On February 7, 2024, Mattel announced the Optimizing for Profitable Growth program (the "OPG program"), a multi-year cost savings program that follows the Optimizing for Growth program (the "OFG program"), which concluded in the fourth quarter of 2023. The OPG program is designed to achieve further efficiency and cost savings opportunities, primarily within Mattel's global supply chain, including its manufacturing footprint.

In connection with the OPG 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, 2024
	(In thousands)
Cost of sales (a)	$	2,213
Other selling and administrative expenses (b)	7,518
	$	9,731

(a)Severance and other restructuring charges recorded within cost of sales in the consolidated statements of operations are included in segment operating 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 OPG program:


	Liability at December 31, 2023		Charges		Payments/Utilization		Liability at March 31, 2024
	(In thousands)
Severance	$	25,096	$	9,229	$	(1,536)	$	32,789
Other restructuring charges (a)	—		502		(502)		—
	$	25,096	$	9,731	$	(2,038)	$	32,789

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

As of March 31, 2024, in connection with the OPG program, Mattel had recorded cumulative severance and other restructuring charges of approximately $35 million, which included approximately $0.4 million of non-cash charges. Total expected cash expenditures are approximately $130 to $165 million and total non-cash charges are expected to be up to $5 million.

As of December 31, 2023, Mattel concluded the OFG program, which was a multi-year cost savings program that had integrated and expanded upon the previous Capital Light program. In the first three months of 2023, Mattel recorded severance expense of $20.7 million within other selling and administrative expenses in the consolidated statement of operations related to the OFG program.

Additionally, during the first three months of 2023, Mattel executed actions to further streamline its organizational structure that were not included in the OFG program, and recorded severance costs of $3.2 million in connection with these actions within other selling and administrative expenses in the consolidated statement of operations.