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. The OPG program includes cost savings actions in connection with discontinuing production at a plant in China as previously announced in the third quarter of 2023, as well as savings from other previous actions taken in 2023 that were not recognized in the OFG program.

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				For the Six Months Ended
	June 30, 2026		June 30, 2025		June 30, 2026		June 30, 2025
	(In thousands)
Cost of sales (a)	$	179	$	2,070	$	840	$	3,691
Other selling and administrative expenses (b)	2,029		1,732		17,536		19,492
	$	2,208	$	3,802	$	18,376	$	23,183

(a)Severance and other restructuring charges recorded within cost of sales in the consolidated statements of operations are included in segment income in "Note 22 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 unallocated corporate and other operating expenses in "Note 22 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, 2025		Charges		Payments/Utilization		Liability at June 30, 2026
	(In thousands)
Severance	$	16,590	$	17,400	$	(19,418)	$	14,572
Other restructuring charges (a)	67		976		(948)		95
	$	16,657	$	18,376	$	(20,366)	$	14,667


	Liability at December 31, 2024		Charges		Payments/Utilization		Liability at June 30, 2025
	(In thousands)
Severance	$	32,661	$	17,648	$	(11,664)	$	38,645
Other restructuring charges (a)	10		5,535		(5,534)		11
	$	32,671	$	23,183	$	(17,198)	$	38,656

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

As of June 30, 2026, in connection with the OPG program, Mattel recorded cumulative severance and other restructuring charges of approximately $134 million, which included approximately $25 million of severance charges recorded within other selling and administrative expenses during 2023. Cumulative other restructuring charges include approximately $5 million of non-cash charges. Total cash expenditures are expected to be up to $140 million, and total non-cash charges are expected to be approximately $5 million.