What changed in this filing

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Item 1. Business

2022-02-28 compared with 2021-02-25 · 104 added, 100 removed, 130 unchanged (61% of the section changed)

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and/or one or more of its family of companies.

Mattel is a leading global children's entertainment company that specializes in the design and production of quality toys and consumer products.

Mattel's products are among the most widely recognized toy products in the world.

Mattel's mission is to "create innovative products and experiences that inspire, entertain, and develop children through play." In order to deliver on this mission, Mattel is focused on the following two-part strategy to transform Mattel into an intellectual property ("IP") driven, high-performing toy company:

• In the short-term, improve profitability by optimizing operations and accelerate topline growth by growing Mattel's Power Brands and expanding Mattel's brand portfolio.

• In the mid-to-long-term, continue to make progress on capturing the full value of Mattel's IP through franchise management and online retail and e-commerce.

Mattel is the owner of a portfolio of global brands with vast IP potential.

Mattel is a leading global toy company and owner of one of the strongest catalogs of children’s and family entertainment franchises in the world.

Mattel creates innovative products and experiences that inspire, entertain, and develop children through play.

Mattel is focused on the following evolved strategy to grow its intellectual property ("IP") driven toy business and expand its entertainment offering:

• Accelerate topline growth through scaling Mattel’s portfolio, growing franchise brands, and advancing e-commerce and direct-to-consumer business, and increasing profitability by continuing to optimize operations;

• Expand entertainment offering to capture the full value of Mattel's IP in highly accretive business verticals, including content, consumer products, and digital experiences.

Mattel is the owner of a portfolio of iconic brands and partners with global entertainment companies to license other intellectual property.

Mattel's portfolio of owned and licensed brands and products are organized into the following categories:

Dolls —including brands such as Barbie, American Girl, Polly Pocket, Spirit (Universal) and Enchantimals .

Dolls —including brands such as Barbie, Monster High, American Girl, Polly Pocket, Spirit (Universal), and Enchantimals .

Mattel's Dolls portfolio is driven by the flagship Barbie brand and a collection of complementary brands offered globally.

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Thomas & Friends is an award-winning preschool train brand franchise that brings meaningful life lessons of friendship and teamwork to kids through content, toys, live events, and other lifestyle categories.

Vehicles —including brands such as Hot Wheels , Matchbox , CARS ( Disney Pixar ), and Mario Kart (Nintendo) .

Vehicles —including brands such as Hot Wheels , including Hot Wheels Monster Trucks and Hot Wheels Mario Kart (Nintendo), Matchbox , and CARS (Disney Pixar) .

In production for over 50 years, Hot Wheels continues to push the limits of performance and design and ignites the challenger spirit of kids, adults, and collectors.

From die-cast vehicles to tracks, playsets, and accessories, the Mattel Vehicles portfolio has broad appeal that engages and excites kids of all ages.

Action Figures, Building Sets, Games, and Other —including brands such as Masters of the Universe , MEGA , UNO , Toy Story ( Disney Pixar ), Jurassic World ( NBCUniversal ), WWE, and Star Wars ( Disney ).

From big blocks to small bricks, first builders to advanced collectors, MEGA creates building sets that encourage kids and adults to unlock their creative potential.

America's number one game, UNO is the classic matching card game that is easy to learn and fast fun for everyone.

Action Figures, Building Sets, Games, and Other —including brands such as Masters of the Universe , MEGA , UNO , Lightyear ( Disney Pixar ), Jurassic World ( NBCUniversal ), WWE, and Star Wars ( Disney ).

Mattel’s action figure portfolio is comprised of product lines associated with licensed entertainment franchises that are driven by major theatrical releases, such as Lightyear and Jurassic World, as well as product lines from Mattel’s owned IP, including Masters of the Universe.

As the challenger brand in Building Sets, MEGA sparks creativity through the power of connection with builders of all ages and fans of global franchises.

UNO is the classic matching card game that is easy to learn and fast fun for everyone.

Other includes Plush, which contains product offerings associated with theatrical releases from Mattel’s licensed entertainment franchises.

Business Segments

Mattel's operating segments are:

(i) North America, which consists of the U.S.

(i) North America, which consists of the United States and Canada;

(ii) International;

and (iii) American Girl.

The North America and International segments sell products across categories, although some products are developed and adapted for particular international markets.

The North America and International segments sell products across Mattel's categories, although some products are developed and adapted for particular international markets.

For additional information on Mattel’s worldwide gross billings by brand category, see Part II, Item 7 "Management’s Discussion and Analysis of Financial Condition and Results of Operations—Results of Operations."

North America Segment

The North America segment markets and sells toys in the U.S.

and Canada across categories.

The North America segment markets and sells toys and consumer products in the United States and Canada across all of Mattel's categories.

Barbie will continue to deliver innovation, purpose-driven marketing campaigns, and engaging toys connected to a strong system of play.

Barbie has a broad product offering, with segments designed to appeal to children from ages three to nine, complemented by a Barbie Signature segment with high quality dolls that appeal to fans of all ages.

In 2021, Barbie will be featured in two Netflix content tentpoles, a full year of the new Barbie Extra segment, and exciting partnerships and pop culture collaborations, along with the launch of an all new Dreamhouse and Ken’s 60th anniversary.

In 2021, Polly Pocket will refresh its product offering with new product and packaging innovation, brand new themes, and the third season of its popular animated content series on streaming and broadcast platforms globally, while Enchantimals will launch a brand new Royals thematic and new content formats.

Spirit product will be released in late Spring 2021, in partnership with NBCUniversal and will be tied to the popular series and 2021 theatrical release, delivering nurturing play to Mattel's core consumer.

2021 will also see new Doll product offerings in partnership with top-tier brands like Sanrio's Hello Kitty .

Barbie has broad product offerings, with product lines designed to appeal to children from ages three to nine, complemented by a Barbie Signature line with high-quality dolls that appeal to fans of all ages.

In 2022, Barbie will be featured in four Netflix content releases, introduce exciting new launches in the Extra and Reveal product lines, and introduce high profile partnerships and pop culture collaborations, all while celebrating the 60th anniversary of the Dreamhouse and the launch of an all-new Dream Camper.

In 2022, Polly Pocket will refresh its product offering with new compact playset innovation, brand new themes, and the fourth season of its popular animated content series on streaming and broadcast platforms globally.

There are also two new product launches in Fall 2022;

a product line tied to Chris "Ludacris" Bridges' series "Karma's World" and the much-anticipated re-launch of the powerhouse franchise Monster High .

Infant, Toddler, and Preschool

In 2021, Fisher-Price will continue its focus on surprising and delighting consumers as a trusted partner for families with infants and preschoolers by continuing to create brand love through innovative solutions for parents and inviting adults back into the world of childhood through the "Let's be Kids" brand platform.

Thomas & Friends has delighted fans for generations through stories, toys, and lifestyle products, and, in 2021, Mattel will expand its effort to tell stories everywhere with more content on more platforms and in more ways than ever before.

In 2021, industry leader Hot Wheels will look to continue its strong momentum as a multigenerational franchise with virtual and in-person expansions of its Hot Wheels Legends and Hot Wheels Monster Trucks Live tours, continued integrations with top video game franchises, and always-on premium content on YouTube .

The Hot Wheels product offering will be expanded with particular emphasis on the Hot Wheels Monster Trucks franchise and the award-winning line of Hot Wheels Mario Kart vehicles and playsets in partnership with Nintendo .

Mattel will also continue to partner with Disney Pixar for CARS , celebrating the brand’s 15 th anniversary.

Finally, die-cast category pioneer Matchbox will be relaunched globally with a revitalized product line and "Drive Your Adventure" brand campaign.

In 2022, Fisher-Price will continue its focus on surprising and delighting consumers as a trusted partner for families with infants and preschoolers, by continuing to create brand love through innovative products and inviting adults back into the world of childhood.

Design-led innovation will continue to drive new product offerings, including Meditation Mouse , a calming toy for toddlers designed to teach self-soothing techniques, and expansion of the Linkamals product line to toddlers.

Mattel will also scale its portfolio of Little People products to include Barbie's Lil' Dreamhouse and Hot Wheel's Racing Loops .

New preschool toys from Imaginext will include product lines associated with highly-anticipated theatrical releases:

The Batman (Warner Brothers), Jurassic World:

Dominion (NBCUniversal), and Lightyear (Disney Pixar).

In 2022, industry leader Hot Wheels will look to continue its strong momentum as a multigenerational franchise with consumer interest levels at historic highs.

Hot Wheels product offerings will excite and delight with revitalized Hot Wheels City playsets for expanded fun across the system of play, new product lines for the Jurassic World:

Dominion ( NBCUniversal ) and Lightyear ( Disney Pixar ) theatrical releases, and digital ways to collect with the NFT Garage series.

In the second half of the year, Hot Wheels will enter new vehicle play patterns and categories, all while upholding the quality and performance of Hot Wheels .

Mattel will also continue to partner with Disney Pixar for CARS , driving excitement around the new content CARS on the Road by launching an all-new content-inspired product line in Fall 2022.

Finally, die-cast category pioneer Matchbox will continue year two of its re-launch with exciting new products and an evolution of the “Drive Your Adventure” brand campaign that will feature exciting new licenses, and new episodes of the popular series on YouTube Matchbox Adventures .

Action Figures, Building Sets, Games, and Other

Mattel’s Action Figures category will continue to collaborate with key licensor partners, such as Disney , NBCUniversal , WWE , and Microsoft , to bring innovative products to the global marketplace.

Key 2021 product lines based on entertainment franchises will include NBCUniversal’s Minions, with a theatrical release scheduled for July 2021 and the relaunch of Masters of the Universe .

Masters of the Universe products will be bolstered by two Netflix animated shows premiering in 2021 and global brand support appealing to both new and existing fans.

Mattel also expects continued franchise support of NBCUniversal ’s Jurassic World, Microsoft’s Minecraft, and Disney Pixar properties to continue throughout the year.

In the Building Sets category, MEGA provides innovative building play experiences, authentic details, and accessible value for fans and families.

In 2021, parents of preschoolers can discover how BAG+1=FUN with the MEGA Bloks First Builders segment, featuring building sets that enhance playtime beyond the classic Big Building Bag.

MEGA will also partner with three of Mattel’s iconic franchises to introduce Hot Wheels fans of all ages to building sets, invite more Barbie fans to experience building play and expand Masters of the Universe fans' building sets collection throughout 2021.

Fans of the Pokemon and Halo franchises can continue to build and collect with MEGA in 2021.

Mattel’s Games category consists of some of the most beloved Games IP in the world including UNO, Pictionary, Scrabbl e, Skip-Bo, Bloku s and many others.

In 2021, UNO will be celebrating its 50 th anniversary with a line of 50 th anniversary products and robust partnerships across pop culture.

Mattel will extend and refresh many of its key brands including Scrabble, and will continue to innovate by bringing new games to market.

The Mattel Plush category debuted in 2020 with Star Wars:

The Child from the hit Disney+ series The Mandalorian, and will collaborate with partners Disney’s Lucasfilm, Disney Pixar , Sanrio ( Hello Kitty ), and NBCUniversal .

In 2021, Mattel's Plush portfolio will grow to include some of the most iconic brands in the category, including Disney’s Marvel and Microsoft’s Minecraft.

Mattel Action Figures will continue to collaborate with key licensor partners, such as Disney , NBCUniversal , WWE , and Microsoft , to bring innovative products to the global marketplace.

Key 2022 product lines to be based on entertainment franchises include NBCUniversal’s Jurassic World:

Dominion, Minions:

Rise of Gru, and Disney Pixar’s Lightyear , each with a theatrical release scheduled for Summer 2022.

Mattel will complement its portfolio with the continued expansion of Masters of the Universe .

Masters of the Universe products will be bolstered by more Netflix animated content coming in 2022 and global brand support targeted to both new and existing fans.

In Building Sets, MEGA sparks creativity through the power of connection with builders of all ages and fans of global franchises.

Partnerships with some of the world’s top franchises including Pokémon , Barbie , Hot Wheels, and Paw Patrol, invite consumers to try MEGA building sets, while innovative building play, authentic details, compatible quality, and accessible value encourages consumers to stay in the MEGA building collection.

In 2022, parents of preschoolers can discover how the MEGA Bloks preschool building system enhances playtime and early childhood development beyond the Big Building Bag.

Mattel Games consists of some of the most beloved Games IP in the world including UNO, Pictionary , Skip-Bo, Bloku s, and many others.

In 2022, UNO will introduce a new card-based extension to its portfolio, UNO All Wild and lean deeper into collectible cards with UNO Ultimate Marvel .

Additionally, Mattel will introduce new game extensions and partnerships that celebrate pop culture.

Mattel will also continue to extend key brands and products, including a new licensed extension of the Pictionary line, Pictionary Air .

Mattel Plush will collaborate with partners Disney’s Lucasfilm, Pixar, and Marvel, Microsoft’s Minecraft, NBCUniversal’s Jurassic World , and many more.

In 2022, the Plush portfolio is expected to benefit from multiple tentpole moments capitalizing on this strong entertainment slate.

International Segment

Products marketed by the International segment are generally the same as those developed and marketed by the North America segment, although some are developed or adapted for particular international markets.

Products marketed and sold by the International segment are generally the same as those marketed and sold by the North America segment, although some are developed or adapted for particular international markets.

Mattel’s products are sold directly to retailers and wholesalers in most European, Latin American, and Asian countries, and in Australia and New Zealand, and through agents and distributors in those countries where Mattel has no direct presence.

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American Girl Segment

The American Girl segment is a direct marketer, retailer, and children’s publisher dedicated to its mission to help build girls of strong character.

The American Girl segment is a direct marketer, retailer, and children’s publisher dedicated to its mission to help girls grow up with confidence and character.

American Girl is best known for its line of historical and contemporary characters that feature 18” dolls, books, and accessories that inspire girls to face the world with courage, resilience, and kindness.

The contemporary Truly Me and Create Your Own lines encourage girls to express their imaginations and creativity by choosing a doll that looks like them or custom-creating one that’s completely unique from over 2.4 million options.

Bitty Baby introduces younger girls to nurturing play until they are ready for WellieWishers , a sweet group of girls who focus on empathy and being a good friend.

American Girl also publishes best-selling fiction and non-fiction books, as well as an array of popular digital content.

The American Girl segment sells products directly to consumers via its catalog, website, in its proprietary retail stores in the U.S., at select retailers nationwide, and at specialty boutiques and franchise stores in Canada.

In January 2021, American Girl introduced its newest Girl of the Year, Kira Bailey , whose story focuses on wildlife conservation and climate challenges.

Throughout 2021, American Girl will celebrate its 35th anniversary through new products, programs, partnerships, and experiences that help girls grow up with confidence and character.

The American Girl segment sells products directly to consumers via its catalog, website, in its proprietary retail stores in the United States, at select retailers nationwide, and at specialty boutiques and franchise stores in Canada.

In January 2022, American Girl introduced its newest Girl of the Year, Corinne Tan.

Corinne is a Chinese American growing up with her family in Aspen, Colorado.

She loves hitting the slopes, being a big sister, and training her new puppy to be a search-and-rescue dog.

Competition and Industry Background

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Competition in the toy industry is based primarily on quality, play value, brands, and price.

Mattel offers a diverse range of products for children of all ages and families that include, among others, toys for infants and preschoolers, dolls, vehicles, action figures, construction toys, youth electronics, hand-held and other games, puzzles, plush, educational toys, technology-related products, media-driven products, and fashion-related toys.

The North America segment competes with several large toy companies, including Hasbro, JAKKS Pacific, Jazwares, Just Play Products, LEGO, MGA Entertainment, Melissa & Doug, Spin Master, VTech, many smaller toy companies, and manufacturers of video games and consumer electronics.

Mattel offers a diverse range of products for children of all ages and families that include, among others, toys for infants and preschoolers, dolls, vehicles, action figures, construction toys, youth electronics, games, including digital, puzzles, plush, educational toys, technology-related products, media-driven products, and fashion-related toys.

The North America segment competes with several large toy companies, including Hasbro, Jazwares, Just Play Products, LEGO, MGA Entertainment, Melissa & Doug, Spin Master, VTech, Zuru, many smaller toy companies, and manufacturers of video games and consumer electronics.

The International segment competes with global toy companies including Hasbro, JAKKS Pacific, Just Play Products, LEGO, MGA Entertainment, Playmobil, Ravensburger, Simba, Spin Master, VTech, other national and regional toy companies, and manufacturers of video games and consumer electronics.

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Competition among the above companies is intensifying due to trends towards shorter life cycles for individual toy products and an increasing use of more sophisticated technology among consumers.

As a result of children outgrowing toys at younger ages, Mattel competes with companies that sell non-toy products, such as electronic consumer products, video games, as well as content and other entertainment companies.

In addition, Mattel competes with companies that sell non-toy products, such as electronic consumer products, video games, as well as content and other entertainment companies.

Competition continues to be heavily influenced by the fact that a small number of retailers account for a large portion of all toy sales, allocate the shelf space from which toys are viewed, and have direct contact with parents and children through in-store and online purchases.

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Los Angeles, California;

and New York, New York for its flagship American Girl stores, and in 10 other cities across the United States for its American Girl outlet and boutique stores, each of which features children’s products from the American Girl segment.

and New York, New York for its flagship American Girl stores, and in 9 other cities across the United States for its American Girl boutique stores, each of which features children’s products from the American Girl segment.

Additionally, Mattel sells certain of its products online through websites of one or more of its subsidiaries.

During 2021, Mattel’s three largest customers (Walmart at $1.17 billion, Target at $0.74 billion, and Amazon at $0.62 billion) accounted for approximately 46% of worldwide consolidated net sales.

During 2019, Mattel's two largest customers (Walmart at $1.01 billion and Target at $0.44 billion) accounted for approximately 32% of worldwide consolidated net sales.

Within countries in the International segment, there is also a concentration of sales to certain large customers that do not operate in the U.S., none of which exceeded 10% of worldwide consolidated net sales.

During 2020, Mattel's three largest customers (Walmart at $1.07 billion, Target at $0.62 billion, and Amazon at $0.47 billion) accounted for approximately 47% of worldwide consolidated net sales.

Within countries in the International segment, there is also a concentration of sales to certain large customers that do not operate in the United States, none of which exceeded 10% of worldwide consolidated net sales.

The customers and the degree of concentration vary depending upon the region or nation.

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A number of these licenses relate to product lines that are significant to Mattel’s business and operations.

Mattel has entered into agreements to license entertainment properties, including among others, Disney Enterprises (including Star Wars , Pixar (including CARS and Toy Story ) and certain other Disney films and television properties), NBCUniversal (including Fast and Furious , Jurassic World , Minions , and Spirit ), Viacom International relating to its Nickelodeon properties (including Blaze and the Monster Machines ), Warner Bros.

Mattel has entered into agreements to license entertainment properties, including among others, Disney Enterprises (including Disney Princess and Frozen, Star Wars , Pixar (including CARS, Lightyear, and Toy Story ) and certain other Disney films and television properties), NBCUniversal (including Fast and Furious , Jurassic World , Minions , and Spirit ), Viacom International relating to its Nickelodeon properties (including Blaze and the Monster Machines ), Warner Bros.

(including Batman , Superman , Wonder Woman , and Justice League ) , Microsoft (including Halo and Minecraft ), WWE , and Sanrio .

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To provide greater flexibility in the manufacture and delivery of its products, and as part of a continuing effort to reduce manufacturing costs, Mattel has concentrated production of most of its core products in company-owned facilities and generally uses third-party manufacturers for the production of non-core products.

Mattel’s principal manufacturing facilities are located in Canada, China, Indonesia, Malaysia, Mexico, and Thailand.

In conjunction with Mattel's cost savings programs, Mattel discontinued production in 2019 at three plants located in China, Indonesia, and Mexico.

In addition to the discontinued production at the three plants, Mattel will discontinue production at its plant located in Canada in 2021.

Mattel’s principal manufacturing facilities are located in China, Indonesia, Malaysia, Mexico, and Thailand.

In conjunction with Mattel's cost savings programs, Mattel discontinued production in 2019 at three plants located in China, Indonesia, and Mexico and discontinued production in 2021 at its plant located in Canada.

To help avoid disruption of its product supply due to political instability, civil unrest, economic instability, changes in government policies or regulations, natural and manmade disasters, and other risks, Mattel produces its products in multiple facilities across multiple countries.

Mattel believes that the existing production capacity at its own and its third-party manufacturers’ facilities is sufficient to handle expected volume in the foreseeable future.

Mattel believes that the existing production capacity at its owned and third-party manufacturers’ facilities is sufficient to handle expected volume in the foreseeable future.

Mattel bases its production schedules for toy products on customer orders and forecasts, taking into account historical trends, results of market research, and current market information.

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Government Regulations

Mattel’s products sold in the U.S.

are subject to the provisions of the Consumer Product Safety Act, as amended by the Consumer Product Safety Improvement Act of 2008, the Federal Hazardous Substances Act, and the Consumer Product Safety Improvement Act of 2008, and may also be subject to the requirements of the Flammable Fabrics Act or the Food, Drug, and Cosmetics Act and the regulations promulgated pursuant to such statutes.

Mattel’s products sold in the United States are subject to the provisions of the Consumer Product Safety Act, as amended by the Consumer Product Safety Improvement Act of 2008, the Federal Hazardous Substances Act, and the Consumer Product Safety Improvement Act of 2008, and may also be subject to the requirements of the Flammable Fabrics Act or the Food, Drug, and Cosmetics Act and the regulations promulgated pursuant to such statutes.

These statutes and the related regulations ban from the market consumer products that fail to comply with applicable product safety laws, regulations, and standards.

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See Part I, Item 1A "Risk Factors."

Mattel’s advertising is subject to the Federal Trade Commission Act, The Children’s Television Act of 1990, the rules and regulations promulgated by the Federal Trade Commission, and the Federal Communications Commission, as well as laws of certain countries that regulate advertising and advertising to children.

Mattel’s advertising and marketing activities are subject to the Federal Trade Commission Act and the Children’s Television Act of 1990 and may also be subject to other rules and regulations promulgated by the Federal Trade Commission, and the Federal Communications Commission, as well as laws of certain countries that regulate advertising, advertising to children, and related activities.

In addition, Mattel’s web-based products and services and other online and digital communications activity are or may be subject to U.S.

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Mattel believes that it is in substantial compliance with these laws and regulations.

Mattel’s operations are from time to time the subject of investigations, conferences, discussions, and negotiations with various federal, state, and local environmental agencies within and outside the U.S.

with respect to the discharge or cleanup of hazardous waste.

Mattel is not aware of any material cleanup liabilities.

In addition, Mattel continues to monitor existing and pending environmental laws and regulations within the United States and elsewhere related to climate change and greenhouse gas emissions.

Mattel is subject to various other federal, state, local, and international laws and regulations applicable to its business.

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Human Capital

Mattel is a leading global toy company and owner of one of the strongest catalogs of children’s and family entertainment franchises in the world.

Recruiting, developing, and motivating a talented global workforce is key to Mattel’s long-term growth and success.

Through Mattel’s focus on employee engagement, diversity and inclusion, training and development, and health and safety, Mattel creates a supportive and rewarding environment where employees are encouraged to explore, innovate, grow, and lead.

As of December 31, 2020, Mattel had approximately 32,100 employees (including temporary and seasonal employees) working in over 35 countries worldwide to create innovative products and experiences that inspire, entertain, and develop children through play, with approximately 27,600 employees (86% of the total workforce) located outside the U.S.

Mattel has a significant global manufacturing labor workforce of approximately 22,800 employees.

Mattel believes recruiting, developing, and motivating a talented global workforce are key to its long-term growth and success.

Through Mattel’s focus on employee engagement, diversity, equity, and inclusion, training and development, health and safety, and employee well-being, Mattel endeavors to create a supportive and rewarding environment where employees are encouraged to explore, innovate, grow, and lead.

As of December 31, 2021, Mattel had approximately 36,300 employees (including temporary and seasonal employees) working in over 35 countries worldwide to create innovative products and experiences that inspire, entertain, and develop children through play.

Approximately 31,900 employees (88% of the total workforce) are located outside the United States, with a significant global manufacturing labor workforce of approximately 27,000 employees.

The remaining workforce focuses on the design, marketing, sales, finance, and other aspects of Mattel’s business.

Mattel’s purpose-driven culture reflects how Mattel works and manages its global workforce:

• We collaborate:

Being a part of Mattel means being part of one team with shared values and common goals where every person counts.

• We innovate:

At Mattel, we always aim to find new and better ways to create innovative products and experiences across the organization.

• We execute:

We are a performance-driven company that empowers our people to strive for excellence and best-in-class outcomes.

Mattel’s Board of Directors and Governance and Social Responsibility Committee are involved in the oversight of how the company fosters its culture and receive regular updates on the company’s workforce management, including its diversity, equity, and inclusion initiatives.

Employee Engagement

Mattel is committed to collecting regular feedback and to ensuring all voices are heard.

Mattel measures employee engagement on an ongoing basis as it believes an engaged workforce leads to a more innovative, productive, and profitable company.

In addition, Mattel's annual global engagement survey, which generally measures employee job satisfaction, is used to improve the employee experience and to strengthen our workplace culture.

Diversity and Inclusion

Mattel is at its best when every member of its team feels respected, included and heard – when everyone can show up as themselves and do their best work every day.

Mattel values and shares a wide range of ideas and voices that evolve and broaden its perspectives with a reach that extends into all its brands, partners, and suppliers.

An integral component towards fostering an inclusive culture at Mattel are its Employee Resource Groups (ERGs), created and led by employees to bring together members and allies of underrepresented identities across the organization.

The ERGs organize company-wide learning opportunities, cultural celebrations, and community outreach, elevate important conversations, and collect critical feedback.

Mattel has been repeatedly recognized for these efforts and for its commitment to diversity and inclusion, including being recognized by the Human Rights Campaign Foundation as one of the country’s top places to work for LGBTQ+ equality.

For the second consecutive year, Mattel received a perfect score on the Human Rights Campaign Foundation’s Corporate Equality Index, a leading benchmarking survey and report measuring corporate policies and practices related to LGBTQ+ workplace equality.

In 2020, Mattel announced the following global diversity and inclusion goals:

Achieve 100% pay equity for all employees performing similar work globally.

Increase female representation at all levels of the organization.

Increase minority representation at all levels of the organization.

Mattel regularly collects feedback to measure employee engagement on an ongoing basis through its annual global engagement survey, which measures employee job satisfaction and is used to help improve the employee experience and strengthen its workplace culture.

Diversity, Equity, and Inclusion

Mattel is committed to fostering a culture where all employees have the opportunity to realize their full potential.

Mattel values and shares a wide range of ideas and voices that help evolve and broaden its perspectives, with a reach that extends to consumers, customers, business partners, and suppliers.

In August 2021, Mattel published its 2020 Citizenship Report, which described goals and initiatives related to its diversity, equity, and inclusion efforts.

The report highlighted Mattel’s near-term progress toward achieving its goals as of April 2021, including the following achievements:

• Achieved 100% base pay equity globally for all employees performing similar work with comparable roles and experience in similar markets.

This includes base pay equity by gender globally and pay equity by ethnicity in the United States.

• Increased representation of women at all levels of the organization, with women comprising 58% of Mattel’s global workforce and 49% of all management positions, excluding manufacturing labor.

Mattel remains focused on actions to increase such representation, including strengthening relationships with schools, networks, and organizations to establish a talent pipeline of women for Technology, Supply Chain, and Finance positions.

We believe Mattel's Employee Resource Groups ("ERGs") are an integral component of fostering an inclusive culture and enhancing engagement at Mattel.

Mattel employees have created and lead ten ERGs which, bring together members and allies of underrepresented identities across the global organization.

The ERGs organize learning opportunities, cultural celebrations, and community outreach, elevate important issues, encourage open and honest conversations, and collect critical feedback.

Mattel has been recognized for its diversity, equity, and inclusion efforts, including by the Human Rights Campaign Foundation as one of the country’s top places to work for LGBTQ+ equality.

For the third consecutive year, Mattel received a perfect score on the Human Rights Campaign Foundation’s Corporate Equality Index, a leading benchmarking survey and report measuring corporate policies and practices related to LGBTQ+ workplace equality.

Mattel was also ranked among Forbes 2021 World’s Best Employers and Best Employers for Women;

named to Fast Company’s List of the 100 Best Workplaces for Innovators in 2021 and Newsweek’s 100 Most Loved Workplaces for 2021;

and recognized as a Great Place to Work for 2021.

Training and Development

Continuously developing skills and capabilities for the future is essential to transforming Mattel into an IP-driven, high performing toy company.

We believe continuously developing skills and capabilities for the future is essential to operating as an IP-driven, high-performing toy company.

Additionally, offering the opportunity for employees to continuously learn and grow their careers at Mattel is a key driver of its employee engagement strategy.

In 2020, employees at all levels around the globe participated in almost 600,000 hours of learning content across professional, management development, and technical training.

This included both online and instructor-led training.

Health and Safety

Mattel is committed to providing a safe and ethical working environment for all of its employees, including the factories where Mattel products are made.

Mattel has led the way in formalizing this principle into action.

For example, in 1997, Mattel became one of the first companies to create standards that guide its efforts to manufacture responsibly.

Today, these standards are known as Mattel’s Responsible Supply Chain Commitment, and they set forth ethical and environmental expectations for Mattel’s supply chain partners.

Over the course of the COVID-19 pandemic, Mattel's top priority has been to protect the health and safety of its employees while at the same time mitigating the disruption to its business.

Mattel has implemented enhanced protocols to provide a safe and sanitary working environment for employees.

In late 2019 and early 2020, Mattel successfully transitioned to a remote work structure for many of its employees.

In addition, Mattel has adopted rigorous health and safety measures to safeguard employees at its manufacturing plants and distribution centers.

In 2021, employees at all levels around the globe participated in several hundred thousand hours of learning content across professional, management development, and technical training.

This included both online classes and instructor-led training.

Health and Safety, and Employee Well-Being

Mattel is focused on creating a safe and healthy workplace for all of its employees.

In 1997, Mattel became one of the first companies to create standards for responsible manufacturing.

Since then, these principles have become the foundation for Mattel's Responsible Supply Chain Commitment, a comprehensive set of standards and oversight processes that establish Mattel’s expectations for responsible factory working conditions, environmental protections, social compliance, health, and safety in both its own manufacturing facilities and those of its supply chain partners.

Over the course of the COVID-19 pandemic, Mattel has prioritized protecting the health and safety of its employees while at the same time mitigating the disruption to its business.

Mattel implemented stringent health and safety measures, process controls, operating procedures, and training to help provide a safe and sanitary working environment for employees.

Mattel also transitioned employees, as appropriate based on role, to a work-from-home system and increased the use of virtual meeting technologies.

Mattel offers several benefits to promote employee well-being, including flexible work hours and/or paid time off, health and welfare insurance options, retirement plans, and basic and supplemental employee life insurance for eligible individuals.

To supplement Mattel’s comprehensive health and wellness programs, it introduced specific programs targeted at unique issues arising during the pandemic, including working from home, maintaining work/life balance, and improving health and happiness.

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Item 1. Business