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 Polish zloty were the primary transactions that caused foreign currency transaction exposure for Mattel in 2021.
+Added: Unhedged transactions denominated in the Chinese yuan, Euro, Mexican peso, and Russian ruble were the primary transactions that caused foreign currency transaction exposure for Mattel in 2022.
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.
11 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 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.
+Added: Mattel's primary currency translation adjustments in 2022 were related to its net investments in entities having functional currencies denominated in the British pound sterling, Euro, Mexican peso, Brazilian real, and Hong Kong dollar.
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.
However, assuming that such factors were held constant, Mattel estimates that a one percent change in the U.S.
−Removed: dollar would have impacted Mattel's 2021 net sales by approximately 0.4% and net income per share by approximately $0.01.
+Added: dollar would have impacted Mattel's 2022 net sales by approximately 0.4% and would have less than a $0.01 impact to Mattel's net income per share.
Mattel's foreign currency forward e xchange contracts that were used to hedge firm commitments and anticipated transactions as of December 31, 2022 are shown below.
23 unchanged sentences
Swiss franc 27,411 0.92 140 — — —
−Removed: Turkish lira — — — 3,032 12.71 213
$ 272,525 $ (5,371) $ 349,725 $ 11,119
7 unchanged sentences
As of December 31, 2022, these contracts had a contract amount of $47.4 million and a fair value liability of $1.7 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 decreased by approximately $3 million in 2021 and increased by approximately $18 million in 2020.
−Removed: United Kingdom Operations
−Removed: During June 2016, the referendum by British voters to exit the EU ("Brexit") adversely impacted global markets and resulted in a sharp decline of the British pound sterling against the U.S.
−Removed: 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 that ended on December 31, 2020.
−Removed: On December 24, 2020, the U.K.
−Removed: and EU agreed upon The EU-UK Trade and Cooperation Agreement.
−Removed: The agreement was provisionally applicable beginning January 1, 2021 and sets new rules and arrangements between the U.K.
−Removed: and EU in areas such as the trade of goods and services, intellectual property, transportation, and more.
−Removed: As a result of the agreement, the U.K.
−Removed: is no longer considered a member of the EU Single Market and Customs Union and exited all EU policies and trade agreements.
−Removed: The transfer of goods between the U.K.
−Removed: and EU is subject to additional inspections and checkpoints causing possible delays in the movement of inventory.
−Removed: 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.
−Removed: As a result, the agreements between the U.K.
−Removed: and the EU came into effect on May 1, 2021.
−Removed: This was the last official step in formalizing the new relationship between the U.K.
−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 on Mattel's operations is still being evaluated, including the volatility of the British pound sterling.
−Removed: Mattel's U.K.
−Removed: operations represented approximately 6% of Mattel's consolidated net sales for the year ended December 31, 2021.
+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 $19 million in 2022 and decreased by approximately $3 million in 2021.
+Added: Turkey Operations
+Added: Effective April 1, 2022, Mattel has accounted for Turkey as a highly inflationary economy, as the projected three-year cumulative inflation rate exceeded 100%.
+Added: As such, beginning April 1, 2022, Mattel's Turkey subsidiary has designated the U.S.
+Added: dollar as its functional currency.
+Added: Mattel's Turkey subsidiary represented approximately 1% of Mattel's consolidated net sales for the year ended December 31, 2022.
+Added: Argentina Operations
+Added: During the third quarter of 2021, Mattel began a process to liquidate its subsidiary in Argentina.
+Added: The liquidation was substantially completed during the fourth quarter of 2022.
+Added: Prior to the substantial completion of the liquidation, Mattel had recorded $45.4 million of currency translation adjustments in accumulated other comprehensive loss, net within its consolidated balance sheet.
+Added: As a result of the substantially complete liquidation, the cumulative currency translation adjustments were removed from accumulated other comprehensive loss and recognized as a loss in other non-operating expense within the consolidated statement of operations.
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.