In february 2017 the fasb issued asu 2017 05 other

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In February 2017, the FASB issued ASU 2017-05, Other Income - Gains and Losses from the Derecognition of Nonfinancial Assets , which clarifies the scope on recently established guidance on nonfinancial asset derecognition as well as the accounting for partial sales of nonfinancial assets. ASU 2017-05 will be effective for interim and annual reporting periods beginning on January 1, 2018. Mattel does not expect the adoption of ASU 2017-05 to have a material effect on its operating results or financial position. In March 2017, the FASB issued ASU 2017-07, Compensation - Retirement Benefits: Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost , which requires entities that sponsor defined benefit plans to (i) present service cost within operations, if such a subtotal is presented, (ii) other components of net benefit costs should be presented separately outside of income from operations, if such a subtotal is presented, and (iii) only the service cost component should be capitalized, when applicable. If a separate line item is not used, the line item in the income statement where the other components of net benefit costs are included must be disclosed. Further, gains and losses from curtailments and settlements, and the cost of certain termination benefits should be reported in the same manner as other components of net benefit cost. ASU 2017-07 will be effective for interim and annual reporting periods beginning on January 1, 2018. Mattel does not expect the adoption of ASU 2017-07 to have a material effect on its operating results or financial position. In May 2017, the FASB issued ASU 2017-09, Compensation - Stock Compensation: Scope of Modification Accounting , which clarifies when to account for a change to the terms or conditions of a share-based payment award as a modification. ASU 2017-09 will be effective prospectively for interim and annual reporting periods beginning on January 1, 2018. Mattel does not expect the adoption of ASU 2017-09 to have a material effect on its operating results or financial position. In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging: Targeted Improvements to Accounting for Hedging Activities , which expands the hedging strategies eligible for hedge accounting and changes both how companies assess hedge effectiveness and presentation and disclosure requirements. ASU 2017-12 will be effective for interim and annual reporting periods beginning on January 1, 2019. Early application is permitted in any interim period after issuance of the update. Mattel is currently evaluating the impact of the adoption of ASU 2017-12 on its operating results and financial position. Note 2—Property, Plant, and Equipment Property, plant, and equipment, net includes the following: December 31, 2017 December 31, 2016 (In thousands) Land $ 25,114 $ 25,113 Buildings 303,495 280,226 Machinery and equipment 902,861 828,969 Software 384,568 356,622 Tools, dies, and molds 887,442 869,385 Capital leases 24,279 23,970 Leasehold improvements 213,238 261,254 $ 2,740,997 $ 2,645,539 Less: accumulated depreciation (1,955,712) (1,871,574) $ 785,285 $ 773,965
67 During 2017, Mattel recorded an asset impairment charge of $21.2 million within other selling and administrative

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