Mattel 8-K: Operations, Disposal Activities, Officer Compensation

TL;DR

**Mattel filed an 8-K on Feb 7, 2024, hinting at operational changes, potential asset disposals, and executive pay adjustments.**

AI Summary

Mattel, Inc. filed an 8-K on February 7, 2024, reporting events from February 1, 2024, related to its financial condition, potential exit or disposal activities, and compensatory arrangements for certain officers. This filing indicates that Mattel is actively managing its operational costs and executive compensation, which could impact future profitability and investor returns. Investors should monitor subsequent filings for specific details on these activities, as they could signal strategic shifts or cost-cutting measures.

Why It Matters

This filing signals potential changes in Mattel's operational structure and executive compensation, which could affect the company's financial performance and shareholder value.

Risk Assessment

Risk Level: medium — The filing mentions 'Cost Associated with Exit or Disposal Activities,' which could indicate restructuring or asset sales, carrying both potential benefits and risks for investors.

Analyst Insight

A smart investor would closely monitor Mattel's upcoming financial reports for specific details regarding the 'Cost Associated with Exit or Disposal Activities' and any changes to 'Compensatory Arrangements of Certain Officers' to assess their impact on future profitability and strategic direction.

Key Numbers

• 001-05647 — Commission File Number (Identifies Mattel's registration with the SEC.)
• 95-1567322 — IRS Employer Identification Number (Unique tax identification for Mattel.)
• 310-252-2000 — Business Phone Number (Direct contact for Mattel's corporate offices.)
• $1.00 — Par value per share of Common Stock (Standard par value for Mattel's common stock.)

Key Players & Entities

• MATTEL INC /DE/ (company) — the registrant filing the 8-K
• February 1, 2024 (date) — Date of Earliest Event Reported
• February 7, 2024 (date) — Date the 8-K was filed
• 001-05647 (dollar_amount) — Commission File No.
• 95-1567322 (dollar_amount) — I.R.S. Employer Identification No.
• 333 Continental Boulevard El Segundo, California 90245-5012 (company) — Address of principal executive offices for Mattel, Inc.
• 310-252-2000 (dollar_amount) — Registrant's telephone number
• MAT (company) — Trading Symbol for Mattel's Common Stock
• The Nasdaq Stock Market (company) — Exchange where Mattel's Common Stock is registered

FAQ

Key Financial Figures

• $1.00 — ge on which registered Common Stock, $1.00 per share MAT The Nasdaq Global Select
• $200 million — pleted beginning 2024 through 2026, are $200 million. Mattel estimates the total cost associ
• $130 — ciated with the Program will be between $130 and $170 million. Total expected cash e
• $170 million — th the Program will be between $130 and $170 million. Total expected cash expenditures under
• $165 million — ram are expected to be between $130 and $165 million. The costs associated with the Program
• $90 — Estimate of Cost Employee severance $90 to $105 million Other restructuring c
• $105 million — te of Cost Employee severance $90 to $105 million Other restructuring costs $10 to $20
• $10 — 05 million Other restructuring costs $10 to $20 million Non-cash charges up t
• $20 million — ion Other restructuring costs $10 to $20 million Non-cash charges up to $5 million
• $5 million — o $20 million Non-cash charges up to $5 million Total estimated severance and restruc
• $100 — ated severance and restructuring costs $100 to $130 million Investments $30 to $
• $130 million — erance and restructuring costs $100 to $130 million Investments $30 to $40 million Tot
• $30 — ts $100 to $130 million Investments $30 to $40 million Total estimated action
• $40 million — 0 to $130 million Investments $30 to $40 million Total estimated actions $130 to $170
• $35 million — ated costs include approximately $30 to $35 million of severance and other restructuring co

Filing Documents

• mat-20240201.htm (8-K) — 43KB
• matq42023exhibit991.htm (EX-99.1) — 664KB
• matq42023exhibit992.htm (EX-99.2) — 12KB
• mattellogoa11.jpg (GRAPHIC) — 10KB
• 0001628280-24-003691.txt ( ) — 907KB
• mat-20240201.xsd (EX-101.SCH) — 2KB
• mat-20240201_lab.xml (EX-101.LAB) — 24KB
• mat-20240201_pre.xml (EX-101.PRE) — 12KB
• mat-20240201_htm.xml (XML) — 3KB

02 Results of Operations and Financial Condition

Item 2.02 Results of Operations and Financial Condition. On February 7, 2024, Mattel, Inc. ("Mattel" or the "Company") issued a press release regarding its fourth quarter and full year 2023 financial results, a copy of which is furnished as Exhibit 99.1 hereto. This exhibit is incorporated herein by reference.

05. Costs Associated with Exit or Disposal Activities

Item 2.05. Costs Associated with Exit or Disposal Activities. On February 7, 2024, Mattel announced the Optimizing for Profitable Growth program, a multi-year cost savings program that follows the Company's Optimizing for Growth program and is designed to achieve further efficiency and cost savings opportunities, primarily within the Company's global supply chain, including its manufacturing footprint (the "Program"). The Program integrates and expands upon the other cost savings actions, which includes discontinuing production at a plant in China as previously announced in the third quarter of 2023, that were not included in the Optimizing for Growth program. Targeted annual gross cost savings from actions associated with the Program, which are expected to be completed beginning 2024 through 2026, are $200 million. Mattel estimates the total cost associated with the Program will be between $130 and $170 million. Total expected cash expenditures under the program are expected to be between $130 and $165 million. The costs associated with the Program are expected to include the following: Optimizing for Profitable Growth Actions* Estimate of Cost Employee severance $90 to $105 million Other restructuring costs $10 to $20 million Non-cash charges up to $5 million Total estimated severance and restructuring costs $100 to $130 million Investments $30 to $40 million Total estimated actions $130 to $170 million *Total estimated costs include approximately $30 to $35 million of severance and other restructuring costs and up to $5 million of non-cash charges associated with the discontinuation of production at a manufacturing plant in China, which was previously announced during the third quarter of 2023. As of December 31, 2023, Mattel had recognized approximately $25 million of those estimated severance and other restructuring costs within other selling and administrative expenses in its consolidated statement of operations. The foregoing contain

01 Regulation FD Disclosure

Item 7.01 Regulation FD Disclosure. On February 7, 2024, Mattel issued a press release regarding the election and appointment of Mr. Genachowski and Ms. Ostroff, and the resignations of Mr. Bradley and Ms. Lewnes, a copy of which is furnished as Exhibit 99.2 hereto. In the same press release described in Item 2.02 above, Mattel also announced that the Board has authorized the Company to repurchase $1.0 billion of the Company's shares. In accordance with General Instruction B.2 of Form 8-K, the information in Items 2.02 and 7.01, including Exhibits 99.1 and 99.2, shall not be deemed to be "filed" for purposes of Section 18 of the Securities and Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liability of that section, and shall not be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing. Section 9 – Financial Statements and Exhibits

01 Financial Statements and Exhibits

Item 9.01 Financial Statements and Exhibits. (d) Exhibits: Exhibit No. Exhibit Description 99.1 ** Press release dated February 7, 2024 99.2 ** Press release dated February 7, 2024 104 Cover Page Interactive Data File (embedded within the Inline XBRL Document) ** Furnished herewith SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. MATTEL, INC. Registrant By: /s/ Jonathan Anschell Name: Jonathan Anschell Title: Executive Vice President, Chief Legal Officer, and Secretary Dated: February 7, 2024