Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

Schedule of Components of Pre-Tax Income

Consolidated pre-tax income consists of the following:


	For the Year Ended
	December 31, 2022		December 31, 2021		December 31, 2020
	(In thousands)
U.S. operations	$	221,149	$	9,612	$	(172,478)
Foreign operations	283,186		461,152		350,135
Consolidated pre-tax income excluding equity method investments	$	504,335	$	470,764	$	177,657

Schedule of Provision (Benefit) for Current and Deferred Income Taxes

The provision (benefit) for current and deferred income taxes consists of the following:


	For the Year Ended
	December 31, 2022		December 31, 2021		December 31, 2020
	(In thousands)
Current
Federal	$	—	$	(9,819)	$	—
State	2,359		(4,060)		(575)
Foreign	62,278		81,899		78,870
	64,637		68,020		78,295
Deferred
Federal	55,805		(229,217)		1,164
State	2,440		(27,970)		(481)
Foreign	12,969		(231,214)		(13,429)
	71,214		(488,401)		(12,746)
Provision (benefit) for income taxes	$	135,851	$	(420,381)	$	65,549

Schedule of Deferred Income Tax Assets (Liabilities)

Mattel's deferred income tax assets (liabilities) are composed of the following:


	December 31, 2022		December 31, 2021
	(In thousands)
Tax credit carryforwards	$	70,346	$	100,575
Research and development expenses	45,640		27,996
Net operating loss carryforwards	94,977		124,792
Interest expense	79,862		90,671
Allowances and reserves	119,458		102,634
Deferred compensation	41,411		66,183
Postretirement benefits	22,852		31,841
Intangible assets	212,497		219,629
Lease liabilities	82,349		70,712
Other	43,885		46,382
Gross deferred income tax assets	813,277		881,415
Intangible assets	(177,522)		(189,021)
Right-of-use assets	(74,642)		(63,206)
Other	(52,502)		(40,781)
Gross deferred income tax liabilities	(304,666)		(293,008)
Deferred income tax asset valuation allowances	(92,134)		(101,489)
Net deferred income tax assets	$	416,477	$	486,918

Net deferred income tax assets are reported in the consolidated balance sheets as follows:


	December 31, 2022		December 31, 2021
	(In thousands)
Deferred income tax assets	$	471,672	$	526,906
Other noncurrent liabilities	(55,195)		(39,988)
	$	416,477	$	486,918

Schedule of Expiration of Loss and Tax Credit Carryforwards

Mattel's loss and tax credit carryforwards expire in the following periods:


	Loss Carryforward		Tax Credit Carryforward
	(In thousands)
2023–2027	$	33,390	$	—
Thereafter	114,825		45,624
No expiration date	159,453		24,722
Total	$	307,668	$	70,346

Schedule of Reconciliation of Provision for Income Taxes at US Federal Statutory Rate to Provision in Statements of Operations

Differences between the provision for income taxes at the U.S. federal statutory income tax rate and the provision in the consolidated statements of operations are as follows:


	For the Year Ended
	December 31, 2022		December 31, 2021		December 31, 2020
	(In thousands)
Provision at U.S. federal statutory rate	$	105,910	$	98,861	$	37,308
Differences resulting from:
Changes in valuation allowances	—		(540,803)		14,576
Foreign earnings taxed at different rates, including foreign losses without benefit	16,877		35,468		5,711
Tax related to pass-through income	5,340		2,487		2,409
Non deductible executive compensation	5,141		7,115		5,968
State and local taxes, net of U.S. federal benefit (expense)	5,027		(983)		(1,056)
Adjustments to previously accrued taxes	(9,471)		(19,101)		5,354
Change in indefinite reinvestment assertion	10,600		7,000		—
Other	(3,573)		(10,425)		(4,721)
Provision (benefit) for income taxes	$	135,851	$	(420,381)	$	65,549

Schedule of Reconciliation of Unrecognized Tax Benefits

A reconciliation of the reserve for unrecognized tax benefits is as follows:


	For the Year Ended
	December 31, 2022		December 31, 2021		December 31, 2020
	(In thousands)
Unrecognized tax benefits at January 1	$	118,781	$	140,309	$	137,929
Increases for positions taken in current year	5,034		5,113		5,969
Increases for positions taken in a prior year	8,037		3,658		5,811
Decreases for positions taken in a prior year	(7,315)		(1,324)		(3,127)
Decreases for settlements with taxing authorities	(1,236)		(2,852)		(3,410)
Decreases for lapses in the applicable statute of limitations	(9,244)		(26,123)		(2,863)
Unrecognized tax benefits at December 31	$	114,057	$	118,781	$	140,309