Employee Benefit Plans (Tables)

12 Months Ended

Dec. 31, 2022

A summary of retirement plan expense, net is as follows:


	For the Year Ended
	December 31, 2022		December 31, 2021		December 31, 2020
	(In thousands)
Defined contribution retirement plans	36,900		34,821		26,697
Defined benefit pension plans	$	5,693	$	14,858	$	9,670
Deferred compensation and excess benefit plans	(7,113)		6,857		6,391
Postretirement benefit plans	(2,047)		(1,968)		(1,972)
	$	33,433	$	54,568	$	40,786

Schedule of Defined Benefit Plan Amounts Recognized in Other Comprehensive (Loss) Income

A summary of the components of Mattel's net periodic benefit cost (credit) and other changes in plan assets and benefit obligations recognized in other comprehensive income (loss) for the years ended December 31 is as follows:


	Defined Benefit Pension Plans						Postretirement Benefit Plans
	2022		2021		2020		2022		2021		2020
	(In thousands)
Net Periodic Benefit Cost (Credit):
Service cost	$	4,010	$	4,925	$	4,348	$	2	$	2	$	1
Interest cost	12,081		10,094		15,079		89		78		139
Expected return on plan assets	(19,242)		(18,531)		(19,694)		—		—		—
Amortization of prior service cost (credit)	155		163		303		(2,038)		(2,038)		(2,038)
Recognized actuarial loss (gain)	8,996		11,177		9,584		(100)		(10)		(74)
Settlement loss	19		6,982		—		—		—		—
Curtailment (gain) loss	(326)		48		50		—		—		—
Net periodic benefit cost (credit)	$	5,693	$	14,858	$	9,670	$	(2,047)	$	(1,968)	$	(1,972)
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income (Loss):
Net actuarial (gain) loss	$	(23,501)	$	(42,671)	$	12,624	$	(922)	$	(605)	$	850
Prior service cost	1,022		204		269		—		—		—
Amortization of prior service (cost) credit	(155)		(163)		(303)		2,038		2,038		2,038
Total recognized in other comprehensive (income) loss (a)	$	(22,634)	$	(42,630)	$	12,590	$	1,116	$	1,433	$	2,888
Total recognized in net periodic benefit (credit) cost and other comprehensive income (loss)	$	(16,941)	$	(27,772)	$	22,260	$	(931)	$	(535)	$	916

(a)Amounts exclude related tax expense of approximately $6 million, $9 million, and $2 million, during 2022, 2021, and 2020, respectively, which are also included in other comprehensive income (loss).

Schedule of Components of Net Periodic Benefit Cost (Credit)


	Defined Benefit Pension Plans						Postretirement Benefit Plans
	2022		2021		2020		2022		2021		2020
	(In thousands)
Net Periodic Benefit Cost (Credit):
Service cost	$	4,010	$	4,925	$	4,348	$	2	$	2	$	1
Interest cost	12,081		10,094		15,079		89		78		139
Expected return on plan assets	(19,242)		(18,531)		(19,694)		—		—		—
Amortization of prior service cost (credit)	155		163		303		(2,038)		(2,038)		(2,038)
Recognized actuarial loss (gain)	8,996		11,177		9,584		(100)		(10)		(74)
Settlement loss	19		6,982		—		—		—		—
Curtailment (gain) loss	(326)		48		50		—		—		—
Net periodic benefit cost (credit)	$	5,693	$	14,858	$	9,670	$	(2,047)	$	(1,968)	$	(1,972)
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income (Loss):
Net actuarial (gain) loss	$	(23,501)	$	(42,671)	$	12,624	$	(922)	$	(605)	$	850
Prior service cost	1,022		204		269		—		—		—
Amortization of prior service (cost) credit	(155)		(163)		(303)		2,038		2,038		2,038
Total recognized in other comprehensive (income) loss (a)	$	(22,634)	$	(42,630)	$	12,590	$	1,116	$	1,433	$	2,888
Total recognized in net periodic benefit (credit) cost and other comprehensive income (loss)	$	(16,941)	$	(27,772)	$	22,260	$	(931)	$	(535)	$	916

Schedule of Assumptions Used to Calculate Net Periodic Benefit Cost for Domestic Defined Benefit Pension and Postretirement Benefit Plans

Net periodic benefit cost (credit) for Mattel's domestic defined benefit pension and postretirement benefit plans was calculated on January 1 of each year using the following assumptions:


	For the Year Ended
	December 31, 2022		December 31, 2021		December 31, 2020
Defined benefit pension plans:
Discount rate	2.5	%	2.2	%	3.0	%
Weighted-average rate of future compensation increases	N/A		N/A		N/A
Long-term rate of return on plan assets	5.0	%	5.0	%	5.5	%
Postretirement benefit plans:
Discount rate	2.5	%	2.2	%	3.0	%
Annual increase in Medicare Part B premium	6.0	%	6.0	%	6.0	%
Health care cost trend rate:
Pre-65	7.0	%	7.0	%	7.0	%
Post-65	7.0	%	6.8	%	6.8	%
Ultimate cost trend rate:
Pre-65	4.5	%	4.5	%	4.5	%
Post-65	4.5	%	4.5	%	4.5	%
Year that the rate reaches the ultimate cost trend rate:
Pre-65	2028		2027		2026
Post-65	2028		2027		2026

Schedule of Changes in Benefit Obligation and Plan Assets for Defined Benefit Pension and Postretirement Benefit Plans

A summary of the changes in benefit obligation and plan assets is as follows:


	Defined Benefit Pension Plans				Postretirement Benefit Plans
	December 31, 2022		December 31, 2021		December 31, 2022		December 31, 2021
	(In thousands)
Change in Benefit Obligation:
Benefit obligation, beginning of year	$	613,266	$	671,181	$	5,176	$	6,246
Service cost	4,010		4,925		2		2
Interest cost	12,081		10,094		89		78
Impact of currency exchange rate changes	(14,874)		(5,762)		—		—
Actuarial gain	(124,229)		(16,597)		(1,022)		(614)
Benefits paid	(36,943)		(49,895)		(251)		(536)
Plan amendments	—		(656)		—		—
Curtailments	(326)		—		—		—
Settlements	(359)		1,612		—		—
Other	(102)		(1,636)		—		—
Benefit obligation, end of year	$	452,524	$	613,266	$	3,994	$	5,176
Change in Plan Assets:
Plan assets at fair value, beginning of year	$	457,132	$	457,880	$	—	$	—
Actual (loss) return on plan assets	(91,470)		28,622		—		—
Employer contributions	5,029		21,841		251		536
Impact of currency exchange rate changes	(11,105)		(1,244)		—		—
Benefits paid	(36,943)		(49,895)		(251)		(536)
Settlements	(359)		—		—		—
Other	(109)		(72)		—		—
Plan assets at fair value, end of year	$	322,175	$	457,132	$	—	$	—
Net Amount Recognized in Consolidated Balance Sheets:
Funded status, end of year	$	(130,349)	$	(156,134)	$	(3,994)	$	(5,176)

Current accrued benefit liability	$	(5,109)	$	(5,119)	$	(630)	$	(730)
Noncurrent accrued benefit liability, net	(125,240)		(151,015)		(3,364)		(4,446)
Net amount recognized	$	(130,349)	$	(156,134)	$	(3,994)	$	(5,176)
Amounts Recognized in Accumulated Other Comprehensive Loss (a):
Net actuarial loss (gain)	$	213,166	$	236,667	$	(1,877)	$	(956)
Prior service cost (credit)	1,056		189		(6,073)		(8,110)
	$	214,222	$	236,856	$	(7,950)	$	(9,066)

(a)Amounts exclude related tax benefits of approximately $68 million and $74 million for December 31, 2022 and 2021, respectively, which are also included in accumulated other comprehensive loss.

Schedule of Accumulated and Projected Benefit Obligations

As of December 31, 2022 and 2021, information for defined benefit pension plans that had aggregate accumulated benefit obligations and projected benefit obligations in excess of plan assets is as follows:


	For the Year Ended
	December 31, 2022		December 31, 2021
	(In thousands)
Projected benefit obligation	$	391,459	$	523,968
Accumulated benefit obligation	376,769		506,124
Fair value of plan assets	251,487		348,660

Schedule of Assumptions Used to Determine Projected and Accumulated Benefit Obligations of Domestic Defined Benefit Pension and Postretirement Benefit Plans

The assumptions used in determining the projected and accumulated benefit obligations of Mattel's domestic defined benefit pension and postretirement benefit plans are as follows:


	December 31, 2022		December 31, 2021
Defined benefit pension plans:
Discount rate	4.9	%	2.5	%
Cash balance interest crediting rate	4.0	%	4.0	%
Weighted-average rate of future compensation increases	N/A		N/A
Postretirement benefit plans:
Discount rate	4.9	%	2.5	%
Annual increase in Medicare Part B premium	6.0	%	6.0	%
Health care cost trend rate:
Pre-65	7.0	%	7.0	%
Post-65	7.0	%	7.0	%
Ultimate cost trend rate:
Pre-65	4.5	%	4.5	%
Post-65	4.5	%	4.5	%
Year that the rate reaches the ultimate cost trend rate:
Pre-65	2029		2028
Post-65	2029		2028

Schedule of Estimated Future Benefit Payments for Defined Benefit Pension and Postretirement Benefit Plans

The estimated future benefit payments for Mattel's defined benefit pension and postretirement benefit plans are as follows:


	Defined Benefit Pension Plans		Postretirement Benefit Plans
	(In thousands)
2023	$	35,334	$	630
2024	35,944		530
2025	35,333		520
2026	34,206		420
2027	34,357		420
2028 - 2032	170,476		1,300

Schedule of Plan Assets Measured and Reported in Financial Statements at Fair Value

Mattel's defined benefit pension plan assets are measured and reported in the consolidated financial statements at fair value using inputs, which are more fully described in "Note 10 to the Consolidated Financial Statements—Fair Value Measurements," as follows:


	December 31, 2022
	Level 1		Level 2		Level 3		Total
	(In thousands)
U.S. government and U.S. government agency securities	$	—	$	11,699	$	—	$	11,699
U.S. corporate debt instruments	—		47,637		—		47,637
International corporate debt instruments	—		17,338		—		17,338
Mutual funds (a)	—		—		—		86,637
Money market funds	8,043		—		—		8,043
Other investments	—		7,563		—		7,563
Insurance "buy-in" policy	—		—		57,310		57,310
Collective trust funds (a):
U.S. equity securities							37,915
International equity securities							2,694
Global fixed income							24,355
Real Estate							$	20,984
Total	$	8,043	$	84,237	$	57,310	$	322,175


	December 31, 2021
	Level 1		Level 2		Level 3		Total
	(In thousands)
U.S. government and U.S. government agency securities	$	—	$	1,584	$	—	$	1,584
U.S. corporate debt instruments	—		68,070		—		68,070
International corporate debt instruments	—		23,752		—		23,752
Mutual funds (a)	—		—		—		132,165
Money market funds	3,650		—		—		3,650
Other investments	—		6,979		—		6,979
Insurance "buy-in" policy	—		—		30,731		30,731
Collective trust funds (a):
U.S. equity securities							65,256
International equity securities							12,832
Global fixed income							48,745
Diversified funds							46,407
Real Estate							$	16,961
Total	$	3,650	$	100,385	$	30,731	$	457,132

(a) These investments primarily consist of privately placed funds that are valued based on net asset value per share. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the statement of financial position and its related disclosures.

Schedule of Assets Measured at Fair Value on a Recurring Basis Using Unobservable Inputs

The following table provides a reconciliation of the beginning and ending balances of assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3):


	Level 3
	(in thousands)
Balance at December 31, 2020	$	32,794
Purchases, sales, and settlements	(1,854)
Changes in fair value	(209)
Balance at December 31, 2021	30,731
Purchases, sales, and settlements	41,347
Changes in fair value	(14,768)
Balance at December 31, 2022	$	57,310