operations.