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Segment Reporting (Tables)

9 Months Ended

Sep. 28, 2025

Schedule of Segment Reporting Information, by Segment

Information by segment and a reconciliation to reported amounts for the three months ended September 28, 2025 are as follows:


	Wizards of the Coast and Digital Gaming		Consumer Products		Entertainment		Corporate and Other		Total
Revenues	$	631.3	$	867.3	$	30.9	$	60.6	$	1,590.1
Less: Intersegment revenue	59.3		70.4		12.3		60.6		202.6
Total net revenues	572.0		796.9		18.6		—		1,387.5
Cost of sales	99.4		312.8		1.7		0.4		414.3
Program cost amortization	—		—		7.4		—		7.4
Royalties	36.0		87.1		(10.8)		2.0		114.3
Advertising	43.4		64.6		0.2		0.1		108.3
Amortization of intangible assets	2.2		10.8		4.7		(0.5)		17.2
Distribution (1)	13.5		41.3		—		0.2		55.0
Managed expense (2)	126.0		200.2		7.9		(4.2)		329.9
Operating profit	$	251.5	$	80.1	$	7.5	$	2.0	$	341.1

Reconciliation to Earnings before income taxes:
Interest expense									40.8
Interest income									(6.3)
Other expense, net									1.4
Earnings before income taxes									$	305.2

(1) Distribution expenses consist of shipping and warehousing expense and is included in Selling, distribution and administration in the Consolidated Statement of Operations.

(2) Managed expenses consist of product development and selling and administrative expense. Product development is included in Product Development in the Consolidated Statement of Operations. Selling and administrative expense is included in Selling, distribution and administration in the Consolidated Statement of Operations.

Information by segment and a reconciliation to reported amounts for the three months ended September 29, 2024 are as follows:


	Wizards of the Coast and Digital Gaming		Consumer Products		Entertainment		Corporate and Other		Total
Revenues	$	450.0	$	935.7	$	34.4	$	51.0	$	1,471.1
Less: Intersegment revenue	46.0		75.6		17.2		51.0		189.8
Total net revenues	404.0		860.1		17.2		—		1,281.3
Cost of sales	72.0		305.7		1.5		(0.3)		378.9
Program cost amortization	—		—		7.9		—		7.9
Royalties	9.5		101.9		(15.7)		2.3		98.0
Advertising	22.2		78.9		0.5		0.3		101.9
Amortization of intangible assets	2.1		11.2		3.8		—		17.1
Distribution (1)	9.3		48.5		—		0.9		58.7
Managed expense (2)	107.7		192.9		9.4		6.9		316.9
Operating profit (loss)	$	181.2	$	121.0	$	9.8	$	(10.1)	$	301.9

Reconciliation to Earnings before income taxes:
Interest expense									46.2
Interest income									(14.7)
Other income, net									(19.9)
Earnings before income taxes									$	290.3

(1) Distribution expenses consist of shipping and warehousing expense and is included in Selling, distribution and administration in the Consolidated Statement of Operations.

Information by segment and a reconciliation to reported amounts for the nine months ended September 28, 2025 are as follows:


	Wizards of the Coast and Digital Gaming		Consumer Products		Entertainment		Corporate and Other		Total
Revenues	$	1,708.2	$	1,794.1	$	97.0	$	130.6	$	3,729.9
Less: Intersegment revenue	151.7		156.5		35.7		130.6		474.5
Total net revenues	1,556.5		1,637.6		61.3		—		3,255.4
Cost of sales	251.4		588.1		4.4		0.2		844.1
Program cost amortization	—		—		21.0		—		21.0
Royalties	86.8		194.5		(30.7)		5.2		255.8
Advertising	96.5		131.7		0.4		(1.3)		227.3
Amortization of intangible assets	6.4		31.1		14.3		(0.4)		51.4
Distribution (1)	33.5		106.4		—		0.4		140.3
Managed expense (2)	358.6		1,579.2		49.3		14.8		2,001.9
Operating profit (loss)	$	723.3	$	(993.4)	$	2.6	$	(18.9)	$	(286.4)

Reconciliation to Loss before income taxes:
Interest expense									123.0
Interest income									(20.6)
Other income, net									(15.9)
Loss before income taxes									$	(372.9)

(1) Distribution expenses consist of shipping and warehousing expense and is included in Selling, distribution and administration in the Consolidated Statement of Operations.

(2) Managed expenses consist of product development, selling and administrative expense, impairment of goodwill, and loss on disposal of business. Product development is included in Product Development in the Consolidated Statement of Operations. Selling and administrative expense is included in Selling, distribution and administration in the Consolidated Statement of Operations. Impairment of goodwill is included in the Impairment of goodwill in the Consolidated Statement of Operations. Loss on disposal of business is included in Loss on disposal of business in the Consolidated Statement of Operations. Managed expenses for the Consumer Products segment included a $1,021.9 million non-cash loss associated with the impairment of the reporting units within the Consumer Products segment. See Note 5, Goodwill, to the consolidated financial statements for further information. Managed expenses for the Entertainment segment included a $25.0 million non-cash loss associated with the sale of the eOne Film and TV business.

Information by segment and a reconciliation to reported amounts for the nine months ended September 29, 2024 are as follows:


	Wizards of the Coast and Digital Gaming		Consumer Products		Entertainment		Corporate and Other		Total
Revenues	$	1,292.2	$	1,977.2	$	101.7	$	114.4	$	3,485.5
Less: Intersegment revenue	119.9		179.6		37.7		114.4		451.6
Total net revenues	1,172.3		1,797.6		64.0		—		3,033.9
Cost of sales (1)	201.1		641.9		4.8		(27.0)		820.8
Program cost amortization	—		—		24.5		—		24.5
Royalties	30.7		211.3		(40.9)		3.1		204.2
Advertising	66.7		144.5		0.8		1.8		213.8
Amortization of intangible assets	6.2		33.4		11.4		0.2		51.2
Distribution (2)	23.7		121.1		—		0.9		145.7
Managed expense (1) (3)	292.8		580.6		48.8		21.3		943.5
Operating profit (loss)	$	551.1	$	64.8	$	14.6	$	(0.3)	$	630.2

Reconciliation to Earnings before income taxes:
Interest expense									127.7
Interest income									(36.0)
Other income, net									(15.7)
Earnings before income taxes									$	554.2

(1) During the nine months ended September 29, 2024, the Company recorded three non-recurring prior year adjustments: (i) a $31.1 million expense related to historical environmental liabilities that was recorded in managed expense, (ii) a $26.7 million benefit related to over-accrual of vendor commitment liabilities that was recorded in Cost of sales, and (iii) an $18.1 million benefit related to the reversal of stock compensation expense for the Company's performance stock awards that was recorded in managed expense within Corporate and Other. See Note 1, Basis of Presentation, to the consolidated financial statements for further information. Items (i) and (ii) originally related to the Consumer Products segment; however, because the non-recurring nature of these adjustments are related to historical periods and not associated with the on-going future operations of the Consumer Products segment, the Company recorded the error corrections within Corporate and Other.

(2) Distribution expenses consist of shipping and warehousing expense and is included in Selling, distribution and administration in the Consolidated Statement of Operations.

(3) Managed expenses consist of product development, selling and administrative expense, and loss on disposal of business. Product development is included in Product Development in the Consolidated Statement of Operations. Selling and administrative expense is included in Selling, distribution and administration in the Consolidated Statement of Operations. Loss on disposal of business is included in Loss on disposal of business in the Consolidated Statement of Operations. Managed expenses for the Entertainment segment included a $24.4 million loss associated with the sale of the eOne Film and TV business.

Schedule of Total Assets and Other Supplemental Information by Segment

Total assets information by segments is as follows:


	September 28, 2025		September 29, 2024		December 29, 2024
Total Assets
Wizards of the Coast and Digital Gaming	$	7,394.2	$	5,479.9	$	5,778.4
Consumer Products	9,100.8		7,558.8		7,785.2
Entertainment	1,429.9		2,884.7		2,857.8
Corporate and Other (1)	(12,403.1)		(8,693.5)		(10,081.1)
Total	$	5,521.8	$	7,229.9	$	6,340.3

(1) Corporate and Other consists of investments in subsidiary and intercompany receivables.

Other supplemental information by segments are as follows:


	Three Months Ended				Nine Months Ended
	September 28, 2025		September 29, 2024		September 28, 2025		September 29, 2024
Depreciation and intangible asset amortization (1)
Wizards of the Coast and Digital Gaming	$	4.7	$	4.5	$	13.6	$	13.1
Consumer Products	29.6		31.6		72.6		81.8
Entertainment	5.2		4.1		15.5		12.5
Corporate and Other	1.3		1.3		5.4		17.8
Total	$	40.8	$	41.5	$	107.1	$	125.2
Additions to property, plant and equipment
Wizards of the Coast and Digital Gaming	$	3.3	$	2.1	$	10.4	$	17.1
Consumer Products	14.2		13.8		36.5		38.4
Entertainment	0.1		—		0.1		—
Corporate and Other	2.1		2.5		2.6		12.4
Total	$	19.7	$	18.4	$	49.6	$	67.9

(1) The amounts of depreciation disclosed by reportable segments are included within cost of sales, distribution and managed expense. Intangible asset amortization is included within amortization of intangible assets.