Mattel Inc Liquidation Value

Mattel's Q1 2026 10-Q (period ending March 31, 2026) shows a deeply negative liquidation recovery posture consistent with prior periods. MFFAIS reports a cash liquidation value of approximately -$2.94B, liquid liquidation value of approximately -$2.25B, and operating liquidation value of approximately -$1.58B, all reflecting the standard asymmetry between haircut assets and face-value liabilities.

On the asset side, cash of $866M receives full credit but is down $377M from December 31, 2025, driven by $200M in share repurchases, $74.8M cash paid for the Mattel163 acquisition net of cash acquired, and $65.1M in capex. Accounts receivable of $686.7M (net, allowance $9.5M) recovers at 90-95%, yielding roughly $617-652M. Inventory of $676.9M at a 60% haircut yields approximately $406M. PP&E net book value is $620.7M (gross $1.975B less $1.355B accumulated depreciation); at 50-70% recovery that yields $310-434M. The large asset categories that recover at zero under the liquidation lens are goodwill ($1.584B, up $196M from the Mattel163 step-acquisition), finite-lived intangibles ($486M net), operating lease ROU assets ($314M), deferred tax assets ($332M noncurrent), and other noncurrent assets ($500M). These collectively represent over $3.2B of book assets that contribute nothing to liquidation proceeds.

The Mattel163 acquisition (March 2, 2026, $178.6M purchase price for the remaining 50% interest, $74.8M net cash outflow) added $195.8M of goodwill and $147.9M gain from remeasurement of the prior equity interest — both irrelevant under liquidation (goodwill = $0 recovery; gain is non-cash and non-recurring). This transaction materially shifted the tangible-to-intangible asset mix unfavorably for liquidation purposes.

On the liability side, total debt remains $2.333B at face value (unchanged from December 31, 2025; the April 2026 notes had already been refinanced in 2025). Current liabilities total $1.211B including $373M accounts payable, $821M accrued liabilities, and $113.6M deferred revenue (which extinguishes on wind-up but represents a claim). Noncurrent liabilities total $3.013B including $2.333B long-term debt, $263M noncurrent operating lease obligations, and $417M other noncurrent liabilities (pension and other). Operating lease obligations ($343M combined current and noncurrent) and pension obligations do not extinguish on windup. The OPG restructuring program carries remaining cash obligations of up to approximately $8M (cumulative charges of $132M against a $140M total cash ceiling).

Gross margin compression to 44.9% from 49.4% (driven by tariff costs, FX, and inflation) is income-statement, not directly a liquidation factor, but signals deteriorating asset productivity. The filing discusses tariff refund uncertainty under IEEPA litigation — no balance sheet impact booked. Pension expected contributions of $13M remaining for 2026 are a disclosed going-concern liability not separately tagged in XBRL beyond the contribution line.

The prior filing (10-K for December 31, 2025) shows the balance sheet starting point. The primary changes this quarter are: cash down $377M, AR up $53M versus prior year Q1, inventory up $19M versus prior year Q1, goodwill up $196M from Mattel163 step-acquisition, and stockholders' equity down $127M to $2.106B from $2.233B at year-end 2025.