2 unchanged sentences
Currency exchange rate fluctuations impact Mattel's results of operations and cash flows.
−Removed: 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.
+Added: Unhedged transactions denominated in the Chinese yuan and Euro were the primary transactions that caused foreign currency transaction exposure for Mattel in 2023.
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 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 (income) 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 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.
+Added: Mattel's primary currency translation adjustments in 2023 were related to its net investments in entities having functional currencies denominated in the Mexican peso, Russian ruble, and British pound sterling.
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.
4 unchanged sentences
dollar and are maintained by reporting units with a U.S.
−Removed: dollar functional currency, with the exception of the Indonesian rupiah contracts, which are maintained by entities with an Indonesian rupiah functional currency.
+Added: dollar functional currency.
Amount Weighted-Average
7 unchanged sentences
Czech koruna 2,740 22.36 6 — — —
−Removed: Danish krone 2,728 6.99 19 — — —
Euro (a) 30,880 1.10 158 312,151 1.10 (3,524)
Hungarian forint 5,916 350.50 62 — — —
−Removed: Indonesian rupiah 36,094 15,068 (1,240) — — —
Japanese yen — — — 7,909 143.54 (142)
Mexican peso — — — 52,399 17.86 (1,773)
−Removed: New Zealand dollar (a) 6,535 0.63 13 — — —
Polish zloty 17,869 3.95 99 — — —
−Removed: Russian ruble 29,681 59.27 (5,234) — — —
−Removed: Singapore dollar 12,276 1.35 123 — — —
South African rand — — — 2,919 18.39 15
8 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, 2022, these contracts had a contract amount of $47.4 million and a fair value liability of $1.7 million.
+Added: As of December 31, 2023, these contracts had a contract amount of $45.6 million and a fair value asset of less than $0.1 million.
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 $30 million in 2023 and decreased by approximately $19 million in 2022.
7 unchanged sentences
The liquidation was substantially completed during the fourth quarter of 2022.
−Removed: 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.
−Removed: 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.
+Added: Prior to the substantial completion of the liquidation, Mattel had recorded $45.4 million of currency translation adjustments in accumulated other comprehensive loss 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 in the fourth quarter of 2022.
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.