Cover
Cover - shares | 9 Months Ended | |
Sep. 29, 2019 | Oct. 18, 2019 | |
Cover page. | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 29, 2019 | |
Document Transition Report | false | |
Entity File Number | 1-6682 | |
Entity Registrant Name | HASBRO, INC. | |
Entity Central Index Key | 0000046080 | |
Current Fiscal Year End Date | --12-29 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Incorporation, State or Country Code | RI | |
Entity Tax Identification Number | 05-0155090 | |
Entity Address, Address Line One | 1027 Newport Avenue | |
Entity Address, City or Town | Pawtucket, | |
Entity Address, State or Province | RI | |
Entity Address, Postal Zip Code | 02861 | |
City Area Code | 401 | |
Local Phone Number | 431-8697 | |
Title of 12(b) Security | Common Stock, $0.50 par value per share | |
Trading Symbol | HAS | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 126,253,142 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 29, 2019 | Dec. 30, 2018 | Sep. 30, 2018 |
Current assets | |||
Cash and cash equivalents | $ 1,060,432 | $ 1,182,371 | $ 907,107 |
Accounts receivable, less allowance for doubtful accounts of $18,200 $96,000 and $9,100 | 1,416,879 | 1,188,052 | 1,391,242 |
Inventories | 589,132 | 443,383 | 610,918 |
Prepaid expenses and other current assets | 346,687 | 268,698 | 283,183 |
Total current assets | 3,413,130 | 3,082,504 | 3,192,450 |
Property, plant and equipment, less accumulated depreciation of $496,700 $452,000 and $462,700 | 371,881 | 256,473 | 255,150 |
Other assets | |||
Goodwill | 485,042 | 485,881 | 572,387 |
Other intangible assets, net of accumulated amortization of $771,700 $924,700 and $721,700 | 658,350 | 693,842 | 732,235 |
Other | 626,221 | 744,288 | 743,107 |
Total other assets | 1,769,613 | 1,924,011 | 2,047,729 |
Total assets | 5,554,624 | 5,262,988 | 5,495,329 |
Current liabilities | |||
Short-term borrowings | 7,903 | 9,740 | 20,307 |
Accounts payable | 501,136 | 333,521 | 458,808 |
Accrued liabilities | 957,696 | 931,063 | 842,808 |
Total current liabilities | 1,466,735 | 1,274,324 | 1,321,923 |
Long-term debt | 1,696,204 | 1,695,092 | 1,694,721 |
Other liabilities | 550,778 | 539,086 | 591,404 |
Total liabilities | 3,713,717 | 3,508,502 | 3,608,048 |
Shareholders' equity | |||
Preference stock of $2.50 par value. Authorized 5,000,000 shares; none issued | 0 | 0 | 0 |
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 | 1,275,059 | 1,282,405 |
Retained earnings | 4,180,331 | 4,184,374 | 4,254,919 |
Accumulated other comprehensive loss | (185,376) | (294,514) | (296,738) |
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) | (3,515,280) | (3,458,152) |
Total shareholders' equity | 1,840,907 | 1,754,486 | 1,887,281 |
Total liabilities and shareholders' equity | $ 5,554,624 | $ 5,262,988 | $ 5,495,329 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) Parenthetical - USD ($) $ in Thousands | Sep. 29, 2019 | Dec. 30, 2018 | Sep. 30, 2018 |
Current assets | |||
Accounts receivable, allowance for doubtful accounts | $ 18,200 | $ 9,100 | $ 96,000 |
Property, plant and equipment, accumulated depreciation | 496,700 | 462,700 | 452,000 |
Other assets | |||
Other intangibles, accumulated amortization | $ 771,700 | $ 721,700 | $ 924,700 |
Shareholders' equity | |||
Preference stock, par value (in dollars per share) | $ 2.5 | $ 2.5 | $ 2.5 |
Preference stock, authorized shares (in shares) | 5,000,000 | 5,000,000 | 5,000,000 |
Preference stock, issued (in shares) | 0 | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.5 | $ 0.5 | $ 0.5 |
Common stock, authorized shares (in shares) | 600,000,000 | 600,000,000 | 600,000,000 |
Common stock, issued (in shares) | 209,694,630 | 209,694,630 | 209,694,630 |
Treasury stock, at cost; shares (in shares) | 83,442,005 | 83,565,598 | 82,979,119 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2019 | Sep. 30, 2018 | Sep. 29, 2019 | Sep. 30, 2018 | |
Income Statement [Abstract] | ||||
Net 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 (loss) per common share: | ||||
Basic (in dollars per share) | $ 1.68 | $ 2.08 | $ 2 | $ 1.68 |
Diluted (in dollars per share) | 1.67 | 2.06 | 1.99 | 1.67 |
Cash dividends declared per common share (in dollars per share) | $ 0.68 | $ 0.63 | $ 2.04 | $ 1.89 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Earnings (Loss) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2019 | Sep. 30, 2018 | Sep. 29, 2019 | Sep. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Net 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 | 14,027 | ||
Net gains on cash flow hedging activities, net of tax | 5,323 | 23,765 | ||
Changes in unrecognized pension amounts, net of tax | 0 | 0 | 19,589 | (26,058) |
Reclassifications to earnings, net of tax: | ||||
Net (gains) losses on cash flow hedging activities | (5,392) | (10,188) | ||
Net (gains) losses on cash flow hedging activities | (1,672) | 5,318 | ||
Amortization of unrecognized pension and postretirement amounts | 279 | 2,066 | 5,578 | 6,398 |
Settlement of U.S. defined benefit plan | 0 | 0 | 85,852 | 0 |
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 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 29, 2019 | Sep. 30, 2018 | |
Cash 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 | 0 |
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 | 0 | (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) | 0 |
Debt acquisition costs | (21,534) | 0 |
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 |
Cash paid during the period for: | ||
Interest | 69,601 | 69,603 |
Income taxes | $ 64,917 | $ 87,704 |
Consolidated Statements of Shar
Consolidated Statements of Shareholder's Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Treasury Stock | Total Shareholders' Equity |
Balance at Dec. 31, 2017 | $ 1,829,957 | $ 104,847 | $ 1,050,605 | $ 4,260,222 | $ (239,425) | $ (3,346,292) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net earnings | 211,668 | 211,668 | $ 211,668 | ||||
Issuance of shares for Saban purchase | 198,853 | 81,544 | 280,397 | ||||
Other comprehensive earnings (loss) | (35,810) | (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 at Sep. 30, 2018 | 1,887,281 | 104,847 | 1,282,405 | 4,254,919 | (296,738) | (3,458,152) | 1,887,281 |
Balance at Jul. 01, 2018 | 1,766,750 | 104,847 | 1,263,657 | 4,070,661 | (295,076) | (3,377,339) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net earnings | 263,861 | 263,861 | |||||
Issuance of shares for Saban purchase | 0 | ||||||
Other comprehensive earnings (loss) | (1,662) | (1,662) | |||||
Stock-based compensation transactions | 5,112 | 6,470 | (1,358) | ||||
Purchases of common stock | (79,455) | (79,455) | |||||
Stock-based compensation expense | 12,278 | 12,278 | |||||
Dividends declared | (79,603) | (79,603) | |||||
Balance at Sep. 30, 2018 | 1,887,281 | 104,847 | 1,282,405 | 4,254,919 | (296,738) | (3,458,152) | 1,887,281 |
Balance at Dec. 30, 2018 | 1,754,486 | 104,847 | 1,275,059 | 4,184,374 | (294,514) | (3,515,280) | 1,754,486 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net earnings | 253,109 | 253,109 | 253,109 | ||||
Other comprehensive earnings (loss) | 109,138 | 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 at Sep. 29, 2019 | 1,840,907 | 104,847 | 1,301,366 | 4,180,331 | (185,376) | (3,560,261) | 1,840,907 |
Balance at Jun. 30, 2019 | 1,715,869 | 104,847 | 1,290,540 | 4,053,266 | (173,175) | (3,559,609) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net earnings | 212,949 | 212,949 | |||||
Other comprehensive earnings (loss) | (12,201) | (12,201) | |||||
Stock-based compensation transactions | 2,785 | 1,933 | 852 | ||||
Purchases of common stock | (1,504) | (1,504) | |||||
Stock-based compensation expense | 8,893 | 8,893 | |||||
Dividends declared | (85,884) | (85,884) | |||||
Balance at Sep. 29, 2019 | $ 1,840,907 | $ 104,847 | $ 1,301,366 | $ 4,180,331 | $ (185,376) | $ (3,560,261) | $ 1,840,907 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 29, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation In the opinion of management, the accompanying unaudited interim consolidated financial statements contain all normal and recurring adjustments necessary to present fairly the consolidated financial position of Hasbro, Inc. and all majority-owned subsidiaries ("Hasbro" or the "Company") as of September 29, 2019 and September 30, 2018 , and the results of its operations and cash flows and shareholders' equity for the periods then ended in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP"). The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and notes thereto. Actual results could differ from those estimates. The quarters ended September 29, 2019 and September 30, 2018 were each 13 -week periods. The nine month periods ended September 29, 2019 and September 30, 2018 were each 39 -week periods. The results of operations for the quarter and nine month periods ended September 29, 2019 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. Certain reclassifications have been made to prior year amounts to conform to the current period presentation. 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 Standards The 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 was 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 Pronouncements In 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 expects to adopt the standard at the start of fiscal year 2020 and is currently evaluating the standard and the impact, if any, to its consolidated financial statements. Recent Events On August 22, 2019, the Company and Entertainment One Ltd. ("eOne") entered into a definitive agreement under which the Company will acquire all of the outstanding shares of stock of eOne in an all-cash transaction valued at approximately £3,300,000 , or $4,000,000 based on exchange 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. The Company hedged a portion of its exposure to fluctuations in the British pound sterling in relation to the acquisition purchase price 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 after-tax losses of $25,533 on these instruments to other (income) expense, net for the quarter and nine month periods ended September 29, 2019. See Note 9, Derivative Financial Instruments for further details. The Company expects to finance the transaction with a combination of debt and equity financing. On August 22, 2019, the Company entered into a debt commitment letter with Bank of America, N.A. ("BofA") and BofA Securities Inc., pursuant to which BofA (and certain of its affiliates) committed to provide a 364-day senior unsecured bridge loan facility in an aggregate principal amount of up to £3,600,000 to provide funding of the purchase price. Costs associated with the Bridge Facility in the amount of approximately $19,000 are being capitalized and are included in prepaid expenses and other current assets in the Company's consolidated balance sheets. In addition, on September 20, 2019, the Company entered into a Term Loan Agreement (the "Term Loan Agreement") with Bank of America, N.A., as administrative agent and certain financial institutions, as lenders, pursuant to which such lenders committed to provide, contingent upon the completion of the acquisition and certain other customary conditions to funding, (1) a three-year senior unsecured term loan facility in an aggregate principal amount of $400,000 (the "Three-Year Tranche") and (2) a five-year senior unsecured term loan facility in an aggregate principal amount of $600,000 (the "Five-Year Tranche" and, together with the Three-Year Tranche, the "Term Loan Facilities"). Borrowings under the Term Loan Facilities will be used to pay a portion of the cash consideration and other amounts payable in connection with the Company’s acquisition of eOne. The transaction, which is structured as a statutory plan of arrangement under the Canada Business Corporations Act, remains subject to receipt of certain regulatory approvals and other customary closing conditions. The transaction has received approval by eOne’s shareholders as well early termination of the waiting period under the Hart-Scott Rodino Antitrust Improvements Act in the U.S. and antitrust approval in Germany. On October 17, 2019 the shareholders of eOne approved the transaction. The transaction is expected to close during the fourth quarter of 2019. During the third quarter of 2019, the Company also entered 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 "Revolving Credit Agreement"), which provides the Company with commitments having a maximum aggregate principal amount of $1,500,000 , comprised of (1) $1,100,000 of commitments effective as of September 20, 2019, and (2) $400,000 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 $500,000 subject to agreement of the lenders. Prior to the September 2019 amendment, the Revolving Credit Agreement provided for a $1,100,000 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 revolving credit facility as of September 29, 2019. |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Sep. 29, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition Revenue Recognition Revenue 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 Liabilities Within 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 $46,768 , $43,653 , and $50,759 as of September 29, 2019 , September 30, 2018 , and December 30, 2018 , respectively, and the changes in deferred revenues are not material to the Company’s consolidated statements of operations for the nine months ended September 29, 2019 and September 30, 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 September 29, 2019 , September 30, 2018 and December 30, 2018, these contract assets were $48,357 , $33,167 and $18,166 , respectively, of which $34,033 , $28,477 and $12,895 , respectively, were recorded in Prepaid Expenses and Other Current Assets and $14,324 , $4,690 and $5,271 , respectively, were recorded as Other Long-Term Assets. Disaggregation of revenues The Company disaggregates its revenues from contracts with customers by segment: U.S. 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 11, Segment Reporting, for further information. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 29, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Net earnings per share data for the quarters and nine months ended September 29, 2019 and September 30, 2018 were computed as follows: 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 For the quarter ended September 30, 2018 , options and restricted stock units totaling 949 shares were excluded from the calculation of diluted earnings per share because to include them would have been anti-dilutive. For the quarter ended September 29, 2019 , no options or restricted stock units were anti-dilutive. For the nine month periods ended September 29, 2019 and September 30, 2018 , options and restricted stock units totaling 1,088 and 1,124 shares, respectively, were excluded from the calculation of diluted earnings per share because to include them would have been antidilutive. |
Other Comprehensive Earnings (L
Other Comprehensive Earnings (Loss) | 9 Months Ended |
Sep. 29, 2019 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | |
Other Comprehensive Earnings (Loss) | Other Comprehensive Earnings (Loss) Components of other comprehensive earnings (loss) are presented within the consolidated statements of comprehensive earnings (loss). The following table presents the related tax effects on changes in other comprehensive earnings (loss) for the quarter and nine month periods ended September 29, 2019 and September 30, 2018 . Quarter Ended Nine Months Ended September 29, September 30, September 29, September 30, 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 Changes in the components of accumulated other comprehensive earnings (loss) for the nine months ended September 29, 2019 and September 30, 2018 are as follows: Pension and Postretirement Amounts Gains (Losses) on Derivative Instruments Unrealized Holding Gains (Losses) on Available- for-Sale Securities Foreign Currency Translation Adjustments Total Accumulated Other Comprehensive Loss 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 ) Gains (Losses) on Derivative Instruments At September 29, 2019 , the Company had remaining net deferred gains on foreign currency forward contracts, net of tax, of $23,654 in accumulated other comprehensive loss ("AOCE"). These instruments hedge payments related to inventory purchased in the third 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 third 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 September 29, 2019 , deferred losses, net of tax of $18,266 related to these instruments remained in AOCE. For the quarters ended September 29, 2019 and September 30, 2018 , previously deferred losses of $450 , were reclassified from AOCE to net earnings. For the nine month periods ended September 29, 2019 and September 30, 2018 , previously deferred losses of $ 1,349 were reclassified from AOCE to net earnings. Of the amount included in AOCE at September 29, 2019 , the Company expects net gains of approximately $18,471 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. |
Financial Instruments
Financial Instruments | 9 Months Ended |
Sep. 29, 2019 | |
Debt Disclosure [Abstract] | |
Financial Instruments | Financial Instruments The Company's financial instruments include cash and cash equivalents, accounts receivable, short-term borrowings, accounts payable and certain accrued liabilities. At September 29, 2019 , September 30, 2018 and December 30, 2018 , the carrying cost of these instruments approximated their fair value. The Company's financial instruments at September 29, 2019 , September 30, 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 September 29, 2019 , September 30, 2018 and December 30, 2018 are as follows: September 29, 2019 September 30, 2018 December 30, 2018 Carrying Cost Fair Value Carrying Cost Fair Value Carrying Cost Fair Value 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 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. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 29, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company and its subsidiaries file income tax returns in the United States and various state and international jurisdictions. In the normal course of business, the Company is regularly audited by U.S. federal, state and local, and international tax authorities in various tax jurisdictions. 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. 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. As a result, the Company recorded a discrete 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. In the third quarter of 2018, the estimate was further revised based on additional guidance and a one-time tax benefit of $17,336 was recorded. For the nine months ended September 29, 2019 , the Company recorded a discrete tax benefit of $24,925 as a result of the charge incurred from the settlement of its U.S. defined benefit pension plan liability during the second quarter of 2019. 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. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 9 Months Ended |
Sep. 29, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The Company measures certain financial instruments at fair value. The fair value hierarchy consists of three levels: Level 1 fair values are based on quoted market prices in active markets for identical assets or liabilities that the entity has the ability to access; Level 2 fair values are those based on quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable data for substantially the full term of the assets or liabilities; and Level 3 fair values are based on inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. 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 September 29, 2019 , September 30, 2018 and December 30, 2018 , these investments totaled $24,916 , $24,201 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 $566 and $1,293 on these investments in other (income) expense, net for the quarter and nine months ended September 29, 2019 , respectively, related to the change in fair value of such instruments. For the quarter and nine month periods ended September 30, 2018 , the Company recorded net (losses) gains of $(10) and $96 , respectively, in other (income) expense, net, related to the change in fair value of such instruments. At September 29, 2019 , September 30, 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): Fair Value Measurements Using: Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) 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 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 and option 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 September 29, 2019 , September 30, 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 nine month period ended September 29, 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): 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 ) In addition to the above, the Company has three investments for which the fair value is measured using net asset value per share. At September 29, 2019 , September 30, 2018 and December 30, 2018 , these investments had fair values of $24,916 , $24,201 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 days – 90 days ’ notice. |
Pension and Postretirement Bene
Pension and Postretirement Benefits | 9 Months Ended |
Sep. 29, 2019 | |
Retirement Benefits [Abstract] | |
Pension and Postretirement Benefits | Pension and Postretirement Benefits 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 ("U.S. Pension Plan"). During the first quarter of 2018 the Company commenced the U.S. Pension Plan termination process and received regulatory approval during the fourth quarter of 2018. During the second quarter of 2019, the Company settled all remaining benefits directly with vested participants electing a lump sum payout, and purchased a group annuity contract from Massachusetts Mutual Life Insurance Company to administer all future payments to remaining U.S. Pension Plan participants. The U.S. Pension Plan's net funded asset position was sufficient to cover the lump sum payments and the purchase of the group annuity contract and settle all other remaining benefit obligations with no additional cost to the Company. After the settlement of the benefit obligations and payment of expenses, the Company had excess assets in the U.S. Pension Plan of approximately $19,000 . The Company elected to utilize the remaining surplus after payment of administrative expenses for the Company's future matching contributions under the Company's 401(k) plan. Upon settlement of the pension liability, which occurred in May 2019, the Company recognized a non-operating settlement charge of $ 110,777 related to pension losses, reclassified from accumulated other comprehensive loss to other (income) expense in the Company's consolidated statements of operations, adjusted for market conditions and settlement costs at benefit distribution. As of September 29, 2019, the Company had unrecognized losses related to its remaining pension and postretirement plans of $ 32,115 . The components of the net periodic cost of the Company's terminated U.S. Pension Plan, remaining defined benefit pension plan and other postretirement plans for the quarters and nine months ended September 29, 2019 and September 30, 2018 are as follows: Quarter Ended Pension Postretirement September 29, September 30, September 29, September 30, Service 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, September 30, September 29, September 30, Service 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 During the nine months ended September 29, 2019 , the Company made cash contributions of $1,880 to its remaining defined benefit pension plans. During fiscal 2019 , the Company expects to make cash contributions to its remaining defined benefit pension plans of approximately $2,100 in the aggregate. |
Derivative Financial Instrument
Derivative Financial Instruments | 9 Months Ended |
Sep. 29, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments Hasbro uses foreign currency forward contracts and zero-cost collar options 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. Cash Flow Hedges The Company uses foreign currency forward contracts and zero-cost collar options 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 and zero-cost collar options 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 September 29, 2019 , September 30, 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: September 29, 2019 September 30, 2018 December 30, 2018 Hedged transaction Notional Amount Fair Value Notional Amount Fair Value Notional Amount Fair Value 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 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 September 29, 2019 , September 30, 2018 and December 30, 2018 as follows: September 29, September 30, December 30, Prepaid 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 ) — Net gains (losses) on cash flow hedging activities have been reclassified from other comprehensive earnings (loss) to net earnings for the quarters and nine months ended September 29, 2019 and September 30, 2018 as follows: Quarter Ended Nine Months Ended September 29, September 30, September 29, September 30, Statements 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 Undesignated Hedges Intercompany Loans 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 September 29, 2019 , September 30, 2018 and December 30, 2018 the total notional amounts of the Company's undesignated derivative instruments were $308,867 , $311,331 and $452,773 , respectively. At September 29, 2019 , September 30, 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: September 29, September 30, December 30, Prepaid 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 ) The Company recorded net gains of $10,121 and $16,705 on these instruments to other (income) expense, net for the quarter and nine month periods ended September 29, 2019 , respectively, and net gains of $5,030 and $8,781 on these instruments to other (income) expense, net for the quarter and nine month periods ended September 30, 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. eOne Purchase Price Hedge As described in Note 1, during the third quarter of 2019 the Company hedged a portion of its exposure to fluctuations in the British pound sterling in relation to the eOne acquisition purchase 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. As of September 29, 2019 , these derivative instruments had a total notional value of $2,867,500 and a net fair value of $8,676 of which $20,145 is recorded to prepaid expenses and other current assets and $11,469 is recorded to accounts payable and accrued liabilities within the Company’s consolidated financial statements. In addition, the Company recorded pretax net losses of $25,533 on these instruments to other (income) expense, net for the quarter and nine month periods ended September 29, 2019 . For additional information related to the Company's derivative financial instruments see Notes 4 and 7. |
Leases
Leases | 9 Months Ended |
Sep. 29, 2019 | |
Leases [Abstract] | |
Leases | Leases 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 to 18 years , some of which include either, options to extend lease terms, or options to terminate current lease terms at certain times, subject to notice requirements set out in the lease agreement. Payments under certain of the lease agreements may be subject to adjustment based on a consumer price index or other inflationary indices. The lease liability for such lease agreements as of the adoption date, was based on fixed payments as of the adoption date. Any adjustments to these payments based on the related indices will be recorded to expense as incurred. Leases with an expected term of 12 months or less are not capitalized. 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 and nine months ended September 29, 2019 , operating lease expense was $8,907 and $26,982 , respectively. Expense related to short-term leases (expected terms less than 12 months) and variable lease payments was not material in the quarter or nine months ended September 29, 2019 . Information related to the Company’s leases for the quarter and nine months ended September 29, 2019 is as follows: Quarter Ended Nine Months Ended September 29, September 29, Cash 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 % 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 September 29, 2019 : September 29, 2019 (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 Less current portion of operating lease liabilities (1) 29,489 Non-current operating lease liability (2) 114,966 Operating lease right-of-use assets, net (3) $ 127,005 (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. |
Segment Reporting
Segment Reporting | 9 Months Ended |
Sep. 29, 2019 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting 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 Wizards of the Coast digital gaming business, consumer products licensing, owned and licensed 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 quarter and nine months ended September 30, 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 and nine month periods ended September 29, 2019 are not necessarily representative of those which may be expected for the full year 2019, nor were those of the comparable 2018 periods 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 quarter and nine month periods ended September 29, 2019 and September 30, 2018 are as follows: 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 — As a result of the realignment of the Company's financial reporting segments, revenues of $11,999 and $33,271 for the quarter and nine months ended September 30, 2018 , respectively, were reclassified from the U.S. and Canada segment to the Entertainment, Licensing and Digital segment to conform to current year presentation. Quarter Ended Nine Months Ended Operating profit (loss) September 29, September 30, September 29, September 30, U.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 As a result of the realignment of the Company's financial reporting segments, operating profit of $3,455 and $9,825 for the quarter and nine months ended September 30, 2018 , respectively, were reclassified from the U.S. and Canada segment to the Entertainment, Licensing and Digital segment to conform to current year presentation. Total assets September 29, September 30, December 30, U.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 (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 and nine month periods ended September 29, 2019 and September 30, 2018 : Quarter Ended Nine Months Ended September 29, September 30, September 29, September 30, Europe $ 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 The following table presents consolidated net revenues by brand portfolio for the quarters and nine month periods ended September 29, 2019 and September 30, 2018 : Quarter Ended Nine Months Ended September 29, September 30, September 29, September 30, Franchise 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 Hasbro's total gaming category, which includes all gaming net revenues, both those reported in Hasbro Gaming and those reported elsewhere, most notably MAGIC: THE GATHERING and MONOPOLY, totaled $449,393 and $1,086,151 for the quarter and nine months ended September 29, 2019 , respectively. For the quarter and nine months ended September 30, 2018 , total gaming revenues were $447,844 and $964,159 , respectively. |
Restructuring Actions
Restructuring Actions | 9 Months Ended |
Sep. 29, 2019 | |
Restructuring Charges [Abstract] | |
Restructuring Actions | Restructuring Actions During 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 re-imagine 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 nine months of 2019 . The detail of activity related to the program is as follows: 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 |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 9 Months Ended |
Sep. 29, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | In the opinion of management, the accompanying unaudited interim consolidated financial statements contain all normal and recurring adjustments necessary to present fairly the consolidated financial position of Hasbro, Inc. and all majority-owned subsidiaries ("Hasbro" or the "Company") as of September 29, 2019 and September 30, 2018 , and the results of its operations and cash flows and shareholders' equity for the periods then ended in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP"). The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and notes thereto. Actual results could differ from those estimates. The quarters ended September 29, 2019 and September 30, 2018 were each 13 -week periods. The nine month periods ended September 29, 2019 and September 30, 2018 were each 39 -week periods. The results of operations for the quarter and nine month periods ended September 29, 2019 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. Certain reclassifications have been made to prior year amounts to conform to the current period presentation. 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 and Issued Accounting Standards | Recently Adopted Accounting Standards The 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 was 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 Pronouncements In 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 expects to adopt the standard at the start of fiscal year 2020 and is currently evaluating the standard and the impact, if any, to its consolidated financial statements. |
Revenue Recognition | Revenue Recognition Revenue 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 Liabilities Within 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 $46,768 , $43,653 , and $50,759 as of September 29, 2019 , September 30, 2018 , and December 30, 2018 , respectively, and the changes in deferred revenues are not material to the Company’s consolidated statements of operations for the nine months ended September 29, 2019 and September 30, 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 September 29, 2019 , September 30, 2018 and December 30, 2018, these contract assets were $48,357 , $33,167 and $18,166 , respectively, of which $34,033 , $28,477 and $12,895 , respectively, were recorded in Prepaid Expenses and Other Current Assets and $14,324 , $4,690 and $5,271 , respectively, were recorded as Other Long-Term Assets. Disaggregation of revenues The Company disaggregates its revenues from contracts with customers by segment: U.S. 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 11, Segment Reporting, for further information. |
Leases | 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 to 18 years , some of which include either, options to extend lease terms, or options to terminate current lease terms at certain times, subject to notice requirements set out in the lease agreement. Payments under certain of the lease agreements may be subject to adjustment based on a consumer price index or other inflationary indices. The lease liability for such lease agreements as of the adoption date, was based on fixed payments as of the adoption date. Any adjustments to these payments based on the related indices will be recorded to expense as incurred. Leases with an expected term of 12 months or less are not capitalized. 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. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 29, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings (Loss) Per Share | Net earnings per share data for the quarters and nine months ended September 29, 2019 and September 30, 2018 were computed as follows: 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 |
Other Comprehensive Earnings _2
Other Comprehensive Earnings (Loss) (Tables) | 9 Months Ended |
Sep. 29, 2019 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | |
Schedule of Other Comprehensive Income (Loss), Tax Effect | The following table presents the related tax effects on changes in other comprehensive earnings (loss) for the quarter and nine month periods ended September 29, 2019 and September 30, 2018 . Quarter Ended Nine Months Ended September 29, September 30, September 29, September 30, 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 |
Schedule of Accumulated Other Comprehensive Earnings (Loss) | Changes in the components of accumulated other comprehensive earnings (loss) for the nine months ended September 29, 2019 and September 30, 2018 are as follows: Pension and Postretirement Amounts Gains (Losses) on Derivative Instruments Unrealized Holding Gains (Losses) on Available- for-Sale Securities Foreign Currency Translation Adjustments Total Accumulated Other Comprehensive Loss 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 ) |
Financial Instruments (Tables)
Financial Instruments (Tables) | 9 Months Ended |
Sep. 29, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | The carrying costs, which are equal to the outstanding principal amounts, and fair values of the Company's long-term borrowings as of September 29, 2019 , September 30, 2018 and December 30, 2018 are as follows: September 29, 2019 September 30, 2018 December 30, 2018 Carrying Cost Fair Value Carrying Cost Fair Value Carrying Cost Fair Value 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 of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 9 Months Ended |
Sep. 29, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Hierarchy | At September 29, 2019 , September 30, 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): Fair Value Measurements Using: Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) 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 |
Reconciliation of Level 3 Fair Value | The following is a reconciliation of the beginning and ending balances of the fair value measurements of the Company's financial instruments which use significant unobservable inputs (Level 3): 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 ) |
Pension and Postretirement Be_2
Pension and Postretirement Benefits (Tables) | 9 Months Ended |
Sep. 29, 2019 | |
Retirement Benefits [Abstract] | |
Components of net periodic cost | The components of the net periodic cost of the Company's terminated U.S. Pension Plan, remaining defined benefit pension plan and other postretirement plans for the quarters and nine months ended September 29, 2019 and September 30, 2018 are as follows: Quarter Ended Pension Postretirement September 29, September 30, September 29, September 30, Service 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, September 30, September 29, September 30, Service 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 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 9 Months Ended |
Sep. 29, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Summary of Cash Flow Hedging Instruments | At September 29, 2019 , September 30, 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: September 29, 2019 September 30, 2018 December 30, 2018 Hedged transaction Notional Amount Fair Value Notional Amount Fair Value Notional Amount Fair Value 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 |
Schedule of Foreign Currency Forward Contracts Designated as Cash Flow Hedges | The fair values of the Company's foreign currency forward contracts designated as cash flow hedges are recorded in the consolidated balance sheets at September 29, 2019 , September 30, 2018 and December 30, 2018 as follows: September 29, September 30, December 30, Prepaid 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 ) — |
Schedule of Net Gains (Losses) on Cash Flow Hedges Activities | Net gains (losses) on cash flow hedging activities have been reclassified from other comprehensive earnings (loss) to net earnings for the quarters and nine months ended September 29, 2019 and September 30, 2018 as follows: Quarter Ended Nine Months Ended September 29, September 30, September 29, September 30, Statements 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 |
Fair Values of Undesignated Derivative Financial Instruments | At September 29, 2019 , September 30, 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: September 29, September 30, December 30, Prepaid 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 ) |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 29, 2019 | |
Leases [Abstract] | |
Lease cost | nformation related to the Company’s leases for the quarter and nine months ended September 29, 2019 is as follows: Quarter Ended Nine Months Ended September 29, September 29, Cash 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 % |
Maturities of operating lease liabilities | 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 September 29, 2019 : September 29, 2019 (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 Less current portion of operating lease liabilities (1) 29,489 Non-current operating lease liability (2) 114,966 Operating lease right-of-use assets, net (3) $ 127,005 (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. |
Segment Reporting (Tables)
Segment Reporting (Tables) | 9 Months Ended |
Sep. 29, 2019 | |
Segment Reporting [Abstract] | |
Net revenues by segment | Information by segment and a reconciliation to reported amounts for the quarter and nine month periods ended September 29, 2019 and September 30, 2018 are as follows: 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 — |
Operating profit (loss) by segments | Quarter Ended Nine Months Ended Operating profit (loss) September 29, September 30, September 29, September 30, U.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 by segments | Total assets September 29, September 30, December 30, U.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 (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. |
Schedule of international net revenues by major geographic region | The following table represents consolidated International segment net revenues by major geographic region for the quarters and nine month periods ended September 29, 2019 and September 30, 2018 : Quarter Ended Nine Months Ended September 29, September 30, September 29, September 30, Europe $ 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 |
Net revenues by product category | The following table presents consolidated net revenues by brand portfolio for the quarters and nine month periods ended September 29, 2019 and September 30, 2018 : Quarter Ended Nine Months Ended September 29, September 30, September 29, September 30, Franchise 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 |
Restructuring Actions (Tables)
Restructuring Actions (Tables) | 9 Months Ended |
Sep. 29, 2019 | |
Restructuring Charges [Abstract] | |
Schedule of restructuring and related costs | The detail of activity related to the program is as follows: 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 |
Basis of Presentation (Details)
Basis of Presentation (Details) | Sep. 20, 2019USD ($) | Aug. 22, 2019USD ($) | Aug. 22, 2019GBP (£) | Sep. 29, 2019USD ($) | Sep. 29, 2019USD ($) | Aug. 31, 2019USD ($) | Aug. 22, 2019GBP (£)£ / shares | Dec. 30, 2018USD ($) | Sep. 30, 2018USD ($) |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||
Operating lease right-of-use asset, net | $ 127,005,000 | $ 127,005,000 | |||||||
Total operating lease liabilities | 144,455,000 | 144,455,000 | |||||||
Less: Deferred debt expenses | 13,691,000 | 13,691,000 | $ 14,803,000 | $ 15,174,000 | |||||
Bridge Loan | Debt Commitment Letter | |||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||
Debt instrument term | 364 days | 364 days | |||||||
Less: Deferred debt expenses | $ 19,000,000 | ||||||||
Debt instrument, face amount | £ | £ 3,600,000,000 | ||||||||
Secured Debt | Three-Year Term Loan Facility | |||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||
Debt instrument term | 3 years | ||||||||
Debt instrument, face amount | $ 400,000,000 | ||||||||
Secured Debt | Five-Year Term Loan Facility | |||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||
Debt instrument term | 5 years | ||||||||
Debt instrument, face amount | $ 600,000,000 | ||||||||
eOne Acquisition | |||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||
Payments to acquire businesses | $ 4,000,000,000 | £ 3,300,000,000 | |||||||
Cash dividends declared per common share (in dollars per share) | £ / shares | £ 5.60 | ||||||||
eOne Acquisition | Not Designated as Hedging Instrument | Other Operating Income (Expense) | Foreign Exchange Forward and Option | |||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||
Gain (loss) recognized in income for derivative instruments | 25,533,000 | 25,533,000 | |||||||
Accounting Standards Update 2016-02 | |||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||
Operating lease right-of-use asset, net | 121,230,000 | ||||||||
Total operating lease liabilities | $ 139,520,000 | ||||||||
Bank of America Syndicate | Revolving Credit Facility | Line of Credit | |||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||
Line of credit, maximum borrowing capacity | 1,500,000,000 | 1,500,000,000 | $ 1,100,000,000 | ||||||
Commitments on effective date | 1,100,000,000 | 1,100,000,000 | |||||||
Commitment increase amount | 500,000,000 | 500,000,000 | |||||||
Commitments upon completion of acquisition | 400,000,000 | 400,000,000 | |||||||
Line of credit, borrowings outstanding | $ 0 | $ 0 |
Revenue Recognition - Contract
Revenue Recognition - Contract Assets and Liabilities (Details) - USD ($) $ in Thousands | Sep. 29, 2019 | Dec. 30, 2018 | Sep. 30, 2018 |
Revenue from Contract with Customer [Abstract] | |||
Contract with customer liability | $ 46,768 | $ 50,759 | $ 43,653 |
Contract with customer asset | 48,357 | 18,166 | 33,167 |
Prepaid expenses and other current assets | 34,033 | 12,895 | 28,477 |
Other long-term assets | $ 14,324 | $ 5,271 | $ 4,690 |
Revenue Recognition - Disaggreg
Revenue Recognition - Disaggregation of Revenue (Details) | 9 Months Ended |
Sep. 29, 2019brand_category | |
Revenue from Contract with Customer [Abstract] | |
Number of brand categories | 4 |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of Earnings (Loss) Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2019 | Sep. 30, 2018 | Sep. 29, 2019 | Sep. 30, 2018 | |
Earnings Per Share [Abstract] | ||||
Net earnings | $ 212,949 | $ 263,861 | $ 253,109 | $ 211,668 |
Average number of shares outstanding, basic and diluted (in shares) | 126,453 | 127,161 | 126,356 | 125,982 |
Earnings Per Share, Basic [Abstract] | ||||
Equivalent shares outstanding, basic (in shares) | 126,453 | 127,161 | 126,356 | 125,982 |
Earnings per share, basic (in dollars per shares) | $ 1.68 | $ 2.08 | $ 2 | $ 1.68 |
Effect of dilutive securities: | ||||
Options and other share-based awards (in shares) | 751 | 731 | 600 | 792 |
Equivalent shares outstanding, diluted (in shares) | 127,204 | 127,892 | 126,956 | 126,774 |
Earnings per share, diluted (in dollars per shares) | $ 1.67 | $ 2.06 | $ 1.99 | $ 1.67 |
Earnings Per Share - Narrative
Earnings Per Share - Narrative (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2019 | Sep. 30, 2018 | Sep. 29, 2019 | Sep. 30, 2018 | |
Employee stock option and restricted stock units (in shares) | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 0 | 949,000 | 1,088,000 | 1,124,000 |
Other Comprehensive Earnings _3
Other Comprehensive Earnings (Loss) - Schedule of Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2019 | Sep. 30, 2018 | Sep. 29, 2019 | Sep. 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) | (524) | ||
Tax (expense) benefit on cash flow hedging activities | (73) | 238 | ||
Tax (expense) benefit on changes in unrecognized pension amounts | 0 | 0 | (5,687) | 7,565 |
Reclassifications to earnings, tax effect: | ||||
Tax expense on cash flow hedging activities | 703 | 1,237 | ||
Tax expense on cash flow hedging activities | 1,015 | 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 | 0 | 0 | (24,925) | 0 |
Total tax effect on other comprehensive earnings (loss) | $ 99 | $ 521 | $ (31,634) | $ 6,248 |
Other Comprehensive Earnings _4
Other Comprehensive Earnings (Loss) - Schedule of Accumulated Other Comprehensive Earnings (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 29, 2019 | Sep. 30, 2018 | Sep. 29, 2019 | Sep. 30, 2018 | Jan. 01, 2018 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Balance at the beginning of the period | $ (294,514) | $ (239,425) | |||
Current period other comprehensive earnings (loss) | $ (12,201) | $ (1,662) | 109,138 | (35,810) | |
Adoption of ASU 2018-02 | $ (21,503) | ||||
Balance at the end of the period | (185,376) | (296,738) | (185,376) | (296,738) | |
Pension and Postretirement Amounts | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Balance at the beginning of the period | (143,134) | (110,971) | |||
Current period other comprehensive earnings (loss) | 111,019 | (19,660) | |||
Adoption of ASU 2018-02 | (18,065) | ||||
Balance at the end of the period | (32,115) | (148,696) | (32,115) | (148,696) | |
Gains (Losses) on Derivative Instruments | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Balance at the beginning of the period | (32,827) | ||||
Current period other comprehensive earnings (loss) | 29,083 | ||||
Adoption of ASU 2018-02 | (3,660) | ||||
Balance at the end of the period | (7,404) | (7,404) | |||
Gains (Losses) on Derivative Instruments | Foreign Exchange Forward | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Balance at the end of the period | 23,654 | 23,654 | |||
Gains (Losses) on Derivative Instruments | Interest Rate Contract | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Balance at the end of the period | 18,266 | 18,266 | |||
Gains (Losses) on Derivative Instruments | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Balance at the beginning of the period | 1,549 | ||||
Current period other comprehensive earnings (loss) | 3,839 | ||||
Balance at the end of the period | 5,388 | 5,388 | |||
Unrealized Holding Gains (Losses) on Available- for-Sale Securities | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Balance at the beginning of the period | (744) | 1,034 | |||
Current period other comprehensive earnings (loss) | 400 | (673) | |||
Adoption of ASU 2018-02 | 222 | ||||
Balance at the end of the period | (344) | 583 | (344) | 583 | |
Foreign Currency Translation Adjustments | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Balance at the beginning of the period | (152,185) | (96,661) | |||
Current period other comprehensive earnings (loss) | (6,120) | (44,560) | |||
Adoption of ASU 2018-02 | $ 0 | ||||
Balance at the end of the period | $ (158,305) | $ (141,221) | $ (158,305) | $ (141,221) |
Other Comprehensive Earnings _5
Other Comprehensive Earnings (Loss) - Gains (Losses) on Derivative Instruments (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 29, 2019 | Sep. 30, 2018 | Sep. 29, 2019 | Sep. 30, 2018 | Dec. 30, 2018 | Dec. 31, 2017 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||
Accumulated other comprehensive loss | $ (185,376) | $ (296,738) | $ (185,376) | $ (296,738) | $ (294,514) | $ (239,425) |
Interest expense | 22,764 | 22,779 | 67,096 | 68,391 | ||
Cash flow hedge gain (loss) to be reclassified within twelve months | 18,471 | |||||
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent | ||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||
Accumulated other comprehensive loss | (7,404) | (7,404) | $ (32,827) | |||
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent | Foreign Exchange Forward | ||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||
Accumulated other comprehensive loss | 23,654 | 23,654 | ||||
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent | Interest Rate Contract | ||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||
Accumulated other comprehensive loss | 18,266 | 18,266 | ||||
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent | Reclassification out of Accumulated Other Comprehensive Income | Interest Rate Contract | ||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||
Interest expense | $ 450 | $ 450 | $ 1,349 | $ 1,349 |
Financial Instruments (Details)
Financial Instruments (Details) - USD ($) $ in Thousands | Sep. 29, 2019 | Dec. 30, 2018 | Sep. 30, 2018 |
Debt Instrument [Line Items] | |||
Long-term debt, carrying cost | $ 1,709,895 | $ 1,709,895 | $ 1,709,895 |
Less: Deferred debt expenses | 13,691 | 14,803 | 15,174 |
Long-term Debt, Excluding Current Maturities | 1,696,204 | 1,695,092 | 1,694,721 |
Fair Value | 1,845,985 | 1,685,936 | 1,720,608 |
6.35% Notes Due 2040 | |||
Debt Instrument [Line Items] | |||
Long-term debt, carrying cost | 500,000 | 500,000 | 500,000 |
Fair Value | $ 587,850 | 535,000 | 546,450 |
Interest Rate | 6.35% | ||
3.50% Notes Due 2027 | |||
Debt Instrument [Line Items] | |||
Long-term debt, carrying cost | $ 500,000 | 500,000 | 500,000 |
Fair Value | $ 511,200 | 457,350 | 466,350 |
Interest Rate | 3.50% | ||
5.10% Notes Due 2044 | |||
Debt Instrument [Line Items] | |||
Long-term debt, carrying cost | $ 300,000 | 300,000 | 300,000 |
Fair Value | $ 310,080 | 272,640 | 285,390 |
Interest Rate | 5.10% | ||
3.15% Notes Due 2021 | |||
Debt Instrument [Line Items] | |||
Long-term debt, carrying cost | $ 300,000 | 300,000 | 300,000 |
Fair Value | $ 303,300 | 297,600 | 297,720 |
Interest Rate | 3.15% | ||
6.60% Debentures Due 2028 | |||
Debt Instrument [Line Items] | |||
Long-term debt, carrying cost | $ 109,895 | 109,895 | 109,895 |
Fair Value | $ 133,555 | $ 123,346 | $ 124,698 |
Interest Rate | 6.60% |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 29, 2019 | Sep. 30, 2018 | Apr. 01, 2018 | Sep. 29, 2019 | Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | |||||
Increase (decrease) to provisional tax expense (benefit) | $ (17,336) | $ 47,800 | |||
Tax benefit on settlement of U.S defined benefit plan | $ 0 | $ 0 | $ 24,925 | $ 0 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 29, 2019 | Sep. 30, 2018 | Sep. 29, 2019 | Sep. 30, 2018 | Dec. 30, 2018 | |
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||||
Other income, net | $ (20,185) | $ 566 | $ (118,289) | $ 6,189 | |
Fair Value investments notice period | 45 days | ||||
Minimum | |||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||||
Fair Value investments notice period | 30 days | ||||
Maximum | |||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||||
Fair Value investments notice period | 90 days | ||||
Fair Value, Recurring | |||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||||
Available for sale investments, fair value option | 24,916 | 24,201 | $ 24,916 | 24,201 | $ 23,913 |
Other income, net | $ 566 | $ (10) | $ 1,293 | $ 96 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments - Fair Value Hierarchy (Details) - USD ($) $ in Thousands | Sep. 29, 2019 | Dec. 30, 2018 | Sep. 30, 2018 |
Assets: | |||
Available-for-sale securities | $ 1,148 | $ 914 | $ 2,346 |
Derivatives | 54,030 | 26,076 | 20,079 |
Total assets | 55,178 | 26,990 | 22,425 |
Liabilities: | |||
Derivatives | 11,508 | 1,610 | 2,113 |
Option agreement | 22,196 | 23,440 | 23,460 |
Total liabilities | 33,704 | 25,050 | 25,573 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Assets: | |||
Available-for-sale securities | 1,148 | 914 | 2,346 |
Derivatives | 0 | 0 | 0 |
Total assets | 1,148 | 914 | 2,346 |
Liabilities: | |||
Derivatives | 0 | 0 | 0 |
Option agreement | 0 | 0 | 0 |
Total liabilities | 0 | 0 | 0 |
Significant Other Observable Inputs (Level 2) | |||
Assets: | |||
Available-for-sale securities | 0 | 0 | 0 |
Derivatives | 54,030 | 26,076 | 20,079 |
Total assets | 54,030 | 26,076 | 20,079 |
Liabilities: | |||
Derivatives | 11,508 | 1,610 | 2,113 |
Option agreement | 0 | 0 | 0 |
Total liabilities | 11,508 | 1,610 | 2,113 |
Significant Unobservable Inputs (Level 3) | |||
Assets: | |||
Available-for-sale securities | 0 | 0 | 0 |
Derivatives | 0 | 0 | 0 |
Total assets | 0 | 0 | 0 |
Liabilities: | |||
Derivatives | 0 | 0 | 0 |
Option agreement | 22,196 | 23,440 | 23,460 |
Total liabilities | $ 22,196 | $ 23,440 | $ 23,460 |
Fair Value of Financial Instr_5
Fair Value of Financial Instruments - Reconciliation of Level 3 Fair value (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 29, 2019 | Sep. 30, 2018 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
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) |
Pension and Postretirement Be_3
Pension and Postretirement Benefits - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2019 | Sep. 30, 2018 | Sep. 29, 2019 | Sep. 30, 2018 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Benefit obligation, excess in plan assets | $ 19,000 | $ 19,000 | ||
Unrecognized losses, U.S. pension plan, remaining in accumulated other comprehensive loss | 32,115 | 32,115 | ||
Pension | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Non-operating settlement charge | $ 0 | $ 0 | 110,777 | $ 0 |
Contributions to defined benefit pension plans | 1,880 | |||
Expected fiscal year defined benefit pension plan contributions | $ 2,100 |
Pension and Postretirement Be_4
Pension and Postretirement Benefits - Components of Net Periodic Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2019 | Sep. 30, 2018 | Sep. 29, 2019 | Sep. 30, 2018 | |
Pension | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Service cost | $ 325 | $ 678 | $ 2,170 | $ 2,030 |
Interest cost | 821 | 3,997 | 7,939 | 11,993 |
Expected return on assets | (476) | (5,190) | (7,642) | (15,569) |
Settlement | 0 | 0 | 110,777 | 0 |
Net amortization and deferrals | 598 | 2,971 | 7,906 | 8,913 |
Net periodic benefit cost | 1,268 | 2,456 | 121,150 | 7,367 |
Postretirement | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Service cost | 311 | 189 | 667 | 566 |
Interest cost | 316 | 292 | 948 | 877 |
Expected return on assets | 0 | 0 | 0 | 0 |
Settlement | 0 | 0 | 0 | 0 |
Net amortization and deferrals | 5 | 42 | 15 | 127 |
Net periodic benefit cost | $ 632 | $ 523 | $ 1,630 | $ 1,570 |
Derivative Financial Instrume_3
Derivative Financial Instruments - Summary of Cash Flow Hedging Instruments (Details) - Cash Flow Hedging - Designated as Hedging Instrument - USD ($) $ in Thousands | Sep. 29, 2019 | Dec. 30, 2018 | Sep. 30, 2018 |
Derivative [Line Items] | |||
Notional amount | $ 649,836 | $ 792,840 | $ 992,616 |
Fair value | 31,556 | 26,017 | 17,434 |
Inventory purchases | |||
Derivative [Line Items] | |||
Notional amount | 420,839 | 468,305 | 555,661 |
Fair value | 24,462 | 15,089 | 6,827 |
Sales | |||
Derivative [Line Items] | |||
Notional amount | 212,062 | 298,194 | 319,421 |
Fair value | 7,231 | 11,232 | 13,027 |
Royalties and Other | |||
Derivative [Line Items] | |||
Notional amount | 16,935 | 26,341 | 117,534 |
Fair value | $ (137) | $ (304) | $ (2,420) |
Derivative Financial Instrume_4
Derivative Financial Instruments - Schedule of Foreign Currency Forward Contracts Designated as Cash Flow Hedges (Details) - Cash Flow Hedging - Designated as Hedging Instrument - USD ($) $ in Thousands | Sep. 29, 2019 | Dec. 30, 2018 | Sep. 30, 2018 |
Derivatives, Fair Value [Line Items] | |||
Net unrealized gains | $ 31,556 | $ 26,017 | $ 17,434 |
Foreign Exchange Forward | Prepaid expenses and other current assets | |||
Derivatives, Fair Value [Line Items] | |||
Unrealized gains | 22,529 | 21,718 | 15,414 |
Unrealized losses | (1,333) | (972) | (4,079) |
Net unrealized gains | 21,196 | 20,746 | 11,335 |
Foreign Exchange Forward | Other assets | |||
Derivatives, Fair Value [Line Items] | |||
Unrealized gains | 10,609 | 6,173 | 9,591 |
Unrealized losses | (249) | (843) | (1,455) |
Net unrealized gains | 10,360 | 5,330 | 8,136 |
Foreign Exchange Forward | Accrued liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Unrealized gains | 0 | 77 | 596 |
Unrealized losses | 0 | (136) | (1,182) |
Net unrealized gains | 0 | (59) | (586) |
Foreign Exchange Forward | Other liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Unrealized gains | 0 | 0 | 1,035 |
Unrealized losses | 0 | 0 | (2,486) |
Net unrealized gains | $ 0 | $ 0 | $ (1,451) |
Derivative Financial Instrume_5
Derivative Financial Instruments - Schedule of Net Gains (Losses) on Cash Flow Hedges Activities (Details) - Cash Flow Hedging - Foreign Exchange Forward - Designated as Hedging Instrument - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2019 | Sep. 30, 2018 | Sep. 29, 2019 | Sep. 30, 2018 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net realized gains | $ 6,544 | $ 4,669 | $ 12,773 | $ 506 |
Cost of sales | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net realized gains | 4,678 | 3,358 | 9,278 | (1,483) |
Net revenues | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net realized gains | 1,889 | 1,328 | 3,366 | 2,090 |
Other | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net realized gains | $ (23) | $ (17) | $ 129 | $ (101) |
Derivative Financial Instrume_6
Derivative Financial Instruments - Narrative (Details) - Not Designated as Hedging Instrument - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 29, 2019 | Sep. 30, 2018 | Sep. 29, 2019 | Sep. 30, 2018 | Dec. 30, 2018 | |
Intercompany Loans | |||||
Derivative [Line Items] | |||||
Notional amount | $ 308,867 | $ 311,331 | $ 308,867 | $ 311,331 | $ 452,773 |
Foreign Exchange Forward | |||||
Derivative [Line Items] | |||||
Fair value | 2,290 | 532 | 2,290 | 532 | (1,551) |
Foreign Exchange Forward | Other Operating Income (Expense) | |||||
Derivative [Line Items] | |||||
Gain (loss) recognized in income for derivative instruments | 10,121 | 5,030 | 16,705 | 8,781 | |
Prepaid expenses and other current assets | Foreign Exchange Forward | |||||
Derivative [Line Items] | |||||
Fair value | 2,329 | $ 608 | 2,329 | $ 608 | $ 0 |
eOne Acquisition | Foreign Exchange Forward and Option | |||||
Derivative [Line Items] | |||||
Notional amount | 2,867,500 | 2,867,500 | |||
Fair value | 8,676 | 8,676 | |||
eOne Acquisition | Foreign Exchange Forward and Option | Other Operating Income (Expense) | |||||
Derivative [Line Items] | |||||
Gain (loss) recognized in income for derivative instruments | (25,533) | (25,533) | |||
eOne Acquisition | Prepaid expenses and other current assets | Foreign Exchange Forward and Option | |||||
Derivative [Line Items] | |||||
Fair value | 20,145 | 20,145 | |||
eOne Acquisition | Accounts payable and accrued liabilities | Foreign Exchange Forward and Option | |||||
Derivative [Line Items] | |||||
Fair value | $ 11,469 | $ 11,469 |
Derivative Financial Instrume_7
Derivative Financial Instruments - Fair Values of Undesignated Derivative Financial Instruments (Details) - Foreign Exchange Forward - Not Designated as Hedging Instrument - USD ($) $ in Thousands | Sep. 29, 2019 | Dec. 30, 2018 | Sep. 30, 2018 |
Derivatives, Fair Value [Line Items] | |||
Total unrealized (losses) gains, net | $ 2,290 | $ (1,551) | $ 532 |
Prepaid expenses and other current assets | |||
Derivatives, Fair Value [Line Items] | |||
Unrealized gains | 2,630 | 0 | 2,060 |
Unrealized losses | (301) | 0 | (1,452) |
Total unrealized (losses) gains, net | 2,329 | 0 | 608 |
Accrued liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Unrealized gains | 164 | 1,269 | 12 |
Unrealized losses | (203) | (2,820) | (33) |
Total unrealized (losses) gains, net | (39) | (1,551) | (21) |
Other liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Unrealized gains | 0 | 0 | 30 |
Unrealized losses | 0 | 0 | (85) |
Total unrealized (losses) gains, net | $ 0 | $ 0 | $ (55) |
Leases - Narrative (Details)
Leases - Narrative (Details) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 29, 2019USD ($) | Sep. 29, 2019USD ($) | |
Lessee, Lease, Description [Line Items] | ||
Operating lease expense | $ 8,907 | $ 26,982 |
Minimum | ||
Lessee, Lease, Description [Line Items] | ||
Remaining lease terms | 1 year | 1 year |
Maximum | ||
Lessee, Lease, Description [Line Items] | ||
Remaining lease terms | 18 years | 18 years |
Leases - Lease Cost (Details)
Leases - Lease Cost (Details) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 29, 2019USD ($) | Sep. 29, 2019USD ($) | |
Leases [Abstract] | ||
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 years 4 months 24 days | 6 years 4 months 24 days |
Weighted average discount rate, operating lease | 4.50% | 4.50% |
Leases - Maturities of Operatin
Leases - Maturities of Operating Lease Liabilities (Details) $ in Thousands | Sep. 29, 2019USD ($) |
Leases [Abstract] | |
2019 (excluding the six months ended June 30, 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 |
Less current portion of operating lease liabilities | 29,489 |
Non-current operating lease liability | 114,966 |
Operating lease right-of-use asset, net | $ 127,005 |
Segment Reporting - Net Revenue
Segment Reporting - Net Revenues by Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2019 | Sep. 30, 2018 | Sep. 29, 2019 | Sep. 30, 2018 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Net revenues, external | $ 1,575,173 | $ 1,569,686 | $ 3,292,220 | $ 3,190,485 |
Net revenues, affiliate | 0 | 0 | 0 | 0 |
Corporate and Eliminations | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Net revenues, external | 0 | 0 | 0 | 0 |
Net revenues, affiliate | (545,201) | (564,127) | (1,104,414) | (1,171,612) |
U.S. and Canada | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Net revenues, external | 898,269 | 912,179 | 1,766,649 | 1,714,536 |
Net revenues, affiliate | 2,535 | 2,364 | 7,379 | 7,093 |
International | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Net revenues, external | 561,137 | 560,704 | 1,221,224 | 1,229,093 |
Net revenues, affiliate | 0 | 2 | 186 | 290 |
Entertainment, Licensing and Digital | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Net revenues, external | 115,766 | 96,803 | 304,266 | 246,747 |
Net revenues, affiliate | 3,849 | 4,712 | 7,989 | 11,378 |
Global Operations | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Net revenues, external | 1 | 0 | 81 | 109 |
Net revenues, affiliate | $ 538,817 | $ 557,049 | $ 1,088,860 | $ 1,152,851 |
Segment Reporting - Narrative (
Segment Reporting - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2019 | Sep. 30, 2018 | Sep. 29, 2019 | Sep. 30, 2018 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Net revenues | $ 1,575,173 | $ 1,569,686 | $ 3,292,220 | $ 3,190,485 |
Operating Income (Loss) | 297,210 | 313,336 | 461,670 | 320,505 |
Gaming including Magic the Gathering and Monopoly | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Net revenues | $ 449,393 | 447,844 | $ 1,086,151 | 964,159 |
Wizards Of The Coast Digital Revenue | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Net revenues | 11,999 | 33,271 | ||
Wizards of the Coast Digital Operating Profit | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Operating Income (Loss) | $ 3,455 | $ 9,825 |
Segment Reporting - Operating P
Segment Reporting - Operating Profit (Loss) by Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2019 | Sep. 30, 2018 | Sep. 29, 2019 | Sep. 30, 2018 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Operating profit (loss) | $ 297,210 | $ 313,336 | $ 461,670 | $ 320,505 |
Corporate and Eliminations | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Operating profit (loss) | 618 | (16,291) | 27,573 | (30,786) |
U.S. and Canada | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Operating profit (loss) | 193,686 | 223,061 | 313,795 | 269,539 |
International | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Operating profit (loss) | 67,238 | 66,274 | 51,410 | 10,359 |
Entertainment, Licensing and Digital | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Operating profit (loss) | 24,594 | 37,113 | 62,550 | 76,016 |
Global Operations | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Operating profit (loss) | $ 11,074 | $ 3,179 | $ 6,342 | $ (4,623) |
Segment Reporting - Total Asset
Segment Reporting - Total Assets by Segments (Details) - USD ($) $ in Thousands | Sep. 29, 2019 | Dec. 30, 2018 | Sep. 30, 2018 |
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Total assets | $ 5,554,624 | $ 5,262,988 | $ 5,495,329 |
Corporate and Eliminations | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Total assets | (4,458,181) | (3,684,323) | (5,053,645) |
U.S. and Canada | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Total assets | 3,331,125 | 2,898,816 | 3,028,291 |
International | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Total assets | 2,394,488 | 2,229,053 | 2,323,866 |
Entertainment, Licensing and Digital | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Total assets | 1,031,906 | 621,595 | 890,526 |
Global Operations | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Total assets | $ 3,255,286 | $ 3,197,847 | $ 4,306,291 |
Segment Reporting - Schedule of
Segment Reporting - Schedule of International Segment Net Revenues by Major Geographic Region (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2019 | Sep. 30, 2018 | Sep. 29, 2019 | Sep. 30, 2018 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net revenues | $ 1,575,173 | $ 1,569,686 | $ 3,292,220 | $ 3,190,485 |
International | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net revenues | 561,137 | 560,704 | 1,221,224 | 1,229,093 |
International | Europe | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net revenues | 319,277 | 331,353 | 673,728 | 686,490 |
International | Latin America | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net revenues | 151,987 | 145,703 | 305,106 | 308,065 |
International | Asia Pacific | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net revenues | $ 89,873 | $ 83,648 | $ 242,390 | $ 234,538 |
Segment Reporting - Net Reven_2
Segment Reporting - Net Revenues by Product Category (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2019 | Sep. 30, 2018 | Sep. 29, 2019 | Sep. 30, 2018 | |
Revenue from External Customer [Line Items] | ||||
Net revenues | $ 1,575,173 | $ 1,569,686 | $ 3,292,220 | $ 3,190,485 |
Franchise Brands | ||||
Revenue from External Customer [Line Items] | ||||
Net revenues | 779,659 | 847,745 | 1,749,948 | 1,715,986 |
Partner Brands | ||||
Revenue from External Customer [Line Items] | ||||
Net revenues | 427,029 | 305,827 | 812,466 | 714,424 |
Hasbro Gaming | ||||
Revenue from External Customer [Line Items] | ||||
Net revenues | 232,287 | 280,832 | 463,272 | 520,334 |
Emerging Brands | ||||
Revenue from External Customer [Line Items] | ||||
Net revenues | $ 136,198 | $ 135,282 | $ 266,534 | $ 239,741 |
Restructuring Actions - Narrati
Restructuring Actions - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Apr. 01, 2018 | Sep. 29, 2019 | Dec. 30, 2018 | |
Restructuring Charges [Abstract] | |||
Pre-tax restructuring charges relating to severance and other employee costs | $ 17,349 | $ 0 | |
Severance expense recorded, fourth quarter | $ 72,000 |
Restructuring Actions - Schedul
Restructuring Actions - Schedule of Restructuring and Related Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Sep. 29, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | |
Restructuring Reserve [Roll Forward] | |||
Remaining amounts to be paid as of December 30, 2018 | $ 69,192 | ||
Payments for restructuring | $ (6,696) | $ (7,932) | $ (7,620) |
Remaining amounts as of September 29, 2019 | $ 46,944 |
Uncategorized Items - has-20190
Label | Element | Value |
AOCI Attributable to Parent [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (21,503,000) |
Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 21,503,000 |