QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |||||||
(Address of Principal Executive Offices) | (Zip Code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
x | Accelerated filer | ☐ | |||||||||
Non-accelerated filer | ☐ | Smaller reporting company | |||||||||
Emerging growth company |
October 1, 2023 | September 25, 2022 | December 25, 2022 | |||||||||||||||
ASSETS | |||||||||||||||||
Current assets | |||||||||||||||||
Cash and cash equivalents including restricted cash of $ | $ | $ | $ | ||||||||||||||
Accounts receivable, less allowance for doubtful accounts of $ | |||||||||||||||||
Inventories | |||||||||||||||||
Prepaid expenses and other current assets | |||||||||||||||||
Assets held for sale | |||||||||||||||||
Total current assets | |||||||||||||||||
Property, plant and equipment, less accumulated depreciation of $ | |||||||||||||||||
Other assets | |||||||||||||||||
Goodwill | |||||||||||||||||
Other intangible assets, net of accumulated amortization of $ | |||||||||||||||||
Other | |||||||||||||||||
Total other assets | |||||||||||||||||
Total assets | $ | $ | $ | ||||||||||||||
LIABILITIES, NONCONTROLLING INTERESTS AND SHAREHOLDERS' EQUITY | |||||||||||||||||
Current liabilities | |||||||||||||||||
Short-term borrowings | $ | $ | $ | ||||||||||||||
Current portion of long-term debt | |||||||||||||||||
Accounts payable | |||||||||||||||||
Accrued liabilities | |||||||||||||||||
Liabilities held for sale | |||||||||||||||||
Total current liabilities | |||||||||||||||||
Long-term debt | |||||||||||||||||
Other liabilities | |||||||||||||||||
Total liabilities | $ | $ | $ | ||||||||||||||
Redeemable noncontrolling interests | |||||||||||||||||
Shareholders' equity | |||||||||||||||||
Preference stock of $ | |||||||||||||||||
Common stock of $ | |||||||||||||||||
Additional paid-in capital | |||||||||||||||||
Retained earnings | |||||||||||||||||
Accumulated other comprehensive loss | ( | ( | ( | ||||||||||||||
Treasury stock, at cost; | ( | ( | ( | ||||||||||||||
Noncontrolling interests | |||||||||||||||||
Total shareholders' equity | |||||||||||||||||
Total liabilities, noncontrolling interests and shareholders' equity | $ | $ | $ |
Quarter Ended | Nine Months Ended | ||||||||||||||||||||||
October 1, 2023 | September 25, 2022 | October 1, 2023 | September 25, 2022 | ||||||||||||||||||||
Net revenues | $ | $ | $ | $ | |||||||||||||||||||
Costs and expenses: | |||||||||||||||||||||||
Cost of sales | |||||||||||||||||||||||
Program cost amortization | |||||||||||||||||||||||
Royalties | |||||||||||||||||||||||
Product development | |||||||||||||||||||||||
Advertising | |||||||||||||||||||||||
Amortization of intangibles | |||||||||||||||||||||||
Selling, distribution and administration | |||||||||||||||||||||||
Loss on assets held for sale | |||||||||||||||||||||||
Impairment of goodwill | |||||||||||||||||||||||
Total costs and expenses | |||||||||||||||||||||||
Operating profit (loss) | ( | ( | |||||||||||||||||||||
Non-operating expense (income): | |||||||||||||||||||||||
Interest expense | |||||||||||||||||||||||
Interest income | ( | ( | ( | ( | |||||||||||||||||||
Other (income) expense, net | ( | ( | ( | ||||||||||||||||||||
Total non-operating expense, net | |||||||||||||||||||||||
Earnings (loss) before income taxes | ( | ( | |||||||||||||||||||||
Income tax expense (benefit) | ( | ( | |||||||||||||||||||||
Net earnings (loss) | ( | ( | |||||||||||||||||||||
Net earnings (loss) attributable to noncontrolling interests | ( | ( | |||||||||||||||||||||
Net earnings (loss) attributable to Hasbro, Inc. | $ | ( | $ | $ | ( | $ | |||||||||||||||||
Net earnings (loss) per common share: | |||||||||||||||||||||||
Basic | $ | ( | $ | $ | ( | $ | |||||||||||||||||
Diluted | $ | ( | $ | $ | ( | $ | |||||||||||||||||
Cash dividends declared per common share | $ | $ | $ | $ |
Quarter Ended | Nine Months Ended | ||||||||||||||||||||||
October 1, 2023 | September 25, 2022 | October 1, 2023 | September 25, 2022 | ||||||||||||||||||||
Net earnings (loss) | $ | ( | $ | $ | ( | $ | |||||||||||||||||
Other comprehensive earnings (loss): | |||||||||||||||||||||||
Foreign currency translation adjustments, net of tax | ( | ( | ( | ||||||||||||||||||||
Unrealized holding losses on available-for-sale securities, net of tax | ( | ( | |||||||||||||||||||||
Net gains (losses) on cash flow hedging activities, net of tax | ( | ||||||||||||||||||||||
Reclassifications to earnings, net of tax: | |||||||||||||||||||||||
Net losses (gains) on cash flow hedging activities | ( | ( | |||||||||||||||||||||
Amortization of unrecognized pension and postretirement amounts | ( | ( | |||||||||||||||||||||
Total other comprehensive earnings (loss), net of tax | $ | $ | ( | $ | $ | ( | |||||||||||||||||
Total comprehensive earnings (loss) attributable to noncontrolling interests | ( | ( | |||||||||||||||||||||
Total comprehensive earnings (loss) attributable to Hasbro, Inc. | $ | ( | $ | $ | ( | $ |
Nine months ended | |||||||||||
October 1, 2023 | September 25, 2022 | ||||||||||
Cash flows from operating activities: | |||||||||||
Net earnings (loss) | $ | ( | $ | ||||||||
Adjustments to reconcile net earnings (loss) to net cash provided by operating activities: | |||||||||||
Depreciation of plant and equipment | |||||||||||
Amortization of intangibles | |||||||||||
Impairment of goodwill | |||||||||||
Impairment of intangible assets | |||||||||||
Loss on assets held for sale | |||||||||||
Program cost amortization | |||||||||||
Deferred income taxes | ( | ( | |||||||||
Stock-based compensation | |||||||||||
Other non-cash items | ( | ||||||||||
Change in operating assets and liabilities net of acquired balances: | |||||||||||
(Increase) decrease in accounts receivable | ( | ||||||||||
Decrease (increase) in inventories | ( | ||||||||||
Decrease in prepaid expenses and other current assets | |||||||||||
Program spend, net | ( | ( | |||||||||
Decrease in accounts payable and accrued liabilities | ( | ( | |||||||||
Change in net deemed repatriation tax | ( | ( | |||||||||
Other | ( | ||||||||||
Net cash provided by operating activities | |||||||||||
Cash flows from investing activities: | |||||||||||
Additions to property, plant and equipment | ( | ( | |||||||||
Acquisitions | ( | ||||||||||
Other | ( | ||||||||||
Net cash utilized by investing activities | ( | ( | |||||||||
Cash flows from financing activities: | |||||||||||
Proceeds from borrowings with maturity greater than three months | |||||||||||
Repayments of borrowings with maturity greater than three months | ( | ( | |||||||||
Net proceeds from other short-term borrowings | |||||||||||
Purchases of common stock | ( | ||||||||||
Stock-based compensation transactions | |||||||||||
Dividends paid | ( | ( | |||||||||
Payments related to tax withholding for share-based compensation | ( | ( | |||||||||
Other | ( | ( | |||||||||
Net cash utilized by financing activities | ( | ( | |||||||||
Effect of exchange rate changes on cash | ( | ( | |||||||||
Net decrease in cash, cash equivalents and restricted cash | ( | ( | |||||||||
Net change due to cash classified as held for sale | ( | ( | |||||||||
Net decrease in cash, cash equivalents and restricted cash | ( | ( | |||||||||
Cash, cash equivalents and restricted cash at beginning of year | |||||||||||
Cash, cash equivalents and restricted cash at end of period | $ | $ | |||||||||
Supplemental information | |||||||||||
Cash paid during the period for: | |||||||||||
Interest | $ | $ | |||||||||
Income taxes | $ | $ |
Three Months Ended October 1, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Treasury Stock | Noncontrolling Interests | Total Shareholders' Equity | Redeemable Noncontrolling Interests | |||||||||||||||||||||||||||||||||||||||||||
Balance, July 2, 2023 | $ | ( | ( | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||
Net loss attributable to Hasbro, Inc. | — | — | ( | — | — | — | ( | — | ||||||||||||||||||||||||||||||||||||||||||
Net earnings attributable to noncontrolling interests | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive earnings | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation transactions | — | ( | — | — | ( | — | ( | — | ||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||
Dividends declared | — | ( | — | — | — | ( | — | |||||||||||||||||||||||||||||||||||||||||||
Distributions paid to noncontrolling owners and other foreign exchange | — | — | — | — | — | ( | ( | — | ||||||||||||||||||||||||||||||||||||||||||
Balance, October 1, 2023 | $ | ( | ( | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended September 25, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Treasury Stock | Noncontrolling Interests | Total Shareholders' Equity | Redeemable Noncontrolling Interests | |||||||||||||||||||||||||||||||||||||||||||
Balance, June 26, 2022 | $ | ( | ( | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||
Net earnings attributable to Hasbro, Inc. | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Net loss attributable to noncontrolling interests | — | — | — | — | — | ( | ( | — | ||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | ( | — | — | ( | — | ||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation transactions | — | ( | — | — | ( | — | ( | — | ||||||||||||||||||||||||||||||||||||||||||
Purchases of common stock | — | — | — | — | ( | — | ( | — | ||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||
Dividends declared | — | ( | — | — | — | ( | — | |||||||||||||||||||||||||||||||||||||||||||
Buyout of redeemable noncontrolling interest | — | — | — | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||||
Distributions paid to noncontrolling owners and other foreign exchange | — | — | — | — | — | ( | ( | — | ||||||||||||||||||||||||||||||||||||||||||
Balance, September 25, 2022 | $ | ( | ( | $ | $ |
Nine Months Ended October 1, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Treasury Stock | Noncontrolling Interests | Total Shareholders' Equity | Redeemable Noncontrolling Interests | |||||||||||||||||||||||||||||||||||||||||||
Balance, December 25, 2022 | $ | ( | ( | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||
Net loss attributable to Hasbro, Inc. | — | ( | — | — | — | ( | — | |||||||||||||||||||||||||||||||||||||||||||
Net earnings attributable to noncontrolling interests | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive earnings | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation transactions | — | ( | — | — | — | ( | — | |||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||
Dividends declared | — | ( | — | — | — | ( | — | |||||||||||||||||||||||||||||||||||||||||||
Distributions paid to noncontrolling owners and other foreign exchange | — | — | — | — | — | ( | ( | — | ||||||||||||||||||||||||||||||||||||||||||
Renegade buyout | — | ( | — | — | — | — | ( | — | ||||||||||||||||||||||||||||||||||||||||||
Balance, October 1, 2023 | $ | ( | ( | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||
Nine Months Ended September 25, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Treasury Stock | Noncontrolling Interests | Total Shareholders' Equity | Redeemable Noncontrolling Interests | |||||||||||||||||||||||||||||||||||||||||||
Balance, December 26, 2021 | $ | ( | ( | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||
Net earnings attributable to Hasbro, Inc. | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Net earnings (loss) attributable to noncontrolling interests | — | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||||||||||||||||
Change in put option value | — | ( | — | — | — | — | ( | — | ||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | ( | — | — | ( | — | ||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation transactions | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||
Purchases of common stock | — | — | — | — | ( | — | ( | — | ||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||
Dividends declared | — | ( | — | — | — | ( | — | |||||||||||||||||||||||||||||||||||||||||||
Buyout of redeemable noncontrolling interest | — | — | — | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||||
Distributions paid to noncontrolling owners and other foreign exchange | — | — | — | — | — | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||
Balance, September 25, 2022 | $ | ( | ( | $ | $ |
October 1, 2023 | |||||
Assets | |||||
Balance at beginning of the year | $ | ||||
Recognized in current year | |||||
Amounts reclassified to accounts receivable | ( | ||||
Reclassified to assets held for sale (1) | ( | ||||
Foreign currency impact | ( | ||||
Ending Balance | $ | ||||
Liabilities | |||||
Balance at beginning of the year | $ | ||||
Recognized in current year | |||||
Amounts in beginning balance reclassified to revenue | ( | ||||
Current year amounts reclassified to revenue | ( | ||||
Reclassified to liabilities held for sale (1) | ( | ||||
Foreign currency impact | ( | ||||
Ending Balance | $ |
2023 | 2022 | ||||||||||||||||||||||
Quarter | Basic | Diluted | Basic | Diluted | |||||||||||||||||||
Net (loss) earnings attributable to Hasbro, Inc. | $ | ( | ( | $ | |||||||||||||||||||
Average shares outstanding | |||||||||||||||||||||||
Effect of dilutive securities: | |||||||||||||||||||||||
Options and other share-based awards | — | — | |||||||||||||||||||||
Equivalent Shares | $ | $ | |||||||||||||||||||||
Net (loss) earnings attributable to Hasbro, Inc. per common share | $ | ( | ( | $ |
2023 | 2022 | ||||||||||||||||||||||
Nine Months | Basic | Diluted | Basic | Diluted | |||||||||||||||||||
Net (loss) earnings attributable to Hasbro, Inc. | $ | ( | ( | $ | |||||||||||||||||||
Average shares outstanding | |||||||||||||||||||||||
Effect of dilutive securities: | |||||||||||||||||||||||
Options and other share-based awards | — | — | |||||||||||||||||||||
Equivalent Shares | $ | $ | |||||||||||||||||||||
Net (loss) earnings attributable to Hasbro, Inc. per common share | $ | ( | ( | $ |
Consumer Products | Wizards of the Coast and Digital Gaming | Entertainment | Total | |||||||||||||||||||||||
2023 | ||||||||||||||||||||||||||
Balance as of December 25, 2022 | $ | $ | ||||||||||||||||||||||||
Foreign exchange translation | ( | ( | ||||||||||||||||||||||||
Impairment during the period (1) | ( | ( | ||||||||||||||||||||||||
Balance as of October 1, 2023 | $ | $ |
Consumer Products | Wizards of the Coast and Digital Gaming | Entertainment | Total | |||||||||||||||||||||||
2022 | ||||||||||||||||||||||||||
Balance as of December 26, 2021 | $ | $ | ||||||||||||||||||||||||
Acquired during the period | ||||||||||||||||||||||||||
Foreign exchange translation | ( | ( | ( | ( | ||||||||||||||||||||||
Impairment during the period | ( | ( | ||||||||||||||||||||||||
Balance as of September 25, 2022 | $ | $ |
Quarter Ended | Nine Months Ended | ||||||||||||||||||||||
October 1, 2023 | September 25, 2022 | October 1, 2023 | September 25, 2022 | ||||||||||||||||||||
Other comprehensive earnings (loss), tax effect: | |||||||||||||||||||||||
Tax expense on unrealized holding losses | $ | $ | $ | ||||||||||||||||||||
Tax (expense) benefit on cash flow hedging activities | ( | ( | ( | ||||||||||||||||||||
Reclassifications to earnings, tax effect: | |||||||||||||||||||||||
Tax (benefit) expense on cash flow hedging activities | ( | ( | |||||||||||||||||||||
Amortization of unrecognized pension and postretirement amounts | ( | ||||||||||||||||||||||
Total tax effect on other comprehensive earnings (loss) | $ | ( | $ | ( | $ | ( |
Pension and Postretirement Amounts | Gains (Losses) on Derivative Instruments | Unrealized Holding Gains (Losses) on Available- for-Sale Securities | Foreign Currency Translation Adjustments | Total Accumulated Other Comprehensive Loss | |||||||||||||||||||||||||
2023 | |||||||||||||||||||||||||||||
Balance at December 25, 2022 | $ | ( | ( | ( | ( | $ | ( | ||||||||||||||||||||||
Current period other comprehensive earnings (loss) | ( | ||||||||||||||||||||||||||||
Balance at October 1, 2023 | $ | ( | ( | ( | ( | $ | ( | ||||||||||||||||||||||
2022 | |||||||||||||||||||||||||||||
Balance at December 26, 2021 | $ | ( | ( | ( | $ | ( | |||||||||||||||||||||||
Current period other comprehensive earnings (loss) | ( | ( | ( | ||||||||||||||||||||||||||
Balance at September 25, 2022 | $ | ( | ( | ( | $ | ( |
October 1, 2023 | September 25, 2022 | December 25, 2022 | |||||||||||||||
Royalties | $ | $ | $ | ||||||||||||||
Deferred revenue | |||||||||||||||||
Dividends | |||||||||||||||||
Cancellation charges | |||||||||||||||||
Other taxes | |||||||||||||||||
Payroll and management incentives | |||||||||||||||||
General vendor accruals | |||||||||||||||||
Severance | |||||||||||||||||
Advertising | |||||||||||||||||
Interest | |||||||||||||||||
Freight | |||||||||||||||||
Participations and residuals | |||||||||||||||||
Accrued income taxes | |||||||||||||||||
Defined contributions plans | |||||||||||||||||
Accrued expenses - IIP & IIC | |||||||||||||||||
Production payables | |||||||||||||||||
Other | |||||||||||||||||
Total accrued liabilities (1) | $ | $ | $ |
October 1, 2023 | September 25, 2022 | December 25, 2022 | |||||||||||||||||||||||||||||||||
Carrying Cost | Fair Value | Carrying Cost | Fair Value | Carrying Cost | Fair Value | ||||||||||||||||||||||||||||||
$ | $ | $ | |||||||||||||||||||||||||||||||||
Variable % Notes Due December 30, 2024 | |||||||||||||||||||||||||||||||||||
Production Financing Facilities(1) | |||||||||||||||||||||||||||||||||||
Total long-term debt | $ | $ | $ | ||||||||||||||||||||||||||||||||
Less: Deferred debt expenses | — | — | — | ||||||||||||||||||||||||||||||||
Less: Current portion | — | — | — | ||||||||||||||||||||||||||||||||
Long-term debt | $ | $ | $ |
October 1, 2023 | September 25, 2022 | December 25, 2022 | |||||||||||||||
Production financing facilities included in the consolidated balance sheet as: | |||||||||||||||||
Current liabilities (1) | $ | $ | $ |
Production Financing | |||||
December 25, 2022 | $ | ||||
Drawdowns | |||||
Repayments | ( | ||||
Reclass to Liabilities held for sale (2) | ( | ||||
Foreign exchange differences | ( | ||||
Balance at October 1, 2023 | $ |
October 1, 2023 (1) | September 25, 2022 | December 25, 2022 | ||||||||||||||||||
Investment in Films and Television Programs: | ||||||||||||||||||||
Individual Monetization | ||||||||||||||||||||
Released, net of amortization (2) | $ | $ | $ | |||||||||||||||||
Completed and not released | ||||||||||||||||||||
In production | ||||||||||||||||||||
Pre-production | ||||||||||||||||||||
Film/TV Group Monetization | ||||||||||||||||||||
Released, net of amortization | ||||||||||||||||||||
In production | ||||||||||||||||||||
Investment in Other Programming | ||||||||||||||||||||
Released, net of amortization | ||||||||||||||||||||
Completed and not released | ||||||||||||||||||||
In production | ||||||||||||||||||||
Pre-production | ||||||||||||||||||||
Total Program Investments | $ | $ | $ |
Investment in Production | Investment in Content | Total | ||||||||||||||||||
Program cost amortization | $ | $ | $ |
Fair Value Measurements Using: | |||||||||||||||||||||||
Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||||||||||
October 1, 2023 | |||||||||||||||||||||||
Assets: | |||||||||||||||||||||||
Available-for-sale securities (1) | $ | ||||||||||||||||||||||
Total assets | $ | ||||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||
Derivatives (2) | $ | ||||||||||||||||||||||
Option agreement | |||||||||||||||||||||||
Total liabilities | $ | ||||||||||||||||||||||
September 25, 2022 | |||||||||||||||||||||||
Assets: | |||||||||||||||||||||||
Available-for-sale securities | $ | ||||||||||||||||||||||
Total assets | $ | ||||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||
Derivatives | $ | ||||||||||||||||||||||
Option agreement | |||||||||||||||||||||||
Total liabilities | $ | ||||||||||||||||||||||
December 25, 2022 | |||||||||||||||||||||||
Assets: | |||||||||||||||||||||||
Available-for-sale securities | $ | ||||||||||||||||||||||
Total assets | $ | ||||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||
Derivatives | $ | ||||||||||||||||||||||
Option agreement | |||||||||||||||||||||||
Total Liabilities | $ |
2023 | 2022 | ||||||||||
Balance at beginning of year | $ | ( | $ | ( | |||||||
Balance at end of third quarter | $ | ( | $ | ( |
October 1, 2023 (1) | September 25, 2022 | December 25, 2022 | |||||||||||||||||||||||||||||||||
Hedged transaction | Notional Amount | Fair Value | Notional Amount | Fair Value | Notional Amount | Fair Value | |||||||||||||||||||||||||||||
Inventory purchases | $ | $ | $ | ( | |||||||||||||||||||||||||||||||
Sales | |||||||||||||||||||||||||||||||||||
Production financing and other | ( | ||||||||||||||||||||||||||||||||||
Total | $ | $ | $ |
October 1, 2023 (1) | September 25, 2022 | December 25, 2022 | |||||||||||||||
Unrealized gains | $ | $ | $ | ||||||||||||||
Unrealized losses | ( | ( | ( | ||||||||||||||
Net unrealized gains | $ | $ | $ | ||||||||||||||
Other assets | |||||||||||||||||
Unrealized gains | $ | $ | $ | ||||||||||||||
Unrealized losses | ( | ( | |||||||||||||||
Net unrealized gains | $ | $ | $ | ||||||||||||||
Accrued liabilities | |||||||||||||||||
Unrealized gains | $ | $ | $ | ||||||||||||||
Unrealized losses | ( | ( | ( | ||||||||||||||
Net unrealized losses | $ | ( | $ | ( | $ | ( | |||||||||||
Quarter Ended | Nine Months Ended | ||||||||||||||||||||||
October 1, 2023 | September 25, 2022 | October 1, 2023 | September 25, 2022 | ||||||||||||||||||||
Statements of Operations Classification | |||||||||||||||||||||||
Cost of sales | $ | ( | $ | $ | ( | ||||||||||||||||||
Net revenues | |||||||||||||||||||||||
Other | ( | ( | ( | ( | |||||||||||||||||||
Net realized (losses) gains | $ | ( | $ | $ | ( |
October 1, 2023 | September 25, 2022 | December 25, 2022 | |||||||||||||||
Prepaid expenses and other current assets | |||||||||||||||||
Unrealized gains | $ | $ | $ | ||||||||||||||
Unrealized losses | ( | ( | ( | ||||||||||||||
Net unrealized gains | $ | $ | $ | ||||||||||||||
Accrued liabilities | |||||||||||||||||
Unrealized losses | ( | ( | |||||||||||||||
Net unrealized losses | $ | ( | $ | ( | $ | ||||||||||||
Total unrealized gains, net | $ | $ | $ |
Quarter Ended | Nine Months Ended | ||||||||||||||||||||||
October 1, 2023 (1) | September 25, 2022 | October 1, 2023 (1) | September 25, 2022 | ||||||||||||||||||||
Cash paid for amounts included in the measurement of lease liabilities: | |||||||||||||||||||||||
Operating cash flows from operating leases | $ | $ | $ | ||||||||||||||||||||
Right-of-use assets obtained in exchange for lease obligations: | |||||||||||||||||||||||
Operating leases net of lease modifications | $ | $ | $ | ||||||||||||||||||||
Weighted Average Remaining Lease Term | |||||||||||||||||||||||
Operating leases | |||||||||||||||||||||||
Weighted Average Discount Rate | |||||||||||||||||||||||
Operating leases | % | % | % | % |
October 1, 2023 (1) | |||||
2023 (excluding the nine months ended October 1, 2023) | $ | ||||
2024 | |||||
2025 | |||||
2026 | |||||
2027 | |||||
2028 and thereafter | |||||
Total future lease payments | |||||
Less imputed interest | |||||
Present value of future operating lease payments | |||||
$ |
Quarter Ended | |||||||||||||||||||||||
October 1, 2023 | September 25, 2022 | ||||||||||||||||||||||
Net revenues | External | Affiliate (b) | External | Affiliate (b) | |||||||||||||||||||
Consumer Products | $ | $ | $ | $ | |||||||||||||||||||
Wizards of the Coast and Digital Gaming | |||||||||||||||||||||||
Entertainment | |||||||||||||||||||||||
Corporate and Other | ( | ( | |||||||||||||||||||||
$ | $ | $ | $ |
Nine Months Ended | |||||||||||||||||||||||
October 1, 2023 | September 25, 2022 | ||||||||||||||||||||||
Net revenues | External | Affiliate (b) | External | Affiliate (b) | |||||||||||||||||||
Consumer Products | $ | $ | $ | $ | |||||||||||||||||||
Wizards of the Coast and Digital Gaming | |||||||||||||||||||||||
Entertainment | |||||||||||||||||||||||
Corporate and Other | ( | ( | |||||||||||||||||||||
$ | $ | $ | $ |
Quarter Ended | Nine Months Ended | ||||||||||||||||||||||
Operating profit (loss) | October 1, 2023 | September 25, 2022 | October 1, 2023 | September 25, 2022 | |||||||||||||||||||
Consumer Products | $ | $ | $ | $ | |||||||||||||||||||
Wizards of the Coast and Digital Gaming | |||||||||||||||||||||||
Entertainment (a) | ( | ( | ( | ( | |||||||||||||||||||
Corporate and Other (a)(c) | ( | ( | ( | ( | |||||||||||||||||||
Operating profit (loss) | ( | ( | |||||||||||||||||||||
Interest expense | |||||||||||||||||||||||
Interest income | ( | ( | ( | ( | |||||||||||||||||||
Other non-operating expense (income) | ( | ( | ( | ||||||||||||||||||||
Earnings (loss) before income taxes | $ | ( | $ | $ | ( | $ |
Total assets | October 1, 2023 | September 25, 2022 | December 25, 2022 | ||||||||||||||
Consumer Products | $ | $ | $ | ||||||||||||||
Wizards of the Coast and Digital Gaming | |||||||||||||||||
Entertainment (a) | |||||||||||||||||
Corporate and Other (a) | ( | ( | ( | ||||||||||||||
$ | $ | $ |
Quarter Ended | Nine Months Ended | ||||||||||||||||||||||
October 1, 2023 | September 25, 2022 | October 1, 2023 | September 25, 2022 | ||||||||||||||||||||
North America | $ | $ | $ | $ | |||||||||||||||||||
Europe | |||||||||||||||||||||||
Asia Pacific | |||||||||||||||||||||||
Latin America | |||||||||||||||||||||||
Net revenues | $ | $ | $ | $ |
Quarter Ended | Nine Months Ended | ||||||||||||||||||||||
October 1, 2023 | September 25, 2022 | October 1, 2023 | September 25, 2022 | ||||||||||||||||||||
Tabletop Gaming | $ | $ | $ | $ | |||||||||||||||||||
Digital and Licensed Gaming | |||||||||||||||||||||||
Net revenues | $ | $ | $ | $ |
Quarter Ended | Nine Months Ended | ||||||||||||||||||||||
October 1, 2023 | September 25, 2022 | October 1, 2023 | September 25, 2022 | ||||||||||||||||||||
Film and TV | $ | $ | $ | $ | |||||||||||||||||||
Family Brands | |||||||||||||||||||||||
Music and Other | |||||||||||||||||||||||
Net revenues | $ | $ | $ | $ |
Quarter Ended | Nine Months Ended | ||||||||||||||||||||||
Net revenues | October 1, 2023 | September 25, 2022 | October 1, 2023 | September 25, 2022 | |||||||||||||||||||
Franchise Brands | $ | $ | $ | $ | |||||||||||||||||||
Partner Brands | |||||||||||||||||||||||
Portfolio Brands | |||||||||||||||||||||||
Non-Hasbro Branded Film & TV | |||||||||||||||||||||||
Total | $ | $ | $ | $ |
Operational Excellence | Severance | Total | |||||||||
Balance at December 25, 2022 | $ | $ | |||||||||
2023 charges | |||||||||||
2023 payments | ( | ( | |||||||||
Balance at October 1, 2023 | $ | $ |
Operational Excellence | Severance | Total | |||||||||
Charges incurred to date | $ | $ | |||||||||
Estimated charges to be incurred on approved initiatives | |||||||||||
Total expected charges on approved initiatives | $ | $ |
October 1, 2023 | |||||
Assets: | |||||
Cash and cash equivalents including restricted cash of $ | $ | ||||
Accounts receivable, less allowance for doubtful accounts of $ | |||||
Inventories | |||||
Prepaid expenses and other current assets | |||||
Property, plant and equipment, less accumulated depreciation of $ | |||||
Other assets | |||||
Write-down loss allowance (2) | ( | ||||
Total assets held for sale | $ | ||||
Liabilities: | |||||
Short-term borrowings | $ | ||||
Current portion of long-term debt | |||||
Accounts payable and accrued liabilities | |||||
Long-term debt | |||||
Other liabilities | |||||
Total liabilities held for sale | $ |
Quarter Ended | Nine Months Ended | ||||||||||||||||||||||
October 1, 2023 | September 25, 2022 | October 1, 2023 | September 25, 2022 | ||||||||||||||||||||
Net revenues | $ | 1,503.4 | $ | 1,675.9 | $ | 3,714.4 | $ | 4,178.2 | |||||||||||||||
Operating (loss) profit | (169.5) | 194.3 | (340.2) | 533.4 | |||||||||||||||||||
(Loss) earnings before income taxes | (215.0) | 165.6 | (463.9) | 425.7 | |||||||||||||||||||
Net (loss) earnings | (170.4) | 128.2 | (427.0) | 331.6 | |||||||||||||||||||
Net earnings (loss) attributable to noncontrolling interests | 0.7 | (1.0) | 1.2 | (0.8) | |||||||||||||||||||
Net (loss) earnings attributable to Hasbro, Inc. | (171.1) | 129.2 | (428.2) | 332.4 | |||||||||||||||||||
Diluted (loss) earnings per share | (1.23) | 0.93 | (3.09) | 2.39 |
Quarter Ended | |||||||||||||||||
October 1, 2023 | September 25, 2022 | % Change | |||||||||||||||
Franchise Brands | $ | 1,011.0 | $ | 939.8 | 8 | % | |||||||||||
Partner Brands | 228.2 | 349.9 | -35 | % | |||||||||||||
Portfolio Brands | 170.3 | 209.0 | -19 | % | |||||||||||||
Non-Hasbro Branded Film & TV | 93.9 | 177.2 | -47 | % | |||||||||||||
Total | $ | 1,503.4 | $ | 1,675.9 | -10 | % |
Nine Months Ended | |||||||||||||||||
October 1, 2023 | September 25, 2022 | % Change | |||||||||||||||
Franchise Brands | $ | 2,412.8 | 2,416.2 | — | % | ||||||||||||
Partner Brands | 533.8 | 775.8 | -31 | % | |||||||||||||
Portfolio Brands | 369.4 | 457.4 | -19 | % | |||||||||||||
Non-Hasbro Branded Film & TV | 398.4 | 528.8 | -25 | % | |||||||||||||
Total | $ | 3,714.4 | 4,178.2 | -11 | % |
Quarter Ended | |||||||||||||||||
October 1, 2023 | September 25, 2022 | % Change | |||||||||||||||
Net revenues | |||||||||||||||||
Consumer Products | $ | 956.9 | $ | 1,160.8 | -18 | % | |||||||||||
Wizards of the Coast and Digital Gaming | 423.6 | 303.5 | 40 | % | |||||||||||||
Entertainment | 122.9 | 211.6 | -42 | % | |||||||||||||
Operating Profit (Loss) | |||||||||||||||||
Consumer Products | $ | 96.1 | $ | 136.8 | -30 | % | |||||||||||
Wizards of the Coast and Digital Gaming | 203.4 | 102.2 | 99 | % | |||||||||||||
Entertainment | (468.5) | (28.9) | >-100% | ||||||||||||||
Corporate and Other | (0.5) | (15.8) | 97 | % |
Quarter Ended | |||||||||||
October 1, 2023 | September 25, 2022 | ||||||||||
North America | $ | 573.6 | $ | 693.3 | |||||||
Europe | 208.7 | 271.6 | |||||||||
Asia Pacific | 61.8 | 82.8 | |||||||||
Latin America | 112.8 | 113.1 | |||||||||
Net revenues | $ | 956.9 | $ | 1,160.8 |
Quarter Ended | |||||||||||
October 1, 2023 | September 25, 2022 | ||||||||||
Tabletop Gaming | $ | 290.5 | $ | 246.3 | |||||||
Digital and Licensed Gaming | 133.1 | 57.2 | |||||||||
Net revenues | $ | 423.6 | $ | 303.5 |
Quarter Ended | |||||||||||
October 1, 2023 | September 25, 2022 | ||||||||||
Film and TV | $ | 102.1 | $ | 188.6 | |||||||
Family Brands | 20.8 | 13.6 | |||||||||
Music and Other | — | 9.4 | |||||||||
Net revenues | $ | 122.9 | $ | 211.6 |
Nine Months Ended | |||||||||||||||||
October 1, 2023 | September 25, 2022 | % Change | |||||||||||||||
Net revenues | |||||||||||||||||
Consumer Products | $ | 2,132.5 | $ | 2,567.8 | -17 | % | |||||||||||
Wizards of the Coast and Digital Gaming | 1,094.4 | 986.1 | 11 | % | |||||||||||||
Entertainment | 487.5 | 624.3 | -22 | % | |||||||||||||
Operating Profit (Loss) | |||||||||||||||||
Consumer Products | $ | 61.5 | $ | 138.9 | -56 | % | |||||||||||
Wizards of the Coast and Digital Gaming | 422.5 | 434.2 | -3 | % | |||||||||||||
Entertainment | (801.4) | (2.4) | >-100% | ||||||||||||||
Corporate and Other | (22.8) | (37.3) | 39 | % |
Nine Months Ended | |||||||||||
October 1, 2023 | September 25, 2022 | ||||||||||
North America | $ | 1,234.7 | $ | 1,531.8 | |||||||
Europe | 472.2 | 610.4 | |||||||||
Asia Pacific | 191.5 | 201.6 | |||||||||
Latin America | 234.1 | 224.0 | |||||||||
Net Revenues | $ | 2,132.5 | $ | 2,567.8 |
Nine Months Ended | |||||||||||
October 1, 2023 | September 25, 2022 | ||||||||||
Tabletop Gaming | $ | 806.9 | $ | 800.3 | |||||||
Digital and Licensed Gaming | 287.5 | 185.8 | |||||||||
Net revenues | $ | 1,094.4 | $ | 986.1 |
Nine Months Ended | |||||||||||
October 1, 2023 | September 25, 2022 | ||||||||||
Film and TV | $ | 423.8 | $ | 527.0 | |||||||
Family Brands | 63.7 | 59.6 | |||||||||
Music and Other | — | 37.7 | |||||||||
Net revenues | $ | 487.5 | $ | 624.3 |
Quarter Ended | |||||||||||
October 1, 2023 | September 25, 2022 | ||||||||||
Cost of sales | 32.9 | % | 35.0 | % | |||||||
Program cost amortization | 4.5 | % | 8.7 | % | |||||||
Royalties | 7.1 | % | 8.1 | % | |||||||
Product development | 5.1 | % | 4.9 | % | |||||||
Advertising | 5.4 | % | 6.9 | % | |||||||
Amortization of intangible assets | 1.3 | % | 1.6 | % | |||||||
Loss on assets held for sale | 31.5 | % | 1.4 | % | |||||||
Selling, distribution and administration | 23.4 | % | 21.8 | % | |||||||
Nine Months Ended | |||||||||||
October 1, 2023 | September 25, 2022 | ||||||||||
Cost of sales | 30.5 | % | 31.9 | % | |||||||
Program cost amortization | 8.8 | % | 8.8 | % | |||||||
Royalties | 8.0 | % | 8.0 | % | |||||||
Product development | 6.3 | % | 5.5 | % | |||||||
Advertising | 6.7 | % | 6.6 | % | |||||||
Amortization of intangible assets | 1.8 | % | 1.9 | % | |||||||
Impairment of goodwill | 6.2 | % | — | % | |||||||
Loss on assets held for sale | 12.7 | % | 0.6 | % | |||||||
Selling, distribution and administration | 28.3 | % | 23.9 | % | |||||||
October 1, 2023 * | September 25, 2022 | % Change | |||||||||||||||
Cash and cash equivalents (including restricted cash of $1.1 and $6.1) | $ | 185.5 | $ | 551.6 | -66 | % | |||||||||||
Accounts receivable, net | 1,102.0 | 1,188.8 | -7 | % | |||||||||||||
Inventories | 617.7 | 844.5 | -27 | % | |||||||||||||
Prepaid expenses and other current assets | 286.2 | 658.8 | -57 | % | |||||||||||||
Other assets | 731.6 | 1,404.3 | -48 | % | |||||||||||||
Accounts payable and accrued liabilities | 1,356.8 | 2,097.0 | -35 | % | |||||||||||||
Other liabilities | 438.2 | 545.1 | -20 | % |
October 1, 2023 | September 25, 2022 | ||||||||||
Net cash provided by (utilized for): | |||||||||||
Operating activities | $ | 334.9 | $ | 262.2 | |||||||
Investing activities | (162.6) | (265.8) | |||||||||
Financing activities | (418.0) | (443.0) |
10.3 | |||||
31.1* | |||||
31.2* | |||||
32.1* | |||||
32.2* | |||||
101.INS | XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL Document. | ||||
101.SCH | XBRL Taxonomy Extension Schema Document | ||||
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document | ||||
101.LAB | XBRL Taxonomy Extension Labels Linkbase Document | ||||
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document | ||||
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document |
HASBRO, INC. | |||||
(Registrant) | |||||
Date: November 1, 2023 | By: /s/ Gina Goetter | ||||
Gina Goetter | |||||
Executive Vice President and Chief Financial Officer (Duly Authorized Officer and Principal Financial Officer) |
/s/ Christian P. Cocks | |||||
Christian P. Cocks Chief Executive Officer |
/s/ Gina Goetter | |||||
Gina Goetter Executive Vice President and Chief Financial Officer |
/s/ Christian P. Cocks Christian P. Cocks Chief Executive Officer of Hasbro, Inc. |
/s/ Gina Goetter Gina Goetter Executive Vice President and Chief Financial Officer of Hasbro, Inc. |
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions |
Oct. 01, 2023 |
Dec. 25, 2022 |
Sep. 25, 2022 |
---|---|---|---|
Statement of Financial Position [Abstract] | |||
Restricted cash | $ 1.1 | $ 14.5 | $ 6.1 |
Accounts receivable, allowance for doubtful accounts | 20.8 | 20.0 | 21.8 |
Property, plant and equipment, accumulated depreciation | 603.3 | 654.5 | 640.3 |
Other intangibles, accumulated amortization | $ 1,229.3 | $ 1,137.2 | $ 1,094.6 |
Preference stock, par value (in dollars per share) | $ 2.50 | $ 2.50 | $ 2.50 |
Preference stock, authorized (in shares) | 5,000,000 | 5,000,000 | 5,000,000 |
Preference stock, issued (in shares) | 0 | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.50 | $ 0.50 | $ 0.50 |
Common stock, authorized (in shares) | 600,000,000 | 600,000,000 | 600,000,000 |
Common stock, issued (in shares) | 220,286,736 | 220,286,736 | 220,286,736 |
Treasury stock (in shares) | 81,541,637 | 82,106,383 | 82,178,615 |
Consolidated Statements of Operations - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Oct. 01, 2023 |
Sep. 25, 2022 |
Oct. 01, 2023 |
Sep. 25, 2022 |
|
Income Statement [Abstract] | ||||
Net revenues | $ 1,503.4 | $ 1,675.9 | $ 3,714.4 | $ 4,178.2 |
Costs and expenses: | ||||
Cost of sales | 494.5 | 586.6 | 1,132.0 | 1,331.2 |
Program cost amortization | 68.4 | 146.5 | 325.3 | 365.7 |
Royalties | 106.9 | 135.1 | 295.8 | 335.3 |
Product development | 76.7 | 82.4 | 232.4 | 231.2 |
Advertising | 81.9 | 115.2 | 249.8 | 277.0 |
Amortization of intangibles | 19.2 | 26.9 | 65.1 | 81.2 |
Selling, distribution and administration | 352.3 | 365.8 | 1,050.0 | 1,000.1 |
Loss on assets held for sale | 473.0 | 23.1 | 473.0 | 23.1 |
Impairment of goodwill | 0.0 | 0.0 | 231.2 | 0.0 |
Total costs and expenses | 1,672.9 | 1,481.6 | 4,054.6 | 3,644.8 |
Operating profit (loss) | (169.5) | 194.3 | (340.2) | 533.4 |
Non-operating expense (income): | ||||
Interest expense | 47.1 | 41.9 | 140.0 | 125.2 |
Interest income | (3.8) | (3.2) | (15.6) | (8.0) |
Other non-operating expense (income) | 2.2 | (10.0) | (0.7) | (9.5) |
Total non-operating expense, net | 45.5 | 28.7 | 123.7 | 107.7 |
Earnings (loss) before income taxes | (215.0) | 165.6 | (463.9) | 425.7 |
Income tax expense (benefit) | (44.6) | 37.4 | (36.9) | 94.1 |
Net earnings (loss) | (170.4) | 128.2 | (427.0) | 331.6 |
Net earnings (loss) attributable to noncontrolling interests | 0.7 | (1.0) | 1.2 | (0.8) |
Net earnings (loss) attributable to Hasbro, Inc. | $ (171.1) | $ 129.2 | $ (428.2) | $ 332.4 |
Net earnings (loss) per common share: | ||||
Basic (in dollars per share) | $ (1.23) | $ 0.93 | $ (3.09) | $ 2.39 |
Diluted (in dollars per share) | (1.23) | 0.93 | (3.09) | 2.39 |
Cash dividends declared per common share (in dollars per share) | $ 0.70 | $ 0.70 | $ 2.10 | $ 2.10 |
Basis of Presentation |
9 Months Ended |
---|---|
Oct. 01, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation In the opinion of management, the accompanying unaudited interim consolidated financial statements contain all normal and recurring adjustments necessary to present fairly the consolidated financial position of Hasbro, Inc. and all majority-owned subsidiaries ("Hasbro" or the "Company") as of October 1, 2023 and September 25, 2022, and the results of its operations and cash flows and shareholders' equity for the periods then ended in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP"). The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and notes thereto. Actual results could differ from those estimates. The quarters ended October 1, 2023 and September 25, 2022 were each 13-week periods. The nine-month periods ended October 1, 2023 and September 25, 2022 were 40-week and 39-week periods, respectively. The results of operations for the quarter ended October 1, 2023 are not necessarily indicative of results to be expected for the full year 2023, nor were those of the comparable 2022 period representative of those actually experienced for the full year 2022. Significant Accounting Policies The Company's significant accounting policies are summarized in note 1 to the consolidated financial statements included in the Company's Annual Report on Form 10-K for the year ended December 25, 2022 ("2022 Form 10-K"). An update and supplement to these accounting policies for the treatment of assets and liabilities held for sale associated with our planned sale of the non-core eOne Film and TV business is below. Assets and Liabilities Held for Sale We classify assets and related liabilities as held for sale when: (i) management has committed to a plan to sell the assets, (ii) the net assets are available for immediate sale, (iii) there is an active program to locate a buyer, (iv) the sale and transfer of the net assets is probable within one year, (v) the sale price of the net assets is comparable to current fair value and (vi) actions required to complete the plan indicate it is unlikely that significant changes will be made or that management will withdraw from the sale. Assets and liabilities held for sale are presented separately on our consolidated balance sheets at the lower of cost or fair value, less costs to sell. Depreciation of property, plant and equipment and amortization of finite-lived intangible assets and right-of-use assets are not recorded while these assets are classified as held for sale. For each period that assets are classified as being held for sale, they are tested for recoverability. Unless otherwise specified, the amounts and information in the notes presented do not include assets and liabilities that have been reclassified as held for sale as of October 1, 2023. See note 15 — Assets held for sale, for additional information. Impairment of Film and TV Reporting Unit During the second quarter of 2023, the Company determined that a triggering event occurred following a downward revision of the Company's financial forecast for its Film and TV business, driven by challenging industry conditions that included the strike by the Writers Guild of America. As a result, the Company performed a quantitative impairment test and determined that the Film and TV reporting unit within the Company's Entertainment segment, was impaired. During the second quarter of 2023, the Company recorded pre-tax non-cash impairment charges of $296.2 million as the carrying value of the Film and TV reporting unit exceeded its expected fair value, as determined using a discounted cash flow model which is primarily based on management’s future revenue and cost estimates. These impairment charges consisted of a $231.2 million goodwill impairment charge associated with goodwill assigned to the Company's Film and TV reporting unit, recorded within Impairment of Goodwill and a $65.0 million intangible asset impairment charge related to the Company's definite-lived intangible eOne Trademark, recorded in Selling, Distribution and Administration costs, within the Consolidated Statements of Operations for the nine months ended October 1, 2023. Blueprint 2.0 and Operational Excellence In October 2022, following a several months long strategic review of our business led by our CEO, the Company announced a new strategic plan guided by our new Blueprint 2.0, a consumer-centric framework for bringing compelling and expansive brand experiences to audiences around the world. During the review, with the assistance of a third party consultant, the Company identified opportunities to focus and scale its business, enhance operational excellence, including through specialized organizational programs and supply chain transformation, to drive growth and profit and enhance shareholder value. The Company is increasing strategic investment in its most valuable and profitable franchises across toys, games, entertainment and licensing, and exiting certain non-core aspects of the business. Brand Portfolio Realignment Effective for the first quarter 2023, we realigned our brand portfolios to correspond with the evolution of our Blueprint 2.0 strategy. We are focusing on fewer, bigger, more profitable brands that showcase our leadership in preschool toys, action figures and accessories, games, arts & crafts, and outdoor action brands. Our new product categories beginning in the first quarter of 2023 are as follows: Franchise Brands - A refreshed group of our most financially significant brands which we consider to have the greatest long-term potential including DUNGEONS & DRAGONS, Hasbro Gaming, MAGIC: THE GATHERING, NERF, PEPPA PIG, PLAY-DOH, and TRANSFORMERS. Partner Brands - The Partner Brands category includes those brands we license from other parties such as Disney's STAR WARS and MARVEL brands as well as other partners, for which we develop toy and game products, with a focus on those key Partner Brands that give us the largest growth potential and where we can lead and innovate in the category. Portfolio Brands - Our Portfolio Brands category includes those brands we own or control which we feel have upside in revenue and profitability that have not yet grown to the significance of a franchise brand. Non-Hasbro Branded Film & TV - The Non-Hasbro Branded Film & TV category includes non-Hasbro-branded film, TV and other entertainment related revenues. All Hasbro-branded content is included in the portfolios noted above. These consolidated financial statements have been prepared without audit, pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC"). Certain information and disclosures normally included in the consolidated financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations. The Company filed with the SEC audited consolidated financial statements for the fiscal year ended December 25, 2022 in its 2022 Form 10-K, which includes all such information and disclosures and, accordingly, should be read in conjunction with the financial information included herein. Recently Adopted Accounting Standards As of October 1, 2023, there were no recently adopted accounting standards that had a material effect on the Company’s financial statements. Issued Accounting Pronouncements As of October 1, 2023, there were no recently issued accounting pronouncements that are expected to have a material effect on the Company’s financial statements.
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Revenue Recognition |
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Revenue Recognition | Revenue Recognition Contract Assets and Liabilities In the ordinary course of business, the Company’s Consumer Products, Wizards of the Coast and Digital Gaming and Entertainment segments enter into contracts to license certain of the Company’s intellectual property, providing licensees right-to-use or access to such intellectual property for use in the production and sale of consumer products and digital game development, and for use within content for distribution over streaming platforms and for television and film. The Company also licenses owned television and film content for distribution to third parties in formats that include broadcast, digital streaming and theatrical. Through these arrangements, the Company may receive advanced royalty payments from licensees, either in advance of a licensees’ subsequent sales to customers or, prior to the completion of the Company’s performance obligation. In addition, the Company’s Wizards of the Coast and Digital Gaming segment may receive advanced payments from end users of its digital games at the time of the initial purchase or through in-application purchases. These digital gaming revenues are recognized over a period of time, determined based on player usage patterns or the estimated playing life of the user or when additional downloadable content is made available. The Company defers revenues on all licensee and digital gaming advanced payments until the respective performance obligations are satisfied. The Company records the aggregate deferred revenues as contract liabilities, with the current portion recorded within Accrued Liabilities and the long-term portion recorded as Other Non-current Liabilities in the Company’s consolidated balance sheets. The Company records contract assets, primarily related to (1) minimum guarantees being recognized in advance of contractual invoicing, which are recognized ratably over the terms of the respective license periods, and (2) film and television distribution revenues recorded for content delivered, where payment will occur over the license term. The current portion of contract assets is recorded in Prepaid Expenses and Other Current Assets, respectively, and the long-term portion is recorded within Other Long-Term Assets. The changes in carrying amounts of contract assets and liabilities for the nine months ended October 1, 2023 are as follows:
(1) See note 15 for additional information on assets and liabilities held for sale. Unsatisfied performance obligations Unsatisfied performance obligations relate primarily to in-production television content to be delivered in the future under existing agreements with partnering content providers such as broadcasters, distributors, television networks and subscription video on demand services. As of October 1, 2023, unrecognized revenue attributable to unsatisfied performance obligations expected to be recognized in the future was $137.3 million of which $120.5 million is attributable to the Company's non-core entertainment business, expected to be sold to Lionsgate. Of the performance obligations expected to be retained following the pending sale, we expect to recognize $6.4 million in the remainder of 2023, $5.5 million in 2024 and $5.0 million in 2025. These amounts include only fixed consideration. Accounts Receivable and Allowance for Credit Losses The Company’s balance for accounts receivable on the consolidated balance sheets as of October 1, 2023 and September 25, 2022 are primarily from contracts with customers. The Company had no material expense for credit losses for the quarters ended October 1, 2023 and September 25, 2022. Disaggregation of revenues The Company disaggregates its revenues from contracts with customers by reportable segment: Consumer Products, Wizards of the Coast and Digital Gaming, and Entertainment. The Company further disaggregates revenues within its Consumer Products segment by major geographic region: North America, Europe, Latin America, and Asia Pacific; within its Wizards of the Coast and Digital Gaming segment by category: Tabletop Gaming and Digital and Licensed Gaming; and within its Entertainment segment by category: Film & TV, Family Brands, and Other. Finally, the Company disaggregates its revenues by brand portfolio into four brand categories: Franchise Brands, Partner Brands, Portfolio Brands, and Non-Hasbro Branded Film & TV. We believe these collectively depict how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors. See note 13 for further information.
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Earnings (Loss) Per Share |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings (Loss) Per Share | Earnings (Loss) Per Share Net earnings (loss) per share data for the quarters and nine months ended October 1, 2023 and September 25, 2022 were computed as follows:
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Goodwill |
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Goodwill | Goodwill Changes in the carrying amount of goodwill, by operating segment, for the nine months ended October 1, 2023 and September 25, 2022 are as follows:
(1) See note 1 for discussion of goodwill impairment recorded during the second quarter of 2023.
During the third quarter of 2022, the Company determined to exit certain non-core businesses within the Entertainment segment resulting in the classification of certain assets as Assets held for sale. A revaluation of the effected businesses resulted in a pre-tax non-cash goodwill impairment charge of $11.8 million, recorded within Loss on assets held for sale in the Consolidated Statement of Operations, and within the Entertainment segment for the quarter ended September 25, 2022. On May 19, 2022, the Company completed its acquisition of D&D Beyond for $146.3 million, which was funded with cash on hand. Based on the valuation of these assets, $64.7 million was allocated to goodwill within the Wizards of the Coast and Digital Gaming segment during the second quarter of 2022.
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Other Comprehensive Earnings (Loss) |
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Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Comprehensive Earnings (Loss) | Other Comprehensive Earnings (Loss) Components of other comprehensive earnings (loss) are presented within the consolidated statements of comprehensive earnings (loss). The following table presents the related tax effects on changes in other comprehensive earnings (loss) for the quarters and nine months ended October 1, 2023 and September 25, 2022.
Changes in the components of accumulated other comprehensive earnings (loss), net of tax for the nine months ended October 1, 2023 and September 25, 2022 are as follows:
Gains (Losses) on Derivative Instruments At October 1, 2023, the Company had remaining net deferred gains on foreign currency forward contracts, net of tax, of $2.7 million in accumulated other comprehensive earnings (loss) ("AOCE"). These instruments hedge payments related to inventory purchased in the third quarter of 2023 or forecasted to be purchased during the remainder of 2023 and throughout 2024, intercompany expenses expected to be paid or received during 2023, television and movie production costs paid in 2023 or expected to be paid in 2024, and cash receipts for sales made at the end of the third quarter of 2023 or forecasted to be made in the remainder of 2023 and throughout 2024. These amounts will be reclassified into the consolidated statements of operations upon the sale of the related inventory, the recognition of the related production costs or the recognition of the related sales or intercompany expenses to be paid or received. In addition to foreign currency forward contracts, the Company entered into hedging contracts on future interest payments related to the 3.15% Notes that were repaid in full in the aggregate principal amount of $300.0 million in 2021 (See note 7), and the 5.10% Notes due 2044. At the date of debt issuance, these contracts were terminated and the fair value on the date of settlement was deferred in AOCE and is being amortized to interest expense over the life of the related notes using the effective interest rate method. At October 1, 2023, deferred losses, net of tax of $14.4 million related to these instruments remained in AOCE. For the quarters ended October 1, 2023 and September 25, 2022, previously deferred losses of $0.2 million related to these instruments were reclassified from AOCE to net earnings. For the nine months ended October 1, 2023 and September 25, 2022, previously deferred losses of $0.5 million were reclassified from AOCE to net earnings, respectively. Of the net deferred losses included in AOCE at October 1, 2023, the Company expects net losses of approximately $0.4 million to be reclassified to the consolidated statements of operations within the next 12 months. However, the amount ultimately realized in earnings is dependent on the fair value of the hedging instruments on the settlement dates. See note 11 for additional discussion on reclassifications from AOCE to earnings.
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Accrued Liabilities |
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Accrued Liabilities | Accrued Liabilities Components of accrued liabilities for the periods ended October 1, 2023, September 25, 2022 and December 25, 2022 were as follows:
(1) For the nine-month period ended October 1, 2023, liabilities of $607.4 million attributable to the Film & TV business, which were previously classified within Accrued liabilities, have been transferred to Liabilities held for sale. For the nine-month period ended September 25, 2022, liabilities of $15.0 million attributable to non-core entertainment businesses, which were previously classified within Accrued liabilities, were transferred to Liabilities held for sale.
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Financial Instruments |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Instruments | Financial Instruments The Company's financial instruments include cash and cash equivalents, accounts receivable, short-term borrowings, accounts payable and certain accrued liabilities. At October 1, 2023, September 25, 2022 and December 25, 2022, the carrying cost of these instruments approximated their fair value. The Company's financial instruments at October 1, 2023, September 25, 2022 and December 25, 2022 also include certain assets and liabilities measured at fair value (see notes 10 and 11) as well as long-term borrowings. The carrying costs, which are equal to the outstanding principal amounts, and fair values of the Company's long-term borrowings as of October 1, 2023, September 25, 2022 and December 25, 2022 are as follows:
(1) During the third quarter of 2023, all production financing facilities attributable to the non-core eOne Film and TV business, which were previously classified within Current portion of long-term debt, have been transferred to Liabilities held for sale. In November 2019, in conjunction with the Company's acquisition of eOne, the Company issued an aggregate of $2.4 billion of senior unsecured debt securities (the "Notes") consisting of the following tranches: $300.0 million of notes due 2022 (the "2022 Notes") that bear interest at a fixed rate of 2.60%, $500.0 million of notes due 2024 (the "2024 Notes") that bear interest at a fixed rate of 3.00%, $675.0 million of notes due 2026 (the "2026 Notes") that bear interest at a fixed rate of 3.55% and $900.0 million of notes due 2029 (the "2029 Notes") that bear interest at a fixed rate of 3.90%. Net proceeds from the issuance of the Notes, after deduction of $20.0 million of underwriting discount and fees, totaled $2.4 billion. These costs are being amortized over the life of the Notes outstanding, which range from five years to ten years from the date of issuance. The Notes bear interest at the stated rates but may be subject to upward adjustment if the credit rating of the Company is reduced by Moody's or Standard & Poors. The adjustment can be from 0.25% to 2.00% based on the extent of the ratings decrease. The Company may redeem the Notes at its option at the greater of the principal amount of the Notes or the present value of the remaining scheduled payments discounted using the effective interest rate on applicable U.S. Treasury bills at the time of repurchase, plus (1) 25 basis points (in the case of the 2024 Notes); (2) 30 basis points (in the case of the 2026 Notes); and (3) 35 basis points (in the case of the 2029 Notes). In addition, on and after October 19, 2024 for the 2024 Notes, September 19, 2026 for the 2026 Notes and August 19, 2029 for the 2029 Notes, such series of Notes will be redeemable, in whole at any time or in part from time to time, at the Company's option at a redemption price equal to 100% of the principal amount of the Notes to be redeemed plus any accrued and unpaid interest. In September 2019, the Company entered into a $1.0 billion Term Loan Agreement (the "Term Loan Agreement”) with Bank of America N.A. (“Bank of America”), as administrative agent, and certain financial institutions as lenders, pursuant to which such lenders committed to provide, contingent upon the completion of the eOne Acquisition and certain other customary conditions to funding, (1) a three-year senior unsecured term loan facility in an aggregate principal amount of $400.0 million (the “Three-Year Tranche”) and (2) a five-year senior unsecured term loan facility in an aggregate principal amount of $600.0 million (the “Five-Year Tranche” and together with the Three-Year Tranche, the “Term Loan Facilities”). The full amount of the Term Loan Facilities was drawn down on December 30, 2019, the closing date of the eOne Acquisition. As of September 25, 2022, the Company has fully repaid the Three-Year Tranche $400.0 million principal term loan, and of the Five-Year Tranche $600.0 million principal balance, the Company has repaid a total of $350.0 million in the following increments: $22.5 million in 2020; $180.0 million in 2021; $87.5 million in 2022; and $60.0 million of principal amortization payments in the first nine months of 2023. Loans under the remaining Five-Year Tranche bear interest at the Company’s option, at either the adjusted Term Secured Overnight Financing Rate ("SOFR"), plus an applicable margin, or the Base Rate, plus a per annum applicable rate that fluctuates between 100.0 basis points and 187.5 basis points, in the case of loans priced at the SOFR, and between 0.0 basis points and 87.5 basis points, in the case of loans priced at the Base Rate, in each case, based upon the non-credit enhanced, senior unsecured long-term debt ratings of the Company by Fitch Ratings Inc., Moody’s Investor Service, Inc. and S&P Global Rankings, subject to certain provisions taking into account potential differences in ratings issued by the relevant rating agencies or a lack of ratings issued by such rating agencies. Loans under the Five-Year Tranche require principal amortization payments that are payable in equal quarterly installments of 5.0% per annum of the original principal amount thereof for each of the first two years after funding, increasing to 10.0% per annum of the original principal amount thereof for each subsequent year. The Term Loan Agreement contains affirmative and negative covenants typical of this type of facility, including: (i) restrictions on the Company’s and its domestic subsidiaries’ ability to allow liens on their assets, (ii) restrictions on the incurrence of indebtedness, (iii) restrictions on the Company’s and certain of its subsidiaries’ ability to engage in certain mergers, (iv) the requirement that the Company maintain a Consolidated Interest Coverage Ratio of no less than 3.00:1.00 as of the end of any fiscal quarter and (v) the requirement that the Company maintain a Consolidated Total Leverage Ratio of no more than, depending on the gross proceeds of equity securities issued after the effective date of the acquisition of eOne, 5.65:1.00 or 5.40:1.00 for each of the first, second and third fiscal quarters ended after the funding of the Term Loan Facilities, with periodic step downs to 3.50:1.00 for the fiscal quarter ending December 31, 2023 and thereafter. As of October 1, 2023, the Company was in compliance with the financial covenants contained in the Term Loan Agreement. The Company may redeem its 5.10% notes due in 2044 (the "2044 Notes") at its option, at the greater of the principal amount of the notes or the present value of the remaining scheduled payments, discounted using the effective interest rate on applicable U.S. Treasury bills at the time of repurchase. Current portion of long-term debt at October 1, 2023 of $60.0 million, as shown on the consolidated balance sheet, represents the current portion of required quarterly principal amortization payments for the Five-Year Tranche of the Term Loan Facilities. All of the Company’s other long-term borrowings have contractual maturities that occur subsequent to 2023 with the exception of annual principal payments related to the Term Loan Facilities. The fair values of the Company's long-term debt are considered Level 3 fair values (see note 10 for further discussion of the fair value hierarchy) and are measured using the discounted future cash flows method. In addition to the debt terms, the valuation methodology includes an assumption of a discount rate that approximates the current yield on a similar debt security. This assumption is considered an unobservable input in that it reflects the Company's own assumptions about the inputs that market participants would use in pricing the asset or liability. The Company believes that this is the best information available for use in the fair value measurement. Financing Arrangements In September 2023, the Company entered into a third amended and restated revolving credit agreement with Bank of America, as administrative agent, swing line lender, a letter of credit issuer and a lender and certain other financial institutions, as lenders thereto (the "Amended Revolving Credit Agreement"), which provides the Company with commitments having a maximum aggregate principal amount of $1.25 billion. The Amended Revolving Credit Agreement contains certain financial covenants setting forth leverage and coverage requirements, and certain other limitations typical of an investment grade facility, including with respect to liens, mergers and incurrence of indebtedness. It also provides for a potential additional incremental commitment increase of up to $500.0 million subject to agreement of the lenders. Loans under the revolving credit facility bear interest, at the Company’s option, at either the Adjusted Term Benchmark Rate (determined in accordance with the Amended Revolving Credit Agreement), the Base Rate (determined in accordance with the Amended Revolving Credit Agreement) or the Daily Benchmark Rate (determined in accordance with the Amended Revolving Credit Agreement). In each case there is also a spread added to the rate, which fluctuates based upon the more favorable of the Company’s long-term debt ratings and the Company’s leverage. The Company is also required to pay a commitment fee in respect to the unused commitments under the facility, the rate for which is also determined based upon the more favorable of the Company's long-term debt ratings and leverage. The Amended Revolving Credit Agreement contains affirmative and negative covenants typical of this type of facility, including: (a) restrictions on the Company’s and its domestic subsidiaries’ ability to allow liens on their assets, (b) restrictions on the incurrence of indebtedness, (c) restrictions on the Company’s and certain of its subsidiaries’ ability to engage in certain mergers, (d) the requirement that the Company maintain a Consolidated Interest Coverage Ratio of no less than 3.00:1.00 as of the end of any fiscal quarter and (e) the requirement that the Company maintain: prior to the date on which the disposition of the Company’s eOne film and television business pursuant to the Equity Purchase Agreement, dated as of August 3, 2023, by and among the Company, Lions Gate Entertainment Corp., Lions Gate Entertainment Inc. and Lions Gate International Motion Pictures S.À.R.L. is consummated (the “EOne Disposition Date”), a Consolidated Total Leverage Ratio of no more than (1) 4.10:1.00 for the quarter ended September 30, 2023 and (2) 3.50:1.00 for the quarter ended December 31, 2023 and thereafter and on and after the EOne Disposition Date, a Consolidated Net Total Leverage Ratio of no more than (1) 4.00:1.00 for each of the quarters ended September 30, 2023 and December 31, 2023, (2) 3.75:1.00 for each of the first, second and fourth fiscal quarters of each year (other than 2023) and (3) 4.00:1:00 for the third fiscal quarter of each year (other than 2023). Production Financing In addition to the Company's financial instruments, the Company uses production financing facilities to fund its film and television productions which are arranged on an individual production basis by either special purpose production subsidiaries, each secured by future revenues of such production subsidiaries, which are non-recourse to the Company's assets, or through a senior revolving credit facility dedicated to production financing obtained in November 2021. The Company's senior revolving film and television production credit facility (the “RPCF”) with MUFG Union Bank, N.A., as administrative agent and lender and certain other financial institutions, as lenders thereto (the “Revolving Production Financing Agreement”) provides the Company with commitments having a maximum aggregate principal amount of $250.0 million. The Revolving Production Financing Agreement also provides the Company with the option to request a commitment increase up to an aggregate additional amount of $150.0 million subject to agreement of the lenders. The Revolving Production Financing Agreement extends through November 22, 2024. The Company uses the RPCF to fund certain of the Company’s original film and TV production costs. Borrowings under the RPCF are non-recourse to the Company's assets. Going forward, the Company expects to utilize the RPCF for the majority of its production financing needs. Production financing facilities typically have maturities of less than two years, while the titles are in production, and are repaid once delivered and all credits, broadcaster pre-sales and international sales have been received. The production financing facilities as of October 1, 2023, September 25, 2022 and December 25, 2022 are as follows:
(1) During the third quarter of 2023, production financing facilities of $150.9 million attributable to the non-core eOne Film and TV business, which were previously classified within Current portion of long-term debt, have been transferred to Liabilities held for sale. The following table represents the movements in production financing loans during the first nine months of 2023:
(2) See note 15 for additional information on assets and liabilities held for sale.
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Investments in Productions and Investments in Acquired Content Rights |
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Other Industries [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment in Productions and Investments in Acquired Content Rights | Investments in Productions and Investments in Acquired Content RightsInvestments in productions and investments in acquired content rights are predominantly monetized on a title-by-title basis and are recorded within other assets in the Company's consolidated balance sheets, to the extent they are considered recoverable against future revenues. These amounts are being amortized to program cost amortization using a model that reflects the consumption of the asset as it is released through various channels including broadcast licenses, theatrical release and home entertainment. Amounts capitalized are reviewed periodically on an individual title basis and any portion of the unamortized amount that appears not to be recoverable from future net revenues is expensed as part of program cost amortization during the period the loss becomes evident. The Company's unamortized investments in productions and investments in acquired content rights consisted of the following at October 1, 2023, September 25, 2022, and December 25, 2022:
(1) During the third quarter of 2023, investments in productions and investments in acquired content rights of $734.5 million, net of accumulated amortization, attributable to the non-core eOne Film and TV business, which were previously classified within Other assets, were transferred to Assets held for sale. (2) During the second quarter of 2023, the Company recorded film production cost impairment charges of $25.0 million associated with Dungeons & Dragons: Honor Among Thieves, within Program cost amortization in the Consolidated Statement of Operations, within the Entertainment Segment. The film impairment charges reflected the excess of the unamortized costs of the impaired film over its estimated fair value using estimated discounted future cash flows. The Company recorded $325.3 million of program cost amortization related to released programming in the nine months ended October 1, 2023, consisting of the following:
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Income Taxes |
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Oct. 01, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company and its subsidiaries file income tax returns in the United States and various state and international jurisdictions. In the normal course of business, the Company is regularly audited by U.S. federal, state and local, and international tax authorities in various tax jurisdictions. Our effective tax rate ("ETR") from continuing operations was 8.0% for the nine months ended October 1, 2023 and 22.1% for the nine months ended September 25, 2022. The following items caused the year-to-date ETR to be significantly different from the prior year ETR: •during the nine months ended October 1, 2023, the Company recorded an impairment of goodwill related to the Film and TV reporting unit of $231.2 million with no tax benefit. The Company also recorded a net discrete tax benefit of $113.3 million, exclusive of the goodwill impairment, primarily associated with tax benefits on the impairment of trade names in the Entertainment segment during the second quarter and the $473.0 million loss on assets held for sale in the third quarter, and; •during the nine months ended September 25, 2022, the Company recorded a net discrete tax benefit of $6.7 million, primarily associated with (i) the release of certain valuation allowances during the first quarter; (ii) the decrease to our liability for uncertain tax positions that resulted from statutes of limitations expiring in certain jurisdictions; and (iii) a benefit on the loss of assets held for sale in the third quarter. The Company is no longer subject to U.S. federal income tax examinations for years before 2012. With few exceptions, the Company is no longer subject to U.S. state or local and non-U.S. income tax examinations by tax authorities in its major jurisdictions for years before 2016. The Company is currently under income tax examination by the Internal Revenue Service and in several U.S. state and local and non-U.S. jurisdictions.
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Fair Value of Financial Instruments |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value of Financial Instruments | Fair Value of Financial Instruments The Company measures certain financial instruments at fair value. The fair value hierarchy consists of three levels: Level 1 fair values are based on quoted market prices in active markets for identical assets or liabilities that the entity has the ability to access; Level 2 fair values are those 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; and Level 3 fair values are based on inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. There have been transfers between levels within the fair value hierarchy. Accounting standards permit entities to measure many financial instruments and certain other items at fair value and establish presentation and disclosure requirements designed to facilitate comparisons between entities that choose different measurement attributes for similar assets and liabilities. At October 1, 2023, September 25, 2022 and December 25, 2022, the Company had the following assets and liabilities measured at fair value in its consolidated balance sheets (excluding assets for which the fair value is measured using net asset value per share):
(1) Available-for-sale securities include equity securities of one company quoted on an active public market. (2) These balances include certain amounts attributable to the non-core eOne Film and TV business that were reclassified to Assets held for sale and Liabilities held for sale at October 1, 2023. See note 15 for additional information. The Company's derivatives consist of foreign currency forward and option contracts. The Company uses current forward rates of the respective foreign currencies to measure the fair value of these contracts. The Company’s option agreement relates to an equity method investment in Discovery Family Channel ("Discovery"). The option agreement is included in other liabilities at October 1, 2023, September 25, 2022 and December 25, 2022, and is valued using an option pricing model based on the fair value of the related investment. Inputs used in the option pricing model include the volatility and fair value of the underlying company which are considered unobservable inputs as they reflect the Company's own assumptions about the inputs that market participants would use in pricing the asset or liability. The Company believes that this is the best information available for use in the fair value measurement. There were no changes in these valuation techniques during the quarter ended October 1, 2023. The following is a reconciliation of the beginning and ending balances of the fair value measurements of the Company's financial instruments which use significant unobservable inputs (Level 3):
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Derivative Financial Instruments |
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Oct. 01, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Financial Instruments | Derivative Financial Instruments Hasbro uses foreign currency forward contracts and foreign exchange option contracts to mitigate the impact of currency rate fluctuations on firmly committed and projected future foreign currency transactions. These over-the-counter contracts, which hedge future currency requirements related to purchases of inventory, product sales and television and film production costs (see note 7), as well as other cross-border transactions not denominated in the functional currency of the business unit, are primarily denominated in United States and Hong Kong dollars, and Euros. All contracts are entered into with a number of counterparties, all of which are major financial institutions. The Company believes that a default by a single counterparty would not have a material adverse effect on the financial condition of the Company. Hasbro does not enter into derivative financial instruments for speculative purposes. Cash Flow Hedges All of the Company's designated foreign currency forward contracts are considered to be cash flow hedges. These instruments hedge a portion of the Company's currency requirements associated with anticipated inventory purchases, product sales, certain production expenses and other cross-border transactions, primarily for the remainder of 2023, and into 2024. At October 1, 2023, September 25, 2022 and December 25, 2022, the notional amounts and fair values of the Company's foreign currency forward contracts designated as cash flow hedging instruments were as follows:
(1) Includes certain cash flow hedges attributable to the non-core eOne Film and TV business, which were reclassified to Assets held for sale and Liabilities held for sale at October 1, 2023. See note 15 for additional information. The Company has a master agreement with each of its counterparties that allows for the netting of outstanding forward contracts. The fair values of the Company's foreign currency forward contracts designated as cash flow hedges are recorded in the consolidated balance sheets at October 1, 2023, September 25, 2022 and December 25, 2022 as follows:
(1) Includes certain balances attributable to the non-core eOne Film and TV business which were reclassified to Assets held for sale and Liabilities held for sale at October 1, 2023. See note 15 for additional information. Net gains (losses) on cash flow hedging activities have been reclassified from other comprehensive earnings (loss) to net earnings for the quarters and nine months ended October 1, 2023 and September 25, 2022 as follows:
Undesignated Hedges The Company also enters into foreign currency forward contracts to minimize the impact of changes in the fair value of intercompany loans due to foreign currency changes. The Company does not use hedge accounting for these contracts as changes in the fair values of these contracts are substantially offset by changes in the fair value of the intercompany loans. Additionally, to manage transactional exposure to fair value movements on certain monetary assets and liabilities denominated in foreign currencies, the Company has implemented a balance sheet hedging program. The Company does not use hedge accounting for these contracts as changes in the fair values of these contracts are offset by changes in the fair value of the balance sheet items. As of October 1, 2023, September 25, 2022 and December 25, 2022 the total notional amounts of the Company's undesignated derivative instruments were $807.5 million, $601.3 million and $765.6 million, respectively. At October 1, 2023, September 25, 2022 and December 25, 2022, the fair values of the Company's undesignated derivative financial instruments were recorded in the consolidated balance sheets as follows:
The Company recorded net gains of $15.1 million and $26.4 million on these instruments to other (income) expense, net for the quarter and nine months ended October 1, 2023, respectively, and net gains of $28.7 million and $49.2 million for the quarter and nine months ended September 25, 2022, respectively, relating to the change in fair value of such derivatives, substantially offsetting gains and losses from the change in fair value of intercompany loans to which the contracts relate. For additional information related to the Company's derivative financial instruments (see notes 5 and 10).
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Leases |
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Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases | Leases The Company occupies offices and uses certain equipment under various operating lease arrangements. The Company has no material finance leases. The Company's leases have remaining lease terms of 1 to 15 years, some of which include options to extend lease terms or options to terminate current lease terms at certain times, subject to notice requirements set out in the lease agreement. Payments under certain of the lease agreements may be subject to adjustment based on a consumer price index or other inflationary indices. The lease liability for such lease agreements as of the adoption date, was based on fixed payments as of the adoption date. Any adjustments to these payments based on the related indices will be recorded to expense as incurred. Leases with an expected term of 12 months or less are not capitalized. Lease expense under such leases is recorded straight line over the life of the lease. The Company capitalizes non-lease components for equipment leases, but expenses non-lease components as incurred for real estate leases. The rent expense under such arrangements and similar arrangements that do not qualify as leases under ASU 2016-02, net of sublease income amounted to $21.7 million and $70.0 million for the quarter and nine months ended October 1, 2023, respectively, and $24.2 million and $67.4 million for the quarter and nine months ended September 25, 2022, respectively, and was not material to the Company's financial statements. Due to the held for sale criteria being met as of October 1, 2023, certain lease assets attributable to the non-core eOne Film and TV businesses are no longer being depreciated. Expenses related to short-term leases (expected terms less than 12 months) or variable lease payments were not material in the quarters or nine months ended October 1, 2023 or September 25, 2022. Information related to the Company’s leases for the quarters and nine months ended October 1, 2023 and September 25, 2022 is as follows:
(1) Includes certain amounts attributable to the non-core eOne Film and TV businesses, which were transferred to Assets held for sale and Liabilities held for sale as of October 1, 2023. See note 15 for additional information. The following is a reconciliation of future undiscounted cash flows to the operating liabilities, and the related right of use assets, included in our consolidated balance sheets as of October 1, 2023:
(1) Includes certain assets and liabilities attributable to the non-core eOne Film and TV businesses, which were transferred to Assets held for sale and Liabilities held for sale as of October 1, 2023. See note 15 for additional information. (2) Included in Accrued liabilities on the consolidated balance sheets. (3) Included in Other liabilities on the consolidated balance sheets. (4) Included in Property, plant, and equipment on the consolidated balance sheets.
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Segment Reporting |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting | Segment Reporting Hasbro is a toy and game company with a broad portfolio of brands and entertainment content spanning toys, games, licensed products ranging from traditional to digital, as well as film and television entertainment. The Company's three principal reportable segments are (i) Consumer Products, (ii) Wizards of the Coast and Digital Gaming, and (iii) Entertainment. The Consumer Products segment engages in the sourcing, marketing and sales of toy and game products around the world. The Consumer Products business also promotes the Company's brands through the out-licensing of our trademarks, characters and other brand and intellectual property rights to third parties, through the sale of branded consumer products such as toys and apparel. The Wizards of the Coast and Digital Gaming business engages in the promotion of the Company's brands through the development of trading card, role-playing and digital game experiences based on Hasbro and Wizards of the Coast games. The Entertainment segment engages in the development, acquisition, production, distribution and sale of world-class entertainment content including film, scripted and unscripted television, family programming, digital content and live entertainment. Corporate and Other provides management and administrative services to the Company's principal reporting segments described above and consists of unallocated corporate expenses and administrative costs and activities not considered when evaluating segment performance as well as certain assets benefiting more than one segment. The significant accounting policies of the Company's segments are the same as those referenced in note 1. Results shown for the quarter ended October 1, 2023 are not necessarily representative of those which may be expected for the full year 2023, nor were those of the comparable 2022 periods representative of those actually experienced for the full year 2022. Similarly, such results are not necessarily those which would be achieved were each segment an unaffiliated business enterprise. Information by segment and a reconciliation to reported amounts for the quarters and nine months ended October 1, 2023 and September 25, 2022 are as follows:
(a) Certain long-term assets, including property, plant and equipment, goodwill and other intangibles, which benefit multiple operating segments, are included in both Entertainment and Corporate and Other. Allocations of certain Corporate and Other expenses, related to these assets are made to the individual operating segments at the beginning of the year based on budgeted amounts. Any differences between actual and budgeted amounts are reflected in Corporate and Other because allocations are translated from the U.S. Dollar to local currency at budgeted rates when recorded. Corporate and Other also includes the elimination of inter-company balance sheet amounts. (b) Amounts represent revenues from transactions with other operating segments that are included in the operating profit (loss) of the segment. (c) Corporate and Other Operating profit (loss) includes Operational Excellence related transformation office and consulting fees of $8.4 million and $29.4 million, for the quarter and nine-month periods ended October 1, 2023, respectively, which are recorded within Selling, distribution and administration costs within the Consolidated Statements of Operations. Third party consultants were engaged to assist the Company in performing a comprehensive review of operations and developing a transformation plan designed to support the organization in identifying, realizing, and capturing savings through the identification of organizational initiatives intended to create efficiencies and improve business processes and operations. The consultants assisted in providing benchmark data and are currently assisting with the design of an improved operating model and supply chain function. The Company expects this consulting assistance to conclude in 2023 in line with the planning stages of the final components of the transformation plan. Corporate and Other Operating Profit (loss) includes other consulting expense of $2.8 million and $24.3 million for the quarter and nine month periods ended September 25, 2022, respectively, as well as incentive compensation for all periods presented. The following table represents consolidated Consumer Products segment net revenues by major geographic region for the quarters and nine months ended October 1, 2023 and September 25, 2022:
The following table represents consolidated Wizards of the Coast and Digital Gaming segment net revenues by category for the quarters and nine months ended October 1, 2023 and September 25, 2022:
The following table represents consolidated Entertainment segment net revenues by category for the quarters and nine months ended October 1, 2023 and September 25, 2022:
Effective for the first quarter of 2023, the Company realigned its brand portfolios to correspond with the Blueprint 2.0 strategy. Net Revenues by Brand Portfolio below have been restated to present net revenues and operating profit under the realigned structure. See note 1 for more information on the Company's brand portfolio realignment. The following table presents consolidated net revenues by brand portfolio for the quarters and nine months ended October 1, 2023 and September 25, 2022:
Net revenues from Hasbro's Total Gaming category, including all gaming revenue, most notably DUNGEONS & DRAGONS, MAGIC: THE GATHERING and Hasbro Gaming, totaled $628.0 million and $508.6 million for the quarters ended October 1, 2023 and September 25, 2022, respectively, of which MAGIC: THE GATHERING contributed $287.4 million and $239.3 million, respectively. Net revenues from Hasbro's Total Gaming category totaled $1,505.7 million and $1,415.7 million for the nine months ended October 1, 2023 and September 25, 2022, respectively, of which MAGIC: THE GATHERING contributed $827.5 million and $802.0 million, respectively.
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Restructuring Actions |
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Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring Actions | Restructuring Actions During 2018 and 2020, the Company took certain restructuring actions including headcount reduction aimed at right-sizing the Company’s cost-structure and integration actions related to the acquisition of eOne. As of October 1, 2023, the Company had a remaining balance of $6.7 million in severance and other employee expenses related to these programs included within other accrued liabilities in the Consolidated Balance Sheets, after making payments of $2.3 million in fiscal 2023. Substantially all of the remaining cash payments related to these programs are expected to be made by the end of 2024. During 2022, in support of Blueprint 2.0, Hasbro announced an Operational Excellence program ("the Program"), an ongoing enterprise-wide initiative intended to improve our business through specialized organizational programs that include targeted cost-savings, supply chain transformation and certain other restructuring actions designed to drive growth and enhance shareholder value. In January 2023, in connection the Program we announced the elimination of approximately 1,000 positions from our global workforce, or approximately 15% of global full-time employees. Charges related to the Program were recorded in Selling, Distribution and Administration within Corporate and Other. These actions are expected to be substantially complete by the end of 2024. Going forward, the Company may implement further cost-saving initiatives under the Program that could result in additional restructuring charges including severance and other employee charges. As of October 1, 2023, the liability balance included within other accrued liabilities in the Consolidated Balance Sheets for the restructuring actions associated with the Program is as follows:
The following table presents the restructuring charges incurred to date under the Program, along with the estimated charges expected to be incurred on approved initiatives under the plan as of October 1, 2023:
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Assets Held for Sale |
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Assets Held for Sale | Assets Held for Sale In connection with Blueprint 2.0, and after evaluating its portfolio of businesses, the Company determined that its non-core eOne Film and TV business, which is included within the Entertainment segment, is no longer aligned with its current long-term strategy and during the third quarter of 2023, the Company entered into a definitive agreement to sell its non-core eOne Film and TV business to Lions Gate Entertainment. The pending transaction is subject to the satisfaction of customary closing conditions and is expected to close before the end of fiscal 2023. The Company determined that the carrying value of the non-core eOne Film and TV business was greater than its fair value and, accordingly, recorded a pre-tax non-cash loss on assets held for sale of $473.0 million for the quarter and nine months ended October 1, 2023, in the Company’s consolidated statements of operations, within the Entertainment segment. The Company determined that the non-core eOne Film and TV business met the criteria to be classified as held for sale at October 1, 2023, but did not meet the criteria to be classified as discontinued operations. As a result, the related assets and liabilities were included in the separate held-for-sale line items of the asset and liability sections of the consolidated balance sheets. The following table summarizes the assets and liabilities held for sale at October 1, 2023:
(1) The net cash and cash equivalents attributable to the non-core entertainment business will be paid for by Lionsgate under the agreement between the Company and Lionsgate dated August 3, 2023 as part of the purchase price adjustment for net debt. (2) In addition to the write-down loss allowance of $457.3 million, the Company also recognized $15.7 million of currency translation losses on the classification of held for sale. The pre-tax non-cash loss on assets held for sale of $473.0 million includes both the write-down allowance and the currency translation losses.
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Pay vs Performance Disclosure - USD ($) $ in Millions |
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Pay vs Performance Disclosure | ||||
Net (Loss) earnings attributable to Hasbro, Inc. | $ (171.1) | $ 129.2 | $ (428.2) | $ 332.4 |
Insider Trading Arrangements |
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Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Basis of Presentation (Policies) |
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Accounting Policies [Abstract] | |
Basis of Presentation | In the opinion of management, the accompanying unaudited interim consolidated financial statements contain all normal and recurring adjustments necessary to present fairly the consolidated financial position of Hasbro, Inc. and all majority-owned subsidiaries ("Hasbro" or the "Company") as of October 1, 2023 and September 25, 2022, and the results of its operations and cash flows and shareholders' equity for the periods then ended in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP"). The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and notes thereto. Actual results could differ from those estimates. |
Assets and Liabilities Held for Sale | We classify assets and related liabilities as held for sale when: (i) management has committed to a plan to sell the assets, (ii) the net assets are available for immediate sale, (iii) there is an active program to locate a buyer, (iv) the sale and transfer of the net assets is probable within one year, (v) the sale price of the net assets is comparable to current fair value and (vi) actions required to complete the plan indicate it is unlikely that significant changes will be made or that management will withdraw from the sale. Assets and liabilities held for sale are presented separately on our consolidated balance sheets at the lower of cost or fair value, less costs to sell. Depreciation of property, plant and equipment and amortization of finite-lived intangible assets and right-of-use assets are not recorded while these assets are classified as held for sale. For each period that assets are classified as being held for sale, they are tested for recoverability. Unless otherwise specified, the amounts and information in the notes presented do not include assets and liabilities that have been reclassified as held for sale as of October 1, 2023. See note 15 — Assets held for sale, for additional information. |
Recently Adopted Accounting Standards and Issued Accounting Pronouncements | Recently Adopted Accounting Standards As of October 1, 2023, there were no recently adopted accounting standards that had a material effect on the Company’s financial statements. Issued Accounting Pronouncements As of October 1, 2023, there were no recently issued accounting pronouncements that are expected to have a material effect on the Company’s financial statements.
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Revenue Recognition | Contract Assets and Liabilities In the ordinary course of business, the Company’s Consumer Products, Wizards of the Coast and Digital Gaming and Entertainment segments enter into contracts to license certain of the Company’s intellectual property, providing licensees right-to-use or access to such intellectual property for use in the production and sale of consumer products and digital game development, and for use within content for distribution over streaming platforms and for television and film. The Company also licenses owned television and film content for distribution to third parties in formats that include broadcast, digital streaming and theatrical. Through these arrangements, the Company may receive advanced royalty payments from licensees, either in advance of a licensees’ subsequent sales to customers or, prior to the completion of the Company’s performance obligation. In addition, the Company’s Wizards of the Coast and Digital Gaming segment may receive advanced payments from end users of its digital games at the time of the initial purchase or through in-application purchases. These digital gaming revenues are recognized over a period of time, determined based on player usage patterns or the estimated playing life of the user or when additional downloadable content is made available. The Company defers revenues on all licensee and digital gaming advanced payments until the respective performance obligations are satisfied. The Company records the aggregate deferred revenues as contract liabilities, with the current portion recorded within Accrued Liabilities and the long-term portion recorded as Other Non-current Liabilities in the Company’s consolidated balance sheets. The Company records contract assets, primarily related to (1) minimum guarantees being recognized in advance of contractual invoicing, which are recognized ratably over the terms of the respective license periods, and (2) film and television distribution revenues recorded for content delivered, where payment will occur over the license term. The current portion of contract assets is recorded in Prepaid Expenses and Other Current Assets, respectively, and the long-term portion is recorded within Other Long-Term Assets. Disaggregation of revenuesThe Company disaggregates its revenues from contracts with customers by reportable segment: Consumer Products, Wizards of the Coast and Digital Gaming, and Entertainment. The Company further disaggregates revenues within its Consumer Products segment by major geographic region: North America, Europe, Latin America, and Asia Pacific; within its Wizards of the Coast and Digital Gaming segment by category: Tabletop Gaming and Digital and Licensed Gaming; and within its Entertainment segment by category: Film & TV, Family Brands, and Other. Finally, the Company disaggregates its revenues by brand portfolio into four brand categories: Franchise Brands, Partner Brands, Portfolio Brands, and Non-Hasbro Branded Film & TV. We believe these collectively depict how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors.
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Leases | The Company occupies offices and uses certain equipment under various operating lease arrangements. The Company has no material finance leases. The Company's leases have remaining lease terms of 1 to 15 years, some of which include options to extend lease terms or options to terminate current lease terms at certain times, subject to notice requirements set out in the lease agreement. Payments under certain of the lease agreements may be subject to adjustment based on a consumer price index or other inflationary indices. The lease liability for such lease agreements as of the adoption date, was based on fixed payments as of the adoption date. Any adjustments to these payments based on the related indices will be recorded to expense as incurred. Leases with an expected term of 12 months or less are not capitalized. Lease expense under such leases is recorded straight line over the life of the lease. The Company capitalizes non-lease components for equipment leases, but expenses non-lease components as incurred for real estate leases. |
Revenue Recognition (Tables) |
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Schedule of Contract Assets and Liabilities | The changes in carrying amounts of contract assets and liabilities for the nine months ended October 1, 2023 are as follows:
(1) See note 15 for additional information on assets and liabilities held for sale.
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Earnings (Loss) Per Share (Tables) |
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Oct. 01, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Earnings (Loss) Per Share | Net earnings (loss) per share data for the quarters and nine months ended October 1, 2023 and September 25, 2022 were computed as follows:
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Goodwill (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Oct. 01, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Goodwill | Changes in the carrying amount of goodwill, by operating segment, for the nine months ended October 1, 2023 and September 25, 2022 are as follows:
(1) See note 1 for discussion of goodwill impairment recorded during the second quarter of 2023.
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Other Comprehensive Earnings (Loss) (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Oct. 01, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Other Comprehensive Income (Loss), Tax Effect | The following table presents the related tax effects on changes in other comprehensive earnings (loss) for the quarters and nine months ended October 1, 2023 and September 25, 2022.
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Schedule of Accumulated Other Comprehensive Earnings (Loss), Net of Tax | Changes in the components of accumulated other comprehensive earnings (loss), net of tax for the nine months ended October 1, 2023 and September 25, 2022 are as follows:
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Accrued Liabilities (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Oct. 01, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payables and Accruals [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accrued Liabilities | Components of accrued liabilities for the periods ended October 1, 2023, September 25, 2022 and December 25, 2022 were as follows:
(1) For the nine-month period ended October 1, 2023, liabilities of $607.4 million attributable to the Film & TV business, which were previously classified within Accrued liabilities, have been transferred to Liabilities held for sale. For the nine-month period ended September 25, 2022, liabilities of $15.0 million attributable to non-core entertainment businesses, which were previously classified within Accrued liabilities, were transferred to Liabilities held for sale.
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Financial Instruments (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Oct. 01, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Long-term Debt Instruments | The carrying costs, which are equal to the outstanding principal amounts, and fair values of the Company's long-term borrowings as of October 1, 2023, September 25, 2022 and December 25, 2022 are as follows:
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Schedule of Production Financing Loans | The production financing facilities as of October 1, 2023, September 25, 2022 and December 25, 2022 are as follows:
(1) During the third quarter of 2023, production financing facilities of $150.9 million attributable to the non-core eOne Film and TV business, which were previously classified within Current portion of long-term debt, have been transferred to Liabilities held for sale.
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Schedule of Production Financing Loans | The following table represents the movements in production financing loans during the first nine months of 2023:
(2) See note 15 for additional information on assets and liabilities held for sale.
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Investments in Productions and Investments in Acquired Content Rights (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Oct. 01, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Industries [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Program Production Costs | The Company's unamortized investments in productions and investments in acquired content rights consisted of the following at October 1, 2023, September 25, 2022, and December 25, 2022:
(1) During the third quarter of 2023, investments in productions and investments in acquired content rights of $734.5 million, net of accumulated amortization, attributable to the non-core eOne Film and TV business, which were previously classified within Other assets, were transferred to Assets held for sale. (2) During the second quarter of 2023, the Company recorded film production cost impairment charges of $25.0 million associated with Dungeons & Dragons: Honor Among Thieves, within Program cost amortization in the Consolidated Statement of Operations, within the Entertainment Segment. The film impairment charges reflected the excess of the unamortized costs of the impaired film over its estimated fair value using estimated discounted future cash flows.
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Schedule of Program Cost Amortization | The Company recorded $325.3 million of program cost amortization related to released programming in the nine months ended October 1, 2023, consisting of the following:
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Fair Value of Financial Instruments (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Oct. 01, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Fair Value Hierarchy | At October 1, 2023, September 25, 2022 and December 25, 2022, the Company had the following assets and liabilities measured at fair value in its consolidated balance sheets (excluding assets for which the fair value is measured using net asset value per share):
(1) Available-for-sale securities include equity securities of one company quoted on an active public market. (2) These balances include certain amounts attributable to the non-core eOne Film and TV business that were reclassified to Assets held for sale and Liabilities held for sale at October 1, 2023. See note 15 for additional information.
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Schedule of Reconciliation of Level 3 Fair Value | The following is a reconciliation of the beginning and ending balances of the fair value measurements of the Company's financial instruments which use significant unobservable inputs (Level 3):
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Derivative Financial Instruments (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Oct. 01, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Cash Flow Hedging Instruments | At October 1, 2023, September 25, 2022 and December 25, 2022, the notional amounts and fair values of the Company's foreign currency forward contracts designated as cash flow hedging instruments were as follows:
(1) Includes certain cash flow hedges attributable to the non-core eOne Film and TV business, which were reclassified to Assets held for sale and Liabilities held for sale at October 1, 2023. See note 15 for additional information.
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Schedule of Cash Flow Hedging Instruments, Statements of Financial Performance and Financial Position, Location | The fair values of the Company's foreign currency forward contracts designated as cash flow hedges are recorded in the consolidated balance sheets at October 1, 2023, September 25, 2022 and December 25, 2022 as follows:
(1) Includes certain balances attributable to the non-core eOne Film and TV business which were reclassified to Assets held for sale and Liabilities held for sale at October 1, 2023. See note 15 for additional information.
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Schedule of Derivative Instruments, Gain (Loss) in Statement of Operations | Net gains (losses) on cash flow hedging activities have been reclassified from other comprehensive earnings (loss) to net earnings for the quarters and nine months ended October 1, 2023 and September 25, 2022 as follows:
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Schedule of Fair Values of Undesignated Derivative Financial Instruments | At October 1, 2023, September 25, 2022 and December 25, 2022, the fair values of the Company's undesignated derivative financial instruments were recorded in the consolidated balance sheets as follows:
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Leases (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Oct. 01, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Information Related to Leases | Information related to the Company’s leases for the quarters and nine months ended October 1, 2023 and September 25, 2022 is as follows:
(1) Includes certain amounts attributable to the non-core eOne Film and TV businesses, which were transferred to Assets held for sale and Liabilities held for sale as of October 1, 2023. See note 15 for additional information.
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Schedule of Reconciliation of Future Undiscounted Cash Flows | The following is a reconciliation of future undiscounted cash flows to the operating liabilities, and the related right of use assets, included in our consolidated balance sheets as of October 1, 2023:
(1) Includes certain assets and liabilities attributable to the non-core eOne Film and TV businesses, which were transferred to Assets held for sale and Liabilities held for sale as of October 1, 2023. See note 15 for additional information. (2) Included in Accrued liabilities on the consolidated balance sheets. (3) Included in Other liabilities on the consolidated balance sheets. (4) Included in Property, plant, and equipment on the consolidated balance sheets.
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Segment Reporting (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Oct. 01, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Information by Segment and Reconciliation to Reported Amounts | Information by segment and a reconciliation to reported amounts for the quarters and nine months ended October 1, 2023 and September 25, 2022 are as follows:
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Schedule of Operating Profit (Loss) by Segment |
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Schedule of Total Assets by Segment |
(a) Certain long-term assets, including property, plant and equipment, goodwill and other intangibles, which benefit multiple operating segments, are included in both Entertainment and Corporate and Other. Allocations of certain Corporate and Other expenses, related to these assets are made to the individual operating segments at the beginning of the year based on budgeted amounts. Any differences between actual and budgeted amounts are reflected in Corporate and Other because allocations are translated from the U.S. Dollar to local currency at budgeted rates when recorded. Corporate and Other also includes the elimination of inter-company balance sheet amounts. (b) Amounts represent revenues from transactions with other operating segments that are included in the operating profit (loss) of the segment. (c) Corporate and Other Operating profit (loss) includes Operational Excellence related transformation office and consulting fees of $8.4 million and $29.4 million, for the quarter and nine-month periods ended October 1, 2023, respectively, which are recorded within Selling, distribution and administration costs within the Consolidated Statements of Operations. Third party consultants were engaged to assist the Company in performing a comprehensive review of operations and developing a transformation plan designed to support the organization in identifying, realizing, and capturing savings through the identification of organizational initiatives intended to create efficiencies and improve business processes and operations. The consultants assisted in providing benchmark data and are currently assisting with the design of an improved operating model and supply chain function. The Company expects this consulting assistance to conclude in 2023 in line with the planning stages of the final components of the transformation plan. Corporate and Other Operating Profit (loss) includes other consulting expense of $2.8 million and $24.3 million for the quarter and nine month periods ended September 25, 2022, respectively, as well as incentive compensation for all periods presented.
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Schedule of Net Revenues by Major Geographic Region | The following table represents consolidated Consumer Products segment net revenues by major geographic region for the quarters and nine months ended October 1, 2023 and September 25, 2022:
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Schedules of Net Revenues by Category | The following table represents consolidated Wizards of the Coast and Digital Gaming segment net revenues by category for the quarters and nine months ended October 1, 2023 and September 25, 2022:
The following table represents consolidated Entertainment segment net revenues by category for the quarters and nine months ended October 1, 2023 and September 25, 2022:
The following table presents consolidated net revenues by brand portfolio for the quarters and nine months ended October 1, 2023 and September 25, 2022:
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Restructuring Actions (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Oct. 01, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Restructuring and Related Costs | As of October 1, 2023, the liability balance included within other accrued liabilities in the Consolidated Balance Sheets for the restructuring actions associated with the Program is as follows:
The following table presents the restructuring charges incurred to date under the Program, along with the estimated charges expected to be incurred on approved initiatives under the plan as of October 1, 2023:
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Assets Held for Sale (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Oct. 01, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Assets and Liabilities Held for Sale | The following table summarizes the assets and liabilities held for sale at October 1, 2023:
(1) The net cash and cash equivalents attributable to the non-core entertainment business will be paid for by Lionsgate under the agreement between the Company and Lionsgate dated August 3, 2023 as part of the purchase price adjustment for net debt. (2) In addition to the write-down loss allowance of $457.3 million, the Company also recognized $15.7 million of currency translation losses on the classification of held for sale. The pre-tax non-cash loss on assets held for sale of $473.0 million includes both the write-down allowance and the currency translation losses.
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Basis of Presentation (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Oct. 01, 2023 |
Jul. 02, 2023 |
Sep. 25, 2022 |
Oct. 01, 2023 |
Sep. 25, 2022 |
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Accounting Policies [Abstract] | |||||
Non-cash impairment charges | $ 296.2 | ||||
Impairment of goodwill | $ 0.0 | 231.2 | $ 0.0 | $ 231.2 | $ 0.0 |
Impairment of intangible assets | $ 65.0 | $ 65.0 | $ 0.0 |
Revenue Recognition - Contract Assets and Liabilities (Details) $ in Millions |
9 Months Ended |
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Oct. 01, 2023
USD ($)
| |
Assets | |
Balance at beginning of the year | $ 594.4 |
Recognized in current year | 389.4 |
Amounts reclassified to accounts receivable | (427.4) |
Reclassified to assets held for sale | (384.6) |
Foreign currency impact | (5.3) |
Ending Balance | 166.5 |
Liabilities | |
Balance at beginning of the year | 113.0 |
Recognized in current year | 254.5 |
Amounts in beginning balance reclassified to revenue | (68.3) |
Current year amounts reclassified to revenue | (156.6) |
Reclassified to liabilities held for sale | (27.5) |
Foreign currency impact | (2.1) |
Ending Balance | $ 113.0 |
Earnings (Loss) Per Share - Schedule of Earnings (Loss) Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Oct. 01, 2023 |
Sep. 25, 2022 |
Oct. 01, 2023 |
Sep. 25, 2022 |
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Basic | ||||
Net (loss) earnings attributable to Hasbro, Inc. | $ (171.1) | $ 129.2 | $ (428.2) | $ 332.4 |
Average shares outstanding, basic (in shares) | 138.8 | 138.3 | 138.7 | 138.9 |
Net earnings (loss) per common share, basic (in dollars per share) | $ (1.23) | $ 0.93 | $ (3.09) | $ 2.39 |
Diluted | ||||
Net (loss) earnings attributable to Hasbro, Inc. | $ (171.1) | $ 129.2 | $ (428.2) | $ 332.4 |
Average shares outstanding, diluted (in shares) | 138.8 | 138.3 | 138.7 | 138.9 |
Effect of dilutive securities: | ||||
Options and other share-based awards (in shares) | 0.0 | 0.2 | 0.0 | 0.2 |
Equivalent shares, diluted (in shares) | 138.8 | 138.5 | 138.7 | 139.1 |
Net earnings (loss) per common share, diluted (in dollars per share) | $ (1.23) | $ 0.93 | $ (3.09) | $ 2.39 |
Earnings (Loss) Per Share - Narrative (Details) - shares shares in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Oct. 01, 2023 |
Sep. 25, 2022 |
Oct. 01, 2023 |
Sep. 25, 2022 |
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Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share, shares would have been included if no net loss (in shares) | 1.9 | 1.7 | ||
Antidilutive securities excluded from computation of earnings per share, amount, treasury stock method (in shares) | 0.4 | 0.2 | ||
Employee stock option and restricted stock units | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 2.1 | 2.9 | 2.5 | 2.8 |
Goodwill - Schedule of Goodwill (Details) - USD ($) $ in Millions |
9 Months Ended | |
---|---|---|
Oct. 01, 2023 |
Sep. 25, 2022 |
|
Goodwill [Roll Forward] | ||
Beginning balance | $ 3,470.1 | $ 3,419.6 |
Acquired during the period | 64.7 | |
Foreign exchange translation | (0.1) | (2.7) |
Impairment during the period | 231.2 | 11.8 |
Ending balance | 3,238.8 | 3,469.8 |
Consumer Products | ||
Goodwill [Roll Forward] | ||
Beginning balance | 1,584.7 | 1,584.9 |
Acquired during the period | 0.0 | |
Foreign exchange translation | (0.1) | (0.4) |
Impairment during the period | 0.0 | 0.0 |
Ending balance | 1,584.6 | 1,584.5 |
Wizards of the Coast and Digital Gaming | ||
Goodwill [Roll Forward] | ||
Beginning balance | 371.5 | 307.3 |
Acquired during the period | 64.7 | |
Foreign exchange translation | 0.0 | (0.5) |
Impairment during the period | 0.0 | 0.0 |
Ending balance | 371.5 | 371.5 |
Entertainment | ||
Goodwill [Roll Forward] | ||
Beginning balance | 1,513.9 | 1,527.4 |
Acquired during the period | 0.0 | |
Foreign exchange translation | 0.0 | (1.8) |
Impairment during the period | 231.2 | 11.8 |
Ending balance | $ 1,282.7 | $ 1,513.8 |
Goodwill - Narrative (Details) - USD ($) $ in Millions |
9 Months Ended | ||||
---|---|---|---|---|---|
May 19, 2022 |
Oct. 01, 2023 |
Sep. 25, 2022 |
Dec. 25, 2022 |
Dec. 26, 2021 |
|
Goodwill [Line Items] | |||||
Impairment during the period | $ 231.2 | $ 11.8 | |||
Goodwill | $ 3,238.8 | $ 3,469.8 | $ 3,470.1 | $ 3,419.6 | |
D&D Beyond | |||||
Goodwill [Line Items] | |||||
Aggregate purchase price | $ 146.3 | ||||
Goodwill | $ 64.7 |
Other Comprehensive Earnings (Loss) - Schedule of Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Oct. 01, 2023 |
Sep. 25, 2022 |
Oct. 01, 2023 |
Sep. 25, 2022 |
|
Other comprehensive earnings (loss), tax effect: | ||||
Tax expense on unrealized holding losses | $ 0.0 | $ 0.0 | $ 0.0 | $ 0.1 |
Tax (expense) benefit on cash flow hedging activities | (0.7) | (1.7) | 1.6 | (2.1) |
Reclassifications to earnings, tax effect: | ||||
Tax (benefit) expense on cash flow hedging activities | (0.9) | 0.6 | (1.4) | 0.5 |
Amortization of unrecognized pension and postretirement amounts | 0.0 | 0.0 | 0.1 | (0.1) |
Total tax effect on other comprehensive earnings (loss) | $ (1.6) | $ (1.1) | $ 0.3 | $ (1.6) |
Accrued Liabilities (Details) - USD ($) $ in Millions |
Oct. 01, 2023 |
Dec. 25, 2022 |
Sep. 25, 2022 |
---|---|---|---|
Payables and Accruals [Abstract] | |||
Royalties | $ 148.9 | $ 195.4 | $ 238.4 |
Deferred revenue | 112.1 | 111.3 | 132.2 |
Dividends | 97.1 | 96.7 | 96.7 |
Cancellation charges | 83.0 | 89.2 | 65.5 |
Other taxes | 63.8 | 82.1 | 69.2 |
Payroll and management incentives | 62.9 | 66.7 | 98.4 |
General vendor accruals | 57.9 | 44.3 | 44.1 |
Severance | 55.5 | 100.3 | 39.1 |
Advertising | 52.3 | 53.2 | 103.5 |
Interest | 38.1 | 31.0 | 38.7 |
Freight | 32.3 | 28.5 | 47.7 |
Participations and residuals | 30.4 | 300.2 | 266.7 |
Lease liability - current | $ 28.1 | $ 39.6 | $ 40.4 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Total accrued liabilities | Total accrued liabilities | Total accrued liabilities |
Accrued income taxes | $ 27.3 | $ 44.8 | $ 58.6 |
Defined contributions plans | 27.3 | 30.0 | 26.7 |
Accrued expenses - IIP & IIC | 2.7 | 80.8 | 51.9 |
Production payables | 0.9 | 23.8 | 23.8 |
Other | 64.8 | 88.9 | 95.9 |
Total accrued liabilities | 985.4 | 1,506.8 | 1,537.5 |
Liabilities held for sale | $ 607.4 | $ 0.0 | $ 15.0 |
Financial Instruments - Schedule of Production Financing Loans (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Oct. 01, 2023 |
Oct. 01, 2023 |
Dec. 25, 2022 |
Sep. 25, 2022 |
|
Debt Disclosure [Abstract] | ||||
Production financing | $ 0.0 | $ 0.0 | $ 195.6 | $ 184.9 |
Production Financing Loans [Roll Forward] | ||||
Production financing loans, beginning balance | 195.6 | |||
Drawdowns | 117.9 | |||
Repayments | (162.0) | |||
Reclass to Liabilities held for sale | (150.9) | (150.9) | ||
Foreign exchange differences | (0.6) | |||
Production financing loans, ending balance | $ 0.0 | $ 0.0 |
Investments in Productions and Investments in Acquired Content Rights - Program Production Costs (Details) - USD ($) $ in Millions |
3 Months Ended | ||
---|---|---|---|
Oct. 01, 2023 |
Dec. 25, 2022 |
Sep. 25, 2022 |
|
Individual Monetization | |||
Released, net of amortization (2) | $ 78.3 | $ 584.5 | $ 486.3 |
Completed and not released | 0.0 | 23.3 | 1.2 |
In production | 27.2 | 199.4 | 176.9 |
Pre-production | 18.4 | 41.3 | 109.7 |
Individual monetization, costs | 123.9 | 848.5 | 774.1 |
Film/TV Group Monetization | |||
Released, net of amortization | 14.6 | 25.8 | 24.5 |
In production | 33.2 | 22.2 | 24.5 |
Total film costs | 47.8 | 48.0 | 49.0 |
Investment in Other Programming | |||
Released, net of amortization | 16.5 | 9.8 | 12.9 |
Completed and not released | 0.0 | 0.0 | 0.3 |
In production | 6.8 | 11.8 | 8.4 |
Pre-production | 1.5 | 3.3 | 1.5 |
Other programming costs | 24.8 | 24.9 | 23.1 |
Total Program Investments | 196.5 | $ 921.4 | $ 846.2 |
Productions and investments in acquired | 734.5 | ||
Film production cost impairment charges | $ 25.0 |
Investments in Productions and Investments in Acquired Content Rights - Program Costs Amortization (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Oct. 01, 2023 |
Sep. 25, 2022 |
Oct. 01, 2023 |
Sep. 25, 2022 |
|
Product Information [Line Items] | ||||
Program cost amortization | $ 68.4 | $ 146.5 | $ 325.3 | $ 365.7 |
eOne | ||||
Product Information [Line Items] | ||||
Program cost amortization | 325.3 | |||
eOne | Investment in Production | ||||
Product Information [Line Items] | ||||
Program cost amortization | 294.5 | |||
eOne | Investment in Content | ||||
Product Information [Line Items] | ||||
Program cost amortization | $ 30.8 |
Income Taxes (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Oct. 01, 2023 |
Jul. 02, 2023 |
Sep. 25, 2022 |
Oct. 01, 2023 |
Sep. 25, 2022 |
|
Income Tax Disclosure [Abstract] | |||||
Effective income tax rate | 8.00% | 22.10% | |||
Impairment of goodwill | $ 0.0 | $ 231.2 | $ 0.0 | $ 231.2 | $ 0.0 |
Discrete tax benefit | 113.3 | 6.7 | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Loss on assets held for sale | 473.0 | $ 23.1 | 473.0 | $ 23.1 | |
Disposal Group, Held-for-sale | eOne Film and TV | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Loss on assets held for sale | $ 473.0 | $ 473.0 |
Fair Value of Financial Instruments - Fair Value Hierarchy (Details) - USD ($) $ in Millions |
Oct. 01, 2023 |
Dec. 25, 2022 |
Sep. 25, 2022 |
---|---|---|---|
Assets: | |||
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Prepaid expenses and other current assets, Assets, Noncurrent, Excluding Property, Plant, And Equipment And Finance Lease Right-of-Use Asset, After Accumulated Depreciation And Amortization | Prepaid expenses and other current assets, Assets, Noncurrent, Excluding Property, Plant, And Equipment And Finance Lease Right-of-Use Asset, After Accumulated Depreciation And Amortization | Prepaid expenses and other current assets, Assets, Noncurrent, Excluding Property, Plant, And Equipment And Finance Lease Right-of-Use Asset, After Accumulated Depreciation And Amortization |
Fair value, recurring | |||
Assets: | |||
Available-for-sale securities | $ 1.2 | $ 1.7 | $ 0.0 |
Derivatives | 8.3 | 7.9 | 38.8 |
Total assets | 9.5 | 9.6 | 38.8 |
Liabilities: | |||
Derivatives | 2.1 | 2.9 | 0.4 |
Option agreement | 1.7 | 1.7 | 1.7 |
Total liabilities | 3.8 | 4.6 | 2.1 |
Fair value, recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Assets: | |||
Available-for-sale securities | 1.2 | 1.7 | 0.0 |
Derivatives | 0.0 | 0.0 | 0.0 |
Total assets | 1.2 | 1.7 | 0.0 |
Liabilities: | |||
Derivatives | 0.0 | 0.0 | 0.0 |
Option agreement | 0.0 | 0.0 | 0.0 |
Total liabilities | 0.0 | 0.0 | 0.0 |
Fair value, recurring | Significant Other Observable Inputs (Level 2) | |||
Assets: | |||
Available-for-sale securities | 0.0 | 0.0 | 0.0 |
Derivatives | 8.3 | 7.9 | 38.8 |
Total assets | 8.3 | 7.9 | 38.8 |
Liabilities: | |||
Derivatives | 2.1 | 2.9 | 0.4 |
Option agreement | 0.0 | 0.0 | 0.0 |
Total liabilities | 2.1 | 2.9 | 0.4 |
Fair value, recurring | Significant Unobservable Inputs (Level 3) | |||
Assets: | |||
Available-for-sale securities | 0.0 | 0.0 | 0.0 |
Derivatives | 0.0 | 0.0 | 0.0 |
Total assets | 0.0 | 0.0 | 0.0 |
Liabilities: | |||
Derivatives | 0.0 | 0.0 | 0.0 |
Option agreement | 1.7 | 1.7 | 1.7 |
Total liabilities | $ 1.7 | $ 1.7 | $ 1.7 |
Fair Value of Financial Instruments - Reconciliation of Level 3 Fair value (Details) - USD ($) $ in Millions |
Oct. 01, 2023 |
Dec. 25, 2022 |
Sep. 25, 2022 |
---|---|---|---|
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Balance at beginning of year | $ (1.7) | $ (1.7) | $ (1.7) |
Balance at end of third quarter | $ (1.7) | $ (1.7) | $ (1.7) |
Derivative Financial Instruments - Schedule of Cash Flow Hedging Instruments (Details) - Designated as Hedging Instrument - Cash Flow Hedging - USD ($) $ in Millions |
Oct. 01, 2023 |
Dec. 25, 2022 |
Sep. 25, 2022 |
---|---|---|---|
Derivative [Line Items] | |||
Notional Amount | $ 378.3 | $ 382.3 | $ 353.3 |
Fair Value | 3.3 | 0.0 | 25.0 |
Inventory purchases | |||
Derivative [Line Items] | |||
Notional Amount | 194.4 | 166.3 | 144.7 |
Fair Value | 3.4 | (2.7) | 12.6 |
Sales | |||
Derivative [Line Items] | |||
Notional Amount | 113.4 | 99.2 | 101.9 |
Fair Value | 0.8 | 1.2 | 5.2 |
Production financing and other | |||
Derivative [Line Items] | |||
Notional Amount | 70.5 | 116.8 | 106.7 |
Fair Value | $ (0.9) | $ 1.5 | $ 7.2 |
Derivative Financial Instruments - Schedule of Foreign Currency Forward Contracts Designated as Cash Flow Hedges (Details) - USD ($) $ in Millions |
Oct. 01, 2023 |
Dec. 25, 2022 |
Sep. 25, 2022 |
---|---|---|---|
Derivatives, Fair Value [Line Items] | |||
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Prepaid expenses and other current assets, Assets, Noncurrent, Excluding Property, Plant, And Equipment And Finance Lease Right-of-Use Asset, After Accumulated Depreciation And Amortization | Prepaid expenses and other current assets, Assets, Noncurrent, Excluding Property, Plant, And Equipment And Finance Lease Right-of-Use Asset, After Accumulated Depreciation And Amortization | Prepaid expenses and other current assets, Assets, Noncurrent, Excluding Property, Plant, And Equipment And Finance Lease Right-of-Use Asset, After Accumulated Depreciation And Amortization |
Designated as Hedging Instrument | Prepaid expenses and other current assets | |||
Derivatives, Fair Value [Line Items] | |||
Unrealized gains | $ 5.9 | $ 4.3 | $ 24.5 |
Unrealized losses | (2.0) | (1.8) | (1.2) |
Net unrealized gains | 3.9 | 2.5 | 23.3 |
Designated as Hedging Instrument | Other assets | |||
Derivatives, Fair Value [Line Items] | |||
Unrealized gains | 1.5 | 0.3 | 1.9 |
Unrealized losses | (0.1) | 0.0 | (0.1) |
Net unrealized gains | 1.4 | 0.3 | 1.8 |
Designated as Hedging Instrument | Accrued liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Unrealized gains | 0.4 | 1.6 | 0.9 |
Unrealized losses | (2.4) | (4.4) | (1.0) |
Net unrealized gains | $ (2.0) | $ (2.8) | $ (0.1) |
Derivative Financial Instruments - Schedule of Net Gains (Losses) on Cash Flow Hedges Activities (Details) - Cash Flow Hedging - Foreign Exchange Forward - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Oct. 01, 2023 |
Sep. 25, 2022 |
Oct. 01, 2023 |
Sep. 25, 2022 |
|
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net realized (losses) gains | $ (2.9) | $ 6.7 | $ (2.0) | $ 8.4 |
Cost of sales | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net realized (losses) gains | (1.8) | 5.9 | (0.5) | 8.5 |
Net revenues | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net realized (losses) gains | 0.1 | 1.0 | 0.2 | 0.8 |
Other | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net realized (losses) gains | $ (1.2) | $ (0.2) | $ (1.7) | $ (0.9) |
Derivative Financial Instruments - Narrative (Details) - Foreign Exchange Forward - Fair Value Hedging - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Oct. 01, 2023 |
Sep. 25, 2022 |
Oct. 01, 2023 |
Sep. 25, 2022 |
Dec. 25, 2022 |
|
Derivative [Line Items] | |||||
Net gains (losses) on derivative | $ 15.1 | $ 28.7 | $ 26.4 | $ 49.2 | |
Not Designated as Hedging Instrument | |||||
Derivative [Line Items] | |||||
Notional amount | $ 807.5 | $ 601.3 | $ 807.5 | $ 601.3 | $ 765.6 |
Derivative Financial Instruments - Fair Values of Undesignated Derivative Financial Instruments (Details) - Foreign Exchange Forward - Not Designated as Hedging Instrument - USD ($) $ in Millions |
Oct. 01, 2023 |
Dec. 25, 2022 |
Sep. 25, 2022 |
---|---|---|---|
Derivatives, Fair Value [Line Items] | |||
Net unrealized gains | $ 2.9 | $ 5.0 | $ 13.4 |
Prepaid expenses and other current assets | |||
Derivatives, Fair Value [Line Items] | |||
Unrealized gains | 10.7 | 10.9 | 19.6 |
Unrealized losses | (7.7) | (5.9) | (6.0) |
Net unrealized gains | 3.0 | 5.0 | 13.6 |
Accrued liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Unrealized losses | (0.1) | 0.0 | (0.2) |
Net unrealized gains | $ (0.1) | $ 0.0 | $ (0.2) |
Leases - Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Oct. 01, 2023 |
Sep. 25, 2022 |
Oct. 01, 2023 |
Sep. 25, 2022 |
|
Lessee, Lease, Description [Line Items] | ||||
Operating lease expense | $ 21.7 | $ 24.2 | $ 70.0 | $ 67.4 |
Minimum | ||||
Lessee, Lease, Description [Line Items] | ||||
Remaining lease terms | 1 year | 1 year | ||
Maximum | ||||
Lessee, Lease, Description [Line Items] | ||||
Remaining lease terms | 15 years | 15 years |
Leases - Lease Cost (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Oct. 01, 2023 |
Sep. 25, 2022 |
Oct. 01, 2023 |
Sep. 25, 2022 |
|
Leases [Abstract] | ||||
Operating cash flows from operating leases | $ 11.5 | $ 12.7 | $ 37.3 | $ 39.4 |
Right-of-use assets obtained in exchange for lease obligations, operating leases net of lease modifications | $ 9.2 | $ 0.4 | $ 76.9 | $ 0.0 |
Weighted average remaining lease term, operating leases | 7 years 4 months 24 days | 4 years 6 months | 7 years 4 months 24 days | 4 years 6 months |
Weighted average discount rate, operating leases | 3.80% | 3.40% | 3.80% | 3.40% |
Segment Reporting - Narrative (Details) $ in Millions |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Oct. 01, 2023
USD ($)
|
Sep. 25, 2022
USD ($)
|
Jun. 26, 2022
USD ($)
|
Oct. 01, 2023
USD ($)
segment
|
Sep. 25, 2022
USD ($)
|
|
Segment Reporting [Abstract] | |||||
Number of reportable segments | segment | 3 | ||||
Revenue from External Customer [Line Items] | |||||
Net revenues | $ 1,503.4 | $ 1,675.9 | $ 3,714.4 | $ 4,178.2 | |
Total Gaming | |||||
Revenue from External Customer [Line Items] | |||||
Net revenues | 628.0 | $ 508.6 | 1,505.7 | 1,415.7 | |
MAGIC: THE GATHERING | |||||
Revenue from External Customer [Line Items] | |||||
Net revenues | $ 287.4 | $ 239.3 | $ 827.5 | $ 802.0 |
Restructuring Actions - Additional Information (Details) position in Thousands, $ in Millions |
1 Months Ended | 9 Months Ended |
---|---|---|
Jan. 31, 2023
position
|
Oct. 01, 2023
USD ($)
|
|
2018 And 2020 Restructuring Actions | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring reserve | $ 6.7 | |
Payments for restructuring | $ 2.3 | |
Blueprint 2.0 | ||
Restructuring Cost and Reserve [Line Items] | ||
Number of positions eliminated | position | 1 | |
Number of positions eliminated, percent | 15.00% |
Restructuring Actions - Schedule of Restructuring Action (Details) - Operational Excellence $ in Millions |
9 Months Ended |
---|---|
Oct. 01, 2023
USD ($)
| |
Restructuring Reserve [Roll Forward] | |
Beginning balance | $ 84.9 |
Charges | 0.0 |
Payments | (33.9) |
Ending balance | 51.0 |
Severance | |
Restructuring Reserve [Roll Forward] | |
Beginning balance | 84.9 |
Charges | 0.0 |
Payments | (33.9) |
Ending balance | $ 51.0 |
Restructuring Actions - Schedule of Restructuring Charges (Details) - Operational Excellence $ in Millions |
Oct. 01, 2023
USD ($)
|
---|---|
Restructuring Cost and Reserve [Line Items] | |
Charges incurred to date | $ 94.1 |
Estimated charges to be incurred on approved initiatives | 0.0 |
Total expected charges on approved initiatives | 94.1 |
Severance | |
Restructuring Cost and Reserve [Line Items] | |
Charges incurred to date | 94.1 |
Estimated charges to be incurred on approved initiatives | 0.0 |
Total expected charges on approved initiatives | $ 94.1 |
Assets Held for Sale - Additional Information (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Oct. 01, 2023 |
Sep. 25, 2022 |
Oct. 01, 2023 |
Sep. 25, 2022 |
|
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Pre-tax non-cash loss on assets held for sale | $ 473.0 | $ 23.1 | $ 473.0 | $ 23.1 |
eOne Film and TV | Disposal Group, Held-for-sale | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Pre-tax non-cash loss on assets held for sale | $ 473.0 | $ 473.0 |
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