Cover
Cover - shares | 3 Months Ended | |
Mar. 28, 2021 | Apr. 27, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 28, 2021 | |
Document Transition Report | false | |
Entity File Number | 1-6682 | |
Entity Registrant Name | HASBRO, INC. | |
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, $0.50 par value per share | |
Trading Symbol | HAS | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding (in shares) | 137,568,617 | |
Entity Central Index Key | 0000046080 | |
Current Fiscal Year End Date | --12-26 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Mar. 28, 2021 | Dec. 27, 2020 | Mar. 29, 2020 |
Current assets | |||
Cash and cash equivalents including restricted cash of $72.1 million, $86.2 million and $73.2 million | $ 1,430.4 | $ 1,449.7 | $ 1,237.9 |
Accounts receivable, less allowance for doubtful accounts of $32.5 million, $16.9 million and $28.1 million | 810.4 | 1,391.7 | 963.8 |
Inventories | 429.2 | 395.6 | 444.4 |
Prepaid expenses and other current assets | 566 | 609.6 | 672.4 |
Total current assets | 3,236 | 3,846.6 | 3,318.5 |
Property, plant and equipment, less accumulated depreciation of $563.5 million, $513.2 million and $553.0 million | 482.7 | 489 | 455.9 |
Other assets | |||
Goodwill | 3,691.4 | 3,691.7 | 3,572.7 |
Other intangible assets, net of accumulated amortization of $999.7 million, $932.0 million and $964.6 million | 1,513 | 1,530.8 | 1,615.8 |
Other | 1,266 | 1,260.2 | 1,461.5 |
Total other assets | 6,470.4 | 6,482.7 | 6,650 |
Total assets | 10,189.1 | 10,818.3 | 10,424.4 |
Current liabilities | |||
Short-term borrowings | 8.8 | 6.6 | 9.4 |
Current portion of long-term debt | 148.9 | 432.6 | 64.5 |
Accounts payable | 312.1 | 425.5 | 308.5 |
Accrued liabilities | 1,283.6 | 1,538.6 | 1,356.2 |
Total current liabilities | 1,753.4 | 2,403.3 | 1,738.6 |
Long-term debt | 4,674.1 | 4,660 | 5,156.3 |
Other Liabilities, Noncurrent | 777.7 | 793.9 | 739 |
Total liabilities | 7,205.2 | 7,857.2 | 7,633.9 |
Redeemable noncontrolling interests | 24 | 24.4 | 26 |
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 220,286,736 shares at March 28, 2021, March 29, 2020, and December 27, 2020 | 110.1 | 110.1 | 110.1 |
Additional paid-in capital | 2,339.6 | 2,329.1 | 2,282.4 |
Retained earnings | 4,226.8 | 4,204.2 | 4,191.8 |
Accumulated other comprehensive loss | (206.4) | (195) | (294.8) |
Treasury stock, at cost; 82,724,111 shares at March 28, 2021; 83,279,734 shares at March 29, 2020; and 82,979,403 shares at December 27, 2020 | (3,550.6) | (3,551.7) | (3,560.3) |
Noncontrolling interests | 40.4 | 40 | 35.3 |
Total shareholders' equity | 2,959.9 | 2,936.7 | 2,764.5 |
Total liabilities, noncontrolling interests and shareholders' equity | $ 10,189.1 | $ 10,818.3 | $ 10,424.4 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Mar. 28, 2021 | Dec. 27, 2020 | Mar. 29, 2020 |
ASSETS | |||
Restricted cash | $ 72.1 | $ 73.2 | $ 86.2 |
Accounts receivable, allowance for doubtful accounts | 32.5 | 28.1 | 16.9 |
Property, plant and equipment, accumulated depreciation | 563.5 | 553 | 513.2 |
Other intangibles, accumulated amortization | $ 999.7 | $ 964.6 | $ 932 |
Preference stock, par value (in dollars per share) | $ 2.50 | $ 2.50 | $ 2.50 |
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) | $ 0.50 | $ 0.50 | $ 0.50 |
Common stock, authorized shares (in shares) | 600,000,000 | 600,000,000 | 600,000,000 |
Common stock, issued (in shares) | 220,286,736 | 220,286,736 | 220,286,736 |
Treasury stock (in shares) | 82,724,111 | 82,979,403 | 83,279,734 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Millions | 3 Months Ended | |
Mar. 28, 2021 | Mar. 29, 2020 | |
Income Statement [Abstract] | ||
Net revenues | $ 1,114.8 | $ 1,105.6 |
Costs and expenses: | ||
Cost of sales | 289.9 | 262.7 |
Program cost amortization | 97.5 | 132.2 |
Royalties | 108.9 | 112.8 |
Product development | 61.8 | 53.8 |
Advertising | 87.9 | 101.7 |
Amortization of intangibles | 32.9 | 36.8 |
Selling, distribution and administration | 288.6 | 279.1 |
Acquisition and related costs | 0 | 149.8 |
Total costs and expenses | 967.5 | 1,128.9 |
Operating profit (loss) | 147.3 | (23.3) |
Non-operating expense (income): | ||
Interest expense | 47.9 | 54.7 |
Interest income | (1.2) | (4.7) |
Other income, net | (28.9) | (1.3) |
Total non-operating expense, net | 17.8 | 48.7 |
Earnings (loss) before income taxes | 129.5 | (72) |
Income tax expense (benefit) | 12 | (4.1) |
Net earnings (loss) | 117.5 | (67.9) |
Net earnings attributable to noncontrolling interests | 1.3 | 1.8 |
Net earnings (loss) attributable to Hasbro, Inc. | $ 116.2 | $ (69.7) |
Net earnings (loss) per common share: | ||
Basic (in dollars per share) | $ 0.84 | $ (0.51) |
Diluted (in dollars per share) | 0.84 | (0.51) |
Cash dividends declared per common share (in dollars per share) | $ 0.68 | $ 0.68 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Earnings - USD ($) $ in Millions | 3 Months Ended | |
Mar. 28, 2021 | Mar. 29, 2020 | |
Statement of Comprehensive Income [Abstract] | ||
Net earnings (loss) | $ 117.5 | $ (67.9) |
Other comprehensive earnings (losses): | ||
Foreign currency translation adjustments, net of tax | (16.1) | (131.8) |
Unrealized holding losses on available-for-sale securities, net of tax | 0 | (0.4) |
Net gains on cash flow hedging activities, net of tax | 5.6 | 25 |
Reclassifications to earnings, net of tax: | ||
Net gains on cash flow hedging activities | (1.1) | (3.7) |
Amortization of unrecognized pension and postretirement amounts | 0.2 | 0.3 |
Total other comprehensive loss, net of tax | (11.4) | (110.6) |
Total comprehensive earnings attributable to noncontrolling interests | 1.3 | 1.8 |
Total comprehensive earnings (loss) attributable to Hasbro, Inc. | $ 104.8 | $ (180.3) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 3 Months Ended | |
Mar. 28, 2021 | Mar. 29, 2020 | |
Statement of Cash Flows [Abstract] | ||
Net earnings (loss) | $ 117.5 | $ (67.9) |
Adjustments to reconcile net earnings to net cash provided by operating activities: | ||
Depreciation of plant and equipment | 25 | 23.8 |
Amortization of intangibles | 32.9 | 36.8 |
Asset impairments | 0 | 40.9 |
Program cost amortization | 97.5 | 132.2 |
Deferred income taxes | 16.3 | (3.2) |
Stock-based compensation | 16.7 | 10.7 |
Other non-cash items | 5.4 | 8.3 |
Change in operating assets and liabilities net of acquired balances: | ||
Decrease in accounts receivable | 592 | 653.7 |
Increase in inventories | (42.1) | (13.9) |
Decrease (increase) in prepaid expenses and other current assets | 44.9 | (23) |
Program spend, net | (147.1) | (168) |
Decrease in accounts payable and accrued liabilities | (382.6) | (315.8) |
Other | 1.2 | (23) |
Net cash provided by operating activities | 377.6 | 291.6 |
Cash flows from investing activities: | ||
Additions to property, plant and equipment | (23.9) | (30.8) |
Acquisitions, net of cash acquired | 0 | (4,403.9) |
Other | (1.6) | 4.2 |
Net cash utilized by investing activities | (25.5) | (4,430.5) |
Cash flows from financing activities: | ||
Proceeds from borrowings with maturity greater than three months | 72.4 | 1,017.7 |
Repayments of borrowings with maturity greater than three months | (344.9) | (50.2) |
Net proceeds from (repayments of) other short-term borrowings | 2 | |
Net proceeds from (repayments of) other short-term borrowings | (1.4) | |
Stock-based compensation transactions | 4.7 | 1.8 |
Dividends paid | (93.4) | (93.1) |
Payments related to tax withholding for share-based compensation | (9.3) | (5.3) |
Redemption of equity instruments | 0 | (47.4) |
Other | (2.3) | (2.6) |
Net cash (utilized) provided by financing activities | (370.8) | 819.5 |
Effect of exchange rate changes on cash | (0.6) | (23.1) |
Decrease in cash, cash equivalents and restricted cash | (19.3) | (3,342.5) |
Cash, cash equivalents and restricted cash at beginning of year | 1,449.7 | 4,580.4 |
Cash, cash equivalents and restricted cash at end of period | 1,430.4 | 1,237.9 |
Cash paid during the period for: | ||
Interest | 34.5 | 13.5 |
Income taxes | $ 18.3 | $ 19.9 |
Consolidated Statements of Shar
Consolidated Statements of Shareholder's Equity and Redeemable Noncontrolling Interests - USD ($) $ in Millions | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Treasury Stock | Noncontrolling Interests |
Balance at the beginning of the period at Dec. 29, 2019 | $ 2,995.5 | $ 110.1 | $ 2,275.7 | $ 4,354.6 | $ (184.2) | $ (3,560.7) | $ 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Noncontrolling interests related to acquisition of Entertainment One Ltd. | 39.9 | 39.9 | |||||
Net earnings (loss) attributable to Hasbro, Inc. | (69.7) | (69.7) | |||||
Net earnings (loss) attributable to noncontrolling interests | 1.8 | 1.8 | |||||
Other comprehensive loss | (110.6) | (110.6) | |||||
Stock-based compensation transactions | (3.6) | (4) | 0.4 | ||||
Stock-based compensation expense | 10.7 | 10.7 | |||||
Dividends declared | (93.1) | (93.1) | |||||
Distributions paid to noncontrolling owners and other foreign exchange | (6.4) | (6.4) | |||||
Balance at the end of the period at Mar. 29, 2020 | 2,764.5 | 110.1 | 2,282.4 | 4,191.8 | (294.8) | (3,560.3) | 35.3 |
Beginning balance at Dec. 29, 2019 | 0 | ||||||
Increase (Decrease) in Temporary Equity [Roll Forward] | |||||||
Noncontrolling interests related to acquisition of Entertainment One Ltd. | 23.6 | ||||||
Distributions paid to noncontrolling owners and other foreign exchange | 2.4 | ||||||
Ending balance at Mar. 29, 2020 | 26 | ||||||
Balance at the beginning of the period at Dec. 27, 2020 | 2,936.7 | 110.1 | 2,329.1 | 4,204.2 | (195) | (3,551.7) | 40 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net earnings (loss) attributable to Hasbro, Inc. | 116.2 | 116.2 | |||||
Net earnings (loss) attributable to noncontrolling interests | 1.3 | 1.3 | |||||
Other comprehensive loss | (11.4) | (11.4) | |||||
Stock-based compensation transactions | (4.7) | (5.8) | 1.1 | ||||
Stock-based compensation expense | 16.7 | 16.7 | |||||
Dividends declared | (93.6) | (93.6) | |||||
Distributions paid to noncontrolling owners and other foreign exchange | (1.3) | (0.4) | (0.9) | ||||
Balance at the end of the period at Mar. 28, 2021 | 2,959.9 | $ 110.1 | $ 2,339.6 | $ 4,226.8 | $ (206.4) | $ (3,550.6) | $ 40.4 |
Beginning balance at Dec. 27, 2020 | 24.4 | ||||||
Increase (Decrease) in Temporary Equity [Roll Forward] | |||||||
Distributions paid to noncontrolling owners and other foreign exchange | (0.4) | ||||||
Ending balance at Mar. 28, 2021 | $ 24 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 28, 2021 | |
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 March 28, 2021 and March 29, 2020, 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 March 28, 2021 and March 29, 2020 were each 13-week periods. The results of operations for the quarter ended March 28, 2021 are not necessarily indicative of results to be expected for the full year 2021, nor were those of the comparable 2020 period representative of those actually experienced for the full year 2020. Segment Realignment Beginning with the first quarter of 2021, the Company realigned its financial reporting segments and business units, in order to align its reportable segments more closely with its current business structure. Reclassifications of certain prior year financial information has been made to conform to the current-year presentation. None of the changes impact the Company's previously reported consolidated net revenue, operating profits (losses), net earnings (losses) or net earnings (losses) per share. See note 14 for more information on the Company’s 2021 segment realignment. Legal Settlement During the first quarter of 2021, the Company realized a gain of $25.6 million from a legal settlement related to a dispute associated with historical eOne foreign exchange hedging activities. The gain is included in other income, net within the Company's consolidated financial statements, included in Part I of this Form 10-Q. Significant Accounting Policies The Company's significant accounting policies are summarized in Note 1 to the consolidated financial statements included in the Company's Form 10-K for the year ended December 27, 2020. These condensed consolidated financial statements have been prepared without audit, pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC"). Certain information and disclosures normally included in the consolidated financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations. The Company filed with the SEC audited consolidated financial statements for the fiscal year ended December 27, 2020 in its Annual Report on Form 10-K ("2020 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 In August 2018, the FASB issued Accounting Standards Update No. 2018-14 (ASU 2018-14) Compensation – Retirement Benefits – Defined Benefit Plans – General (Subtopic 715-20)- Disclosure Framework – Changes to the Disclosure Requirements for Defined Benefit Plans . The amendments in this update modify the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. For public companies, this standard is effective for annual reporting periods beginning after December 15, 2020, and early adoption is permitted. The Company adopted the standard in the first quarter of 2021 and the adoption of the standard did not have a material impact on its consolidated financial statements. In December 2019, the FASB issued Accounting Standards Update No. 2019-12 (ASU 2019-12), Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes . The amendments in this update remove certain exceptions for performing intraperiod tax allocations, recognizing deferred taxes for investments, and calculating income taxes in interim periods. The guidance also simplifies the accounting for franchise taxes, transactions that result in a step-up in the tax basis of goodwill, and the effect of enacted changes in tax laws or rates in interim periods. ASU 2019-12 is effective for fiscal years beginning after December 15, 2020 and early adoption is permitted. The Company adopted the standard in the first quarter of 2021 and the adoption of the standard did not have a material impact on its consolidated financial statements. Issued Accounting Pronouncements In March of 2020, the FASB issued Accounting Standards Update No. 2020-04 (ASU 2020-04) Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. The amendments in this update provide optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships, and other transactions, for a limited period of time, to ease the potential burden of recognizing the effects of reference rate reform on financial reporting. The amendments in this update apply to contracts, hedging relationships and other transactions that reference the London Inter-Bank Offered Rate ("LIBOR") or another reference rate expected to be discontinued due to the global transition away from LIBOR and certain other interbank offered rates. An entity may elect to apply the amendments provided by this update beginning March 12, 2020 through December 31, 2022. The Company does not currently expect the change from LIBOR to an alternate rate to have a material impact on its consolidated financial statements, and is continuing to evaluate the standard's potential impact to its consolidated financial statements. |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Mar. 28, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition Revenue Recognition Revenue is recognized when control of the promised goods or content 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 or content. 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 Consumer Products and Entertainment segments 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 and records the aggregate deferred revenues as contract liabilities. The current portion of contract liabilities were recorded within Accrued Liabilities and the long-term portion were recorded as Other Non-current Liabilities in the Company’s consolidated balance sheets. The Company records contract assets in the case of (1) minimum guarantees, which are recognized ratably over the term of the respective license period, being recognized in advance of contractual invoicing, and (2) film and television distribution revenue recorded for content delivered but for which payment will occur over the license term. The current portion of contract assets were recorded in Prepaid Expenses and Other Current Assets, respectively, and the long-term portion were recorded as Other Long-Term Assets. At March 28, 2021, March 29, 2020 and December 27, 2020 the Company had the following contract assets and liabilities in its consolidated balance sheets: March 28, 2021 March 29, 2020 December 27, 2020 Assets Contract assets - current $ 257.9 $ 271.0 $ 284.4 Contract assets - long term 70.0 87.5 77.0 Total $ 327.9 $ 358.5 $ 361.4 Liabilities Contract liabilities - current $ 146.9 $ 185.6 $ 161.0 Contract liabilities - long term 16.6 20.6 18.2 Total $ 163.5 $ 206.2 $ 179.2 For the quarter ended March 28, 2021, the Company collected $78.6 million of the contract assets and recognized $53.3 million of contract liabilities that were included in the December 27, 2020 balances. Unsatisfied performance obligations relate primarily to in-production television content to be delivered in the future under existing agreements with partnering content providers such as broadcasters, distributors, television networks and subscription video on demand services. As of March 28, 2021, unrecognized revenue attributable to unsatisfied performance obligations expected to be recognized in the future was $329.7 million. Of this amount, we expect to recognize approximately $219.9 million in the remainder of 2021, $89.1 million in 2022, and 15.8 million in 2023. These amounts include only fixed consideration. Disaggregation of revenues The Company disaggregates its revenues from contracts with customers by reportable segment: Consumer Products, Entertainment and Wizards of the Coast & Digital Gaming. The Company further disaggregates revenues within its Consumer Products segment by major geographic region: North America, Europe, Latin America, and Asia Pacific; and within its Entertainment segment by category: Film & TV; Family Brands; and Music. Finally, the Company disaggregates its revenues by brand portfolio into five brand categories: Franchise Brands, Partner Brands, Hasbro Gaming, Emerging Brands, and Entertainment. We believe these collectively depict how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors. See Note 14 for further information. |
Business Combination
Business Combination | 3 Months Ended |
Mar. 28, 2021 | |
Business Combinations [Abstract] | |
Business Combination | Business Combination On December 30, 2019, the Company completed its acquisition of eOne, a global independent studio that specializes in the development, acquisition, production, financing, distribution and sales of entertainment content. The aggregate purchase price of $4.6 billion was comprised of $3.8 billion of cash consideration for shares outstanding and $0.8 billion related to the redemption of eOne's outstanding senior secured notes and the payoff of eOne's revolving credit facility. The Company financed the acquisition with proceeds from the following debt and equity financings: (1) the issuance of senior unsecured notes in an aggregate principal amount of $2.4 billion in November 2019, (2) the issuance of 10.6 million shares of common stock at a public offering price of $95.00 per share in November 2019 (resulting in net proceeds of $975.2 million) and (3) $1.0 billion in term loans provided by a term loan agreement, which were borrowed on the date of closing. See Note 8 for further discussion of the issuance of the senior unsecured notes and term loan agreement. The addition of eOne accelerates the Company's brand blueprint strategy by expanding our brand portfolio with eOne's global preschool brands, adding proven TV and film expertise and executive leadership as well as by enhancing brand building capabilities and our storytelling capabilities to strengthen Hasbro brands. eOne's results of operations and financial position have been included in the Company's consolidated financial statements and accompanying condensed footnotes since the date of the acquisition. The acquisition was accounted for as a business combination under FASB Accounting Standards Codification Topic 805, Business Combinations (“Topic 805”). Pursuant to Topic 805, the Company allocated the eOne purchase price to tangible and identifiable intangible assets acquired and liabilities assumed based on their estimated fair values as of the acquisition date, December 30, 2019. The excess of the purchase price over those fair values was recorded to goodwill. The following table summarizes the intangible assets acquired as part of the eOne Acquisition: Weighted Average Intangible assets acquired Amortization Period Fair Value Established brands 10 years $ 615.0 Trade names 15 years 100.0 Artist relationships 14 years 100.0 Music catalogs 12 years 120.0 Other 8 years 121.0 Total intangible assets acquired 11 years $ 1,056.0 Intangible assets consist of intellectual property associated with established brands, eOne artist relationships, eOne music catalogs and trademarks and tradenames with estimated useful lives ranging from 7 to 15 years, determined based on when the related cash flows are expected to be realized. The fair value of the intangible assets acquired was determined based on the estimated future cash flows to be generated from the acquired assets, considering assumptions related to contract renewal rates and estimated brand franchise revenue growth. eOne acquired intangible asset amortization expense for the quarters ended March 28, 2021 and March 29, 2020 were $24.9 million and $25.0 million, respectively. Deferred tax liabilities within other liabilities were adjusted to record the deferred tax impact of purchase price accounting adjustments, primarily related to intangible assets. Investments in productions and content, or IIP and IIC, were valued at $564.8 million on the acquisition date, and include the fair value of completed films and television programs which have been produced by eOne or for which eOne has acquired distribution rights, as well as the fair value of films and television programs in production, pre-production and development. For films and television programs, fair values were estimated based on forecasted cash flows, discounted to present value. For titles less than 3 years old and titles in development, the content assets will be amortized using the individual film forecast method, wherein the amortization will phase to the revenues incurred. For titles over 3 years old, the estimated useful life is 10 years, and will be amortized straight-line over that period. Goodwill of $3.2 billion represents the excess of the purchase price over the fair value of the underlying tangible and identifiable intangible assets acquired and liabilities assumed. The acquisition goodwill represents the value placed on the combined company’s brand building capabilities, our storytelling capabilities and franchise economics in TV, film and other mediums to strengthen Hasbro brands. In addition, the acquisition goodwill depicts added benefits of long-term profitable growth through in-sourcing toy and game production for the acquired preschool brands and cost-synergies, as well as future revenue growth opportunities. The goodwill recorded as part of this acquisition was included within the Entertainment and Consumer Products segments for the year ended December 27, 2020. The goodwill associated with the acquisition will not be amortized for financial reporting purposes and will not be deductible for federal tax purposes. See note 5 for information on the Company's goodwill reallocation during the first quarter of 2021. For the quarter ended March 29, 2020 , the Company incurred $149.8 million of charges related to the eOne Acquisition, which were recorded in acquisition and related costs within the Company’s Consolidated Statement of Operations. Included within the Entertainment segment results for the quarter ended March 29, 2020 were $98.5 million of acquisition and related charges. The remaining charges were included in Corporate and Other. The acquisition and related costs for the quarter ended March 29, 2020 consisted of the following: • Acquisition and integration costs of $95.7 million, including $47.4 million of expense associated with the acceleration of eOne stock-based compensation and $38.2 million of advisor fees settled at the closing of the acquisition, as well as integration costs; and |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 28, 2021 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Net earnings per share data for the quarters ended March 28, 2021 and March 29, 2020 were computed as follows: 2021 2020 Quarter Basic Diluted Basic Diluted Net earnings (loss) attributable to Hasbro, Inc. $ 116.2 116.2 $ (69.7) (69.7) Average shares outstanding 137.7 137.7 137.1 137.1 Effect of dilutive securities: Options and other share-based awards — 0.4 — — Equivalent Shares 137.7 138.1 137.1 137.1 Net earnings (loss) attributable to Hasbro, Inc. per common share $ 0.84 0.84 $ (0.51) (0.51) For the quarters ended March 28, 2021 and March 29, 2020, options and restricted stock units totaling 2.2 million and 4.1 million respectively, were excluded from the calculation of diluted earnings per share because to include them would have been anti-dilutive. Of the 2020 amount, 1.2 million shares would have been included in the calculation of diluted shares had the Company not had a net loss in the first quarter of 2020. Assuming that these awards and options were included, under the treasury stock method, they would have resulted in an additional 0.4 million shares being included in the diluted earnings per share calculation for the quarter ended March 29, 2020. |
Goodwill
Goodwill | 3 Months Ended |
Mar. 28, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | Goodwill During the first quarter of 2021, the Company realigned its financial reporting structure creating the following three principal reportable segments: Consumer Products, Wizards of the Coast & Digital Gaming and Entertainment. In our realignment, some, but not all, of our reporting units were changed. As a result of these changes, the Company reallocated its goodwill among the revised reporting units based on the change in relative fair values of the respective reporting units. Consumer Products Wizards of the Coast & Digital Gaming Entertainment Total 2021 Balance at December 27, 2020 $ 1,385.7 53.1 2,252.9 $ 3,691.7 Goodwill allocation 199.4 254.2 (453.6) — Foreign exchange translation (0.1) 0.2 (0.4) (0.3) Balance at March 28, 2021 $ 1,585.0 307.5 1,798.9 $ 3,691.4 In conjunction with the goodwill reallocation described above, during the first quarter of 2021, the Company performed an impairment test of goodwill balances held by the reporting units impacted by the segment realignment. The reporting units were tested as of December 28, 2020 and included our Europe, Asia Pacific, Global Consumer Products Licensing, Wizards of the Coast and Family Brands reporting units. Based on the results of the goodwill assessment, we determined that the fair values of each of these reporting units exceeded their carrying values. As such, we concluded that there was no indication of goodwill impairment for these reporting units. |
Other Comprehensive Earnings (L
Other Comprehensive Earnings (Loss) | 3 Months Ended |
Mar. 28, 2021 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | |
Other Comprehensive Earnings (Loss) | Other Comprehensive Earnings (Loss) Components of other comprehensive earnings (loss) are presented within the consolidated statements of comprehensive earnings (loss). The following table presents the related tax effects on changes in other comprehensive earnings (loss) for the quarters ended March 28, 2021 and March 29, 2020. Quarter Ended March 28, March 29, Other comprehensive earnings (loss), tax effect: Tax benefit on unrealized holding gains $ — $ 0.1 Tax expense on cash flow hedging activities (1.0) (7.2) Reclassifications to earnings, tax effect: Tax expense on cash flow hedging activities 0.2 0.3 Amortization of unrecognized pension and postretirement amounts (0.1) (0.1) Total tax effect on other comprehensive earnings (loss) $ (0.9) $ (6.9) Changes in the components of accumulated other comprehensive earnings (loss) for the three months ended March 28, 2021 and March 29, 2020 are as follows: Pension and Gains Unrealized Foreign Total 2021 Balance at December 27, 2020 $ (40.7) (22.1) 0.4 (132.6) (195.0) Current period other comprehensive earnings (loss) 0.2 4.5 — (16.1) (11.4) Balance at March 28, 2021 $ (40.5) (17.6) 0.4 (148.7) (206.4) 2020 Balance at December 29, 2019 $ (36.2) (5.2) (0.2) (142.6) (184.2) Current period other comprehensive earnings (loss) 0.3 21.3 (0.4) (131.8) (110.6) Balance at March 29, 2020 $ (35.9) 16.1 (0.6) (274.4) (294.8) Gains (Losses) on Derivative Instruments At March 28, 2021, the Company had remaining net deferred losses on foreign currency forward contracts, net of tax, of $1.4 million in accumulated other comprehensive loss ("AOCE"). These instruments hedge payments related to inventory purchased in the first quarter of 2021 or forecasted to be purchased during the remainder of 2021 through 2022, intercompany expenses expected to be paid or received during 2021, television and movie production costs paid in 2021, and cash receipts for sales made at the end of the first quarter of 2021 or forecasted to be made in the remainder of 2021 and, to a lesser extent, 2022. 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 3.15% Notes, that were repaid in full in the aggregate principal amount of $300.0 million during the first quarter of 2021 (See Note 8) and, the 5.10% Notes due 2044. At the date of debt issuance, these contracts were terminated and the fair value on the date of settlement was deferred in AOCE and is being amortized to interest expense over the life of the related notes using the effective interest rate method. At March 28, 2021, deferred losses, net of tax of $16.2 million related to these instruments remained in AOCE. For the quarters ended March 28, 2021 and March 29, 2020, previously deferred losses of $0.5 million, were reclassified from AOCE to net earnings. |
Accrued Liabilities
Accrued Liabilities | 3 Months Ended |
Mar. 28, 2021 | |
Payables and Accruals [Abstract] | |
Accrued Liabilities | Accrued Liabilities Components of accrued liabilities for the periods ended March 28, 2021, March 29, 2020 and December 27, 2020 were as follows: March 28, 2021 March 29, 2020 December 27, 2020 Participations and residuals $ 289.8 $ 375.4 $ 295.6 Royalties 126.7 120.8 229.2 Deferred revenue 146.9 185.6 161.0 Payroll and management incentives 36.2 36.5 132.4 Dividends 93.5 93.2 93.4 Other taxes 67.5 49.6 81.9 Advertising 69.7 44.1 58.6 Severance 44.0 43.9 49.7 Other 409.3 407.1 436.8 Total accrued liabilities $ 1,283.6 $ 1,356.2 $ 1,538.6 |
Financial Instruments
Financial Instruments | 3 Months Ended |
Mar. 28, 2021 | |
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 March 28, 2021, March 29, 2020 and December 27, 2020, the carrying cost of these instruments approximated their fair value. The Company's financial instruments at March 28, 2021, March 29, 2020 and December 27, 2020 also include certain assets and liabilities measured at fair value (see Notes 11 and 12) as well as long-term borrowings. The carrying costs, which are equal to the outstanding principal amounts, and fair values of the Company's long-term borrowings as of March 28, 2021, March 29, 2020 and December 27, 2020 are as follows: March 28, 2021 March 29, 2020 December 27, 2020 Carrying Fair Carrying Fair Carrying Fair 3.90% Notes Due 2029 $ 900.0 961.9 $ 900.0 774.5 $ 900.0 1,011.2 3.55% Notes Due 2026 675.0 731.2 675.0 641.6 675.0 752.7 3.00% Notes Due 2024 500.0 533.9 500.0 480.6 500.0 540.6 6.35% Notes Due 2040 500.0 639.6 500.0 498.2 500.0 636.5 3.50% Notes Due 2027 500.0 535.8 500.0 465.4 500.0 544.5 2.60% Notes Due 2022 300.0 309.6 300.0 295.3 300.0 311.5 5.10% Notes Due 2044 300.0 333.8 300.0 251.7 300.0 338.1 3.15% Notes Due 2021 (1) — — 300.0 299.9 300.0 302.3 6.60% Debentures Due 2028 109.9 134.4 109.9 122.6 109.9 137.4 Variable % Notes Due December 30, 2022 300.0 300.0 400.0 400.0 300.0 300.0 Variable % Notes Due December 30, 2024 570.0 570.0 600.0 600.0 577.5 577.5 Production Financing Facilities 201.8 201.8 175.6 175.6 165.5 165.5 Total long-term debt $ 4,856.7 5,252.0 $ 5,260.5 5,005.4 $ 5,127.9 5,617.8 Less: Deferred debt expenses 33.7 — 39.7 — 35.3 — Less: Current portion 148.9 — 64.5 — 432.6 — Long-term debt $ 4,674.1 5,252.0 $ 5,156.3 5,005.4 $ 4,660.0 5,617.8 (1) During the first quarter of 2021 the Company repaid in full its 3.15% Notes, in the aggregate amount of $300.0 million due in May 2021. In November 2019, in conjunction with the Company's acquisition of eOne, the Company issued an aggregate of $2.4 billion of senior unsecured debt securities (the "Notes") consisting of the following tranches: $300.0 million of notes due 2022 (the "2022 Notes") that bear interest at a fixed rate of 2.60%, $500.0 million of notes due 2024 (the "2024 Notes") that bear interest at a fixed rate of 3.00%, $675.0 million of notes due 2026 (the "2026 Notes") that bear interest at a fixed rate of 3.55% and $900.0 million of notes due 2029 (the "2029 Notes") that bear interest at a fixed rate of 3.90%. Net proceeds from the issuance of the Notes, after deduction of $20.0 million of underwriting discount and fees, totaled $2.4 billion. These costs are being amortized over the life of the Notes, which range from three In September 2019, the Company entered into a $1.0 billion Term Loan Agreement (the "Term Loan Agreement”) with Bank of America N.A. (“Bank of America”), as administrative agent, and certain financial institutions as lenders, pursuant to which such lenders committed to provide, contingent upon the completion of the eOne Acquisition and certain other customary conditions to funding, (1) a three-year senior unsecured term loan facility in an aggregate principal amount of $400.0 million (the “Three-Year Tranche”) and (2) a five-year senior unsecured term loan facility in an aggregate principal amount of $600.0 million (the “Five-Year Tranche” and together with the Three-Year Tranche, the “Term Loan Facilities”). Loans under the Term Loan Facilities bear interest at the Company’s option, at either the Eurocurrency Rate or the Base Rate, in each case plus a per annum applicable rate that fluctuates (1) in the case of the Three-Year Tranche, between 87.5 basis points and 175.0 basis points, in the case of loans priced at the Eurocurrency Rate, and between 0.0 basis points and 75.0 basis points, in the case of loans priced at the Base Rate, and (2) in the case of the Five-Year Tranche, between 100.0 basis points and 187.5 basis points, in the case of loans priced at the Eurocurrency Rate, and between 0.0 basis points and 87.5 basis points, in the case of loans priced at the Base Rate, in each case, based upon the non-credit enhanced, senior unsecured long-term debt ratings of the Company by Fitch Ratings Inc., Moody’s Investor Service, Inc. and S&P Global Rankings, subject to certain provisions taking into account potential differences in ratings issued by the relevant rating agencies or a lack of ratings issued by such rating agencies. Loans under the Five-Year Tranche require principal amortization payments that are payable in equal quarterly installments of 5.0% per annum of the original principal amount thereof for each of the first two years after funding, increasing to 10.0% per annum of the original principal amount thereof for each subsequent year. The Term Loan Agreement contains affirmative and negative covenants typical of this type of facility, including: (i) restrictions on the Company’s and its domestic subsidiaries’ ability to allow liens on their assets, (ii) restrictions on the incurrence of indebtedness, (iii) restrictions on the Company’s and certain of its subsidiaries’ ability to engage in certain mergers, (iv) the requirement that the Company maintain a Consolidated Interest Coverage Ratio of no less than 3.00:1.00 as of the end of any fiscal quarter and (v) the requirement that the Company maintain a Consolidated Total Leverage Ratio of no more than, depending on the gross proceeds of equity securities issued after the effective date of the acquisition of eOne, 5.65:1.00 or 5.40:1.00 for each of the first, second and third fiscal quarters ended after the funding of the Term Loan Facilities, with periodic step downs to 3.50:1.00 for the fiscal quarter ending December 31, 2023 and thereafter. The notes were drawn down on December 30, 2019, the closing date of the eOne Acquisition. During the first quarter of 2021, the Company made its required quarterly principal amortization payment of $7.5 million on the Five-Year Tranche loans. As of March 28, 2021, the Company was in compliance with the financial covenants contained in the Term Loan Agreement. The Company may redeem its 5.10% notes due in 2044 (the "2044 Notes") at its option, at the greater of the principal amount of the notes or the present value of the remaining scheduled payments, discounted using the effective interest rate on applicable U.S. Treasury bills at the time of repurchase. Current portion of long-term debt at March 28, 2021 o f $148.9 million , as shown on the consolidated balance sheet, represents the current portion of required quarterly principal amortization payments for the Term Loan Facilities and production financing facilities. All of the Company’s other long-term borrowings have contractual maturities that occur subsequent to the first quarter of 2022. The fair values of the Company's long-term debt are considered Level 3 fair values (see Note 11 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. Production Financing In addition to the Company's financial instruments, the Company uses production financing to fund certain of its television and film productions which are arranged on an individual production basis by special purpose production subsidiaries. Production financing facilities are secured by the assets and future revenue of the individual production subsidiaries and are non-recourse to the Company's assets. Production financing facilities typically have maturities of less than two years, while the titles are in production, and are repaid once delivered and all credits, broadcaster pre-sales and international sales have been received. The production financing facilities as of March 28, 2021, March 29, 2020 and December 27, 2020 are as follows: March 28, 2021 March 29, 2020 December 27, 2020 Production financing held by production subsidiaries $ 201.8 $ 175.6 $ 165.5 Other loans (1) 7.9 9.4 5.4 Total $ 209.7 $ 185.0 $ 170.9 Production financing included in the consolidated balance sheet as: Non-current $ 82.9 $ 141.1 $ 62.9 Current 118.9 34.5 102.6 Total $ 201.8 $ 175.6 $ 165.5 (1) Other loans consist of production related demand loans, and are recorded within Short-term Borrowings in the Company's consolidated balance sheets. Interest is charged at bank prime rate plus a margin based on the risk of the respective production. The weighted average interest rate on all production financing as of March 28, 2021 was 2.8%. The Company has Canadian dollar and U.S. dollar production credit facilities with various banks. The carrying amounts are denominated in the following currencies: Canadian Dollars U.S. Dollars Total As of March 28, 2021 $ 52.1 149.7 $ 201.8 The following table represents the movements in production financing and other related loans during the first quarter of 2021: Production Financing Other Loans Total December 27, 2020 $ 165.5 5.4 $ 170.9 Drawdowns 72.4 9.9 82.3 Repayments (37.4) (7.8) (45.2) Foreign exchange differences 1.3 0.4 1.7 Balance at March 28, 2021 $ 201.8 7.9 $ 209.7 |
Investments in Productions and
Investments in Productions and Investments in Acquired Content Rights | 3 Months Ended |
Mar. 28, 2021 | |
Other Industries [Abstract] | |
Investment in Productions and Investments in Acquired Content Rights | Investments in Productions and Investments in Acquired Content RightsInvestments in productions and investments in acquired content rights are predominantly monetized on a title-by-title basis and are recorded within other assets in the Company's consolidated balance sheets, to the extent they are considered recoverable against future revenues. These amounts are being amortized to program cost amortization using a model that reflects the consumption of the asset as it is released through various channels including broadcast licenses, theatrical release and home entertainment. Amounts capitalized are to be reviewed periodically on an individual film basis and any portion of the unamortized amount that appears not to be recoverable from future net revenues is expensed as part of program cost amortization during the period the loss becomes evident. The Company's unamortized investments in productions and investments in acquired content rights consisted of the following at March 28, 2021, March 29, 2020, and December 27, 2020: March 28, 2021 March 29, 2020 December 27, 2020 Film and TV Programming Released, net of amortization $ 481.9 $ 402.5 $ 428.0 Completed and not released 35.0 138.0 17.3 In production 147.4 89.9 185.5 Pre-production 72.8 80.1 67.6 737.1 710.5 698.4 Other Programming Released, net of amortization 14.8 10.1 13.7 Completed and not released 2.8 — 2.1 In production 4.2 2.2 5.4 Pre-production 8.7 — 7.6 30.5 12.3 28.8 Total Program Investments $ 767.6 $ 722.8 $ 727.2 The Company recorded $97.5 million of program cost amortization related to released programming in the three months ended March 28, 2021, consisting of the following: Investment in Production Investment in Content Total Program cost amortization $ 84.5 13.0 $ 97.5 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 28, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company and its subsidiaries file income tax returns in the United States and various state and international jurisdictions. In the normal course of business, the Company is regularly audited by U.S. federal, state and local, and international tax authorities in various tax jurisdictions. Our effective tax rate ("ETR") from continuing operations was 9.3% for the quarter ended March 28, 2021 and 5.7% for the quarter ended March 29, 2020. The following items caused the first quarter ETR to be significantly different from the prior year ETR: • during the quarter ended March 28, 2021, the Company recorded a net discrete tax benefit of $8.9 million primarily associated with the decrease to our liability for uncertain tax positions that resulted from statutes of limitations expiring in certain jurisdictions. The discrete benefit includes a legal settlement gain, with no tax expense, due to the availability of net operating losses and release of the related valuation allowance on the net operating losses utilized by the settlement gain; and • during the quarter ended March 29, 2020, the Company recorded a discrete net tax benefit of $20.1 million, of which $22.2 million is a result of the eOne acquisition and related costs incurred. In May 2019, a public referendum held in Switzerland approved the Swiss Federal Act on Tax Reform and AHV Financing ("TRAF") proposals previously approved by the Swiss Parliament. The Swiss tax reform measures were effective on January 1, 2020. Changes in tax reform include the abolishment of preferential tax regimes for holding companies, domicile companies and mixed companies at the cantonal level. The enacted changes in Swiss federal tax were not material to the Company’s financial statements. Swiss cantonal tax was enacted in December 2019. The Company is still assessing the transitional provision options it may elect; however, the legislation is not expected to have a material effect on the Company’s financial statements. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 3 Months Ended |
Mar. 28, 2021 | |
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 elected the fair value option for certain available-for-sale investments using net asset value per share and during 2020, the Company liquidated these investments as part of its global cash management strategy. At March 29, 2020, prior to their liquidation, these investments totaled $24.8 million and were included in prepaid expenses and other current assets within the Company's consolidated balance sheet. The Company recorded a net loss of $0.4 million on these investments in other (income) expense, net, related to the change in fair value of such instruments net for the quarter ended March 29, 2020. At March 28, 2021, March 29, 2020 and December 27, 2020, 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 Quoted Significant Significant March 28, 2021 Assets: Available-for-sale securities $ 2.2 2.2 — — Derivatives 9.4 — 9.4 — Total assets $ 11.6 2.2 9.4 — Liabilities: Derivatives $ 6.8 — 6.8 — Option agreement 21.8 — — 21.8 Total liabilities $ 28.6 — 6.8 21.8 March 29, 2020 Assets: Available-for-sale securities $ 0.8 0.8 — — Derivatives 46.8 — 46.8 — Total assets $ 47.5 0.8 46.8 — Liabilities: Derivatives $ 13.1 — 13.1 — Option agreement 20.9 — — 20.9 Total liabilities $ 34.0 — 13.1 20.9 December 27, 2020 Assets: Available-for-sale securities $ 2.1 2.1 — — Derivatives 4.8 — 4.8 — Total assets $ 6.9 2.1 4.8 — Liabilities: Derivatives $ 12.7 — 12.7 — Option agreement 20.6 — — 20.6 Total Liabilities $ 33.3 — 12.7 20.6 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. The Company uses current forward rates of the respective foreign currencies to measure the fair value of these contracts. The Company’s option agreement relates to an equity method investment in Discovery Family Channel ("Discovery"). The option agreement is included in other liabilities at March 28, 2021, March 29, 2020 and December 27, 2020, is valued using an option pricing model based on the fair value of the related investment. Inputs used in the option pricing model include the volatility and fair value of the underlying company which are considered unobservable inputs as they reflect the Company's own assumptions about the inputs that market participants would use in pricing the asset or liability. The Company believes that this is the best information available for use in the fair value measurement. There were no changes in these valuation techniques during the quarter ended March 28, 2021. 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): 2021 2020 Balance at beginning of year $ (20.6) $ (22.1) Gain from change in fair value (1.2) 1.2 Balance at end of first quarter $ (21.8) $ (20.9) |
Derivative Financial Instrument
Derivative Financial Instruments | 3 Months Ended |
Mar. 28, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments Hasbro uses foreign currency forward contracts to mitigate the impact of currency rate fluctuations on firmly committed and projected future foreign currency transactions. These over-the-counter contracts, which hedge future currency requirements related to purchases of inventory, product sales, television and film production cost and production financing loans (see Note 8) as well as other cross-border transactions not denominated in the functional currency of the business unit, are primarily denominated in United States and Hong Kong dollars, and Euros. All contracts are entered into with a number of counterparties, all of which are major financial institutions. The Company believes that a default by a single counterparty would not have a material adverse effect on the financial condition of the Company. Hasbro does not enter into derivative financial instruments for speculative purposes. Cash Flow Hedges The Company uses foreign currency forward contracts to mitigate 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, certain production financing loans and other cross-border transactions in 2021 through 2022. At March 28, 2021, March 29, 2020 and December 27, 2020, the notional amounts and fair values of the Company's foreign currency forward contracts designated as cash flow hedging instruments were as follows: March 28, 2021 March 29, 2020 December 27, 2020 Hedged transaction Notional Fair Notional Fair Notional Fair Inventory purchases $ 332.1 0.6 $ 343.3 32.2 $ 31.8 (10.0) Sales 208.5 0.3 101.1 4.8 11.6 1.4 Production financing and other 113.2 0.3 161.3 6.7 89.9 0.3 Total $ 653.8 1.2 $ 605.7 43.7 $ 133.3 (8.3) The Company has a master agreement with each of its counterparties that allows for the netting of outstanding forward contracts. The fair values of the Company's foreign currency forward contracts designated as cash flow hedges are recorded in the consolidated balance sheets at March 28, 2021, March 29, 2020 and December 27, 2020 as follows: March 28, March 29, December 27, Prepaid expenses and other current assets Unrealized gains $ 8.4 $ 40.4 $ 2.3 Unrealized losses (4.4) (1.9) (1.6) Net unrealized gains $ 4.0 $ 38.5 $ 0.7 Other assets Unrealized gains $ 1.8 $ 7.1 $ 1.1 Unrealized losses (0.2) — — Net unrealized gains $ 1.6 $ 7.1 $ 1.1 Accrued liabilities Unrealized gains $ 1.7 $ — $ 3.0 Unrealized losses (5.9) (2.0) (12.9) Net unrealized losses $ (4.2) $ (2.0) $ (9.9) Other liabilities Unrealized gains $ — $ — $ — Unrealized losses (0.2) — (0.2) Net unrealized losses $ (0.2) $ — $ (0.2) Net gains on cash flow hedging activities have been reclassified from other comprehensive earnings (loss) to net earnings for the quarters ended March 28, 2021 and March 29, 2020 as follows: Quarter Ended March 28, March 29, Statements of Operations Classification Cost of sales $ — $ 4.0 Net revenues 0.5 0.3 Other 0.9 0.1 Net realized gains $ 1.4 $ 4.4 Undesignated Hedges The Company also enters into foreign currency forward contracts to minimize the impact of changes in the fair value of intercompany loans due to foreign currency changes. The Company does not use hedge accounting for these contracts as changes in the fair values of these contracts are substantially offset by changes in the fair value of the intercompany loans. Additionally, to manage transactional exposure to fair value movements on certain monetary assets and liabilities denominated in foreign currencies, the Company has implemented a balance sheet hedging program. The Company does not use hedge accounting for these contracts as changes in the fair values of these contracts are offset by changes in the fair value of the balance sheet items. As of March 28, 2021, March 29, 2020 and December 27, 2020 the total notional amounts of the Company's undesignated derivative instruments were $653.4 million, $238.2 million and $590.6 million, respectively. At March 28, 2021, March 29, 2020 and December 27, 2020, the fair values of the Company's undesignated derivative financial instruments were recorded in the consolidated balance sheets as follows: March 28, March 29, December 27, Prepaid expenses and other current assets Unrealized gains $ 5.0 $ 1.2 $ 3.5 Unrealized losses (1.2) — (0.5) Net unrealized gains $ 3.8 $ 1.2 $ 3.0 Accrued liabilities Unrealized gains $ 0.1 $ 1.2 $ — Unrealized losses (2.5) (12.4) (2.6) Net unrealized losses $ (2.4) $ (11.2) $ (2.6) Total unrealized gains (losses), net $ 1.4 $ (10.0) $ 0.4 The Company recorded net (losses) gains of $(6.1) million and $2.5 million on these instruments to other (income) expense, net for the quarters ended March 28, 2021 and March 29, 2020, respectively, relating to the change in fair value of such derivatives, substantially offsetting gains and losses from the change in fair value of intercompany loans to which the contracts relate. For additional information related to the Company's derivative financial instruments see Notes 6 and 11. |
Leases
Leases | 3 Months Ended |
Mar. 28, 2021 | |
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 options to extend lease terms or options to terminate current lease terms at certain times, subject to notice requirements set out in the lease agreement. Payments under certain of the lease agreements may be subject to adjustment based on a consumer price index or other inflationary indices. The lease liability for such lease agreements as of the adoption date, was based on fixed payments as of the adoption date. Any adjustments to these payments based on the related indices will be recorded to expense as incurred. Leases with an expected term of 12 months or less are not capitalized. Lease expense under such leases is recorded straight line over the life of the lease. The Company capitalizes non-lease components for equipment leases, but expenses non-lease components as incurred for real estate leases. For the quarters ended March 28, 2021 and March 29, 2020, the Company's operating lease and other rental expenses were $21.8 million and $22.9 million, respectively. Expense related to short-term leases (expected terms less than 12 months) and variable lease payments was not material in the quarters ended March 28, 2021 or March 29, 2020. Information related to the Company’s leases for the quarters ended March 28, 2021 and March 29, 2020 are as follows: Quarter Ended March 28, March 29, Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 13.2 $ 11.6 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 7.3 $ 64.2 Weighted Average Remaining Lease Term Operating leases 5.9 years 6.0 years Weighted Average Discount Rate Operating leases 3.1 % 4.2 % The following is a reconciliation of future undiscounted cash flows to the operating liabilities, and the related right of use assets, included in our Consolidated Balance Sheets as of March 28, 2021: March 28, 2021 (excluding the three months ended March 28, 2021) $ 38.9 2022 47.8 2023 39.8 2024 27.9 2025 22.8 2026 and thereafter 48.3 Total future lease payments 225.5 Less imputed interest 22.5 Present value of future operating lease payments 203.0 Less current portion of operating lease liabilities (1) 45.9 Non-current operating lease liability (2) 157.1 Operating lease right-of-use assets, net (3) $ 186.4 (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 | 3 Months Ended |
Mar. 28, 2021 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting Hasbro is a global play and entertainment company with a broad portfolio of brands and entertainment content spanning toys, games, licensed products ranging from traditional to digital, and film, television and music entertainment. In the first quarter of 2020 the Company completed its acquisition of the global independent studio, eOne. Throughout 2020, the Company successfully integrated many parts of the eOne business and started to achieve synergies as a combined company. Effective for the three months ended March 28, 2021, the Company realigned its reportable segment structure to achieve the following; (1) to align with changes to its business structure subsequent to the integration of eOne, and (2) to reflect changes to its reporting structure and provide transparency into how operating performance is measured. The Company's three principle reportable segments are (i) Consumer Products, (ii) Wizards of the Coast & Digital Gaming, and (iii) Entertainment. The Consumer Products segment engages in the sourcing, marketing and sales of toy and game products around the world. The Consumer Products business also promotes the Company's brands through the out-licensing of our trademarks, characters and other brand and intellectual property rights to third parties, through the sale of branded consumer products such as toys and apparel. The Wizards of the Coast & Digital Gaming business engages in the promotion of the Company's brands through the development of trading card, role-playing and digital game experiences based on Hasbro and Wizards of the Coast games. The Entertainment segment engages in the development, acquisition, production, financing, distribution and sale of world-class entertainment content including film, scripted and unscripted television, family programming, digital content, music production and sales, and live entertainment. The significant accounting policies of the Company's segments are the same as those referenced in Note 1. Results shown for the quarter ended March 28, 2021 are not necessarily representative of those which may be expected for the full year 2021, nor were those of the comparable 2020 periods representative of those actually experienced for the full year 2020. Similarly, such results are not necessarily those which would be achieved were each segment an unaffiliated business enterprise. Reclassifications of certain prior year segment results and account balances have been made to conform to the current-year presentation. None of the segment changes impact the Company's previously reported consolidated net revenue, operating profits, net earnings or net earnings per share. Information by segment and a reconciliation to reported amounts for the quarters ended March 28, 2021 and March 29, 2020 are as follows: Quarter Ended March 28, 2021 March 29, 2020 Net revenues External Affiliate (b) External Affiliate (b) Consumer Products $ 653.9 $ 70.3 $ 572.5 $ 55.6 Wizards of the Coast & Digital Gaming 242.2 25.4 210.6 15.1 Entertainment 218.7 14.1 322.5 0.9 Corporate and Other (a) — (109.8) — (71.6) $ 1,114.8 $ — $ 1,105.6 $ — Quarter Ended Operating profit (loss) March 28, March 29, Consumer Products $ 32.3 $ (9.7) Wizards of the Coast & Digital Gaming 110.0 95.8 Entertainment 17.0 (64.3) Corporate and Other (a) (12.0) (45.1) $ 147.3 $ (23.3) Total assets March 28, March 29, December 27, Consumer Products $ 5,567.7 $ 5,098.5 $ 5,552.5 Wizards of the Coast & Digital Gaming 616.9 706.0 585.7 Entertainment 6,106.8 6,232.8 6,003.0 Corporate and Other (a) (2,102.3) (1,612.9) (1,322.9) $ 10,189.1 $ 10,424.4 $ 10,818.3 (a) Certain long-term assets, including property, plant and equipment, goodwill and other intangibles, which benefit multiple operating segments, are included in both Entertainment and Corporate and Other. Allocations of certain expenses related to these assets are made to the individual operating segments at the beginning of the year based on budgeted amounts. Any differences between actual and budgeted amounts are reflected in Corporate and Other because allocations are translated from the U.S. Dollar to local currency at budgeted rates when recorded. Corporate and Other also includes the elimination of inter-company balance sheet amounts. (b) Amounts represent revenues from transactions with other operating segments that are included in the operating profit (loss) of the segment. The following table represents consolidated Consumer Products segment net revenues by major geographic region for the quarters ended March 28, 2021 and March 29, 2020: Quarter Ended March 28, March 29, North America $ 362.7 $ 321.8 Europe 188.5 156.7 Asia Pacific 64.8 58.2 Latin America 37.9 35.8 Net revenues $ 653.9 $ 572.5 The following table represents consolidated Entertainment segment net revenues by category for the quarters ended March 28, 2021 and March 29, 2020: Quarter Ended March 28, March 29, Film and TV $ 166.4 $ 264.0 Family Brands 18.8 25.9 Music and Other 33.5 32.6 Net revenues $ 218.7 $ 322.5 The following table presents consolidated net revenues by brand and entertainment portfolio for the quarters ended March 28, 2021 and March 29, 2020: Quarter Ended March 28, March 29, Franchise Brands $ 491.5 $ 396.5 Partner Brands 188.0 182.3 Hasbro Gaming (1) 136.3 140.1 Emerging Brands 104.7 94.2 Entertainment 194.3 292.5 Total $ 1,114.8 $ 1,105.6 (1) 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 which are reported within Franchise Brands, totaled $365.3 million and $340.5 million for the quarters ended March 28, 2021 and March 29, 2020, respectively. |
Restructuring Actions
Restructuring Actions | 3 Months Ended |
Mar. 28, 2021 | |
Restructuring Charges [Abstract] | |
Restructuring Actions | Restructuring Actions During 2018, the Company announced a comprehensive restructuring plan which consisted 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 part of this process the Company took certain restructuring actions which continued 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 second quarter of 2020, the Company continued to streamline its commercial organization, and recorded severance of $6.9 million associated with these cost-savings initiatives. During 2020, in connection with the eOne Acquisition, the Company recorded $32.5 million of severance and other employee charges related to the integration of eOne. For the first quarter of 2020, the related charge was $13.2 million, which was recorded within acquisition and related costs on the Consolidated Statements of Operations for the quarter ended March 29, 2020, and reported within Corporate and Eliminations. The detail of activity related to the programs for the quarter ended March 28, 2021 is as follows: 2018 Restructuring & 2020 Commercial Program eOne Integration Program Other Total Remaining amounts to be paid as of December 27, 2020 $ 18.3 16.9 0.8 $ 36.0 Payments made in the first quarter of 2021 (2.6) (4.3) — (6.9) Remaining amounts as of March 28, 2021 $ 15.7 12.6 0.8 $ 29.1 |
Subsequent Event
Subsequent Event | 3 Months Ended |
Mar. 28, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent EventOn April 25, 2021, the Company entered into a definitive agreement to sell the eOne music business for an aggregate sales prices of $385 million. Based on the value allocated to the music assets at the time of the eOne Acquisition, the Company expects to record an estimated pre-tax non-cash impairment loss of $125 million to $135 million, inclusive of transaction expenses. The loss will be determined and recorded in the second quarter of 2021. The transaction is expected to close late in the second quarter or early in the third quarter of 2021, subject to receipt of regulatory approvals and satisfaction of customary closing conditions. The Company intends to use the net proceeds from the sale to accelerate deleveraging and other general corporate purposes. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 3 Months Ended |
Mar. 28, 2021 | |
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 March 28, 2021 and March 29, 2020, 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. |
Recently Adopted Accounting Standards and Issued Accounting Pronouncements | Recently Adopted Accounting Standards In August 2018, the FASB issued Accounting Standards Update No. 2018-14 (ASU 2018-14) Compensation – Retirement Benefits – Defined Benefit Plans – General (Subtopic 715-20)- Disclosure Framework – Changes to the Disclosure Requirements for Defined Benefit Plans . The amendments in this update modify the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. For public companies, this standard is effective for annual reporting periods beginning after December 15, 2020, and early adoption is permitted. The Company adopted the standard in the first quarter of 2021 and the adoption of the standard did not have a material impact on its consolidated financial statements. In December 2019, the FASB issued Accounting Standards Update No. 2019-12 (ASU 2019-12), Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes . The amendments in this update remove certain exceptions for performing intraperiod tax allocations, recognizing deferred taxes for investments, and calculating income taxes in interim periods. The guidance also simplifies the accounting for franchise taxes, transactions that result in a step-up in the tax basis of goodwill, and the effect of enacted changes in tax laws or rates in interim periods. ASU 2019-12 is effective for fiscal years beginning after December 15, 2020 and early adoption is permitted. The Company adopted the standard in the first quarter of 2021 and the adoption of the standard did not have a material impact on its consolidated financial statements. Issued Accounting Pronouncements In March of 2020, the FASB issued Accounting Standards Update No. 2020-04 (ASU 2020-04) Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. The amendments in this update provide optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships, and other transactions, for a limited period of time, to ease the potential burden of recognizing the effects of reference rate reform on financial reporting. The amendments in this update apply to contracts, hedging relationships and other transactions that reference the London Inter-Bank Offered Rate ("LIBOR") or another reference rate expected to be discontinued due to the global transition away from LIBOR and certain other interbank offered rates. An entity may elect to apply the amendments provided by this update beginning March 12, 2020 through December 31, 2022. The Company does not currently expect the change from LIBOR to an alternate rate to have a material impact on its consolidated financial statements, and is continuing to evaluate the standard's potential impact to its consolidated financial statements. |
Revenue Recognition | Revenue Recognition Revenue is recognized when control of the promised goods or content 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 or content. 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 Consumer Products and Entertainment segments 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 and records the aggregate deferred revenues as contract liabilities. The current portion of contract liabilities were recorded within Accrued Liabilities and the long-term portion were recorded as Other Non-current Liabilities in the Company’s consolidated balance sheets. The Company records contract assets in the case of (1) minimum guarantees, which are recognized ratably over the term of the respective license period, being recognized in advance of contractual invoicing, and (2) film and television distribution revenue recorded for content delivered but for which payment will occur over the license term. The current portion of contract assets were recorded in Prepaid Expenses and Other Current Assets, respectively, and the long-term portion were recorded as Other Long-Term Assets. |
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 options to extend lease terms or options to terminate current lease terms at certain times, subject to notice requirements set out in the lease agreement. Payments under certain of the lease agreements may be subject to adjustment based on a consumer price index or other inflationary indices. The lease liability for such lease agreements as of the adoption date, was based on fixed payments as of the adoption date. Any adjustments to these payments based on the related indices will be recorded to expense as incurred. Leases with an expected term of 12 months or less are not capitalized. Lease expense under such leases is recorded straight line over the life of the lease. The Company capitalizes non-lease components for equipment leases, but expenses non-lease components as incurred for real estate leases. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 3 Months Ended |
Mar. 28, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Contract Assets and Liabilities | At March 28, 2021, March 29, 2020 and December 27, 2020 the Company had the following contract assets and liabilities in its consolidated balance sheets: March 28, 2021 March 29, 2020 December 27, 2020 Assets Contract assets - current $ 257.9 $ 271.0 $ 284.4 Contract assets - long term 70.0 87.5 77.0 Total $ 327.9 $ 358.5 $ 361.4 Liabilities Contract liabilities - current $ 146.9 $ 185.6 $ 161.0 Contract liabilities - long term 16.6 20.6 18.2 Total $ 163.5 $ 206.2 $ 179.2 |
Business Combination (Tables)
Business Combination (Tables) | 3 Months Ended |
Mar. 28, 2021 | |
Business Combinations [Abstract] | |
Schedule of Acquired Finite-Lived Intangible Assets | The following table summarizes the intangible assets acquired as part of the eOne Acquisition: Weighted Average Intangible assets acquired Amortization Period Fair Value Established brands 10 years $ 615.0 Trade names 15 years 100.0 Artist relationships 14 years 100.0 Music catalogs 12 years 120.0 Other 8 years 121.0 Total intangible assets acquired 11 years $ 1,056.0 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 28, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share | Net earnings per share data for the quarters ended March 28, 2021 and March 29, 2020 were computed as follows: 2021 2020 Quarter Basic Diluted Basic Diluted Net earnings (loss) attributable to Hasbro, Inc. $ 116.2 116.2 $ (69.7) (69.7) Average shares outstanding 137.7 137.7 137.1 137.1 Effect of dilutive securities: Options and other share-based awards — 0.4 — — Equivalent Shares 137.7 138.1 137.1 137.1 Net earnings (loss) attributable to Hasbro, Inc. per common share $ 0.84 0.84 $ (0.51) (0.51) |
Goodwill (Tables)
Goodwill (Tables) | 3 Months Ended |
Mar. 28, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | Consumer Products Wizards of the Coast & Digital Gaming Entertainment Total 2021 Balance at December 27, 2020 $ 1,385.7 53.1 2,252.9 $ 3,691.7 Goodwill allocation 199.4 254.2 (453.6) — Foreign exchange translation (0.1) 0.2 (0.4) (0.3) Balance at March 28, 2021 $ 1,585.0 307.5 1,798.9 $ 3,691.4 |
Other Comprehensive Earnings _2
Other Comprehensive Earnings (Loss) (Tables) | 3 Months Ended |
Mar. 28, 2021 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | |
Schedule of Other Comprehensive Income (Loss), Tax Effect | The following table presents the related tax effects on changes in other comprehensive earnings (loss) for the quarters ended March 28, 2021 and March 29, 2020. Quarter Ended March 28, March 29, Other comprehensive earnings (loss), tax effect: Tax benefit on unrealized holding gains $ — $ 0.1 Tax expense on cash flow hedging activities (1.0) (7.2) Reclassifications to earnings, tax effect: Tax expense on cash flow hedging activities 0.2 0.3 Amortization of unrecognized pension and postretirement amounts (0.1) (0.1) Total tax effect on other comprehensive earnings (loss) $ (0.9) $ (6.9) |
Schedule of Accumulated Other Comprehensive Earnings (Loss) | Changes in the components of accumulated other comprehensive earnings (loss) for the three months ended March 28, 2021 and March 29, 2020 are as follows: Pension and Gains Unrealized Foreign Total 2021 Balance at December 27, 2020 $ (40.7) (22.1) 0.4 (132.6) (195.0) Current period other comprehensive earnings (loss) 0.2 4.5 — (16.1) (11.4) Balance at March 28, 2021 $ (40.5) (17.6) 0.4 (148.7) (206.4) 2020 Balance at December 29, 2019 $ (36.2) (5.2) (0.2) (142.6) (184.2) Current period other comprehensive earnings (loss) 0.3 21.3 (0.4) (131.8) (110.6) Balance at March 29, 2020 $ (35.9) 16.1 (0.6) (274.4) (294.8) |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 3 Months Ended |
Mar. 28, 2021 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Liabilities | Components of accrued liabilities for the periods ended March 28, 2021, March 29, 2020 and December 27, 2020 were as follows: March 28, 2021 March 29, 2020 December 27, 2020 Participations and residuals $ 289.8 $ 375.4 $ 295.6 Royalties 126.7 120.8 229.2 Deferred revenue 146.9 185.6 161.0 Payroll and management incentives 36.2 36.5 132.4 Dividends 93.5 93.2 93.4 Other taxes 67.5 49.6 81.9 Advertising 69.7 44.1 58.6 Severance 44.0 43.9 49.7 Other 409.3 407.1 436.8 Total accrued liabilities $ 1,283.6 $ 1,356.2 $ 1,538.6 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 3 Months Ended |
Mar. 28, 2021 | |
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 March 28, 2021, March 29, 2020 and December 27, 2020 are as follows: March 28, 2021 March 29, 2020 December 27, 2020 Carrying Fair Carrying Fair Carrying Fair 3.90% Notes Due 2029 $ 900.0 961.9 $ 900.0 774.5 $ 900.0 1,011.2 3.55% Notes Due 2026 675.0 731.2 675.0 641.6 675.0 752.7 3.00% Notes Due 2024 500.0 533.9 500.0 480.6 500.0 540.6 6.35% Notes Due 2040 500.0 639.6 500.0 498.2 500.0 636.5 3.50% Notes Due 2027 500.0 535.8 500.0 465.4 500.0 544.5 2.60% Notes Due 2022 300.0 309.6 300.0 295.3 300.0 311.5 5.10% Notes Due 2044 300.0 333.8 300.0 251.7 300.0 338.1 3.15% Notes Due 2021 (1) — — 300.0 299.9 300.0 302.3 6.60% Debentures Due 2028 109.9 134.4 109.9 122.6 109.9 137.4 Variable % Notes Due December 30, 2022 300.0 300.0 400.0 400.0 300.0 300.0 Variable % Notes Due December 30, 2024 570.0 570.0 600.0 600.0 577.5 577.5 Production Financing Facilities 201.8 201.8 175.6 175.6 165.5 165.5 Total long-term debt $ 4,856.7 5,252.0 $ 5,260.5 5,005.4 $ 5,127.9 5,617.8 Less: Deferred debt expenses 33.7 — 39.7 — 35.3 — Less: Current portion 148.9 — 64.5 — 432.6 — Long-term debt $ 4,674.1 5,252.0 $ 5,156.3 5,005.4 $ 4,660.0 5,617.8 (1) During the first quarter of 2021 the Company repaid in full its 3.15% Notes, in the aggregate amount of $300.0 million due in May 2021. |
Production Financing Loans | The production financing facilities as of March 28, 2021, March 29, 2020 and December 27, 2020 are as follows: March 28, 2021 March 29, 2020 December 27, 2020 Production financing held by production subsidiaries $ 201.8 $ 175.6 $ 165.5 Other loans (1) 7.9 9.4 5.4 Total $ 209.7 $ 185.0 $ 170.9 Production financing included in the consolidated balance sheet as: Non-current $ 82.9 $ 141.1 $ 62.9 Current 118.9 34.5 102.6 Total $ 201.8 $ 175.6 $ 165.5 (1) Other loans consist of production related demand loans, and are recorded within Short-term Borrowings in the Company's consolidated balance sheets. |
Carrying Amount of Currencies for Production Credit Facilities | The carrying amounts are denominated in the following currencies: Canadian Dollars U.S. Dollars Total As of March 28, 2021 $ 52.1 149.7 $ 201.8 |
Schedule of Production and Financing Loan and Other Loans | The following table represents the movements in production financing and other related loans during the first quarter of 2021: Production Financing Other Loans Total December 27, 2020 $ 165.5 5.4 $ 170.9 Drawdowns 72.4 9.9 82.3 Repayments (37.4) (7.8) (45.2) Foreign exchange differences 1.3 0.4 1.7 Balance at March 28, 2021 $ 201.8 7.9 $ 209.7 |
Investments in Productions an_2
Investments in Productions and Investments in Acquired Content Rights (Tables) | 3 Months Ended |
Mar. 28, 2021 | |
Other Industries [Abstract] | |
Schedule of Program Production Costs | The Company's unamortized investments in productions and investments in acquired content rights consisted of the following at March 28, 2021, March 29, 2020, and December 27, 2020: March 28, 2021 March 29, 2020 December 27, 2020 Film and TV Programming Released, net of amortization $ 481.9 $ 402.5 $ 428.0 Completed and not released 35.0 138.0 17.3 In production 147.4 89.9 185.5 Pre-production 72.8 80.1 67.6 737.1 710.5 698.4 Other Programming Released, net of amortization 14.8 10.1 13.7 Completed and not released 2.8 — 2.1 In production 4.2 2.2 5.4 Pre-production 8.7 — 7.6 30.5 12.3 28.8 Total Program Investments $ 767.6 $ 722.8 $ 727.2 |
Program Cost Amortization | The Company recorded $97.5 million of program cost amortization related to released programming in the three months ended March 28, 2021, consisting of the following: Investment in Production Investment in Content Total Program cost amortization $ 84.5 13.0 $ 97.5 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 3 Months Ended |
Mar. 28, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Hierarchy | At March 28, 2021, March 29, 2020 and December 27, 2020, 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 Quoted Significant Significant March 28, 2021 Assets: Available-for-sale securities $ 2.2 2.2 — — Derivatives 9.4 — 9.4 — Total assets $ 11.6 2.2 9.4 — Liabilities: Derivatives $ 6.8 — 6.8 — Option agreement 21.8 — — 21.8 Total liabilities $ 28.6 — 6.8 21.8 March 29, 2020 Assets: Available-for-sale securities $ 0.8 0.8 — — Derivatives 46.8 — 46.8 — Total assets $ 47.5 0.8 46.8 — Liabilities: Derivatives $ 13.1 — 13.1 — Option agreement 20.9 — — 20.9 Total liabilities $ 34.0 — 13.1 20.9 December 27, 2020 Assets: Available-for-sale securities $ 2.1 2.1 — — Derivatives 4.8 — 4.8 — Total assets $ 6.9 2.1 4.8 — Liabilities: Derivatives $ 12.7 — 12.7 — Option agreement 20.6 — — 20.6 Total Liabilities $ 33.3 — 12.7 20.6 |
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): 2021 2020 Balance at beginning of year $ (20.6) $ (22.1) Gain from change in fair value (1.2) 1.2 Balance at end of first quarter $ (21.8) $ (20.9) |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 3 Months Ended |
Mar. 28, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Summary of Cash Flow Hedging Instruments | At March 28, 2021, March 29, 2020 and December 27, 2020, the notional amounts and fair values of the Company's foreign currency forward contracts designated as cash flow hedging instruments were as follows: March 28, 2021 March 29, 2020 December 27, 2020 Hedged transaction Notional Fair Notional Fair Notional Fair Inventory purchases $ 332.1 0.6 $ 343.3 32.2 $ 31.8 (10.0) Sales 208.5 0.3 101.1 4.8 11.6 1.4 Production financing and other 113.2 0.3 161.3 6.7 89.9 0.3 Total $ 653.8 1.2 $ 605.7 43.7 $ 133.3 (8.3) |
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 March 28, 2021, March 29, 2020 and December 27, 2020 as follows: March 28, March 29, December 27, Prepaid expenses and other current assets Unrealized gains $ 8.4 $ 40.4 $ 2.3 Unrealized losses (4.4) (1.9) (1.6) Net unrealized gains $ 4.0 $ 38.5 $ 0.7 Other assets Unrealized gains $ 1.8 $ 7.1 $ 1.1 Unrealized losses (0.2) — — Net unrealized gains $ 1.6 $ 7.1 $ 1.1 Accrued liabilities Unrealized gains $ 1.7 $ — $ 3.0 Unrealized losses (5.9) (2.0) (12.9) Net unrealized losses $ (4.2) $ (2.0) $ (9.9) Other liabilities Unrealized gains $ — $ — $ — Unrealized losses (0.2) — (0.2) Net unrealized losses $ (0.2) $ — $ (0.2) |
Schedule of Net Gains (Losses) on Cash Flow Hedges Activities | Net gains on cash flow hedging activities have been reclassified from other comprehensive earnings (loss) to net earnings for the quarters ended March 28, 2021 and March 29, 2020 as follows: Quarter Ended March 28, March 29, Statements of Operations Classification Cost of sales $ — $ 4.0 Net revenues 0.5 0.3 Other 0.9 0.1 Net realized gains $ 1.4 $ 4.4 |
Fair Values of Undesignated Derivative Financial Instruments | At March 28, 2021, March 29, 2020 and December 27, 2020, the fair values of the Company's undesignated derivative financial instruments were recorded in the consolidated balance sheets as follows: March 28, March 29, December 27, Prepaid expenses and other current assets Unrealized gains $ 5.0 $ 1.2 $ 3.5 Unrealized losses (1.2) — (0.5) Net unrealized gains $ 3.8 $ 1.2 $ 3.0 Accrued liabilities Unrealized gains $ 0.1 $ 1.2 $ — Unrealized losses (2.5) (12.4) (2.6) Net unrealized losses $ (2.4) $ (11.2) $ (2.6) Total unrealized gains (losses), net $ 1.4 $ (10.0) $ 0.4 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 28, 2021 | |
Leases [Abstract] | |
Schedule of Information Related to Leases | Information related to the Company’s leases for the quarters ended March 28, 2021 and March 29, 2020 are as follows: Quarter Ended March 28, March 29, Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 13.2 $ 11.6 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 7.3 $ 64.2 Weighted Average Remaining Lease Term Operating leases 5.9 years 6.0 years Weighted Average Discount Rate Operating leases 3.1 % 4.2 % |
Reconciliation of Future Undiscounted Cash Flows | The following is a reconciliation of future undiscounted cash flows to the operating liabilities, and the related right of use assets, included in our Consolidated Balance Sheets as of March 28, 2021: March 28, 2021 (excluding the three months ended March 28, 2021) $ 38.9 2022 47.8 2023 39.8 2024 27.9 2025 22.8 2026 and thereafter 48.3 Total future lease payments 225.5 Less imputed interest 22.5 Present value of future operating lease payments 203.0 Less current portion of operating lease liabilities (1) 45.9 Non-current operating lease liability (2) 157.1 Operating lease right-of-use assets, net (3) $ 186.4 (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) | 3 Months Ended |
Mar. 28, 2021 | |
Segment Reporting [Abstract] | |
Information by Segment and Reconciliation to Reported Amounts | Information by segment and a reconciliation to reported amounts for the quarters ended March 28, 2021 and March 29, 2020 are as follows: Quarter Ended March 28, 2021 March 29, 2020 Net revenues External Affiliate (b) External Affiliate (b) Consumer Products $ 653.9 $ 70.3 $ 572.5 $ 55.6 Wizards of the Coast & Digital Gaming 242.2 25.4 210.6 15.1 Entertainment 218.7 14.1 322.5 0.9 Corporate and Other (a) — (109.8) — (71.6) $ 1,114.8 $ — $ 1,105.6 $ — |
Operating Profit (Loss) by Segment | Quarter Ended Operating profit (loss) March 28, March 29, Consumer Products $ 32.3 $ (9.7) Wizards of the Coast & Digital Gaming 110.0 95.8 Entertainment 17.0 (64.3) Corporate and Other (a) (12.0) (45.1) $ 147.3 $ (23.3) |
Total Assets by Segment | Total assets March 28, March 29, December 27, Consumer Products $ 5,567.7 $ 5,098.5 $ 5,552.5 Wizards of the Coast & Digital Gaming 616.9 706.0 585.7 Entertainment 6,106.8 6,232.8 6,003.0 Corporate and Other (a) (2,102.3) (1,612.9) (1,322.9) $ 10,189.1 $ 10,424.4 $ 10,818.3 (a) Certain long-term assets, including property, plant and equipment, goodwill and other intangibles, which benefit multiple operating segments, are included in both Entertainment and Corporate and Other. Allocations of certain expenses related to these assets are made to the individual operating segments at the beginning of the year based on budgeted amounts. Any differences between actual and budgeted amounts are reflected in Corporate and Other because allocations are translated from the U.S. Dollar to local currency at budgeted rates when recorded. Corporate and Other also includes the elimination of inter-company balance sheet amounts. (b) Amounts represent revenues from transactions with other operating segments that are included in the operating profit (loss) of the segment. |
Schedule of Net Revenues by Major Geographic Region | The following table represents consolidated Consumer Products segment net revenues by major geographic region for the quarters ended March 28, 2021 and March 29, 2020: Quarter Ended March 28, March 29, North America $ 362.7 $ 321.8 Europe 188.5 156.7 Asia Pacific 64.8 58.2 Latin America 37.9 35.8 Net revenues $ 653.9 $ 572.5 |
Schedules of Net Revenues by Category | The following table represents consolidated Entertainment segment net revenues by category for the quarters ended March 28, 2021 and March 29, 2020: Quarter Ended March 28, March 29, Film and TV $ 166.4 $ 264.0 Family Brands 18.8 25.9 Music and Other 33.5 32.6 Net revenues $ 218.7 $ 322.5 The following table presents consolidated net revenues by brand and entertainment portfolio for the quarters ended March 28, 2021 and March 29, 2020: Quarter Ended March 28, March 29, Franchise Brands $ 491.5 $ 396.5 Partner Brands 188.0 182.3 Hasbro Gaming (1) 136.3 140.1 Emerging Brands 104.7 94.2 Entertainment 194.3 292.5 Total $ 1,114.8 $ 1,105.6 (1) 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 which are reported within Franchise Brands, totaled $365.3 million and $340.5 million for the quarters ended March 28, 2021 and March 29, 2020, respectively. |
Restructuring Actions (Tables)
Restructuring Actions (Tables) | 3 Months Ended |
Mar. 28, 2021 | |
Restructuring Charges [Abstract] | |
Schedule of Restructuring and Related Costs | The detail of activity related to the programs for the quarter ended March 28, 2021 is as follows: 2018 Restructuring & 2020 Commercial Program eOne Integration Program Other Total Remaining amounts to be paid as of December 27, 2020 $ 18.3 16.9 0.8 $ 36.0 Payments made in the first quarter of 2021 (2.6) (4.3) — (6.9) Remaining amounts as of March 28, 2021 $ 15.7 12.6 0.8 $ 29.1 |
Basis of Presentation (Details)
Basis of Presentation (Details) $ in Millions | 3 Months Ended |
Mar. 28, 2021USD ($) | |
Accounting Policies [Abstract] | |
Gain from litigation settlement | $ 25.6 |
Revenue Recognition - Contract
Revenue Recognition - Contract Assets and Liabilities (Details) - USD ($) $ in Millions | Mar. 28, 2021 | Dec. 27, 2020 | Mar. 29, 2020 |
Revenue from Contract with Customer [Abstract] | |||
Contract assets - current | $ 257.9 | $ 284.4 | $ 271 |
Contract assets - long term | 70 | 77 | 87.5 |
Total | 327.9 | 361.4 | 358.5 |
Contract liabilities - current | 146.9 | 161 | 185.6 |
Contract liabilities - long term | 16.6 | 18.2 | 20.6 |
Total | $ 163.5 | $ 179.2 | $ 206.2 |
Revenue Recognition - Narrative
Revenue Recognition - Narrative (Details) $ in Millions | 3 Months Ended |
Mar. 28, 2021USD ($)brand_category | |
Disaggregation of Revenue [Line Items] | |
Revenue, remaining performance obligation, amount | $ 329.7 |
Number of brand categories | brand_category | 5 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-03-29 | |
Disaggregation of Revenue [Line Items] | |
Revenue, remaining performance obligation, amount | $ 219.9 |
Revenue, remaining performance obligation, period | 9 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-12-27 | |
Disaggregation of Revenue [Line Items] | |
Revenue, remaining performance obligation, amount | $ 89.1 |
Revenue, remaining performance obligation, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-12-26 | |
Disaggregation of Revenue [Line Items] | |
Revenue, remaining performance obligation, amount | $ 15.8 |
Revenue, remaining performance obligation, period | 1 year |
eOne | |
Disaggregation of Revenue [Line Items] | |
Contract assets recognized | $ 78.6 |
Revenue recognized | $ 53.3 |
Business Combination - Narrativ
Business Combination - Narrative (Details) - USD ($) $ / shares in Units, shares in Millions | Dec. 30, 2019 | Nov. 30, 2019 | Mar. 28, 2021 | Jun. 28, 2020 | Mar. 29, 2020 | Dec. 27, 2020 |
Business Acquisition [Line Items] | ||||||
Goodwill | $ 3,691,400,000 | $ 3,572,700,000 | $ 3,691,700,000 | |||
Acquisition and related costs | 0 | 149,800,000 | ||||
Severance expense | $ 6,900,000 | |||||
Asset impairments | 0 | 40,900,000 | ||||
Entertainment | ||||||
Business Acquisition [Line Items] | ||||||
Goodwill | 1,798,900,000 | 2,252,900,000 | ||||
Senior Notes | Senior Unsecured Notes | ||||||
Business Acquisition [Line Items] | ||||||
Aggregate principal amount | $ 2,400,000,000 | |||||
eOne | ||||||
Business Acquisition [Line Items] | ||||||
Aggregate purchase price | $ 4,600,000,000 | |||||
Cash consideration for shares outstanding | 3,800,000,000 | |||||
Aggregate purchase price, extinguishment of debt | 800,000,000 | |||||
Shares issued as consideration (in shares) | 10.6 | |||||
Shares issued for acquisition, value | $ 975,200,000 | |||||
Amortization expense of intangibles | 24,900,000 | 25,000,000 | ||||
Goodwill | 3,200,000,000 | |||||
Integration related costs | 95,700,000 | |||||
Integration related costs, acceleration of stock-based compensation | 47,400,000 | |||||
Integration related costs, advisor fees | 38,200,000 | |||||
Restructuring and related cost | 54,100,000 | |||||
Severance expense | 13,200,000 | 13,200,000 | $ 32,500,000 | |||
Asset impairments | $ 40,900,000 | |||||
eOne | Entertainment | ||||||
Business Acquisition [Line Items] | ||||||
Acquisition and related costs | $ 98,500,000 | |||||
eOne | Films and Television Programs | ||||||
Business Acquisition [Line Items] | ||||||
Investments in productions and content | $ 564,800,000 | |||||
eOne | Titles | ||||||
Business Acquisition [Line Items] | ||||||
Threshold years for amortization method | 3 years | |||||
eOne | Minimum | Trademarks and Trade Names | ||||||
Business Acquisition [Line Items] | ||||||
Intangible asset useful life | 7 years | |||||
eOne | Maximum | Trademarks and Trade Names | ||||||
Business Acquisition [Line Items] | ||||||
Intangible asset useful life | 15 years | |||||
eOne | Maximum | Titles Over 3 Years Old | ||||||
Business Acquisition [Line Items] | ||||||
Intangible asset useful life | 10 years | |||||
eOne | Unsecured Committed | ||||||
Business Acquisition [Line Items] | ||||||
Cash consideration per share (in dollars and GBP per share) | $ 95 | |||||
Term loans proceeds which financed acquisition | $ 1,000,000,000 | |||||
eOne | Senior Notes | Senior Unsecured Notes | ||||||
Business Acquisition [Line Items] | ||||||
Aggregate principal amount | $ 2,400,000,000 |
Business Combination - Schedule
Business Combination - Schedule of Intangible Assets Acquired (Details) - eOne $ in Millions | Dec. 30, 2019USD ($) |
Business Acquisition [Line Items] | |
Weighted average amortization period | 11 years |
Fair Value | $ 1,056 |
Established brands | |
Business Acquisition [Line Items] | |
Weighted average amortization period | 10 years |
Fair Value | $ 615 |
Trade names | |
Business Acquisition [Line Items] | |
Weighted average amortization period | 15 years |
Fair Value | $ 100 |
Artist relationships | |
Business Acquisition [Line Items] | |
Weighted average amortization period | 14 years |
Fair Value | $ 100 |
Music catalogs | |
Business Acquisition [Line Items] | |
Weighted average amortization period | 12 years |
Fair Value | $ 120 |
Other | |
Business Acquisition [Line Items] | |
Weighted average amortization period | 8 years |
Fair Value | $ 121 |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 28, 2021 | Mar. 29, 2020 | |
Earnings Per Share [Abstract] | ||
Net earnings (loss) attributable to Hasbro, Inc. | $ 116.2 | $ (69.7) |
Average shares outstanding (in shares) | 137.7 | 137.1 |
Basic | ||
Equivalent Shares (in shares) | 137.7 | 137.1 |
Net earnings per common share (in dollars per share) | $ 0.84 | $ (0.51) |
Effect of dilutive securities: | ||
Options and other share-based awards (in shares) | 0.4 | 0 |
Equivalent Shares (in shares) | 138.1 | 137.1 |
Net earnings per common share (in dollars per share) | $ 0.84 | $ (0.51) |
Earnings Per Share - Narrative
Earnings Per Share - Narrative (Details) - shares shares in Millions | 3 Months Ended | |
Mar. 28, 2021 | Mar. 29, 2020 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share, shares would have been included if no net loss (in shares) | 1.2 | |
Antidilutive securities excluded from computation of earnings per share, amount, treasury stock method | 0.4 | |
Employee stock option and restricted stock units | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 2.2 | 4.1 |
Goodwill (Details)
Goodwill (Details) $ in Millions | 3 Months Ended |
Mar. 28, 2021USD ($)segment | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Number of reportable segments | segment | 3 |
Goodwill [Roll Forward] | |
Beginning balance | $ 3,691.7 |
Goodwill allocation | 0 |
Foreign exchange translation | (0.3) |
Ending balance | 3,691.4 |
Consumer Products | |
Goodwill [Roll Forward] | |
Beginning balance | 1,385.7 |
Goodwill allocation | 199.4 |
Foreign exchange translation | (0.1) |
Ending balance | 1,585 |
Wizards of the Coast & Digital Gaming | |
Goodwill [Roll Forward] | |
Beginning balance | 53.1 |
Goodwill allocation | 254.2 |
Foreign exchange translation | 0.2 |
Ending balance | 307.5 |
Entertainment | |
Goodwill [Roll Forward] | |
Beginning balance | 2,252.9 |
Goodwill allocation | (453.6) |
Foreign exchange translation | (0.4) |
Ending balance | $ 1,798.9 |
Other Comprehensive Earnings _3
Other Comprehensive Earnings (Loss) - Schedule of Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 28, 2021 | Mar. 29, 2020 | |
Other comprehensive earnings (loss), tax effect: | ||
Tax benefit on unrealized holding gains | $ 0 | $ 0.1 |
Tax expense on cash flow hedging activities | (1) | (7.2) |
Reclassifications to earnings, tax effect: | ||
Tax expense on cash flow hedging activities | 0.2 | 0.3 |
Amortization of unrecognized pension and postretirement amounts | (0.1) | (0.1) |
Total tax effect on other comprehensive earnings (loss) | $ (0.9) | $ (6.9) |
Other Comprehensive Earnings _4
Other Comprehensive Earnings (Loss) - Schedule of Accumulated Other Comprehensive Earnings (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 28, 2021 | Mar. 29, 2020 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance at the beginning of the period | $ 2,936.7 | $ 2,995.5 |
Current period other comprehensive earnings (loss) | (11.4) | (110.6) |
Balance at the end of the period | 2,959.9 | 2,764.5 |
Pension and Postretirement Amounts | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance at the beginning of the period | (40.7) | (36.2) |
Current period other comprehensive earnings (loss) | 0.2 | 0.3 |
Balance at the end of the period | (40.5) | (35.9) |
Gains (Losses) on Derivative Instruments | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance at the beginning of the period | (22.1) | (5.2) |
Current period other comprehensive earnings (loss) | 4.5 | 21.3 |
Balance at the end of the period | (17.6) | 16.1 |
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 | 0.4 | (0.2) |
Current period other comprehensive earnings (loss) | 0 | (0.4) |
Balance at the end of the period | 0.4 | (0.6) |
Foreign Currency Translation Adjustments | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance at the beginning of the period | (132.6) | (142.6) |
Current period other comprehensive earnings (loss) | (16.1) | (131.8) |
Balance at the end of the period | (148.7) | (274.4) |
AOCI Attributable to Parent | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance at the beginning of the period | (195) | (184.2) |
Current period other comprehensive earnings (loss) | (11.4) | (110.6) |
Balance at the end of the period | $ (206.4) | $ (294.8) |
Other Comprehensive Earnings _5
Other Comprehensive Earnings (Loss) - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 28, 2021 | Mar. 29, 2020 | Dec. 27, 2020 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Accumulated other comprehensive loss | $ (206.4) | $ (294.8) | $ (195) |
Deferred losses reclassified from AOCE to net earnings | 47.9 | 54.7 | |
Net losses expected to be reclassified within next 12 months | 3.8 | ||
3.15% Notes Due 2021 | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Debt stated interest rate | 3.15% | ||
Aggregate principal amount | $ 300 | $ 300 | |
5.10% Notes Due 2044 | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Debt stated interest rate | 5.10% | ||
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 | $ 1.4 | ||
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 | 16.2 | ||
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] | |||
Deferred losses reclassified from AOCE to net earnings | $ 0.5 | $ 0.5 |
Accrued Liabilities (Details)
Accrued Liabilities (Details) - USD ($) $ in Millions | Mar. 28, 2021 | Dec. 27, 2020 | Mar. 29, 2020 |
Payables and Accruals [Abstract] | |||
Participations and residuals | $ 289.8 | $ 295.6 | $ 375.4 |
Royalties | 126.7 | 229.2 | 120.8 |
Contract liabilities - current | 146.9 | 161 | 185.6 |
Payroll and management incentives | 36.2 | 132.4 | 36.5 |
Dividends | 93.5 | 93.4 | 93.2 |
Other taxes | 67.5 | 81.9 | 49.6 |
Advertising | 69.7 | 58.6 | 44.1 |
Severance | 44 | 49.7 | 43.9 |
Other | 409.3 | 436.8 | 407.1 |
Accrued liabilities | $ 1,283.6 | $ 1,538.6 | $ 1,356.2 |
Financial Instruments - Long-te
Financial Instruments - Long-term Debt Instruments (Details) - USD ($) $ in Millions | Mar. 28, 2021 | Dec. 27, 2020 | Mar. 29, 2020 |
Debt Instrument [Line Items] | |||
Carrying Cost | $ 4,856.7 | $ 5,127.9 | $ 5,260.5 |
Less: Deferred debt expenses | 33.7 | 35.3 | 39.7 |
Current portion of long-term debt | 148.9 | 432.6 | 64.5 |
Long-term debt, carrying cost | 4,674.1 | 4,660 | 5,156.3 |
Fair Value | 5,252 | 5,617.8 | 5,005.4 |
Long-term debt, fair value | $ 5,252 | 5,617.8 | 5,005.4 |
3.90% Notes Due 2029 | |||
Debt Instrument [Line Items] | |||
Debt stated interest rate | 3.90% | ||
Carrying Cost | $ 900 | 900 | 900 |
Fair Value | $ 961.9 | 1,011.2 | 774.5 |
3.55% Notes Due 2026 | |||
Debt Instrument [Line Items] | |||
Debt stated interest rate | 3.55% | ||
Carrying Cost | $ 675 | 675 | 675 |
Fair Value | $ 731.2 | 752.7 | 641.6 |
3.00% Notes Due 2024 | |||
Debt Instrument [Line Items] | |||
Debt stated interest rate | 3.00% | ||
Carrying Cost | $ 500 | 500 | 500 |
Fair Value | $ 533.9 | 540.6 | 480.6 |
6.35% Notes Due 2040 | |||
Debt Instrument [Line Items] | |||
Debt stated interest rate | 6.35% | ||
Carrying Cost | $ 500 | 500 | 500 |
Fair Value | $ 639.6 | 636.5 | 498.2 |
3.50% Notes Due 2027 | |||
Debt Instrument [Line Items] | |||
Debt stated interest rate | 3.50% | ||
Carrying Cost | $ 500 | 500 | 500 |
Fair Value | $ 535.8 | 544.5 | 465.4 |
2.60% Notes Due 2022 | |||
Debt Instrument [Line Items] | |||
Debt stated interest rate | 2.60% | ||
Carrying Cost | $ 300 | 300 | 300 |
Fair Value | $ 309.6 | 311.5 | 295.3 |
5.10% Notes Due 2044 | |||
Debt Instrument [Line Items] | |||
Debt stated interest rate | 5.10% | ||
Carrying Cost | $ 300 | 300 | 300 |
Fair Value | 333.8 | $ 338.1 | 251.7 |
3.15% Notes Due 2021 | |||
Debt Instrument [Line Items] | |||
Debt stated interest rate | 3.15% | ||
Carrying Cost | 0 | $ 300 | 300 |
Fair Value | 0 | 302.3 | 299.9 |
Aggregate principal amount | $ 300 | 300 | |
6.60% Debentures Due 2028 | |||
Debt Instrument [Line Items] | |||
Debt stated interest rate | 6.60% | ||
Carrying Cost | $ 109.9 | 109.9 | 109.9 |
Fair Value | 134.4 | 137.4 | 122.6 |
Variable % Notes Due December 30, 2022 | |||
Debt Instrument [Line Items] | |||
Carrying Cost | 300 | 300 | 400 |
Fair Value | 300 | 300 | 400 |
Variable % Notes Due December 30, 2024 | |||
Debt Instrument [Line Items] | |||
Carrying Cost | 570 | 577.5 | 600 |
Fair Value | 570 | 577.5 | 600 |
Production Financing Facilities | |||
Debt Instrument [Line Items] | |||
Carrying Cost | 201.8 | 165.5 | 175.6 |
Fair Value | $ 201.8 | $ 165.5 | $ 175.6 |
Financial Instruments - Narrati
Financial Instruments - Narrative (Details) - USD ($) | 1 Months Ended | 3 Months Ended | |||
Nov. 30, 2019 | Sep. 30, 2019 | Mar. 28, 2021 | Dec. 27, 2020 | Mar. 29, 2020 | |
Debt Instrument [Line Items] | |||||
Current portion of long-term debt | $ 148,900,000 | $ 432,600,000 | $ 64,500,000 | ||
Production financing facilities, term (less than) | 2 years | ||||
Production financing loan, weighted average interest rate | 2.80% | ||||
Minimum | |||||
Debt Instrument [Line Items] | |||||
Term of loan facility | 3 years | ||||
3.50% Notes Due 2027 | |||||
Debt Instrument [Line Items] | |||||
Redemption price (as a percent) | 100.00% | ||||
Senior Unsecured Notes | Minimum | |||||
Debt Instrument [Line Items] | |||||
Upward adjustment if credit rating is reduced (as a percent) | 0.25% | ||||
Senior Unsecured Notes | Maximum | |||||
Debt Instrument [Line Items] | |||||
Term of loan facility | 10 years | ||||
Upward adjustment if credit rating is reduced (as a percent) | 2.00% | ||||
Senior Unsecured Notes | Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Aggregate principal amount | $ 2,400,000,000 | ||||
Underwriting discount and fees | 20,000,000 | ||||
Net proceeds after deduction of underwriting discount and fees | 2,400,000,000 | ||||
2.60% Notes Due 2022 | |||||
Debt Instrument [Line Items] | |||||
Debt stated interest rate | 2.60% | ||||
2.60% Notes Due 2022 | Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Aggregate principal amount | $ 300,000,000 | ||||
Debt stated interest rate | 2.60% | ||||
2.60% Notes Due 2022 | Senior Notes | US Treasury (UST) Interest Rate | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate (as a percent) | 0.15% | ||||
3.00% Notes Due 2024 | |||||
Debt Instrument [Line Items] | |||||
Debt stated interest rate | 3.00% | ||||
3.00% Notes Due 2024 | Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Aggregate principal amount | $ 500,000,000 | ||||
Debt stated interest rate | 3.00% | ||||
3.00% Notes Due 2024 | Senior Notes | US Treasury (UST) Interest Rate | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate (as a percent) | 0.25% | ||||
3.55% Notes Due 2026 | |||||
Debt Instrument [Line Items] | |||||
Debt stated interest rate | 3.55% | ||||
3.55% Notes Due 2026 | Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Aggregate principal amount | $ 675,000,000 | ||||
Debt stated interest rate | 3.55% | ||||
3.55% Notes Due 2026 | Senior Notes | US Treasury (UST) Interest Rate | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate (as a percent) | 0.30% | ||||
3.90% Notes Due 2029 | |||||
Debt Instrument [Line Items] | |||||
Debt stated interest rate | 3.90% | ||||
3.90% Notes Due 2029 | Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Aggregate principal amount | $ 900,000,000 | ||||
Debt stated interest rate | 3.90% | ||||
3.90% Notes Due 2029 | Senior Notes | US Treasury (UST) Interest Rate | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate (as a percent) | 0.35% | ||||
Term Loan Agreement | Unsecured Debt | |||||
Debt Instrument [Line Items] | |||||
Aggregate principal amount | $ 1,000,000,000 | ||||
Consolidated interest coverage ratio | 3 | ||||
Consolidated total leverage ratio | 3.50 | ||||
Repayments of unsecured debt | $ 7,500,000 | ||||
Term Loan Agreement | Unsecured Debt | Minimum | |||||
Debt Instrument [Line Items] | |||||
Consolidated total leverage ratio | 5.40 | ||||
Term Loan Agreement | Unsecured Debt | Maximum | |||||
Debt Instrument [Line Items] | |||||
Consolidated total leverage ratio | 5.65 | ||||
Three-Year Term Loan Facility | Unsecured Debt | |||||
Debt Instrument [Line Items] | |||||
Aggregate principal amount | $ 400,000,000 | ||||
Term of loan facility | 3 years | ||||
Three-Year Term Loan Facility | Unsecured Debt | Minimum | Eurocurrency Rate | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate (as a percent) | 0.875% | ||||
Three-Year Term Loan Facility | Unsecured Debt | Minimum | Base Rate | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate (as a percent) | 0.00% | ||||
Three-Year Term Loan Facility | Unsecured Debt | Maximum | Eurocurrency Rate | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate (as a percent) | 1.75% | ||||
Three-Year Term Loan Facility | Unsecured Debt | Maximum | Base Rate | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate (as a percent) | 0.75% | ||||
Five-Year Term Loan Facility | Unsecured Debt | |||||
Debt Instrument [Line Items] | |||||
Aggregate principal amount | $ 600,000,000 | ||||
Term of loan facility | 5 years | ||||
Five-Year Term Loan Facility | Unsecured Debt | Debt Instrument, Redemption, Period One | |||||
Debt Instrument [Line Items] | |||||
Debt stated interest rate | 5.00% | ||||
Term of loan facility | 2 years | ||||
Five-Year Term Loan Facility | Unsecured Debt | Debt Instrument, Redemption, Period Two | |||||
Debt Instrument [Line Items] | |||||
Debt stated interest rate | 10.00% | ||||
Five-Year Term Loan Facility | Unsecured Debt | Minimum | Eurocurrency Rate | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate (as a percent) | 1.00% | ||||
Five-Year Term Loan Facility | Unsecured Debt | Minimum | Base Rate | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate (as a percent) | 0.00% | ||||
Five-Year Term Loan Facility | Unsecured Debt | Maximum | Eurocurrency Rate | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate (as a percent) | 1.875% | ||||
Five-Year Term Loan Facility | Unsecured Debt | Maximum | Base Rate | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate (as a percent) | 0.875% |
Financial Instruments - Product
Financial Instruments - Production Financing Loans (Details) - USD ($) $ in Millions | Mar. 28, 2021 | Dec. 27, 2020 | Mar. 29, 2020 |
Debt Disclosure [Abstract] | |||
Production financing held by production subsidiaries | $ 201.8 | $ 165.5 | $ 175.6 |
Other loans | 7.9 | 5.4 | 9.4 |
Total | 209.7 | 170.9 | 185 |
Non-current | 82.9 | 62.9 | 141.1 |
Current | 118.9 | 102.6 | 34.5 |
Total | $ 201.8 | $ 165.5 | $ 175.6 |
Financial Instruments - Schedul
Financial Instruments - Schedule of Line of Credit Facilities (Details) $ in Millions, $ in Millions | Mar. 28, 2021CAD ($) | Mar. 28, 2021USD ($) | Dec. 27, 2020USD ($) |
Line of Credit Facility [Line Items] | |||
Production financing loan and other loans | $ 209.7 | $ 170.9 | |
CANADA | |||
Line of Credit Facility [Line Items] | |||
Production financing loan and other loans | $ 52.1 | ||
U.S. | |||
Line of Credit Facility [Line Items] | |||
Production financing loan and other loans | 149.7 | ||
U.S. Dollars and Canadian Dollars | |||
Line of Credit Facility [Line Items] | |||
Production financing loan and other loans | $ 201.8 |
Financial Instruments - Sched_2
Financial Instruments - Schedule of Production Financing Loan and Other Loans (Details) $ in Millions | 3 Months Ended |
Mar. 28, 2021USD ($) | |
Production Financing | |
Production financing loans, beginning balance | $ 165.5 |
Drawdowns | 72.4 |
Repayments | (37.4) |
Foreign exchange differences | 1.3 |
Production financing loans, ending balance | 201.8 |
Other Loans | |
Other loans, beginning balance | 5.4 |
Drawdowns | 9.9 |
Repayments | (7.8) |
Foreign exchange differences | 0.4 |
Other loans, ending balance | 7.9 |
Production financing loan and other loans, beginning balance | 170.9 |
Drawdowns | 82.3 |
Repayments | (45.2) |
Foreign exchange differences | 1.7 |
Production financing loan and other loans, ending balance | $ 209.7 |
Investments in Productions an_3
Investments in Productions and Investments in Acquired Content Rights - Program Production Costs (Details) - USD ($) $ in Millions | Mar. 28, 2021 | Dec. 27, 2020 | Mar. 29, 2020 |
Film and TV Programming | |||
Released, net of amortization | $ 481.9 | $ 428 | $ 402.5 |
Completed and not released | 35 | 17.3 | 138 |
In production | 147.4 | 185.5 | 89.9 |
Pre-production | 72.8 | 67.6 | 80.1 |
Total film costs | 737.1 | 698.4 | 710.5 |
Other Programming | |||
Released, net of amortization | 14.8 | 13.7 | 10.1 |
Completed and not released | 2.8 | 2.1 | 0 |
In production | 4.2 | 5.4 | 2.2 |
Pre-production | 8.7 | 7.6 | 0 |
Other programming costs | 30.5 | 28.8 | 12.3 |
Total Program Investments | $ 767.6 | $ 727.2 | $ 722.8 |
Investments in Productions an_4
Investments in Productions and Investments in Acquired Content Rights - Program Costs Amortization (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 28, 2021 | Mar. 29, 2020 | |
Product Information [Line Items] | ||
Program cost amortization | $ 97.5 | $ 132.2 |
eOne | ||
Product Information [Line Items] | ||
Program cost amortization | 97.5 | |
eOne | Production Investment | ||
Product Information [Line Items] | ||
Program cost amortization | 84.5 | |
eOne | Content Investment | ||
Product Information [Line Items] | ||
Program cost amortization | $ 13 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 28, 2021 | Mar. 29, 2020 | |
Income Tax Contingency [Line Items] | ||
Effective income tax rate | 9.30% | 5.70% |
Discrete income tax benefit | $ 8.9 | $ 20.1 |
eOne | ||
Income Tax Contingency [Line Items] | ||
Discrete income tax benefit | $ 22.2 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Narrative (Details) $ in Millions | 3 Months Ended | |
Mar. 29, 2020USD ($) | Mar. 28, 2021company | |
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Loss on available for sale investments, fair value option | $ (0.4) | |
Number of companies quoted on an active public market | company | 1 | |
Fair Value, Recurring | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Available-for-sale investments, elected fair value option | $ 24.8 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments - Fair Value Hierarchy (Details) - USD ($) $ in Millions | Mar. 28, 2021 | Dec. 27, 2020 | Mar. 29, 2020 |
Assets: | |||
Available-for-sale securities | $ 2.2 | $ 2.1 | $ 0.8 |
Derivatives | 9.4 | 4.8 | 46.8 |
Total assets | 11.6 | 6.9 | 47.5 |
Liabilities: | |||
Derivatives | 6.8 | 12.7 | 13.1 |
Option agreement | 21.8 | 20.6 | 20.9 |
Total liabilities | 28.6 | 33.3 | 34 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Assets: | |||
Available-for-sale securities | 2.2 | 2.1 | 0.8 |
Derivatives | 0 | 0 | 0 |
Total assets | 2.2 | 2.1 | 0.8 |
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 | 9.4 | 4.8 | 46.8 |
Total assets | 9.4 | 4.8 | 46.8 |
Liabilities: | |||
Derivatives | 6.8 | 12.7 | 13.1 |
Option agreement | 0 | 0 | 0 |
Total liabilities | 6.8 | 12.7 | 13.1 |
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 | 21.8 | 20.6 | 20.9 |
Total liabilities | $ 21.8 | $ 20.6 | $ 20.9 |
Fair Value of Financial Instr_5
Fair Value of Financial Instruments - Reconciliation of Level 3 Fair value (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 28, 2021 | Mar. 29, 2020 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance at beginning of year | $ (20.6) | $ (22.1) |
Gain from change in fair value | (1.2) | 1.2 |
Balance at end of first quarter | $ (21.8) | $ (20.9) |
Derivative Financial Instrume_3
Derivative Financial Instruments - Summary of Cash Flow Hedging Instruments (Details) - Cash Flow Hedging - Designated as Hedging Instrument - USD ($) $ in Millions | Mar. 28, 2021 | Dec. 27, 2020 | Mar. 29, 2020 |
Derivative [Line Items] | |||
Notional Amount | $ 653.8 | $ 133.3 | $ 605.7 |
Fair Value | 1.2 | (8.3) | 43.7 |
Inventory purchases | |||
Derivative [Line Items] | |||
Notional Amount | 332.1 | 31.8 | 343.3 |
Fair Value | 0.6 | (10) | 32.2 |
Sales | |||
Derivative [Line Items] | |||
Notional Amount | 208.5 | 11.6 | 101.1 |
Fair Value | 0.3 | 1.4 | 4.8 |
Production financing and other | |||
Derivative [Line Items] | |||
Notional Amount | 113.2 | 89.9 | 161.3 |
Fair Value | $ 0.3 | $ 0.3 | $ 6.7 |
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 Millions | Mar. 28, 2021 | Dec. 27, 2020 | Mar. 29, 2020 |
Derivatives, Fair Value [Line Items] | |||
Net unrealized gains | $ 1.2 | $ (8.3) | $ 43.7 |
Foreign Exchange Forward | Prepaid expenses and other current assets | |||
Derivatives, Fair Value [Line Items] | |||
Unrealized gains | 8.4 | 2.3 | 40.4 |
Unrealized losses | (4.4) | (1.6) | (1.9) |
Net unrealized gains | 4 | 0.7 | 38.5 |
Foreign Exchange Forward | Other assets | |||
Derivatives, Fair Value [Line Items] | |||
Unrealized gains | 1.8 | 1.1 | 7.1 |
Unrealized losses | (0.2) | 0 | 0 |
Net unrealized gains | 1.6 | 1.1 | 7.1 |
Foreign Exchange Forward | Accrued liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Unrealized gains | 1.7 | 3 | 0 |
Unrealized losses | (5.9) | (12.9) | (2) |
Net unrealized gains | (4.2) | (9.9) | (2) |
Foreign Exchange Forward | Other liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Unrealized gains | 0 | 0 | 0 |
Unrealized losses | (0.2) | (0.2) | 0 |
Net unrealized gains | $ (0.2) | $ (0.2) | $ 0 |
Derivative Financial Instrume_5
Derivative Financial Instruments - Schedule of Net Gains (Losses) on Cash Flow Hedges Activities (Details) - Foreign Exchange Forward - USD ($) $ in Millions | 3 Months Ended | |
Mar. 28, 2021 | Mar. 29, 2020 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Other comprehensive earnings (loss), before tax | $ 1.4 | $ 4.4 |
Cost of sales | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Other comprehensive earnings (loss), before tax | 0 | 4 |
Net revenues | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Other comprehensive earnings (loss), before tax | 0.5 | 0.3 |
Other | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Other comprehensive earnings (loss), before tax | $ 0.9 | $ 0.1 |
Derivative Financial Instrume_6
Derivative Financial Instruments - Narrative (Details) - Foreign Exchange Forward - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 28, 2021 | Mar. 29, 2020 | Dec. 27, 2020 | |
Fair Value Hedging | |||
Derivative [Line Items] | |||
Net (losses) gains on derivative | $ (6.1) | $ 2.5 | |
Not Designated as Hedging Instrument | |||
Derivative [Line Items] | |||
Notional amount | $ 653.4 | $ 238.2 | $ 590.6 |
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 Millions | Mar. 28, 2021 | Dec. 27, 2020 | Mar. 29, 2020 |
Derivatives, Fair Value [Line Items] | |||
Net unrealized gains | $ 1.4 | $ 0.4 | $ (10) |
Prepaid expenses and other current assets | |||
Derivatives, Fair Value [Line Items] | |||
Unrealized gains | 5 | 3.5 | 1.2 |
Unrealized losses | (1.2) | (0.5) | 0 |
Net unrealized gains | 3.8 | 3 | 1.2 |
Accrued liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Unrealized gains | 0.1 | 0 | 1.2 |
Unrealized losses | (2.5) | (2.6) | (12.4) |
Net unrealized gains | $ (2.4) | $ (2.6) | $ (11.2) |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 28, 2021 | Mar. 29, 2020 | |
Lessee, Lease, Description [Line Items] | ||
Operating lease expense | $ 21.8 | $ 22.9 |
Minimum | ||
Lessee, Lease, Description [Line Items] | ||
Remaining lease terms | 1 year | |
Maximum | ||
Lessee, Lease, Description [Line Items] | ||
Remaining lease terms | 18 years |
Leases - Lease Cost (Details)
Leases - Lease Cost (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 28, 2021 | Mar. 29, 2020 | |
Leases [Abstract] | ||
Operating cash flows from operating leases | $ 13.2 | $ 11.6 |
Right-of-use assets obtained in exchange for lease obligations, operating leases | $ 7.3 | $ 64.2 |
Weighted average remaining lease term, operating leases | 5 years 10 months 24 days | 6 years |
Weighted average discount rate, operating lease | 3.10% | 4.20% |
Leases - Maturities of Operatin
Leases - Maturities of Operating Lease Liabilities (Details) $ in Millions | Mar. 28, 2021USD ($) |
Leases [Abstract] | |
2021 (excluding the three months ended March 28, 2021) | $ 38.9 |
2022 | 47.8 |
2023 | 39.8 |
2024 | 27.9 |
2025 | 22.8 |
2026 and thereafter | 48.3 |
Total future lease payments | 225.5 |
Less imputed interest | 22.5 |
Present value of future operating lease payments | 203 |
Less current portion of operating lease liabilities | 45.9 |
Non-current operating lease liability | 157.1 |
Operating lease right-of-use assets, net | $ 186.4 |
Segment Reporting - Narrative (
Segment Reporting - Narrative (Details) | 3 Months Ended |
Mar. 28, 2021segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 3 |
Segment Reporting - Net Revenue
Segment Reporting - Net Revenues by Segment (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 28, 2021 | Mar. 29, 2020 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Net revenues | $ 1,114.8 | $ 1,105.6 |
Corporate and Other | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Net revenues | (109.8) | (71.6) |
Consumer Products | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Net revenues | 653.9 | 572.5 |
Consumer Products | Operating Segments | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Net revenues | 653.9 | 572.5 |
Consumer Products | Affiliate | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Net revenues | 70.3 | 55.6 |
Wizards of the Coast & Digital Gaming | Operating Segments | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Net revenues | 242.2 | 210.6 |
Wizards of the Coast & Digital Gaming | Affiliate | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Net revenues | 25.4 | 15.1 |
Entertainment | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Net revenues | 218.7 | 322.5 |
Entertainment | Operating Segments | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Net revenues | 218.7 | 322.5 |
Entertainment | Affiliate | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Net revenues | $ 14.1 | $ 0.9 |
Segment Reporting - Operating P
Segment Reporting - Operating Profit (Loss) by Segments (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 28, 2021 | Mar. 29, 2020 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Operating profit (loss) | $ 147.3 | $ (23.3) |
Corporate and Other | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Operating profit (loss) | (12) | (45.1) |
Consumer Products | Operating Segments | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Operating profit (loss) | 32.3 | (9.7) |
Wizards of the Coast & Digital Gaming | Operating Segments | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Operating profit (loss) | 110 | 95.8 |
Entertainment | Operating Segments | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Operating profit (loss) | $ 17 | $ (64.3) |
Segment Reporting - Total Asset
Segment Reporting - Total Assets by Segments (Details) - USD ($) $ in Millions | Mar. 28, 2021 | Dec. 27, 2020 | Mar. 29, 2020 |
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Total assets | $ 10,189.1 | $ 10,818.3 | $ 10,424.4 |
Corporate and Other | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Total assets | (2,102.3) | (1,322.9) | (1,612.9) |
Consumer Products | Operating Segments | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Total assets | 5,567.7 | 5,552.5 | 5,098.5 |
Wizards of the Coast & Digital Gaming | Operating Segments | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Total assets | 616.9 | 585.7 | 706 |
Entertainment | Operating Segments | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Total assets | $ 6,106.8 | $ 6,003 | $ 6,232.8 |
Segment Reporting - Schedule of
Segment Reporting - Schedule of International Segment Net Revenues by Major Geographic Region (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 28, 2021 | Mar. 29, 2020 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net revenues | $ 1,114.8 | $ 1,105.6 |
Consumer Products | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net revenues | 653.9 | 572.5 |
Consumer Products | North America | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net revenues | 362.7 | 321.8 |
Consumer Products | Europe | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net revenues | 188.5 | 156.7 |
Consumer Products | Asia Pacific | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net revenues | 64.8 | 58.2 |
Consumer Products | Latin America | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net revenues | $ 37.9 | $ 35.8 |
Segment Reporting - Net Reven_2
Segment Reporting - Net Revenues by Brand and Entertainment Segment (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 28, 2021 | Mar. 29, 2020 | |
Revenue from External Customer [Line Items] | ||
Net revenues | $ 1,114.8 | $ 1,105.6 |
Franchise Brands | ||
Revenue from External Customer [Line Items] | ||
Net revenues | 491.5 | 396.5 |
Partner Brands | ||
Revenue from External Customer [Line Items] | ||
Net revenues | 188 | 182.3 |
Hasbro Gaming | ||
Revenue from External Customer [Line Items] | ||
Net revenues | 136.3 | 140.1 |
Emerging Brands | ||
Revenue from External Customer [Line Items] | ||
Net revenues | 104.7 | 94.2 |
Entertainment | ||
Revenue from External Customer [Line Items] | ||
Net revenues | 194.3 | 292.5 |
Gaming including Magic the Gathering and Monopoly | ||
Revenue from External Customer [Line Items] | ||
Net revenues | 365.3 | 340.5 |
Entertainment | ||
Revenue from External Customer [Line Items] | ||
Net revenues | 218.7 | 322.5 |
Entertainment | Film & TV | ||
Revenue from External Customer [Line Items] | ||
Net revenues | 166.4 | 264 |
Entertainment | Family Brands | ||
Revenue from External Customer [Line Items] | ||
Net revenues | 18.8 | 25.9 |
Entertainment | Music and Other | ||
Revenue from External Customer [Line Items] | ||
Net revenues | $ 33.5 | $ 32.6 |
Restructuring Actions - Narrati
Restructuring Actions - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Mar. 28, 2021 | Jun. 28, 2020 | Mar. 29, 2020 | Dec. 27, 2020 | |
Restructuring Cost and Reserve [Line Items] | ||||
Pre-tax severance expense | $ 6.9 | |||
eOne | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Pre-tax severance expense | $ 13.2 | $ 13.2 | $ 32.5 |
Restructuring Actions - Schedul
Restructuring Actions - Schedule of Restructuring and Related Costs (Details) $ in Millions | 3 Months Ended |
Mar. 28, 2021USD ($) | |
Restructuring Reserve [Roll Forward] | |
Beginning balance | $ 36 |
Payments made in the first quarter of 2021 | (6.9) |
Ending balance | 29.1 |
2018 Restructuring & 2020 Commercial Program | |
Restructuring Reserve [Roll Forward] | |
Beginning balance | 18.3 |
Payments made in the first quarter of 2021 | (2.6) |
Ending balance | 15.7 |
eOne Integration Program | |
Restructuring Reserve [Roll Forward] | |
Beginning balance | 16.9 |
Payments made in the first quarter of 2021 | (4.3) |
Ending balance | 12.6 |
Other | |
Restructuring Reserve [Roll Forward] | |
Beginning balance | 0.8 |
Payments made in the first quarter of 2021 | 0 |
Ending balance | $ 0.8 |
Subsequent Event (Details)
Subsequent Event (Details) - Subsequent Event $ in Millions | Apr. 25, 2021USD ($) |
Subsequent Event [Line Items] | |
Proceeds from sale of business | $ 385 |
Minimum | |
Subsequent Event [Line Items] | |
Non-cash impairment loss on sale of business | 125 |
Maximum | |
Subsequent Event [Line Items] | |
Non-cash impairment loss on sale of business | $ 135 |