Fair Value Measurements
The following tables present information about Mattel's financial assets and liabilities measured and reported in the financial statements at fair value on a recurring basis as of December 31, 2025 and 2024 and indicate the fair value hierarchy of the valuation techniques utilized to determine such fair value. The three levels of the fair value hierarchy are as follows:
•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 significant to the fair value of the assets or liabilities.
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| | December 31, 2025 |
| Level 1 | | Level 2 | | Level 3 | | Total |
| | (In thousands) |
| Assets: | | | | | | | |
| Foreign currency forward exchange and other contracts (a) | $ | — | | | $ | 1,338 | | | $ | — | | | $ | 1,338 | |
| | | | | | | |
| Liabilities: | | | | | | | |
| Foreign currency forward exchange and other contracts (a) | $ | — | | | $ | 16,333 | | | $ | — | | | $ | 16,333 | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | December 31, 2024 |
| Level 1 | | Level 2 | | Level 3 | | Total |
| | (In thousands) |
| Assets: | | | | | | | |
| Foreign currency forward exchange and other contracts (a) | $ | — | | | $ | 22,031 | | | $ | — | | | $ | 22,031 | |
| | | | | | | |
| Liabilities: | | | | | | | |
| Foreign currency forward exchange and other contracts (a) | $ | — | | | $ | 2,337 | | | $ | — | | | $ | 2,337 | |
(a)The fair value of the foreign currency forward exchange and other contracts was 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.
Other Financial Instruments
Mattel's financial instruments included cash and equivalents, accounts receivable and payable, accrued liabilities, short-term borrowings, and long-term debt. The fair values of these instruments, excluding long-term debt, approximate their carrying amounts because of their short-term nature. Cash and equivalents were classified as Level 1 and all other financial instruments were classified as Level 2 within the fair value hierarchy.
The estimated fair value of Mattel's long-term debt was $2.32 billion (compared to a carrying amount of $2.35 billion) as of December 31, 2025 and $2.27 billion (compared to a carrying amount of $2.35 billion) as of December 31, 2024. The estimated fair values have been calculated based on broker quotes or rates for the same or similar instruments and were classified as Level 2 within the fair value hierarchy.