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Derivative Instruments
9 Months Ended
Sep. 30, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Instruments Derivative InstrumentsMattel seeks to mitigate its exposure to foreign currency transaction risk by monitoring its foreign currency transaction exposure for the year and partially hedging such exposure using foreign currency forward exchange contracts. Mattel uses foreign currency forward exchange contracts as cash flow hedges primarily to hedge its purchases and sales of inventory denominated in foreign currencies. These contracts have maturity dates of up to 24 months. These derivative instruments have been designated as effective cash flow hedges, whereby the unsettled hedges are reported in Mattel's consolidated balance sheets at fair value, with changes in the fair value of the hedges reflected in other comprehensive income ("OCI"). Realized gains and losses for these contracts are recorded in the consolidated statements of operations in the period in which the inventory is sold to customers. Mattel uses foreign currency forward exchange contracts to hedge intercompany loans and advances denominated in foreign currencies. Due to the short-term nature of the contracts involved, Mattel does not use hedge accounting for these contracts, and as such, changes in fair value are recorded in the period of change in the consolidated statements of operations. Mattel utilizes derivative contracts to hedge certain purchases of commodities, which were not material. As of September 30, 2023, September 30, 2022, and December 31, 2022, Mattel held foreign currency forward exchange contracts and other commodity derivative instruments, with notional amounts of approximately $636 million, $771 million, and $674 million, respectively.
The following tables present Mattel's derivative assets and liabilities:
 Derivative Assets
 Balance Sheet ClassificationFair Value
September 30,
2023
September 30,
2022
December 31,
2022
(In thousands)
Derivatives Designated as Hedging Instruments:
Foreign currency forward exchange and other contractsPrepaid expenses and other current assets$13,308 $41,832 $14,899 
Foreign currency forward exchange and other contractsOther noncurrent assets747 8,320 1,501 
Total Derivatives Designated as Hedging Instruments$14,055 $50,152 $16,400 
Derivatives Not Designated as Hedging Instruments:
Foreign currency forward exchange and other contractsPrepaid expenses and other current assets$519 $3,424 $1,163 
Total Derivatives Not Designated as Hedging Instruments$519 $3,424 $1,163 
$14,574 $53,576 $17,563 
 Derivative Liabilities
 Balance Sheet ClassificationFair Value
 September 30,
2023
September 30,
2022
December 31,
2022
(In thousands)
Derivatives Designated as Hedging Instruments:
Foreign currency forward exchange and other contractsAccrued liabilities$1,997 $1,981 $3,647 
Foreign currency forward exchange and other contractsOther noncurrent liabilities14 194 807 
Total Derivatives Designated as Hedging Instruments$2,011 $2,175 $4,454 
Derivatives Not Designated as Hedging Instruments:
Foreign currency forward exchange and other contractsAccrued liabilities$323 $3,609 $6,261 
Foreign currency forward exchange and other contractsOther noncurrent liabilities— 44 39 
Total Derivatives Not Designated as Hedging Instruments$323 $3,653 $6,300 
$2,334 $5,828 $10,754 
The following tables present the classification and amount of gains and losses, net of tax, from derivatives reported in the consolidated statements of operations:
Derivatives Designated as Hedging Instruments
For the Three Months Ended
 September 30,
2023
September 30,
2022
Statements of
Operations
Classification
 (In thousands)
Foreign Currency Forward Exchange and Other Contracts:
Amount of gains recognized in OCI$7,521 $24,715 
Amount of gains reclassified from accumulated OCI to the consolidated statements of operations5,801 11,312 Cost of sales
Derivatives Designated as Hedging Instruments
For the Nine Months Ended
September 30,
2023
September 30,
2022
Statements of
Operations
Classification
(In thousands)
Foreign Currency Forward Exchange and Other Contracts:
Amount of (losses) gains recognized in OCI$(1,729)$58,604 
Amount of gains reclassified from accumulated OCI to consolidated statements of operations14,062 20,667 Cost of sales
The net gains reclassified from accumulated other comprehensive loss to the consolidated statements of operations during the three and nine months ended September 30, 2023 and 2022, respectively, were offset by changes in cash flows associated with the underlying hedged transactions.
 Derivatives Not Designated as Hedging Instruments
For the Three Months Ended
September 30,
2023
September 30,
2022
Statements of
Operations
Classification
 (In thousands)
Amount of Net Gains (Losses) Recognized in the Statements of Operations:
Foreign currency forward exchange and other contracts$6,805 $(2,279)Other non-operating (income) expense, net
Derivatives Not Designated as Hedging Instruments
For the Nine Months Ended
September 30,
2023
September 30,
2022
Statements of
Operations
Classification
(In thousands)
Amount of Net Gains Recognized in the Statements of Operations:
Foreign currency forward exchange and other contracts$25,083 $843 Other non-operating (income) expense, net
The net gains and losses recognized in the consolidated statements of operations during the three and nine months ended September 30, 2023 and September 30, 2022, respectively, were offset by foreign currency transaction gains and losses on the related derivative balances.