2 unchanged sentences
Currency exchange rate fluctuations impact Mattel’s results of operations and cash flows.
−Removed: Inventory transactions denominated in the Euro, Mexican peso, British pound sterling, Canadian dollar, Russian ruble, Australian dollar and Brazilian real were the primary transactions that caused foreign currency transaction exposure for Mattel in 2020.
+Added: Inventory transactions denominated in the Euro, Mexican peso, British pound sterling, Canadian dollar, Russian ruble, Australian dollar, and Polish zloty were the primary transactions that caused foreign currency transaction exposure for Mattel in 2021.
Mattel seeks to mitigate its exposure to market risk by monitoring its foreign currency transaction exposure for the year and partially hedging such exposure using foreign currency forward exchange contracts primarily to hedge its purchase and sale of inventory and other intercompany transactions denominated in foreign currencies.
These contracts generally have maturity dates of up to 24 months.
−Removed: For those intercompany receivables and payables that are not hedged, the transaction gains or losses are recorded in the consolidated statements of operations in the period in which the exchange rate changes as part of operating income (loss) or other non-operating expense, net based on the nature of the underlying transaction.
+Added: For those intercompany receivables and payables that are not hedged, the transaction gains or losses are recorded in the consolidated statements of operations in the period in which the exchange rate changes as part of operating income or other non-operating expense, net based on the nature of the underlying transaction.
Transaction gains or losses on hedged intercompany inventory transactions are recorded in the consolidated statements of operations in the period in which the inventory is sold to customers.
8 unchanged sentences
The resulting currency translation adjustments are recorded as a component of accumulated other comprehensive loss within stockholders’ equity.
−Removed: Mattel’s primary currency translation adjustments in 2020 were related to its net investments in entities having functional currencies denominated in the Brazilian real, Russian ruble, British pound sterling and the Mexican peso.
+Added: Mattel’s primary currency translation adjustments in 2021 were related to its net investments in entities having functional currencies denominated in the Turkish lira, Chilean peso, Mexican peso, Euro, and Brazilian real.
There are numerous factors impacting the amount by which Mattel’s financial results are affected by foreign currency translation and transaction gains and losses resulting from changes in currency exchange rates, including, but not limited to, the level of foreign currency forward exchange contracts in place at a given time and the volume of foreign currency-denominated transactions in a given period.
−Removed: However, assuming that such factors were held constant, Mattel estimates that a 1 percent change in the U.S.
−Removed: dollar Trade-Weighted Index would impact Mattel’s net sales by approximately 0.4% and its full year earnings per share by approximately $0.00 to $0.01.
−Removed: Mattel’s foreign currency forward e xchange contracts that were used to hedge firm foreign currency commitments as of December 31, 2020 are shown below.
+Added: However, assuming that such factors were held constant, Mattel estimates that a one percent change in the U.S.
+Added: dollar would have impacted Mattel's 2021 net sales by approximately 0.4% and net income per share by approximately $0.01.
+Added: Mattel’s foreign currency forward e xchange contracts that were used to hedge firm commitments and anticipated transactions as of December 31, 2021 are shown below.
All contracts in the following table are against the U.S.
31 unchanged sentences
dollar detailed in the above table, Mattel also had contracts to sell British pound sterling for the purchase of Euro.
−Removed: As of December 31, 2020, these contracts had a contract amount of $43.1 million and a fair value of $1.1 million.
−Removed: Had Mattel not entered into hedges to limit the effect of currency exchange rate fluctuations on its results of operations and cash flows, its earnings before income taxes would have increased by approximately $13.7 million in 2020 and decreased by approximately $20 million in 2019.
+Added: As of December 31, 2021, these contracts had a contract amount of $68.6 million and a fair value liability of $1.2 million.
+Added: Had Mattel not entered into hedges to limit the effect of currency exchange rate fluctuations on its results of operations and cash flows, its earnings before income taxes would have decreased by approximately $3 million in 2021 and increased by approximately $18 million in 2020.
United Kingdom Operations
1 unchanged sentence
In February 2017, the British Parliament voted in favor of allowing the British government to begin the formal process of Brexit and discussions with the EU began in March 2017.
−Removed: On January 29, 2020, the British Parliament approved a withdrawal agreement, and the United Kingdom ("U.K.") officially withdrew from the EU on January 31, 2020 and entered into a transition period, ending on December 31, 2020.
+Added: On January 29, 2020, the British Parliament approved a withdrawal agreement, and the United Kingdom ("U.K.") officially withdrew from the EU on January 31, 2020 and entered into a transition period that ended on December 31, 2020.
On December 24, 2020, the U.K.
3 unchanged sentences
As a result of the agreement, the U.K.
−Removed: will no longer be considered a member of the EU Single Market and Customs Union and will exit all EU policies and trade agreements.
+Added: is no longer considered a member of the EU Single Market and Customs Union and exited all EU policies and trade agreements.
The transfer of goods between the U.K.
−Removed: and EU will be subject to additional inspections and checkpoints causing possible delays in the movement of inventory.
−Removed: Although the agreement has mitigated a portion of the risk that arose due to the U.K.'s withdrawal from the EU, the overall impact caused on Mattel's operations is still being evaluated, including in the volatility of the British pound sterling.
+Added: and EU is subject to additional inspections and checkpoints causing possible delays in the movement of inventory.
+Added: On April 27, 2021, the European Parliament gave final approval to the EU-UK Trade and Cooperation Agreement, and on April 29, 2021, the EU approved the conclusion of the agreement by way of a Council Decision.
+Added: As a result, the agreements between the U.K.
+Added: and the EU came into effect on May 1, 2021.
+Added: This was the last official step in formalizing the new relationship between the U.K.
+Added: Although the agreement has mitigated a portion of the risk that arose due to the U.K.'s withdrawal from the EU, the overall impact on Mattel's operations is still being evaluated, including the volatility of the British pound sterling.
Mattel's U.K.
operations represented approximately 6% of Mattel's consolidated net sales for the year ended December 31, 2021.
−Removed: Argentina Operations
−Removed: Effective July 1, 2018, Mattel accounted for Argentina as a highly inflationary economy, as the projected three-year cumulative inflation rate exceeded 100%.
−Removed: As such, beginning July 1, 2018, Mattel's Argentina subsidiary has designated the U.S.
−Removed: dollar as its functional currency.
−Removed: Mattel’s Argentina subsidiary represented less than 1% of Mattel's consolidated net sales for the years ended December 31, 2020 and 2019.
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.