Mattel Inc. Q2 2024 10-Q Filing

TL;DR

Mattel Q2 2024 10-Q filed: $1.8B net sales YTD. Check financials.

AI Summary

Mattel Inc. reported its Q2 2024 results, with net sales for the six months ended June 30, 2024, reaching $1.80 billion. The company's financial statements, filed on July 30, 2024, detail its performance and position as of June 30, 2024. Key financial figures and operational data are presented in this 10-Q filing.

Why It Matters

This filing provides investors and analysts with the latest financial performance data for Mattel Inc., crucial for understanding the company's current health and future prospects.

Risk Assessment

Risk Level: low — This is a standard quarterly financial filing (10-Q) and does not inherently present new risks.

Key Numbers

• $1.80B — Net Sales (YTD) (Six months ended June 30, 2024)
• 20240630 — Reporting Period End Date (Quarterly financial reporting)
• 20240730 — Filing Date (SEC filing submission date)

Key Players & Entities

• MATTEL INC /DE/ (company) — Filer
• 20240630 (date) — Conformed Period of Report
• 20240730 (date) — Filed as of Date
• $1.80 billion (dollar_amount) — Net sales for the six months ended June 30, 2024

FAQ

Key Financial Figures

• $1.00 — ange on which registered Common stock, $1.00 per share MAT The Nasdaq Global Select

Filing Documents

• mat-20240630.htm (10-Q) — 1617KB
• mat63024ex101.htm (EX-10.1) — 51KB
• mat63024ex310.htm (EX-31) — 10KB
• mat63024ex311.htm (EX-31.1) — 10KB
• mat63024ex320.htm (EX-32) — 11KB
• image_0a.jpg (GRAPHIC) — 227KB
• 0001628280-24-033454.txt ( ) — 8317KB
• mat-20240630.xsd (EX-101.SCH) — 45KB
• mat-20240630_cal.xml (EX-101.CAL) — 60KB
• mat-20240630_def.xml (EX-101.DEF) — 220KB
• mat-20240630_lab.xml (EX-101.LAB) — 568KB
• mat-20240630_pre.xml (EX-101.PRE) — 430KB
• mat-20240630_htm.xml (XML) — 1362KB

— FINANCIAL INFORMATION

PART I — FINANCIAL INFORMATION Item 1.

Financial Statements

Financial Statements 4 Consolidated Balance Sheets 4 Consolidated Statements of Operations 5 Consolidated Statements of Comprehensive Income (Loss) 6 Consolidated Statements of Cash Flows 7 Consolidated Statements of Stockholders' Equity 8

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 9 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 26 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 44 Item 4.

Controls and Procedures

Controls and Procedures 45

— OTHER INFORMATION

PART II — OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 46 Item 1A.

Risk Factors

Risk Factors 46 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 46 Item 3. Defaults Upon Senior Securities 46 Item 4. Mine Safety Disclosures 46 Item 5. Other Information 46 Item 6. Exhibits 47 Signature 48 2 (Cautionary Note Regarding Forward-Looking Statements) Mattel cautions investors that this Quarterly Report on Form 10-Q includes forward-looking statements, which are statements that relate to the future and are, by their nature, uncertain. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. The use of words such as "anticipates," "expects," "intends," "plans," "projects," "looks forward," "confident that," "believes," and "targeted," among others, generally identify forward-looking statements. These forward-looking statements are based on currently available operating, financial, economic, and other information and assumptions, and are subject to a number of significant risks and uncertainties. A variety of factors, many of which are beyond Mattel's control, could cause actual future results to differ materially from those projected in the forward-looking statements. Specific factors that might cause such a difference include, but are not limited to: (i) Mattel's ability to design, develop, produce, manufacture, source, ship, and distribute products on a timely and cost-effective basis; (ii) sufficient interest in and demand for the products and entertainment Mattel offers by retail customers and consumers to profitably recover Mattel's costs; (iii) downturns in economic conditions affecting Mattel's markets which can negatively impact retail customers and consumers, and which can result in lower employment levels and lower consumer disposable income and spending, including lower spending on purchases of Mattel's products; (iv) other factors which can lower discretionary consumer spending, such as higher costs for fuel and food, drops in the

—FINANCIAL INFORMATION

PART I—FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements. MATTEL, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS June 30, 2024 June 30, 2023 December 31, 2023 (Unaudited; in thousands, except share data) ASSETS Current Assets Cash and equivalents $ 722,410 $ 299,918 $ 1,261,363 Accounts receivable, net of allowances for credit losses of $ 8.5 million, $ 13.2 million, and $ 8.8 million, respectively 839,419 890,882 1,081,827 Inventories 776,863 971,614 571,609 Prepaid expenses and other current assets 265,678 261,321 207,548 Total current assets 2,604,370 2,423,735 3,122,347 Noncurrent Assets Property, plant, and equipment, net 444,879 464,111 465,523 Right-of-use assets, net 292,362 296,231 313,191 Goodwill 1,383,406 1,384,245 1,384,512 Deferred income tax assets 293,748 480,062 299,157 Intangible assets, net 376,668 411,759 393,039 Other noncurrent assets 510,387 437,701 458,053 Total Assets $ 5,905,820 $ 5,897,844 $ 6,435,822 LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities Accounts payable $ 377,092 $ 365,580 $ 442,286 Accrued liabilities 628,330 656,097 866,283 Income taxes payable 5,741 9,404 33,911 Total current liabilities 1,011,163 1,031,081 1,342,480 Noncurrent Liabilities Long-term debt 2,332,169 2,327,807 2,329,986 Noncurrent lease liabilities 243,206 243,768 259,548 Other noncurrent liabilities 346,149 332,814 354,595 Total noncurrent liabilities 2,921,524 2,904,389 2,944,129 Stockholders' Equity Common stock $ 1.00 par value, 1.00 billion shares authorized; 441.4 million shares issued 441,369 441,369 441,369 Additional paid-in capital 1,755,660 1,770,597 1,774,911 Treasury stock at cost: 101.5 million shares, 87.4 million shares, and 92.9 million shares, respectively ( 2,379,419 ) ( 2,120,765 ) ( 2,224,160 ) Retained earnings 3,090,640 2,768,425 3,062,061 Accumulated other comprehensive loss ( 935,117 ) ( 897,252 ) ( 904,968 ) Total stockholders' equity 1,973,133 1,962,374 2,149,213 Total Liabilities and Stockholders' Equity $

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) 1. Basis of Presentation The accompanying unaudited consolidated financial statements and related disclosures have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") applicable to interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. In the opinion of management, all adjustments, consisting of only those of a normal recurring nature, considered necessary for a fair statement of the financial position and interim results of Mattel, Inc. and its subsidiaries ("Mattel") as of and for the periods presented have been included. The December 31, 2023 balance sheet data was derived from audited financial statements; however, the accompanying interim notes to the consolidated financial statements do not include all of the annual disclosures required by GAAP. As Mattel's business is seasonal, results for interim periods are not necessarily indicative of those that may be expected for a full year. The financial information included herein should be read in conjunction with Mattel's consolidated financial statements and related notes in the 2023 Annual Report on Form 10-K. Certain prior period amounts have been reclassified to conform to the current period presentation. 2. Accounts Receivable, Net Mattel estimates current expected credit losses based on collection history and management's assessment of the current economic trends, business environment, customers' financial condition, and accounts receivable aging that may impact the level of future credit losses. Accounts receivable were net of allowances for credit losses of $ 8.5 million, $ 13.2 million, and $ 8.8 million as of June 30, 2024, June 30, 2023, and December 31, 2023, respectively. 3. Inventories Inventories included the following: June 30, 2024 June 30, 2023 December 31, 2023 (In thousands) Raw materials and work in process $ 112,07