Revenue Recognition

9 Months Ended

Sep. 28, 2025

Revenue from Contract with Customer [Abstract]

Revenue Recognition

Revenue Recognition

Revenue is recognized when control of the promised goods, functional intellectual property or production is transferred to the customers or licensees, in an amount that reflects the consideration the Company expects to be entitled to in exchange for transferring those goods. The Company accounts for a contract when it has approval and commitment from both parties, the rights of the parties are identified, payment terms are identified, the contract has commercial substance, and collectability of consideration is probable. The majority of the Company’s revenues are derived from sales of finished products to customers. See Note 1, Summary of Significant Accounting Policies, of the Company's 2024 Annual Report for the Company's revenue recognition accounting policy.

Contract Assets and Liabilities

In the ordinary course of business, the Company enters into arrangements that result in the recognition of contract assets and contract liabilities. The opening and closing balances of contract assets and contract liabilities are as follows:

	September 28, 2025		September 29, 2024
Assets
Balance at beginning of the year	$	241.4	$	213.3
Ending Balance	$	266.9	$	242.5
Liabilities
Balance at beginning of the year	$	236.8	$	230.8
Ending Balance	$	213.5	$	256.9

For the nine months ended September 28, 2025, the Company recognized revenue of $193.2 million that was included in the December 29, 2024 contract liability balance. For the nine months ended September 29, 2024, the Company recognized revenue of $53.1 million that was included in the December 31, 2023 contract liability balance.

Unsatisfied performance obligations

As of September 28, 2025, revenue for unsatisfied performance obligations expected to be recognized in the future is $989.4 million, primarily for intellectual property to be made available in the future under existing agreements with merchandise and co-branding licensees and television station affiliates. Of this amount, we expect to recognize approximately $113.8 million in the remainder of 2025, $200.8 million in 2026, $151.6 million in 2027, and $523.2 million thereafter. These amounts include only fixed consideration or minimum guarantees and do not include amounts related to (i) contracts with an original expected term of one year or less or (ii) licenses of intellectual property that are solely based on the sales of the licensee.

Accounts Receivable and Allowance for Credit Losses

The Company’s balance for accounts receivable on the Consolidated Balance Sheets as of September 28, 2025 and September 29, 2024 are primarily from contracts with customers. A summary of the activity in the allowance for credit losses are as follows:

	September 28, 2025		September 29, 2024
Balance at beginning of the year	$	25.8	$	12.7
Provisions/charges to income	29.7		4.6
Amounts charged off and other	(2.6)		(0.5)
Foreign currency impact	0.8		(0.6)
Ending balance	$	53.7	$	16.2

Disaggregation of revenues

The Company disaggregates its revenues from contracts with customers by reportable segment: Wizards of the Coast and Digital Gaming, Consumer Products, and Entertainment. The Company further disaggregates revenues within its Wizards of the Coast and Digital Gaming segment by category: Tabletop Gaming and Digital and Licensed Gaming; within its Consumer Products segment by major geographic region: North America, Europe, Latin America, and Asia Pacific; and within its Entertainment segment by category: Film & TV and Family Brands. Finally, the Company disaggregates its revenues by brand portfolio into three brand categories: Grow Brands, Optimize Brands, and Reinvent Brands. We believe these collectively depict how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors.

The following table represents consolidated Wizards of the Coast and Digital Gaming segment net revenues by category:

	Three Months Ended				Nine Months Ended
	September 28, 2025		September 29, 2024		September 28, 2025		September 29, 2024
Tabletop Gaming	$	441.8	$	296.8	$	1,191.9	$	832.6
Digital and Licensed Gaming	130.2		107.2		364.6		339.7
Net revenues	$	572.0	$	404.0	$	1,556.5	$	1,172.3

The following table represents consolidated Consumer Products segment net revenues by major geographic region:

	Three Months Ended				Nine Months Ended
	September 28, 2025		September 29, 2024		September 28, 2025		September 29, 2024
North America	$	483.0	$	526.8	$	950.4	$	1,072.0
Europe	181.1		162.3		361.8		341.8
Asia Pacific	61.2		81.9		178.6		193.3
Latin America	71.6		89.1		146.8		190.5
Net revenues	$	796.9	$	860.1	$	1,637.6	$	1,797.6

The following table represents consolidated Entertainment segment net revenues by category:

	Three Months Ended				Nine Months Ended
	September 28, 2025		September 29, 2024		September 28, 2025		September 29, 2024
Film and TV	$	1.9	$	1.6	$	7.7	$	3.4
Family Brands	16.7		15.6		53.6		60.6
Net revenues	$	18.6	$	17.2	$	61.3	$	64.0

The following table represents consolidated net revenues by brand portfolio:

	Three Months Ended				Nine Months Ended
	September 28, 2025		September 29, 2024		September 28, 2025		September 29, 2024
Grow Brands	$	1,006.0	$	839.0	$	2,391.6	$	2,065.0
Optimize Brands	221.9		223.2		509.5		530.0
Reinvent Brands	159.6		219.1		354.3		438.9
Net revenues	$	1,387.5	$	1,281.3	$	3,255.4	$	3,033.9