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[x]QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
| ☒ | 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
| ☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
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| Rhode Island | 05-0155090 | ||
| (State or other jurisdiction of | (I.R.S. Employer Identification No.) | ||
| 1027 Newport Avenue | ||
Pawtucket, | Rhode Island | 02861 |
| (Address of Principal Executive | (Zip Code) | |
| Trading Symbol(s) | Name of each exchange on which registered |
| HAS | The NASDAQ Global Select Market |
x Non-accelerated filer ☐ Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes PART I. FINANCIAL INFORMATION HASBRO, INC. AND SUBSIDIARIES Consolidated Statements of Operations (Thousands of Dollars Except Per Share Data) (Unaudited) Quarter Ended March 31, April 1, 2019 2018 Net revenues $ 732,510 716,341 Costs and expenses: Cost of sales 259,987 255,187 Royalties 59,888 69,652 Product development 56,260 57,384 Advertising 76,604 68,016 Amortization of intangibles 11,816 6,478 Program production cost amortization 6,575 12,034 Selling, distribution and administration 225,253 328,009 Total costs and expenses 696,383 796,760 Operating profit (loss) 36,127 (80,419) Non-operating (income) expense: Interest expense 22,314 22,809 Interest income (7,682) (6,248) Other income, net (8,100) (8,592) Total non-operating expense, net 6,532 7,969 Earnings (loss) before income taxes 29,595 (88,388) Income tax expense 2,868 24,104 Net earnings (loss) $ 26,727 (112,492) Net earnings (loss) per common share: Basic $ 0.21 (0.90) Diluted $ 0.21 (0.90) Cash dividends declared per common share $ 0.68 0.63 See accompanying condensed notes to consolidated financial statements. HASBRO, INC. AND SUBSIDIARIES Consolidated Statements of Comprehensive Earnings (Loss) (Thousands of Dollars) (Unaudited) Quarter Ended March 31, April 1, 2019 2018 Net earnings (loss) $ 26,727 (112,492) Other comprehensive earnings (loss): Foreign currency translation adjustments 6,993 12,829 Unrealized holding gains (losses) on available-for-sale securities, 265 (143) net of tax Net gains (losses) on cash flow hedging activities, net of tax 6,592 (25,270) Changes in unrecognized pension amounts, net of tax - (26,058) Reclassifications to earnings (loss), net of tax: Net (gains) losses on cash flow hedging activities (2,814) 5,355 Amortization of unrecognized pension and postretirement amounts 1,139 1,820 Total other comprehensive earnings (loss), net of tax 12,175 (31,467) Comprehensive earnings (loss) $ 38,902 (143,959) See accompanying condensed notes to consolidated financial statements. HASBRO, INC. AND SUBSIDIARIES Consolidated Statements of Cash Flows (Thousands of Dollars) (Unaudited) Three Months Ended March 31, April 1, 2019 2018 Cash flows from operating activities: Net earnings (loss) $ 26,727 (112,492) Adjustments to reconcile net earnings (loss) to net cash provided by operating activities: Depreciation of plant and equipment 27,028 26,221 Amortization of intangibles 11,816 6,478 Program production cost amortization 6,575 12,034 Deferred income taxes 11,795 (16,437) Stock-based compensation 5,285 10,291 Other non-cash items (3,503) (4,971) Change in operating assets and liabilities net of acquired balances: Decrease in accounts receivable 558,888 808,367 Increase in inventories (50,109) (76,516) Increase in prepaid expenses and other current assets (33,934) (78,540) Program production costs (17,728) (11,398) Decrease in accounts payable and accrued liabilities (273,955) (297,669) Net deemed repatriation tax - 75,805 Other (4,391) (23,434) Net cash provided by operating activities 264,494 317,739 Cash flows from investing activities: Additions to property, plant and equipment (25,201) (28,235) Other (1,800) 2,007 Net cash utilized by investing activities (27,001) (26,228) Cash flows from financing activities: Net proceeds from (repayments of) other short-term borrowings 3,419 (133,698) Purchases of common stock (47,479) (38,126) Stock-based compensation transactions 2,335 19,518 Dividends paid (79,274) (70,781) Payments related to tax withholding for share-based compensation (11,880) (52,637) Deferred acquisition payments (87,500) - Net cash utilized by financing activities (220,379) (275,724) Effect of exchange rate changes on cash (2,851) 1,923 Increase in cash and cash equivalents 14,263 17,710 Cash and cash equivalents at beginning of year 1,182,371 1,581,234 Cash and cash equivalents at end of period $ 1,196,634 1,598,944 Supplemental information Cash paid during the period for: Interest $ 28,576 28,699 Income taxes $ 13,019 42,481 See accompanying condensed notes to consolidated financial statements. HASBRO, INC. AND SUBSIDIARIES Consolidated Statements of Shareholders' Equity (Thousands of Dollars) Accumulated Other Total Common Additional Retained Comprehensive Treasury Shareholders' Stock Paid-in Capital Earnings Loss Stock Equity Balance, December 31, 2017 $ 104,847 1,050,605 4,260,222 (239,425) (3,346,292) $ 1,829,957 Net earnings (loss) - - (112,492) - - (112,492) Impact of adoption of ASU 2018-02 - - 21,503 (21,503) - - Other comprehensive loss - - - (31,467) - (31,467) Stock-based compensation transactions - (7,528) - - (15) (7,543) Purchases of common stock - - - - (38,791) (38,791) Stock-based compensation expense - 10,291 - - - 10,291 Dividends declared - - (78,596) - - (78,596) Balance, April 1, 2018 $ 104,847 1,053,368 4,090,637 (292,395) (3,385,098) $ 1,571,359 Balance, December 30, 2018 $ 104,847 1,275,059 4,184,374 (294,514) (3,515,280) $ 1,754,486 Net earnings - - 26,727 - - 26,727 Other comprehensive earnings - - - 12,175 - 12,175 Stock-based compensation transactions - (11,114) - - 1,569 (9,545) Purchases of common stock - - - - (49,182) (49,182) Stock-based compensation expense - 5,285 - - - 5,285 Dividends declared - - (85,415) - - (85,415) Balance, March 31, 2019 $ 104,847 1,269,230 4,125,686 (282,339) (3,562,893) $ 1,654,531 See accompanying notes to consolidated financial statements. 2019 2018 Quarter Basic Diluted Basic Diluted Net earnings (loss) $ 26,727 26,727 (112,492) (112,492) Average shares outstanding 126,287 126,287 125,073 125,073 Effect of dilutive securities: Options and other share-based awards - 529 - - Equivalent Shares 126,287 126,816 125,073 125,073 Net earnings (loss) per common share $ 0.21 0.21 (0.90) (0.90) Quarter Ended March 31, April 1, 2019 2018 Other comprehensive earnings (loss), tax effect: Tax (expense) benefit on unrealized holding (gains) losses $ (77) 41 Tax (expense) benefit on cash flow hedging activities (3) 5,980 Tax benefit on changes in unrecognized pension amounts - 7,565 Reclassifications to earnings, tax effect: Tax expense (benefit) on cash flow hedging activities 346 (794) Tax benefit on unrecognized pension and postretirement amounts reclassified to the consolidated statements of operations (331) (528) Total tax effect on other comprehensive earnings (loss) $ (65) 12,264 Unrealized Holding Gains Total Gains (Losses) on Foreign Accumulated Pension and (Losses) on Available- Currency Other Postretirement Derivative for-Sale Translation Comprehensive Amounts Instruments Securities Adjustments Loss 2019 Balance at December 30, 2018 $ (143,134) 1,549 (744) (152,185) (294,514) Current period other comprehensive earnings (loss) 1,139 3,778 265 6,993 12,175 Balance at March 31, 2019 $ (141,995) 5,327 (479) (145,192) (282,339) 2018 Balance at December 31, 2017 $ (110,971) (32,827) 1,034 (96,661) (239,425) Adoption of ASU 2018-02 (18,065) (3,660) 222 - (21,503) Current period other comprehensive earnings (loss) (24,238) (19,915) (143) 12,829 (31,467) Balance at April 1, 2018 $ (153,274) (56,402) 1,113 (83,832) (292,395) March 31, 2019 April 1, 2018 December 30, 2018 Carrying Fair Carrying Fair Carrying Fair Cost Value Cost Value Cost Value 6.35% Notes Due 2040 $ 500,000 548,200 500,000 585,400 500,000 535,000 3.50% Notes Due 2027 500,000 479,450 500,000 468,000 500,000 457,350 5.10% Notes Due 2044 300,000 285,990 300,000 299,460 300,000 272,640 3.15% Notes Due 2021 300,000 301,440 300,000 300,480 300,000 297,600 6.60% Debentures Due 2028 109,895 129,445 109,895 128,006 109,895 123,346 Total long-term debt $ 1,709,895 1,744,525 1,709,895 1,781,346 1,709,895 1,685,936 Less: Deferred debt expenses 14,433 - 15,918 - 14,803 - Long-term debt $ 1,695,462 1,744,525 1,693,977 1,781,346 1,695,092 1,685,936 Fair Value Measurements Using: Quoted Prices in Active Markets Significant for Other Significant Identical Observable Unobservable Fair Assets Inputs Inputs Value (Level 1) (Level 2) (Level 3) March 31, 2019 Assets: Available-for-sale securities $ 975 975 - - Derivatives 32,296 - 32,296 - Total assets $ 33,271 975 32,296 - Liabilities: Derivatives $ 45 - 45 - Option agreement 23,144 - - 23,144 Total liabilities $ 23,189 - 45 23,144 April 1, 2018 Assets: Available-for-sale securities $ 2,941 2,941 - - Derivatives 2,960 - 2,960 - Total assets $ 5,901 2,941 2,960 - Liabilities: Derivatives $ 39,428 - 39,428 - Option agreement 23,665 - - 23,665 Total liabilities $ 63,093 - 39,428 23,665 December 30, 2018 Assets: Available-for-sale securities $ 914 914 - - Derivatives 26,076 - 26,076 - Total assets $ 26,990 914 26,076 - Liabilities: Derivatives $ 1,610 - 1,610 - Option agreement 23,440 - - 23,440 Total Liabilities $ 25,050 - 1,610 23,440 2019 2018 Balance at beginning of year $ (23,440) (23,980) Gain from change in fair value 296 315 Balance at end of first quarter $ (23,144) (23,665) Quarter Ended Pension Postretirement March 31, April 1, March 31, April 1, 2019 2018 2019 2018 Service cost $ 1,037 685 178 188 Interest cost 2,205 4,016 316 292 Expected return on assets (2,038) (5,205) - - Net amortization and deferrals 1,698 2,977 5 42 Net periodic benefit cost $ 2,902 2,473 499 522 March 31, 2019 April 1, 2018 December 30, 2018 Notional Fair Notional Fair Notional Fair Hedged transaction Amount Value Amount Value Amount Value Inventory purchases $ 486,999 21,649 718,925 (31,453) 468,305 15,089 Sales 263,221 8,358 375,441 7,323 298,194 11,232 Royalties and Other 26,422 190 178,896 (11,602) 26,341 (304) Total $ 776,642 30,197 1,273,262 (35,732) 792,840 26,017 March 31, April 1, December 30, 2019 2018 2018 Prepaid expenses and other current assets Unrealized gains $ 22,737 458 21,718 Unrealized losses (2,008) (405) (972) Net unrealized gains $ 20,729 53 20,746 Other assets Unrealized gains $ 9,752 5,996 6,173 Unrealized losses (239) (3,089) (843) Net unrealized gains $ 9,513 2,907 5,330 Accrued liabilities Unrealized gains $ - 8,218 77 Unrealized losses (45) (30,826) (136) Net unrealized losses $ (45) (22,608) (59) Other liabilities Unrealized gains $ - 2,846 - Unrealized losses - (18,930) - Net unrealized losses $ - (16,084) - Quarter Ended March 31, April 1, 2019 2018 Statements of Operations Classification Cost of sales $ 2,614 (3,891) Net revenues 878 332 Other 118 (1,423) Net realized gains (losses) $ 3,610 (4,982) March 31, April 1, December 30, 2019 2018 2018 Prepaid expenses and other current assets Unrealized gains $ 2,391 - - Unrealized losses (337) - - Net unrealized gains $ 2,054 - - Accrued liabilities Unrealized gains $ - 383 1,269 Unrealized losses - (1,119) (2,820) Net unrealized losses - (736) (1,551) Total unrealized gains (losses), net $ 2,054 (736) (1,551) Quarter Ended March 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 9,574 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 23,680 Weighted Average Remaining Lease Term Operating leases 6.7 years Weighted Average Discount Rate Operating leases 4.5% March 31, 2019 2019 (excluding the three months ended March 31, 2019) $ 26,972 2020 33,756 2021 29,487 2022 27,260 2023 22,093 2024 and thereafter 46,277 Total future lease payments 185,845 Less imputed interest 26,968 Present value of future operating lease payments 158,877 Less current portion of operating lease liabilities (1) 29,534 Non-current operating lease liability (2) 129,343 Operating lease right-of-use assets, net (3) $ 141,075 Quarter Ended March 31, 2019 April 1, 2018 Net revenues External Affiliate External Affiliate U.S. and Canada $ 357,851 1,849 353,913 2,133 International 282,649 41 287,945 62 Entertainment, Licensing and Digital 91,994 1,974 74,405 3,576 Global Operations (a) 16 229,425 78 253,320 Corporate and Eliminations (b) - (233,289) - (259,091) $ 732,510 - 716,341 - Quarter Ended March 31, April 1, Operating profit (loss) 2019 2018 U.S. and Canada $ 13,532 (26,620) International (30,411) (56,088) Entertainment, Licensing and Digital 30,020 17,143 Global Operations (a) 1,254 2,176 Corporate and Eliminations (b) 21,732 (17,030) $ 36,127 (80,419) March 31, April 1, December 30, Total assets 2019 2018 2018 U.S. and Canada $ 2,600,873 2,735,206 2,898,816 International 2,019,800 2,033,928 2,229,053 Entertainment, Licensing and Digital 804,288 683,251 621,595 Global Operations (a) 706,701 3,293,265 3,197,847 Corporate and Eliminations (b) (1,196,889) (4,016,578) (3,684,323) $ 4,934,773 4,729,072 5,262,988 Quarter Ended March 31, April 1, 2019 2018 Europe $ 153,379 155,562 Latin America 62,777 65,961 Asia Pacific 66,493 66,422 Net revenues $ 282,649 287,945 Quarter Ended March 31, April 1, 2019 2018 Franchise Brands $ 393,574 361,706 Partner Brands 171,989 200,592 Hasbro Gaming 107,565 105,227 Emerging Brands 59,382 48,816 Total $ 732,510 716,341 Remaining amounts to be paid as of December 30, 2018 $ 69,192 Payments made in first quarter of 2019 (7,620) Remaining amounts as of March 31, 2019 $ 61,572 Each of these principles is executed globally in alignment with Hasbro's strategic plan, its brand blueprint. At the center of this blueprint, Hasbro re-imagines, re-invents and re-ignites its owned and controlled brands and imagines, invents and ignites new brands, through product innovation, immersive entertainment offerings, including television and motion pictures, digital gaming and a broad range of consumer products. As the global consumer landscape, shopping behaviors and the retail environment continue to evolve, we continue to transform and Amounts Returned to Shareholders Quarter Ended March 31, April 1, 2019 2018 Net revenues 100.0 % 100.0 % Costs and expenses: Cost of sales 35.5 35.6 Royalties 8.2 9.7 Product development 7.7 8.0 Advertising 10.5 9.5 Amortization of intangibles 1.6 0.9 Program production cost amortization 0.9 1.7 Selling, distribution and administration 30.8 45.8 Operating profit (loss) 4.9 (11.2) Interest expense 3.0 3.2 Interest income (1.0) (0.9) Other income, net (1.2) (1.2) Earnings (loss) before income taxes 4.0 (12.3) Income tax expense 0.4 3.4 Net earnings (loss) 3.6 % (15.7) % Absent the impact of foreign exchange during the third quarter of 2019, net revenues grew 2%. The following table presents net revenues by Quarter Ended March 31, April 1, % 2019 2018 Change Franchise Brands $ 393.6 361.7 9 % Partner Brands 172.0 200.6 -14 % Hasbro Gaming 107.6 105.2 2 % Emerging Brands 59.4 48.8 22 % Total $ 732.5 716.3 2 % and BABY ALIVE products. described above, as well as net revenue declines from DREAMWORKS’ TROLLS and DISNEY PRINCESS products. SPEAK OUT products. LOST KITTIES products. As a result of the realignment of the Company’s financial reporting segments, 2018 net revenues and operating profit were reclassified from the U.S. and Canada segment to the Entertainment, Licensing and Digital segment to conform to current year presentation. Fiscal Year Quarter Ended Ended April 1, July 1, Sept. 30, Dec. 30, Dec. 30, 2018 2018 2018 2018 2018 Net Revenues U.S. and Canada segment $ 353.9 $ 448.4 $ 912.2 $ 661.1 $ 2,375.7 Entertainment, Licensing and Digital segment 74.4 75.5 96.8 109.6 356.3 Operating Profit (Loss) U.S. and Canada segment $ (26.6) $ 73.1 $ 223.1 $ 100.7 $ 370.2 Entertainment, Licensing and Digital segment 17.1 21.8 37.1 (46.9) 29.1 Quarter Ended March 31, April 1, % 2019 2018 Change Net Revenues* U.S. and Canada segment $ 357.9 $ 353.9 1 % International segment 282.6 287.9 -2 % Entertainment, Licensing and Digital segment 92.0 74.4 24 % Operating Profit (Loss)* U.S. and Canada segment $ 13.5 $ (26.6) 151 % International segment (30.4) (56.1) 46 % Entertainment, Licensing and Digital segment 30.0 17.1 75 % In the Franchise products. Quarter Ended March 31, April 1, % 2019 2018 Change Europe $ 153.4 155.5 -1 % Latin America 62.8 66.0 -5 % Asia Pacific 66.5 66.4 0 % Net revenues $ 282.6 287.9 -2 % International segment operating These increases were partially offset by lower royalty expenses during the first nine months of 2019. $17.3 million of severance related to the Company’s 2018 restructuring plan. In the first nine months of 2019, operating profit benefited from cost reductions associated with the implementation of the Company’s 2018 restructuring program. Quarter Ended March 31, April 1, 2019 2018 Cost of sales 35.5 % 35.6 % Royalties 8.2 9.7 Product development 7.7 8.0 Advertising 10.5 9.5 Amortization of intangibles 1.6 0.9 Program production cost amortization 0.9 1.7 Selling, distribution and administration 30.8 45.8 2018 as well as the licensed property rights, which began amortizing in 2019. 2019. Other expense, net was $20.2 million and $118.3 million for the third quarter and first nine months of 2019, respectively, compared to other income, net of limit exposure to foreign currency fluctuations associated with the proposed eOne acquisition price. In the third quarter of 2018, the estimate was further revised based on additional guidance and a one-time tax benefit of $17.3 was recorded. December 22, 2018 marked the end of the measurement period for purposes of SAB 118. As such, the Company has completed its analysis based on legislative updates relating to the Tax Act. In February 2016, the In August 2018, the U.S. Securities and Exchange Commission (“SEC”) issued a final ruling amending numerous SEC rules covering a diverse group of topics. One noteworthy rule change expands disclosure requirements related to changes in shareholders’ equity by extending to interim periods, the annual requirement of SEC Regulation S-X, Rule 3-04, of presenting changes in stockholders’ equity. An analysis of changes in stockholders’ equity in the form of a reconciliation is required for the current and comparative year-to-date interim periods effective for all filings submitted on or after November 5, 2018. As a result of the adoption of this ruling, the Company has included a consolidated statement of stockholders’ equity for the March 31, April 1, % 2019 2018 Change Cash and cash equivalents $ 1,196.6 1,598.9 -25 % Accounts receivable, net 638.4 612.7 4 % Inventories 491.8 517.4 -5 % Prepaid expenses and other current assets 305.1 292.8 4 % Other assets 739.7 660.3 12 % Accounts payable and accrued liabilities 935.3 830.9 13 % Other liabilities 636.1 611.2 4 % Accounts receivable increased tariffs. income balances in 2019. operating cash flows resulted from lower film production costs in 2019 as well as lower inventory purchases in 2019. Cash utilized by investing activities in 2018 reflects the cash portion of the Power Rangers brand acquisition of $155.5 million. awards, which were $13.1 million in the first nine months of 2019, compared to $58.3 million in 2018. positions. To manage this exposure, the Company has hedged a portion of its forecasted foreign currency transactions for fiscal years 2019 through 2022 using foreign exchange forward contracts and zero-cost collar options. In addition, during the third quarter of 2019 the Company hedged a portion of its exposure to fluctuations in the British pound sterling in relation to its proposed acquisition of eOne using both foreign exchange forward and option contracts. The Company is also exposed to foreign currency risk with respect to its net cash and cash equivalents or short-term borrowing positions in currencies other than the U.S. dollar. The Company believes, however, that the on-going risk on the net exposure should not be material to its financial condition. In addition, the Company's revenues and costs have been, and will likely continue to be, affected by changes in foreign currency rates. A significant change in foreign exchange rates can materially impact the Company's revenues and earnings due to translation of foreign-denominated revenues and expenses. The Company does not hedge against translation impacts of foreign exchange. From time to time, affiliates of the Company may make or receive intercompany loans in currencies other than their functional currency. The Company manages this exposure at the time the loan is made by using foreign exchange contracts. Other than as set forth above, the Company does not hedge foreign currency exposures. Legal Proceedings. lead plaintiff in this matter voluntarily dismissed the action without prejudice against the Defendants. Risk Factors. Unregistered Sales of Equity Securities and Use of Proceeds. (d) Maximum Number (or (c) Total Approximate Number of Dollar Shares (or Value) of Units) Shares (or Purchased Units) that (a) Total (b) as Part of May Yet Be Number of Average Publicly Purchased Shares (or Price Paid Announced Under the Period Units) per Share Plans or Plans or Purchased (or Unit) Programs Programs January 2019 12/31/18 – 1/27/19 298,064 $ 83.87 298,064 $ 402,965,920 February 2019 1/28/19 – 3/3/19 - $ - - $ 402,965,920 March 2019 3/4/19 – 3/31/19 281,110 $ 85.98 281,110 $ 378,795,443 Total 579,174 $ 84.90 579,174 $ 378,795,443 Defaults Upon Senior Securities. Mine Safety Disclosures. Other Information. * Furnished herewith. By: /s/ Deborah Thomas Deborah Thomas“emerging"emerging growth company”company" in Rule 12b-2 of the Exchange Act.Large accelerated filer [x]Accelerated filer [ ]☐ [ ]Smaller reporting Company [ ]company☐ Emerging growth company ☐ Emerging growth Company [ ][ ] ☐No [x]April 22,October 18, 2019 was 125,854,116.126,253,142.March 31,April 1,December 30,201920182018ASSETSCurrent assetsCash and cash equivalents$1,196,6341,598,9441,182,371Accounts receivable, less allowance for doubtful accounts of $12,100$94,300 and $9,100638,417612,6981,188,052Inventories491,751517,439443,383Prepaid expenses and other current assets305,056292,756268,698Total current assets2,631,8583,021,8373,082,504Property, plant and equipment, less accumulated depreciation of $484,200$436,600 and $462,700395,624262,418256,473Other assetsGoodwill485,528573,574485,881Other intangible assets, net of accumulated amortization of $747,800 $911,300 and $721,700682,063210,904693,842Other739,700660,339744,288Total other assets1,907,2911,444,8171,924,011Total assets$4,934,7734,729,0725,262,988LIABILITIES AND SHAREHOLDERS' EQUITYCurrent liabilitiesShort-term borrowings$13,40921,6119,740Accounts payable234,262256,433333,521Accrued liabilities701,054574,482931,063Total current liabilities948,725852,5261,274,324Long-term debt1,695,4621,693,9771,695,092Other liabilities636,055611,210539,086Total liabilities3,280,2423,157,7133,508,502Shareholders' equityPreference stock of $2.50 par value. Authorized 5,000,000 shares; noneissued---Common stock of $0.50 par value. Authorized 600,000,000 shares; issued209,694,630 at March 31, 2019, April 1, 2018,and December 30, 2018104,847104,847104,847Additional paid-in capital1,269,2301,053,3681,275,059Retained earnings4,125,6864,090,6374,184,374Accumulated other comprehensive loss(282,339)(292,395)(294,514)Treasury stock, at cost; 83,830,809 shares at March 31, 2019; 84,706,373shares at April 1, 2018; and 83,565,598 shares at December 30, 2018(3,562,893)(3,385,098)(3,515,280)Total shareholders' equity1,654,5311,571,3591,754,486Total liabilities and shareholders' equity$4,934,7734,729,0725,262,988 September 29,
2019 September 30,
2018 December 30,
2018ASSETS Current assets Cash and cash equivalents $ 1,060,432 907,107 1,182,371 1,416,879 1,391,242 1,188,052 Inventories 589,132 610,918 443,383 Prepaid expenses and other current assets 346,687 283,183 268,698 Total current assets 3,413,130 3,192,450 3,082,504 371,881 255,150 256,473 Other assets Goodwill 485,042 572,387 485,881 658,350 732,235 693,842 Other 626,221 743,107 744,288 Total other assets 1,769,613 2,047,729 1,924,011 Total assets $ 5,554,624 5,495,329 5,262,988 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities Short-term borrowings $ 7,903 20,307 9,740 Accounts payable 501,136 458,808 333,521 Accrued liabilities 957,696 842,808 931,063 Total current liabilities 1,466,735 1,321,923 1,274,324 Long-term debt 1,696,204 1,694,721 1,695,092 Other liabilities 550,778 591,404 539,086 Total liabilities 3,713,717 3,608,048 3,508,502 Shareholders' equity Preference stock of $2.50 par value. Authorized 5,000,000 shares; none issued — — — Common stock of $0.50 par value. Authorized 600,000,000 shares; issued 209,694,630 at September 29, 2019, September 30, 2018, and December 30, 2018 104,847 104,847 104,847 Additional paid-in capital 1,301,366 1,282,405 1,275,059 Retained earnings 4,180,331 4,254,919 4,184,374 Accumulated other comprehensive loss (185,376 ) (296,738 ) (294,514 ) Treasury stock, at cost; 83,442,005 shares at September 29, 2019; 82,979,119 shares at September 30, 2018; and 83,565,598 shares at December 30, 2018 (3,560,261 ) (3,458,152 ) (3,515,280 ) Total shareholders' equity 1,840,907 1,887,281 1,754,486 Total liabilities and shareholders' equity $ 5,554,624 5,495,329 5,262,988 Quarter Ended Nine Months Ended September 29,
2019 September 30,
2018 September 29,
2019 September 30,
2018Net revenues $ 1,575,173 1,569,686 $ 3,292,220 3,190,485 Costs and expenses: Cost of sales 627,119 655,597 1,230,800 1,249,090 Royalties 128,008 105,265 258,957 240,962 Product development 67,354 65,807 189,246 183,050 Advertising 140,256 134,384 309,659 290,001 Amortization of intangibles 11,814 8,841 35,445 19,873 Program production cost amortization 28,028 14,088 58,105 33,419 Selling, distribution and administration 275,384 272,368 748,338 853,585 Total costs and expenses 1,277,963 1,256,350 2,830,550 2,869,980 Operating profit 297,210 313,336 461,670 320,505 Non-operating (income) expense: Interest expense 22,764 22,779 67,096 68,391 Interest income (5,485 ) (4,671 ) (19,164 ) (17,227 ) Other expense (income), net 20,185 (566 ) 118,289 (6,189 ) Total non-operating expense, net 37,464 17,542 166,221 44,975 Earnings before income taxes 259,746 295,794 295,449 275,530 Income tax expense 46,797 31,933 42,340 63,862 Net earnings $ 212,949 263,861 $ 253,109 211,668 Net earnings per common share: Basic $ 1.68 2.08 $ 2.00 1.68 Diluted $ 1.67 2.06 $ 1.99 1.67 Cash dividends declared per common share $ 0.68 0.63 $ 2.04 1.89 Quarter Ended Nine Months Ended September 29,
2019 September 30,
2018 September 29,
2019 September 30,
2018Net earnings $ 212,949 263,861 $ 253,109 211,668 Other comprehensive earnings: Foreign currency translation adjustments (16,447 ) (6,762 ) (6,120 ) (44,560 ) Unrealized holding (losses) gains on available-for-sale securities, net of tax (155 ) (617 ) 400 (673 ) Net gains on cash flow hedging activities, net of tax 9,514 5,323 14,027 23,765 Changes in unrecognized pension amounts, net of tax — — 19,589 (26,058 ) Reclassifications to earnings, net of tax: Net (gains) losses on cash flow hedging activities (5,392 ) (1,672 ) (10,188 ) 5,318 Amortization of unrecognized pension and postretirement amounts 279 2,066 5,578 6,398 Settlement of U.S. defined benefit plan — — 85,852 — Total other comprehensive earnings (loss), net of tax (12,201 ) (1,662 ) 109,138 (35,810 ) Comprehensive earnings $ 200,748 262,199 $ 362,247 175,858 Nine Months Ended September 29,
2019 September 30,
2018Cash flows from operating activities: Net earnings $ 253,109 211,668 Adjustments to reconcile net earnings to net cash provided by operating activities: Depreciation of plant and equipment 101,016 104,915 Amortization of intangibles 35,445 19,873 Program production cost amortization 58,105 33,419 Deferred income taxes (27,974 ) (7,189 ) Stock-based compensation 24,787 35,823 Non-cash pension settlement 110,777 — Other non-cash items 13,347 (12,124 ) Change in operating assets and liabilities net of acquired balances: Increase in accounts receivable (236,010 ) (9,252 ) Increase in inventories (154,476 ) (197,253 ) Decrease (increase) in prepaid expenses and other current assets 2,440 (52,005 ) Program production costs, net of tax rebates received (43,857 ) (95,724 ) Increase in accounts payable and accrued liabilities 236,777 124,755 Change in net deemed repatriation tax (14,550 ) 18,074 Other 30,632 (234 ) Net cash provided by operating activities 389,568 174,746 Cash flows from investing activities: Additions to property, plant and equipment (90,800 ) (104,015 ) Acquisitions — (155,451 ) Other 4,340 8,587 Net cash utilized by investing activities (86,460 ) (250,879 ) Cash flows from financing activities: Net repayments of other short-term borrowings (1,425 ) (131,629 ) Purchases of common stock (60,137 ) (187,850 ) Stock-based compensation transactions 29,737 28,827 Dividends paid (250,760 ) (229,562 ) Payments related to tax withholding for share-based compensation (13,061 ) (58,336 ) Deferred acquisition payments (100,000 ) — Debt acquisition costs (21,534 ) — Net cash utilized by financing activities (417,180 ) (578,550 ) Effect of exchange rate changes on cash (7,867 ) (19,444 ) Decrease in cash and cash equivalents (121,939 ) (674,127 ) Cash and cash equivalents at beginning of year 1,182,371 1,581,234 Cash and cash equivalents at end of period $ 1,060,432 907,107 Supplemental information Cash paid during the period for: Interest $ 69,601 69,603 Income taxes $ 64,917 87,704 Quarter Ended September 29, 2019 Balance, June 30, 2019 $ 104,847 1,290,540 4,053,266 (173,175 ) (3,559,609 ) $ 1,715,869 Net earnings — — 212,949 — — 212,949 Other comprehensive loss — — — (12,201 ) — (12,201 ) Stock-based compensation transactions — 1,933 — — 852 2,785 Purchases of common stock — — — — (1,504 ) (1,504 ) Stock-based compensation expense — 8,893 — — — 8,893 Dividends declared — — (85,884 ) — — (85,884 ) Balance, September 29, 2019 $ 104,847 1,301,366 4,180,331 (185,376 ) (3,560,261 ) $ 1,840,907 Quarter Ended September 30, 2018 Balance, July 1, 2018 104,847 1,263,657 4,070,661 (295,076 ) (3,377,339 ) 1,766,750 Net earnings — — 263,861 — — 263,861 Issuance of shares for Saban purchase — — — — — — Other comprehensive loss — — — (1,662 ) — (1,662 ) Stock-based compensation transactions — 6,470 — — (1,358 ) 5,112 Purchases of common stock — — — — (79,455 ) (79,455 ) Stock-based compensation expense — 12,278 — — — 12,278 Dividends declared — — (79,603 ) — — (79,603 ) Balance, September 30, 2018 $ 104,847 $ 1,282,405 $ 4,254,919 $ (296,738 ) $ (3,458,152 ) $ 1,887,281 Nine Months Ended September 29, 2019 Balance, December 30, 2018 $ 104,847 1,275,059 4,184,374 (294,514 ) (3,515,280 ) $ 1,754,486 Net earnings — — 253,109 — — 253,109 Other comprehensive earnings — — — 109,138 — 109,138 Stock-based compensation transactions — 1,756 — — 14,920 16,676 Purchases of common stock — — — — (60,137 ) (60,137 ) Stock-based compensation expense — 24,551 — — 236 24,787 Dividends declared — — (257,152 ) — — (257,152 ) Balance, September 29, 2019 $ 104,847 1,301,366 4,180,331 (185,376 ) (3,560,261 ) $ 1,840,907 Nine Months Ended September 30, 2018 Balance, December 31, 2017 104,847 1,050,605 4,260,222 (239,425 ) (3,346,292 ) 1,829,957 Net earnings — — 211,668 — — 211,668 Impact of adoption of ASU 2018-02 — — 21,503 (21,503 ) — — Issuance of shares for Saban purchase — 198,853 — — 81,544 280,397 Other comprehensive loss — — — (35,810 ) — (35,810 ) Stock-based compensation transactions — (2,660 ) — — (1,272 ) (3,932 ) Purchases of common stock — — — — (192,348 ) (192,348 ) Stock-based compensation expense — 35,607 — — 216 35,823 Dividends declared — — (238,474 ) — — (238,474 ) Balance, September 30, 2018 $ 104,847 $ 1,282,405 $ 4,254,919 $ (296,738 ) $ (3,458,152 ) $ 1,887,281 2019 2018 Quarter Basic Diluted Basic Diluted Net earnings $ 212,949 212,949 263,861 263,861 Average shares outstanding 126,453 126,453 127,161 127,161 Effect of dilutive securities: Options and other share-based awards — 751 — 731 Equivalent Shares 126,453 127,204 127,161 127,892 Net earnings per common share $ 1.68 1.67 2.08 2.06 2019 2018 Nine Months Basic Diluted Basic Diluted Net earnings $ 253,109 253,109 211,668 211,668 Average shares outstanding 126,356 126,356 125,982 125,982 Effect of dilutive securities: Options and other share-based awards — 600 — 792 Equivalent Shares 126,356 126,956 125,982 126,774 Net earnings per common share $ 2.00 1.99 1.68 1.67 Quarter Ended Nine Months Ended September 29,
2019 September 30,
2018 September 29,
2019 September 30,
2018 Other comprehensive earnings (loss), tax effect: Tax benefit (expense) on unrealized holding gains (losses) $ 46 179 (116 ) 195 Tax (expense) benefit on cash flow hedging activities (570 ) (73 ) (524 ) 238 Tax (expense) benefit on changes in unrecognized pension amounts — — (5,687 ) 7,565 Reclassifications to earnings, tax effect: Tax expense on cash flow hedging activities 703 1,015 1,237 107 Tax benefit on unrecognized pension and postretirement amounts reclassified to the consolidated statements of operations (80 ) (600 ) (1,619 ) (1,857 ) Tax benefit on settlement of U.S defined benefit plan — — (24,925 ) — Total tax effect on other comprehensive earnings (loss) $ 99 521 (31,634 ) 6,248 2019 Balance at December 30, 2018 $ (143,134 ) 1,549 (744 ) (152,185 ) (294,514 ) Current period other comprehensive earnings (loss) 111,019 3,839 400 (6,120 ) 109,138 Balance at September 29, 2019 $ (32,115 ) 5,388 (344 ) (158,305 ) (185,376 ) 2018 Balance at December 31, 2017 $ (110,971 ) (32,827 ) 1,034 (96,661 ) (239,425 ) Adoption of ASU 2018-02 (18,065 ) (3,660 ) 222 — (21,503 ) Current period other comprehensive earnings (loss) (19,660 ) 29,083 (673 ) (44,560 ) (35,810 ) Balance at September 30, 2018 $ (148,696 ) (7,404 ) 583 (141,221 ) (296,738 ) September 29, 2019 September 30, 2018 December 30, 2018 6.35% Notes Due 2040 $ 500,000 587,850 500,000 546,450 500,000 535,000 3.50% Notes Due 2027 500,000 511,200 500,000 466,350 500,000 457,350 5.10% Notes Due 2044 300,000 310,080 300,000 285,390 300,000 272,640 3.15% Notes Due 2021 300,000 303,300 300,000 297,720 300,000 297,600 6.60% Debentures Due 2028 109,895 133,555 109,895 124,698 109,895 123,346 Total long-term debt $ 1,709,895 1,845,985 1,709,895 1,720,608 1,709,895 1,685,936 Less: Deferred debt expenses 13,691 — 15,174 — 14,803 — Long-term debt $ 1,696,204 1,845,985 1,694,721 1,720,608 1,695,092 1,685,936 Fair Value Measurements Using: September 29, 2019 Assets: Available-for-sale securities $ 1,148 1,148 — — Derivatives 54,030 — 54,030 — Total assets $ 55,178 1,148 54,030 — Liabilities: Derivatives $ 11,508 — 11,508 — Option agreement 22,196 — — 22,196 Total liabilities $ 33,704 — 11,508 22,196 September 30, 2018 Assets: Available-for-sale securities $ 2,346 2,346 — — Derivatives 20,079 — 20,079 — Total assets $ 22,425 2,346 20,079 — Liabilities: Derivatives $ 2,113 — 2,113 — Option agreement 23,460 — — 23,460 Total liabilities $ 25,573 — 2,113 23,460 December 30, 2018 Assets: Available-for-sale securities $ 914 914 — — Derivatives 26,076 — 26,076 — Total assets $ 26,990 914 26,076 — Liabilities: Derivatives $ 1,610 — 1,610 — Option agreement 23,440 — — 23,440 Total Liabilities $ 25,050 — 1,610 23,440 2019 2018 Balance at beginning of year $ (23,440 ) (23,980 ) Gain from change in fair value 1,244 520 Balance at end of third quarter $ (22,196 ) (23,460 ) Quarter Ended Pension Postretirement September 29,
2019 September 30,
2018 September 29,
2019 September 30,
2018Service cost $ 325 678 311 189 Interest cost 821 3,997 316 292 Expected return on assets (476 ) (5,190 ) — — Settlement — — — — Net amortization and deferrals 598 2,971 5 42 Net periodic benefit cost $ 1,268 2,456 632 523 Nine Months Ended Pension Postretirement September 29,
2019 September 30,
2018 September 29,
2019 September 30,
2018Service cost 2,170 2,030 667 566 Interest cost 7,939 11,993 948 877 Expected return on assets (7,642 ) (15,569 ) — — Settlement 110,777 — — — Net amortization and deferrals 7,906 8,913 15 127 Net periodic benefit cost 121,150 7,367 1,630 1,570 September 29, 2019 September 30, 2018 December 30, 2018 Hedged transaction Inventory purchases $ 420,839 24,462 555,661 6,827 468,305 15,089 Sales 212,062 7,231 319,421 13,027 298,194 11,232 Royalties and Other 16,935 (137 ) 117,534 (2,420 ) 26,341 (304 ) Total $ 649,836 31,556 992,616 17,434 792,840 26,017 September 29,
2019 September 30,
2018 December 30,
2018Prepaid expenses and other current assets Unrealized gains $ 22,529 15,414 21,718 Unrealized losses (1,333 ) (4,079 ) (972 ) Net unrealized gains $ 21,196 11,335 20,746 Other assets Unrealized gains $ 10,609 9,591 6,173 Unrealized losses (249 ) (1,455 ) (843 ) Net unrealized gains $ 10,360 8,136 5,330 Accrued liabilities Unrealized gains $ — 596 77 Unrealized losses — (1,182 ) (136 ) Net unrealized losses $ — (586 ) (59 ) Other liabilities Unrealized gains $ — 1,035 — Unrealized losses — (2,486 ) — Net unrealized losses $ — (1,451 ) — Quarter Ended Nine Months Ended September 29,
2019 September 30,
2018 September 29,
2019 September 30,
2018Statements of Operations Classification Cost of sales $ 4,678 3,358 9,278 (1,483 ) Net revenues 1,889 1,328 3,366 2,090 Other (23 ) (17 ) 129 (101 ) Net realized gains $ 6,544 4,669 12,773 506 September 29,
2019 September 30,
2018 December 30,
2018Prepaid expenses and other current assets Unrealized gains $ 2,630 2,060 — Unrealized losses (301 ) (1,452 ) — Net unrealized gains $ 2,329 608 — Accrued liabilities Unrealized gains $ 164 12 1,269 Unrealized losses (203 ) (33 ) (2,820 ) Net unrealized losses $ (39 ) (21 ) (1,551 ) Other liabilities Unrealized gains — 30 — Unrealized losses — (85 ) — Net unrealized losses — (55 ) — Total unrealized (losses) gains, net $ 2,290 532 (1,551 ) Quarter Ended Nine Months Ended September 29,
2019 September 29,
2019Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 9,003 $ 27,817 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 1,363 $ 25,622 Weighted Average Remaining Lease Term Operating leases 6.4 years Weighted Average Discount Rate Operating leases 4.5 % September 29,
20192019 (excluding the nine months ended September 29, 2019) $ 8,969 2020 33,876 2021 29,248 2022 27,012 2023 21,918 2024 and thereafter 45,288 Total future lease payments 166,311 Less imputed interest 21,856 Present value of future operating lease payments 144,455 29,489 114,966 $ 127,005 Quarter Ended September 29, 2019 September 30, 2018 Net revenues External Affiliate External Affiliate U.S. and Canada $ 898,269 2,535 912,179 2,364 International 561,137 — 560,704 2 Entertainment, Licensing and Digital 115,766 3,849 96,803 4,712 Global Operations (a) 1 538,817 — 557,049 Corporate and Eliminations (b) — (545,201 ) — (564,127 ) $ 1,575,173 — 1,569,686 — Nine Months Ended September 29, 2019 September 30, 2018 Net revenues External Affiliate External Affiliate U.S. and Canada $ 1,766,649 7,379 1,714,536 7,093 International 1,221,224 186 1,229,093 290 Entertainment, Licensing and Digital 304,266 7,989 246,747 11,378 Global Operations (a) 81 1,088,860 109 1,152,851 Corporate and Eliminations (b) — (1,104,414 ) — (1,171,612 ) $ 3,292,220 — 3,190,485 — Quarter Ended Nine Months Ended Operating profit (loss) September 29,
2019 September 30,
2018 September 29,
2019 September 30,
2018U.S. and Canada $ 193,686 $ 223,061 $ 313,795 $ 269,539 International 67,238 66,274 51,410 10,359 Entertainment, Licensing and Digital 24,594 37,113 62,550 76,016 Global Operations (a) 11,074 3,179 6,342 (4,623 ) Corporate and Eliminations (b) 618 (16,291 ) 27,573 (30,786 ) $ 297,210 $ 313,336 $ 461,670 $ 320,505 Total assets September 29,
2019 September 30,
2018 December 30,
2018U.S. and Canada $ 3,331,125 3,028,291 2,898,816 International 2,394,488 2,323,866 2,229,053 Entertainment, Licensing and Digital 1,031,906 890,526 621,595 Global Operations (a) 3,255,286 4,306,291 3,197,847 Corporate and Eliminations (b) (4,458,181 ) (5,053,645 ) (3,684,323 ) $ 5,554,624 5,495,329 5,262,988 Quarter Ended Nine Months Ended September 29,
2019 September 30,
2018 September 29,
2019 September 30,
2018Europe $ 319,277 331,353 $ 673,728 686,490 Latin America 151,987 145,703 305,106 308,065 Asia Pacific 89,873 83,648 242,390 234,538 Net revenues $ 561,137 560,704 $ 1,221,224 1,229,093 Quarter Ended Nine Months Ended September 29,
2019 September 30,
2018 September 29,
2019 September 30,
2018Franchise Brands $ 779,659 $ 847,745 $ 1,749,948 $ 1,715,986 Partner Brands 427,029 305,827 812,466 714,424 Hasbro Gaming 232,287 280,832 463,272 520,334 Emerging Brands 136,198 135,282 266,534 239,741 Total $ 1,575,173 $ 1,569,686 $ 3,292,220 $ 3,190,485 Remaining amounts to be paid as of December 30, 2018 $ 69,192 Payments made in first quarter of 2019 (7,620 ) Payments made in the second quarter of 2019 (7,932 ) Payments made in the third quarter of 2019 (6,696 ) Remaining amounts as of September 29, 2019 $ 46,944 HASBRO, INC. AND SUBSIDIARIESCondensed Notes to Consolidated Financial Statements(Thousands of Dollars and Shares Except Per Share Data)(Unaudited)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 March 31, 2019 and April 1, 2018, and the results of its operations and cash flows and shareholder’s 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 financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and notes thereto. Actual results could differ from those estimates.The quarters ended March 31, 2019 and April 1, 2018 were each 13-week periods.The results of operations for the quarter are not necessarily indicative of results to be expected for the full year, nor were those of the comparable 2018 period representative of those actually experienced for the full year 2018.These condensed consolidated financial statements have been prepared without audit, pursuant to the rules and regulations of the U.S. 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 30, 2018 in its Annual Report on Form 10-K (“2018 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 StandardsThe Company's accounting policies are the same as those described in Note 1 to the Company's consolidated financial statements in its 2018 Form 10-K with the exception of the accounting policies related to leases and derivatives and hedging.In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update 2016-02 (ASU 2016-02), Leases (Topic 842), which requires lessees to recognize a right-of-use asset and a lease liability for virtually all leases. The liability is based on the present value of lease payments and the asset is based on the liability. For income statement purposes, a dual model was retained requiring leases to be either classified as operating or finance. Operating leases result in straight-line expense while finance leases result in a front-loaded expense pattern. Certain other quantitative and qualitative disclosures are also required. ASU 2016-02 is required for public companies for fiscal years beginning after December 15, 2018. ASU 2016-02 as originally issued required modified retrospective adoption. In July 2018, the FASB issued ASU 2018-11, which provides an alternative transition method in addition to the existing method by allowing entities to apply ASU 2016-02 as of the adoption date and recognize a cumulative effect adjustment to the opening balance of retained earnings in the period of adoption. The Company adopted ASU-2016-02 on December 31, 2018 using the retrospective basis as provided in ASU 2018-11. No cumulative effect was recorded to retained earnings. The Company also elected certain practical expedients as provided under the standard. These included (i) the election not to reassess whether contracts existing at the adoption date contain a lease under the new definition of a lease under the standard; (ii) the election not to reassess the lease classification for existing leases as of the adoption date; (iii) the election not to reassess whether previously capitalized initial direct costs would qualify for capitalization under the standard; (iv) the election to use hindsight in determining the relevant lease terms for use in the capitalization of the lease liability; and (v) the election to use hindsight in reviewing the right-of-use assets for impairment. For all leases, the terms were evaluated, including extension and renewal options as well as the lease payments associated with the leases. As a result of the adoption of the standard, in the first quarter of 2019, the Company recorded right-of-use assets of $121,230 and lease liabilities of $139,520. The Company’s results of operations were not impacted by this standard. The adoption of this standard did not have an impact on the Company’s cash flows. For further details, see Note 10.In August 2017, the FASB issued Accounting Standards Update No. 2017-12 (ASU 2017-12), Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities. The amendments expand and refine hedge accounting for both non-financial and financial risk components and align the recognition and presentation of the effects of the hedging instrument and the underlying hedged item in the financial statements. The impact of the standard includes elimination of the requirement to separately measure and recognize hedge ineffectiveness and requires the presentation of fair value adjustments to hedging instruments to be included in the same income statement line as the hedged item. For public companies, this standard is effective for annual reporting periods beginning after December 15, 2018, and early adoption is permitted. The Company adopted ASU 2017-12 in the first quarter of 2019 and the adoption of this standard did not have a material impact on the Company’s results or consolidated financial statements.Recently Issued Accounting PronouncementsIn March 2019, the FASB issued Accounting Standards Update No. 2019-02 (ASU 2019-02) Entertainment—Films—Other Assets—Film Costs (Subtopic 926-20) and Entertainment—Broadcasters—Intangibles—Goodwill and Other (Subtopic 920-350) - Improvements to Accounting for Costs of Films and License Agreements for Program Materials. The amendments in this update align cost capitalization of episodic television series production costs with that of film production cost capitalization. In addition, this update addresses impairment testing procedures with regard to film groups, when a film or license agreement is expected to be monetized with other films and/or license agreements. The intention of this update is to align accounting treatment with changes in production and distribution models within the entertainment industry and to provide increased transparency of information provided to users of financial statements about produced and licensed content. For public companies, this standard is effective for annual reporting periods beginning after December 15, 2019, and early adoption is permitted. The Company is currently evaluating the standard and the impact, if any, to its consolidated financial statements. Revenue RecognitionRevenue is recognized when control of the promised goods is transferred to the customers, 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.Contract Assets and LiabilitiesWithin our Entertainment, Licensing and Digital segment, the Company may receive royalty payments from licensees in advance of the licensees’ subsequent sales to their customers, or in advance of the Company’s performance obligation being satisfied. In addition, the Company may receive payments from its digital gaming business in advance of the recognition of the revenues. The Company defers revenues on these advanced payments until its performance obligation is satisfied. The aggregate deferred revenues are recorded as liabilities and were $47,678, $7,940, and $50,759 as of March 31, 2019, April 1, 2018, and December 30, 2018, respectively, and the changes in deferred revenues are not material to the Company’s consolidated statement of operations for the quarters ended March 31, 2019 and April 1, 2018, respectively. The Company records contract assets in the case of minimum guarantees that are being recognized ratably over the term of the respective license periods. At March 31, 2019 and April 1, 2018, these contract assets were not material to the Company’s consolidated balance sheets.Disaggregation of revenuesThe Company disaggregates its revenues from contracts with customers by segment: US and Canada, International, Entertainment, Licensing and Digital, and Global Operations. The Company further disaggregates revenues within its International segment by major geographic region: Europe, Latin America, and Asia Pacific. Finally, the Company disaggregates its revenues by brand portfolio into four brand categories: Franchise brands, Partner brands, Hasbro gaming, and Emerging brands. We believe these collectively depict how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors. See Note 12, Segment Reporting, for further information. Net earnings (loss) per share data for the quarters ended March 31, 2019 and April 1, 2018 were computed as follows:For the quarters ended March 31, 2019 and April 1, 2018, options and restricted stock units totaling 1,693 and 3,191, respectively, were excluded from the calculation of diluted earnings per share because to include them would have been anti-dilutive. Of the 2018 amount 1,993 would have been included in the calculation of diluted shares had the Company not had a net loss in the first quarter of 2018. Assuming that these awards and options were included, under the treasury stock method, they would have resulted in an additional 1,022 shares being included in the diluted earnings per share calculation for the quarter ended April 1, 2018.(4) 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 ended March 31, 2019 and April 1, 2018.Changes in the components of accumulated other comprehensive earnings (loss) for the three months ended March 31, 2019 and April 1, 2018 are as follows:Gains (Losses) on Derivative InstrumentsAt March 31, 2019, the Company had remaining net deferred gains on foreign currency forward contracts, net of tax, of $24,290 in accumulated other comprehensive loss ("AOCE"). These instruments hedge payments related to inventory purchased in the first quarter of 2019 or forecasted to be purchased during the remainder of 2019 through 2022, intercompany expenses expected to be paid or received during 2019, television and movie production costs paid in 2019, and cash receipts for sales made at the end of the first quarter of 2019 or forecasted to be made in the remainder of 2019 and, to a lesser extent, 2020 through 2021. These amounts will be reclassified into the consolidated statements of operations upon the sale of the related inventory or recognition of the related sales or expenses. In addition to foreign currency forward contracts, the Company entered into hedging contracts on future interest payments related to the long-term notes due in 2021 and 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 March 31, 2019, deferred losses, net of tax of $18,963 related to these instruments remained in AOCE. For the quarters ended March 31, 2019 and April 1, 2018, losses of $450, were reclassified from AOCE to net earnings. Of the amount included in AOCE at March 31, 2019, the Company expects net gains of approximately $16,761 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.The Company's financial instruments include cash and cash equivalents, accounts receivable, short-term borrowings, accounts payable and certain accrued liabilities. At March 31, 2019, April 1, 2018 and December 30, 2018, the carrying cost of these instruments approximated their fair value. The Company's financial instruments at March 31, 2019, April 1, 2018 and December 30, 2018 also include certain assets and liabilities measured at fair value (see Notes 7 and 9) 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 March 31, 2019, April 1, 2018 and December 30, 2018 are as follows:The fair values of the Company's long-term debt are considered Level 3 fair values (see Note 7 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.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.On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (the “Tax Act”). The Tax Act made broad and complex changes to the U.S. tax code including, but not limited to, reducing the U.S. federal corporate tax rate and requiring a one-time tax on certain unrepatriated earnings of foreign subsidiaries.On December 22, 2017, Staff Accounting Bulletin No. 118 (“SAB 118”) established a one-year measurement period to complete the accounting for the ASC 740 income tax effects of the Tax Act. An entity recognizes the impact of those amounts for which the accounting is complete. For matters that have not been completed, provisional amounts are recorded to the extent they can be reasonably estimated. For amounts for which a reasonable estimate cannot be determined, no adjustment is made until such estimate can be completed.As a result, the Company recorded a one-time tax expense of $47,800 in the first quarter of 2018 which reversed certain discrete benefits recorded in 2017 as well as increased our provisional deemed repatriation tax liability.The Company is no longer subject to U.S. federal income tax examinations for years before 2013. 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 2012. The Company is currently under income tax examination in several U.S. state and local and non-U.S. jurisdictions. (7) Fair Value of Financial InstrumentsThe 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.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. The Company has elected the fair value option for certain available-for-sale investments. At March 31, 2019, April 1, 2018 and December 30, 2018, these investments totaled $24,188, $24,584 and $23,913, respectively, and are included in prepaid expenses and other current assets in the consolidated balance sheets. The Company recorded net gains of $550 and $448 on these investments in other income, net for the quarters ended March 31, 2019 and April 1, 2018, respectively, related to the change in fair value of such instruments. At March 31, 2019, April 1, 2018 and December 30, 2018, 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):Available-for-sale securities include equity securities of one company quoted on an active public market.The Company's derivatives consist of foreign currency forward contracts and zero-cost collar options. The Company used 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 March 31, 2019, April 1, 2018 and December 30, 2018, 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 three-month period ended March 31, 2019.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):In addition to the above, the Company has three investments for which the fair value is measured using net asset value per share. At March 31, 2019, April 1, 2018 and December 30, 2018, these investments had fair values of $24,188, $24,584 and $23,913, respectively. Two of the investments have net asset values that are predominantly based on underlying investments which are traded on an active market and are redeemable within 45 days. The third investment invests in hedge funds which are generally redeemable on a quarterly basis with 30 – 90 days’ notice. (8) Pension and Postretirement BenefitsThe components of the net periodic cost of the Company's defined benefit pension and other postretirement plans for the quarters ended March 31, 2019 and April 1, 2018 are as follows:During the three months ended March 31, 2019, the Company made cash contributions of $230 to its defined benefit pension plans. During fiscal 2019, the Company expects to make cash contributions to its defined benefit pension plans of approximately $1,600 in the aggregate.In February 2018, the Compensation Committee of the Company’s Board of Directors approved a resolution to terminate the Company’s U.S. defined benefit pension plan (“Plan”). During the first quarter of 2018 the Company commenced the plan termination process and expects to complete the transfer of the Plan’s assets to a third-party administrator in the third quarter of 2019. The decision to terminate the Plan follows the 2015 decision to freeze benefits being accrued covering union employees after the sale of the Company’s manufacturing facility in East Longmeadow, MA. Benefits covering non-union employees were frozen in December 2007. Upon settlement of the pension liability, which is expected to occur in the second quarter of 2019, the Company will reclassify the related pension losses currently recorded to accumulated other comprehensive loss, to the consolidated statements of operations. As of March 31, 2019, the Company had unrecognized losses related to the Plan of $141,578. The Company will recognize this loss upon termination of the Plan, adjusted for the total required payout to plan participants which will be determined based on employee elections and market conditions present at the time of termination.In connection with the decision to terminate the Plan, the Company remeasured the projected benefit obligation in the first quarter of 2018 based on the expected Plan termination costs. This remeasurement utilized a discount rate of 3.2% compared to the discount rate of 3.7% utilized in the December 31, 2017 measurement and resulted in an increase in the projected benefit obligation of $35,192 with offsetting amounts recorded to accumulated other comprehensive losses and deferred taxes.(9) Derivative Financial InstrumentsHasbro uses foreign currency forward 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 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.The Company uses foreign currency forward contracts to reduce the impact of currency rate fluctuations on firmly committed and projected future foreign currency transactions. 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 and other cross-border transactions in 2019 through 2022.At March 31, 2019, April 1, 2018 and December 30, 2018, the notional amounts and fair values of the Company's foreign currency forward contracts designated as cash flow hedging instruments were as follows: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 March 31, 2019, April 1, 2018 and December 30, 2018 as follows:Net gains (losses) on cash flow hedging activities have been reclassified from other comprehensive earnings (loss) to net earnings for the quarters ended March 31, 2019 and April 1, 2018 as follows: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. As of March 31, 2019, April 1, 2018 and December 30, 2018 the total notional amounts of the Company's undesignated derivative instruments were $293,326, $132,945 and $452,773, respectively.At March 31, 2019, April 1, 2018 and December 30, 2018, 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 (losses) of $4,809 and $(6,700) on these instruments to other income, net for the quarters ended March 31, 2019 and April 1, 2018, 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 7.The Company occupies offices and uses certain equipment under various operating lease arrangements. The Company has no finance leases. These leases have remaining lease terms of 1 year to 19 years, some of which include either, options to extend lease terms while others include 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. Payments under such leases are expensed as incurred. The Company capitalizes non-lease components for equipment leases, but expenses non-lease components as incurred for real estate leases.For the quarter ended March 31, 2019, operating lease expense was $8,942. Expense related to short-term leases (expected terms less than 12 months) and variable lease payments were not material in the first quarter of 2019.Supplemental information related to the Company’s leases for the quarter ended March 31, 2019 is as follows: 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 March 31, 2019: (1) Included in Accrued liabilities on the consolidated balance sheets.(2) Included in Other liabilities on the consolidated balance sheets.(3) Included in Property, plant, and equipment on the consolidated balance sheets.Hasbro is a global play and entertainment company with a broad portfolio of brands and entertainment properties spanning toys, games, licensed products ranging from traditional to high-tech and digital, and film and television entertainment. The Company's segments are (i) U.S. and Canada, (ii) International, (iii) Entertainment, Licensing and Digital and (iv) Global Operations.The U.S. and Canada segment includes the marketing and selling of action figures, arts and crafts and creative play products, electronic toys and related electronic interactive products, fashion and other dolls, infant products, play sets, preschool toys, plush products, sports action blasters and accessories, vehicles and toy-related specialty products, as well as traditional board games, and trading card and role-playing games primarily within the United States and Canada. Within the International segment, the Company markets and sells both toy and game products in markets outside of the U.S. and Canada, primarily in the European, Asia Pacific, and Latin and South American regions. The Company's Entertainment, Licensing and Digital segment includes the Company's consumer products licensing, digital gaming, movie and television entertainment operations. The Global Operations segment is responsible for sourcing finished products for the Company's U.S. and Canada and International segments. During the first quarter of 2019, the Company realigned its financial reporting segments to include all digital gaming businesses within the re-named Entertainment, Licensing and Digital reporting segment. As a result of the realignment, U.S. and Canada and the former Entertainment and Licensing segment results for the first quarter of 2018 have been restated to reflect the change.Segment performance is measured at the operating profit level. Included in Corporate and Eliminations are certain corporate expenses, including the elimination of intersegment transactions and certain assets benefiting more than one segment. Intersegment sales and transfers are reflected in management reports at amounts approximating cost. Certain shared costs, including global development and marketing expenses and corporate administration, are allocated to segments based upon expenses and foreign exchange rates fixed at the beginning of the year, with adjustments to actual expenses and foreign exchange rates included in Corporate and Eliminations. The accounting policies of the segments are the same as those referenced in note 1.Results shown for the quarter are not necessarily representative of those which may be expected for the full year 2019, nor were those of the comparable 2018 period representative of those actually experienced for the full year 2018. 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 ended March 31, 2019 and April 1, 2018 are as follows:As a result of the realignment of the Company’s financial reporting segments, revenues of $10,384 from the first quarter of 2018, were reclassified from the U.S. and Canada segment to the Entertainment, Licensing and Digital segment to conform to current year presentation. As a result of the realignment of the Company’s financial reporting segments, operating profit of $3,237 for the first quarter of 2018 was reclassified from the U.S. and Canada segment to the Entertainment, Licensing and Digital segment to conform to current year presentation.(a) The Global Operations segment derives substantially all of its revenues, and thus its operating results, from intersegment activities.(b) Certain long-term assets, including property, plant and equipment, goodwill and other intangibles, which benefit multiple operating segments, are included in Corporate and Eliminations. Allocations of certain expenses related to these assets to the individual operating segments are done at the beginning of the year based on budgeted amounts. Any differences between actual and budgeted amounts are reflected in Corporate and Eliminations because allocations are translated from the U.S. Dollar to local currency at budgeted rates when recorded. Corporate and Eliminations also includes the elimination of inter-company balance sheet amounts.The following table represents consolidated International segment net revenues by major geographic region for the quarters ended March 31, 2019 and April 1, 2018.The following table presents consolidated net revenues by brand portfolio for the quarters ended March 31, 2019 and April 1, 2018.Hasbro's total gaming category, including all gaming net revenues, most notably MAGIC: THE GATHERING and MONOPOLY, totaled $243,390and $203,542 for the quarters ended March 31, 2019, and April 1, 2018, respectively.(12) Restructuring ActionsDuring 2018, the Company announced a comprehensive restructuring plan which consists of re-designing its go-to market strategy and re-shaping its organization to become a more responsive, innovative and digitally-driven play and entertainment company. As the global consumer landscape, shopping behaviors and the retail environment continue to evolve, the Company continues to transform and reimagine its business to make sure it has the right talent and capabilities to stay competitive. This includes adding new capabilities based on our understanding of the consumer and how our retailers are going to market, while also changing many of the ways we organize across our Brand Blueprint. As part of this process the Company took certain actions, which will continue through 2019. The actions primarily included headcount reduction aimed at right-sizing the Company’s cost-structure and giving it the ability to add required new talent in the future.In the first quarter of 2018, the Company recorded a pre-tax severance expense of $17,349, primarily outside of the U.S., related to this 2018 restructuring program. During the fourth quarter of 2018, the Company recorded an additional $72,000 of pre-tax severance charges related to the program. These charges were included within selling, distribution and administration costs on the Consolidated Statements of Operations for the year ended December 30, 2018 and reported within Corporate and Eliminations. No additional charges were taken in the first quarter of 2019. The detail of activity related to the program is as follows: expectations for achieving the Company’s goals and objectives, anticipated expenses, cost savings and efficiency enhancing initiatives and other objectives, anticipated impact of, and any actions taken in response to, the imposition of tariffs in certain markets, anticipated uses of cash, and the timing of the completion of the termination ofexpectations relating to the Company’s pension plan.proposed acquisition of Entertainment One. See Item 1A, in Part II of this report and Item 1A, in Part I of the Annual Report on Form 10-K for the year ended December 30, 2018 (“2018 Form 10-K”), for a discussion of factors which may cause the Company's actual results or experience to differ materially from that anticipated in these forward-looking statements. The Company undertakes no obligation to revise the forward-looking statements in this report after the date of the filing. Unless otherwise specifically indicated, all dollar or share amounts herein are expressed in millions of dollars or shares, except for per share amounts.reimaginere-imagine our business strategy. This transformation includes changing many of the ways we organize across our brand blueprint, re-shaping us to become a better equipped and adaptive, digitally-driven organization, including investing in the development of an omni-channel retail presence. More recently the Company has also focused on adding new capabilities through the on-boarding of new skill sets and talent to lead in today’s converged retail environment based on Hasbro’s understanding of the consumer and how its retailers are going to market.first quarter ofand nine month periods ended September 30, 2018 have been restated to reflect the change. In addition to these three primary segments, the Company's product sourcing operations are managed through its Global Operations segment.First· First$732.5the third quarter of 2018. International segment net revenues were unfavorably impacted by $19.9 million in foreign currency translation. Absent the impact of foreign exchange, International segment net revenues increased 4%.$716.3Partner Brands increased 40%, Franchise Brands and Hasbro Gaming net revenues declined 8% and 17%, respectively, while Emerging Brands net revenues increased slightly during the third quarter of 2019 compared to the third quarter of 2018.quarternine months of 2018.· Excluding $65.5 million of unfavorable foreign currency translation, net revenues grew 5%.1%3% and 24%23%, respectively, while the International segment net revenues decreased 2% during the first quarter of 2019 compared to the first quarter of 2018.declined 1%. International segment net revenues were unfavorably impacted by $23.4$63.4 million in foreign currency translation.· Absent the impact of foreign exchange, International segment net revenues increased 5%.9%2%, while Hasbro Gaming net revenues increased 2%, Emerging Brands grew 22%, while Partner Brands net revenues declined by 14%,11% during the first quarternine months of 2019 compared to the first quarternine months of 2018.· $36.1$461.7 million, or 4.9%14.0% of net revenues, in the first quarternine months of 2019 compared to an operating lossprofit of $80.4$320.5 million, or 10.0% of net revenues, in the first quarternine months of 2018.· First quarter operating profit was negatively impacted by pre-tax expenses of $70.4 million of costs related to the Toys“R”Us bankruptcy and severance costs of $17.3 million associated with an organizational restructuring.· the Company's 2018 restructuring program.were $26.7of $253.1 million, or $0.21$1.99 per diluted share, in the first quarternine months of 2019 compared to a net lossearnings of $112.5$211.7 million, or $0.90$1.67 per diluted share, in the first quarternine months of 2018.· quarternine months of 2018 was impacted byincluded the pre-tax expenses of $87.7 million relating to the Toys"R"Us bankruptcy and severance costs described above ($77.1 million after-tax), as well as income tax expense of $30.5 million related to guidance issued on U.S. tax reform resulting in 2018.net chargedefinitive agreement under which Hasbro will acquire all of $47.8 millionthe outstanding shares of stock of eOne in an all-cash transaction valued at approximately £3.3 billion, or $4 billion based on additional guidanceexchange rates on the agreement date. Under the terms of the agreement, eOne shareholders will receive £5.60 in cash for each common share of eOne. To finance the acquisition, the Company plans to:regulations issuedfixed rate notes for the remaining cash consideration• firstBritish pound sterling in relation to the acquisition using a series of both foreign exchange forward and option contracts. These contracts do not qualify for hedge accounting and as such, were marked to market through the Company's Consolidated Statement of Operations. The Company recorded net losses of $25.5 million on these instruments to other (income) expense, net for the quarter and nine month periods ended September 29, 2019.2018.2019.payablepaid in May 2019. In addition to the dividend, the Company returns cash through its share repurchase program. As part of this initiative, from 2005 to 2018, the Company's Board of Directors (the "Board") adopted nine successive share repurchase authorizations with a cumulative authorized repurchase amount of $4,325.0 million. The ninth authorization was approved in May 2018 for $500 million. During the first quarternine months of 2019, Hasbro repurchased approximately 0.60.7 million shares at a total cost of $49.2$60.1 million and at an average price of $84.90$87.18 per share. As of March 31,September 29, 2019, the Company had $378.8$367.8 million remaining under these authorizations. Share repurchases are subject to market conditions, the availability of funds and other uses of funds. As a result of the Company's anticipated financing for its proposed acquisition of eOne, the Company plans to suspend its current share repurchase program for the time being. See Footnote 1, “Basis of Presentation,” to the Consolidated Financial Statements for further discussion.The componentsstated as a percentage of net revenues, areis illustrated below for the quartersquarter and nine month periods ended March 31,September 29, 2019 and April 1, 2018.September 30, 2018. Quarter Ended Nine Months Ended September 29, 2019 September 30, 2018 September 29, 2019 September 30, 2018 Net revenues $ 1,575.2 $ 1,569.7 $ 3,292.2 $ 3,190.5 Operating profit 297.2 313.3 461.7 320.5 Earnings before income taxes 259.7 295.8 295.4 275.5 Income tax expense 46.8 31.9 42.3 63.9 Net earnings 212.9 263.9 253.1 211.7 Diluted earnings per share 1.67 2.06 1.99 1.67 firstthird quarter of 2019 increased 2%slightly compared to the firstthird quarter of 2018 and included the impact of an unfavorable $24.3$20.5 million foreign currency translation as a result of weaker currencies in the European, Latin American and Asia Pacific markets in 2019 compared to 2018.profitprofit for the firstthird quarter of 2019 was $36.1$297.2 million, or 4.9%18.9% of net revenues, compared to an operating lossprofit of $80.4$313.3 million, or 20.0% of net revenues, for the firstthird quarter of 2018. Operating profit results during the firstthird quarter of 2019 included an unfavorable $2.9$4.1 million impact from foreign exchange translation. Quarter Ended September 29, 2019 September 30, 2018 %
ChangeFranchise Brands $ 779.7 847.7 -8 % Partner Brands 427.0 305.8 40 % Hasbro Gaming 232.3 280.8 -17 % Emerging Brands 136.2 135.3 1 % Total $ 1,575.2 1,569.7 0 % quarternine months of 2018 was negatively impacted by the loss of revenues and incremental bad debt expense associated with the Toys“R”Us liquidations in the U.S. and U.K., as well as severance costs associated with the Company’s 2018 restructuring program.quartersnine month periods ended March 31,September 29, 2019 and April 1,September 30, 2018 were each 13-week39-week periods. Net earnings increasedfor the first nine months of 2019 were $253.1 million compared to $26.7a net earnings of $211.7 million for the first quarter of 2019 compared to a net loss of $112.5 million for the first quarternine months of 2018. Diluted earnings per share increasedwas $1.99 in the first nine months of 2019, up from diluted earnings per share of $1.67 in 2018. Net earnings for the nine months ended September 29, 2019 includes a non-cash, net of tax charge of $85.9 million, or $0.68 per diluted share, related to $0.21the settlement of the Company's U.S. defined benefit pension plan liability and a $20.9 million loss, net of tax, or $0.16 per diluted share related to unrealized losses on foreign exchange forward contracts and option contracts purchased to hedge the foreign exposure associated with the purchase price of Entertainment One Ltd. Net earnings for the first quarternine months of 2019, from a diluted loss per share of $0.90 in the first quarter of 2018. The net loss for the quarter ended April 1, 2018 includedincludes incremental bad debt expense and other costs, net of tax, of $61.4 million, or $0.49 per diluted share, related to Toys“R”Us, $15.7 million, net of tax, or $0.12 per diluted share, of severance costs related to the Company’sCompany's 2018 restructuring program, and net tax expense of $47.8$30.5 million, or $0.38$0.24 per diluted share, related to U.S. tax reform and additional guidance issued in the first quarter of 2018.brand portfolioproduct category for the quarters ended March 31,first nine months of 2019 and April 1, 2018. Nine Months Ended September 29, 2019 September 30, 2018 %
ChangeFranchise Brands $ 1,749.9 1,716.0 2 % Partner Brands 812.5 714.4 14 % Hasbro Gaming 463.3 520.3 (11 )% Emerging Brands 266.5 239.7 11 % Total $ 3,292.2 3,190.5 3 % 9%2% in the first quarternine months of 2019 compared to the first quarter of 2018. Higher net revenues from MAGIC: THE GATHERING PLAY-DOH, TRANSFORMERS and MONOPOLY products, and to a lesser extent, PLAY-DOH and TRANSFORMERS products, were partially offset by lower net revenues from NERF, and MY LITTLE PONY products during the first quarter of 2019.decreasedincreased 14% induring the first quarternine months of 2019 compared to the first quarter of 2018. Partner Brands net revenues are reliant on related entertainment, including television and movie releases. SeveralDuring the first nine months of 2019, the Company’s Partner Brands haveportfolio was supported by MARVEL’S theatrical release, AVENGERS: END GAME in APRIL. In addition to this film, the Company’s 2019 Partner Brand theatrical releases debuting throughout 2019, including MARVEL’S AVENGERS:END GAME in April, include DISNEY’S ALADDIN expected in May, FROZEN II2 expected in November as well as and STAR WARS: THE RISE OF SKYWALKER expected in December. During the first quarternine months of 2019, the increase was driven by higher net revenue declinesrevenues from MARVEL and STAR WARS products and to a lesser extent, DISNEY FROZEN and DREAMWORKS’ TROLLS products, were partially offset by net revenue increases from BEYBLADEMARVEL products, as well as net revenue contributions from the introduction of the Company’s UGLYDOLLS productCompany's line of UGLY DOLLS and OVERWATCH products during the first nine months of 2019 compared to the same period in 2018. These increases were partially offset by lower net revenues from STAR WARS products ahead of the planned secondfourth quarter 2019 theatricalfilm release UGLYDOLLS. increased 2%decreased 11% in the first quarternine months of 2019 compared to the first quarternine months of 2018. HigherIncreased net revenues from DUEL MASTERS, CONNECT 4, and TWISTERDUNGEONS & DRAGONS products were partiallymore than offset by declines in SPEAKOUTlower net revenues from PIE FACE and certain other Hasbro Gaming products in the first quarter of 2019.totaled $243.4 million for the first quarter of 2019, an increase of 20%, as comparedincreased to $203.5$1,086.2 million in the first quarternine months of 2019 versus $964.2 million in the first nine months of 2018.increased 22% duringgrew 11% for the first quarternine months of 2019 compared to the first quarternine months of 2018. Contributing to net revenue increases during the first quarter of 2019 wereNet revenues from the introduction of the Company’sCompany's POWER RANGERS product line, contributions from certain quick strike initiative products, as well as net revenue increases from FURREAL FRIENDS and SUPER SOAKER products. These increasesPLAYSKOOL products, were only partially offset by net revenue declines infrom LITTLEST PET SHOP and certain other Emerging Brands products during the first quarter of 2019. Quarter Ended U.S. and Canada segment $ 353.9 $ 448.4 $ 912.2 $ 661.1 $ 2,375.7 Entertainment, Licensing and Digital segment 74.4 75.5 96.8 109.6 356.3 U.S. and Canada segment $ (26.6 ) $ 73.1 $ 223.1 $ 100.7 $ 370.2 Entertainment, Licensing and Digital segment 17.1 21.8 37.1 (46.9 ) 29.1 March 31,September 29, 2019 and April 1,September 30, 2018: Quarter Ended September 29, 2019 September 30, 2018 %
Change U.S. and Canada segment $ 898.3 $ 912.2 -2 % International segment 561.1 560.7 — % Entertainment, Licensing and Digital segment 115.8 96.8 20 % U.S. and Canada segment $ 193.7 $ 223.1 -13 % International segment 67.2 66.3 1 % Entertainment, Licensing and Digital segment 24.6 37.1 -34 % April 1,September 30, 2018, revenues of $10.4$12.0 million, and operating profit of $3.2$3.5 million, were reclassified from the U.S. and Canada segment to the Entertainment, Licensing and Digital segment.firstthird quarter of 2019 increased 1%declined 2% compared to the firstthird quarter of 2018. Foreign currency translation did not have a significant impact on this segment's net revenues. Net revenues grewdeclined in the Franchise Brands Emergingand Hasbro Gaming portfolios, partially offset by net revenue increases in the Partner Brands, and to a lesser extent, the Hasbro Gaming portfolio. These increases were partially offset by net revenue declinesEmerging Brands portfolios during the third quarter of 2019. The implemented and proposed tariffs on certain U.S. products negatively impacted revenues in the Partner Brands portfolio during the firstthird quarter of 2019. Brands portfolio, net revenue increases from PLAY-DOH, MAGIC: THE GATHERING, TRANSFORMERS and MONOPOLY products were partially offset by lower net revenues from NERF, MY LITTLE PONY and BABY ALIVE products. In the Partner Brands portfolio, lower net revenues from STAR WARS, MARVEL, DREAMWORKS’ TROLLSNERF, BABY ALIVE, TRANSFORMERS and DISNEY’S DESCENDANTSMY LITTLE PONY products were partially offset by net revenue increases from BEYBLADE products as well asMAGIC: THE GATHERING products. In the Partner Brands portfolio, higher net revenues from the introduction of UGLYDOLLSDISNEY FROZEN, STAR WARS and MARVEL products and to a lesser extent, DISNEY’S DECENDANTS products, were partially offset by net revenue decreases from BEYBLADE and DISNEY PRINCESS products during the firstthird quarter of 2019. In the Hasbro Gaming portfolio, higherlower net revenues from DUEL MASTERSPIE FACE and certain other Hasbro Gaming brands products were partially offset by decreasedincreased net revenues from SPEAK OUT, as well as other Hasbro Gaming brandsDUNGEONS & DRAGONS products. In the Emerging Brands portfolio, the addition of net revenues from the Company’s POWER RANGERS and certain quick strike initiative products, as well as net revenue increases from FURREAL FRIENDS and SUPERSOAKERPLAYSKOOL products, contributed to net revenue increases during the first quarter of 2019. These increases were partially offset by net revenue declines infrom LITTLEST PET SHOP and certain other Emerging BrandsFURREAL FRIENDS products during the firstthird quarter of 2019.firstthird quarter of 2019 was $13.5$193.7 million, compared to segment operating lossesprofit of $26.6$223.1 million, for the firstthird quarter of 2018. The operating loss forprofit decrease in the firstthird quarter of 2018 included2019 was driven by lower revenues and increases in Partner Brand sales, which carry higher royalty expenses and result in lower operating profit.$52.3 million related to the Toys“R”Us liquidation in theimplemented and proposed tariffs on U.S. Absent these 2018 expenses, first quarter 2019 operating profit declined $12.2 million due to unfavorable product mix, higher intangible asset amortization associated with the POWER RANGERS acquisition and start-up expenses associated with a new U.S. warehouse, as well as higher product development costs during the first quarter of 2019.declined 2% to $282.6 millionwere essentially flat in the firstthird quarter of 2019 from $287.92019. Absent the impact of foreign exchange, International segment net revenues increased $20.3 million inor 4% during the firstthird quarter of 2018.2019. The following table presents net revenues by geographic region for the Company's International segment for the quarters ended March 31,September 29, 2019 and April 1,September 30, 2018.The decline in International segment net revenues during Quarter Ended September 29, 2019 September 30, 2018 %
ChangeEurope $ 319.3 331.4 -4 % Latin America 152.0 145.7 4 % Asia Pacific 89.9 83.6 7 % Net revenues $ 561.1 560.7 — % first quarter of 2019 was driven by anCompany's major geographic regions as follows: Europe - $11.7 million, Latin America - $6.1 million and Asia Pacific - $2.1 million. Absent the unfavorable foreign currency translation, net revenues for the third quarter of $23.4 million related to2019 were flat in Europe, up 9% in Latin America and up 10% in the Company’s European, Latin American and Asia Pacific regions. Absent the impact of foreign exchange, International segment net revenues increased $18.1 million or 6% during the first quarter of 2019.region. International segment net revenues from Partner Brands grew, net revenues from Franchise Brands and Hasbro Gaming anddeclined while Emerging Brands grew, Franchise Brands net revenues remained relatively flat while net revenues from Partner Brands declined during the firstthird quarter of 2019 compared to the firstthird quarter of 2018. In the Franchise Brands portfolio, higher net revenues from MAGIC: THE GATHERING and MONOPOLY products, were more than offset by lower net revenues from MY LITTLE PONY, TRANSFORMERS and MAGIC: THE GATHERINGBABY ALIVE products. In the Partner Brands portfolio, net revenue increases from DISNEY FROZEN and MARVEL products were partially offset by net revenue declines in DISNEY PRINCESS products. In the Hasbro Gaming portfolio, net revenue declines in PIE FACE products were partially offset by net revenue increases from DUNGEONS & DRAGONS products. In the Emerging Brands portfolio, net revenue contributions from POWER RANGERS products were offset by lower net revenues from LITTLEST PET SHOP, FURREAL FRIENDS and certain other Emerging Brands products in the third quarter of 2019. Nine Months Ended September 29, 2019 September 30, 2018 %
ChangeNet Revenues* U.S. and Canada segment $ 1,766.6 $ 1,714.5 3 % International segment 1,221.2 1,229.1 -1 % Entertainment, Licensing and Digital segment 304.3 246.7 23 % Operating Profit * U.S. and Canada segment $ 313.8 $ 269.5 16 % International segment 51.4 10.4 >100% Entertainment, Licensing and Digital segment 62.6 76.0 -18 % Nine Months Ended September 29, 2019 September 30, 2018 %
ChangeEurope $ 673.7 686.5 -2 % Latin America 305.1 308.1 -1 % Asia Pacific 242.4 234.5 3 % Net revenues $ 1,221.2 1,229.1 -1 % PartnerFranchise Brands were driven by lower sales of MARVELfrom MY LITTLE PONY and STAR WARSNERF products as well as lower sales of DISNEY PRINCESSpartially offset by higher net revenues from MAGIC: THE GATHERING and DISNEY FROZENMONOPOLY products. In the Hasbro GamingPartner Brands portfolio, higher net revenues from TWISTERMARVEL and CONNECT 4DISNEY FROZEN products were partially offset by lower net revenues from STAR WARS and DISNEY PRINCESS products. In the Hasbro Gaming portfolio, lower net revenues from PIE FACE and SPEAK OUT products were partially offset by net revenue increases from CONNECT 4 and certain other Hasbro Gaming brands.products. In the Emerging Brands portfolio, contributions from certain quick strike initiativethe introduction of the Company's POWER RANGERS products, as well as net revenue increases from PLAYSKOOL products were partially offset by lower net revenues from LITTLEST PET SHOP and FURREAL FRIENDS products in the first quarternine months of 2019.losses were $30.4profit was $51.4 million for the first quarternine months of 2019, compared toup from operating lossesprofit of $56.1$10.4 million for the first quarternine months of 2018. The 2018improvement in International segment operating lossresults for the first quarternine months of 2019 was the result of lower administrative, advertising and product development costs as well as lower distribution costs offset by higher intangible asset amortization costs. Operating profit for the first nine months of 2018 included expenses ofincludes $11.2 million of expenses related to the Toys“R”Us liquidation, primarily within in the United Kingdom. Absent these 2018 expenses, first quarter 2019 operating profit improved $14.5 million, driven by higher sales volume, cost-saving initiatives, lower royalty costs as a result of decreased revenues from Partner Brands, and favorable cost translation rates, all partially offset by higher intangible amortization associated with the POWER RANGERS acquisition.24%23% to $92.0$304.3 million from $246.7 million for the first quarter of 2019, compared to $74.4 million for the first quarter ofnine months ended September 30, 2018. Revenue growth was driven by MAGIC: THE GATHERING ARENAand higher consumer products licensing revenues.Entertainment, Licensing and Digital segment operating profit increasedthe Company's share of revenues related to $30 million forfirst quarter of 2019, from $17.1 million for the first quarter of 2018. Overall, the increase in 2018 theatrical release produced jointly with Paramount Pictures.primarily due to increased$62.6 million, or 20.6% of net revenues, noted abovefor the nine months ended September 29, 2019 down from $76.0 million, or 30.8% of segment net revenues, for the nine months ended September 30, 2018. The decline in operating profit in the Entertainment, Licensing and Digital segment was driven by higher program production expense and amortization costs as well as lower program amortization costs, partially offset by higherincreased advertising, development and administration costs for MAGIC: THE GATHERING ARENA and other digital gaming initiatives.$1.3$6.3 million for the first quarternine months of 2019 comparedcompares to an operating profitloss of $2.2$4.6 million for the first quarternine months of 2018. The decrease in operating profit is primarily attributable to lower sourcing volume in the first quarter of 2019 compared to the first quarter of 2018.The operatingtotaled $21.7for the first nine months of 2019 was $27.6 million, compared to operating losses of $30.8 million for the first quarter of 2019 compared to an operating loss of $17.0 million for the first quarternine months of 2018. Operating costsThe Corporate and Eliminations operating loss in the first quarternine months of 2018 included severance charges of $17.3 million and Toys“R”Us related costs of $7.0 million. The increase in operating profit was driven by cost-saving initiatives$7 million of expenses associated with the Toys“R”Us liquidation and lower stock compensation expense.March 31,September 29, 2019 and April 1,September 30, 2018. Quarter Ended September 29, 2019 September 30, 2018 Cost of sales 39.8 % 41.8 % Royalties 8.1 6.7 Product development 4.3 4.2 Advertising 8.9 8.6 Amortization of intangibles 0.8 0.6 Program production cost amortization 1.8 0.9 Selling, distribution and administration 17.5 17.4 increased 2% from $255.2for the third quarter of 2019 was $627.1 million, or 35.6%39.8% of net revenues, compared to $655.6 million, or 41.8% of net revenues, for the first quarter of 2018 to $260.0 million, or 35.5% of net revenues for the first quarter of 2019. Costs of sales increased in dollars primarily due to higher sales volumes compared to the first quarter of 2018. As a percent of net revenues, cost of sales was consistent with the first quarter of 2018.Royalty expense for the first quarter of 2019 was $59.9 million, or 8.2% of net revenues, compared to $69.7 million, or 9.7% of net revenues, for the first quarter of 2018. In the first quarter of 2018, royalty expense included accelerated royalty charges incurred as a result of the loss of Toys“R”Us product sales. Absent these charges 2018 royalty expense was $62.7 million or 8.7% of net revenues. Fluctuations in royalty expense are generally related to the volume of entertainment-driven products sold in a given period, especially if there is a major motion picture release. In the first quarter of 2019, the decrease in royalty expense both in dollars and as a percentage of revenues was driven primarily by declines in Partner Brand net revenues.Product development expense for the first quarter of 2019 was $56.3 million, or 7.7% of net revenues, compared to $57.4 million, or 8.0% of net revenues, for the firstthird quarter of 2018. The declinecost of sales decrease in dollars and as a percent of sales,net revenues was driven by lower global spendinga favorable brand mix from higher sales of Partner Brand products as well as savings related to improved inventory costing, partially offset by increased investment inhigher costs to bring inventory into the Company’s WizardsU.S. during the third quarter of the Coast business.Advertising2019 compared to 2018.firstthird quarter of 2019 was $76.6$128.0 million, or 10.5%8.1% of net revenues, compared to $68.0$105.3 million, or 9.5%6.7% of net revenues, for the firstthird quarter of 2018. The advertising expense increase in bothroyalty expense in dollars and as a percent of net revenues was driven by higher sales of Partner Brand products in the third quarter of 2019. the launch of the Company’s digital and e-sports initiatives, primarily MAGIC: THE GATHERING ARENA. intangiblesintangible assets was $11.8$11.8 million, or 1.6%0.8% of net revenues for the firstthird quarter of 2019, compared to $6.5$8.8 million, or 0.6% of net revenues, for the third quarter of 2018. The increase in dollars and as a percent of net revenues reflects amortization related to the licensed property rights, which began amortizing in 2019. Nine Months Ended September 29, 2019 September 30, 2018 Cost of sales 37.4 % 39.2 % Royalties 7.9 7.6 Product development 5.7 5.7 Advertising 9.4 9.1 Amortization of intangibles 1.1 0.6 Program production cost amortization 1.8 1.0 Selling, distribution and administration 22.7 26.8 quarternine months of 2019 was driven by a favorable brand mix from higher sales of Partner Brand products as well as savings related to improved inventory costing, partially offset by higher costs to bring inventory into the U.S.2018.costexpense and amortization decreasedincreased in the first nine months of 2019 to $6.6$58.1 million, or 0.9%1.8% of net revenues, for the first quarter of 2019 from $12.0$33.4 million, or 1.7%1.0% of net revenues, forin the first quarternine months of 2018. Program production costs are capitalized as incurred and amortized using the individual-film-forecast method. The decreaseincrease in dollars, and as a percent of net revenues, reflects expense related to film production assets, offset by lower television programming cost amortization from lower television programing revenues during the first quarternine months of 2019 as well as lower amortization expense of MY LITTLE PONY movie production costs.first quarter ofnine months ended September 29, 2019, the Company's selling, distribution and administration expenses decreased to $225.3$748.3 million or 30.8%22.7% of net revenues from $328.0$853.6 million or 45.8%26.8% of net revenues for the first quarter ofnine months ended September 30, 2018. In the first quarternine months of 2018, the Company’s selling, distribution and administration expenses included $60.3 million of bad debt and other expenses related to Toys“R”Us, as well as $17.3 million of severance costs related to the Company’s 2018 restructuring program. Absent these expenses,The remaining decrease in selling, distribution and administration expenses in the first quarter of 2018 were $250.4 million or 35.0% of net revenues. The remainder of the decrease was driven by cost-savings initiatives including lower stock compensation expense as well as other general cost decreases in the first quarter of 2019.expense. These decreases were partially offset by increased expenses related to the Company’s start-up ofopening a new Midwestern U.S. warehouse, higher shipping and warehousing costs in 2019 as well as expense increasesa result of implemented and proposed tariffs in the U.S., which resulted in shifting orders from import to domestic delivery. In addition, the Company incurred higher selling and administrative costs in support of the Company’s Wizards of the Coast business.infor the third quarter and first quarternine months of 2019 totaled $22.3$22.8 million and $67.1 million, respectively, compared to $22.8 million and $68.4 million in the third quarter and first nine months of 2018, respectively. Interest expense for the third quarter of 2018 driven by2019 was consistent with 2018. The decrease in interest expense for the first nine months of 2019 primarily reflects lower levels of short-term borrowing in 2019 compared to 2018.$7.6$5.5 million and $19.2 million for the third quarter and first nine months of 2019, respectively, compared to $4.7 million and $17.2 million in the third quarter and first quarternine months of 2019 compared to $6.2 million in the first quarter of 2018.2018, respectively. Higher average interest rates in 2019 compared to 2018 contributed to the increase.nine month increase offset by lower levels of invested cash in 2019.$8.1$0.6 million forand $6.2 million in the third quarter and first nine months of 2018, respectively. Included within other expense, net in the first nine months of 2019 was a $110.8 million non-cash pension charge from the settlement of the Company's U.S. defined benefit pension plan liability during the second quarter of 2019. Included within other expense, net in the third quarter of 2019 comparedwas a $25.5 million charge related to $8.6 million in the first quarter of 2018. The decrease in the first quarter was driven by lower earnings from the Company’s joint venture with Discovery as well as higher pension expense, partially offset by higherunrealized losses on foreign exchange gains in 2019 comparedforward and option contracts entered into by the Company to 2018.matters that have not been completed, provisional amounts are recorded to the extent they can be reasonably estimated. For amounts for which a reasonable estimate cannot be determined, no adjustment is made until such estimate can be completed. For the first quarter of 2018, the Company obtained additional information affecting the provisional amount initially recorded in the fourth quarter of 2017. As a result, the Company recorded a one-time tax expense of $47.8 million which reversed certain discrete benefits recorded in 2017 as well as increased our provisional deemed repatriation tax liability.$2.9$46.8 million on pre-tax earnings of $29.6$259.7 million in the firstthird quarter of 2019 compared to income tax expense of $24.1$31.9 million on pre-tax lossearnings of $88.4$295.8 million in the firstthird quarter of 2018. For the nine month period, income tax expense totaled $42.3 million on pre-tax earnings of $295.4 million in 2019 compared to income tax expense of $63.9 million on pre-tax earnings of $275.5 million in 2018. Both periods were impacted by discrete tax events including the accrual of potential interest and penalties on uncertain tax positions. During the first quarternine months of 2019, favorable discrete tax adjustments were a net benefit of $2.6$31.7 million compared to a net expense of $34.9$10.6 million in the first quarternine months of 2018. The favorable discrete tax adjustments for the first quarternine months of 2019 primarily relate to the settlement of the U.S. defined benefit pension plan liability, excess tax benefits on share-based payments and expiration of statutes of limitationslimitation for uncertain tax positions. The unfavorable discrete tax adjustments for the first nine months of 2018 primarily related to changes in guidance on U.S. tax reform, which resulted in the reversal of a tax benefit recorded in 2017 and additional repatriation tax liability, partially offset by excess tax benefits on share-based payments and audit settlements. Absent discrete items, the adjusted tax raterates for the first quartersnine months of 2019 and 2018 were 18.5%18.2% and 16.5%17.6%, respectively. The increase in the adjusted tax rate of 18.5%18.2% for the first quarter ofnine months ended September 29, 2019 is primarily due to the mix of jurisdictions where the Company earned its profits.Financial Accounting Standards Board (“FASB”)FASB issued Accounting Standards Update 2016-02 (ASU 2016-02), Leases (Topic 842), which requires lessees to recognize a right-of-use asset and a lease liability for virtually all leases. The liability is based on the present value of lease payments and the asset is based on the liability. For income statement purposes, a dual model was retained requiring leases to be either classified as operating or finance. Operating leases result in straight-line expense while finance leases result in a front-loaded expense pattern. Certain other quantitative and qualitative disclosures are also required. ASU 2016-02 is required for public companies for fiscal years beginning after December 15, 2018. ASU 2016-02 as originally issued required modified retrospective adoption. In July 2018, the FASB issued ASU 2018-11, which provides an alternative transition method in addition to the existing method by allowing entities to apply ASU 2016-02 as of the adoption date and recognize a cumulative effect adjustment to the opening balance of retained earnings in the period of adoption. The Company adopted ASU-2016-02 on December 31, 2018 using the retrospective basis as provided in ASU 2018-11. No cumulative effect was recorded to retained earnings. The Company also elected certain practical expedients as provided under the standard. These included (i) the election not to reassess whether contracts existing at the adoption date contain a lease under the new definition of a lease under the standard; (ii) the election not to reassess the lease classification for existing leases as of the adoption date; (iii) the election not to reassess whether previously capitalized initial direct costs would qualify for capitalization under the standard; (iv) the election to use hindsight in determining the relevant lease terms for use in the capitalization of the lease liability; and (v) the election to use hindsight in reviewing the right-of-use assets for impairment. For all leases, the terms were evaluated, including extension and renewal options as well as the lease payments associated with the leases. As a result of the adoption of the standard, in the first quarter of 2019, the Company recorded right-of-use assets of $121.2 million and lease liabilities of $139.5 million. The Company’s results of operations were not impacted by this standard. The adoption of this standard did not have an impact on the Company’s cash flows. For further details, see Note 10 to the consolidated financial statements, which are included in Part I of this Form 10-Q.current quarterquarters and comparative prior quarter,year-to-date periods ending September 29, 2019 and September 30, 2018, in Part I, Item 1 of this Form 10-Q.quarternine months of 2019 and 2018 the Company funded its operations and liquidity needs primarily through cash flows from operations and when needed, used borrowings under its available lines of credit.forover the remainder of 2019.next twelve months. However, unexpected events or circumstances such as material operating losses or increased capital or other expenditures or inability to otherwise access the commercial paper market, may reduce or eliminate the availability of external financial resources. In addition, significant disruptions to credit markets may also reduce or eliminate the availability of external financial resources. Although management believes the risk of nonperformance by the counterparties to the Company's financial facilities is not significant, in times of severe economic downturn in the credit markets it is possible that one or more sources of external financing may be unable or unwilling to provide funding to the Company.March 31,September 29, 2019, the Company's cash and cash equivalents totaled $1,196.6$1,060.4 million. Prior to 2017, deferred income taxes had not been provided on the majority of undistributed earnings of international subsidiaries as such earnings were considered indefinitely reinvested by the Company. The Tax Act provided significant changes to the U.S. tax system including the elimination of the ability to defer U.S. income tax on unrepatriated earnings by imposing a one-time mandatory deemed repatriation tax on undistributed foreign earnings. As of March 31,September 29, 2019, the Company has recorded a total liability of $273.2$192.9 million related to this tax, $14.5$18.4 million is reflected in current liabilities while the remaining long-term payable related to the Tax Act of $258.7$174.5 million is presented within other liabilities, non-current on the Consolidated Balance Sheets. As permitted by the Tax Act, the Company will pay the transition tax in annual interest-free installments through 2025. As a result, the related earnings in foreign jurisdictions are available with greater investment flexibility. The majority of the Company’s cash and cash equivalents held outside of the United States as of March 31,September 29, 2019 is denominated in the U.S. dollar. September 29, 2019 September 30, 2018 Cash and cash equivalents $ 1,060.4 907.1 17 % Accounts receivable, net 1,416.9 1,391.2 2 % Inventories 589.1 610.9 -4 % Prepaid expenses and other current assets 346.7 283.2 22 % Other assets 626.2 743.1 -16 % Accounts payable and accrued liabilities 1,458.8 1,301.6 12 % Other liabilities 550.8 591.4 -7 % 4%2% to $638.4$1,416.9 million at March 31,September 29, 2019, compared to $612.7$1,391.2 million at April 1,September 30, 2018. Absent the $37.3$28.7 million impact of foreign currency translation, accounts receivable increased approximately 10% compared to revenue growth, absent foreign currency, of 6% in the first quarter of 2019 compared to 2018.4%. Accounts receivable, net at April 1,September 30, 2018 included a $77.0 million allowance for doubtful accounts related to Toys“R”Us, which was settled and written-off in the fourth quarter of 2018.Us. Days sales outstanding increased to 7982 days at March 31,September 29, 2019 from 7881 days at April 1, 2018,September 30, 2018.timing of collections.Inventories decreased 5% to $491.8 million at March 31, 2019 from $517.4 million at April 1, 2018. Absent the $28.4 million impact of foreign exchange, inventories at March 31, 2019 increased slightly as a result of higher inventories in theproposed U.S. as the Company continues to clear though higher than normal inventories levels remaining from the fourth quarter of 2018, offset by inventory reductions in the Company’s European and Latin America markets.4%22% to $305.1$346.7 million at March 31,September 29, 2019 from $292.8$283.2 million at April 1,September 30, 2018. Absent the $9.3 million impact of foreign currency translation, prepaid expenses increased approximately 7%. The increase was due to higher accrued royalty income, higher unrealized gains on foreign exchange contracts, higher prepaid royalty balances as well as approximately $19 million of deferred financing costs recorded to current assets in relation to the Bridge Facility, used to secure funding for the proposed purchase of eOne. At September 29, 2019, there are no borrowings under these facilities. In addition, as a result of the settlement of the Company's U.S. defined benefit pension plan liability, the Company had excess assets of approximately $19 million of which $8 million is recorded as a current asset and accrued foreign tax credits relatedwill be used to certain television and movie productions costs.fund future Company contributions to the Company's 401(k) plan in the U.S. These increases were partially offset by lower prepaid advertising balances due toas a result of the timing of payments in 2019 compared to 2018 and lower prepaid taxes, both value-added taxes and income taxes.increaseddecreased approximately 12%16% to $739.7$626.2 million at March 31,September 29, 2019 from $660.3$743.1 million at April 1,September 30, 2018. The increasedecrease was primarily relateddue to higher capitalized movie and television production costs, netlower deferred tax asset balances as a result of related production rebates, primarily fora reclassification of certain deferred tax assets to reduce the Company’s share of costs related to BUMBLEBEE, the 2018 theatrical release produced jointly with Paramount Pictures, as well as higherCompany's transition tax liability, lower long-term receivable balances related to third-party production studio rebates, lower capitalized movie production costs as a result of amortization of certain production assets during the fourth quarter of 2018 and the long-term portionfirst nine months of a multi-year digital distribution agreement for Hasbro television programming entered into in the third quarter of 2018.2019. These increasesdecreases were partially offset by a lower balance in the Company’s investment in Discovery Family Channelabove mentioned pension surplus as a result of dividend distributionsthe settlement of the Company's U.S. defined benefit pension plan liability of which approximately $12 million is recorded in other assets, higher capitalized television production costs, net of production rebates and lowerhigher long-term accrued royalty advance balances. 13%12% to $935.3$1,458.8 million at March 31,September 29, 2019 from $830.9$1,301.6 million at April 1,September 30, 2018. Increases include higher accrued advertising primarily related to MAGIC: THE GATHERING ARENA, deferred option premiums of approximately $34 million, recorded to accrued liabilities, to hedge a portion of the Company's exposure to fluctuations in the British pound sterling in relation to the acquisition of eOne, higher severance chargesaccrual related to the Company’srestructuring actions taken in the fourth quarter of 2018, restructuring program, higher deferred revenue balances primarily related to MAGIC: THE GATHERING ARENA and other digital gaming initiatives, as well as the Company’s current lease liability balance of $29.5$29.3 million included in accrued liabilities beginning in the first quarter of 2019 as the result of the adoption of ASU 2016-02 and higher accrued royalty balances as a result of higher sales of Partner Brands products during the $12.5 million remaining liability due to Saban Properties related to the Power Rangers acquisition.third quarter of 2019. These increases were partially offset by the payment of remaining amounts due to Saban Properties for the Power Rangers brand acquisition and lower accounts payableaccrued value added tax balances andin the first nine months of 2019.lowerdecrease in the transition tax liability reflecting the reclassification of certain deferred tax assets to reduce the transition tax liability as well as the 2019 installment payment, a decrease in the liability for foreign currency forward contractsuncertain tax positions and lower long-term pension balances as thea result of a strengtheningthe settlement of the Company's U.S. dollar against certain foreign currenciesdefined benefit pension plan liability in 2019.Other liabilities increased 4% to $636.1 million at March 31, 2019 from $611.2 million at April 1, 2018. The increase is primarily due to These decreases were partially offset by the adoption of ASU 2016-02 in 2019 which requires the recognition of the long-term lease liability balance,balances, which was $129.3were $115.0 million as of March 31,September 29, 2019. This increase was partially offset by a decrease in the liability for uncertain tax positions reflecting changes in management judgement and lower long-term pension balances.quarternine months of 2019 was $264.5$389.6 million compared to $317.7$174.7 million in the first quarternine months of 2018. The reductionincrease in cash flow from operations primarily reflects higher collections of accounts receivable balancesearnings, adjusted for non-cash items, in the first quarternine months of 2018 due2019 as compared to the higher ending balancesfirst nine months of 2018. To a lesser extent the increase in the prior fiscal year-end period.$27.0$86.5 million in the first quarternine months of 2019 compared to $26.2$250.9 million in the first quarternine months of 2018. Additions to property, plant and equipment were $25.2$90.8 million in the first quarternine months of 2019 compared to $28.2$104.0 million in the first quarternine months of 2018.$220.4$417.2 million in the first quarternine months of 2019 compared to $275.7$578.6 million in the first quarternine months of 2018. Net proceeds from short-term borrowings were $3.4 millionThe decline in the first quarter of 2019 compared to netcash utilized in financing activities was driven by:$133.7$130.2 million in the first quarternine months of 2018. Cash2019, compared to 2018, due to lower short-term borrowings in 2019.$47.5$60.1 million in the first quarternine months of 2019 compared to $38.1$187.9 million in the first quarternine months of 2018. At March 31, 2019, the Company had $378.8 million remaining available under its current share repurchase authorization approved by the Board of Directors. Dividends paid in the first quarter of 2019 totaled $79.3 million compared to $70.8 million in the first quarter of 2018 reflecting a higher dividend rate on the February 2019 dividend payment compared to the February 2018 dividend payment. During the first quarter of 2019, related to the 2018 POWER RANGERS acquisition, the Company paid $87.5 million to Saban Properties which consisted of a $75.0 million deferred purchase price payment and $12.5 million released from escrow. As of March 31, 2019, $12.5 million remains held in escrow and is scheduled to be paid to Saban Properties in June 2019. Financing activities in the first quarter of 2019 and 2018 include payments of $11.9 million and $52.6 million, respectively, relating toawards.March 31,September 29, 2019, the Company had no outstanding borrowings related to the Program.Thehasentered into a second amended and restated revolving credit agreement with BofA, as administrative agent, swing line lender and a letter of credit issuer and certain other financial institutions, as lenders thereto (the "Agreement""Revolving Credit Agreement"), which provides itthe Company with commitments having a maximum aggregate principal amount of $1,500.0 million, comprised of (1) $1,100.0 million of commitments effective as of September 20, 2019, and (2) $400.0 million of commitments that may become effective upon completion of the acquisition of eOne. The 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. The Revolving Credit Agreement also provides for a potential additional incremental commitment increase of up to $500.0 million subject to agreement of the lenders. Prior to the September 2019 amendment, the Revolving Credit Agreement provided for a $1,100.0 million revolving credit facility. The Company was in compliance with all covenants as of and for the quarter ended September 29, 2019. The Company had no borrowings outstanding under its committed borrowing facility.revolving credit facility as of September 29, 2019. However, the Company had letters of credit outstanding under this facility as of September 29, 2019 of approximately $2.7 million. Amounts available and unused under the committed line, as of September 29, 2019 were approximately $1,497.3 million. The Company also has other uncommitted lines from various banks, of which approximately $22.4 million was utilized as of September 29, 2019, including $14.5 million of outstanding letters of credit and $7.9 million of outstanding borrowings. The Agreement also provides for a potential additional incremental commitment increase of up to $500.0 million. The Company was in compliance with all covenants as of and for the quarter ended March 31, 2019. The Company had no borrowings outstanding under its committed revolving credit facility at March 31, 2019. However, the Company had letters of credit outstanding under this facility as of March 31, 2019 of approximately $1.5 million. Amounts available and unused under the committed line, as of March 31, 2019 were approximately $1,098.5 million. The Company also has other uncommitted lines from various banks, of which approximately $26.0 million was utilized at March 31, 2019, including $12.6 million of outstanding letters of credit and $13.4 million of outstanding borrowings.March 31,September 29, 2019 of $1,709.9 million, due at varying times from 2021 through 2044. The Company also had letters of credit of approximately $14.0$17.2 million and purchase commitments of approximately $496.1$763.8 million outstanding at March 31,September 29, 2019.positionsMarch 31,September 29, 2019, these contracts had net unrealized gains of $32.3$42.5 million, of which $22.8$43.6 million of unrealized gains are recorded in prepaid expenses and other current assets, and $9.5$10.4 million of unrealized gains are recorded in other assets.assets and $11.5 million of unrealized losses are recorded in accrued liabilities. Included in accumulated other comprehensive loss at March 31,September 29, 2019 are deferred gains, net of tax, of $24.3$23.7 million, related to these derivatives.March 31,September 29, 2019, the Company had fixed rate long-term debt of $1,709.9 million. Of this long-term debt, $600 million represents the aggregate issuance of long-term debt in May 2014 which consists of $300 million of 3.15% Notes Due 2021 and $300 million of 5.10% Notes Due 2044. Prior to the debt issuance, the Company entered into forward-starting interest rate swap agreements with a total notional value of $500 million to hedge the anticipated underlying U.S. Treasury interest rate. These interest rate swaps were matched with this debt issuance and were designated and effective as hedges of the change in future interest payments. At the date of debt issuance, the Company terminated these interest rate swap agreements and their fair value at the date of issuance was recorded in accumulated other comprehensive loss and is being amortized through the consolidated statements of operations using an effective interest rate method over the life of the related debt. Included in accumulated other comprehensive loss at March 31,September 29, 2019 are deferred losses, net of tax, of $19.0$18.3 million related to these derivatives.Item 3.Item 4.March 31,September 29, 2019. Based on the evaluation of these disclosure controls and procedures, the Chief Executive Officer and Chief Financial Officer concluded that the Company's disclosure controls and procedures were effective.March 31,September 29, 2019 that have materially affected, or are reasonably likely to materially affect, the Company's internal control over financial reporting.Item 1. allegesalleged violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, as amended, alleging that Defendants purportedly made materially false and misleading statements in connection with the financial condition of Toys“R”Us, Inc. and its impact on the Company, as well as the financial impact on the Company’s business of economic conditions in the United Kingdom and Brazil. Defendants deny liability and intend to vigorously defendOn October 18, 2019, the action.Item 1A. concerningconcerning: the Company's product and entertainment plans,plans; anticipated product and entertainment performance,performance; business opportunities and strategies,strategies; financial and business goals expectations for achieving the Company's goals and objectives,objectives; anticipated expenses, cost savings and efficiency enhancing initiatives and other objectives,objectives; anticipated impact of, and actions taken in response to, the imposition of tariffs in certain markets; anticipated uses of cash,cash; and the timing of the completion of the termination ofexpectations relating to the Company’s pension plan.proposed acquisition of eOne. These statements may be identified by the use of forward-looking words or phrases such as "anticipate," "believe," "could," "expect," "intend," "look forward," "may," "planned," "potential," "should," "will," and "would" or any variations of words with similar meanings. These forward-looking statements are inherently subject to known and unknown risks and uncertainties.The Company has included, under Item 1A, Part I of its Annual Report on Form 10-K, for the year ended December 30, 2018 (the "Annual Report"), a discussion of factorsFactors which may impact these forward-looking statements.statements are included in our Annual Report. In furtherance, and not in limitation, of the more detailed discussion set forth in the Annual Report, specific factors that might cause such a difference include, but are not limited to:· · · · · the success of the Company’s key partner brands, and the Company’s ability to maintain and extend solid relationships with its key partners;· successful brand and/or product introductions from competitors that capture market share and sales from the Company;· the Company's ability to source and ship products in a timely and cost-effective manner and customers' and consumers' acceptance and purchase of those products in quantities and at prices that will be sufficient to profitably recover the Company's costs for developing, marketing and selling those products;· the Company’s ability to successfully evolve and transform its business to address a changing global consumer landscape and retail environment, one in which online shopping and digital first marketing are becoming more and more critical and traditional retailers face challenges from disintermediation, and difficulties or delays the Company may experience in successfully implementing and developing new capabilities and making the changes to its business that are required to be successful under these changing marketplace conditions;· recessions, other economic downturns, challenging economic conditions, unfavorable changes in exchange rates or economic uncertainty affecting one or more of the Company's significant markets including, without limitation, the United Kingdom, Brazil and Russia, which can negatively impact the financial health of the Company's customers and consumers, and which can result in lower employment levels, lower consumer disposable income and lower consumer spending, including lower retailer inventories and spending on purchases of the Company's products;· currency fluctuations, including movements in foreign exchange rates, which can lower the Company's net revenues and earnings, and significantly impact the Company's costs;· other economic and public health conditions or regulatory changes in the markets in which the Company and its customers and suppliers operate, which could create delays or increase the Company's costs, such as higher commodity prices, labor costs or higher transportation costs, or outbreaks of diseases;· other risks associated with international operations, including in emerging markets which have unique consumer preferences and business climates;· delays, increased costs, lack of consumer acceptance or other difficulties associated with the development and offering of our or our partners' entertainment, digital or media initiatives;· the risk that the market appeal of the Company's licensed products will be less than expected or that sales revenue generated by these products will be insufficient to cover the minimum guaranteed royalties or other commitments;· the concentration of the Company's customers, potentially increasing the negative impact to the Company of difficulties, including bankruptcies, experienced by any of the Company's customers or changes in their purchasing or selling patterns;· an adverse change in purchasing policies or promotional programs, or the bankruptcy or other economic difficulties or lack of success, of one or more of the Company's significant retailers comprising its relatively concentrated retail customer base, which could negatively impact the Company's revenues or bad debt exposure;· the impact of the bankruptcy of Toys“R”Us in the U.S., Canada and the United Kingdom, and the subsequent liquidation of the Toys“R”Us business in the U.S. and the United Kingdom, as well as the economic difficulty of Toys“R”Us in other markets, or the bankruptcy or lack of success of a smaller retail customer of the Company, such as Sears Holdings Corporation, any of which could negatively impact the Company’s revenues, result in lost sales to customers, create bad debt expense and create other challenges for the Company and its financial performance as the Company attempts to recapture this lost business through other customers or channels, and any inability or delay of the Company in recapturing all of the lost business;· uncertainty as to the future of the Toys“R”Us business elsewhere in the world, and associated reductions in sales to Toys“R”Us or bad debt expenses;· the Company's ability to generate sales during the second half of the year, particularly during the relatively brief holiday shopping season, which is the period in which the Company derives a substantial portion of its revenues and earnings;· the inventory policies of the Company's retail and e-commerce customers, including potential decisions to lower their inventories, even if it results in lost sales, as well as the concentration of the Company's revenues in the second half of the year, which coupled with reliance by retailers on quick response inventory management techniques, increases the risk of underproduction of popular items, overproduction of less popular items and failure to achieve compressed shipping schedules;· the impact of retail inventory overhang in one or more of our key markets, which can reduce purchases of our products from our customers and lower our revenues and profitability;· our ability to evolve our business quickly and efficiently to respond to the challenges of today’s converged retail environment;· work stoppages or disruptions which may impact the Company's ability to manufacture or deliver products in a timely and cost-effective manner;· concentration of manufacturing of the substantial majority of the Company's products by third party vendors in the People's Republic of China and the associated impact to the Company of social, economic or public health conditions and other factors affecting China, the movement of people and products into and out of China, the cost of producing products in China and the cost of exporting them to the Company's other markets or affecting the exchange rates for the Chinese Renminbi, including, without limitation, the potential application of tariffs or other trade restrictions to some or all of the goods manufactured for the Company in China and exported to other markets, which could significantly increase the price of the Company’s products and substantially harm sales if applied to any significant amount of the Company’s products;· · sales;· sales, including, without limitation, through the elimination of direct import orders where our customers take ownership of products at ports near the source of supply, and the shift to domestic orders, which require us to ship the products to the market, import them and warehouse them, thus raising costs to us, delaying the time of sale, and resulting in the potential loss of some orders entirely due to lack of timely supply or other matters;· · · • · · · · · · · the risk that anticipated benefits of acquisitions or investments may not occur or be delayed or reduced in their realization;· the risk that any litigation or arbitration disputes or government and regulatory investigations could entail significant resources and expense and result in significant fines or other harm to the Company's business or reputation;· · · · · · · · · foreign exchange rates and other potential regulations, increased costs and/or economic uncertainty associated with the United Kingdom (“UK”)U.K. vote to leave the European Union (“EU”), commonly referred to as Brexit, which may make it more difficult and/or costly for us to supply products to the UK or other parts of the EU, harm our sales and lower the profitability of our business in the UKU.K. and the EU; or· Item 2. Period July 2019 7/1/19 – 7/28/19 9,500 $ 104.85 9,500 $ 368,350,052 August 2019 7/29/19 – 9/1/19 4,845 $ 104.76 4,845 $ 367,842,467 September 2019 9/2/19 – 9/29/19 — $ — — $ 367,842,467 Total 14,345 $ 104.82 14,345 $ 367,842,467 thethere is no expiration date. The timing, actual number, and value of the shares that are repurchased will depend on a number of factors, including the price of the Company's stock and the Company’s generation of, and uses for, cash. TheAs a result of the Company's equity financing plan related to its proposed acquisition of eOne, the Company mayplans to suspend or discontinueits share repurchase program for the program at any time and there is no expiration date.being. See Footnote 1, “Basis of Presentation,” to the Consolidated Financial Statements for further discussion.Item 3. None.Item 4. Item 5. None.Item 6. Exhibits.2.1 2.2 3.1 3.2 3.3 3.4 3.5 3.6 3.7 3.8 3.9 4.1 4.2 4.3 4.4 4.5 4.6 4.7 10.1 10.2 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 10.10 Hasbro, Inc. 2019 Performance Rewards Program.101.INS XBRL Instance Document101.SCH XBRL Taxonomy Extension Schema Document101.CAL XBRL Taxonomy Extension Calculation Linkbase Document101.LAB XBRL Taxonomy Extension Labels Linkbase Document101.PRE XBRL Taxonomy Extension Presentation Linkbase Document101.DEF XBRL Taxonomy Extension Definition Linkbase Document HASBRO, INC. (Registrant)HASBRO, INC. (Registrant) Date: May 1,October 22, 2019