v3.22.4
Derivative Instruments
 12 Months Ended
Dec. 31, 2022
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 December 31, 2022 and 2021, Mattel held foreign currency forward exchange contracts and other commodity derivative instruments, with notional amounts of approximately $674 million and $925 million, respectively.
The following tables present Mattel's derivative assets and liabilities:
 Derivative Assets
 Balance Sheet ClassificationFair Value
  December 31, 2022December 31, 2021
  (In thousands)
Derivatives Designated as Hedging Instruments:
Foreign currency forward exchange and other contractsPrepaid expenses and other current assets$14,899 $13,361 
Foreign currency forward exchange and other contractsOther noncurrent assets1,501 1,000 
Total Derivatives Designated as Hedging Instruments$16,400 $14,361 
Derivatives Not Designated as Hedging Instruments:
Foreign currency forward exchange and other contractsPrepaid expenses and other current assets$1,163 $3,714 
Total Derivatives Not Designated as Hedging Instruments$1,163 $3,714 
$17,563 $18,075 
 Derivative Liabilities
 Balance Sheet ClassificationFair Value
  December 31, 2022December 31, 2021
  (In thousands)
Derivatives Designated as Hedging Instruments:
Foreign currency forward exchange and other contractsAccrued liabilities$3,647 $2,301 
Foreign currency forward exchange and other contractsOther noncurrent liabilities807 280 
Total Derivatives Designated as Hedging Instruments$4,454 $2,581 
Derivatives Not Designated as Hedging Instruments:
Foreign currency forward exchange and other contractsAccrued liabilities$6,261 $1,229 
Foreign currency forward exchange and other contractsOther noncurrent liabilities39 — 
Total Derivatives Not Designated as Hedging Instruments$6,300 $1,229 
$10,754 $3,810 
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 InstrumentsConsolidated Statements of
Operations Classification
For the Year Ended
 December 31,
2022		December 31,
2021		December 31,
2020
 (In thousands) 
Foreign currency forward exchange contracts:
Amount of gains (losses) recognized in OCI$40,449 $23,253 $(18,289)
Amount of gains (losses) reclassified from accumulated OCI to the consolidated statements of operations26,513 (912)8,121 Cost of sales
The net gains (losses) reclassified from accumulated other comprehensive loss to the consolidated statements of operations during 2022, 2021, and 2020, respectively, were offset by changes in cash flows associated with the underlying hedged transactions.
 Derivatives Not Designated As Hedging InstrumentsConsolidated Statements of
Operations Classification
For the Year Ended
 December 31,
2022		December 31,
2021		December 31,
2020
 (In thousands) 
Amount of net (losses) gains recognized in the Statements of Operations:
Foreign currency forward exchange and other contracts$(7,833)$2,872 $(26,553)Other non-operating expense, net
Foreign currency forward exchange and other contracts— 639 495 Cost of sales
$(7,833)$3,511 $(26,058)
The net (losses) gains recognized in the consolidated statements of operations during 2022, 2021, and 2020, respectively, were offset by foreign currency transaction gains and losses on the related derivative balances.