☒
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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For the quarterly period ended
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June 30, 2019
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☐
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
|
For the transition period from to
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Delaware
|
|
95-1567322
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(State or other jurisdiction of
incorporation or organization)
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(I.R.S. Employer
Identification No.)
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333 Continental Blvd.
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90245-5012
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El Segundo,
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CA
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|
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(Address of principal executive offices)
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(Zip Code)
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Title of each class
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Trading Symbol(s)
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Name of each exchange on which registered
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Common stock, $1.00 per share
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|
MAT
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The Nasdaq Global Select Market
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Large accelerated filer
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☒
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Accelerated filer
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☐
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Non-accelerated filer
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☐
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Smaller reporting company
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☐
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Emerging growth company
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☐
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Page
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PART I
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PART II
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June 30,
2019 |
|
June 30,
2018 |
|
December 31,
2018 |
||||||
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(Unaudited; in thousands, except share data)
|
||||||||||
ASSETS
|
|
|
|
|
|
||||||
Current Assets
|
|
|
|
|
|
||||||
Cash and equivalents
|
$
|
194,125
|
|
|
$
|
228,606
|
|
|
$
|
594,481
|
|
Accounts receivable, net
|
755,698
|
|
|
780,064
|
|
|
970,083
|
|
|||
Inventories
|
722,394
|
|
|
715,288
|
|
|
542,889
|
|
|||
Prepaid expenses and other current assets
|
243,305
|
|
|
327,297
|
|
|
244,987
|
|
|||
Total current assets
|
1,915,522
|
|
|
2,051,255
|
|
|
2,352,440
|
|
|||
Noncurrent Assets
|
|
|
|
|
|
||||||
Property, plant, and equipment, net
|
595,838
|
|
|
719,747
|
|
|
657,595
|
|
|||
Right-of-use assets, net
|
317,085
|
|
|
—
|
|
|
—
|
|
|||
Goodwill
|
1,386,057
|
|
|
1,390,076
|
|
|
1,386,424
|
|
|||
Other noncurrent assets
|
832,127
|
|
|
892,364
|
|
|
847,006
|
|
|||
Total Assets
|
$
|
5,046,629
|
|
|
$
|
5,053,442
|
|
|
$
|
5,243,465
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
|
|
||||||
Current Liabilities
|
|
|
|
|
|
||||||
Short-term borrowings
|
$
|
45,000
|
|
|
$
|
80,000
|
|
|
$
|
4,176
|
|
Accounts payable
|
416,430
|
|
|
428,741
|
|
|
537,965
|
|
|||
Accrued liabilities
|
590,532
|
|
|
585,585
|
|
|
700,421
|
|
|||
Income taxes payable
|
22,618
|
|
|
3,119
|
|
|
10,046
|
|
|||
Total current liabilities
|
1,074,580
|
|
|
1,097,445
|
|
|
1,252,608
|
|
|||
Noncurrent Liabilities
|
|
|
|
|
|
||||||
Long-term debt
|
2,855,194
|
|
|
2,848,177
|
|
|
2,851,723
|
|
|||
Noncurrent lease liabilities
|
284,947
|
|
|
—
|
|
|
—
|
|
|||
Other noncurrent liabilities
|
410,571
|
|
|
443,849
|
|
|
469,669
|
|
|||
Total noncurrent liabilities
|
3,550,712
|
|
|
3,292,026
|
|
|
3,321,392
|
|
|||
Stockholders' Equity
|
|
|
|
|
|
||||||
Common stock $1.00 par value, 1.0 billion shares authorized; 441.4 million shares issued
|
441,369
|
|
|
441,369
|
|
|
441,369
|
|
|||
Additional paid-in capital
|
1,831,952
|
|
|
1,820,432
|
|
|
1,812,682
|
|
|||
Treasury stock at cost: 95.9 million shares, 97.2 million shares, and 96.1 million shares, respectively
|
(2,349,874
|
)
|
|
(2,381,777
|
)
|
|
(2,354,617
|
)
|
|||
Retained earnings
|
1,337,552
|
|
|
1,608,025
|
|
|
1,629,257
|
|
|||
Accumulated other comprehensive loss
|
(839,662
|
)
|
|
(824,078
|
)
|
|
(859,226
|
)
|
|||
Total stockholders' equity
|
421,337
|
|
|
663,971
|
|
|
669,465
|
|
|||
Total Liabilities and Stockholders' Equity
|
$
|
5,046,629
|
|
|
$
|
5,053,442
|
|
|
$
|
5,243,465
|
|
|
For the Three Months Ended
|
|
For the Six Months Ended
|
||||||||||||
June 30,
2019 |
|
June 30,
2018 |
|
June 30,
2019 |
|
June 30,
2018 |
|||||||||
|
(Unaudited; in thousands, except per share amounts)
|
||||||||||||||
Net Sales
|
$
|
860,063
|
|
|
$
|
840,748
|
|
|
$
|
1,549,309
|
|
|
$
|
1,549,120
|
|
Cost of sales
|
518,679
|
|
|
587,546
|
|
|
968,135
|
|
|
1,077,045
|
|
||||
Gross Profit
|
341,384
|
|
|
253,202
|
|
|
581,174
|
|
|
472,075
|
|
||||
Advertising and promotion expenses
|
84,489
|
|
|
82,393
|
|
|
153,954
|
|
|
153,230
|
|
||||
Other selling and administrative expenses
|
308,311
|
|
|
360,000
|
|
|
609,595
|
|
|
784,617
|
|
||||
Operating Loss
|
(51,416
|
)
|
|
(189,191
|
)
|
|
(182,375
|
)
|
|
(465,772
|
)
|
||||
Interest expense
|
46,234
|
|
|
43,467
|
|
|
93,192
|
|
|
84,546
|
|
||||
Interest (income)
|
(1,532
|
)
|
|
(1,699
|
)
|
|
(3,804
|
)
|
|
(4,846
|
)
|
||||
Other non-operating (income) expense, net
|
(294
|
)
|
|
3,063
|
|
|
1,610
|
|
|
2,455
|
|
||||
Loss Before Income Taxes
|
(95,824
|
)
|
|
(234,022
|
)
|
|
(273,373
|
)
|
|
(547,927
|
)
|
||||
Provision for income taxes
|
12,163
|
|
|
6,909
|
|
|
18,332
|
|
|
4,257
|
|
||||
Net Loss
|
$
|
(107,987
|
)
|
|
$
|
(240,931
|
)
|
|
$
|
(291,705
|
)
|
|
$
|
(552,184
|
)
|
Net Loss Per Common Share - Basic
|
$
|
(0.31
|
)
|
|
$
|
(0.70
|
)
|
|
$
|
(0.84
|
)
|
|
$
|
(1.60
|
)
|
Weighted average number of common shares
|
345,941
|
|
|
344,584
|
|
|
345,946
|
|
|
344,507
|
|
||||
Net Loss Per Common Share - Diluted
|
$
|
(0.31
|
)
|
|
$
|
(0.70
|
)
|
|
$
|
(0.84
|
)
|
|
$
|
(1.60
|
)
|
Weighted average number of common and potential common shares
|
345,941
|
|
|
344,584
|
|
|
345,946
|
|
|
344,507
|
|
|
For the Three Months Ended
|
|
For the Six Months Ended
|
||||||||||||
|
June 30,
2019 |
|
June 30,
2018 |
|
June 30,
2019 |
|
June 30,
2018 |
||||||||
|
(Unaudited; in thousands)
|
||||||||||||||
Net Loss
|
$
|
(107,987
|
)
|
|
$
|
(240,931
|
)
|
|
$
|
(291,705
|
)
|
|
$
|
(552,184
|
)
|
Other Comprehensive (Loss) Income, Net of Tax
|
|
|
|
|
|
|
|
||||||||
Currency translation adjustments
|
(1,170
|
)
|
|
(105,727
|
)
|
|
12,963
|
|
|
(63,738
|
)
|
||||
Defined benefit pension plan adjustments
|
624
|
|
|
1,069
|
|
|
847
|
|
|
2,685
|
|
||||
Net unrealized losses on available-for-sale security
|
(1,944
|
)
|
|
(2,709
|
)
|
|
(67
|
)
|
|
(2,789
|
)
|
||||
Net unrealized gains on derivative instruments:
|
|
|
|
|
|
|
|
||||||||
Unrealized holding gains
|
3,254
|
|
|
17,652
|
|
|
9,072
|
|
|
12,333
|
|
||||
Reclassification adjustment for realized (losses) gains included in net loss
|
(2,492
|
)
|
|
4,786
|
|
|
(3,251
|
)
|
|
9,217
|
|
||||
|
762
|
|
|
22,438
|
|
|
5,821
|
|
|
21,550
|
|
||||
Other Comprehensive (Loss) Income, Net of Tax
|
(1,728
|
)
|
|
(84,929
|
)
|
|
19,564
|
|
|
(42,292
|
)
|
||||
Comprehensive Loss
|
$
|
(109,715
|
)
|
|
$
|
(325,860
|
)
|
|
$
|
(272,141
|
)
|
|
$
|
(594,476
|
)
|
|
For the Six Months Ended
|
||||||
June 30,
2019 |
|
June 30,
2018 |
|||||
|
(Unaudited; in thousands)
|
||||||
Cash Flows From Operating Activities:
|
|
|
|
||||
Net loss
|
$
|
(291,705
|
)
|
|
$
|
(552,184
|
)
|
Adjustments to reconcile net loss to net cash flows used for operating activities:
|
|
|
|
||||
Depreciation
|
103,580
|
|
|
117,440
|
|
||
Amortization
|
20,338
|
|
|
19,730
|
|
||
Asset impairments
|
6,845
|
|
|
11,913
|
|
||
Share-based compensation
|
24,310
|
|
|
22,417
|
|
||
Bad debt expense
|
2,487
|
|
|
52,935
|
|
||
Inventory obsolescence
|
35,351
|
|
|
45,394
|
|
||
Deferred income taxes
|
36
|
|
|
(827
|
)
|
||
Increase (decrease) from changes in assets and liabilities:
|
|
|
|
||||
Accounts receivable
|
222,823
|
|
|
274,306
|
|
||
Inventories
|
(207,984
|
)
|
|
(184,950
|
)
|
||
Prepaid expenses and other current assets
|
146
|
|
|
(27,784
|
)
|
||
Accounts payable, accrued liabilities, and income taxes payable
|
(307,889
|
)
|
|
(328,998
|
)
|
||
Other, net
|
(8,857
|
)
|
|
(6,001
|
)
|
||
Net cash flows used for operating activities
|
(400,519
|
)
|
|
(556,609
|
)
|
||
Cash Flows From Investing Activities:
|
|
|
|
||||
Purchases of tools, dies, and molds
|
(20,933
|
)
|
|
(36,793
|
)
|
||
Purchases of other property, plant, and equipment
|
(27,248
|
)
|
|
(41,498
|
)
|
||
Proceeds from (payments for) foreign currency forward exchange contracts, net
|
3,992
|
|
|
(12,577
|
)
|
||
Other, net
|
484
|
|
|
5,685
|
|
||
Net cash flows used for investing activities
|
(43,705
|
)
|
|
(85,183
|
)
|
||
Cash Flows From Financing Activities:
|
|
|
|
||||
Proceeds from short-term borrowings, net
|
40,824
|
|
|
80,000
|
|
||
Payments of long-term borrowings
|
—
|
|
|
(750,000
|
)
|
||
Proceeds from long-term borrowings, net
|
—
|
|
|
475,550
|
|
||
Other, net
|
(158
|
)
|
|
(3,548
|
)
|
||
Net cash flows provided by (used for) financing activities
|
40,666
|
|
|
(197,998
|
)
|
||
Effect of Currency Exchange Rate Changes on Cash
|
3,202
|
|
|
(10,825
|
)
|
||
Decrease in Cash and Equivalents
|
(400,356
|
)
|
|
(850,615
|
)
|
||
Cash and Equivalents at Beginning of Period
|
594,481
|
|
|
1,079,221
|
|
||
Cash and Equivalents at End of Period
|
$
|
194,125
|
|
|
$
|
228,606
|
|
|
Common
Stock |
|
Additional
Paid-In Capital |
|
Treasury
Stock |
|
Retained
Earnings |
|
Accumulated
Other Comprehensive Loss |
|
Total
Stockholders' Equity |
||||||||||||
|
(Unaudited; in thousands)
|
||||||||||||||||||||||
Balance, December 31, 2018
|
$
|
441,369
|
|
|
$
|
1,812,682
|
|
|
$
|
(2,354,617
|
)
|
|
$
|
1,629,257
|
|
|
$
|
(859,226
|
)
|
|
$
|
669,465
|
|
Net loss
|
—
|
|
|
—
|
|
|
—
|
|
|
(183,718
|
)
|
|
—
|
|
|
(183,718
|
)
|
||||||
Other comprehensive income, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
21,292
|
|
|
21,292
|
|
||||||
Issuance of treasury stock for restricted stock units vesting
|
—
|
|
|
(1,829
|
)
|
|
1,442
|
|
|
—
|
|
|
—
|
|
|
(387
|
)
|
||||||
Share-based compensation
|
—
|
|
|
11,865
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
11,865
|
|
||||||
Balance, March 31, 2019
|
441,369
|
|
|
1,822,718
|
|
|
(2,353,175
|
)
|
|
1,445,539
|
|
|
(837,934
|
)
|
|
518,517
|
|
||||||
Net loss
|
—
|
|
|
—
|
|
|
—
|
|
|
(107,987
|
)
|
|
—
|
|
|
(107,987
|
)
|
||||||
Other comprehensive loss, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,728
|
)
|
|
(1,728
|
)
|
||||||
Issuance of treasury stock for restricted stock units vesting
|
—
|
|
|
(3,060
|
)
|
|
3,025
|
|
|
—
|
|
|
—
|
|
|
(35
|
)
|
||||||
Deferred compensation
|
—
|
|
|
(151
|
)
|
|
276
|
|
|
—
|
|
|
—
|
|
|
125
|
|
||||||
Share-based compensation
|
—
|
|
|
12,445
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
12,445
|
|
||||||
Balance, June 30, 2019
|
$
|
441,369
|
|
|
$
|
1,831,952
|
|
|
$
|
(2,349,874
|
)
|
|
$
|
1,337,552
|
|
|
$
|
(839,662
|
)
|
|
$
|
421,337
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Common
Stock |
|
Additional
Paid-In Capital |
|
Treasury
Stock |
|
Retained
Earnings |
|
Accumulated
Other Comprehensive Loss |
|
Total
Stockholders' Equity |
||||||||||||
|
(Unaudited; in thousands)
|
||||||||||||||||||||||
Balance, December 31, 2017
|
$
|
441,369
|
|
|
$
|
1,808,391
|
|
|
$
|
(2,389,877
|
)
|
|
$
|
2,179,358
|
|
|
$
|
(781,786
|
)
|
|
$
|
1,257,455
|
|
Cumulative effect of accounting change
|
—
|
|
|
—
|
|
|
—
|
|
|
(19,148
|
)
|
|
—
|
|
|
(19,148
|
)
|
||||||
Net loss
|
—
|
|
|
—
|
|
|
—
|
|
|
(311,253
|
)
|
|
—
|
|
|
(311,253
|
)
|
||||||
Other comprehensive income, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
42,637
|
|
|
42,637
|
|
||||||
Issuance of treasury stock for restricted stock units vesting
|
—
|
|
|
(5,675
|
)
|
|
4,027
|
|
|
—
|
|
|
—
|
|
|
(1,648
|
)
|
||||||
Share-based compensation
|
—
|
|
|
14,423
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
14,423
|
|
||||||
Balance, March 31, 2018
|
441,369
|
|
|
1,817,139
|
|
|
(2,385,850
|
)
|
|
1,848,957
|
|
|
(739,149
|
)
|
|
982,466
|
|
||||||
Net loss
|
—
|
|
|
—
|
|
|
—
|
|
|
(240,931
|
)
|
|
—
|
|
|
(240,931
|
)
|
||||||
Other comprehensive loss, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(84,929
|
)
|
|
(84,929
|
)
|
||||||
Issuance of treasury stock for restricted stock units vesting
|
—
|
|
|
(4,624
|
)
|
|
3,872
|
|
|
—
|
|
|
—
|
|
|
(752
|
)
|
||||||
Deferred compensation
|
—
|
|
|
(77
|
)
|
|
201
|
|
|
—
|
|
|
—
|
|
|
124
|
|
||||||
Share-based compensation
|
—
|
|
|
7,994
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
7,994
|
|
||||||
Balance, June 30, 2018
|
$
|
441,369
|
|
|
$
|
1,820,432
|
|
|
$
|
(2,381,777
|
)
|
|
$
|
1,608,025
|
|
|
$
|
(824,078
|
)
|
|
$
|
663,971
|
|
1.
|
Basis of Presentation
|
2.
|
Accounts Receivable
|
3.
|
Inventories
|
|
June 30,
2019 |
|
June 30,
2018 |
|
December 31,
2018 |
||||||
|
(In thousands)
|
||||||||||
Raw materials and work in process
|
$
|
129,937
|
|
|
$
|
130,093
|
|
|
$
|
115,966
|
|
Finished goods
|
592,457
|
|
|
585,195
|
|
|
426,923
|
|
|||
|
$
|
722,394
|
|
|
$
|
715,288
|
|
|
$
|
542,889
|
|
4.
|
Property, Plant, and Equipment
|
|
June 30,
2019 |
|
June 30,
2018 |
|
December 31,
2018 |
||||||
|
(In thousands)
|
||||||||||
Land
|
$
|
25,133
|
|
|
$
|
25,030
|
|
|
$
|
25,023
|
|
Buildings
|
298,768
|
|
|
296,672
|
|
|
294,227
|
|
|||
Machinery and equipment
|
873,294
|
|
|
887,496
|
|
|
875,308
|
|
|||
Software
|
409,209
|
|
|
385,284
|
|
|
400,488
|
|
|||
Tools, dies, and molds
|
818,166
|
|
|
867,997
|
|
|
831,743
|
|
|||
Capital leases
|
—
|
|
|
23,927
|
|
|
23,927
|
|
|||
Leasehold improvements
|
237,150
|
|
|
241,275
|
|
|
240,636
|
|
|||
|
2,661,720
|
|
|
2,727,681
|
|
|
2,691,352
|
|
|||
Less: accumulated depreciation
|
(2,065,882
|
)
|
|
(2,007,934
|
)
|
|
(2,033,757
|
)
|
|||
|
$
|
595,838
|
|
|
$
|
719,747
|
|
|
$
|
657,595
|
|
5.
|
Leases
|
|
June 30,
2019 |
||
|
(In thousands, except years and percentage information)
|
||
Right-of-use assets, net
|
$
|
317,085
|
|
|
|
||
Accrued liabilities
|
$
|
75,071
|
|
Noncurrent lease liabilities
|
284,947
|
|
|
Total lease liabilities
|
$
|
360,018
|
|
|
|
||
Weighted average remaining lease term
|
6.7 years
|
|
|
|
|
||
Weighted average discount rate
|
8.1
|
%
|
|
For the Three Months Ended
June 30, 2019
|
|
For the Six Months Ended
June 30, 2019
|
||||
|
(In thousands)
|
||||||
Cash paid for amounts included in the measurement of operating lease liabilities
|
$
|
26,743
|
|
|
$
|
53,169
|
|
Right-of-use assets obtained in exchange for new operating lease liabilities
|
$
|
6,617
|
|
|
$
|
7,431
|
|
Years Ending December 31,
|
|
Lease Liabilities
|
||
|
|
(In thousands)
|
||
2019 (excluding the six months ended June 30, 2019)
|
|
$
|
51,442
|
|
2020
|
|
93,318
|
|
|
2021
|
|
78,005
|
|
|
2022
|
|
57,874
|
|
|
2023
|
|
43,129
|
|
|
Thereafter
|
|
151,103
|
|
|
|
|
474,871
|
|
|
Less: imputed interest
|
|
(114,853
|
)
|
|
|
|
$
|
360,018
|
|
|
Capital
Leases |
|
Operating
Leases |
||||
|
(In thousands)
|
||||||
2019
|
$
|
294
|
|
|
$
|
110,794
|
|
2020
|
25
|
|
|
83,566
|
|
||
2021
|
—
|
|
|
72,606
|
|
||
2022
|
—
|
|
|
59,191
|
|
||
2023
|
—
|
|
|
56,123
|
|
||
Thereafter
|
—
|
|
|
133,716
|
|
||
|
$
|
319
|
|
(a)
|
$
|
515,996
|
|
(a)
|
Includes minimal imputed interest.
|
6.
|
Goodwill
|
|
December 31,
2018 |
|
Currency
Exchange Rate Impact |
|
June 30,
2019 |
||||||
|
(In thousands)
|
||||||||||
North America
|
$
|
731,234
|
|
|
$
|
(157
|
)
|
|
$
|
731,077
|
|
International
|
447,619
|
|
|
(210
|
)
|
|
447,409
|
|
|||
American Girl
|
207,571
|
|
|
—
|
|
|
207,571
|
|
|||
|
$
|
1,386,424
|
|
|
$
|
(367
|
)
|
|
$
|
1,386,057
|
|
7.
|
Other Noncurrent Assets
|
|
June 30,
2019 |
|
June 30,
2018 |
|
December 31,
2018 |
||||||
|
(In thousands)
|
||||||||||
Identifiable intangible assets (net of accumulated amortization of $228.2 million, $179.5 million, and $207.9 million, respectively)
|
$
|
566,737
|
|
|
$
|
612,234
|
|
|
$
|
587,528
|
|
Deferred income taxes
|
49,937
|
|
|
74,992
|
|
|
49,937
|
|
|||
Other
|
215,453
|
|
|
205,138
|
|
|
209,541
|
|
|||
|
$
|
832,127
|
|
|
$
|
892,364
|
|
|
$
|
847,006
|
|
8.
|
Accrued Liabilities
|
|
June 30,
2019 |
|
June 30,
2018 |
|
December 31,
2018 |
||||||
|
(In thousands)
|
||||||||||
Current lease liabilities
|
$
|
75,071
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Royalties
|
62,781
|
|
|
63,453
|
|
|
108,109
|
|
|||
Advertising and promotion
|
58,276
|
|
|
45,864
|
|
|
86,935
|
|
|||
Taxes other than income taxes
|
26,529
|
|
|
27,819
|
|
|
54,317
|
|
|||
Other
|
367,875
|
|
|
448,449
|
|
|
451,060
|
|
|||
|
$
|
590,532
|
|
|
$
|
585,585
|
|
|
$
|
700,421
|
|
9.
|
Seasonal Financing
|
10.
|
Long-Term Debt
|
|
June 30,
2019 |
|
June 30,
2018 |
|
December 31,
2018 |
||||||
|
(In thousands)
|
||||||||||
2010 Senior Notes due October 2020 and October 2040
|
$
|
500,000
|
|
|
$
|
500,000
|
|
|
$
|
500,000
|
|
2011 Senior Notes due November 2041
|
300,000
|
|
|
300,000
|
|
|
300,000
|
|
|||
2013 Senior Notes due March 2023
|
250,000
|
|
|
250,000
|
|
|
250,000
|
|
|||
2016 Senior Notes due August 2021
|
350,000
|
|
|
350,000
|
|
|
350,000
|
|
|||
2017/2018 Senior Notes due December 2025
|
1,500,000
|
|
|
1,500,000
|
|
|
1,500,000
|
|
|||
Debt issuance costs and debt discount
|
(44,806
|
)
|
|
(51,823
|
)
|
|
(48,277
|
)
|
|||
|
2,855,194
|
|
|
2,848,177
|
|
|
2,851,723
|
|
|||
Less: current portion
|
—
|
|
|
—
|
|
|
—
|
|
|||
|
$
|
2,855,194
|
|
|
$
|
2,848,177
|
|
|
$
|
2,851,723
|
|
11.
|
Other Noncurrent Liabilities
|
|
June 30,
2019 |
|
June 30,
2018 |
|
December 31,
2018 |
||||||
|
(In thousands)
|
||||||||||
Benefit plan liabilities
|
$
|
184,220
|
|
|
$
|
179,473
|
|
|
$
|
166,289
|
|
Noncurrent tax liabilities
|
138,018
|
|
|
122,425
|
|
|
150,960
|
|
|||
Other
|
88,333
|
|
|
141,951
|
|
|
152,420
|
|
|||
|
$
|
410,571
|
|
|
$
|
443,849
|
|
|
$
|
469,669
|
|
12.
|
Accumulated Other Comprehensive Income (Loss)
|
|
For the Three Months Ended June 30, 2019
|
||||||||||||||||||
|
Derivative
Instruments |
|
Available-for-Sale Security
|
|
Defined Benefit
Pension Plans |
|
Currency
Translation Adjustments |
|
Total
|
||||||||||
|
(In thousands)
|
||||||||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax, as of March 31, 2019
|
$
|
16,470
|
|
|
$
|
(4,670
|
)
|
|
$
|
(142,540
|
)
|
|
$
|
(707,194
|
)
|
|
$
|
(837,934
|
)
|
Other comprehensive income (loss) before reclassifications
|
3,254
|
|
|
(1,944
|
)
|
|
(618
|
)
|
|
(1,170
|
)
|
|
(478
|
)
|
|||||
Amounts reclassified from accumulated other comprehensive income (loss)
|
(2,492
|
)
|
|
—
|
|
|
1,242
|
|
|
—
|
|
|
(1,250
|
)
|
|||||
Net increase (decrease) in other comprehensive income (loss)
|
762
|
|
|
(1,944
|
)
|
|
624
|
|
|
(1,170
|
)
|
|
(1,728
|
)
|
|||||
Accumulated Other Comprehensive Income (Loss), Net of Tax, as of June 30, 2019
|
$
|
17,232
|
|
|
$
|
(6,614
|
)
|
|
$
|
(141,916
|
)
|
|
$
|
(708,364
|
)
|
|
$
|
(839,662
|
)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
For the Six Months Ended June 30, 2019
|
||||||||||||||||||
|
Derivative
Instruments |
|
Available-for-Sale Security
|
|
Defined Benefit
Pension Plans |
|
Currency
Translation Adjustments |
|
Total
|
||||||||||
|
(In thousands)
|
||||||||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax, as of December 31, 2018
|
$
|
11,411
|
|
|
$
|
(6,547
|
)
|
|
$
|
(142,763
|
)
|
|
$
|
(721,327
|
)
|
|
$
|
(859,226
|
)
|
Other comprehensive income (loss) before reclassifications
|
9,072
|
|
|
(67
|
)
|
|
(1,824
|
)
|
|
12,963
|
|
|
20,144
|
|
|||||
Amounts reclassified from accumulated other comprehensive income (loss)
|
(3,251
|
)
|
|
—
|
|
|
2,671
|
|
|
—
|
|
|
(580
|
)
|
|||||
Net increase (decrease) in other comprehensive income (loss)
|
5,821
|
|
|
(67
|
)
|
|
847
|
|
|
12,963
|
|
|
19,564
|
|
|||||
Accumulated Other Comprehensive Income (Loss), Net of Tax, as of June 30, 2019
|
$
|
17,232
|
|
|
$
|
(6,614
|
)
|
|
$
|
(141,916
|
)
|
|
$
|
(708,364
|
)
|
|
$
|
(839,662
|
)
|
|
For the Three Months Ended June 30, 2018
|
||||||||||||||||||
|
Derivative
Instruments |
|
Available-for-Sale Security
|
|
Defined Benefit
Pension Plans |
|
Currency
Translation Adjustments |
|
Total
|
||||||||||
|
(In thousands)
|
||||||||||||||||||
Accumulated Other Comprehensive Loss, Net of Tax, as of March 31, 2018
|
$
|
(21,986
|
)
|
|
$
|
(2,879
|
)
|
|
$
|
(141,597
|
)
|
|
$
|
(572,687
|
)
|
|
$
|
(739,149
|
)
|
Other comprehensive income (loss) before reclassifications
|
17,652
|
|
|
(2,709
|
)
|
|
(2,899
|
)
|
|
(105,727
|
)
|
|
(93,683
|
)
|
|||||
Amounts reclassified from accumulated other comprehensive loss
|
4,786
|
|
|
—
|
|
|
3,968
|
|
|
—
|
|
|
8,754
|
|
|||||
Net increase (decrease) in other comprehensive income (loss)
|
22,438
|
|
|
(2,709
|
)
|
|
1,069
|
|
|
(105,727
|
)
|
|
(84,929
|
)
|
|||||
Accumulated Other Comprehensive Income (Loss), Net of Tax, as of June 30, 2018
|
$
|
452
|
|
|
$
|
(5,588
|
)
|
|
$
|
(140,528
|
)
|
|
$
|
(678,414
|
)
|
|
$
|
(824,078
|
)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
For the Six Months Ended June 30, 2018
|
||||||||||||||||||
|
Derivative
Instruments |
|
Available-for-Sale Security
|
|
Defined Benefit
Pension Plans |
|
Currency
Translation Adjustments |
|
Total
|
||||||||||
|
(In thousands)
|
||||||||||||||||||
Accumulated Other Comprehensive Loss, Net of Tax, as of December 31, 2017
|
$
|
(21,098
|
)
|
|
$
|
(2,799
|
)
|
|
$
|
(143,213
|
)
|
|
$
|
(614,676
|
)
|
|
$
|
(781,786
|
)
|
Other comprehensive income (loss) before reclassifications
|
12,333
|
|
|
(2,789
|
)
|
|
(3,107
|
)
|
|
(63,738
|
)
|
|
(57,301
|
)
|
|||||
Amounts reclassified from accumulated other comprehensive loss
|
9,217
|
|
|
—
|
|
|
5,792
|
|
|
—
|
|
|
15,009
|
|
|||||
Net increase (decrease) in other comprehensive income (loss)
|
21,550
|
|
|
(2,789
|
)
|
|
2,685
|
|
|
(63,738
|
)
|
|
(42,292
|
)
|
|||||
Accumulated Other Comprehensive Income (Loss), Net of Tax, as of June 30, 2018
|
$
|
452
|
|
|
$
|
(5,588
|
)
|
|
$
|
(140,528
|
)
|
|
$
|
(678,414
|
)
|
|
$
|
(824,078
|
)
|
|
For the Three Months Ended
|
|
|
||||||
|
June 30,
2019 |
|
June 30,
2018 |
|
Statements of Operations
Classification
|
||||
|
(In thousands)
|
|
|
||||||
Derivative Instruments
|
|
||||||||
Gain (loss) on foreign currency forward exchange contracts
|
$
|
2,675
|
|
|
$
|
(4,767
|
)
|
|
Cost of sales
|
Tax effect of net gain (loss)
|
(183
|
)
|
|
(19
|
)
|
|
Provision for income taxes
|
||
|
$
|
2,492
|
|
|
$
|
(4,786
|
)
|
|
Net loss
|
Defined Benefit Pension Plans
|
|
|
|
|
|
||||
Amortization of prior service credit (a)
|
$
|
493
|
|
|
$
|
502
|
|
|
Other non-operating (income) expense, net
|
Recognized actuarial loss (a)
|
(1,735
|
)
|
|
(2,046
|
)
|
|
Other non-operating (income) expense, net
|
||
Settlement loss
|
—
|
|
|
(2,401
|
)
|
|
Other non-operating (income) expense, net
|
||
|
(1,242
|
)
|
|
(3,945
|
)
|
|
|
||
Tax effect of net loss
|
—
|
|
|
(23
|
)
|
|
Provision for income taxes
|
||
|
$
|
(1,242
|
)
|
|
$
|
(3,968
|
)
|
|
Net loss
|
|
|
|
|
|
|
||||
|
For the Six Months Ended
|
|
|
||||||
|
June 30,
2019 |
|
June 30,
2018 |
|
Statements of Operations
Classification
|
||||
|
(In thousands)
|
|
|
||||||
Derivative Instruments
|
|
||||||||
Gain (loss) on foreign currency forward exchange contracts
|
$
|
3,602
|
|
|
$
|
(9,150
|
)
|
|
Cost of sales
|
Tax effect of net gain (loss)
|
(351
|
)
|
|
(67
|
)
|
|
Provision for income taxes
|
||
|
$
|
3,251
|
|
|
$
|
(9,217
|
)
|
|
Net loss
|
Defined Benefit Pension Plans
|
|
|
|
|
|
||||
Amortization of prior service credit (a)
|
$
|
986
|
|
|
$
|
1,003
|
|
|
Other non-operating (income) expense, net
|
Recognized actuarial loss (a)
|
(3,472
|
)
|
|
(4,363
|
)
|
|
Other non-operating (income) expense, net
|
||
Settlement loss
|
—
|
|
|
(2,443
|
)
|
|
Other non-operating (income) expense, net
|
||
|
(2,486
|
)
|
|
(5,803
|
)
|
|
|
||
Tax effect of net loss
|
(185
|
)
|
|
11
|
|
|
Provision for income taxes
|
||
|
$
|
(2,671
|
)
|
|
$
|
(5,792
|
)
|
|
Net loss
|
(a)
|
The amortization of prior service credit and recognized actuarial loss are included in the computation of net periodic benefit cost. Refer to "Note 16 to the Consolidated Financial Statements—Employee Benefit Plans" of this Quarterly Report on Form 10-Q for additional information regarding Mattel's net periodic benefit cost.
|
13.
|
Derivative Instruments
|
|
Derivative Assets
|
||||||||||||
|
Fair Value
|
|
Balance Sheet Classification
|
||||||||||
|
June 30,
2019 |
|
June 30,
2018 |
|
December 31,
2018 |
|
|||||||
|
(In thousands)
|
|
|
||||||||||
Derivatives designated as hedging instruments:
|
|
|
|
|
|
|
|
||||||
Foreign currency forward exchange contracts
|
$
|
13,620
|
|
|
$
|
7,321
|
|
|
$
|
12,122
|
|
|
Prepaid expenses and
other current assets |
Foreign currency forward exchange contracts
|
2,573
|
|
|
2,041
|
|
|
1,613
|
|
|
Other noncurrent assets
|
|||
Total derivatives designated as hedging instruments
|
$
|
16,193
|
|
|
$
|
9,362
|
|
|
$
|
13,735
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Derivatives not designated as hedging instruments:
|
|
|
|
|
|
|
|
||||||
Foreign currency forward exchange contracts
|
$
|
929
|
|
|
$
|
1,418
|
|
|
$
|
2,357
|
|
|
Prepaid expenses and
other current assets |
|
$
|
17,122
|
|
|
$
|
10,780
|
|
|
$
|
16,092
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Derivative Liabilities
|
||||||||||||
|
Fair Value
|
|
Balance Sheet Classification
|
||||||||||
|
June 30,
2019 |
|
June 30,
2018 |
|
December 31,
2018 |
|
|||||||
|
(In thousands)
|
|
|
||||||||||
Derivatives designated as hedging instruments:
|
|
|
|
|
|
|
|
||||||
Foreign currency forward exchange contracts
|
$
|
949
|
|
|
$
|
6,535
|
|
|
$
|
954
|
|
|
Accrued liabilities
|
Foreign currency forward exchange contracts
|
363
|
|
|
195
|
|
|
185
|
|
|
Other noncurrent liabilities
|
|||
Total derivatives designated as hedging instruments
|
$
|
1,312
|
|
|
$
|
6,730
|
|
|
$
|
1,139
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Derivatives not designated as hedging instruments:
|
|
|
|
|
|
|
|
||||||
Foreign currency forward exchange contracts
|
$
|
467
|
|
|
$
|
630
|
|
|
$
|
1,771
|
|
|
Accrued liabilities
|
|
$
|
1,779
|
|
|
$
|
7,360
|
|
|
$
|
2,910
|
|
|
|
|
For the Three Months Ended
|
|
|
||||||||||||||
|
June 30, 2019
|
|
June 30, 2018
|
|
Statements of
Operations
Classification
|
||||||||||||
|
Amount of Gain Recognized in OCI
|
|
Amount of Gain Reclassified from Accumulated OCI to Statement of Operations
|
|
Amount of Gain Recognized in OCI
|
|
Amount of (Loss) Reclassified from Accumulated OCI to Statement of Operations
|
|
|||||||||
|
(In thousands)
|
|
|
||||||||||||||
Derivatives designated as hedging instruments:
|
|
|
|
|
|
|
|
|
|||||||||
Foreign currency forward exchange contracts
|
$
|
3,254
|
|
|
$
|
2,492
|
|
|
$
|
17,652
|
|
|
$
|
(4,786
|
)
|
|
Cost of sales
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
For the Six Months Ended
|
|
|
||||||||||||||
|
June 30, 2019
|
|
June 30, 2018
|
|
Statements of
Operations
Classification
|
||||||||||||
|
Amount of Gain Recognized in OCI
|
|
Amount of Gain Reclassified from Accumulated OCI to Statement of Operations
|
|
Amount of Gain Recognized in OCI
|
|
Amount of (Loss) Reclassified from Accumulated OCI to Statement of Operations
|
|
|||||||||
|
(In thousands)
|
|
|
||||||||||||||
Derivatives designated as hedging instruments:
|
|
|
|
|
|
|
|
|
|||||||||
Foreign currency forward exchange contracts
|
$
|
9,072
|
|
|
$
|
3,251
|
|
|
$
|
12,333
|
|
|
$
|
(9,217
|
)
|
|
Cost of sales
|
|
Amount of Gain (Loss) Recognized in the Statements of Operations
|
|
Statements of Operations
Classification
|
||||||
|
For the Three Months Ended
|
|
|||||||
|
June 30,
2019 |
|
June 30,
2018 |
|
|||||
|
(In thousands)
|
|
|
||||||
Derivatives not designated as hedging instruments:
|
|
||||||||
Foreign currency forward exchange contracts
|
$
|
4,366
|
|
|
$
|
(31,552
|
)
|
|
Other non-operating (income) expense, net
|
Foreign currency forward exchange contracts
|
—
|
|
|
(248
|
)
|
|
Cost of sales
|
||
|
$
|
4,366
|
|
|
$
|
(31,800
|
)
|
|
|
|
|
|
|
|
|
||||
|
Amount of Gain (Loss) Recognized in the Statements of Operations
|
|
Statements of Operations
Classification
|
||||||
|
For the Six Months Ended
|
|
|||||||
|
June 30,
2019 |
|
June 30,
2018 |
|
|||||
|
(In thousands)
|
|
|
||||||
Derivatives not designated as hedging instruments:
|
|
||||||||
Foreign currency forward exchange contracts
|
$
|
3,868
|
|
|
$
|
(16,864
|
)
|
|
Other non-operating (income) expense, net
|
Foreign currency forward exchange contracts
|
—
|
|
|
(248
|
)
|
|
Cost of sales
|
||
|
$
|
3,868
|
|
|
$
|
(17,112
|
)
|
|
|
14.
|
Fair Value Measurements
|
•
|
Level 1 – Valuations based on unadjusted quoted prices in active markets for identical assets or liabilities that the entity has the ability to access.
|
•
|
Level 2 – Valuations based on quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable data for substantially the full term of the assets or liabilities.
|
•
|
Level 3 – Valuations based on inputs that are unobservable, supported by little or no market activity, and that are significant to the fair value of the assets or liabilities.
|
|
June 30, 2019
|
||||||||||||||
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
|
(In thousands)
|
||||||||||||||
Assets:
|
|
|
|
|
|
|
|
||||||||
Foreign currency forward exchange contracts (a)
|
$
|
—
|
|
|
$
|
17,122
|
|
|
$
|
—
|
|
|
$
|
17,122
|
|
Available-for-sale security (b)
|
5,206
|
|
|
—
|
|
|
—
|
|
|
5,206
|
|
||||
Total assets
|
$
|
5,206
|
|
|
$
|
17,122
|
|
|
$
|
—
|
|
|
$
|
22,328
|
|
Liabilities:
|
|
|
|
|
|
|
|
||||||||
Foreign currency forward exchange contracts (a)
|
$
|
—
|
|
|
$
|
1,779
|
|
|
$
|
—
|
|
|
$
|
1,779
|
|
|
|
|
|
|
|
|
|
||||||||
|
June 30, 2018
|
||||||||||||||
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
|
(In thousands)
|
||||||||||||||
Assets:
|
|
|
|
|
|
|
|
||||||||
Foreign currency forward exchange contracts (a)
|
$
|
—
|
|
|
$
|
10,780
|
|
|
$
|
—
|
|
|
$
|
10,780
|
|
Available-for-sale security (b)
|
6,201
|
|
|
—
|
|
|
—
|
|
|
6,201
|
|
||||
Total assets
|
$
|
6,201
|
|
|
$
|
10,780
|
|
|
$
|
—
|
|
|
$
|
16,981
|
|
Liabilities:
|
|
|
|
|
|
|
|
||||||||
Foreign currency forward exchange contracts (a)
|
$
|
—
|
|
|
$
|
7,360
|
|
|
$
|
—
|
|
|
$
|
7,360
|
|
|
|
|
|
|
|
|
|
||||||||
|
December 31, 2018
|
||||||||||||||
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
|
(In thousands)
|
||||||||||||||
Assets:
|
|
|
|
|
|
|
|
||||||||
Foreign currency forward exchange contracts (a)
|
$
|
—
|
|
|
$
|
16,092
|
|
|
$
|
—
|
|
|
$
|
16,092
|
|
Available-for-sale security (b)
|
5,243
|
|
|
—
|
|
|
—
|
|
|
5,243
|
|
||||
Total assets
|
$
|
5,243
|
|
|
$
|
16,092
|
|
|
$
|
—
|
|
|
$
|
21,335
|
|
Liabilities:
|
|
|
|
|
|
|
|
||||||||
Foreign currency forward exchange contracts (a)
|
$
|
—
|
|
|
$
|
2,910
|
|
|
$
|
—
|
|
|
$
|
2,910
|
|
(a)
|
The fair value of the foreign currency forward exchange contracts is based on dealer quotes of market forward rates and reflects the amount that Mattel would receive or pay at their maturity dates for contracts involving the same notional amounts, currencies, and maturity dates.
|
(b)
|
The fair value of the available-for-sale security is based on the quoted price on an active public exchange.
|
15.
|
Earnings Per Share
|
|
For the Three Months Ended
|
|
For the Six Months Ended
|
||||||||||||
|
June 30,
2019 |
|
June 30,
2018 |
|
June 30,
2019 |
|
June 30,
2018 |
||||||||
|
(In thousands, except per share amounts)
|
||||||||||||||
Basic:
|
|
|
|
|
|
|
|
||||||||
Net loss
|
$
|
(107,987
|
)
|
|
$
|
(240,931
|
)
|
|
$
|
(291,705
|
)
|
|
$
|
(552,184
|
)
|
Less: Net loss allocable to participating RSUs (a)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Net loss available for basic common shares
|
$
|
(107,987
|
)
|
|
$
|
(240,931
|
)
|
|
$
|
(291,705
|
)
|
|
$
|
(552,184
|
)
|
Weighted average number of common shares
|
345,941
|
|
|
344,584
|
|
|
345,946
|
|
|
344,507
|
|
||||
Basic net loss per common share
|
$
|
(0.31
|
)
|
|
$
|
(0.70
|
)
|
|
$
|
(0.84
|
)
|
|
$
|
(1.60
|
)
|
Diluted:
|
|
|
|
|
|
|
|
||||||||
Net loss
|
$
|
(107,987
|
)
|
|
$
|
(240,931
|
)
|
|
$
|
(291,705
|
)
|
|
$
|
(552,184
|
)
|
Less: Net loss allocable to participating RSUs (a)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Net loss available for diluted common shares
|
$
|
(107,987
|
)
|
|
$
|
(240,931
|
)
|
|
$
|
(291,705
|
)
|
|
$
|
(552,184
|
)
|
Weighted average number of common shares
|
345,941
|
|
|
344,584
|
|
|
345,946
|
|
|
344,507
|
|
||||
Weighted average common equivalent shares arising from:
|
|
|
|
|
|
|
|
||||||||
Dilutive stock options and non-participating RSUs (b)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Weighted average number of common and potential common shares
|
345,941
|
|
|
344,584
|
|
|
345,946
|
|
|
344,507
|
|
||||
Diluted net loss per common share
|
$
|
(0.31
|
)
|
|
$
|
(0.70
|
)
|
|
$
|
(0.84
|
)
|
|
$
|
(1.60
|
)
|
(a)
|
Mattel did not have participating RSUs for the three and six months ended June 30, 2019. For the three and six months ended June 30, 2018, Mattel did not allocate its net loss to its participating RSUs as its participating RSUs were not obligated to share in the losses of the Company.
|
(b)
|
Mattel was in a net loss position for the three and six months ended June 30, 2019 and 2018, and, accordingly, all outstanding nonqualified stock options and non-participating RSUs were excluded from the calculation of diluted earnings per common share because their effect would be antidilutive.
|
16.
|
Employee Benefit Plans
|
|
For the Three Months Ended
|
|
For the Six Months Ended
|
||||||||||||
|
June 30,
2019 |
|
June 30,
2018 |
|
June 30,
2019 |
|
June 30,
2018 |
||||||||
|
(In thousands)
|
||||||||||||||
Service cost
|
$
|
1,678
|
|
|
$
|
1,108
|
|
|
$
|
2,634
|
|
|
$
|
2,192
|
|
Interest cost
|
4,826
|
|
|
4,555
|
|
|
9,666
|
|
|
9,197
|
|
||||
Expected return on plan assets
|
(5,434
|
)
|
|
(5,657
|
)
|
|
(10,878
|
)
|
|
(11,331
|
)
|
||||
Amortization of prior service cost
|
16
|
|
|
8
|
|
|
32
|
|
|
16
|
|
||||
Recognized actuarial loss
|
1,831
|
|
|
2,126
|
|
|
3,664
|
|
|
4,523
|
|
||||
Settlement loss
|
—
|
|
|
2,401
|
|
|
—
|
|
|
2,443
|
|
||||
|
$
|
2,917
|
|
|
$
|
4,541
|
|
|
$
|
5,118
|
|
|
$
|
7,040
|
|
|
For the Three Months Ended
|
|
For the Six Months Ended
|
||||||||||||
|
June 30,
2019 |
|
June 30,
2018 |
|
June 30,
2019 |
|
June 30,
2018 |
||||||||
|
(In thousands)
|
||||||||||||||
Service cost
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1
|
|
Interest cost
|
50
|
|
|
52
|
|
|
100
|
|
|
104
|
|
||||
Amortization of prior service credit
|
(509
|
)
|
|
(509
|
)
|
|
(1,018
|
)
|
|
(1,019
|
)
|
||||
Recognized actuarial gain
|
(96
|
)
|
|
(80
|
)
|
|
(192
|
)
|
|
(160
|
)
|
||||
|
$
|
(555
|
)
|
|
$
|
(537
|
)
|
|
$
|
(1,110
|
)
|
|
$
|
(1,074
|
)
|
17.
|
Share-Based Payments
|
|
For the Three Months Ended
|
|
For the Six Months Ended
|
||||||||||||
|
June 30,
2019 |
|
June 30,
2018 |
|
June 30,
2019 |
|
June 30,
2018 |
||||||||
|
(In thousands)
|
||||||||||||||
Stock option compensation expense
|
$
|
2,168
|
|
|
$
|
690
|
|
|
$
|
4,574
|
|
|
$
|
3,374
|
|
RSU compensation expense (a)
|
10,277
|
|
|
7,304
|
|
|
19,736
|
|
|
19,043
|
|
||||
|
$
|
12,445
|
|
|
$
|
7,994
|
|
|
$
|
24,310
|
|
|
$
|
22,417
|
|
(a)
|
Includes compensation expense of $1.3 million and $2.1 million associated with Mattel's long-term incentive programs for the three and six months ended June 30, 2019, respectively.
|
18.
|
Other Selling and Administrative Expenses
|
|
For the Three Months Ended
|
|
For the Six Months Ended
|
||||||||||||
|
June 30,
2019 |
|
June 30,
2018 |
|
June 30,
2019 |
|
June 30,
2018 |
||||||||
|
(In thousands)
|
||||||||||||||
Design and development
|
$
|
52,186
|
|
|
$
|
54,081
|
|
|
$
|
94,631
|
|
|
$
|
106,221
|
|
Identifiable intangible asset amortization
|
$
|
9,909
|
|
|
$
|
9,532
|
|
|
$
|
20,338
|
|
|
$
|
19,730
|
|
19.
|
Foreign Currency Transaction Exposure
|
|
For the Three Months Ended
|
|
For the Six Months Ended
|
||||||||||||
|
June 30,
2019 |
|
June 30,
2018 |
|
June 30,
2019 |
|
June 30,
2018 |
||||||||
|
(In thousands)
|
||||||||||||||
Operating income (loss)
|
$
|
672
|
|
|
$
|
(12,274
|
)
|
|
$
|
(3,098
|
)
|
|
$
|
(4,541
|
)
|
Other non-operating income (expense), net
|
1,117
|
|
|
446
|
|
|
(551
|
)
|
|
1,033
|
|
||||
Currency transaction gains (losses), net
|
$
|
1,789
|
|
|
$
|
(11,828
|
)
|
|
$
|
(3,649
|
)
|
|
$
|
(3,508
|
)
|
20.
|
Restructuring Charges
|
•
|
Reducing manufacturing complexity, including SKU reduction, and implementing process improvement initiatives at owned and co-manufacturing facilities;
|
•
|
Streamlining the organizational structure and reducing headcount expense to better align with the revenue base; and
|
•
|
Optimizing advertising spend.
|
|
Liability at December 31, 2018
|
|
Charges
|
|
Payments/Utilization
|
|
Liability at
June 30, 2019
|
||||||||
|
(In thousands)
|
||||||||||||||
Severance
|
$
|
27,670
|
|
|
$
|
7,174
|
|
|
$
|
(22,398
|
)
|
|
$
|
12,446
|
|
Other restructuring costs (a)
|
13,722
|
|
|
7,982
|
|
|
(13,742
|
)
|
|
7,962
|
|
||||
|
$
|
41,392
|
|
|
$
|
15,156
|
|
|
$
|
(36,140
|
)
|
|
$
|
20,408
|
|
(a)
|
Consists primarily of consulting fees.
|
|
Liability at December 31, 2018
|
|
Charges
|
|
Payments/Utilization
|
|
Liability at
June 30, 2019
|
||||||||
|
(In thousands)
|
||||||||||||||
Severance
|
$
|
—
|
|
|
$
|
7,971
|
|
|
$
|
—
|
|
|
$
|
7,971
|
|
Other restructuring costs (a)
|
—
|
|
|
3,483
|
|
|
(3,483
|
)
|
|
—
|
|
||||
|
$
|
—
|
|
|
$
|
11,454
|
|
|
$
|
(3,483
|
)
|
|
$
|
7,971
|
|
(a)
|
Consists primarily of plant restructuring non-cash charges.
|
21.
|
Income Taxes
|
22.
|
Contingencies
|
23.
|
Segment Information
|
|
For the Three Months Ended
|
|
For the Six Months Ended
|
||||||||||||
|
June 30,
2019 |
|
June 30,
2018 |
|
June 30,
2019 |
|
June 30,
2018 |
||||||||
|
(In thousands)
|
||||||||||||||
Revenues by Segment
|
|
|
|
|
|
|
|
||||||||
North America
|
$
|
447,354
|
|
|
$
|
442,883
|
|
|
$
|
816,745
|
|
|
$
|
791,273
|
|
International
|
480,507
|
|
|
466,676
|
|
|
845,685
|
|
|
850,810
|
|
||||
American Girl
|
34,405
|
|
|
44,561
|
|
|
79,962
|
|
|
112,048
|
|
||||
Gross sales
|
962,266
|
|
|
954,120
|
|
|
1,742,392
|
|
|
1,754,131
|
|
||||
Sales adjustments
|
(102,203
|
)
|
|
(113,372
|
)
|
|
(193,083
|
)
|
|
(205,011
|
)
|
||||
Net sales
|
$
|
860,063
|
|
|
$
|
840,748
|
|
|
$
|
1,549,309
|
|
|
$
|
1,549,120
|
|
|
For the Three Months Ended
|
|
For the Six Months Ended
|
||||||||||||
|
June 30,
2019 |
|
June 30,
2018 |
|
June 30,
2019 |
|
June 30,
2018 |
||||||||
|
(In thousands)
|
||||||||||||||
Segment Income (Loss)
|
|
|
|
|
|
|
|
||||||||
North America (a)
|
$
|
28,297
|
|
|
$
|
(25,940
|
)
|
|
$
|
6,712
|
|
|
$
|
(132,690
|
)
|
International (a)
|
(3,507
|
)
|
|
(49,740
|
)
|
|
(27,810
|
)
|
|
(122,005
|
)
|
||||
American Girl (a)
|
(16,305
|
)
|
|
(16,222
|
)
|
|
(30,559
|
)
|
|
(31,065
|
)
|
||||
|
8,485
|
|
|
(91,902
|
)
|
|
(51,657
|
)
|
|
(285,760
|
)
|
||||
Corporate and other expense (b)
|
(59,901
|
)
|
|
(97,289
|
)
|
|
(130,718
|
)
|
|
(180,012
|
)
|
||||
Operating loss
|
(51,416
|
)
|
|
(189,191
|
)
|
|
(182,375
|
)
|
|
(465,772
|
)
|
||||
Interest expense
|
46,234
|
|
|
43,467
|
|
|
93,192
|
|
|
84,546
|
|
||||
Interest (income)
|
(1,532
|
)
|
|
(1,699
|
)
|
|
(3,804
|
)
|
|
(4,846
|
)
|
||||
Other non-operating (income) expense, net
|
(294
|
)
|
|
3,063
|
|
|
1,610
|
|
|
2,455
|
|
||||
Loss before income taxes
|
$
|
(95,824
|
)
|
|
$
|
(234,022
|
)
|
|
$
|
(273,373
|
)
|
|
$
|
(547,927
|
)
|
(a)
|
Segment income (loss) for the three and six months ended June 30, 2019 included charges of $3.1 million and $30.4 million, respectively, attributable to the inclined sleeper product recalls, substantially all of which was recorded in the North America segment. Segment income (loss) for the three and six months ended June 30, 2018 included $(7.0) million and $79.8 million, respectively, of net sales reversal and bad debt expense, net attributable to the Toys "R" Us liquidation. Of the $79.8 million of charges recognized for the six months ended June 30, 2018, $68.5 million, $9.6 million, and $1.7 million was recorded in the North America, International, and American Girl segments, respectively.
|
(b)
|
Corporate and other expense included severance and restructuring charges of $14.4 million and $23.1 million for the three and six months ended June 30, 2019, respectively, and $47.8 million and $72.7 million for the three and six months ended June 30, 2018, respectively, and share-based compensation expense of $12.4 million and $24.3 million for the three and six months ended June 30, 2019, respectively, and $8.0 million and $22.4 million for the three and six months ended June 30, 2018, respectively.
|
|
June 30,
2019 |
|
June 30,
2018 |
|
December 31,
2018 |
||||||
|
(In thousands)
|
||||||||||
Assets by Segment
|
|
|
|
|
|
||||||
North America
|
$
|
622,614
|
|
|
$
|
591,273
|
|
|
$
|
615,654
|
|
International
|
677,958
|
|
|
692,341
|
|
|
728,870
|
|
|||
American Girl
|
42,681
|
|
|
78,315
|
|
|
43,748
|
|
|||
|
1,343,253
|
|
|
1,361,929
|
|
|
1,388,272
|
|
|||
Corporate and other
|
134,839
|
|
|
133,423
|
|
|
124,700
|
|
|||
Accounts receivable and inventories, net
|
$
|
1,478,092
|
|
|
$
|
1,495,352
|
|
|
$
|
1,512,972
|
|
|
For the Three Months Ended
|
|
For the Six Months Ended
|
||||||||||||
|
June 30,
2019 |
|
June 30,
2018 |
|
June 30,
2019 |
|
June 30,
2018 |
||||||||
|
(In thousands)
|
||||||||||||||
Revenues by Categories (a)
|
|
|
|
|
|
|
|
||||||||
Dolls
|
$
|
273,405
|
|
|
$
|
266,632
|
|
|
$
|
526,291
|
|
|
$
|
523,989
|
|
Infant, Toddler, and Preschool
|
251,996
|
|
|
288,002
|
|
|
445,622
|
|
|
514,648
|
|
||||
Vehicles
|
214,137
|
|
|
215,038
|
|
|
397,498
|
|
|
403,971
|
|
||||
Action Figures, Building Sets, and Games
|
222,728
|
|
|
184,448
|
|
|
372,981
|
|
|
311,523
|
|
||||
Gross sales
|
962,266
|
|
|
954,120
|
|
|
1,742,392
|
|
|
1,754,131
|
|
||||
Sales adjustments
|
(102,203
|
)
|
|
(113,372
|
)
|
|
(193,083
|
)
|
|
(205,011
|
)
|
||||
Net sales
|
$
|
860,063
|
|
|
$
|
840,748
|
|
|
$
|
1,549,309
|
|
|
$
|
1,549,120
|
|
(a)
|
Mattel modified its reporting structure for revenues in the first quarter of 2019 to disclose revenues by categories.
|
|
For the Three Months Ended
|
|
For the Six Months Ended
|
||||||||||||
|
June 30,
2019 |
|
June 30,
2018 |
|
June 30,
2019 |
|
June 30,
2018 |
||||||||
|
(In thousands)
|
||||||||||||||
Revenues by Top 3 Power Brands
|
|
|
|
|
|
|
|
||||||||
Barbie
|
$
|
186,531
|
|
|
$
|
170,733
|
|
|
$
|
350,009
|
|
|
$
|
323,424
|
|
Hot Wheels
|
175,199
|
|
|
167,306
|
|
|
325,735
|
|
|
312,246
|
|
||||
Fisher-Price and Thomas & Friends
|
222,409
|
|
|
236,176
|
|
|
394,807
|
|
|
423,971
|
|
||||
Other
|
378,127
|
|
|
379,905
|
|
|
671,841
|
|
|
694,490
|
|
||||
Gross sales
|
962,266
|
|
|
954,120
|
|
|
1,742,392
|
|
|
1,754,131
|
|
||||
Sales adjustments
|
(102,203
|
)
|
|
(113,372
|
)
|
|
(193,083
|
)
|
|
(205,011
|
)
|
||||
Net sales
|
$
|
860,063
|
|
|
$
|
840,748
|
|
|
$
|
1,549,309
|
|
|
$
|
1,549,120
|
|
|
For the Three Months Ended
|
|
For the Six Months Ended
|
||||||||||||
|
June 30,
2019 |
|
June 30,
2018 |
|
June 30,
2019 |
|
June 30,
2018 |
||||||||
|
(In thousands)
|
||||||||||||||
Revenues
|
|
|
|
|
|
|
|
||||||||
North America
|
$
|
481,759
|
|
|
$
|
487,444
|
|
|
$
|
896,707
|
|
|
$
|
903,321
|
|
International (a)
|
|
|
|
|
|
|
|
||||||||
EMEA
|
234,107
|
|
|
219,525
|
|
|
450,456
|
|
|
449,069
|
|
||||
Latin America
|
141,310
|
|
|
138,550
|
|
|
216,560
|
|
|
213,018
|
|
||||
Asia Pacific
|
105,090
|
|
|
108,601
|
|
|
178,669
|
|
|
188,723
|
|
||||
Total International
|
480,507
|
|
|
466,676
|
|
|
845,685
|
|
|
850,810
|
|
||||
Gross sales
|
962,266
|
|
|
954,120
|
|
|
1,742,392
|
|
|
1,754,131
|
|
||||
Sales adjustments
|
(102,203
|
)
|
|
(113,372
|
)
|
|
(193,083
|
)
|
|
(205,011
|
)
|
||||
Net sales
|
$
|
860,063
|
|
|
$
|
840,748
|
|
|
$
|
1,549,309
|
|
|
$
|
1,549,120
|
|
(a)
|
Mattel reorganized its regional sales reporting structure in the first quarter of 2019. As a result, the new regions are Europe, the Middle East, and Africa ("EMEA"), Latin America, and Asia Pacific. The Middle East, Africa, Russia, and Turkey were previously included in the Asia Pacific region (previously Global Emerging Markets) and are now included in EMEA (previously Europe). Prior period amounts have been reclassified to conform to the current period presentation.
|
24.
|
New Accounting Pronouncements
|
•
|
In the short- to mid-term, restore profitability by reshaping operations and regain topline growth by growing Mattel's Power Brands (Barbie, Hot Wheels, Fisher-Price and Thomas & Friends, and American Girl) and expanding Mattel's brand portfolio.
|
•
|
In the mid- to long-term, capture the full value of Mattel's IP through franchise management and the development of Mattel's online retail and e-commerce capabilities.
|
|
For the Three Months Ended
|
|
Year/Year Change
|
||||||||||||||||
June 30, 2019
|
|
June 30, 2018
|
|
||||||||||||||||
Amount
|
|
% of Net
Sales |
|
Amount
|
|
% of Net
Sales |
|
%
|
|
Basis Points
of Net Sales |
|||||||||
|
(In millions, except percentage and basis point information)
|
||||||||||||||||||
Net sales
|
$
|
860.1
|
|
|
100.0
|
%
|
|
$
|
840.7
|
|
|
100.0
|
%
|
|
2
|
%
|
|
—
|
|
Gross profit
|
$
|
341.4
|
|
|
39.7
|
%
|
|
$
|
253.2
|
|
|
30.1
|
%
|
|
35
|
%
|
|
960
|
|
Advertising and promotion expenses
|
84.5
|
|
|
9.8
|
%
|
|
82.4
|
|
|
9.8
|
%
|
|
3
|
%
|
|
—
|
|
||
Other selling and administrative expenses
|
308.3
|
|
|
35.8
|
%
|
|
360.0
|
|
|
42.8
|
%
|
|
-14
|
%
|
|
-700
|
|
||
Operating loss
|
(51.4
|
)
|
|
-6.0
|
%
|
|
(189.2
|
)
|
|
-22.5
|
%
|
|
-73
|
%
|
|
1,650
|
|
||
Interest expense
|
46.2
|
|
|
5.4
|
%
|
|
43.5
|
|
|
5.2
|
%
|
|
6
|
%
|
|
20
|
|
||
Interest (income)
|
(1.5
|
)
|
|
-0.2
|
%
|
|
(1.7
|
)
|
|
-0.2
|
%
|
|
-10
|
%
|
|
—
|
|
||
Other non-operating (income) expense, net
|
(0.3
|
)
|
|
|
|
3.1
|
|
|
|
|
|
|
|
||||||
Loss before income taxes
|
$
|
(95.8
|
)
|
|
-11.1
|
%
|
|
$
|
(234.0
|
)
|
|
-27.8
|
%
|
|
-59
|
%
|
|
1,670
|
|
|
For the Three Months Ended
|
|
% Change as
Reported |
|
Currency
Exchange Rate Impact |
||||||||
|
June 30,
2019 |
|
June 30,
2018 |
|
|||||||||
|
(In millions, except percentage information)
|
||||||||||||
Revenues by Categories (a)
|
|
|
|
|
|
|
|
||||||
Dolls
|
$
|
273.4
|
|
|
$
|
266.6
|
|
|
3
|
%
|
|
-3
|
%
|
Infant, Toddler, and Preschool
|
252.0
|
|
|
288.0
|
|
|
-13
|
%
|
|
-2
|
%
|
||
Vehicles
|
214.1
|
|
|
215.0
|
|
|
—
|
%
|
|
-3
|
%
|
||
Action Figures, Building Sets, and Games
|
222.7
|
|
|
184.4
|
|
|
21
|
%
|
|
-2
|
%
|
||
Gross Sales
|
$
|
962.3
|
|
|
$
|
954.1
|
|
|
1
|
%
|
|
-3
|
%
|
Sales Adjustments
|
(102.2
|
)
|
|
(113.4
|
)
|
|
|
|
|
||||
Net Sales
|
$
|
860.1
|
|
|
$
|
840.7
|
|
|
2
|
%
|
|
-3
|
%
|
|
|
|
|
|
|
|
|
||||||
Supplemental Revenue Disclosure:
|
|
|
|
|
|
|
|
||||||
Revenues by Top 3 Power Brands
|
|
|
|
|
|
|
|
||||||
Barbie
|
$
|
186.5
|
|
|
$
|
170.7
|
|
|
9
|
%
|
|
-4
|
%
|
Hot Wheels
|
175.2
|
|
|
167.3
|
|
|
5
|
%
|
|
-4
|
%
|
||
Fisher-Price and Thomas & Friends
|
222.4
|
|
|
236.2
|
|
|
-6
|
%
|
|
-2
|
%
|
||
Other
|
378.1
|
|
|
379.9
|
|
|
—
|
%
|
|
-2
|
%
|
||
Gross Sales
|
$
|
962.3
|
|
|
$
|
954.1
|
|
|
1
|
%
|
|
-3
|
%
|
|
For the Three Months Ended
|
|
% Change as
Reported |
|
Currency
Exchange Rate Impact |
||||||||
|
June 30,
2019 |
|
June 30,
2018 |
|
|||||||||
|
(In millions, except percentage information)
|
||||||||||||
Revenues by Categories (a)
|
|
|
|
|
|
|
|
||||||
Dolls
|
$
|
93.3
|
|
|
$
|
84.1
|
|
|
11
|
%
|
|
—
|
%
|
Infant, Toddler, and Preschool
|
142.6
|
|
|
161.3
|
|
|
-12
|
%
|
|
-1
|
%
|
||
Vehicles
|
88.6
|
|
|
92.2
|
|
|
-4
|
%
|
|
—
|
%
|
||
Action Figures, Building Sets, and Games
|
122.8
|
|
|
105.3
|
|
|
17
|
%
|
|
—
|
%
|
||
Gross Sales
|
$
|
447.4
|
|
|
$
|
442.9
|
|
|
1
|
%
|
|
—
|
%
|
Sales Adjustments
|
(24.5
|
)
|
|
(30.2
|
)
|
|
|
|
|
||||
Net Sales
|
$
|
422.9
|
|
|
$
|
412.7
|
|
|
2
|
%
|
|
-1
|
%
|
|
|
|
|
|
|
|
|
||||||
Supplemental Revenue Disclosure:
|
|
|
|
|
|
|
|
||||||
Revenues by Top 3 Power Brands
|
|
|
|
|
|
|
|
||||||
Barbie
|
$
|
78.5
|
|
|
$
|
69.2
|
|
|
13
|
%
|
|
-1
|
%
|
Hot Wheels
|
68.6
|
|
|
70.8
|
|
|
-3
|
%
|
|
—
|
%
|
||
Fisher-Price and Thomas & Friends
|
124.6
|
|
|
128.5
|
|
|
-3
|
%
|
|
—
|
%
|
||
Other
|
175.7
|
|
|
174.5
|
|
|
1
|
%
|
|
—
|
%
|
||
Gross Sales
|
$
|
447.4
|
|
|
$
|
442.9
|
|
|
1
|
%
|
|
—
|
%
|
|
% Change in Net Sales as Reported
|
|
Currency Exchange Rate Impact
|
||
Total International (a)
|
5
|
%
|
|
-6
|
%
|
EMEA
|
6
|
%
|
|
-7
|
%
|
Latin America
|
4
|
%
|
|
-5
|
%
|
Asia Pacific
|
4
|
%
|
|
-5
|
%
|
|
% Change in Gross Sales as Reported
|
|
Currency Exchange Rate Impact
|
||
Total International (a)
|
3
|
%
|
|
-6
|
%
|
EMEA
|
7
|
%
|
|
-6
|
%
|
Latin America
|
2
|
%
|
|
-5
|
%
|
Asia Pacific
|
-3
|
%
|
|
-5
|
%
|
(a)
|
Mattel reorganized its regional sales reporting structure in the first quarter of 2019. As a result, the new regions are Europe, the Middle East, and Africa ("EMEA"), Latin America, and Asia Pacific. The Middle East, Africa, Russia, and Turkey were previously included in the Asia Pacific region (previously Global Emerging Markets) and are now included in EMEA (previously Europe). Prior period amounts have been reclassified to conform to the current period presentation. Refer to "Note 23 to the Consolidated Financial Statements—Segment Information" of this Quarterly Report on Form 10-Q for additional information.
|
|
For the Three Months Ended
|
|
% Change as
Reported |
|
Currency
Exchange Rate Impact |
||||||||
|
June 30,
2019 |
|
June 30,
2018 |
|
|||||||||
|
(In millions, except percentage information)
|
||||||||||||
Revenues by Categories (a)
|
|
|
|
|
|
|
|
||||||
Dolls
|
$
|
145.7
|
|
|
$
|
138.1
|
|
|
6
|
%
|
|
-6
|
%
|
Infant, Toddler, and Preschool
|
109.4
|
|
|
126.7
|
|
|
-14
|
%
|
|
-5
|
%
|
||
Vehicles
|
125.5
|
|
|
122.9
|
|
|
2
|
%
|
|
-7
|
%
|
||
Action Figures, Building Sets, and Games
|
99.9
|
|
|
79.1
|
|
|
26
|
%
|
|
-5
|
%
|
||
Gross Sales
|
$
|
480.5
|
|
|
$
|
466.7
|
|
|
3
|
%
|
|
-6
|
%
|
Sales Adjustments
|
(76.9
|
)
|
|
(81.9
|
)
|
|
|
|
|
||||
Net Sales
|
$
|
403.6
|
|
|
$
|
384.8
|
|
|
5
|
%
|
|
-6
|
%
|
|
|
|
|
|
|
|
|
||||||
Supplemental Revenue Disclosure:
|
|
|
|
|
|
|
|
||||||
Revenues by Top 3 Power Brands
|
|
|
|
|
|
|
|
||||||
Barbie
|
$
|
108.1
|
|
|
$
|
101.6
|
|
|
6
|
%
|
|
-7
|
%
|
Hot Wheels
|
106.6
|
|
|
96.5
|
|
|
10
|
%
|
|
-8
|
%
|
||
Fisher-Price and Thomas & Friends
|
97.8
|
|
|
107.7
|
|
|
-9
|
%
|
|
-4
|
%
|
||
Other
|
168.1
|
|
|
160.9
|
|
|
4
|
%
|
|
-5
|
%
|
||
Gross Sales
|
$
|
480.5
|
|
|
$
|
466.7
|
|
|
3
|
%
|
|
-6
|
%
|
|
For the Three Months Ended
|
|
% Change as
Reported |
|
Currency
Exchange Rate Impact |
||||||||
|
June 30,
2019 |
|
June 30,
2018 |
|
|||||||||
|
(In millions, except percentage information)
|
||||||||||||
American Girl Segment:
|
|
|
|
|
|
|
|
||||||
Total Gross Sales
|
$
|
34.4
|
|
|
$
|
44.6
|
|
|
-23
|
%
|
|
—
|
%
|
Sales Adjustments
|
(0.9
|
)
|
|
(1.4
|
)
|
|
|
|
|
||||
Total Net Sales
|
$
|
33.5
|
|
|
$
|
43.2
|
|
|
-22
|
%
|
|
—
|
%
|
|
For the Six Months Ended
|
|
Year/Year Change
|
||||||||||||||||
June 30, 2019
|
|
June 30, 2018
|
|
||||||||||||||||
Amount
|
|
% of Net
Sales |
|
Amount
|
|
% of Net
Sales |
|
%
|
|
Basis Points
of Net Sales |
|||||||||
|
(In millions, except percentage and basis point information)
|
||||||||||||||||||
Net sales
|
$
|
1,549.3
|
|
|
100.0
|
%
|
|
$
|
1,549.1
|
|
|
100.0
|
%
|
|
—
|
%
|
|
—
|
|
Gross profit
|
$
|
581.2
|
|
|
37.5
|
%
|
|
$
|
472.1
|
|
|
30.5
|
%
|
|
23
|
%
|
|
700
|
|
Advertising and promotion expenses
|
154.0
|
|
|
9.9
|
%
|
|
153.2
|
|
|
9.9
|
%
|
|
—
|
%
|
|
—
|
|
||
Other selling and administrative expenses
|
609.6
|
|
|
39.3
|
%
|
|
784.6
|
|
|
50.6
|
%
|
|
-22
|
%
|
|
-1,130
|
|
||
Operating loss
|
(182.4
|
)
|
|
-11.8
|
%
|
|
(465.8
|
)
|
|
-30.1
|
%
|
|
-61
|
%
|
|
1,830
|
|
||
Interest expense
|
93.2
|
|
|
6.0
|
%
|
|
84.5
|
|
|
5.5
|
%
|
|
10
|
%
|
|
50
|
|
||
Interest (income)
|
(3.8
|
)
|
|
-0.2
|
%
|
|
(4.8
|
)
|
|
-0.3
|
%
|
|
-22
|
%
|
|
10
|
|
||
Other non-operating expense, net
|
1.6
|
|
|
|
|
2.5
|
|
|
|
|
|
|
|
||||||
Loss before income taxes
|
$
|
(273.4
|
)
|
|
-17.6
|
%
|
|
$
|
(547.9
|
)
|
|
-35.4
|
%
|
|
-50
|
%
|
|
1,780
|
|
|
For the Six Months Ended
|
|
% Change as
Reported |
|
Currency
Exchange Rate Impact |
||||||||
|
June 30,
2019 |
|
June 30,
2018 |
|
|||||||||
|
(In millions, except percentage information)
|
||||||||||||
Revenues by Categories (a)
|
|
|
|
|
|
|
|
||||||
Dolls
|
$
|
526.3
|
|
|
$
|
524.0
|
|
|
—
|
%
|
|
-4
|
%
|
Infant, Toddler, and Preschool
|
445.6
|
|
|
514.6
|
|
|
-13
|
%
|
|
-2
|
%
|
||
Vehicles
|
397.5
|
|
|
404.0
|
|
|
-2
|
%
|
|
-5
|
%
|
||
Action Figures, Building Sets, and Games
|
373.0
|
|
|
311.5
|
|
|
20
|
%
|
|
-2
|
%
|
||
Gross Sales
|
$
|
1,742.4
|
|
|
$
|
1,754.1
|
|
|
-1
|
%
|
|
-4
|
%
|
Sales Adjustments
|
(193.1
|
)
|
|
(205.0
|
)
|
|
|
|
|
||||
Net Sales
|
$
|
1,549.3
|
|
|
$
|
1,549.1
|
|
|
—
|
%
|
|
-3
|
%
|
|
|
|
|
|
|
|
|
||||||
Supplemental Revenue Disclosure:
|
|
|
|
|
|
|
|
||||||
Revenues by Top 3 Power Brands
|
|
|
|
|
|
|
|
||||||
Barbie
|
$
|
350.0
|
|
|
$
|
323.4
|
|
|
8
|
%
|
|
-5
|
%
|
Hot Wheels
|
325.7
|
|
|
312.2
|
|
|
4
|
%
|
|
-5
|
%
|
||
Fisher-Price and Thomas & Friends
|
394.8
|
|
|
424.0
|
|
|
-7
|
%
|
|
-3
|
%
|
||
Other
|
671.8
|
|
|
694.5
|
|
|
-3
|
%
|
|
-2
|
%
|
||
Gross Sales
|
$
|
1,742.4
|
|
|
$
|
1,754.1
|
|
|
-1
|
%
|
|
-4
|
%
|
|
For the Six Months Ended
|
|
% Change as
Reported |
|
Currency
Exchange Rate Impact |
||||||||
|
June 30,
2019 |
|
June 30,
2018 |
|
|||||||||
|
(In millions, except percentage information)
|
||||||||||||
Revenues by Categories (a)
|
|
|
|
|
|
|
|
||||||
Dolls
|
$
|
173.6
|
|
|
$
|
153.4
|
|
|
13
|
%
|
|
—
|
%
|
Infant, Toddler, and Preschool
|
250.6
|
|
|
280.1
|
|
|
-11
|
%
|
|
-1
|
%
|
||
Vehicles
|
173.6
|
|
|
175.4
|
|
|
-1
|
%
|
|
—
|
%
|
||
Action Figures, Building Sets, and Games
|
219.0
|
|
|
182.4
|
|
|
20
|
%
|
|
—
|
%
|
||
Gross Sales
|
$
|
816.7
|
|
|
$
|
791.3
|
|
|
3
|
%
|
|
—
|
%
|
Sales Adjustments
|
(52.5
|
)
|
|
(52.4
|
)
|
|
|
|
|
||||
Net Sales
|
$
|
764.3
|
|
|
$
|
738.9
|
|
|
3
|
%
|
|
-1
|
%
|
|
|
|
|
|
|
|
|
||||||
Supplemental Revenue Disclosure:
|
|
|
|
|
|
|
|
||||||
Revenues by Top 3 Power Brands
|
|
|
|
|
|
|
|
||||||
Barbie
|
$
|
147.8
|
|
|
$
|
129.6
|
|
|
14
|
%
|
|
—
|
%
|
Hot Wheels
|
135.6
|
|
|
134.3
|
|
|
1
|
%
|
|
—
|
%
|
||
Fisher-Price and Thomas & Friends
|
221.2
|
|
|
228.3
|
|
|
-3
|
%
|
|
—
|
%
|
||
Other
|
312.2
|
|
|
299.0
|
|
|
4
|
%
|
|
-1
|
%
|
||
Gross Sales
|
$
|
816.7
|
|
|
$
|
791.3
|
|
|
3
|
%
|
|
—
|
%
|
|
% Change in
Net Sales as Reported
|
|
Currency
Exchange Rate Impact
|
||
Total International Segment (a)
|
1
|
%
|
|
-7
|
%
|
EMEA
|
—
|
%
|
|
-8
|
%
|
Latin America
|
3
|
%
|
|
-6
|
%
|
Asia Pacific
|
—
|
%
|
|
-5
|
%
|
|
% Change in
Gross Sales as Reported
|
|
Currency
Exchange Rate Impact
|
||
Total International Segment (a)
|
-1
|
%
|
|
-8
|
%
|
EMEA
|
—
|
%
|
|
-9
|
%
|
Latin America
|
2
|
%
|
|
-6
|
%
|
Asia Pacific
|
-5
|
%
|
|
-5
|
%
|
|
For the Six Months Ended
|
|
% Change as
Reported |
|
Currency
Exchange Rate Impact |
||||||||
|
June 30,
2019 |
|
June 30,
2018 |
|
|||||||||
|
(In millions, except percentage information)
|
||||||||||||
Revenues by Categories (a)
|
|
|
|
|
|
|
|
||||||
Dolls
|
$
|
272.8
|
|
|
$
|
258.8
|
|
|
5
|
%
|
|
-9
|
%
|
Infant, Toddler, and Preschool
|
195.0
|
|
|
234.6
|
|
|
-17
|
%
|
|
-5
|
%
|
||
Vehicles
|
223.9
|
|
|
228.6
|
|
|
-2
|
%
|
|
-8
|
%
|
||
Action Figures, Building Sets, and Games
|
154.0
|
|
|
128.9
|
|
|
19
|
%
|
|
-7
|
%
|
||
Gross Sales
|
$
|
845.7
|
|
|
$
|
850.8
|
|
|
-1
|
%
|
|
-8
|
%
|
Sales Adjustments
|
(138.6
|
)
|
|
(148.8
|
)
|
|
|
|
|
||||
Net Sales
|
$
|
707.1
|
|
|
$
|
702.0
|
|
|
1
|
%
|
|
-7
|
%
|
|
|
|
|
|
|
|
|
||||||
Supplemental Revenue Disclosure:
|
|
|
|
|
|
|
|
||||||
Revenues by Top 3 Power Brands
|
|
|
|
|
|
|
|
||||||
Barbie
|
$
|
202.3
|
|
|
$
|
193.8
|
|
|
4
|
%
|
|
-9
|
%
|
Hot Wheels
|
190.1
|
|
|
178.0
|
|
|
7
|
%
|
|
-9
|
%
|
||
Fisher-Price and Thomas & Friends
|
173.6
|
|
|
195.6
|
|
|
-11
|
%
|
|
-5
|
%
|
||
Other
|
279.7
|
|
|
283.4
|
|
|
-1
|
%
|
|
-6
|
%
|
||
Gross Sales
|
$
|
845.7
|
|
|
$
|
850.8
|
|
|
-1
|
%
|
|
-8
|
%
|
|
For the Six Months Ended
|
|
% Change as
Reported |
|
Currency
Exchange Rate Impact |
||||||||
|
June 30,
2019 |
|
June 30,
2018 |
|
|||||||||
|
(In millions, except percentage information)
|
||||||||||||
American Girl Segment:
|
|
|
|
|
|
|
|
||||||
Total Gross Sales
|
$
|
80.0
|
|
|
$
|
112.0
|
|
|
-29
|
%
|
|
-1
|
%
|
Sales Adjustments
|
(2.0
|
)
|
|
(3.9
|
)
|
|
|
|
|
||||
Total Net Sales
|
$
|
78.0
|
|
|
$
|
108.2
|
|
|
-28
|
%
|
|
—
|
%
|
•
|
Reducing manufacturing complexity, including SKU reduction, and implementing process improvement initiatives at owned and co-manufacturing facilities;
|
•
|
Streamlining the organizational structure and reducing headcount expense to better align with the revenue base; and
|
•
|
Optimizing advertising spend.
|
|
June 30, 2019
|
|
June 30, 2018
|
|
December 31, 2018
|
|||||||||||||||
|
(In millions, except percentage information)
|
|||||||||||||||||||
Cash and equivalents
|
$
|
194.1
|
|
|
|
|
|
$
|
228.6
|
|
|
|
|
|
$
|
594.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Short-term borrowings
|
45.0
|
|
|
1
|
%
|
|
80.0
|
|
|
2
|
%
|
|
4.2
|
|
|
—
|
%
|
|||
2010 Senior Notes due October 2020 and October 2040
|
500.0
|
|
|
15
|
|
|
500.0
|
|
|
14
|
|
|
500.0
|
|
|
14
|
|
|||
2011 Senior Notes due November 2041
|
300.0
|
|
|
9
|
|
|
300.0
|
|
|
8
|
|
|
300.0
|
|
|
8
|
|
|||
2013 Senior Notes due March 2023
|
250.0
|
|
|
7
|
|
|
250.0
|
|
|
7
|
|
|
250.0
|
|
|
7
|
|
|||
2016 Senior Notes due August 2021
|
350.0
|
|
|
10
|
|
|
350.0
|
|
|
10
|
|
|
350.0
|
|
|
10
|
|
|||
2017/2018 Senior Notes due December 2025
|
1,500.0
|
|
|
45
|
|
|
1,500.0
|
|
|
41
|
|
|
1,500.0
|
|
|
42
|
|
|||
Debt issuance costs and debt discount
|
(44.8
|
)
|
|
—
|
|
|
(51.8
|
)
|
|
—
|
|
|
(48.3
|
)
|
|
—
|
|
|||
Total debt
|
2,900.2
|
|
|
87
|
|
|
2,928.2
|
|
|
82
|
|
|
2,855.9
|
|
|
81
|
|
|||
Stockholders' equity
|
421.3
|
|
|
13
|
|
|
664.0
|
|
|
18
|
|
|
669.5
|
|
|
19
|
|
|||
Total capitalization (debt plus equity)
|
$
|
3,321.5
|
|
|
100
|
%
|
|
$
|
3,592.2
|
|
|
100
|
%
|
|
$
|
3,525.4
|
|
|
100
|
%
|
|
For the Three Months Ended
|
|
% Change as Reported
|
|
Currency Exchange Rate Impact
|
||||||||
|
June 30,
2019 |
|
June 30,
2018 |
|
|||||||||
|
(In millions, except percentage information)
|
||||||||||||
Net sales
|
$
|
860.1
|
|
|
$
|
840.7
|
|
|
2
|
%
|
|
-3
|
%
|
Sales adjustments
|
102.2
|
|
|
113.4
|
|
|
|
|
|
||||
Gross sales
|
$
|
962.3
|
|
|
$
|
954.1
|
|
|
1
|
%
|
|
-3
|
%
|
|
|
|
|
|
|
|
|
||||||
|
For the Six Months Ended
|
|
% Change as Reported
|
|
Currency Exchange Rate Impact
|
||||||||
|
June 30,
2019 |
|
June 30,
2018 |
|
|||||||||
|
(In millions, except percentage information)
|
||||||||||||
Net sales
|
$
|
1,549.3
|
|
|
$
|
1,549.1
|
|
|
—
|
%
|
|
-3
|
%
|
Sales adjustments
|
193.1
|
|
|
205.0
|
|
|
|
|
|
||||
Gross sales
|
$
|
1,742.4
|
|
|
$
|
1,754.1
|
|
|
-1
|
%
|
|
-4
|
%
|
|
For the Three Months Ended
|
|
% Change as Reported
|
|
Currency Exchange Rate Impact
|
||||||||
|
June 30,
2019 |
|
June 30,
2018 |
|
|||||||||
|
(In millions, except percentage information)
|
||||||||||||
Net sales
|
$
|
422.9
|
|
|
$
|
412.7
|
|
|
2
|
%
|
|
-1
|
%
|
Sales adjustments
|
24.5
|
|
|
30.2
|
|
|
|
|
|
||||
Gross sales
|
$
|
447.4
|
|
|
$
|
442.9
|
|
|
1
|
%
|
|
—
|
%
|
|
|
|
|
|
|
|
|
||||||
|
For the Six Months Ended
|
|
% Change as Reported
|
|
Currency Exchange Rate Impact
|
||||||||
|
June 30,
2019 |
|
June 30,
2018 |
|
|||||||||
|
(In millions, except percentage information)
|
||||||||||||
Net sales
|
$
|
764.3
|
|
|
$
|
738.9
|
|
|
3
|
%
|
|
-1
|
%
|
Sales adjustments
|
52.5
|
|
|
52.4
|
|
|
|
|
|
||||
Gross sales
|
$
|
816.7
|
|
|
$
|
791.3
|
|
|
3
|
%
|
|
—
|
%
|
|
For the Three Months Ended
|
|
% Change as Reported
|
|
Currency Exchange Rate Impact
|
||||||||
|
June 30,
2019 |
|
June 30,
2018 |
|
|||||||||
|
(In millions, except percentage information)
|
||||||||||||
Net sales
|
$
|
403.6
|
|
|
$
|
384.8
|
|
|
5
|
%
|
|
-6
|
%
|
Sales adjustments
|
76.9
|
|
|
81.9
|
|
|
|
|
|
||||
Gross sales
|
$
|
480.5
|
|
|
$
|
466.7
|
|
|
3
|
%
|
|
-6
|
%
|
|
|
|
|
|
|
|
|
||||||
|
For the Six Months Ended
|
|
% Change as Reported
|
|
Currency Exchange Rate Impact
|
||||||||
|
June 30,
2019 |
|
June 30,
2018 |
|
|||||||||
|
(In millions, except percentage information)
|
||||||||||||
Net sales
|
$
|
707.1
|
|
|
$
|
702.0
|
|
|
1
|
%
|
|
-7
|
%
|
Sales adjustments
|
138.6
|
|
|
148.8
|
|
|
|
|
|
||||
Gross sales
|
$
|
845.7
|
|
|
$
|
850.8
|
|
|
-1
|
%
|
|
-8
|
%
|
|
For the Three Months Ended
|
|
% Change as Reported
|
|
Currency Exchange Rate Impact
|
||||||||
|
June 30,
2019 |
|
June 30,
2018 |
|
|||||||||
|
(In millions, except percentage information)
|
||||||||||||
Net sales
|
$
|
33.5
|
|
|
$
|
43.2
|
|
|
-22
|
%
|
|
—
|
%
|
Sales adjustments
|
0.9
|
|
|
1.4
|
|
|
|
|
|
||||
Gross sales
|
$
|
34.4
|
|
|
$
|
44.6
|
|
|
-23
|
%
|
|
—
|
%
|
|
|
|
|
|
|
|
|
||||||
|
For the Six Months Ended
|
|
% Change as Reported
|
|
Currency Exchange Rate Impact
|
||||||||
|
June 30,
2019 |
|
June 30,
2018 |
|
|||||||||
|
(In millions, except percentage information)
|
||||||||||||
Net sales
|
$
|
78.0
|
|
|
$
|
108.2
|
|
|
-28
|
%
|
|
—
|
%
|
Sales adjustments
|
2.0
|
|
|
3.9
|
|
|
|
|
|
||||
Gross sales
|
$
|
80.0
|
|
|
$
|
112.0
|
|
|
-29
|
%
|
|
-1
|
%
|
Period
|
Total Number of
Shares (or Units)
Purchased (a)
|
|
Average Price Paid
per Share (or Unit)
|
|
Total Number of Shares
(or Units) Purchased as
Part of Publicly
Announced Plans or
Programs
|
|
Maximum Number (or
Approximate Dollar
Value) of Shares (or Units) that May Yet Be Purchased Under the Plans or Programs (b)
|
||||||
Apr 1—30
|
900
|
|
|
$
|
12.49
|
|
|
—
|
|
|
$
|
203,016,273
|
|
May 1—31
|
2,222
|
|
|
9.85
|
|
|
—
|
|
|
203,016,273
|
|
||
June 1—30
|
204
|
|
|
11.21
|
|
|
—
|
|
|
203,016,273
|
|
||
Total
|
3,326
|
|
|
$
|
10.65
|
|
|
—
|
|
|
$
|
203,016,273
|
|
(a)
|
The total number of shares purchased relates to 3,326 shares withheld from employees to satisfy minimum tax withholding obligations that occur upon vesting of restricted stock units. These shares were not purchased as part of a publicly announced repurchase plan or program.
|
(b)
|
Mattel's share repurchase program was first announced on July 21, 2003. On July 17, 2013, the Board of Directors authorized Mattel to increase its share repurchase program by $500.0 million. At June 30, 2019, share repurchase authorizations of $203.0 million had not been executed. Repurchases under the program will take place from time to time, depending on market conditions. Mattel's share repurchase program has no expiration date.
|
|
|
|
|
Incorporated by Reference
|
||||||
Exhibit No.
|
|
Exhibit Description
|
|
Form
|
|
File No.
|
|
Exhibit(s)
|
|
Filing Date
|
|
Restated Certificate of Incorporation of Mattel, Inc.
|
|
8-K
|
|
001-05647
|
|
99.0
|
|
May 21, 2007
|
|
|
Amended and Restated Bylaws of Mattel, Inc.
|
|
8-K
|
|
001-05647
|
|
3.1
|
|
August 28, 2018
|
|
|
Specimen Stock Certificate with respect to Mattel, Inc.
|
|
10-Q
|
|
001-05647
|
|
4.0
|
|
August 3, 2007
|
|
10.1+*
|
|
Second Amendment to Mattel, Inc. Amended and Restated 2010 Equity and Long-Term Compensation Plan
|
|
|
|
|
|
|
|
|
31.0*
|
|
Certification of Principal Executive Officer dated July 25, 2019 pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|
|
|
|
|
|
|
|
|
31.1*
|
|
Certification of Principal Financial Officer dated July 25, 2019 pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|
|
|
|
|
|
|
|
|
32.0**
|
|
Certifications of Principal Executive Officer and Principal Financial Officer dated July 25, 2019 pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
|
|
|
|
|
|
|
|
|
101.INS*
|
|
XBRL Instance Document
|
|
|
|
|
|
|
|
|
101.SCH*
|
|
XBRL Taxonomy Extension Schema Document
|
|
|
|
|
|
|
|
|
101.CAL*
|
|
XBRL Taxonomy Extension Calculation Linkbase Document
|
|
|
|
|
|
|
|
|
101.DEF*
|
|
XBRL Taxonomy Extension Definition Linkbase Document
|
|
|
|
|
|
|
|
|
101.LAB*
|
|
XBRL Taxonomy Extension Label Linkbase Document
|
|
|
|
|
|
|
|
|
101.PRE*
|
|
XBRL Taxonomy Extension Presentation Linkbase Document
|
|
|
|
|
|
|
|
|
104*
|
|
The cover page from Mattel's Quarterly Report on Form 10-Q for the three months ended June 30, 2019, formatted in Inline XBRL.
|
|
|
|
|
|
|
|
|
+
|
Management contract or compensatory plan or arrangement.
|
*
|
Filed herewith.
|
**
|
Furnished herewith. This exhibit should not be deemed to be "filed" for purposes of Section 18 of the Securities Exchange Act of 1934.
|
|
MATTEL, INC.
Registrant
|
||
|
|
|
|
|
By:
|
|
/s/ Yoon Hugh
|
|
|
|
Yoon Hugh
Senior Vice President and Corporate Controller (Duly Authorized Officer and Chief Accounting Officer) |
A.
|
The Company currently maintains the 2010 Plan.
|
B.
|
The Board believes it is in the best interests of the Company and its stockholders to amend the 2010 Plan to increase the Share Limit and to incorporate the terms and conditions set forth herein.
|
|
|
|
|
MATTEL, INC.
|
||
|
|
|
|
By:
|
|
/s/ Amanda Thompson
|
|
|
|
|
Name:
|
|
Amanda Thompson
|
|
|
|
|
Title:
|
|
Executive Vice President and Chief People Officer
|
|
|
|
|
|||
|
|
|
|
Dated:
|
|
May 16, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Date:
|
July 25, 2019
|
|
|
By:
|
|
/s/ Ynon Kreiz
|
|
|
|
|
|
|
Ynon Kreiz
Chairman and Chief Executive Officer
(Principal Executive Officer)
|
|
|
|
|
|
|
|
Date:
|
July 25, 2019
|
|
|
By:
|
|
/s/ Joseph J. Euteneuer
|
|
|
|
|
|
|
Joseph J. Euteneuer
Chief Financial Officer
(Principal Financial Officer)
|
(1)
|
the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
(2)
|
the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
|
|
|
|
|
|
|
Date:
|
July 25, 2019
|
|
|
By:
|
|
/s/ Ynon Kreiz
|
|
|
|
|
|
|
Ynon Kreiz
|
|
|
|
|
|
|
Chairman and Chief Executive Officer
|
|
|
|
|
|||
|
|
|
|
|
|
/s/ Joseph J. Euteneuer
|
|
|
|
|
|
|
Joseph J. Euteneuer
|
|
|
|
|
|
|
Chief Financial Officer
|