Goodwill and Intangible Assets, Net

12 Months Ended

Dec. 31, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill

Mattel's reporting units are at the same level as its operating segments. The change in the carrying amount of goodwill by reporting unit for 2022 and 2021 is shown below. Brand-specific goodwill held by foreign subsidiaries is allocated to the North America reporting unit selling those brands, thereby causing a foreign currency translation impact. During the first quarter of 2021, Mattel sold its arts, crafts, and stationery business, resulting in a reduction of goodwill of approximately $2 million.


	North America		International		American Girl		Total
	(In thousands)
Balance at December 31, 2020	$	733,401	$	452,862	$	207,571	$	1,393,834
Dispositions	$	(1,290)	(1,056)		—		(2,346)
Currency exchange rate impact	(322)		(959)		—		(1,281)
Balance at December 31, 2021	731,789		450,847		207,571		1,390,207

Currency exchange rate impact	204		(11,860)		—		(11,656)
Balance at December 31, 2022	$	731,993	$	438,987	$	207,571	$	1,378,551

In the third quarter of 2022, Mattel performed a qualitative assessment to determine whether it was more likely than not that the carrying amount of Mattel's reporting units exceeded their fair value. As a result of Mattel's qualitative assessment, it was determined that goodwill was not impaired. There were no events or changes in circumstances subsequent to the third quarter assessment that indicate that the carrying amount of a reporting unit may exceed its fair value as of December 31, 2022.

Intangible Assets, Net

Identifiable intangibles were $425.1 million, net of accumulated amortization of $364.9 million, and $476.9 million, net of accumulated amortization of $327.0 million, as of December 31, 2022 and 2021, respectively. The estimated future amortization expense for the next five years is as follows:


	Amortization Expense
	(In thousands)
2023	$	38,134
2024	32,168
2025	32,137
2026	28,736
2027	28,271

Mattel tests its amortizable intangible assets for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. Mattel's amortizable intangible assets primarily consist of trademarks and trade names. During 2022, Mattel's amortizable intangible assets were not impaired. During 2021, Mattel discontinued the use of an intangible asset, which resulted in an asset impairment charge of $2.0 million. During 2020, Mattel's amortizable intangible assets were not impaired.