Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Feb. 13, 2024 | Jul. 02, 2023 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2023 | ||
Current Fiscal Year End Date | --12-31 | ||
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 | ||
Trading Symbol | HAS | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
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 | ||
ICFR Auditor Attestation Flag | true | ||
Document Financial Statement Error Correction [Flag] | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 8,933,575,963 | ||
Entity Common Stock, Shares Outstanding | 138,791,480 | ||
Documents Incorporated by Reference | Portions of our definitive proxy statement for our 2024 Annual Meeting of Shareholders are incorporated by reference into Part III of this Report. | ||
Entity Central Index Key | 0000046080 | ||
Document Transition Report | false | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2023 | |
Audit Information [Abstract] | |
Auditor Name | KPMG LLP |
Auditor Location | Providence, Rhode Island |
Auditor Firm ID | 185 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 25, 2022 |
Current assets | ||
Cash and cash equivalents, including restricted cash of $0.6 in 2023 and $14.5 in 2022 | $ 545.4 | $ 513.1 |
Accounts receivable, less allowance for credit losses of $12.7 in 2023 and $20.0 in 2022 | 1,029.3 | 1,132.4 |
Inventories | 332 | 676.8 |
Prepaid expenses and other current assets | 416.9 | 676.8 |
Total current assets | 2,323.6 | 2,999.1 |
Property, plant and equipment, net | 488.6 | 422.8 |
Other assets | ||
Goodwill | 2,279.2 | 3,470.1 |
Other intangibles, net | 587.5 | 814.6 |
Other | 862 | 1,589.3 |
Total other assets | 3,728.7 | 5,874 |
Total assets | 6,540.9 | 9,295.9 |
Current liabilities | ||
Short-term borrowings | 0 | 142.4 |
Current portion of long-term debt | 500 | 113.2 |
Accounts payable | 340.6 | 427.3 |
Accrued liabilities | 1,215.8 | 1,506.8 |
Total current liabilities | 2,056.4 | 2,189.7 |
Long-term debt | 2,965.8 | 3,711.2 |
Other liabilities | 431.7 | 533.1 |
Total liabilities | 5,453.9 | 6,434 |
Shareholders’ equity | ||
Preference stock of $2.50 par value. Authorized 5,000,000 shares; none issued | 0 | 0 |
Common stock of $0.50 par value. Authorized 600,000,000 shares; issued 220,286,736 shares as of 2023 and 2022 | 110.1 | 110.1 |
Additional paid-in capital | 2,590.6 | 2,540.6 |
Retained earnings | 2,188.4 | 4,071.4 |
Accumulated other comprehensive loss | (201.5) | (254.9) |
Treasury stock, at cost, 81,498,181 shares in 2023 and 82,106,383 shares in 2022 | (3,625.7) | (3,634.4) |
Noncontrolling interests | 25.1 | 29.1 |
Total shareholders’ equity | 1,087 | 2,861.9 |
Total liabilities, noncontrolling interests and shareholders’ equity | $ 6,540.9 | $ 9,295.9 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 25, 2022 |
Statement of Financial Position [Abstract] | ||
Restricted cash | $ 0.6 | $ 14.5 |
Accounts receivable, allowance for doubtful accounts | $ 12.7 | $ 20 |
Preference stock, par value (in dollars per share) | $ 2.50 | $ 2.50 |
Preference stock, shares authorized (in shares) | 5,000,000 | 5,000,000 |
Preference stock, shares issued (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.50 | $ 0.50 |
Common stock, shares authorized (in shares) | 600,000,000 | 600,000,000 |
Common stock, shares issued (in shares) | 220,286,736 | 220,286,736 |
Treasury stock, at cost, shares (in shares) | 81,498,181 | 82,106,383 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 25, 2022 | Dec. 26, 2021 | |
Income Statement [Abstract] | |||
Net revenues | $ 5,003,300,000 | $ 5,856,700,000 | $ 6,420,400,000 |
Costs and expenses: | |||
Cost of sales | 1,706,000,000 | 1,911,800,000 | 1,927,500,000 |
Program cost amortization | 448,900,000 | 555,500,000 | 628,600,000 |
Royalties | 428,300,000 | 493,000,000 | 620,400,000 |
Product development | 306,900,000 | 307,900,000 | 315,700,000 |
Advertising | 358,400,000 | 387,300,000 | 506,600,000 |
Amortization of intangible assets | 83,000,000 | 105,300,000 | 116,800,000 |
Selling, distribution and administration | 1,480,400,000 | 1,666,100,000 | 1,432,700,000 |
Impairment of goodwill | 1,191,200,000 | 0 | 0 |
Loss on disposal of business | 539,000,000 | 22,100,000 | 108,800,000 |
Total costs and expenses | 6,542,100,000 | 5,449,000,000 | 5,657,100,000 |
Operating profit (loss) | (1,538,800,000) | 407,700,000 | 763,300,000 |
Non-operating expense (income): | |||
Interest expense | 186,300,000 | 171,000,000 | 179,700,000 |
Investment Income, Interest | (23,000,000) | (11,800,000) | (5,400,000) |
Other expense (income), net | 7,000,000 | (13,000,000) | 7,100,000 |
Total non-operating expense, net | 170,300,000 | 146,200,000 | 181,400,000 |
Total earnings (loss) before income taxes | (1,709,100,000) | 261,500,000 | 581,900,000 |
Income tax (benefit) expense | (221,300,000) | 58,500,000 | 146,600,000 |
Net earnings (loss) | (1,487,800,000) | 203,000,000 | 435,300,000 |
Net earnings (loss) attributable to noncontrolling interests | 1,500,000 | (500,000) | 6,600,000 |
Net earnings (loss) attributable to Hasbro, Inc. | $ (1,489,300,000) | $ 203,500,000 | $ 428,700,000 |
Net earnings (loss) attributable to Hasbro, Inc. | |||
Basic (in dollars per share) | $ (10.73) | $ 1.47 | $ 3.11 |
Diluted (in dollars per share) | (10.73) | 1.46 | 3.10 |
Cash dividends declared (in dollars per share) | $ 2.80 | $ 2.80 | $ 2.72 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Earnings - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 25, 2022 | Dec. 26, 2021 | |
Statement of Comprehensive Income [Abstract] | |||
Net earnings (loss) | $ (1,487.8) | $ 203 | $ 435.3 |
Other comprehensive earnings (loss): | |||
Foreign currency translation adjustments, net of tax | 59.4 | (45.4) | (61.9) |
Unrealized holding losses on available-for-sale securities, net of tax | 0 | (0.3) | (0.1) |
Net (losses) gains on cash flow hedging activities, net of tax | (8.6) | 10.2 | 13.5 |
Changes in unrecognized pension amounts, net of tax | (0.9) | 30.8 | 3.4 |
Reclassifications to earnings, net of tax: | |||
Net losses (gains) on cash flow hedging activities | 3.8 | (16.2) | 2.6 |
Amortization of unrecognized pension and postretirement amounts | (0.3) | 1.3 | 2.2 |
Other comprehensive earnings (loss), net of tax | 53.4 | (19.6) | (40.3) |
Total comprehensive earnings (loss), net of tax | (1,434.4) | 183.4 | 395 |
Total comprehensive earnings (loss) attributable to noncontrolling interests | 1.5 | (0.5) | 6.6 |
Total comprehensive earnings (loss) attributable to Hasbro, Inc. | $ (1,435.9) | $ 183.9 | $ 388.4 |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 25, 2022 | Dec. 26, 2021 | |
Cash flows from operating activities | |||
Net earnings (loss) | $ (1,487,800,000) | $ 203,000,000 | $ 435,300,000 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | |||
Depreciation of property, plant and equipment | 127,700,000 | 127,300,000 | 163,300,000 |
Loss on disposal of business | 539,000,000 | 22,100,000 | 108,800,000 |
Impairment of goodwill | 1,191,200,000 | 0 | 0 |
Impairment of intangibles and production assets | 116,000,000 | 281,000,000 | 0 |
Loss on Discovery investment | 0 | 0 | 74,100,000 |
Fair value adjustment on Discovery Option | 0 | 0 | (20,100,000) |
Inventory obsolescence | 91,200,000 | 45,200,000 | 8,400,000 |
Amortization of intangible assets | 83,000,000 | 105,300,000 | 116,800,000 |
Program cost amortization | 448,900,000 | 555,500,000 | 628,600,000 |
Deferred income taxes | (243,500,000) | (130,100,000) | 36,000,000 |
Stock-based compensation | 72,400,000 | 83,400,000 | 97,800,000 |
Other non-cash items | (6,100,000) | 3,200,000 | (1,500,000) |
Changes in operating assets and liabilities, net of acquired and disposed balances: | |||
Decrease (increase) in accounts receivable | 15,500,000 | 339,600,000 | (159,500,000) |
Decrease (increase) in inventories | 257,100,000 | (184,700,000) | (182,300,000) |
Decrease (increase) in prepaid expenses and other current assets | 34,700,000 | 17,000,000 | (30,600,000) |
Program spend, net | (408,000,000) | (767,700,000) | (697,300,000) |
(Decrease) increase in accounts payable and accrued liabilities | (109,700,000) | (278,700,000) | 313,200,000 |
Change in net deemed repatriation tax | (34,400,000) | (18,400,000) | (18,400,000) |
Other | 38,400,000 | (30,100,000) | (54,700,000) |
Net cash provided by operating activities | 725,600,000 | 372,900,000 | 817,900,000 |
Cash flows from investing activities | |||
Additions to property, plant and equipment | (209,300,000) | (174,200,000) | (132,700,000) |
Investments and acquisitions, net of cash acquired | 0 | (146,300,000) | 0 |
Proceeds from sale of business, net of cash transferred | 329,600,000 | 0 | 378,500,000 |
Other | (2,700,000) | 7,500,000 | (3,800,000) |
Net cash provided (utilized) by investing activities | 117,600,000 | (313,000,000) | 242,000,000 |
Cash flows from financing activities | |||
Proceeds from borrowings | 2,600,000 | 3,800,000 | 144,000,000 |
Repayments of borrowings | (359,600,000) | (206,000,000) | (1,220,100,000) |
Net (repayments) proceeds of other short-term borrowings | (41,600,000) | 141,700,000 | (5,600,000) |
Purchases of common stock | 0 | (125,000,000) | 0 |
Stock-based compensation transactions | 0 | 74,200,000 | 30,600,000 |
Dividends paid | (388,000,000) | (385,300,000) | (374,500,000) |
Payments related to tax withholding for share-based compensation | (16,800,000) | (24,000,000) | (13,700,000) |
Debt extinguishment costs | 0 | 0 | (9,100,000) |
Other | (14,700,000) | (32,700,000) | (11,400,000) |
Net cash utilized by financing activities | (818,100,000) | (553,300,000) | (1,459,800,000) |
Effect of exchange rate changes on cash | 7,200,000 | (12,700,000) | (30,600,000) |
Increase (decrease) in cash, cash equivalents and restricted cash | 32,300,000 | (506,100,000) | (430,500,000) |
Cash, cash equivalents and restricted cash at beginning of year | 513,100,000 | 1,019,200,000 | 1,449,700,000 |
Cash, cash equivalents and restricted cash at end of year | 545,400,000 | 513,100,000 | 1,019,200,000 |
Supplemental information | |||
Interest paid | 179,000,000 | 161,700,000 | 171,900,000 |
Income taxes paid | $ 119,800,000 | $ 177,200,000 | $ 160,500,000 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders’ Equity and Redeemable Noncontrolling Interests - USD ($) $ in Millions | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Treasury Stock | Non-controlling Interests |
Beginning balance 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 attributable to Hasbro, Inc. | 428.7 | 428.7 | |||||
Net earnings (loss) attributable to noncontrolling interests | 3.3 | 3.3 | |||||
Change in put option value | (1.3) | (1.3) | |||||
Other comprehensive loss (earnings) | (40.3) | (40.3) | |||||
Stock-based compensation transactions | 16.8 | 1.2 | 15.6 | ||||
Stock-based compensation expense | 97.8 | 96.4 | 1.4 | ||||
Dividends declared | (375.1) | (375.1) | |||||
Distributions paid to noncontrolling owners and other foreign exchange | (3.5) | 2.6 | (6.1) | ||||
Ending balance at Dec. 26, 2021 | 3,063.1 | 110.1 | 2,428 | 4,257.8 | (235.3) | (3,534.7) | 37.2 |
Beginning balance at Dec. 27, 2020 | 24.4 | ||||||
Increase (Decrease) in Temporary Equity [Roll Forward] | |||||||
Net earnings attributable to noncontrolling interests | 3.3 | ||||||
Distributions paid to noncontrolling owners and other foreign exchange | (3.8) | ||||||
Ending balance at Dec. 26, 2021 | 23.9 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net earnings attributable to Hasbro, Inc. | 203.5 | 203.5 | |||||
Net earnings (loss) attributable to noncontrolling interests | (1.1) | (1.1) | |||||
Change in put option value | (0.4) | (0.4) | |||||
Other comprehensive loss (earnings) | (19.6) | (19.6) | |||||
Stock-based compensation transactions | 48.5 | 23.5 | 25 | ||||
Stock-based compensation expense | 83.4 | 83.1 | 0.3 | ||||
Dividends declared | (388) | 1.9 | (389.9) | ||||
Distributions paid to noncontrolling owners and other foreign exchange | (2.5) | 0 | (2.5) | ||||
Purchase of common stock | (125) | (125) | |||||
Buyout of redeemable noncontrolling interest | 4.5 | (4.5) | |||||
Ending balance at Dec. 25, 2022 | 2,861.9 | 110.1 | 2,540.6 | 4,071.4 | (254.9) | (3,634.4) | 29.1 |
Increase (Decrease) in Temporary Equity [Roll Forward] | |||||||
Net earnings attributable to noncontrolling interests | 0.6 | ||||||
Distributions paid to noncontrolling owners and other foreign exchange | (1.9) | ||||||
Buyout of redeemable noncontrolling interest | (22.6) | ||||||
Ending balance at Dec. 25, 2022 | 0 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net earnings attributable to Hasbro, Inc. | (1,489.3) | (1,489.3) | |||||
Net earnings (loss) attributable to noncontrolling interests | 1.5 | 1.5 | |||||
Other comprehensive loss (earnings) | 53.4 | 53.4 | |||||
Stock-based compensation transactions | (16.9) | (23.1) | 6.2 | ||||
Stock-based compensation expense | 72.4 | 69.9 | 2.5 | ||||
Dividends declared | (388.4) | 5.3 | (393.7) | ||||
Distributions paid to noncontrolling owners and other foreign exchange | (5.5) | (5.5) | |||||
Buyout of redeemable noncontrolling interest | (2.1) | (2.1) | |||||
Ending balance at Dec. 31, 2023 | 1,087 | $ 110.1 | $ 2,590.6 | $ 2,188.4 | $ (201.5) | $ (3,625.7) | $ 25.1 |
Ending balance at Dec. 31, 2023 | $ 0 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Preparation of Consolidated Financial Statements The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States of America 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. Certain reclassifications have been made to the prior periods’ consolidated financial statements in order to conform to the current period presentation. These reclassifications did not impact any prior amounts of net earnings (loss) or cash flows. Principles of Consolidation The consolidated financial statements include the accounts of Hasbro, Inc. and all majority-owned subsidiaries (“Hasbro” or the “Company”). Investments representing 20% to 50% ownership interests in other companies are accounted for using the equity method. For those majority-owned subsidiaries that are not 100% owned by Hasbro, the interests of the minority owners are accounted for as noncontrolling interests. All intercompany balances and transactions have been eliminated. Fiscal Year Hasbro’s fiscal year ends on the last Sunday in December. The fiscal year ended December 31, 2023 was a fifty-three week period. The fiscal years ended December 25, 2022, and December 26, 2021 were each fifty-two week periods. Strategy Review and Operational Excellence In October 2022, following a several months long review of our business, the Company announced a new strategic plan, a consumer-centric framework for bringing compelling and expansive brand experiences to audiences around the world. During the review, with the assistance of a third-party consultant, the Company identified opportunities to focus and scale its business, enhance operational excellence, including through specialized organizational programs and supply chain transformation, to drive growth and profit and enhance shareholder value. The Company is increasing strategic investment in its most valuable and profitable franchises across toys, games, licensing and entertainment, and exiting certain non-core aspects of the business. Sale of Non-core Entertainment One Film and TV Business On December 27, 2023, the Company completed the sale of its Entertainment One film and television business ("eOne Film and TV") to Lions Gate Entertainment Corp., Lions Gate Entertainment Inc. and Lions Gate International Motion Pictures S.à.r.l (collectively "Lionsgate"), pursuant to the terms of an Equity Purchase Agreement dated August 3, 2023, among Hasbro and Lionsgate. Lionsgate acquired eOne Film and TV for a purchase price of $375.0 million in cash, subject to certain purchase price adjustments plus the assumption by Lionsgate of production financing loans. See note 3 for additional information. Brand Portfolio Realignment Effective for the first quarter 2023, we realigned our brand portfolios to correspond with the evolution of our strategy. We are focusing on fewer, bigger, more profitable brands that showcase our leadership in preschool toys, action figures and accessories, games, arts & crafts, and outdoor action brands. Our new product categories beginning in the first quarter of 2023 are as follows: Franchise Brands - A refreshed group of our most financially significant brands which we consider to have the greatest long-term potential including MAGIC: THE GATHERING, Hasbro Gaming, PLAY-DOH, NERF, TRANSFORMERS, DUNGEONS & DRAGONS and PEPPA PIG. Partner Brands - The Partner Brands category includes those brands we license from other parties such as Disney's STAR WARS and MARVEL brands as well as other partners, for which we develop toy and game products, with a focus on those key Partner Brands that give us the largest growth potential and where we can lead and innovate in the category. Portfolio Brands - Our Portfolio Brands category includes those brands we own or control which we feel have upside in revenue and profitability that have not yet grown to the significance of a franchise brand . Non-Hasbro Branded Film & TV - The Non-Hasbro Branded Film & TV category includes non-Hasbro-branded film, TV and other entertainment related revenues, the majority of which are associated with the Company's non-core eOne Film and TV business sold to Lionsgate. All Hasbro-branded content is included in the portfolios noted above. Cash, Cash Equivalents and Restricted Cash Cash and cash equivalents include all cash balances and highly liquid investments purchased with an initial maturity to the Company of three months or less. Marketable Securities Included in marketable securities is common stock in a public company arising from a business relationship. This type of investment is also included in Prepaid expenses and other current assets in the accompanying Consolidated Balance Sheets. Accounts Receivable and Allowance for Credit Losses Credit is granted to customers predominantly on an unsecured basis. Credit limits and payment terms are established based on extensive evaluations made on an ongoing basis throughout the fiscal year with regard to the financial performance, cash generation, financing availability and liquidity status of each customer. The majority of customers are formally reviewed at least annually; more frequent reviews are performed based on the customer’s financial condition and the level of credit being extended. For customers on credit who are experiencing financial difficulties, management performs additional financial analyses before shipping orders. The Company uses a variety of financial transactions, based on availability and cost, to increase the collectability of certain of its accounts, including letters of credit, credit insurance, and requiring cash in advance of shipping. The Company records an allowance for credit losses for accounts receivable based on management’s expected credit losses. Management's estimate of expected credit losses is based on its assessment of the business environment, customers’ financial condition, historical collection experience, accounts receivable aging and customer disputes. Accounts receivable, net on the Consolidated Balance Sheets represents amounts due from customers less the allowance for credit losses as well as allowances for discounts, rebates and returns. Inventories Inventories are valued at the lower of cost (first-in, first-out) or net realizable value. Based upon a consideration of quantities on hand, actual and projected sales volume, anticipated product selling price and product lines planned to be discontinued, slow-moving and obsolete inventory is written down to its estimated net realizable value. At both December 31, 2023 and December 25, 2022, substantially all inventory is comprised of finished goods. Equity Method Investment For the Company’s equity method investments, only the Company’s investment in and amounts due to and from the equity method investment are included in the Consolidated Balance Sheets and only the Company’s share of the equity method investment’s earnings (losses) is included in Other expense (income), net in the Consolidated Statements of Operations. Dividends, cash distributions, loans or other cash received from the equity method investment, additional cash investments, loan repayments or other cash paid to the investee are included in the Consolidated Statements of Cash Flows. The Company reviews its equity method investments for impairment on a periodic basis. If it has been determined that the fair value of the equity investment is less than its related carrying value and that this decline is other-than-temporary, the carrying value of the investment is adjusted downward to reflect these declines in value. The Company owns an interest in a joint venture, Discovery Family Channel (“the Network”), with Discovery Communications, Inc. (“Discovery”). The Company has determined that it does not meet the control requirements to consolidate the Network and accounts for the investment using the equity method of accounting. The Company and Discovery are also party to an option agreement with respect to the Network. The Company has recorded a liability for this option agreement at fair value which is included in Other liabilities in the Consolidated Balance Sheets. Unrealized gains and losses on this option are recognized in Other expense (income), net in the Consolidated Statements of Operations as they occur. See notes 7 and 14 for additional information. Noncontrolling Interests The financial results and position of the noncontrolling interests acquired through the acquisition of eOne are included in their entirety in the Company’s Consolidated Statements of Operations and Consolidated Balance Sheets beginning with the first quarter of 2020. The value of the redeemable noncontrolling interests is presented in the Consolidated Balance Sheets as temporary equity between liabilities and shareholders' equity. During 2022, the Company redeemed all outstanding redeemable noncontrolling interest in Renegade Entertainment, LLC, the only entity for which the Company previously held redeemable noncontrolling interest. During 2022, the Company's outstanding non-redeemable noncontrolling interest in Round Room Live, LLC was included with the disposition of certain non-core businesses associated with the Company's strategy shift. The value of the non-redeemable noncontrolling interests is presented in the Consolidated Balance Sheets within Total shareholders' equity. Earnings (losses) attributable to the redeemable noncontrolling interests and non-redeemable noncontrolling interests are presented as a separate line on the Consolidated Statements of Operations which is necessary to identify those earnings (losses) specifically attributable to Hasbro. The Company's remaining non-redeemable noncontrolling interests as of December 31, 2023 is shown below. Name Country of Incorporation Ownership Interest Proportion Held Principal Activity Astley Baker Davies Limited England and Wales Nonredeemable 70% Ownership of intellectual property Property, Plant and Equipment, Net Property, plant and equipment are stated at cost less accumulated depreciation. Depreciation is computed using accelerated and straight-line methods to depreciate the cost of property, plant and equipment over their estimated useful lives. The principal lives, in years, used in determining depreciation rates of various assets are: land improvements 15 to 19, buildings and improvements 15 to 25 and machinery and equipment (including computer hardware and software) 3 to 12. Depreciation expense is classified in the Consolidated Statements of Operations based on the nature of the property and equipment being depreciated. Tools, dies and molds are depreciated over their useful lives, which is generally three years, using an accelerated method. The Company generally owns all tools, dies and molds related to its products. Property, plant and equipment, net is reviewed for impairment whenever events or circumstances indicate the carrying value may not be recoverable. Recoverability is measured by a comparison of the carrying amount of the asset or related asset group to future undiscounted cash flows expected to be generated by the asset or asset group. If such assets are considered to be impaired, the impairment to be recognized would be measured by the amount by which the carrying value of the assets exceeds their fair value wherein the fair value is the appraised value. Furthermore, assets to be disposed of are carried at the lower of the net book value or their estimated fair value less disposal costs. Goodwill and Other Intangible Assets, Net Goodwill results from acquisitions the Company has made over time. Substantially all of the Company's other intangible assets consist of the cost of acquired product rights. In establishing the value of such rights, the Company considers existing trademarks, copyrights, patents, license agreements and other product-related rights. These rights were valued on their acquisition dates based on the anticipated future cash flows from the underlying product lines. The Company has certain intangible assets related to the Tonka and Milton Bradley acquisitions that have indefinite lives. Goodwill and intangible assets deemed to have indefinite lives are not amortized and are tested for impairment at least annually. The annual goodwill test begins with a qualitative assessment, where qualitative factors and their impact on critical inputs are assessed to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value. If the Company determines that a reporting unit has an indication of impairment based on the qualitative assessment, a quantitative impairment assessment is performed. The Company's intangible assets having definite lives are being amortized over periods ranging from two The Company reviews intangible assets with definite lives for impairment whenever events or changes in circumstances indicate the carrying value may not be recoverable. Recoverability is measured by a comparison of the carrying amount of the asset to future undiscounted cash flows expected to be generated by the asset or asset group. If such assets were considered to be impaired, the impairment to be recognized would be measured by the amount by which the carrying value of the assets exceeds their fair value wherein that fair value is determined based on discounted cash flows. The Company's reporting units are determined in accordance with the provisions of Accounting Standards Codification (“ASC”) 350, “Intangibles - Goodwill and Other (Topic 350).” The Company performs its annual impairment testing of goodwill and definite-lived intangible assets during the fourth quarter of each year. See note 6 for additional information on the results of the Company’s impairment tests. Financial Instruments Hasbro’s financial instruments include cash and cash equivalents, accounts receivable, short-term borrowings, accounts payable and certain accrued liabilities. As of December 31, 2023, the carrying cost of these instruments approximated their fair value. The Company’s financial instruments as of December 31, 2023 also include long-term borrowings (see note 11 for carrying cost and related fair values) as well as certain assets and liabilities measured at fair value (see notes 14 and 18). Production Financing Production financing relates to financing facilities for certain of the Company's television and film productions. Production financing facilities are arranged on an individual production basis by either special purpose production subsidiaries, each secured by the assets and future revenues of such production subsidiaries, which are non-recourse to the Company's assets, or through a senior revolving credit facility obtained in November 2021, dedicated to production financing. These facilities typically have maturities of less than two years while the titles are in production, and are repaid once the production is delivered and all tax credits, broadcaster pre-sales and international sales have been received. In connection with the production of a television or film program, the Company records initial cash outflows within cash flows from operating activities due to its investment in the production and concurrently records cash inflows within cash flows from financing activities from the production financing it normally obtains. Under these facilities, certain of the Company's cash is restricted while the financing is outstanding. All of the Company's individual production loan and the senior revolving credit facility dedicated to production financing were assumed by Lionsgate effective upon the closing of the sale of the eOne Film and TV business in the fourth quarter of 2023. For further details, see notes 3 and 11. Revenue Recognition Revenue is recognized when control of the promised goods, intellectual property or production is transferred to the customers or licensees, in an amount that reflects the consideration the Company expects to be entitled to in exchange for transferring those goods. The Company accounts for a contract when it has approval and commitment from both parties, the rights of the parties are identified, payment terms are identified, the contract has commercial substance, and collectability of consideration is probable. The majority of the Company’s revenues are derived from sales of finished products to customers. Revenues from sales of finished products to customers accounted for 75% , 76% and 74% of the Company’s revenues for the fiscal years ended 2023 , 2022 and 2021, respectively. When determining whether control of the finished products has transferred to the customer, the Company considers any future performance obligations. Generally, the Company has no post-shipment obligation on sales of finished products to customers and revenues from product sales are recognized upon passing of title to the customer, which is generally at the time of shipment. Any shipping and handling activities that are performed by the Company, whether before or after a customer has obtained control of the products, are considered activities to fulfill our obligation to transfer the products, and are recorded as incurred within selling, distribution, and administration expenses. The Company offers various discounts, rebates, allowances, returns, and markdowns to its customers (collectively, “allowances”), all of which are considered when determining the transaction price. Certain allowances are fixed and determinable at the time of sale and are recorded at the time of sale as a reduction to revenues. Other allowances can vary depending on future outcomes such as customer sales volume (“variable consideration”). The Company estimates the amount of variable consideration using the expected value method. In estimating the amount of variable consideration using the expected value method, the Company considers various factors including but not limited to: customer terms, historical experience, any expected deviations from historical experience, and existing or expected market conditions. The Company then records an estimate of variable consideration as a reduction to revenues at the time of sale. The Company adjusts its estimate of variable consideration at least quarterly or when facts and circumstances used in the estimation process may change. Historically, adjustments to estimated variable consideration have not been material. The Company enters into contracts to license its intellectual property, which consists of its brands, in various channels including but not limited to: consumer products such as apparel or home goods, within formats such as online and digital games, within venues such as theme parks, or within formats such as television and film. The licensees pay the Company either a sales-based or usage-based royalty, or a combination of both, for use of the brands, in some cases subject to minimum guaranteed amounts or fixed fees. The license of the Company’s brands provide access to the intellectual property over the term of the license, generally without any other performance obligation of the Company other than keeping the intellectual property active, and is therefore considered a right-to-access license of symbolic intellectual property. The Company records sales-based or usage-based royalty revenues for right-to-access licenses at the occurrence of the licensees’ subsequent sale or usage. When the arrangement includes a minimum guarantee, the Company records the minimum guarantee on a ratable basis over the term of the license period and does not record the sales-based or usage-based royalty revenues until they exceed the minimum guarantee. The Company also produces, sells and licenses television and film content for distribution to third parties in formats that include broadcast, digital streaming, transactional and theatrical. These are intellectual property licenses where the licensees pay either a fixed fee for the content license or a variable fee in the form of a sales based royalty. The content that the Company delivers to its licensees typically has stand-alone functionality, generally without any other performance obligation of the Company, and is therefore considered a right-to-use license of functional intellectual property. The Company records revenues for right-to-use licenses once the license period has commenced and the licensee has the ability to use the delivered content. In arrangements where the licensee pays the Company a fixed fee for multiple seasons or multiple series of programming, arrangement fees are recorded as revenues based upon their relative fair values. The Company also earns advertising revenues from certain content made available on free to consumer, streaming video on demand platforms where the Company earns a portion of the advertising revenues earned by the service provider. The performance obligation is met and revenue is recorded when the user accesses the Company’s content through the streaming platform. The Company develops and hosts digital games featuring its brands within the games, such as Magic: The Gathering Arena and D&D Beyond . The Company does not charge a fee to the end users for the download of the games or the ability to play the games. The end users make in-application purchases of virtual currencies, with such purchased virtual currencies to be used in the games. In addition, the Company offers a subscription service for D&D Beyond that provides access to a variety of added benefits, typically for a recurring monthly, semi-annual, or annual fee. The Company records revenues from in-application purchases based on either the usage patterns of the players or the player’s estimated life, depending on the nature of the game item purchased in exchange for virtual currency. For items recognized over the player's estimated life, the Company currently recognizes digital game's revenues ratably within six months of purchase, while revenue received from subscription services is recognized ratably over the subscription term. The Company controls all aspects of the digital goods delivered to the consumer. Costs of Sales Cost of sales primarily consists of purchased materials, labor, tooling, manufacturing overheads and other inventory-related costs such as obsolescence. Investment in Productions and Acquired Content Rights and Program Cost Amortization The Company incurs costs in connection with the production of television programming and live action movies. The majority of these costs are capitalized by the Company as they are incurred and amortized using the individual-film-forecast method, whereby these costs are amortized in the proportion that the current year’s revenues bear to management’s estimate of total ultimate revenues as of the beginning of such period related to the program. Ultimate revenue estimates are periodically reviewed and adjustments, if any, will result in changes to amortization rates and estimated accruals for residuals and participations. Ultimate revenue includes estimates over a period not to exceed ten years following the date of release of the production. Ultimate revenue used in amortization of acquired content rights is estimated over the life of the acquired rights but no longer than a period of ten years. These capitalized costs are reported at the lower of cost, less accumulated amortization, or fair value, and reviewed for impairment when an event or change in circumstances occurs that indicates that impairment may exist. The fair value is determined using a discounted cash flow model which is primarily based on management’s future revenue and cost estimates. Certain of these agreements require the Company to pay minimum guaranteed advances ("MGs") for participations and residuals. MGs are recognized in the Consolidated Balance Sheets when a liability arises, usually on delivery of the television or film program to the Company. The current portion of MGs are recorded as Payables and accrued liabilities and the long-term portion are recorded as Other liabilities. Substantially all of the Company’s non-Hasbro branded productions, and all of the Company's acquired content rights, were included with the eOne Film and TV business sold to Lionsgate in the fourth quarter of 2023. The Company retained all Hasbro-branded content and will continue to develop and produce animation, digital shorts, scripted TV and theatrical films for audiences related to core Hasbro IP. Royalties The Company enters into license agreements with strategic partners, inventors, designers and others for the use of intellectual properties in its products. In addition, the Company enters into minimum guarantee royalty arrangements related to the purchase of film and television rights for content to be delivered in the future. These agreements may call for payment in advance or future payment of minimum guaranteed amounts. Amounts paid in advance are recorded as an asset and charged to expense when the related revenue is recognized in the Consolidated Statements of Operations. If all or a portion of the minimum guaranteed amounts appear not to be recoverable through future use of the rights obtained under the license, the non-recoverable portion of the guaranty is charged to expense at that time. Advertising Production costs of commercials are expensed in the fiscal year during which the production is first aired. The costs of other advertising and promotion programs are expensed in the fiscal year incurred. Shipping and Handling Hasbro expenses costs related to the shipment and handling of goods to customers as incurred. For 2023, 2022 and 2021, these costs were $225.6 million, $247.7 million and $264.1 million, respectively, and are included in selling, distribution and administration expenses. Operating Leases The Company leases certain property, vehicles and other equipment through operating leases. Operating lease right-of-use assets are recorded within Property, Plant and Equipment and the related liabilities recorded within Accrued liabilities and Other liabilities on the Company’s Consolidated Balance Sheets. The Company has no material finance leases. Operating lease assets represent the Company’s right to use the underlying asset for the lease term and lease liabilities represent an obligation to make lease payments according to the terms of the lease. Operating lease assets and liabilities are recognized at the inception of the lease agreement based on the estimated present value of lease payments over the lease term, using our incremental borrowing rate based on information available on the lease commencement date. The Company capitalizes non-lease components for equipment leases, but expenses non-lease components as incurred for real estate leases. 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. For further details on the Company's operating leases, see note 17. Income Taxes Hasbro uses the asset and liability approach for financial accounting and reporting of income taxes. Deferred income taxes reflect the net tax effect of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Deferred taxes are measured using rates expected to apply to taxable income in years in which those temporary differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. The Company recognizes deferred tax assets to the extent it believes that these assets are more likely than not to be realized. In making such a determination, all available positive and negative evidence is considered, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, and results of recent operations. The assumptions utilized in determining future taxable income require significant judgment and are consistent with the plans and estimates used to manage the underlying businesses. Actual operating results in future years could differ from current assumptions, judgments and estimates. However, the Company believes that it is more likely than not that most of the deferred tax assets recorded on our Consolidated Balance Sheets will ultimately be realized. A valuation allowance is recorded to reduce deferred tax assets to the net amount believed to be more likely than not to be realized. As of December 31, 2023, the Company recorded a valuation allowance of $432.0 million primarily related to the U.S. capital loss resulting from the sale of the Company’s eOne Film and TV business during the year. If it is determined that our deferred tax assets will be realizable in the future in excess of their net recorded amount, an adjustment would be made to the deferred tax asset valuation allowance, which would reduce the provision for income taxes. The Company uses a two-step process for the measurement of uncertain tax positions that have been taken or are expected to be taken in a tax return. The first step is a determination of whether the tax position should be recognized in the consolidated financial statements. The second step determines the measurement of the tax position. The Company records potential interest and penalties on uncertain tax positions as a component of Income tax expense. Foreign Currency Translation Foreign currency assets and liabilities are translated into U.S. dollars at period-end exchange rates, and revenues, costs and expenses are translated at weighted average exchange rates during each reporting period. Net earnings include gains or losses resulting from foreign currency transactions and, when required, translation gains and losses resulting from the use of the U.S. dollar as the functional currency in highly inflationary economies. Other gains and losses resulting from translation of financial statements are a component of Other comprehensive earnings (loss). Pension Plans, Postretirement and Postemployment Benefits Pension expense and related amounts in the Consolidated Balance Sheets are based on actuarial computations of current and future benefits. Actual results that differ from the actuarial assumptions are accumulated and, if outside a certain corridor, amortized over future periods and, therefore affect recognized expense in future periods. The corridor used for this purpose is equal to 10% of the greater of plan liabilities or market asset values, and future periods vary by plan, but generally equal the actuarially determined average expected future working lifetime of active plan participants. The Company’s policy is to fund amounts which are required by applicable regulations and which are tax deductible. The estimated amounts of future payments to be made under other retirement programs are being accrued currently over the period of active employment and are also included in pension expense. Hasbro has a contributory postretirement health and life insurance plan covering substantially all employees who retired under any of its United States defined benefit pension plans prior to January 1, 2020, and meet certain age and length of service requirements. During the fourth quarter of 2019, with the approval of the Compensation Committee of the Company's Board of Directors, the Company announced the elimination of the contributory post-retirement health and life insurance coverage for employees whose retirement eligibility begins after December 31, 2019. See note 16 for further discussion. The cost of providing these benefits on behalf of employees who retired prior to 1993 has been substantially borne by the Company. The cost of providing benefits on behalf of eligible employees who retire after 1992 is borne by the employee. The Company also has several plans covering certain groups of employees, which may provide benefits to such employees following their period of employment but prior to their retirement. The Company measures the costs of these obligations based on actuarial computations. Stock-Based Compensation The Company has a stock-based employee compensation plan for employees and non-employee members of the Company’s Board of Directors. Under this plan the Company may grant stock options at or above the fair market value of the Company’s stock, as well as restricted stock, restricted stock units and contingent stock performance awar |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Dec. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition Contract Assets and Liabilities In the ordinary course of business, the Company’s Consumer Products, Wizards of the Coast and Digital Gaming and Entertainment segments enter into contracts to license certain of the Company’s intellectual property, providing licensees right-to-use or access such intellectual property for use in the production and sale of consumer products and digital game development, and for use within content for distribution over streaming platforms and for television and film. The Company also licenses owned television and film content for distribution to third parties in formats that include broadcast, digital streaming and theatrical. Through these arrangements, the Company may receive advanced royalty payments from licensees, either in advance of a licensees’ subsequent sales to customers or, prior to the completion of the Company’s performance obligation. In addition, the Company’s Wizards of the Coast and Digital Gaming segment may receive advanced payments from end users of its digital games at the time of the initial purchase, through in-application purchases or through subscription services. These digital gaming revenues are recognized over a period of time, determined based on either player usage patterns or the estimated playing life of the user, or when additional downloadable content is made available, or as with subscription services, ratably over the subscription term. The Company defers revenues on all licensee and digital gaming advanced payments until the respective performance obligations are satisfied. The Company records the aggregate deferred revenues as contract liabilities, with the current portion recorded within Accrued liabilities and the long-term portion recorded as Other non-current liabilities in the Company’s Consolidated Balance Sheets. The Company records contract assets, primarily related to (1) minimum guarantees being recognized in advance of contractual invoicing, which are recognized ratably over the terms of the respective license periods, and (2) film and television distribution revenues recorded for content delivered, where payment will occur over the license term. The current portion of contract assets is recorded in Prepaid expenses and Other current assets, respectively, and the long-term portion is recorded within Other long-term assets. The change in the carrying amount of contract assets and liabilities for the year ended December 31, 2023 is as follows: (In millions) December 31, 2023 Assets Balance at beginning of the year $ 594.4 Recognized in current year 478.6 Amounts reclassified (1) (474.2) Assets disposed (2) (402.3) Foreign currency impact 16.8 Ending Balance $ 213.3 Liabilities Balance at beginning of the year $ 113.0 Recognized in current year 460.1 Amounts in beginning balance reclassified to revenue (89.9) Current year amounts reclassified to revenue (224.3) Liabilities disposed (1) (25.8) Foreign currency impact (2.3) Ending Balance $ 230.8 (1) These amounts are primarily related to balances reclassified to Accounts receivable. (2) See note 3 for additional information on the sale of the eOne film and TV business. Unsatisfied Performance Obligations 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 December 31, 2023, unrecognized revenue attributable to unsatisfied performance obligations expected to be recognized in the future was $11.7 million. Of this amount, we expect to recognize approximately $6.6 million in 2024 and $5.1 million in 2025. These amounts include only fixed consideration. Accounts Receivable and Allowance for Credit Losses The Company’s balance for accounts receivable on the Consolidated Balance Sheets as of December 31, 2023 and December 25, 2022 are primarily from contracts with customers. The Company had no material expense for credit losses in the fiscal years ended 2023, 2022, or 2021. Disaggregation of revenues The Company disaggregates its revenues from contracts with customers by reportable segment: Consumer Products, Wizards of the Coast and Digital Gaming and Entertainment. The Company further disaggregates revenues within its Consumer Products segment by major geographic region: North America, Europe, Latin America, and Asia Pacific; within its Wizards of the Coast and Digital Gaming segment by category: Tabletop Gaming and Digital and Licensed Gaming; and within its Entertainment segment by category: Film & TV, Family Brands, and Other. Finally, the Company disaggregates its revenues by brand portfolio into four brand categories: Franchise Brands, Partner Brands, Portfolio Brands, and Non-Hasbro Branded Film & TV. We believe these collectively depict how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors. See note 21 for additional information on disaggregation of revenues. In addition to the required disclosures below, see further discussion of the Company's revenue recognition policy in note 1. |
Sale of Non-core Entertainment
Sale of Non-core Entertainment One Film and TV Business | 12 Months Ended |
Dec. 31, 2023 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Sale of Non-core Entertainment One Film and TV Business | Sale of Non-core Entertainment One Film and TV Business In connection with Blueprint 2.0, and after evaluating its portfolio of businesses, the Company determined that the eOne Film and TV business, which was included within the Entertainment segment, was no longer aligned with its current long-term strategy and during the third quarter of 2023, the Company entered into a definitive agreement to sell the business to Lionsgate, subject to the satisfaction of customary net working capital closing conditions and holdbacks for certain retained liabilities. On December 27, 2023, the Company completed the sale of eOne Film and TV to Lionsgate, pursuant to the terms of an Equity Purchase Agreement dated August 3, 2023, among Hasbro and Lionsgate. Lionsgate acquired eOne Film and TV for a purchase price of $375.0 million in cash, subject to certain purchase price adjustments plus the assumption by Lionsgate of production financing loans. See note 11 for additional information. The Company acquired eOne Film and TV through its acquisition of eOne in December 2019. Based on the value of the net assets held by the film and television business, which included goodwill and intangible assets allocated as part of the eOne acquisition, the Company recorded a pre-tax non-cash charge of $539.0 million within Loss on disposal of business on the Consolidated Statements of Operations for the year ended December 31, 2023. The Company also recorded pre-tax cash transaction expenses of $35.1 million within Selling, distribution and administration expense on the Consolidated Statements of Operations for the year ended December 31, 2023. The impairment charge was recorded within the Entertainment segment and the transaction costs were recorded within the Corporate and Other segment. The operations of eOne Film and TV did not meet the criteria to be presented as discontinued operations in accordance with Accounting Standards Update No. 2014-08 (ASU 2014-08) Presentation of Financial Statements (Topic 205) and Property, Plant and Equipment (Topic 360) - Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity and eOne Film and TV did not represent an individually significant component of the Company’s business. As a result, income from operations before income taxes, attributable to eOne Film and TV, was recorded to the Company's Consolidated Statements of Operations, within the Entertainment segment, through the sale transaction closing date. Assets of $1.5 billion and liabilities of $542.0 million, attributable to eOne Film and TV, were de-consolidated as of the closing date and, as of December 31, 2023, there are no remaining carrying amounts within the Company's Consolidated Balance Sheets. The following table presents the carrying amounts of the major classes of eOne Film and TV assets and liabilities sold on December 27, 2023: (In millions) December 27, 2023 Assets sold: Cash and cash equivalents $ 54.1 Accounts receivable 87.9 Inventories 2.4 Other current assets 402.6 Property, plant and equipment 54.0 Other assets 885.0 Total assets sold $ 1,486.0 Liabilities sold: Short-term borrowings $ 100.0 Current portion of long-term debt 5.8 Accounts payable and accrued liabilities 375.9 Long-term debt 0.8 Other liabilities 59.5 Total liabilities sold $ 542.0 The following table summarizes loss before income taxes attributable to eOne Film and TV through the date of the transaction: (In millions) 2023 (1) 2022 2021 eOne Film and TV loss before income taxes $ (371.6) $ (7.3) $ (10.3) (1) Income before taxes includes operating results prior to the close of the sale of the Film and TV Business on December 27, 2023. |
Other Comprehensive Earnings (L
Other Comprehensive Earnings (Loss) | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
Other Comprehensive Earnings (Loss) | Other Comprehensive Earnings (Loss) Components of Other comprehensive earnings (loss) are presented within the Consolidated Statements of Comprehensive Earnings. The following table presents the related tax effects on changes in other comprehensive earnings (loss) for each of the three fiscal years ended December 31, 2023. (In millions) 2023 2022 2021 Other comprehensive earnings (loss), tax effect: Tax benefit on unrealized holding gains $ — 0.1 — Tax benefit (expense) on cash flow hedging activities 2.8 (1.3) (1.0) Tax expense on foreign currency translation amounts — — (7.2) Tax expense on changes in unrecognized pension amounts — (5.9) (1.5) Reclassifications to earnings, tax effect: Tax (benefit) expense on cash flow hedging activities (1.9) 1.6 (0.5) Tax expense (benefit) on amortization of unrecognized pension and postretirement amounts reclassified to the consolidated statements of operations 0.1 (0.3) (0.6) Total tax effect on other comprehensive earnings (loss) $ 1.0 (5.8) (10.8) Changes in the components of accumulated other comprehensive loss, net of tax for each of the three fiscal years ended December 31, 2023 are as follows: (In millions) Pension and Gains Unrealized Foreign Total 2023 Balance at December 25, 2022 $ (3.0) (12.0) (0.1) (239.8) (254.9) Current period other comprehensive earnings (loss) (0.3) (8.6) — 59.4 50.5 Reclassifications from AOCE to earnings (0.9) 3.8 — — 2.9 Balance at December 31, 2023 $ (4.2) (16.8) (0.1) (180.4) (201.5) 2022 Balance at December 26, 2021 $ (35.1) (6.0) 0.2 (194.4) (235.3) Current period other comprehensive earnings (loss) 30.8 10.2 (0.3) (45.4) (4.7) Reclassifications from AOCE to earnings 1.3 (16.2) — — (14.9) Balance at December 25, 2022 $ (3.0) (12.0) (0.1) (239.8) (254.9) 2021 Balance at December 27, 2020 $ (40.7) (22.1) 0.3 (132.5) (195.0) Current period other comprehensive earnings (loss) 3.4 13.5 (0.1) (61.9) (45.1) Reclassifications from AOCE to earnings 2.2 2.6 — — 4.8 Balance at December 26, 2021 $ (35.1) (6.0) 0.2 (194.4) (235.3) Gains (Losses) on Derivative Instruments As of December 31, 2023, the Company had remaining net deferred losses on foreign currency forward contracts, net of tax, of $2.5 million in AOCE. These instruments hedge payments related to inventory purchased in the fourth quarter of 2023 or forecasted to be purchased in 2024, intercompany expenses expected to be paid or received during 2024 and cash receipts for sales made at the end of the fourth quarter of 2023 or forecasted to be made in 2024. These amounts will be reclassified into the Consolidated Statements of Operations upon the sale of the related inventory or recognition of the related sales 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 2021 (See note 11), 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. As of December 31, 2023, deferred losses, net of tax, of $14.2 million related to these instruments remained in AOCE. For the years ended December 31, 2023 and December 25, 2022, losses, net of tax of $0.7 million related to these hedging instruments were reclassified from AOCE to net earnings. For the year ended December 26, 2021, losses, net of tax of $1.0 million, respectively, related to these hedging instruments were reclassified from AOCE to net earnings. Of the net deferred losses included in AOCE as of December 31, 2023, the Company expects net losses of approximately $2.0 million to be reclassified to the Consolidated Statements of Operations within the next 12 months. However, the amount ultimately realized in earnings is dependent on the fair value of the hedging instruments on the settlement dates. See notes 16 and 18 for additional discussion on reclassifications from AOCE to earnings. |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, Plant and Equipment (In millions) 2023 2022 Land and improvements $ 3.5 3.1 Buildings and improvements 225.9 221.1 Machinery, equipment and software 706.7 672.4 936.1 896.6 Less accumulated depreciation 618.9 654.5 317.2 242.1 Tools, dies and molds, net of accumulated depreciation 44.7 62.4 361.9 304.5 Right of use assets 208.4 239.6 Less accumulated depreciation 81.7 121.3 Total property, plant and equipment, net $ 488.6 422.8 Expenditures for maintenance and repairs which do not materially extend the life of the assets are charged to operations as incurred. In 2023, 2022 and 2021 the Company recorded $127.7 million, $127.3 million and $163.3 million, respectively, of depreciation expense. See note 17 for additional discussion on right of use assets. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill Changes in the carrying amount of goodwill, by operating segment, for the years ended December 31, 2023 and December 25, 2022 are as follows: (In millions) Consumer Products Wizards of the Coast and Digital Gaming Entertainment Total 2023 Balance at December 25, 2022 $ 1,584.7 371.5 1,513.9 3,470.1 Impairment during the period — — (1,191.2) (1,191.2) Foreign exchange translation (2.4) 0.2 2.5 0.3 Balance at December 31, 2023 $ 1,582.3 371.7 325.2 2,279.2 2022 Balance at December 26, 2021 $ 1,584.9 307.3 1,527.4 3,419.6 Acquired during the period — 64.7 — 64.7 Impairment during the period — — (11.8) (11.8) Foreign exchange translation (0.2) (0.5) (1.7) (2.4) Balance at December 25, 2022 $ 1,584.7 371.5 1,513.9 3,470.1 A portion of the Company’s goodwill and other intangible assets reside in the Corporate segment of the business. For purposes of the goodwill impairment testing, these assets are allocated to the reporting units within the Company’s operating segments. The Company performs an annual impairment assessment on goodwill. This annual impairment assessment is performed in the fourth quarter of the Company’s fiscal year. In addition, if an event occurs or circumstances change that indicate that the carrying value may not be recoverable, the Company will perform an interim impairment test at that time. During the second quarter of 2023, the Company determined that a triggering event occurred following a downward revision of the Company's financial forecast for its Film and TV business. As a result, the Company performed a quantitative impairment test and determined that the Film and TV reporting unit within the Company's Entertainment segment was impaired. During the second quarter of 2023, the Company recorded a pre-tax non- cash impairment charge of $231.2 million as the carrying value of the Film and TV reporting unit exceeded its expected fair value, as determined using a discounted cash flow model which is primarily based on management’s future revenue and cost estimates. This impairment charge was recorded within Impairment of goodwill, within the Consolidated Statement of Operations, and within the Entertainment segment for the year ended December 31, 2023. During the fourth quarter of 2023, the Company determined that a triggering event occurred following declines in the Company's financial forecast for the Family Brands reporting unit. The downward forecast revision reflects a lower profitability forecast for the PJ MASKS franchise as described below, and a change in outlook for the Company's owned and operated production efforts that shifted the Entertainment strategy to an asset lite and partner led model. As a result, the Company performed a quantitative goodwill impairment test of the Family Brands reporting unit and determined it was impaired as its carrying value exceeded its fair value. As such, during the fourth quarter of 2023, the Company recorded a pre-tax non-cash impairment charge of $960.0 million in Impairment of goodwill, within the Consolidated Statement of Operations, and within the Entertainment segment for the year ended December 31, 2023. During the fourth quarter of 2023, the Company performed a qualitative goodwill assessment with respect to each of its reporting units. Based on its qualitative assessments, the Company determined, other than the goodwill impairments of the Film and TV and Family Brands reporting units described above, it is not more likely than not that the carrying values exceed the fair values for any of its reporting units. As a result, during 2023 the Company concluded it was not necessary to perform a quantitative test for impairment of goodwill for any reporting unit, other than Film and TV and Family Brands as described above. During the third quarter of 2022, the Company determined to exit certain non-core businesses within the Entertainment segment. A revaluation of the effected businesses resulted in a pre-tax non-cash goodwill impairment charge of $11.8 million, recorded within Loss on disposal of business in the Consolidated Statement of Operations, and within the Entertainment segment for the year ended December 25, 2022. During the fourth quarter of 2022 the Company performed a qualitative goodwill assessment with respect to each of its reporting units and determined that the fair values of the Company’s reporting units exceeded their carrying values. As a result of this assessment, the Company concluded that, other than the loss on disposal goodwill impairment noted above, there was no other impairment to any of its reporting units. Accordingly, no goodwill impairment was recorded as a result of the qualitative test for the year ended December 25, 2022. In the third of quarter 2021, the Company sold eOne Music for net proceeds of $397.0 million. The Company acquired eOne Music through its acquisition of eOne in 2020. Based on the value of the net assets held by eOne Music, which included certain goodwill and intangible assets allocated to the eOne reportable segment and attributable to eOne Music, the Company recorded a pre-tax non-cash goodwill impairment charge of $108.8 million within Loss on disposal of business on the Consolidated Statements of Operations for the year ended December 26, 2021. See note 6 for details on the eOne Music goodwill impairment. During the fourth quarter of 2021 the Company performed a quantitative goodwill assessment with respect to each of its reporting units and determined that the fair values of its reporting units exceeded their carrying values. As a result of this assessment, the Company concluded that there was no impairment to any of its reporting units. Accordingly, other than the Music goodwill impairment loss noted above, there was no goodwill impairment recorded for the year ended December 26, 2021. Other Intangible Assets, Net The following table represents a summary of the Company’s other intangible assets, net at December 31, 2023 and December 25, 2022: (In millions) 2023 2022 Acquired product rights $ 1,763.8 2,112.1 Licensed rights of entertainment properties 45.0 45.0 Impairment (116.0) (281.0) Accumulated amortization (1,181.0) (1,137.2) Amortizable intangible assets 511.8 738.9 Product rights with indefinite lives 75.7 75.7 Total other intangibles assets, net $ 587.5 814.6 Certain intangible assets relating to rights obtained in the Company’s acquisition of Milton Bradley in 1984 and Tonka in 1991 are not amortized. These rights were determined to have indefinite lives and are included as product rights with indefinite lives in the table above. The Company tests these assets for impairment on an annual basis in the fourth quarter of each year or when an event occurs or circumstances change that indicate that the carrying value may not be recoverable. The Company completed its annual impairment tests of definite-lived intangible assets in the fourth quarter of 2023 and 2022, concluding that there was no impairment of these assets. The Company’s other intangible assets are amortized over their remaining useful lives, and accumulated amortization of these other intangibles is reflected in Other intangible assets, net in the accompanying Consolidated Balance Sheets. Intangible assets are reviewed for indications of impairment whenever events or changes in circumstances indicate the carrying value may not be recoverable. During the second quarter of 2023, in connection with the Company's quantitative goodwill impairment test of its Film and TV reporting unit described above, it was determined that there was an impairment of the Company's definite-lived intangible eOne Trademark as the Film and TV reporting unit produces content under, and is synonymous with the eOne name. As a result, a non-cash intangible asset impairment charge of $65.0 million was recorded in Selling, distribution and administration expense, within the Entertainment segment, within the Consolidated Statements of Operations for the year ended December 31, 2023. During the fourth quarter of 2023, due to challenging retail conditions and competitive market conditions leading to a reduction in brand profitability, the Company lowered its future revenue and costs estimates associated with its PJ MASKS brand as determined using a discounted cash flow model. As a result, the Company performed a quantitative goodwill impairment test of the PJ MASKS definite-lived intangible asset and determined it was impaired as its carrying value exceeded its fair value. As such, the Company recorded a $51.0 million impairment charge, recorded in Selling, distribution and administration within the Entertainment segment for the year ended December 31, 2023. During the fourth quarter of 2022, following the decision to cancel certain projects in conjunction with the Company's strategy shift, it was determined that there was a partial impairment of the Company's definite-lived Power Rangers intangible asset. As a result, a charge of $281.0 million was recorded during the fourth quarter of 2022 within Selling, distribution and administration There were no other triggering events in 2023 or 2022 that would indicate the Company's intangible assets were impaired. The Company will continue to incur amortization expense related to the use of acquired and licensed rights to produce various products. A portion of the amortization of these product rights will fluctuate depending on brand activation, related revenues during an annual period and future expectations, as well as rights reaching the end of their useful lives. The Company currently estimates amortization expense related to the above intangible assets for the next five years to be approximately: (In millions) 2024 $ 68.1 2025 65.5 2026 57.6 2027 57.6 2028 57.5 |
Equity Method Investment
Equity Method Investment | 12 Months Ended |
Dec. 31, 2023 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investment | Equity Method Investment The Company owns an interest in a joint venture, Discovery Family Channel (the “Network”), with Warner Bros. Discovery, Inc. ("Discovery"). The Company has determined that it does not meet the control requirements to consolidate the Network and accounts for the investment using the equity method of accounting. The Network was established to create a cable television network in the United States dedicated to high-quality children’s and family entertainment. In October 2009, the Company purchased an initial 50% share in the Network for a payment of $300.0 million and certain future tax payments based on the value of certain tax benefits expected to be received by the Company. On September 23, 2014, the Company and Discovery amended their relationship with respect to the Network and Discovery increased its equity interest in the Network to 60% while the Company retained a 40% equity interest in the Network. As of December 31, 2023 and December 25, 2022, the Company’s investment in the Network totaled $102.0 million and $120.8 million, respectively. During the Fourth quarter of 2023, the Company reviewed its investment in the Network for impairment. Due to decreases in forecasted revenues, the Company concluded that the fair value of the Company's interest in the joint venture was less than its carrying value. As a result, the Company recorded an impairment loss of $1.3 million in Other expense (income), net in the Consolidated Statements of Operations for the year ended December 31, 2023. The Company utilized the discounted cash flow method under the income approach to estimate the fair value of the Network, which requires assumptions and estimates that include: future annual cash flows, income tax rates, discount rates, estimated growth rates, and other market factors. Accelerating changes in the cable distribution industry, including technological changes and expanding options for digital content offerings, has resulted in the fragmentation of viewership, declines in subscribers to the traditional cable bundle, and pricing pressure. These factors led to the lower valuation of the Network as compared to its carrying value. During the fourth quarter of 2022 the Company reviewed its investment with Discovery for impairment and determined that the fair value of the Company's interest in the joint venture exceeded its carrying value, and as such, concluded that there was no impairment in its investment in the Network at that time. The Company’s share in the earnings of the Network for the years ended December 31, 2023, December 25, 2022 and December 26, 2021 totaled $10.9 million, $8.1 million and $20.8 million, respectively, and is included as a component of Other expense (income), net in the Consolidated Statements of Operations. The Company also enters into certain other transactions with the Network. During 2023, 2022 and 2021, these transactions were not material. In connection with the September 23, 2014 amendment, the Company and Discovery entered into an option agreement to acquire the Company’s remaining 40% ownership in the Network, exercisable during the one-year period following December 31, 2021. During 2022 the Company and Discovery further amended the agreement by extending the option exercise window through March 2025. As of December 31, 2023, the Company had not exercised the option to acquire the remaining ownership in the Network. The exercise price of the option agreement is based upon 80% of the then fair market value of the Network, subject to a fair market value floor. At December 31, 2023 and December 25, 2022, the fair market value of this option was $1.7 million and was included as a component of Other liabilities. There were no material changes to the option's value in 2023 or 2022. The Company also has a related liability due to Discovery under the existing tax sharing agreement. The balance of the associated liability, including imputed interest, was $9.0 million and $14.4 million at December 31, 2023 and December 25, 2022, respectively, and is included as a component of Other liabilities in the accompanying Consolidated Balance Sheets. During 2022 the Company recognized income of $0.7 million related to this liability due to changes in the Company's 2021 income tax rate that resulted in adjustments to future payments owed to the Network. There were no such adjustments made during 2023. During 2023, 2022 and 2021, the Company made payments to Discovery under this tax sharing agreement in the amount of $5.7 million, $5.4 million and $5.3 million, respectively. See note 20 for more information on estimated future payments in relation to the Company's Discovery tax sharing agreement. |
Investments in Productions and
Investments in Productions and Investments in Acquired Content Rights | 12 Months Ended |
Dec. 31, 2023 | |
Other Industries [Abstract] | |
Investments in Productions and Investments in Acquired Content Rights | Investments in Productions and Investments in Acquired Content Rights Investments 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 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. Programming costs are included in Other assets and consist of the following at December 31, 2023 and December 25, 2022: (In millions) 2023 (1) 2022 Investment in Films and Television Programs: Individual monetization Released, net of amortization $ 74.7 584.5 Completed and not released 5.1 23.3 In production 27.1 199.4 Pre-production 10.4 41.3 117.3 848.5 Film/TV group monetization Released, net of amortization 26.0 25.8 In production 23.6 22.2 49.6 48.0 Investment in other programming: Released, net of amortization 16.1 9.8 In production 0.8 11.8 Pre-production 0.8 3.3 17.7 24.9 Total program investments $ 184.6 921.4 (1) Investments in productions and investments in acquired content totaling $734.8 million have been removed from the Company's balance sheet as of December 31, 2023, in connection with the sale of the eOne Film and TV business completed on December 27, 2023. See note 3 for additional information. The Company recorded $448.9 million of program cost amortization related to released programming during 2023, consisting of the following: (In millions) Investment in Production Investment in Content Total Program cost amortization $ 400.7 48.2 448.9 Based on management’s total revenue estimates as of December 31, 2023, the Company's expected future amortization expenses for capitalized programming costs over the next three years are as follows: (In millions) 2024 2025 2026 Estimated Future Amortization Expense: Individual monetization Released $ 10.1 11.6 6.4 Film/TV group monetization Released 15.4 16.7 25.2 Total $ 25.5 28.3 31.6 In the normal course of its business, the Company also enters into contracts related to obtaining right of first refusal ("first look deals") to purchase, distribute, or license certain entertainment projects or content. See note 20 for more information on the Company's expected future payments for first look deals. |
Financing Arrangements
Financing Arrangements | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Financing Arrangements | Financing Arrangements As of December 31, 2023, Hasbro had available an unsecured revolving credit agreement (see Amended Revolving Credit Agreement below) in the amount of $1.25 billion and unsecured uncommitted lines of credit from various banks approximating $95.6 million. The Company had no outstanding short-term borrowings under, or supported by, these lines of credit as of December 31, 2023. Substantially all of the Company's short-term borrowings held at the end of 2022 represented borrowings made under, or supported by, these lines of credit. The weighted average interest rate of the outstanding borrowings under the uncommitted lines of credit as of December 25, 2022 was 3.3%. The Company had no borrowings outstanding under its committed line of credit as of December 31, 2023 and December 25, 2022. During 2023 and 2022, Hasbro’s working capital needs were primarily fulfilled by cash available and cash generated from operations, and to a lesser extent, in 2023, the Company issued commercial paper as described below. During the second half of 2019, in preparation for the Company's acquisition of eOne, the Company completed the following debt and equity financings: (i) the issuance of senior unsecured Notes in an aggregate principal amount of $2.4 billion, (ii) the issuance of 10.6 million shares of common stock at a public offering price of $95.00 per share and (iii) $1.0 billion in term loans provided by a Term Loan Agreement (the “Term Loan Agreement”) entered into with Bank of America, N.A., as administrative agent, and certain financial institutions, as lenders, pursuant to which such lenders committed to provide, contingent on completion of the eOne acquisition and certain other customary conditions to funding, facilities consisting of a three-year senior unsecured term loan facility in an aggregate principal amount of $400.0 million and a five-year senior unsecured term loan facility in an aggregate principal amount of $600.0 million. On December 30, 2019, the Company completed the acquisition of eOne and on that date, borrowed the full amount of $1.0 billion under the Term Loan facilities. As of December 31, 2023, the Company has repaid the full aggregate principal amount of $400.0 million on the three-year term loan facility and the full aggregate principal amount of $600.0 million on the five-year term loan facility. See note 11 for further discussion on the Term Loan Agreement. In September 2023, the Company entered into a third amended and restated revolving credit agreement with Bank of America, as administrative agent, swing line lender, a letter of credit issuer and a lender and certain other financial institutions, as lenders thereto (the "Amended Revolving Credit Agreement"), which provides the Company with commitments having a maximum aggregate principal amount of $1.25 billion. The Amended Revolving Credit Agreement contains certain financial covenants setting forth leverage and coverage requirements, and certain other limitations typical of an investment grade facility, including with respect to liens, mergers and incurrence of indebtedness. It also provides for a potential additional incremental commitment increase of up to $500.0 million subject to agreement of the lenders. Loans under the revolving credit facility bear interest, at the Company’s option, at either the Adjusted Term Benchmark Rate (determined in accordance with the Amended Revolving Credit Agreement), the Base Rate (determined in accordance with the Amended Revolving Credit Agreement) or the Daily Benchmark Rate (determined in accordance with the Amended Revolving Credit Agreement). In each case there is also a spread added to the rate, which fluctuates based upon the more favorable of the Company’s long-term debt ratings and the Company’s leverage. The Company is also required to pay a commitment fee in respect to the unused commitments under the facility, the rate for which is also determined based upon the more favorable of the Company's long-term debt ratings and leverage. The Amended Revolving Credit Agreement extends through September 20, 2028. The Amended Revolving Credit Agreement contains affirmative and negative covenants typical of this type of facility, including: (a) restrictions on the Company’s and its domestic subsidiaries’ ability to allow liens on their assets, (b) restrictions on the incurrence of indebtedness, (c) restrictions on the Company’s and certain of its subsidiaries’ ability to engage in certain mergers, (d) 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 (e) the requirement that the Company maintain: a Consolidated Total Leverage Ratio of no more than (1) 3.50:1.00 for the quarter ended December 31, 2023 and thereafter and on and after the sale of eOne Film and TV to Lionsgate, a Consolidated Net Total Leverage Ratio of no more than (i) 4.00:1.00 for each of the quarters ended September 30, 2023 and December 31, 2023, (ii) 3.75:1.00 for each of the first, second and fourth fiscal quarters of each year (other than 2023) and (iii) 4.00:1:00 for the third fiscal quarter of each year (other than 2023). The Company was in compliance with all covenants as of and for the year ended December 31, 2023. The Company had no borrowings outstanding under its committed revolving credit facility as of December 31, 2023. The Company also has an agreement with a group of banks providing a commercial paper program (the “Program”). Under the Program, at the Company’s request and subject to market conditions, the banks may either purchase from the Company, or arrange for the sale by the Company of, unsecured commercial paper notes. Borrowings under the Program are supported by the aforementioned unsecured committed line of credit and the Company may issue notes from time to time up to an aggregate principal amount outstanding at any given time of $1.0 billion. The maturities of the notes may vary but may not exceed 397 days. The notes are sold under customary terms in the commercial paper market and will be issued at a discount to par, or alternatively, will be sold at par and will bear varying interest rates based on a fixed or floating rate basis. The interest rates will vary based on market conditions and the ratings assigned to the notes by the credit rating agencies at the time of issuance. Subject to market conditions, the Company intends to utilize the Program as its primary short-term borrowing facility and does not intend to sell unsecured commercial paper notes in excess of the available amount under the revolving credit agreement discussed below. If, for any reason, the Company is unable to access the commercial paper market, the Company intends to use the revolving credit agreement to meet the Company's short-term liquidity needs. During the second quarter and third quarter of 2023, the Company issued and repaid intra-quarter commercial paper notes under the Program, to meet certain of its short-term liquidity needs. As of December 31, 2023 and December 25, 2022, the Company did not have any notes outstanding under the Program. During November 2021, the Company secured a senior revolving film and television production credit facility (the “RPCF”) with MUFG Union Bank, N.A., as administrative agent and lender and certain other financial institutions, as lenders thereto (the “Revolving Production Financing Agreement”) which provided the Company with commitments having a maximum aggregate principal amount of $250.0 million. The Revolving Production Financing Agreement also provided the Company with the option to request a commitment increase up to an aggregate additional amount of $150.0 million subject to agreement of the lenders. The Company used the RPCF to fund certain of the Company’s original film and TV production costs, however, the RPCF was assumed by Lionsgate effective upon the closing of the sale of the eOne Film and TV business in the fourth quarter of 2023. The Company also has a supplier finance program which provides participating suppliers the option of receiving payment in advance of an invoice due date, to be paid by certain administering banks, on the basis of invoices that the Company has confirmed as valid and approved. The Company’s obligation is to make payment in the invoice amount negotiated with participating suppliers, to the administering banks on the invoice due date. The Company’s suppliers are not required to participate in the supplier finance program. The early payment transactions between the Company’s supplier and the administering bank are subject to an agreement between those parties, and the Company does not participate in any financial aspect of the agreements between the Company’s suppliers and the administering banks. The Company has not pledged any assets to the administering bank under the supplier financing program. The Company or the administering bank may terminate the agreement upon at least 30 days’ written notice. The amount of obligations confirmed under the program that remain unpaid by the Company were $43.3 million, and $76.1 million as of December 31, 2023 and December 25, 2022, respectively. These obligations are presented within Accounts payable |
Accrued Liabilities
Accrued Liabilities | 12 Months Ended |
Dec. 31, 2023 | |
Accrued Liabilities, Current [Abstract] | |
Accrued Liabilities | Accrued Liabilities Components of accrued liabilities for the fiscal years ended on December 31, 2023 and December 25, 2022 are as follows: (In millions) 2023 2022 Royalties $ 286.8 195.4 Cancellation charges 118.9 89.2 Deferred revenue 101.6 111.3 Dividends 97.2 96.7 Payroll and management incentives 85.6 66.7 Severance 83.7 100.3 Other taxes 68.7 82.1 Accrued income taxes 61.6 44.8 General vendor accruals 51.9 44.3 Advertising 45.0 53.2 Participations and residuals 34.0 300.2 Current lease liability 30.5 39.6 Interest 29.9 31.0 Defined contribution plans 29.7 30.0 Freight 22.9 28.5 Insurance 13.3 11.0 Professional fees 12.4 13.6 Accrued expenses IIC & IIP 0.7 80.8 Other 41.4 88.1 Total accrued liabilities $ 1,215.8 1,506.8 |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt Components of Long-term debt for the fiscal years ended on December 31, 2023 and December 25, 2022 are as follows: (In millions) 2023 2022 Carrying Fair Value Carrying Fair Value 3.90% Notes Due 2029 $ 900.0 839.8 900.0 808.2 3.55% Notes Due 2026 675.0 641.0 675.0 635.3 3.00% Notes Due 2024 500.0 488.4 500.0 482.2 6.35% Notes Due 2040 500.0 520.1 500.0 498.4 3.50% Notes Due 2027 500.0 472.2 500.0 465.8 5.10% Notes Due 2044 300.0 271.6 300.0 261.1 6.60% Debentures Due 2028 109.9 116.0 109.9 112.1 Variable % Notes Due December 30, 2024 (1) — — 310.0 310.0 Production Financing Facilities (2) — — 53.2 53.2 Total long-term debt 3,484.9 3,349.1 3,848.1 3,626.3 Less: Deferred debt expenses 19.1 — 23.7 — Less: Current portion 500.0 — 113.2 — Long-term debt $ 2,965.8 3,349.1 3,711.2 3,626.3 (1) During the fourth quarter of 2023, the Company paid the remaining principal balance of $250.0 million of the Variable % Notes Due December 30, 2024. (2) The Company's production financing facilities were assumed by Lionsgate effective upon the closing the sale of the eOne Film and TV business in the fourth quarter of 2023. See note 3 for additional information. 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 outstanding, which range from five years to ten years from the date of issuance. The Notes bear interest at the stated rates but may be subject to upward adjustment if the credit rating of the Company is reduced by Moody's or Standard & Poors. The adjustment can be from 0.25% to 2.00% based on the extent of the ratings decrease. The Company may redeem the 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, plus (1) 25 basis points (in the case of the 2024 Notes); (2) 30 basis points (in the case of the 2026 Notes); and (3) 35 basis points (in the case of the 2029 Notes). In addition, on and after October 19, 2024 for the 2024 Notes, September 19, 2026 for the 2026 Notes and August 19, 2029 for the 2029 Notes, such series of Notes will be redeemable, in whole at any time or in part from time to time, at the Company's option at a redemption price equal to 100% of the principal amount of the Notes to be redeemed plus any accrued and unpaid interest. In September 2019, the Company entered into the $1.0 billion Term Loan Agreement consisting of (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”). The full amount of the Term Loan Facilities were drawn down on December 30, 2019, the closing date of the eOne acquisition. The Three-Year Tranche loan notes were fully repaid as of the Company’s fiscal year ended December 26, 2021. During 2022, the Company made $50.0 million principal balance and principal amortization payments totaling $37.5 million on the Five-Year Tranche loan notes. During 2023, the Company made principal amortization payments totaling $60.0 million on the Five-year Tranche loan notes, and repaid the remaining $250.0 million principal balance of the Five-Year Tranche loans using the proceeds received from the sale of eOne Film and TV. 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 December 31, 2023 o f $500.0 million , as shown on the Consolidated Balance Sheet, represents the principal balance of the 3.00% Notes due 2024. All of the Company’s other long-term borrowings have contractual maturities that occur subsequent to 2025. The Company's long-term borrowings have the following future contractual maturities: Future long-term borrowings contractual payments (In millions) 2024 $ 500.0 2025 — 2026 675.0 2027 500.0 2028 109.9 2029 and thereafter 1,700.0 $ 3,484.9 The fair values of the Company’s long-term debt are considered Level 3 fair values (see note 14 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 Prior to the sale of the eOne Film and TV business to Lionsgate, the Company used production financing to fund certain of its television and film productions which were arranged on an individual production basis by either special purpose production subsidiaries, each secured by the assets and future revenues of such production subsidiaries, which were non-recourse to the Company's assets, or through a senior revolving credit facility dedicated to production financing. 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. As of December 25, 2022, $195.6 million of production financing facilities was included within Current liabilities in the Company's Consolidated Balance Sheets. Effective upon the closing of the sale of the eOne Film and TV business in the fourth quarter of 2023, the Company's senior revolving credit facility dedicated to production financing and all outstanding individual production loans were assumed by Lionsgate. As such, the Company had no production financing outstanding as of December 31, 2023. The following table represents the movements in production financing loans during 2023: (In millions) Production Financing December 25, 2022 $ 195.6 Drawdowns 117.4 Repayments (206.7) Removed with sale of eOne film and TV (1) (105.8) Foreign exchange differences (0.5) Balance at December 31, 2023 $ — |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The components of Earnings (loss) before income taxes, determined by tax jurisdiction, are as follows: (In millions) 2023 2022 2021 United States $ (356.9) 17.0 236.8 International (1,352.2) 244.5 345.1 Total earnings (loss) before income taxes $ (1,709.1) 261.5 581.9 Income taxes attributable to Earnings (loss) before income taxes are: (In millions) 2023 2022 2021 Current United States $ (29.0) 85.9 52.3 State and local (6.4) 18.0 15.4 International 57.6 84.7 50.1 22.2 188.6 117.8 Deferred United States (36.3) (105.7) 7.1 State and local (3.0) (16.6) (0.3) International (204.2) (7.8) 22.0 (243.5) (130.1) 28.8 Total income (benefit) taxes $ (221.3) 58.5 146.6 A reconciliation of the statutory United States federal income tax rate to Hasbro’s effective income tax rate is as follows: 2023 2022 2021 Statutory income tax rate 21.0 % 21.0 % 21.0 % State and local income taxes, net 0.5 1.2 1.5 Tax on international earnings 6.7 (4.0) (1.1) Domestic tax on foreign earnings 1.3 (6.5) (1.7) Change in unrecognized tax benefits (0.3) 3.1 (3.4) U.S. capital loss 22.0 — — Change in valuation allowance (23.3) 9.7 (1.6) Share-based compensation (0.3) 1.4 (0.6) Research and development tax credits 0.3 (3.5) (1.1) Deferred tax rate change — — 6.5 Officers' compensation (0.3) 1.9 1.9 Loss on disposal of business (3.4) 1.5 3.9 Goodwill impairments (11.8) — — Other, net 0.5 (3.4) (0.1) 12.9 % 22.4 % 25.2 % Tax impact on reconciling items is opposite of the expected result due to the pretax loss in 2023. The components of deferred income tax expense (benefit) arise from various temporary differences and relate to items included in the Consolidated Statements of Operations as well as items recognized in other comprehensive earnings. The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities as of December 31, 2023 and December 25, 2022 are as follows: (In millions) 2023 2022 Deferred tax assets: Accounts receivable $ 31.8 28.8 Inventories 33.2 22.6 Loss and credit carryforwards 461.9 175.3 Operating leases 3.5 11.2 Operating expenses 19.1 29.9 Pension 6.9 9.1 Other compensation 46.4 50.7 Postretirement benefits 5.9 5.7 Interest rate hedge 4.8 4.5 Tax sharing agreement 0.3 0.3 Deferred revenue 0.4 4.4 Capitalized research and experimentation 100.6 81.2 Depreciation and amortization of long-lived assets 192.0 63.2 Interest expense limitation 28.7 — Other 3.7 11.7 Gross deferred tax assets 939.2 498.6 Deferred tax liabilities: Depreciation and amortization of long-lived assets 108.0 125.0 Equity method investment 19.0 14.9 Operating leases 1.1 9.3 Prepaid expenses 4.0 4.4 Other 22.8 15.4 Gross deferred tax liabilities 154.9 169.0 Valuation allowance (432.0) (189.8) Net deferred income taxes $ 352.3 139.8 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. During 2023, the Company concluded its discussions with the tax authorities in Switzerland as to the application of the grandfathering rules related to TRAF. This has resulted in the recording of a deferred tax asset of $135.6 million related to tax intangibles that will be amortized over time. This treatment applies starting in 2021. As of December 31, 2023, the Company has loss and credit carryforwards of $461.9 million, which is an increase of $286.6 million from $175.3 million at December 25, 2022. The most significant amount of the loss and credit carryforwards as of December 31, 2023 relates to U.S. capital losses of $375.6 million resulting from the sale of the eOne Film and TV business during 2023. Other significant loss and credit carryforwards relate to tax attributes of entities that have historically operated at losses in certain jurisdictions, as well as certain state tax attributes. The U.S. capital loss has a carryforward period of five years and will expire if not utilized before 2029. Some U.S. federal, state and international loss and credit carryforwards expire at various dates throughout 2024 while others have an indefinite carryforward period. The recoverability of these future tax deductions and credits is evaluated by assessing the adequacy of future expected taxable income from all sources, including taxable income in prior carryback years, reversal of taxable temporary differences, forecasted operating earnings and available tax planning strategies. To the extent the Company does not consider it more likely than not that a deferred tax asset will be recovered, a valuation allowance is generally established. To the extent that a valuation allowance was established and it is subsequently determined that it is more likely than not that the deferred tax assets will be recovered, the change in the valuation allowance is recognized in the Consolidated Statements of Operations. The Company has a valuation allowance for certain net deferred tax assets at December 31, 2023 of $432.0 million, which is an increase of $242.2 million from $189.8 million at December 25, 2022. The increase primarily pertains to a U.S. capital loss resulting from the sale of the Company's eOne Film and TV business, for which the Company recorded a valuation allowance of $364.8 million in 2023. The increase was offset by a decrease to the valuation allowance related to entities in certain jurisdictions which were sold as part of the sale of the eOne Film and TV business. As of December 31, 2023 and December 25, 2022, the Company’s net deferred income taxes are recorded in the Consolidated Balance Sheets as follows: (In millions) 2023 2022 Other assets $ 427.9 262.1 Other liabilities (75.6) (122.3) Net deferred income taxes $ 352.3 139.8 We previously considered the earnings in our non-U.S. subsidiaries to be indefinitely reinvested and, accordingly, recorded no deferred income taxes. However, the Tax Cuts and Jobs Act (the "Tax Act") enacted on December 22, 2017 gave the Company more flexibility to manage cash globally. The Company still has significant cash needs outside the United States and continues to consistently monitor and analyze its global working capital and cash requirements. However, we intend to repatriate substantially all of our accumulated foreign earnings when appropriate. As of December 31, 2023, we have recorded $3.2 million of foreign withholding and U.S. state income tax liability. The Company has not finalized the timing of any actual cash distributions or the specific amounts and therefore we could still be subject to some additional foreign withholding taxes and U.S. state income taxes. We will record these additional tax effects, if any, in the period that we complete our analysis and are able to make a reasonable estimate. A reconciliation of unrecognized tax benefits, excluding potential interest and penalties, for the fiscal years ended 2023, 2022, and 2021 is as follows: (In millions) 2023 2022 2021 Balance at beginning of year $ 77.8 50.6 67.8 Gross increases in prior period tax positions 11.9 0.9 0.6 Gross decrease from disposition (10.4) — — Gross decreases in prior period tax positions (23.4) (0.2) (12.0) Gross increases in current period tax positions 3.8 28.6 4.6 Decrease related to settlements with tax authorities (8.4) — (2.7) Decreases from the expiration of statute of limitations (11.4) (2.1) (7.7) Balance at end of year $ 39.9 77.8 50.6 Unrecognized tax benefits as of December 31, 2023, December 25, 2022 and December 26, 2021 were $39.9 million, $77.8 million, and $50.6 million, respectively, and are recorded within Other liabilities, Prepaid expenses and other current assets, and Other assets in the Company's Consolidated Balance Sheets. If recognized, these tax benefits may have affected our income tax provision for fiscal years 2023, 2022, and 2021 by approximately $46.0 million, $53.0 million, and $46.0 million, respectively. During 2023, 2022, and 2021, the Company recognized $5.8 million, $2.2 million, and $2.6 million, respectively, of potential interest and penalties, which are included as a component of Income taxes in the accompanying Consolidated Statements of Operations. As of December 31, 2023, December 25, 2022, and December 26, 2021, the Company had accrued potential interest and penalties of $6.2 million, $8.8 million, and $7.3 million, respectively. 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. The Company is no longer subject to U.S. federal income tax examinations for years before 2017. With few exceptions, the Company is no longer subject to U.S. state or local and non-U.S. income tax examinations by tax authorities in its major jurisdictions for years before 2017. The Company is currently under income tax examination by the Internal Revenue Service and in several U.S. state and local and non-U.S. jurisdictions. The Company believes it is reasonably possible that a decrease of approximately $0.0 million - $4.0 million in gross unrecognized tax benefits may be necessary within the coming year as a result of expected tax return settlements and lapse of statute of limitations. |
Capital Stock
Capital Stock | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
Capital Stock | Capital Stock The Company has a long history of increasing shareholder value through its share repurchase program. Purchases of the Company’s common stock may be made from time to time, subject to market conditions, and may be made in the open market or through privately negotiated transactions. The Company has no obligation to repurchase shares under the authorization and the time, actual number, and the value of the shares which are repurchased will depend on a number of factors, including the price of the Company’s common stock. As part of this initiative, since 2005, the Company's Board of Directors adopted numerous share repurchase authorizations with a cumulative authorized repurchase amount of $4.3 billion. The most recent authorization for the repurchase of up to $500.0 million in common stock was approved in May 2018. As a result of the financing activities related to the eOne acquisition, the Company suspended its share repurchase program to prioritize deleveraging, and did not repurchase any shares during 2021. In April 2022, given the Company's progress towards reducing debt, the Company resumed its share repurchase activity and repurchased approximately 1.4 million shares at a total cost of $125.0 million and at an average price of $87.46 per share. In 2023, the Company has been focused on increasing strategic investment in its most valuable and profitable franchises, while exiting certain non-core businesses, and as such, no shares were repurchased. As of December 31, 2023, $241.6 million remained under the current authorization. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 2023 | |
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. There have been no transfers between levels within the fair value hierarchy. As of December 31, 2023 and December 25, 2022, 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 (In millions) Fair Quoted Significant Significant December 31, 2023 Assets: Available-for-sale securities $ 1.1 1.1 — — Derivatives 0.7 — 0.7 — Total assets $ 1.8 1.1 0.7 — Liabilities: Derivatives $ 3.9 — 3.9 — Option agreement 1.7 — — 1.7 Total liabilities $ 5.6 — 3.9 1.7 December 25, 2022 Assets: Available-for-sale securities $ 1.7 1.7 — — Derivatives 7.9 — 7.9 — Total assets $ 9.6 1.7 7.9 — Liabilities: Derivatives $ 2.9 — 2.9 — Option agreement 1.7 — — 1.7 Total liabilities $ 4.6 — 2.9 1.7 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. The option agreement is included in Other liabilities as of December 31, 2023 and December 25, 2022, and is valued using an option pricing model based on the fair value of the related investment. Inputs used in the option pricing model include 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. See note 7 for more information on the Company's investment in the Discovery Family Channel. The following is a reconciliation of the beginning and ending balances of the fair value measurements of the Company’s financial instruments which use significant unobservable inputs (Level 3): (In millions) 2023 2022 Balance at beginning of year $ (1.7) (1.7) Balance at end of year $ (1.7) (1.7) |
Stock Options, Other Stock Awar
Stock Options, Other Stock Awards and Warrants | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock Options, Other Stock Awards and Warrants | Stock Options, Other Stock Awards and Warrants The Company has reserved 8.7 million shares of its common stock for issuance upon exercise of options and other awards granted or to be granted under stock incentive plans for employees and for non-employee members of the Board of Directors (collectively, the “plans”). These awards generally vest and are expensed in equal annual amounts over three Total compensation expense related to stock options, restricted stock units, including those awards made to non-employee members of its Board of Directors, and stock performance awards for the years ended December 31, 2023, December 25, 2022 and December 26, 2021 was $71.9 million, $81.3 million and $97.8 million, respectively, and was recorded as follows: (In millions) 2023 2022 2021 Product development $ 7.0 4.8 3.7 Selling, distribution and administration 64.9 76.5 94.1 Total stock compensation expense before income taxes 71.9 81.3 97.8 Income tax benefit 9.2 9.0 10.2 Total stock compensation expense after income taxes $ 62.7 72.3 87.6 The following table represents total stock compensation expense, net of performance adjustments, by award type related to stock performance awards, restricted stock units, stock options and awards made to non-employee members of the Company’s Board of Directors, for the years ended December 31, 2023, December 25, 2022 and December 26, 2021: (In millions) 2023 2022 2021 Stock performance awards $ 15.8 9.6 26.9 Restricted stock units 47.8 60.7 50.9 Stock options 7.0 8.9 18.4 Non-employee awards 1.3 2.1 1.6 Total stock compensation expense before income taxes 71.9 81.3 97.8 Income tax benefit 9.2 9.0 10.2 Total compensation expense after income taxes $ 62.7 72.3 87.6 Stock Performance Awards In 2023, 2022 and 2021, as part of its annual equity grant to executive officers and certain other employees, the Company issued contingent stock performance awards (the “Stock Performance Awards”). These awards provide the recipients with the ability to earn shares of the Company’s common stock based on the Company’s achievement of stated cumulative operating performance targets over the three a relative Total Shareholder Return ("TSR") modifier ranking as compared to the S&P 500, to determine the number of shares earned at the end of the performance period. The ultimate amount of the award may vary from 0% to 200% of the target number of shares, depending on the cumulative results achieved. Information with respect to Stock Performance Awards for 2023, 2022 and 2021 is as follows: (In millions, except per share data) 2023 2022 2021 Outstanding at beginning of year 0.8 0.7 0.6 Granted 0.7 0.4 0.2 Forfeited (0.2) (0.1) — Canceled (0.1) — (0.1) Vested (0.2) (0.2) — Outstanding at end of year 1.0 0.8 0.7 Weighted average grant-date fair value: Granted $ 56.00 88.77 96.06 Forfeited $ 74.06 80.77 — Canceled $ 56.49 — 77.33 Vested $ 56.49 86.90 — Outstanding at end of year $ 70.15 78.15 75.74 Shares canceled in 2023 and 2021 represent Stock Performance Awards granted during 2020 and 2019, respectively, that were canceled based on the failure to meet the targets set forth by the agreements. Stock Performance Awards are valued at the market value of the underlying common stock at the dates of grant and are expensed over the performance period. On a periodic basis, the Company reviews the actual and forecasted performance of the Company against the stated targets for each award. The total expense is adjusted upward or downward based on the expected number of shares to be issued as defined in the respective stock performance award agreement. If minimum targets as detailed under the award are not met, no additional compensation expense will be recognized and any previously recognized compensation expense will be reversed. During 2023, 2022 and 2021, the Company recognized expense, net of performance adjustments, of $15.8 million, $9.6 million and $26.9 million, respectively, relating to Stock Performance Awards. The expense recognized in 2021 included $7.6 million of additional stock expense associated with the contractual acceleration of outstanding performance share awards upon the passing of the Company's former CEO. As of December 31, 2023, the amount of total unrecognized compensation cost related to these awards is approximately $34.0 million and the weighted average period over which this will be expensed is 23 months. Restricted Stock Units The Company, as part of its annual equity grant to executive officers and certain other employees, issues restricted stock or grants restricted stock units. These shares or units are nontransferable and subject to forfeiture for periods prescribed by the Company. These awards are valued at the market value of the underlying common stock at the date of grant and are subsequently amortized over the periods during which the restrictions lapse, generally three years. During 2023, 2022 and 2021, the Company recognized compensation expense, net of forfeitures, on these awards of $47.8 million, $60.7 million and $50.9 million, respectively. The expense recognized in 2021 included $6.0 million of additional stock expense associated with the contractual acceleration of outstanding restricted stock awards upon the passing of the Company's former CEO. As of December 31, 2023, the amount of total unrecognized compensation cost related to restricted stock units is $67.1 million and the weighted average period over which this will be expensed is 23 months. Information with respect to the remaining Restricted Stock Awards and Restricted Stock Units for 2023, 2022 and 2021 is as follows: (In millions, except per share data) 2023 2022 2021 Outstanding at beginning of year 1.2 1.1 1.0 Granted 1.2 0.7 0.7 Forfeited (0.2) (0.1) (0.1) Vested (0.6) (0.5) (0.5) Outstanding at end of year 1.6 1.2 1.1 Weighted average grant-date fair value: Granted $ 56.80 86.41 91.06 Forfeited $ 74.22 91.18 85.88 Vested $ 90.32 91.33 91.42 Outstanding at end of year $ 66.08 88.85 91.78 Stock Options Information with respect to stock options for each of the three fiscal years ended December 31, 2023 is as follows: (In millions, except per share data) 2023 2022 2021 Outstanding at beginning of year 1.8 2.9 2.8 Granted 1.4 0.6 0.6 Exercised — (0.8) (0.5) Expired or forfeited (0.9) (0.9) — Outstanding at end of year 2.3 1.8 2.9 Exercisable at end of year 0.9 0.8 2.1 Weighted average exercise price: Granted $ 55.92 94.89 90.31 Exercised $ — 85.60 65.12 Expired or forfeited $ 81.22 97.16 95.59 Outstanding at end of year $ 75.24 93.62 92.15 Exercisable at end of year $ 93.96 92.95 92.05 With respect to the 2.3 million outstanding options and 0.9 million options exercisable at December 31, 2023, the weighted average remaining contractual life of these options was 4.86 years and 3.07 years, respectively, all of which have no intrinsic value. The Company uses the Black-Scholes valuation model in determining the fair value of stock options. The expected life of the options used in this calculation is the period of time the options are expected to be outstanding and has been determined based on historical exercise experience. The weighted average fair value of options granted in fiscal 2023, 2022 and 2021 was $12.73, $22.10 and $21.30, respectively. The fair value of each option grant is estimated on the date of grant using the Black-Scholes option pricing model with the following weighted average assumptions used for grants in the fiscal years 2023, 2022 and 2021: 2023 2022 2021 Risk-free interest rate 4.44 % 1.79 % 0.50 % Expected dividend yield 4.95 % 2.95 % 3.01 % Expected volatility 38 % 37 % 38 % Expected option life 3 years 4 years 4 years The intrinsic values, which represent the difference between the fair market value on the date of exercise and the exercise price of the option, for the options exercised in fiscal 2022 and 2021 were $13.6 million and $16.0 million, respectively. No options were exercised during fiscal 2023. As of December 31, 2023, the amount of total unrecognized compensation cost related to stock options was $14.1 million and the weighted average period over which this will be expensed is 23 months. Non-Employee Awards In 2023, 2022 and 2021, the Company granted 28,000, 24,000 and 17,000 shares of common stock, respectively, to its non-employee members of its Board of Directors. Of these shares, the receipt of 14,000 shares from the 2023 grant, 12,000 shares from the 2022 grant and 10,000 shares from the 2021 grant has been deferred to the date upon which the respective director ceases to be a member of the Company’s Board of Directors. These awards were valued at the market value of the underlying common stock at the date of grant and vested upon grant. In connection with these grants, compensation cost of $1.3 million, $2.1 million and $1.6 million was recorded in Selling, distribution and administration expense for the fiscal years ended 2023, 2022 and 2021, respectively. |
Pension, Postretirement and Pos
Pension, Postretirement and Postemployment Benefits | 12 Months Ended |
Dec. 31, 2023 | |
Retirement Benefits [Abstract] | |
Pension, Postretirement and Postemployment Benefits | Pension, Postretirement and Postemployment Benefits Pension and Postretirement Benefits The Company recognizes an asset or liability for each of its defined benefit pension plans equal to the difference between the projected benefit obligation of the plan and the fair value of the plan’s assets. Actuarial gains and losses and prior service costs that have not yet been included in income are recognized in the Consolidated Balance Sheets in AOCE. Reclassifications to earnings from AOCE related to pension and postretirement plans are recorded to Other expense (income). Expenses related to the Company’s defined benefit pension and defined contribution plans for 2023, 2022 and 2021 were approximately $44.9 million, $45.5 million and $49.3 million, respectively. Of these amounts, $40.9 million, $39.5 million and $42.7 million, respectively, related to defined contribution plans in the United States and certain international subsidiaries. The remainder of the expense relates to defined benefit pension plans discussed below. United States Plans Prior to 2008, substantially all United States employees were covered under at least one of several non-contributory defined benefit pension plans maintained by the Company. Benefits under the two major plans which principally covered non-union employees, were based primarily on salary and years of service. Benefits under the remaining plans are based primarily on fixed amounts for specified years of service. In 2007, for the two major plans covering its non-union employees, the Company froze benefits being accrued effective at the end of December 2007. Following the August 2015 sale of its manufacturing facility in East Longmeadow, MA, the Company elected to freeze benefits related to its major plan covering union employees. Effective January 1, 2016, the plan covering union employees merged with and into the Hasbro Inc. Pension Plan, and ceased to exist as a separate plan on that date. In February 2018, the Compensation Committee of the Company’s Board of Directors approved a resolution to terminate the Company’s U.S. defined benefit pension plan (“U.S. Pension Plan”). During the first quarter of 2018 the Company commenced the U.S. Pension Plan termination process and received regulatory approval during the fourth quarter of 2018. During the second quarter of 2019, the Company settled all remaining benefits directly with vested participants electing a lump sum payout, and purchased a group annuity contract from Massachusetts Mutual Life Insurance Company to administer all future payments to remaining U.S. Pension Plan participants. The U.S. Pension Plan's net funded asset position was sufficient to cover the lump sum payments and the purchase of the group annuity contract and settle all other remaining benefit obligations with no additional cost to the Company. After the settlement of the benefit obligations and payment of expenses, the Company had excess assets in the U.S. Pension Plan of approximately $20.2 million. The Company elected to utilize the remaining surplus after payment of administrative expenses for the Company's future matching contributions under the Company's 401(k) plan. The Company made a transfer of $19.5 million to the Company’s 401(k) plan which occurred in February 2020, with the remainder transferred in November 2021. Upon settlement of the pension liability, which occurred in May 2019, the Company recognized a non-operating settlement charge of $110.8 million, with an additional settlement charge of $0.2 million in December 2019, related to pension losses, reclassified from Accumulated other comprehensive loss to Other (income) expense in the Company's Consolidated Statements of Operations, adjusted for market conditions and settlement costs at benefit distribution. During 2020, the Company merged its employee retirement agreements, which had beginning benefit liabilities of $14.8 million, with its remaining US pension plans. As of December 31, 2023, the measurement date, the Company's remaining plans were unfunded with an aggregate accumulated and projected benefit obligation of $30.1 million. The Company also provides certain postretirement health care and life insurance benefits to eligible employees who retired prior to January 1, 2020 and have either attained age 65 with 5 years of service or age 55 with 10 years of service. The cost of providing these benefits on behalf of employees who retired prior to 1993 has been substantially borne by the Company. The cost of providing benefits to all eligible employees who retire after 1992 is borne by the employee. The plan is not funded. During the fourth quarter of 2019, with the approval of the Compensation Committee of the Company's Board of Directors, the Company announced the elimination of the contributory postretirement health and life insurance coverage for employees whose retirement eligibility begins after December 31, 2019. As of December 31, 2023, the Company had unrecognized gains related to its remaining U.S. pension and postretirement plans of $1.4 million. Reconciliations of the beginning and ending balances for the projected benefit obligation, the fair value of plan assets and the funded status are included below for the years ended December 31, 2023 and December 25, 2022. Pension Postretirement (In millions) 2023 2022 2023 2022 Change in Projected Benefit Obligation Projected benefit obligation — beginning $ 30.3 41.6 19.6 28.1 Interest cost 1.6 1.1 1.1 0.8 Actuarial loss (gain) 1.5 (9.3) 1.1 (7.6) Benefits paid (3.3) (3.1) (1.6) (1.7) Plan amendments — — — — Projected benefit obligation — ending $ 30.1 30.3 20.2 19.6 Accumulated benefit obligation — ending $ 30.1 30.3 20.2 19.6 Change in Plan Assets Fair value of plan assets — beginning $ — — — — Fair value of plan assets — ending $ — — — — Reconciliation of Funded Status Projected benefit obligation $ (30.1) (30.3) (20.2) (19.6) Fair value of plan assets — — — — Funded status (30.1) (30.3) (20.2) (19.6) Unrecognized prior service cost (credit) — — (0.6) (0.9) Unrecognized net loss (earnings) 4.6 3.2 (2.6) (3.8) Net amount $ (25.5) (27.1) (23.4) (24.3) Accrued liabilities $ (3.0) (3.0) (1.5) (1.5) Other liabilities (27.1) (27.3) (18.7) (18.0) Accumulated other comprehensive (earnings) loss 4.6 3.2 (3.2) (4.8) Net amount $ (25.5) (27.1) (23.4) (24.3) Assumptions used to determine the year-end pension and postretirement benefit obligations are as follows: 2023 2022 Pension Weighted average discount rate 5.23 % 5.61 % Mortality table PriH-2012/Scale PriH-2012/Scale Postretirement Discount rate 5.20 % 5.58 % Health care cost trend rate assumed for next year 6.75 % 7.00 % Rate to which the cost trend rate is assumed to decline (ultimate trend rate) 5.00 % 5.00 % Year that the rate reaches the ultimate trend 2031 2031 The following presents detail of the components of the net periodic benefit cost for the three years ended December 31, 2023. (In millions) 2023 2022 2021 Components of Net Periodic Cost Pension Service cost $ — — — Interest cost 1.6 1.1 1.1 Expected return on assets — — — Amortization of actuarial loss — 0.8 1.0 Curtailment/Settlement losses — — 0.5 Net periodic benefit cost $ 1.6 1.9 2.6 Postretirement Interest cost $ 1.1 0.8 0.8 Amortization of service cost (0.3) (0.3) — Amortization of actuarial loss (0.2) 0.1 — Net periodic benefit cost $ 0.6 0.6 0.8 Assumptions used to determine net periodic benefit cost of the pension plan and postretirement plan for each fiscal year follow: 2023 2022 2021 Pension Weighted average discount rate 5.61 % 2.91 % 2.51 % Long-term rate of return on plan assets N/A N/A N/A Postretirement Discount rate 5.58 % 3.03 % 2.72 % Health care cost trend rate assumed for next year 7.00 % 6.00 % 6.25 % Rate to which the cost trend rate is assumed to decline (ultimate trend rate) 5.00 % 5.00 % 5.00 % Year that the rate reaches the ultimate trend rate 2031 2025 2025 Expected benefit payments under the defined benefit pension plans and the postretirement benefit plan for the next five years subsequent to 2023 and in the aggregate for the following five years are as follows: (In millions) Pension Postretirement 2024 $ 3.1 $ 1.6 2025 3.0 1.6 2026 2.9 1.5 2027 2.8 1.5 2028 2.7 1.5 2029-2033 12.0 6.8 International Plans Pension coverage for employees of Hasbro’s international subsidiaries is provided, to the extent deemed appropriate, through separate defined benefit and defined contribution plans. As of December 31, 2023 and December 25, 2022, the defined benefit plans had total projected benefit obligations of $83.4 million and $77.8 million, respectively, and fair values of plan assets of $78.8 million and $71.0 million, respectively. Substantially all of the plan assets are invested in equity and fixed income securities. The pension expense related to these plans was $1.3 million, $3.1 million and $4.0 million in 2023, 2022 and 2021, respectively. In fiscal 2024, the Company expects an immaterial amount of unrecognized net losses, amortization of prior service costs and unrecognized transition obligation to be included as a component of net periodic benefit cost. Expected benefit payments under the international defined benefit pension plans for the five years subsequent to 2023 and in the aggregate for the five years thereafter are as follows: 2024: $3.2 million; 2025: $2.9 million; 2026: $3.2 million; 2027: $3.4 million; 2028: $7.3 million; and 2029 through 2033: $23.7 million. Postemployment Benefits Hasbro has several plans covering certain groups of employees, which may provide benefits to such employees following their period of active employment but prior to their retirement. These plans include certain severance plans which provide benefits to employees involuntarily terminated and certain plans which continue the Company’s health and life insurance contributions for employees who have left Hasbro’s employ under terms of its long-term disability plan. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Leases | Leases The Company occupies offices and uses certain equipment under various operating lease arrangements. The Company has no finance leases. The leases have remaining terms of 1 to 15 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. The rent expense under such arrangements and similar arrangements that do not qualify as leases under ASU 2016-02, net of sublease income amounted to $89.5 million, $93.9 million and $88.2 million, respectively, for each of the years ended 2023, 2022 and 2021, and was not material to the Company’s financial statements nor were expenses related to short term leases (expected term less than twelve months) or variable lease payments during those same periods. All leases expire prior to 2039. Real estate taxes, insurance and maintenance expenses are generally obligations of the Company. Operating leases often contain renewal options. In those locations in which the Company continues to operate, management expects that, in the normal course of business, leases that expire will be renewed or replaced by leases on other properties. Information related to the Company's leases for the years ended December 31, 2023 and December 25, 2022 is as follows: Year Ended Year Ended Year Ended (In millions) December 31, 2023 December 25, 2022 December 26, 2021 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 48.6 52.4 53.4 Right-of-use assets obtained in exchange for lease obligations: Operating leases net of lease modifications $ 87.8 5.8 28.4 Weighted Average Remaining Lease Term: Operating leases 7.1 years 4.4 years 5.6 years Weighted Average Discount Rate: Operating leases 3.8 % 3.4 % 3.0 % 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 December 31, 2023: Year Ended (In millions) December 31, 2023 2024 $ 45.2 2025 40.3 2026 33.0 2027 22.8 2028 18.2 2029 and thereafter 52.5 Total future lease payments 212.0 Less imputed interest 60.4 Present value of future operating lease payments 151.6 Less current portion of operating lease liabilities (1) 30.5 Non-current operating lease liability (2) 121.1 Operating lease right-of-use assets, net (3) $ 126.7 (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 |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Dec. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments Hasbro uses foreign currency forward and option 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 facilities (see note 11) 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 All of the Company’s designated foreign currency forward contracts are considered to be cash flow hedges. These instruments hedge a portion of the Company’s currency requirements associated with anticipated inventory purchases, product sales and other cross-border transactions in 2024. As of December 31, 2023 and December 25, 2022, the notional amounts and fair values of the Company’s foreign currency forward and option contracts designated as cash flow hedging instruments were as follows: 2023 2022 (In millions) Notional Fair Notional Fair Hedged transaction Inventory purchases $ 129.9 (1.7) 166.3 (2.7) Sales 89.7 (0.2) 99.2 1.2 Production financing and other 31.7 (0.5) 116.8 1.5 Total $ 251.3 (2.4) 382.3 — 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 December 31, 2023 and December 25, 2022 as follows: (In millions) 2023 2022 Prepaid expenses and other current assets Unrealized gains $ 0.5 4.3 Unrealized losses (0.1) (1.8) Net unrealized gains $ 0.4 2.5 Other assets Unrealized gains $ — 0.3 Unrealized losses — — Net unrealized gains $ — 0.3 Accrued liabilities Unrealized gains $ 0.7 1.6 Unrealized losses (3.5) (4.4) Net unrealized losses $ (2.8) (2.8) Net gains (losses) on cash flow hedging activities have been reclassified from other comprehensive earnings (loss) to net earnings for the years ended December 31, 2023, December 25, 2022 and December 26, 2021 as follows: (In millions) 2023 2022 2021 Consolidated Statements of Operations Classification Cost of sales $ (1.1) 17.3 (4.7) Net revenues 0.2 2.3 1.0 Other (2.2) (0.9) 2.0 Net realized (losses) gains $ (3.1) 18.7 (1.7) 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. 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 December 31, 2023 and December 25, 2022, the total notional amounts of the Company’s undesignated derivative instruments were $340.5 million and $765.6 million, respectively. As of December 31, 2023 and December 25, 2022, the fair value of the Company’s undesignated derivative financial instruments are recorded in the Consolidated Balance Sheets as follows: (In millions) 2023 2022 Prepaid expenses and other current assets Unrealized gains $ 0.3 10.9 Unrealized losses — (5.9) Net unrealized gains $ 0.3 5.0 Accrued liabilities Unrealized gains $ 1.4 — Unrealized losses (2.5) — Net unrealized losses $ (1.1) — Total unrealized (losses) gains, net $ (0.8) 5.0 The Company recorded net gains of $23.4 million, $42.1 million and $4.6 million on these instruments to Other expense (income), net for 2023, 2022 and 2021, 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 instruments relate. For additional information related to the Company’s derivative financial instruments see notes 4 and 14. |
Restructuring Actions
Restructuring Actions | 12 Months Ended |
Dec. 31, 2023 | |
Restructuring Charges [Abstract] | |
Restructuring Actions | Restructuring Actions During 2018 and 2020, the Company took certain restructuring actions including headcount reduction aimed at right-sizing the Company’s cost-structure and integration actions related to the acquisition of eOne. As of December 31, 2023, the Company had a remaining balance of $2.5 million in severance and other employee expenses related to these programs included within other accrued liabilities in the Consolidated Balance Sheets, after making payments of $2.6 million in fiscal 2023. Substantially all of the remaining cash payments related to these programs are expected to be made by the end of 2024. During 2022, in support of Blueprint 2.0, Hasbro announced an Operational Excellence program ("the Program"), an ongoing enterprise-wide initiative intended to improve our business through specialized organizational programs that include targeted cost-savings, supply chain transformation and certain other restructuring actions designed to drive growth and enhance shareholder value. In January 2023, in connection the Program we announced the elimination of approximately 1,000 positions from our global workforce, or approximately 15% of global full-time employees. In December 2023, following a further review of the Company’s cost structure and organizational design, the Company announced additional strategic steps to position the business for future growth, including a revised organizational structure as well as additional headcount reductions. The Company’s organizational structure changes will result in the reallocation of people and resources, which will include voluntary early retirement for certain groups of employees and additional involuntary reductions in employees (“Additional Actions”). The Company currently anticipates that approximately 900 incremental positions will be eliminated as part of the Additional Actions, which are expected to be substantially completed over the next 18 to 24 months. Charges related to the Program were recorded in Selling, distribution and administration expense within Corporate and Other. These actions are expected to be substantially complete by the end of 2024. Going forward, the Company may implement further cost-saving initiatives under the Program that could result in additional restructuring charges including severance and other employee charges. As of December 31, 2023, the liability balance associated with Program related restructuring actions consisted of severance payments recorded within Other accrued liabilities in the Consolidated Balance Sheets as follows: (In millions) Total Operational Excellence: Balance at December 25, 2022 84.9 2023 charges 38.2 2023 payments (41.9) Balance at December 31, 2023 81.2 The following table presents the restructuring charges incurred to date under the Program, along with the estimated charges expected to be incurred on approved initiatives under the plan as of December 31, 2023: (In millions) Total Operational Excellence: Charges incurred to date 132.3 Estimated charges to be incurred on approved initiatives — Total expected charges on approved initiatives 132.3 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Hasbro had unused open letters of credit and related instruments of approximately $13.3 million and $11.9 million at December 31, 2023 and December 25, 2022, respectively. The Company enters into license agreements with strategic partners, inventors, designers and others for the use of intellectual properties in its products. Certain of these agreements contain provisions for the payment of guaranteed or minimum royalty amounts. Under terms of existing agreements as of December 31, 2023, Hasbro may, provided the other party meets their contractual commitment, be required to pay amounts as follows: 2024: $108.6 million; 2025: $103.5 million; 2026: $73.2 million; 2027: $34.0 million; 2028: $5.0 million; and thereafter: $5.0 million. As of December 31, 2023, the Company had $19.0 million of prepaid royalties, all of which are included in prepaid expenses and other current assets. Interest payment obligations on the Company's fixed-rate long-term debt are as follows: 2024: $145.9 million; 2025: $130.9 million; 2026: $130.9 million; 2027: $104.0 million; 2028: $87.0 million; and thereafter: $632.1 million. See note 11 for information on repayment terms for the Company's variable rate term loans. The Company enters into contracts with certain partners which among other things, provide the Company with the right of first refusal to purchase, distribute, or license certain entertainment projects or content. As of December 31, 2023, the Company estimates that it may be obligated to pay $3.9 million and $1.5 million in 2024 and 2025, respectively, related to such agreements. In connection with the Company’s agreement to form a joint venture with Discovery, the Company is obligated to make future payments to Discovery under a tax sharing agreement. The Company estimates these payments may total approximately $9.9 million and may range from approximately $0.4 million to $6.4 million per year during the period 2024 to 2026, with no remaining payments due thereafter. These payments are contingent upon the Company having sufficient taxable income to realize the expected tax deductions of certain amounts related to the joint venture. As of December 31, 2023, the Company estimates payments related to inventory and tooling purchase commitments may total approximately $157.3 million. Hasbro is party to certain legal proceedings, as well as certain asserted and unasserted claims. Amounts accrued, as well as the total amount of reasonably possible losses with respect to such matters, individually and in the aggregate, are not deemed to be material to the consolidated financial statements. See note 17 for additional information on the Company's future lease payment commitments. See note 11 for additional information on the Company's long-term debt and production financing repayments. |
Segment Reporting
Segment Reporting | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting Segment and Geographic Information Hasbro is a toy and game company with a broad portfolio of brands and entertainment content spanning toys, games, licensed products ranging from traditional to digital, as well as film and television entertainment. The Company's reportable segments are Consumer Products, Wizards of the Coast and Digital Gaming, Entertainment, and Corporate and Other. 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. Additionally, through license agreements with third parties, we develop and sell products based on popular third-party brands. The Wizards of the Coast and 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. Additionally, we out-license certain of our brands to other third-party digital game developers who transform Hasbro brand-based characters and other intellectual properties, into digital gaming experiences. The Entertainment segment engages in the development and production of Hasbro-branded entertainment content including film, television, children’s programming, digital content and live entertainment focused on Hasbro-owned properties. Segment performance is measured at the operating profit level. Included in Corporate and Other are certain corporate expenses, including the elimination of intersegment transactions and certain assets benefiting more than one segment. Intersegment sales and transfers are reflected in management reports at amounts approximating cost. Certain shared costs, including global development and marketing expenses and corporate administration, are allocated to segments based upon expenses and foreign exchange rates fixed at the beginning of the year, with adjustments to actual expenses and foreign exchange rates included in Corporate and Other. The accounting policies of the segments are the same as those referenced in note 1. Results shown for fiscal years 2023, 2022 and 2021 are not necessarily those which would be achieved if each segment was an unaffiliated business enterprise. Information by segment and a reconciliation to reported amounts are as follows: (In millions) Revenues Affiliate Depreciation Capital Total 2023 Consumer Products (a) $ 2,886.4 279.9 130.0 60.0 6,456.2 Wizards of the Coast and Digital Gaming 1,457.6 183.6 27.8 122.5 4,340.5 Entertainment (a)(b) 659.3 51.8 28.5 0.4 3,507.7 Corporate and Other (b) — (515.3) 24.4 26.4 (7,763.5) Consolidated Total $ 5,003.3 — 210.7 209.3 6,540.9 2022 Consumer Products (a) $ 3,572.5 396.7 152.5 87.0 5,757.7 Wizards of the Coast and Digital Gaming 1,325.1 172.5 14.6 52.5 2,968.7 Entertainment (a)(b) 959.1 57.5 43.8 6.9 6,273.3 Corporate and Other (b) — (626.7) 21.6 27.8 (5,703.8) Consolidated Total $ 5,856.7 — 232.5 174.2 9,295.9 2021 Consumer Products $ 3,981.6 465.4 112.4 73.1 4,925.5 Wizards of the Coast and Digital Gaming 1,286.6 121.6 48.5 35.1 1,585.1 Entertainment (b) 1,152.2 61.5 96.6 6.2 6,052.8 Corporate and Other (b) — (648.5) 22.6 18.3 (2,525.6) Consolidated Total $ 6,420.4 — 280.1 132.7 10,037.8 (In millions) 2023 2022 2021 Operating profit (loss) Consumer Products $ (64.7) 217.3 401.4 Wizards of the Coast and Digital Gaming 525.7 538.3 547.0 Entertainment (b) (1,911.5) 22.7 (91.8) Corporate and Other (b)(c) (88.3) (370.6) (93.3) Operating profit (loss) (1,538.8) 407.7 763.3 Interest expense 186.3 171.0 179.7 Interest income (23.0) (11.8) (5.4) Other non-operating expense (income) 7.0 (13.0) 7.1 Earnings (loss) before income taxes $ (1,709.1) 261.5 581.9 (a) Beginning in 2022, the Company has allocated certain of the intangible amortization costs related to the assets acquired in the eOne Acquisition, between the Consumer Products and Entertainment segments. (b) 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 Corporate and Other 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. (c) Corporate and Other Operating profit (loss) includes Operational Excellence related transformation office and consulting fees of $35.3 million for the year ended December 31, 2023, which are recorded within Selling, distribution and administration costs within the Consolidated Statements of Operations. Third party consultants were engaged to assist the Company in performing a comprehensive review of operations and developing a transformation plan designed to support the organization in identifying, realizing, and capturing savings through the identification of organizational initiatives intended to create efficiencies and improve business processes and operations. The consultants assisted in providing benchmark data and are currently assisting with the design of an improved operating model and supply chain function. The Company expects this consulting assistance to conclude in 2024 in line with the planning stages of the final components of the transformation plan. Corporate and Other Operating Profit (loss) includes other consulting expense of $24.7 million for the year ended December 25, 2022, as well as incentive compensation for all periods presented. The following table represents consolidated Consumer Products segment net revenues by major geographic region for the three fiscal years ended December 31, 2023. (In millions) 2023 2022 2021 North America $ 1,649.1 2,064.8 2,315.9 Europe 669.5 899.5 1,067.7 Asia Pacific 256.3 293.4 310.1 Latin America 311.5 314.8 287.9 Net revenues $ 2,886.4 3,572.5 3,981.6 The following table represents consolidated Wizards of the Coast and Digital Gaming segment net revenues by category for the three fiscal years ended December 31, 2023: (In millions) 2023 2022 2021 Tabletop Gaming $ 1,072.5 1,067.0 950.6 Digital and Licensed Gaming 385.1 258.1 336.0 Net revenues $ 1,457.6 1,325.1 1,286.6 The following table represents consolidated Entertainment segment net revenues by category for the three fiscal years ended December 31, 2023 . (In millions) 2023 2022 2021 Film and TV $ 575.5 837.6 932.5 Family Brands 83.8 79.4 132.9 Music and Other — 42.1 86.8 Net revenues $ 659.3 959.1 1,152.2 The following table presents consolidated net revenues by brand portfolio for the three fiscal years ended December 31, 2023. (In millions) 2023 2022 2021 Franchise Brands $ 3,256.5 3,350.8 3,541.9 Partner Brands 687.8 1,052.0 1,161.0 Portfolio Brands 521.3 625.2 719.8 Non-Hasbro Branded Film & TV 537.7 828.7 997.7 Net revenues $ 5,003.3 5,856.7 6,420.4 Net revenue from Hasbro’s Total Gaming category, including all gaming revenues, most notably DUNGEONS Information as to Hasbro’s operations in different geographical areas is presented below on the basis the Company uses to manage its business. Net revenues are categorized based on the location of the customer, while long-lived assets (property, plant and equipment, goodwill and other intangibles) are categorized based on their location. (In millions) 2023 2022 2021 Net revenues United States $ 3,010.1 3,544.2 3,898.9 International 1,993.2 2,312.5 2,521.5 $ 5,003.3 5,856.7 6,420.4 Long-lived assets United States $ 1,153.7 1,042.3 1,359.6 International 2,201.6 3,665.3 3,653.0 $ 3,355.3 4,707.6 5,012.6 Principal international markets include Europe, Canada, Mexico and Latin America, Australia, China and Hong Kong. Long-lived assets include property, plant and equipment, goodwill and other intangibles. Other Information Hasbro markets its tangible products primarily to customers in the retail sector. Although the Company closely monitors the creditworthiness of its customers, adjusting credit policies and limits as deemed appropriate, a substantial portion of its customers’ ability to discharge amounts owed is generally dependent upon the overall retail economic environment. In 2023 and 2022 the Company’s largest customers were Walmart, Inc. and Amazon.com, Inc. with sales to each of these customers amounting to 11% of consolidated net revenues in 2023 and 11% and 10%, respectively, of consolidated net revenues during 2022. In 2021 sales to these customers amounted to 13% and 11%, respectively, of consolidated net revenues. Net revenues from the Company’s major customers are reported within the Consumer Products segment, Wizards of the Coast & Digital Gaming segment and the Entertainment segment. Hasbro purchases certain components used in its manufacturing process and certain finished products from manufacturers in the Far East. The Company’s reliance on external sources of manufacturing can be shifted, over a period of time, to alternative sources of supply for products it sells, should such changes be necessary. However, if the Company were prevented from obtaining products from a substantial number of its current Far East suppliers due to political, labor or other factors beyond its control, the Company’s operations would be disrupted, potentially for a significant period of time, while alternative sources of product were secured. The imposition of trade sanctions, tariffs, border adjustment taxes or other measures by the United States or the European Union against a class of products imported by Hasbro from, or the loss of “normal trade relations” status with, China, or other countries where we manufacture products, or other factors which increase the cost of manufacturing in China, or other countries where we manufacture products, such as higher labor costs or an appreciation in the Chinese Yuan, could significantly disrupt our operations and/or significantly increase the cost of the products which are manufactured and imported into other markets. The Company has agreements which allow it to develop and market products based on properties owned by third parties including its license with Marvel Entertainment, LLC and Marvel Characters B.V. (together “Marvel”) and its license with Lucas Licensing Ltd. and Lucasfilm Ltd. (together “Lucas”). These licenses have multi-year terms and provide the Company with the right to market and sell designated classes of products based on Marvel’s portfolio of brands, including SPIDER-MAN and THE AVENGERS, and Lucas’s STAR WARS brand. Both Marvel and Lucas are owned by The Walt Disney Company. |
Schedule II Valuation and Quali
Schedule II Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2023 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule II - Valuation and Qualifying Accounts | Schedule II-Valuation and Qualifying Accounts Fiscal Years Ended in December (Thousands of Dollars) Valuation accounts deducted from assets to which they apply — for credit losses for accounts receivable: Balance at Expense Other Write-Offs Balance 2023 $ 20.0 $ 4.2 $ — $ (11.5) $ 12.7 2022 $ 22.9 $ 7.9 $ — $ (10.8) $ 20.0 2021 $ 33.6 $ 5.3 $ — $ (16.0) $ 22.9 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 25, 2022 | Dec. 26, 2021 | |
Pay vs Performance Disclosure | |||
Net earnings attributable to Hasbro, Inc. | $ (1,489.3) | $ 203.5 | $ 428.7 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Dec. 31, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Preparation of Consolidated Financial Statements | The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States of America 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. Certain reclassifications have been made to the prior periods’ consolidated financial statements in order to conform to the current period presentation. These reclassifications did not impact any prior amounts of net earnings (loss) or cash flows. |
Principles of Consolidation, and Noncontrolling Interests | The consolidated financial statements include the accounts of Hasbro, Inc. and all majority-owned subsidiaries (“Hasbro” or the “Company”). Investments representing 20% to 50% ownership interests in other companies are accounted for using the equity method. For those majority-owned subsidiaries that are not 100% owned by Hasbro, the interests of the minority owners are accounted for as noncontrolling interestsThe financial results and position of the noncontrolling interests acquired through the acquisition of eOne are included in their entirety in the Company’s Consolidated Statements of Operations and Consolidated Balance Sheets beginning with the first quarter of 2020. The value of the redeemable noncontrolling interests is presented in the Consolidated Balance Sheets as temporary equity between liabilities and shareholders' equity. During 2022, the Company redeemed all outstanding redeemable noncontrolling interest in Renegade Entertainment, LLC, the only entity for which the Company previously held redeemable noncontrolling interest. During 2022, the Company's outstanding non-redeemable noncontrolling interest in Round Room Live, LLC was included with the disposition of certain non-core businesses associated with the Company's strategy shift. The value of the non-redeemable noncontrolling interests is presented in the Consolidated Balance Sheets within Total shareholders' equity. Earnings (losses) attributable to the redeemable noncontrolling interests and non-redeemable noncontrolling interests are presented as a separate line on the Consolidated Statements of Operations which is necessary to identify those earnings (losses) specifically attributable to Hasbro. |
Fiscal Year | Hasbro’s fiscal year ends on the last Sunday in December. The fiscal year ended December 31, 2023 was a fifty-three week period. The fiscal years ended December 25, 2022, and December 26, 2021 were each fifty-two week periods. |
Cash and Cash Equivalents | Cash and cash equivalents include all cash balances and highly liquid investments purchased with an initial maturity to the Company of three months or less. |
Marketable Securities | Included in marketable securities is common stock in a public company arising from a business relationship. This type of investment is also included in Prepaid expenses and other current assets in the accompanying Consolidated Balance Sheets. |
Accounts Receivable and Allowance for Credit Losses | Credit is granted to customers predominantly on an unsecured basis. Credit limits and payment terms are established based on extensive evaluations made on an ongoing basis throughout the fiscal year with regard to the financial performance, cash generation, financing availability and liquidity status of each customer. The majority of customers are formally reviewed at least annually; more frequent reviews are performed based on the customer’s financial condition and the level of credit being extended. For customers on credit who are experiencing financial difficulties, management performs additional financial analyses before shipping orders. The Company uses a variety of financial transactions, based on availability and cost, to increase the collectability of certain of its accounts, including letters of credit, credit insurance, and requiring cash in advance of shipping. The Company records an allowance for credit losses for accounts receivable based on management’s expected credit losses. Management's estimate of expected credit losses is based on its assessment of the business environment, customers’ financial condition, historical collection experience, accounts receivable aging and customer disputes. Accounts receivable, net on the Consolidated Balance Sheets represents amounts due from customers less the allowance for credit losses as well as allowances for discounts, rebates and returns. |
Inventories | Inventories are valued at the lower of cost (first-in, first-out) or net realizable value. Based upon a consideration of quantities on hand, actual and projected sales volume, anticipated product selling price and product lines planned to be discontinued, slow-moving and obsolete inventory is written down to its estimated net realizable value. |
Equity Method Investment | For the Company’s equity method investments, only the Company’s investment in and amounts due to and from the equity method investment are included in the Consolidated Balance Sheets and only the Company’s share of the equity method investment’s earnings (losses) is included in Other expense (income), net in the Consolidated Statements of Operations. Dividends, cash distributions, loans or other cash received from the equity method investment, additional cash investments, loan repayments or other cash paid to the investee are included in the Consolidated Statements of Cash Flows. The Company reviews its equity method investments for impairment on a periodic basis. If it has been determined that the fair value of the equity investment is less than its related carrying value and that this decline is other-than-temporary, the carrying value of the investment is adjusted downward to reflect these declines in value. The Company owns an interest in a joint venture, Discovery Family Channel (“the Network”), with Discovery Communications, Inc. (“Discovery”). The Company has determined that it does not meet the control requirements to consolidate the Network and accounts for the investment using the equity method of accounting. |
Property, Plant and Equipment, Net | Property, plant and equipment are stated at cost less accumulated depreciation. Depreciation is computed using accelerated and straight-line methods to depreciate the cost of property, plant and equipment over their estimated useful lives. The principal lives, in years, used in determining depreciation rates of various assets are: land improvements 15 to 19, buildings and improvements 15 to 25 and machinery and equipment (including computer hardware and software) 3 to 12. Depreciation expense is classified in the Consolidated Statements of Operations based on the nature of the property and equipment being depreciated. Tools, dies and molds are depreciated over their useful lives, which is generally three years, using an accelerated method. The Company generally owns all tools, dies and molds related to its products. Property, plant and equipment, net is reviewed for impairment whenever events or circumstances indicate the carrying value may not be recoverable. Recoverability is measured by a comparison of the carrying amount of the asset or related asset group to future undiscounted cash flows expected to be generated by the asset or asset group. If such assets are considered to be impaired, the impairment to be recognized would be measured by the amount by which the carrying value of the assets exceeds their fair value wherein the fair value is the appraised value. Furthermore, assets to be disposed of are carried at the lower of the net book value or their estimated fair value less disposal costs. |
Goodwill and Other Intangible Assets, Net | Goodwill results from acquisitions the Company has made over time. Substantially all of the Company's other intangible assets consist of the cost of acquired product rights. In establishing the value of such rights, the Company considers existing trademarks, copyrights, patents, license agreements and other product-related rights. These rights were valued on their acquisition dates based on the anticipated future cash flows from the underlying product lines. The Company has certain intangible assets related to the Tonka and Milton Bradley acquisitions that have indefinite lives. Goodwill and intangible assets deemed to have indefinite lives are not amortized and are tested for impairment at least annually. The annual goodwill test begins with a qualitative assessment, where qualitative factors and their impact on critical inputs are assessed to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value. If the Company determines that a reporting unit has an indication of impairment based on the qualitative assessment, a quantitative impairment assessment is performed. The Company's intangible assets having definite lives are being amortized over periods ranging from two The Company reviews intangible assets with definite lives for impairment whenever events or changes in circumstances indicate the carrying value may not be recoverable. Recoverability is measured by a comparison of the carrying amount of the asset to future undiscounted cash flows expected to be generated by the asset or asset group. If such assets were considered to be impaired, the impairment to be recognized would be measured by the amount by which the carrying value of the assets exceeds their fair value wherein that fair value is determined based on discounted cash flows. The Company's reporting units are determined in accordance with the provisions of Accounting Standards Codification (“ASC”) 350, “Intangibles - Goodwill and Other (Topic 350).” The Company performs its annual impairment testing of goodwill and definite-lived intangible assets during the fourth quarter of each year. See note 6 for additional information on the results of the Company’s impairment tests. |
Financial Instruments | Hasbro’s financial instruments include cash and cash equivalents, accounts receivable, short-term borrowings, accounts payable and certain accrued liabilities. As of December 31, 2023, the carrying cost of these instruments approximated their fair value. |
Production Financing | Production financing relates to financing facilities for certain of the Company's television and film productions. Production financing facilities are arranged on an individual production basis by either special purpose production subsidiaries, each secured by the assets and future revenues of such production subsidiaries, which are non-recourse to the Company's assets, or through a senior revolving credit facility obtained in November 2021, dedicated to production financing. These facilities typically have maturities of less than two years while the titles are in production, and are repaid once the production is delivered and all tax credits, broadcaster pre-sales and international sales have been received. In connection with the production of a television or film program, the Company records initial cash outflows within cash flows from operating activities due to its investment in the production and concurrently records cash inflows within cash flows from financing activities from the production financing it normally obtains. Under these facilities, certain of the Company's cash is restricted while the financing is outstanding. All of the Company's individual production loan and the senior revolving credit facility dedicated to production financing were assumed by Lionsgate effective upon the closing of the sale of the eOne Film and TV business in the fourth quarter of 2023. For further details, see notes 3 and 11. |
Revenue Recognition | Revenue is recognized when control of the promised goods, intellectual property or production is transferred to the customers or licensees, in an amount that reflects the consideration the Company expects to be entitled to in exchange for transferring those goods. The Company accounts for a contract when it has approval and commitment from both parties, the rights of the parties are identified, payment terms are identified, the contract has commercial substance, and collectability of consideration is probable. The majority of the Company’s revenues are derived from sales of finished products to customers. Revenues from sales of finished products to customers accounted for 75% , 76% and 74% of the Company’s revenues for the fiscal years ended 2023 , 2022 and 2021, respectively. When determining whether control of the finished products has transferred to the customer, the Company considers any future performance obligations. Generally, the Company has no post-shipment obligation on sales of finished products to customers and revenues from product sales are recognized upon passing of title to the customer, which is generally at the time of shipment. Any shipping and handling activities that are performed by the Company, whether before or after a customer has obtained control of the products, are considered activities to fulfill our obligation to transfer the products, and are recorded as incurred within selling, distribution, and administration expenses. The Company offers various discounts, rebates, allowances, returns, and markdowns to its customers (collectively, “allowances”), all of which are considered when determining the transaction price. Certain allowances are fixed and determinable at the time of sale and are recorded at the time of sale as a reduction to revenues. Other allowances can vary depending on future outcomes such as customer sales volume (“variable consideration”). The Company estimates the amount of variable consideration using the expected value method. In estimating the amount of variable consideration using the expected value method, the Company considers various factors including but not limited to: customer terms, historical experience, any expected deviations from historical experience, and existing or expected market conditions. The Company then records an estimate of variable consideration as a reduction to revenues at the time of sale. The Company adjusts its estimate of variable consideration at least quarterly or when facts and circumstances used in the estimation process may change. Historically, adjustments to estimated variable consideration have not been material. The Company enters into contracts to license its intellectual property, which consists of its brands, in various channels including but not limited to: consumer products such as apparel or home goods, within formats such as online and digital games, within venues such as theme parks, or within formats such as television and film. The licensees pay the Company either a sales-based or usage-based royalty, or a combination of both, for use of the brands, in some cases subject to minimum guaranteed amounts or fixed fees. The license of the Company’s brands provide access to the intellectual property over the term of the license, generally without any other performance obligation of the Company other than keeping the intellectual property active, and is therefore considered a right-to-access license of symbolic intellectual property. The Company records sales-based or usage-based royalty revenues for right-to-access licenses at the occurrence of the licensees’ subsequent sale or usage. When the arrangement includes a minimum guarantee, the Company records the minimum guarantee on a ratable basis over the term of the license period and does not record the sales-based or usage-based royalty revenues until they exceed the minimum guarantee. The Company also produces, sells and licenses television and film content for distribution to third parties in formats that include broadcast, digital streaming, transactional and theatrical. These are intellectual property licenses where the licensees pay either a fixed fee for the content license or a variable fee in the form of a sales based royalty. The content that the Company delivers to its licensees typically has stand-alone functionality, generally without any other performance obligation of the Company, and is therefore considered a right-to-use license of functional intellectual property. The Company records revenues for right-to-use licenses once the license period has commenced and the licensee has the ability to use the delivered content. In arrangements where the licensee pays the Company a fixed fee for multiple seasons or multiple series of programming, arrangement fees are recorded as revenues based upon their relative fair values. The Company also earns advertising revenues from certain content made available on free to consumer, streaming video on demand platforms where the Company earns a portion of the advertising revenues earned by the service provider. The performance obligation is met and revenue is recorded when the user accesses the Company’s content through the streaming platform. The Company develops and hosts digital games featuring its brands within the games, such as Magic: The Gathering Arena and D&D Beyond . The Company does not charge a fee to the end users for the download of the games or the ability to play the games. The end users make in-application purchases of virtual currencies, with such purchased virtual currencies to be used in the games. In addition, the Company offers a subscription service for D&D Beyond that provides access to a variety of added benefits, typically for a recurring monthly, semi-annual, or annual fee. The Company records revenues from in-application purchases based on either the usage patterns of the players or the player’s estimated life, depending on the nature of the game item purchased in exchange for virtual currency. For items recognized over the player's estimated life, the Company currently recognizes digital game's revenues ratably within six months of purchase, while revenue received from subscription services is recognized ratably over the subscription term. The Company controls all aspects of the digital goods delivered to the consumer. |
Costs of Sales | Cost of sales primarily consists of purchased materials, labor, tooling, manufacturing overheads and other inventory-related costs such as obsolescence. |
Investment in Productions and Acquired Content Rights and Program Cost Amortization | The Company incurs costs in connection with the production of television programming and live action movies. The majority of these costs are capitalized by the Company as they are incurred and amortized using the individual-film-forecast method, whereby these costs are amortized in the proportion that the current year’s revenues bear to management’s estimate of total ultimate revenues as of the beginning of such period related to the program. Ultimate revenue estimates are periodically reviewed and adjustments, if any, will result in changes to amortization rates and estimated accruals for residuals and participations. Ultimate revenue includes estimates over a period not to exceed ten years following the date of release of the production. Ultimate revenue used in amortization of acquired content rights is estimated over the life of the acquired rights but no longer than a period of ten years. These capitalized costs are reported at the lower of cost, less accumulated amortization, or fair value, and reviewed for impairment when an event or change in circumstances occurs that indicates that impairment may exist. The fair value is determined using a discounted cash flow model which is primarily based on management’s future revenue and cost estimates. Certain of these agreements require the Company to pay minimum guaranteed advances ("MGs") for participations and residuals. MGs are recognized in the Consolidated Balance Sheets when a liability arises, usually on delivery of the television or film program to the Company. The current portion of MGs are recorded as Payables and accrued liabilities and the long-term portion are recorded as Other liabilities. Substantially all of the Company’s non-Hasbro branded productions, and all of the Company's acquired content rights, were included with the eOne Film and TV business sold to Lionsgate in the fourth quarter of 2023. The Company retained all Hasbro-branded content and will continue to develop and produce animation, digital shorts, scripted TV and theatrical films for audiences related to core Hasbro IP. |
Royalties | The Company enters into license agreements with strategic partners, inventors, designers and others for the use of intellectual properties in its products. In addition, the Company enters into minimum guarantee royalty arrangements related to the purchase of film and television rights for content to be delivered in the future. These agreements may call for payment in advance or future payment of minimum guaranteed amounts. Amounts paid in advance are recorded as an asset and charged to expense when the related revenue is recognized in the Consolidated Statements of Operations. If all or a portion of the minimum guaranteed amounts appear not to be recoverable through future use of the rights obtained under the license, the non-recoverable portion of the guaranty is charged to expense at that time. |
Advertising | Production costs of commercials are expensed in the fiscal year during which the production is first aired. The costs of other advertising and promotion programs are expensed in the fiscal year incurred. |
Shipping and Handling | Hasbro expenses costs related to the shipment and handling of goods to customers as incurred. |
Operating Leases | The Company leases certain property, vehicles and other equipment through operating leases. Operating lease right-of-use assets are recorded within Property, Plant and Equipment and the related liabilities recorded within Accrued liabilities and Other liabilities on the Company’s Consolidated Balance Sheets. The Company has no material finance leases. Operating lease assets represent the Company’s right to use the underlying asset for the lease term and lease liabilities represent an obligation to make lease payments according to the terms of the lease. Operating lease assets and liabilities are recognized at the inception of the lease agreement based on the estimated present value |
Income Taxes | Hasbro uses the asset and liability approach for financial accounting and reporting of income taxes. Deferred income taxes reflect the net tax effect of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Deferred taxes are measured using rates expected to apply to taxable income in years in which those temporary differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. |
Foreign Currency Translation | Foreign currency assets and liabilities are translated into U.S. dollars at period-end exchange rates, and revenues, costs and expenses are translated at weighted average exchange rates during each reporting period. Net earnings include gains or losses resulting from foreign currency transactions and, when required, translation gains and losses resulting from the use of the U.S. dollar as the functional currency in highly inflationary economies. Other gains and losses resulting from translation of financial statements are a component of Other comprehensive earnings (loss). |
Pension Plans, Postretirement and Postemployment Benefits | Pension expense and related amounts in the Consolidated Balance Sheets are based on actuarial computations of current and future benefits. Actual results that differ from the actuarial assumptions are accumulated and, if outside a certain corridor, amortized over future periods and, therefore affect recognized expense in future periods. The corridor used for this purpose is equal to 10% of the greater of plan liabilities or market asset values, and future periods vary by plan, but generally equal the actuarially determined average expected future working lifetime of active plan participants. The Company’s policy is to fund amounts which are required by applicable regulations and which are tax deductible. The estimated amounts of future payments to be made under other retirement programs are being accrued currently over the period of active employment and are also included in pension expense. Hasbro has a contributory postretirement health and life insurance plan covering substantially all employees who retired under any of its United States defined benefit pension plans prior to January 1, 2020, and meet certain age and length of service requirements. During the fourth quarter of 2019, with the approval of the Compensation Committee of the Company's Board of Directors, the Company announced the elimination of the contributory post-retirement health and life insurance coverage for employees whose retirement eligibility begins after December 31, 2019. See note 16 for further discussion. The cost of providing these benefits on behalf of employees who retired prior to 1993 has been substantially borne by the Company. The cost of providing benefits on behalf of eligible employees who retire after 1992 is borne by the employee. The Company also has several plans covering certain groups of employees, which may provide benefits to such employees following their period of employment but prior to their retirement. The Company measures the costs of these obligations based on actuarial computations. |
Stock-Based Compensation | The Company has a stock-based employee compensation plan for employees and non-employee members of the Company’s Board of Directors. Under this plan the Company may grant stock options at or above the fair market value of the Company’s stock, as well as restricted stock, restricted stock units and contingent stock performance awards. All awards are measured at fair value at the date of the grant and amortized as expense on a straight-line basis over the requisite service period of the award. For awards contingent upon Company performance, the measurement of the expense for these awards is based on the Company’s current estimate of its performance over the performance period. |
Dividend Equivalent Units | Beginning with employee stock incentive awards granted in 2022, the payment of cash dividends to shareholders also results in the crediting of Dividend Equivalent Units (“DEUs”) to holders of restricted stock units ("RSUs") and contingent stock performance awards ("PSUs") granted under the Company's Restated 2003 Stock Incentive Plan, as amended, for employees as defined and described in note 15. The DEUs are credited as additional RSUs or PSUs and settled concurrently with the vesting of associated awards. DEUs are forfeited in the event the underlying RSUs or PSU's do not vest. The dividend equivalent value of forfeitable DEUs is treated as a reduction of retained earnings or, if the Company is in a retained deficit position, as a reduction of additional paid-in capital. |
Risk Management Contracts | Hasbro uses foreign currency forward and option 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 purchases of inventory, product sales, as well as other cross-border currency requirements not denominated in the functional currency of the business unit, are primarily denominated in United States, Canadian and Hong Kong dollars as well as Euros and British pound sterling. 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 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. At the inception of the contracts, Hasbro designates its derivatives as either cash flow or fair value hedges. The Company formally documents all relationships between hedging instruments and hedged items as well as its risk management objectives and strategies for undertaking various hedge transactions. All hedges designated as cash flow hedges are linked to forecasted transactions and the Company assesses, both at the inception of the hedge and on an on-going basis, the effectiveness of the derivatives used in hedging transactions in offsetting changes in the cash flows of the forecasted transaction. The Company records all derivatives, such as foreign currency exchange contracts, on the Consolidated Balance Sheets at fair value. Changes in the derivative fair values that are designated as cash flow hedges are deferred and recorded as a component of Accumulated other comprehensive loss (“AOCE”) until the hedged transactions occur and are then recognized in the Consolidated Statements of Operations. The Company’s foreign currency contracts hedging anticipated cash flows are designated as cash flow hedges. When it is determined that a derivative is not highly effective as a hedge, the Company discontinues hedge accounting prospectively. Any gain or loss deferred through that date remains in AOCE until the forecasted transaction occurs, at which time it is reclassified to the Consolidated Statements of Operations. To the extent the transaction is no longer deemed probable of occurring, hedge accounting treatment is discontinued and amounts deferred would be reclassified to the Consolidated Statements of Operations. In the event hedge accounting requirements are not met, gains and losses on such instruments are included in the Consolidated Statements of Operations. The Company uses derivatives to economically hedge intercompany loans denominated in foreign currencies. The Company does not use hedge accounting for these contracts as changes in the fair value of these contracts are substantially offset by changes in the fair value of the intercompany loans. Prior to the issuance of certain long-term Notes due 2021 and 2044, the Company entered into a forward-starting interest rate swap contract to hedge the anticipated U.S. Treasury interest rates on the anticipated debt issuance. These instruments, which were designated and effective as hedges, were terminated on the date of the related debt issuance and the then fair value of these instruments was recorded to AOCE and amortized through the Consolidated Statements of Operations using an effective interest rate method over the life of the related debt. |
Net Earnings Per Common Share | Basic net earnings per share is computed by dividing net earnings by the weighted average number of shares outstanding for the year as well as awards that have not been issued but all contingencies have been met. Diluted net earnings per share is similar except that the weighted average number of shares outstanding is increased by dilutive securities, and net earnings are adjusted, if necessary, for certain amounts related to dilutive securities. Dilutive securities include shares issuable upon exercise of stock options for which the market price exceeds the exercise price, less shares which could have been purchased by the Company with the related proceeds. Dilutive securities also include shares issuable under restricted stock unit award agreements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Schedule of Redeemable Noncontrolling Interests and Non-Redeemable Noncontrolling Interests | The Company's remaining non-redeemable noncontrolling interests as of December 31, 2023 is shown below. Name Country of Incorporation Ownership Interest Proportion Held Principal Activity Astley Baker Davies Limited England and Wales Nonredeemable 70% Ownership of intellectual property |
Summary of Reconciliation of Net Earnings per Share and Average Number of Shares | A reconciliation of net earnings and average number of shares for each of the three fiscal years ended December 31, 2023 is as follows: 2023 2022 2021 (In millions, except per share data) Basic Diluted Basic Diluted Basic Diluted Net earnings (loss) attributable to Hasbro, Inc. $ (1,489.3) (1,489.3) 203.5 203.5 428.7 428.7 Average shares outstanding 138.8 138.8 138.7 138.7 138.0 138.0 Effect of dilutive securities: Options and other share-based awards — — — 0.2 — 0.4 Equivalent shares 138.8 138.8 138.7 138.9 138.0 138.4 Net earnings (loss) per share attributable to Hasbro, Inc. $ (10.73) (10.73) 1.47 1.46 3.11 3.10 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Contract Assets and Liabilities | The change in the carrying amount of contract assets and liabilities for the year ended December 31, 2023 is as follows: (In millions) December 31, 2023 Assets Balance at beginning of the year $ 594.4 Recognized in current year 478.6 Amounts reclassified (1) (474.2) Assets disposed (2) (402.3) Foreign currency impact 16.8 Ending Balance $ 213.3 Liabilities Balance at beginning of the year $ 113.0 Recognized in current year 460.1 Amounts in beginning balance reclassified to revenue (89.9) Current year amounts reclassified to revenue (224.3) Liabilities disposed (1) (25.8) Foreign currency impact (2.3) Ending Balance $ 230.8 (1) These amounts are primarily related to balances reclassified to Accounts receivable. (2) See note 3 for additional information on the sale of the eOne film and TV business. |
Sale of Non-core Entertainmen_2
Sale of Non-core Entertainment One Film and TV Business (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Summary of Major Classes of Assets and Liabilities Held for Sale | The following table presents the carrying amounts of the major classes of eOne Film and TV assets and liabilities sold on December 27, 2023: (In millions) December 27, 2023 Assets sold: Cash and cash equivalents $ 54.1 Accounts receivable 87.9 Inventories 2.4 Other current assets 402.6 Property, plant and equipment 54.0 Other assets 885.0 Total assets sold $ 1,486.0 Liabilities sold: Short-term borrowings $ 100.0 Current portion of long-term debt 5.8 Accounts payable and accrued liabilities 375.9 Long-term debt 0.8 Other liabilities 59.5 Total liabilities sold $ 542.0 The following table summarizes loss before income taxes attributable to eOne Film and TV through the date of the transaction: (In millions) 2023 (1) 2022 2021 eOne Film and TV loss before income taxes $ (371.6) $ (7.3) $ (10.3) (1) Income before taxes includes operating results prior to the close of the sale of the Film and TV Business on December 27, 2023. |
Other Comprehensive Earnings _2
Other Comprehensive Earnings (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
Schedule of Other Comprehensive Earnings (Loss), Tax Effect | The following table presents the related tax effects on changes in other comprehensive earnings (loss) for each of the three fiscal years ended December 31, 2023. (In millions) 2023 2022 2021 Other comprehensive earnings (loss), tax effect: Tax benefit on unrealized holding gains $ — 0.1 — Tax benefit (expense) on cash flow hedging activities 2.8 (1.3) (1.0) Tax expense on foreign currency translation amounts — — (7.2) Tax expense on changes in unrecognized pension amounts — (5.9) (1.5) Reclassifications to earnings, tax effect: Tax (benefit) expense on cash flow hedging activities (1.9) 1.6 (0.5) Tax expense (benefit) on amortization of unrecognized pension and postretirement amounts reclassified to the consolidated statements of operations 0.1 (0.3) (0.6) Total tax effect on other comprehensive earnings (loss) $ 1.0 (5.8) (10.8) |
Schedule of Accumulated Other Comprehensive Loss | Changes in the components of accumulated other comprehensive loss, net of tax for each of the three fiscal years ended December 31, 2023 are as follows: (In millions) Pension and Gains Unrealized Foreign Total 2023 Balance at December 25, 2022 $ (3.0) (12.0) (0.1) (239.8) (254.9) Current period other comprehensive earnings (loss) (0.3) (8.6) — 59.4 50.5 Reclassifications from AOCE to earnings (0.9) 3.8 — — 2.9 Balance at December 31, 2023 $ (4.2) (16.8) (0.1) (180.4) (201.5) 2022 Balance at December 26, 2021 $ (35.1) (6.0) 0.2 (194.4) (235.3) Current period other comprehensive earnings (loss) 30.8 10.2 (0.3) (45.4) (4.7) Reclassifications from AOCE to earnings 1.3 (16.2) — — (14.9) Balance at December 25, 2022 $ (3.0) (12.0) (0.1) (239.8) (254.9) 2021 Balance at December 27, 2020 $ (40.7) (22.1) 0.3 (132.5) (195.0) Current period other comprehensive earnings (loss) 3.4 13.5 (0.1) (61.9) (45.1) Reclassifications from AOCE to earnings 2.2 2.6 — — 4.8 Balance at December 26, 2021 $ (35.1) (6.0) 0.2 (194.4) (235.3) |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Summary of Components of Property, Plant and Equipment | (In millions) 2023 2022 Land and improvements $ 3.5 3.1 Buildings and improvements 225.9 221.1 Machinery, equipment and software 706.7 672.4 936.1 896.6 Less accumulated depreciation 618.9 654.5 317.2 242.1 Tools, dies and molds, net of accumulated depreciation 44.7 62.4 361.9 304.5 Right of use assets 208.4 239.6 Less accumulated depreciation 81.7 121.3 Total property, plant and equipment, net $ 488.6 422.8 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | Changes in the carrying amount of goodwill, by operating segment, for the years ended December 31, 2023 and December 25, 2022 are as follows: (In millions) Consumer Products Wizards of the Coast and Digital Gaming Entertainment Total 2023 Balance at December 25, 2022 $ 1,584.7 371.5 1,513.9 3,470.1 Impairment during the period — — (1,191.2) (1,191.2) Foreign exchange translation (2.4) 0.2 2.5 0.3 Balance at December 31, 2023 $ 1,582.3 371.7 325.2 2,279.2 2022 Balance at December 26, 2021 $ 1,584.9 307.3 1,527.4 3,419.6 Acquired during the period — 64.7 — 64.7 Impairment during the period — — (11.8) (11.8) Foreign exchange translation (0.2) (0.5) (1.7) (2.4) Balance at December 25, 2022 $ 1,584.7 371.5 1,513.9 3,470.1 |
Schedule of Finite-Lived Intangible Assets | The following table represents a summary of the Company’s other intangible assets, net at December 31, 2023 and December 25, 2022: (In millions) 2023 2022 Acquired product rights $ 1,763.8 2,112.1 Licensed rights of entertainment properties 45.0 45.0 Impairment (116.0) (281.0) Accumulated amortization (1,181.0) (1,137.2) Amortizable intangible assets 511.8 738.9 Product rights with indefinite lives 75.7 75.7 Total other intangibles assets, net $ 587.5 814.6 |
Schedule of Indefinite-Lived Intangible Assets | The following table represents a summary of the Company’s other intangible assets, net at December 31, 2023 and December 25, 2022: (In millions) 2023 2022 Acquired product rights $ 1,763.8 2,112.1 Licensed rights of entertainment properties 45.0 45.0 Impairment (116.0) (281.0) Accumulated amortization (1,181.0) (1,137.2) Amortizable intangible assets 511.8 738.9 Product rights with indefinite lives 75.7 75.7 Total other intangibles assets, net $ 587.5 814.6 |
Schedule of Expected Amortization Expense | The Company currently estimates amortization expense related to the above intangible assets for the next five years to be approximately: (In millions) 2024 $ 68.1 2025 65.5 2026 57.6 2027 57.6 2028 57.5 |
Investments in Productions an_2
Investments in Productions and Investments in Acquired Content Rights (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Other Industries [Abstract] | |
Schedule of Programming Costs | Programming costs are included in Other assets and consist of the following at December 31, 2023 and December 25, 2022: (In millions) 2023 (1) 2022 Investment in Films and Television Programs: Individual monetization Released, net of amortization $ 74.7 584.5 Completed and not released 5.1 23.3 In production 27.1 199.4 Pre-production 10.4 41.3 117.3 848.5 Film/TV group monetization Released, net of amortization 26.0 25.8 In production 23.6 22.2 49.6 48.0 Investment in other programming: Released, net of amortization 16.1 9.8 In production 0.8 11.8 Pre-production 0.8 3.3 17.7 24.9 Total program investments $ 184.6 921.4 (1) Investments in productions and investments in acquired content totaling $734.8 million have been removed from the Company's balance sheet as of December 31, 2023, in connection with the sale of the eOne Film and TV business completed on December 27, 2023. See note 3 for additional information. |
Summary of Program Cost Amortization | The Company recorded $448.9 million of program cost amortization related to released programming during 2023, consisting of the following: (In millions) Investment in Production Investment in Content Total Program cost amortization $ 400.7 48.2 448.9 Based on management’s total revenue estimates as of December 31, 2023, the Company's expected future amortization expenses for capitalized programming costs over the next three years are as follows: (In millions) 2024 2025 2026 Estimated Future Amortization Expense: Individual monetization Released $ 10.1 11.6 6.4 Film/TV group monetization Released 15.4 16.7 25.2 Total $ 25.5 28.3 31.6 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Accrued Liabilities, Current [Abstract] | |
Schedule of Accrued Liabilities | Components of accrued liabilities for the fiscal years ended on December 31, 2023 and December 25, 2022 are as follows: (In millions) 2023 2022 Royalties $ 286.8 195.4 Cancellation charges 118.9 89.2 Deferred revenue 101.6 111.3 Dividends 97.2 96.7 Payroll and management incentives 85.6 66.7 Severance 83.7 100.3 Other taxes 68.7 82.1 Accrued income taxes 61.6 44.8 General vendor accruals 51.9 44.3 Advertising 45.0 53.2 Participations and residuals 34.0 300.2 Current lease liability 30.5 39.6 Interest 29.9 31.0 Defined contribution plans 29.7 30.0 Freight 22.9 28.5 Insurance 13.3 11.0 Professional fees 12.4 13.6 Accrued expenses IIC & IIP 0.7 80.8 Other 41.4 88.1 Total accrued liabilities $ 1,215.8 1,506.8 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | Components of Long-term debt for the fiscal years ended on December 31, 2023 and December 25, 2022 are as follows: (In millions) 2023 2022 Carrying Fair Value Carrying Fair Value 3.90% Notes Due 2029 $ 900.0 839.8 900.0 808.2 3.55% Notes Due 2026 675.0 641.0 675.0 635.3 3.00% Notes Due 2024 500.0 488.4 500.0 482.2 6.35% Notes Due 2040 500.0 520.1 500.0 498.4 3.50% Notes Due 2027 500.0 472.2 500.0 465.8 5.10% Notes Due 2044 300.0 271.6 300.0 261.1 6.60% Debentures Due 2028 109.9 116.0 109.9 112.1 Variable % Notes Due December 30, 2024 (1) — — 310.0 310.0 Production Financing Facilities (2) — — 53.2 53.2 Total long-term debt 3,484.9 3,349.1 3,848.1 3,626.3 Less: Deferred debt expenses 19.1 — 23.7 — Less: Current portion 500.0 — 113.2 — Long-term debt $ 2,965.8 3,349.1 3,711.2 3,626.3 (1) During the fourth quarter of 2023, the Company paid the remaining principal balance of $250.0 million of the Variable % Notes Due December 30, 2024. (2) The Company's production financing facilities were assumed by Lionsgate effective upon the closing the sale of the eOne Film and TV business in the fourth quarter of 2023. See note 3 for additional information. |
Summary of Contractual Obligation, Fiscal Year Maturity | The Company's long-term borrowings have the following future contractual maturities: Future long-term borrowings contractual payments (In millions) 2024 $ 500.0 2025 — 2026 675.0 2027 500.0 2028 109.9 2029 and thereafter 1,700.0 $ 3,484.9 |
Schedule of Movements in Production Financing and Other Related Loans | The following table represents the movements in production financing loans during 2023: (In millions) Production Financing December 25, 2022 $ 195.6 Drawdowns 117.4 Repayments (206.7) Removed with sale of eOne film and TV (1) (105.8) Foreign exchange differences (0.5) Balance at December 31, 2023 $ — (1) See note 3 for additional information on the sale of the eOne Film and TV business. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Earnings (Loss) Before Income Taxes, Determined by Tax Jurisdiction | The components of Earnings (loss) before income taxes, determined by tax jurisdiction, are as follows: (In millions) 2023 2022 2021 United States $ (356.9) 17.0 236.8 International (1,352.2) 244.5 345.1 Total earnings (loss) before income taxes $ (1,709.1) 261.5 581.9 |
Schedule of Income Taxes Attributable to Earnings (Loss) Before Income Taxes | Income taxes attributable to Earnings (loss) before income taxes are: (In millions) 2023 2022 2021 Current United States $ (29.0) 85.9 52.3 State and local (6.4) 18.0 15.4 International 57.6 84.7 50.1 22.2 188.6 117.8 Deferred United States (36.3) (105.7) 7.1 State and local (3.0) (16.6) (0.3) International (204.2) (7.8) 22.0 (243.5) (130.1) 28.8 Total income (benefit) taxes $ (221.3) 58.5 146.6 |
Schedule of Effective Income Tax Rate Reconciliation | A reconciliation of the statutory United States federal income tax rate to Hasbro’s effective income tax rate is as follows: 2023 2022 2021 Statutory income tax rate 21.0 % 21.0 % 21.0 % State and local income taxes, net 0.5 1.2 1.5 Tax on international earnings 6.7 (4.0) (1.1) Domestic tax on foreign earnings 1.3 (6.5) (1.7) Change in unrecognized tax benefits (0.3) 3.1 (3.4) U.S. capital loss 22.0 — — Change in valuation allowance (23.3) 9.7 (1.6) Share-based compensation (0.3) 1.4 (0.6) Research and development tax credits 0.3 (3.5) (1.1) Deferred tax rate change — — 6.5 Officers' compensation (0.3) 1.9 1.9 Loss on disposal of business (3.4) 1.5 3.9 Goodwill impairments (11.8) — — Other, net 0.5 (3.4) (0.1) 12.9 % 22.4 % 25.2 % |
Schedule of Deferred Tax Assets and Liabilities | The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities as of December 31, 2023 and December 25, 2022 are as follows: (In millions) 2023 2022 Deferred tax assets: Accounts receivable $ 31.8 28.8 Inventories 33.2 22.6 Loss and credit carryforwards 461.9 175.3 Operating leases 3.5 11.2 Operating expenses 19.1 29.9 Pension 6.9 9.1 Other compensation 46.4 50.7 Postretirement benefits 5.9 5.7 Interest rate hedge 4.8 4.5 Tax sharing agreement 0.3 0.3 Deferred revenue 0.4 4.4 Capitalized research and experimentation 100.6 81.2 Depreciation and amortization of long-lived assets 192.0 63.2 Interest expense limitation 28.7 — Other 3.7 11.7 Gross deferred tax assets 939.2 498.6 Deferred tax liabilities: Depreciation and amortization of long-lived assets 108.0 125.0 Equity method investment 19.0 14.9 Operating leases 1.1 9.3 Prepaid expenses 4.0 4.4 Other 22.8 15.4 Gross deferred tax liabilities 154.9 169.0 Valuation allowance (432.0) (189.8) Net deferred income taxes $ 352.3 139.8 |
Schedule of Deferred Tax Assets and Liabilities by Balance Sheet Location | As of December 31, 2023 and December 25, 2022, the Company’s net deferred income taxes are recorded in the Consolidated Balance Sheets as follows: (In millions) 2023 2022 Other assets $ 427.9 262.1 Other liabilities (75.6) (122.3) Net deferred income taxes $ 352.3 139.8 |
Schedule of Unrecognized Tax Benefits Roll Forward | A reconciliation of unrecognized tax benefits, excluding potential interest and penalties, for the fiscal years ended 2023, 2022, and 2021 is as follows: (In millions) 2023 2022 2021 Balance at beginning of year $ 77.8 50.6 67.8 Gross increases in prior period tax positions 11.9 0.9 0.6 Gross decrease from disposition (10.4) — — Gross decreases in prior period tax positions (23.4) (0.2) (12.0) Gross increases in current period tax positions 3.8 28.6 4.6 Decrease related to settlements with tax authorities (8.4) — (2.7) Decreases from the expiration of statute of limitations (11.4) (2.1) (7.7) Balance at end of year $ 39.9 77.8 50.6 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Summary of Fair Value Hierarchy | As of December 31, 2023 and December 25, 2022, 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 (In millions) Fair Quoted Significant Significant December 31, 2023 Assets: Available-for-sale securities $ 1.1 1.1 — — Derivatives 0.7 — 0.7 — Total assets $ 1.8 1.1 0.7 — Liabilities: Derivatives $ 3.9 — 3.9 — Option agreement 1.7 — — 1.7 Total liabilities $ 5.6 — 3.9 1.7 December 25, 2022 Assets: Available-for-sale securities $ 1.7 1.7 — — Derivatives 7.9 — 7.9 — Total assets $ 9.6 1.7 7.9 — Liabilities: Derivatives $ 2.9 — 2.9 — Option agreement 1.7 — — 1.7 Total liabilities $ 4.6 — 2.9 1.7 |
Summary of 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): (In millions) 2023 2022 Balance at beginning of year $ (1.7) (1.7) Balance at end of year $ (1.7) (1.7) |
Stock Options, Other Stock Aw_2
Stock Options, Other Stock Awards and Warrants (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Total Compensation Expense Related to Stock Options, Restricted Stock Units and Stock Performance Awards | Total compensation expense related to stock options, restricted stock units, including those awards made to non-employee members of its Board of Directors, and stock performance awards for the years ended December 31, 2023, December 25, 2022 and December 26, 2021 was $71.9 million, $81.3 million and $97.8 million, respectively, and was recorded as follows: (In millions) 2023 2022 2021 Product development $ 7.0 4.8 3.7 Selling, distribution and administration 64.9 76.5 94.1 Total stock compensation expense before income taxes 71.9 81.3 97.8 Income tax benefit 9.2 9.0 10.2 Total stock compensation expense after income taxes $ 62.7 72.3 87.6 The following table represents total stock compensation expense, net of performance adjustments, by award type related to stock performance awards, restricted stock units, stock options and awards made to non-employee members of the Company’s Board of Directors, for the years ended December 31, 2023, December 25, 2022 and December 26, 2021: (In millions) 2023 2022 2021 Stock performance awards $ 15.8 9.6 26.9 Restricted stock units 47.8 60.7 50.9 Stock options 7.0 8.9 18.4 Non-employee awards 1.3 2.1 1.6 Total stock compensation expense before income taxes 71.9 81.3 97.8 Income tax benefit 9.2 9.0 10.2 Total compensation expense after income taxes $ 62.7 72.3 87.6 |
Schedule of Stock Performance Awards | Information with respect to Stock Performance Awards for 2023, 2022 and 2021 is as follows: (In millions, except per share data) 2023 2022 2021 Outstanding at beginning of year 0.8 0.7 0.6 Granted 0.7 0.4 0.2 Forfeited (0.2) (0.1) — Canceled (0.1) — (0.1) Vested (0.2) (0.2) — Outstanding at end of year 1.0 0.8 0.7 Weighted average grant-date fair value: Granted $ 56.00 88.77 96.06 Forfeited $ 74.06 80.77 — Canceled $ 56.49 — 77.33 Vested $ 56.49 86.90 — Outstanding at end of year $ 70.15 78.15 75.74 |
Schedule of Restricted Stock Awards and Restricted Stock Units | Information with respect to the remaining Restricted Stock Awards and Restricted Stock Units for 2023, 2022 and 2021 is as follows: (In millions, except per share data) 2023 2022 2021 Outstanding at beginning of year 1.2 1.1 1.0 Granted 1.2 0.7 0.7 Forfeited (0.2) (0.1) (0.1) Vested (0.6) (0.5) (0.5) Outstanding at end of year 1.6 1.2 1.1 Weighted average grant-date fair value: Granted $ 56.80 86.41 91.06 Forfeited $ 74.22 91.18 85.88 Vested $ 90.32 91.33 91.42 Outstanding at end of year $ 66.08 88.85 91.78 |
Schedule of Stock Option Information | Information with respect to stock options for each of the three fiscal years ended December 31, 2023 is as follows: (In millions, except per share data) 2023 2022 2021 Outstanding at beginning of year 1.8 2.9 2.8 Granted 1.4 0.6 0.6 Exercised — (0.8) (0.5) Expired or forfeited (0.9) (0.9) — Outstanding at end of year 2.3 1.8 2.9 Exercisable at end of year 0.9 0.8 2.1 Weighted average exercise price: Granted $ 55.92 94.89 90.31 Exercised $ — 85.60 65.12 Expired or forfeited $ 81.22 97.16 95.59 Outstanding at end of year $ 75.24 93.62 92.15 Exercisable at end of year $ 93.96 92.95 92.05 |
Schedule of Share-based Payment Award, Stock Option, Valuation Assumptions | The fair value of each option grant is estimated on the date of grant using the Black-Scholes option pricing model with the following weighted average assumptions used for grants in the fiscal years 2023, 2022 and 2021: 2023 2022 2021 Risk-free interest rate 4.44 % 1.79 % 0.50 % Expected dividend yield 4.95 % 2.95 % 3.01 % Expected volatility 38 % 37 % 38 % Expected option life 3 years 4 years 4 years |
Pension, Postretirement and P_2
Pension, Postretirement and Postemployment Benefits (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Retirement Benefits [Abstract] | |
Summary of Changes in Projected Benefit Obligation, Plan Assets and Funded Status | Reconciliations of the beginning and ending balances for the projected benefit obligation, the fair value of plan assets and the funded status are included below for the years ended December 31, 2023 and December 25, 2022. Pension Postretirement (In millions) 2023 2022 2023 2022 Change in Projected Benefit Obligation Projected benefit obligation — beginning $ 30.3 41.6 19.6 28.1 Interest cost 1.6 1.1 1.1 0.8 Actuarial loss (gain) 1.5 (9.3) 1.1 (7.6) Benefits paid (3.3) (3.1) (1.6) (1.7) Plan amendments — — — — Projected benefit obligation — ending $ 30.1 30.3 20.2 19.6 Accumulated benefit obligation — ending $ 30.1 30.3 20.2 19.6 Change in Plan Assets Fair value of plan assets — beginning $ — — — — Fair value of plan assets — ending $ — — — — Reconciliation of Funded Status Projected benefit obligation $ (30.1) (30.3) (20.2) (19.6) Fair value of plan assets — — — — Funded status (30.1) (30.3) (20.2) (19.6) Unrecognized prior service cost (credit) — — (0.6) (0.9) Unrecognized net loss (earnings) 4.6 3.2 (2.6) (3.8) Net amount $ (25.5) (27.1) (23.4) (24.3) Accrued liabilities $ (3.0) (3.0) (1.5) (1.5) Other liabilities (27.1) (27.3) (18.7) (18.0) Accumulated other comprehensive (earnings) loss 4.6 3.2 (3.2) (4.8) Net amount $ (25.5) (27.1) (23.4) (24.3) |
Assumptions used to determine year-end pension and postretirement benefit obligations | Assumptions used to determine the year-end pension and postretirement benefit obligations are as follows: 2023 2022 Pension Weighted average discount rate 5.23 % 5.61 % Mortality table PriH-2012/Scale PriH-2012/Scale Postretirement Discount rate 5.20 % 5.58 % Health care cost trend rate assumed for next year 6.75 % 7.00 % Rate to which the cost trend rate is assumed to decline (ultimate trend rate) 5.00 % 5.00 % Year that the rate reaches the ultimate trend 2031 2031 |
Components of Net Periodic Benefit Cost | The following presents detail of the components of the net periodic benefit cost for the three years ended December 31, 2023. (In millions) 2023 2022 2021 Components of Net Periodic Cost Pension Service cost $ — — — Interest cost 1.6 1.1 1.1 Expected return on assets — — — Amortization of actuarial loss — 0.8 1.0 Curtailment/Settlement losses — — 0.5 Net periodic benefit cost $ 1.6 1.9 2.6 Postretirement Interest cost $ 1.1 0.8 0.8 Amortization of service cost (0.3) (0.3) — Amortization of actuarial loss (0.2) 0.1 — Net periodic benefit cost $ 0.6 0.6 0.8 |
Assumptions Used to Determine Net Periodic Benefit Cost of Pension Plan and Postretirement Plan | Assumptions used to determine net periodic benefit cost of the pension plan and postretirement plan for each fiscal year follow: 2023 2022 2021 Pension Weighted average discount rate 5.61 % 2.91 % 2.51 % Long-term rate of return on plan assets N/A N/A N/A Postretirement Discount rate 5.58 % 3.03 % 2.72 % Health care cost trend rate assumed for next year 7.00 % 6.00 % 6.25 % Rate to which the cost trend rate is assumed to decline (ultimate trend rate) 5.00 % 5.00 % 5.00 % Year that the rate reaches the ultimate trend rate 2031 2025 2025 |
Schedule of Expected Benefit Payments | Expected benefit payments under the defined benefit pension plans and the postretirement benefit plan for the next five years subsequent to 2023 and in the aggregate for the following five years are as follows: (In millions) Pension Postretirement 2024 $ 3.1 $ 1.6 2025 3.0 1.6 2026 2.9 1.5 2027 2.8 1.5 2028 2.7 1.5 2029-2033 12.0 6.8 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Summary of Lease Cost | Information related to the Company's leases for the years ended December 31, 2023 and December 25, 2022 is as follows: Year Ended Year Ended Year Ended (In millions) December 31, 2023 December 25, 2022 December 26, 2021 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 48.6 52.4 53.4 Right-of-use assets obtained in exchange for lease obligations: Operating leases net of lease modifications $ 87.8 5.8 28.4 Weighted Average Remaining Lease Term: Operating leases 7.1 years 4.4 years 5.6 years Weighted Average Discount Rate: Operating leases 3.8 % 3.4 % 3.0 % |
Summary of Maturities of Operating Lease Liabilities | The following is a reconciliation of future undiscounted cash flows to the operating liabilities, and the related right of use assets, included in our Consolidated Balance Sheets as of December 31, 2023: Year Ended (In millions) December 31, 2023 2024 $ 45.2 2025 40.3 2026 33.0 2027 22.8 2028 18.2 2029 and thereafter 52.5 Total future lease payments 212.0 Less imputed interest 60.4 Present value of future operating lease payments 151.6 Less current portion of operating lease liabilities (1) 30.5 Non-current operating lease liability (2) 121.1 Operating lease right-of-use assets, net (3) $ 126.7 (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 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Summary of Cash Flow Hedging Instruments | As of December 31, 2023 and December 25, 2022, the notional amounts and fair values of the Company’s foreign currency forward and option contracts designated as cash flow hedging instruments were as follows: 2023 2022 (In millions) Notional Fair Notional Fair Hedged transaction Inventory purchases $ 129.9 (1.7) 166.3 (2.7) Sales 89.7 (0.2) 99.2 1.2 Production financing and other 31.7 (0.5) 116.8 1.5 Total $ 251.3 (2.4) 382.3 — |
Schedule of Cash Flow Hedging Instruments, Statements of Financial Performance and Financial Position, Location | The fair values of the Company’s foreign currency forward contracts designated as cash flow hedges are recorded in the Consolidated Balance Sheets at December 31, 2023 and December 25, 2022 as follows: (In millions) 2023 2022 Prepaid expenses and other current assets Unrealized gains $ 0.5 4.3 Unrealized losses (0.1) (1.8) Net unrealized gains $ 0.4 2.5 Other assets Unrealized gains $ — 0.3 Unrealized losses — — Net unrealized gains $ — 0.3 Accrued liabilities Unrealized gains $ 0.7 1.6 Unrealized losses (3.5) (4.4) Net unrealized losses $ (2.8) (2.8) |
Schedule of Derivative Instruments, Gain (Loss) in Statement of Operations | Net gains (losses) on cash flow hedging activities have been reclassified from other comprehensive earnings (loss) to net earnings for the years ended December 31, 2023, December 25, 2022 and December 26, 2021 as follows: (In millions) 2023 2022 2021 Consolidated Statements of Operations Classification Cost of sales $ (1.1) 17.3 (4.7) Net revenues 0.2 2.3 1.0 Other (2.2) (0.9) 2.0 Net realized (losses) gains $ (3.1) 18.7 (1.7) |
Summary of Fair Values of Undesignated Derivative Financial Instruments | As of December 31, 2023 and December 25, 2022, the fair value of the Company’s undesignated derivative financial instruments are recorded in the Consolidated Balance Sheets as follows: (In millions) 2023 2022 Prepaid expenses and other current assets Unrealized gains $ 0.3 10.9 Unrealized losses — (5.9) Net unrealized gains $ 0.3 5.0 Accrued liabilities Unrealized gains $ 1.4 — Unrealized losses (2.5) — Net unrealized losses $ (1.1) — Total unrealized (losses) gains, net $ (0.8) 5.0 |
Restructuring Actions (Tables)
Restructuring Actions (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Restructuring Charges [Abstract] | |
Schedule of Changes in Restructuring Reserves | As of December 31, 2023, the liability balance associated with Program related restructuring actions consisted of severance payments recorded within Other accrued liabilities in the Consolidated Balance Sheets as follows: (In millions) Total Operational Excellence: Balance at December 25, 2022 84.9 2023 charges 38.2 2023 payments (41.9) Balance at December 31, 2023 81.2 |
Schedule of Restructuring and Related Costs | The following table presents the restructuring charges incurred to date under the Program, along with the estimated charges expected to be incurred on approved initiatives under the plan as of December 31, 2023: (In millions) Total Operational Excellence: Charges incurred to date 132.3 Estimated charges to be incurred on approved initiatives — Total expected charges on approved initiatives 132.3 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Information and Reconciliation by Segment | Information by segment and a reconciliation to reported amounts are as follows: (In millions) Revenues Affiliate Depreciation Capital Total 2023 Consumer Products (a) $ 2,886.4 279.9 130.0 60.0 6,456.2 Wizards of the Coast and Digital Gaming 1,457.6 183.6 27.8 122.5 4,340.5 Entertainment (a)(b) 659.3 51.8 28.5 0.4 3,507.7 Corporate and Other (b) — (515.3) 24.4 26.4 (7,763.5) Consolidated Total $ 5,003.3 — 210.7 209.3 6,540.9 2022 Consumer Products (a) $ 3,572.5 396.7 152.5 87.0 5,757.7 Wizards of the Coast and Digital Gaming 1,325.1 172.5 14.6 52.5 2,968.7 Entertainment (a)(b) 959.1 57.5 43.8 6.9 6,273.3 Corporate and Other (b) — (626.7) 21.6 27.8 (5,703.8) Consolidated Total $ 5,856.7 — 232.5 174.2 9,295.9 2021 Consumer Products $ 3,981.6 465.4 112.4 73.1 4,925.5 Wizards of the Coast and Digital Gaming 1,286.6 121.6 48.5 35.1 1,585.1 Entertainment (b) 1,152.2 61.5 96.6 6.2 6,052.8 Corporate and Other (b) — (648.5) 22.6 18.3 (2,525.6) Consolidated Total $ 6,420.4 — 280.1 132.7 10,037.8 |
Schedule of Operating Profit (Loss) by Segment | (In millions) 2023 2022 2021 Operating profit (loss) Consumer Products $ (64.7) 217.3 401.4 Wizards of the Coast and Digital Gaming 525.7 538.3 547.0 Entertainment (b) (1,911.5) 22.7 (91.8) Corporate and Other (b)(c) (88.3) (370.6) (93.3) Operating profit (loss) (1,538.8) 407.7 763.3 Interest expense 186.3 171.0 179.7 Interest income (23.0) (11.8) (5.4) Other non-operating expense (income) 7.0 (13.0) 7.1 Earnings (loss) before income taxes $ (1,709.1) 261.5 581.9 (a) Beginning in 2022, the Company has allocated certain of the intangible amortization costs related to the assets acquired in the eOne Acquisition, between the Consumer Products and Entertainment segments. (b) 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 Corporate and Other 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. (c) |
Summary of Net Revenues by Geographic Regions | The following table represents consolidated Consumer Products segment net revenues by major geographic region for the three fiscal years ended December 31, 2023. (In millions) 2023 2022 2021 North America $ 1,649.1 2,064.8 2,315.9 Europe 669.5 899.5 1,067.7 Asia Pacific 256.3 293.4 310.1 Latin America 311.5 314.8 287.9 Net revenues $ 2,886.4 3,572.5 3,981.6 |
Summary of Net Revenues by Category and Brand Portfolio | The following table represents consolidated Wizards of the Coast and Digital Gaming segment net revenues by category for the three fiscal years ended December 31, 2023: (In millions) 2023 2022 2021 Tabletop Gaming $ 1,072.5 1,067.0 950.6 Digital and Licensed Gaming 385.1 258.1 336.0 Net revenues $ 1,457.6 1,325.1 1,286.6 The following table represents consolidated Entertainment segment net revenues by category for the three fiscal years ended December 31, 2023 . (In millions) 2023 2022 2021 Film and TV $ 575.5 837.6 932.5 Family Brands 83.8 79.4 132.9 Music and Other — 42.1 86.8 Net revenues $ 659.3 959.1 1,152.2 The following table presents consolidated net revenues by brand portfolio for the three fiscal years ended December 31, 2023. (In millions) 2023 2022 2021 Franchise Brands $ 3,256.5 3,350.8 3,541.9 Partner Brands 687.8 1,052.0 1,161.0 Portfolio Brands 521.3 625.2 719.8 Non-Hasbro Branded Film & TV 537.7 828.7 997.7 Net revenues $ 5,003.3 5,856.7 6,420.4 Net revenue from Hasbro’s Total Gaming category, including all gaming revenues, most notably DUNGEONS |
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas | Information as to Hasbro’s operations in different geographical areas is presented below on the basis the Company uses to manage its business. Net revenues are categorized based on the location of the customer, while long-lived assets (property, plant and equipment, goodwill and other intangibles) are categorized based on their location. (In millions) 2023 2022 2021 Net revenues United States $ 3,010.1 3,544.2 3,898.9 International 1,993.2 2,312.5 2,521.5 $ 5,003.3 5,856.7 6,420.4 Long-lived assets United States $ 1,153.7 1,042.3 1,359.6 International 2,201.6 3,665.3 3,653.0 $ 3,355.3 4,707.6 5,012.6 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Narrative (Details) - USD ($) shares in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 25, 2022 | Dec. 26, 2021 | Dec. 27, 2023 | |
Property, Plant and Equipment [Line Items] | ||||
Percentage of revenues from sales of finished products | 75% | 76% | 74% | |
Program cost amortization period | 10 years | |||
Selling, distribution and administration | $ 1,480.4 | $ 1,666.1 | $ 1,432.7 | |
Deferred tax assets, valuation allowance | $ 432 | $ 189.8 | ||
Antidilutive securities excluded from computation of earnings (in shares) | 2.5 | 2.7 | 2.2 | |
Antidilutive securities excluded from computation of earnings per share, shares would have been included if no net loss (in shares) | 1.6 | |||
Antidilutive securities excluded from computation of earnings per share, amount, treasury stock method (in shares) | 0.2 | |||
Digital Game | ||||
Property, Plant and Equipment [Line Items] | ||||
Revenue recognition, period from purchase | 6 months | |||
Shipping and handling | ||||
Property, Plant and Equipment [Line Items] | ||||
Selling, distribution and administration | $ 225.6 | $ 247.7 | $ 264.1 | |
Minimum | ||||
Property, Plant and Equipment [Line Items] | ||||
Finite-lived intangible asset, useful life | 2 years | |||
Maximum | ||||
Property, Plant and Equipment [Line Items] | ||||
Finite-lived intangible asset, useful life | 19 years | |||
Production Financing Facilitie | ||||
Property, Plant and Equipment [Line Items] | ||||
Debt instrument term | 2 years | |||
Land and improvements | Minimum | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, plant and equipment, useful life | 15 years | |||
Land and improvements | Maximum | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, plant and equipment, useful life | 19 years | |||
Buildings and improvements | Minimum | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, plant and equipment, useful life | 15 years | |||
Buildings and improvements | Maximum | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, plant and equipment, useful life | 25 years | |||
Machinery and equipment | Minimum | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, plant and equipment, useful life | 3 years | |||
Machinery and equipment | Maximum | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, plant and equipment, useful life | 12 years | |||
Tools, dies and molds | Maximum | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, plant and equipment, useful life | 3 years | |||
Disposed of by Sale | eOne Film And TV Business | ||||
Property, Plant and Equipment [Line Items] | ||||
Aggregate sales price | $ 375 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Breakout of Noncontrolling Interests (Details) | Dec. 31, 2023 |
Astley Baker Davies Limited | |
Noncontrolling Interest [Line Items] | |
Proportion Held | 70% |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Schedule of Earnings per Share, Basic and Diluted (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 25, 2022 | Dec. 26, 2021 | |
Basic | |||
Net earnings attributable to Hasbro, Inc., basic | $ (1,489.3) | $ 203.5 | $ 428.7 |
Average shares outstanding, basic (in shares) | 138.8 | 138.7 | 138 |
Net earnings attributable to Hasbro, Inc. (in dollars per share) | $ (10.73) | $ 1.47 | $ 3.11 |
Diluted | |||
Net earnings attributable to Hasbro, Inc., diluted | $ (1,489.3) | $ 203.5 | $ 428.7 |
Effect of dilutive securities: | |||
Average shares outstanding, basic (in shares) | 138.8 | 138.7 | 138 |
Options and other share-based awards (in shares) | 0 | 0.2 | 0.4 |
Equivalent shares, diluted (in shares) | 138.8 | 138.9 | 138.4 |
Net earnings attributable to Hasbro, Inc. (in dollars per share) | $ (10.73) | $ 1.46 | $ 3.10 |
Revenue Recognition - Contract
Revenue Recognition - Contract Assets and Liabilities (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Change In Contract With Customer, Asset [Roll Forward] | |
Balance at beginning of the year | $ 594.4 |
Recognized in current year | 478.6 |
Amounts reclassified | (474.2) |
Assets disposed | (402.3) |
Foreign currency impact | 16.8 |
Ending Balance | 213.3 |
Change In Contract With Customer, Liability [Roll Forward] | |
Balance at beginning of the year | 113 |
Recognized in current year | 460.1 |
Amounts in beginning balance reclassified to revenue | (89.9) |
Current year amounts reclassified to revenue | (224.3) |
Liabilities disposed | (25.8) |
Foreign currency impact | (2.3) |
Ending Balance | $ 230.8 |
Revenue Recognition - Additiona
Revenue Recognition - Additional Information (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 USD ($) brand_category | Dec. 25, 2022 USD ($) | Dec. 26, 2021 USD ($) | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Revenue, remaining performance obligation, amount | $ 11.7 | ||
Charge for credit losses for accounts receivable | $ 0 | $ 0 | $ 0 |
Number of brand categories | brand_category | 4 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Revenue, remaining performance obligation, amount | $ 6.6 | ||
Revenue, remaining performance obligation, period | 1 year | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-12-30 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Revenue, remaining performance obligation, amount | $ 5.1 | ||
Revenue, remaining performance obligation, period | 1 year |
Sale of Non-core Entertainmen_3
Sale of Non-core Entertainment One Film and TV Business - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 27, 2023 | Dec. 31, 2023 | Dec. 25, 2022 | Dec. 26, 2021 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Loss on disposal of business | $ 539 | $ 22.1 | $ 108.8 | |
eOne Film And TV Business | Disposed of by Sale | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Aggregate sales price | $ 375 | |||
Loss on disposal of business | 539 | |||
Pre-tax cash transaction expenses | 35.1 | |||
Total Assets | 1,500 | 1,486 | ||
Total Liabilities | $ 542 | $ 542 |
Sale of Non-core Entertainmen_4
Sale of Non-core Entertainment One Film and TV Business - Major Classes of eOne Music Assets and Liabilities Sold (Details) - eOne Film And TV Business - Disposed of by Sale - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 27, 2023 |
Assets sold: | ||
Cash and Cash Equivalents | $ 54.1 | |
Accounts receivable | 87.9 | |
Inventories | 2.4 | |
Other current assets | 402.6 | |
Property, plant and equipment | 54 | |
Other assets | 885 | |
Total Assets | 1,486 | $ 1,500 |
Liabilities sold: | ||
Short-term borrowings | 100 | |
Current portion of long-term debt | 5.8 | |
Accounts payable and accrued liabilities | 375.9 | |
Long-term debt | 0.8 | |
Other Liabilities | 59.5 | |
Total Liabilities | $ 542 | $ 542 |
Sale of Non-core Entertainmen_5
Sale of Non-core Entertainment One Film and TV Business - Income Before Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 25, 2022 | Dec. 26, 2021 | |
Disposed of by Sale | eOne Film And TV Business | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
eOne Film and TV loss before income taxes | $ (371.6) | $ (7.3) | $ (10.3) |
Other Comprehensive Earnings _3
Other Comprehensive Earnings (Loss) - Schedule of Other Comprehensive Income (Loss), Tax Effect (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 25, 2022 | Dec. 26, 2021 | |
Other comprehensive earnings (loss), tax effect: | |||
Tax benefit on unrealized holding gains | $ 0 | $ 0.1 | $ 0 |
Tax benefit (expense) on cash flow hedging activities | 2.8 | (1.3) | (1) |
Tax expense on foreign currency translation amounts | 0 | 0 | (7.2) |
Tax expense on changes in unrecognized pension amounts | 0 | (5.9) | (1.5) |
Reclassifications to earnings, tax effect: | |||
Tax (benefit) expense on cash flow hedging activities | (1.9) | 1.6 | (0.5) |
Tax expense (benefit) on amortization of unrecognized pension and postretirement amounts reclassified to the consolidated statements of operations | 0.1 | (0.3) | (0.6) |
Total tax effect on other comprehensive earnings (loss) | $ 1 | $ (5.8) | $ (10.8) |
Other Comprehensive Earnings _4
Other Comprehensive Earnings (Loss) - Schedule of Accumulated Other Comprehensive Earnings (Loss) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 25, 2022 | Dec. 26, 2021 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | $ 2,861.9 | $ 3,063.1 | $ 2,936.7 |
Current period other comprehensive earnings (loss) | 50.5 | (4.7) | (45.1) |
Reclassifications from AOCE to earnings | 2.9 | (14.9) | 4.8 |
Ending balance | 1,087 | 2,861.9 | 3,063.1 |
Pension and Postretirement Amounts | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (3) | (35.1) | (40.7) |
Current period other comprehensive earnings (loss) | (0.3) | 30.8 | 3.4 |
Reclassifications from AOCE to earnings | (0.9) | 1.3 | 2.2 |
Ending balance | (4.2) | (3) | (35.1) |
Gains (Losses) on Derivative Instruments | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (12) | (6) | (22.1) |
Current period other comprehensive earnings (loss) | (8.6) | 10.2 | 13.5 |
Reclassifications from AOCE to earnings | 3.8 | (16.2) | 2.6 |
Ending balance | (16.8) | (12) | (6) |
Unrealized Holding Gains (Losses) on Available for-Sale Securities | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (0.1) | 0.2 | 0.3 |
Current period other comprehensive earnings (loss) | 0 | (0.3) | (0.1) |
Reclassifications from AOCE to earnings | 0 | 0 | 0 |
Ending balance | (0.1) | (0.1) | 0.2 |
Foreign Currency Translation Adjustments | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (239.8) | (194.4) | (132.5) |
Current period other comprehensive earnings (loss) | 59.4 | (45.4) | (61.9) |
Reclassifications from AOCE to earnings | 0 | 0 | 0 |
Ending balance | (180.4) | (239.8) | (194.4) |
Accumulated Other Comprehensive Loss | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (254.9) | (235.3) | (195) |
Ending balance | $ (201.5) | $ (254.9) | $ (235.3) |
Other Comprehensive Earnings _5
Other Comprehensive Earnings (Loss) - Gains (Losses) on Derivative Instruments (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||
Mar. 28, 2021 | Dec. 31, 2023 | Dec. 25, 2022 | Dec. 26, 2021 | Dec. 28, 2020 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Deferred losses | $ 201,500,000 | $ 254,900,000 | |||
Deferred losses reclassified from AOCE to net earnings | 186,300,000 | 171,000,000 | $ 179,700,000 | ||
Cash flow hedge loss to be reclassified within twelve months | $ 2,000,000 | ||||
3.15% Notes Due 2021 | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Debt stated interest rate | 3.15% | ||||
Repayments of debt | $ 300,000,000 | ||||
5.10% Notes Due 2044 | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Debt stated interest rate | 5.10% | ||||
Foreign exchange forward | Gains (Losses) on Derivative Instruments | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Deferred losses | $ 2,500,000 | ||||
Interest rate contract | Gains (Losses) on Derivative Instruments | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Deferred losses | 14,200,000 | ||||
Interest rate contract | Gains (Losses) on Derivative Instruments | Reclassification out of accumulated other comprehensive income | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Deferred losses reclassified from AOCE to net earnings | $ 700,000 | $ 700,000 | $ 1,000,000 |
Property, Plant and Equipment -
Property, Plant and Equipment - Schedule of Property, Plant and Equipment (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 25, 2022 |
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment, net | $ 488.6 | $ 422.8 |
Total property, plant and equipment, net | 361.9 | 304.5 |
Right of use assets | 208.4 | 239.6 |
Less accumulated depreciation | 81.7 | 121.3 |
Land and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Gross property, plant and equipment | 3.5 | 3.1 |
Buildings and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Gross property, plant and equipment | 225.9 | 221.1 |
Machinery, equipment and software | ||
Property, Plant and Equipment [Line Items] | ||
Gross property, plant and equipment | 706.7 | 672.4 |
Land and Improvements, Buildings and Improvements, and Machinery, Equipment and Software | ||
Property, Plant and Equipment [Line Items] | ||
Gross property, plant and equipment | 936.1 | 896.6 |
Less accumulated depreciation | 618.9 | 654.5 |
Total property, plant and equipment, net | 317.2 | 242.1 |
Tools, dies and molds | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment, net | $ 44.7 | $ 62.4 |
Property, Plant and Equipment_2
Property, Plant and Equipment - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 25, 2022 | Dec. 26, 2021 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation expense | $ 127.7 | $ 127.3 | $ 163.3 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Narrative (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||
Dec. 31, 2023 | Jul. 02, 2023 | Dec. 25, 2022 | Sep. 25, 2022 | Sep. 26, 2021 | Dec. 31, 2023 | Dec. 25, 2022 | Dec. 26, 2021 | |
Finite-Lived Intangible Assets [Line Items] | ||||||||
Pre-tax non-cash goodwill impairment charges | $ 11,800,000 | $ 1,191,200,000 | $ 11,800,000 | |||||
Goodwill impairment | $ 960,000,000 | $ 231,200,000 | $ 0 | 1,191,200,000 | 0 | $ 0 | ||
Proceeds from sale of business, net of cash transferred | $ 329,600,000 | $ 0 | 378,500,000 | |||||
Impairment of intangible assets, finite-lived | $ 51,000,000 | $ 65,000,000 | $ 281,000,000 | |||||
Impairment, Intangible Asset, Finite-Lived, Statement of Income or Comprehensive Income [Extensible Enumeration] | Selling, distribution and administration | |||||||
Disposed of by Sale | eOne Music | ||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||
Goodwill impairment | $ 108,800,000 | |||||||
Proceeds from sale of business, net of cash transferred | $ 397,000,000 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Schedule of Goodwill (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Sep. 25, 2022 | Dec. 31, 2023 | Dec. 25, 2022 | |
Goodwill [Roll Forward] | |||
Beginning goodwill | $ 3,470.1 | $ 3,419.6 | |
Acquired during the period | 64.7 | ||
Impairment during the period | $ (11.8) | (1,191.2) | (11.8) |
Foreign exchange translation | 0.3 | (2.4) | |
Ending goodwill | 2,279.2 | 3,470.1 | |
Consumer Products | |||
Goodwill [Roll Forward] | |||
Beginning goodwill | 1,584.7 | 1,584.9 | |
Acquired during the period | 0 | ||
Impairment during the period | 0 | 0 | |
Foreign exchange translation | (2.4) | (0.2) | |
Ending goodwill | 1,582.3 | 1,584.7 | |
Wizards of the Coast and Digital Gaming | |||
Goodwill [Roll Forward] | |||
Beginning goodwill | 371.5 | 307.3 | |
Acquired during the period | 64.7 | ||
Impairment during the period | 0 | 0 | |
Foreign exchange translation | 0.2 | (0.5) | |
Ending goodwill | 371.7 | 371.5 | |
Entertainment | |||
Goodwill [Roll Forward] | |||
Beginning goodwill | 1,513.9 | 1,527.4 | |
Acquired during the period | 0 | ||
Impairment during the period | (1,191.2) | (11.8) | |
Foreign exchange translation | 2.5 | (1.7) | |
Ending goodwill | $ 325.2 | $ 1,513.9 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Schedule of Other Intangibles (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 25, 2022 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Acquired product rights | $ 1,763.8 | $ 2,112.1 |
Licensed rights of entertainment properties | 45 | 45 |
Impairment | (116) | (281) |
Accumulated amortization | (1,181) | (1,137.2) |
Amortizable intangible assets | 511.8 | 738.9 |
Product rights with indefinite lives | 75.7 | 75.7 |
Total other intangibles assets, net | $ 587.5 | $ 814.6 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Schedule of Expected Amortization Expense (Details) $ in Millions | Dec. 31, 2023 USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2024 | $ 68.1 |
2025 | 65.5 |
2026 | 57.6 |
2027 | 57.6 |
2028 | $ 57.5 |
Equity Method Investment (Detai
Equity Method Investment (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |||
Oct. 31, 2009 | Dec. 31, 2023 | Dec. 25, 2022 | Dec. 26, 2021 | Sep. 23, 2014 | |
Schedule of Equity Method Investments [Line Items] | |||||
Income (loss) from equity method investments | $ 0 | $ 0 | $ (74,100,000) | ||
The Network, Joint Venture | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity method investment, ownership percentage | 50% | 40% | |||
Payments to acquire interest in joint venture | $ 300,000,000 | ||||
Equity method investments | 102,000,000 | 120,800,000 | |||
Impairment loss | 1,300,000 | ||||
Option agreement, exercise price, as percentage of fair market value of equity method investee | 80% | ||||
Payments made under tax sharing agreement | 5,700,000 | 5,400,000 | 5,300,000 | ||
The Network, Joint Venture | Other liabilities | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Option agreement | 1,700,000 | 1,700,000 | |||
Remaining Present Value Of Expected Future Payments | 9,000,000 | 14,400,000 | |||
Income (loss) on tax sharing agreement | 0 | 700,000 | |||
The Network, Joint Venture | Other expense | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Income (loss) from equity method investments | $ 10,900,000 | $ 8,100,000 | $ 20,800,000 | ||
The Network, Joint Venture | Discovery | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Joint venture, ownership interest | 60% |
Investments in Productions an_3
Investments in Productions and Investments in Acquired Content Rights - Programming Costs (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 25, 2022 | |
Individual monetization | ||
Released, net of amortization | $ 74.7 | $ 584.5 |
Completed and not released | 5.1 | 23.3 |
In production | 27.1 | 199.4 |
Pre-production | 10.4 | 41.3 |
Individual monetization, costs | 117.3 | 848.5 |
Film/TV group monetization | ||
Released, net of amortization | 26 | 25.8 |
In production | 23.6 | 22.2 |
Total film costs | 49.6 | 48 |
Investment in other programming: | ||
Released, net of amortization | 16.1 | 9.8 |
In production | 0.8 | 11.8 |
Pre-production | 0.8 | 3.3 |
Other programming costs | 17.7 | 24.9 |
Total program investments | 184.6 | $ 921.4 |
Productions and investments in acquired | $ 734.8 |
Investments in Productions an_4
Investments in Productions and Investments in Acquired Content Rights - Program Costs Amortization (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 25, 2022 | Dec. 26, 2021 | |
Product Information [Line Items] | |||
Program cost amortization | $ 448.9 | $ 555.5 | $ 628.6 |
Capitalized Programming Costs, Individual Monetization [Abstract] | |||
2024 | 10.1 | ||
2025 | 11.6 | ||
2026 | 6.4 | ||
Capitalized Programming Costs, Film/TV Group Monetization [Abstract] | |||
2024 | 15.4 | ||
2025 | 16.7 | ||
2026 | 25.2 | ||
Total | |||
2024 | 25.5 | ||
2025 | 28.3 | ||
2026 | 31.6 | ||
Investment in Production | |||
Product Information [Line Items] | |||
Program cost amortization | 400.7 | ||
Investment in Content | |||
Product Information [Line Items] | |||
Program cost amortization | $ 48.2 |
Financing Arrangements (Details
Financing Arrangements (Details) $ / shares in Units, shares in Millions | 1 Months Ended | 12 Months Ended | ||||||
Dec. 30, 2019 USD ($) | Nov. 30, 2019 USD ($) $ / shares shares | Sep. 29, 2019 | Dec. 31, 2023 USD ($) | Dec. 25, 2022 USD ($) | Sep. 30, 2023 USD ($) | Nov. 30, 2021 USD ($) | Sep. 30, 2019 USD ($) | |
Line of Credit Facility [Line Items] | ||||||||
Supplier finance program, obligation amount | $ 43,300,000 | $ 76,100,000 | ||||||
Supplier Finance Program, Obligation, Statement of Financial Position [Extensible Enumeration] | Accounts payable | Accounts payable | ||||||
eOne Acquisition | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Shares issued in business combination (in shares) | shares | 10.6 | |||||||
Offering price (in dollars per share) | $ / shares | $ 95 | |||||||
Commercial Paper Program | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Line of credit facility, maximum borrowing capacity | $ 1,000,000,000 | |||||||
Debt instrument term | 397 days | |||||||
Revolving Credit Facility | Amended Revolving Credit Agreement | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Coverage ratio | 3 | |||||||
Consolidated total leverage ratio | 3.50 | |||||||
Revolving Credit Facility | Amended Revolving Credit Agreement | Each of the quarters ended September 30, 2023 and December 31, 2023 | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Total leverage ratio | 4 | |||||||
Revolving Credit Facility | Amended Revolving Credit Agreement | Each of the first, second and fourth fiscal quarters of each year (other than 2023) | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Total leverage ratio | 3.75 | |||||||
Revolving Credit Facility | Amended Revolving Credit Agreement | Third fiscal quarter of each year (other than 2023) | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Total leverage ratio | 4 | |||||||
Revolving Credit Facility | Revolving Production Credit Facility | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Line of credit facility, maximum borrowing capacity | $ 250,000,000 | |||||||
Potential additional incremental commitment | $ 150,000,000 | |||||||
Line of Credit | Revolving Credit Facility | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Line of credit facility, available borrowing capacity | $ 1,250,000,000 | |||||||
Short-term borrowings under line of credit | 0 | |||||||
Line of credit outstanding amount | 0 | $ 0 | ||||||
Line of credit facility, maximum borrowing capacity | $ 1,250,000,000 | |||||||
Potential additional incremental commitment | $ 500,000,000 | |||||||
Line of Credit | Unsecured Uncommitted Lines Of Credit | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Line of credit facility, available borrowing capacity | 95,600,000 | |||||||
Weighted average interest rate | 3.30% | |||||||
Senior Notes | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Debt instrument, face amount | $ 2,400,000,000 | |||||||
Senior Notes | eOne Acquisition | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Debt instrument, face amount | 2,400,000,000 | |||||||
Unsecured Debt | $1.0 Billion Term Loan Agreement | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Debt instrument, face amount | $ 1,000,000,000 | |||||||
Borrowing from line of credit | $ 1,000,000,000 | |||||||
Unsecured Debt | $1.0 Billion Term Loan Agreement | eOne Acquisition | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Debt instrument, face amount | $ 1,000,000,000 | |||||||
Unsecured Debt | Three-Year Term Loan Facility | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Debt instrument, face amount | 400,000,000 | |||||||
Repayments of debt | 400,000,000 | |||||||
Debt instrument term | 3 years | |||||||
Unsecured Debt | Five-Year Term Loan Facility | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Debt instrument, face amount | $ 600,000,000 | |||||||
Repayments of debt | $ 250,000,000 | $ 37,500,000 | ||||||
Debt instrument term | 5 years |
Accrued Liabilities (Details)
Accrued Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 25, 2022 |
Accrued Liabilities, Current [Abstract] | ||
Royalties | $ 286.8 | $ 195.4 |
Cancellation charges | 118.9 | 89.2 |
Deferred revenue | 101.6 | 111.3 |
Dividends | 97.2 | 96.7 |
Payroll and management incentives | 85.6 | 66.7 |
Severance | 83.7 | 100.3 |
Other taxes | 68.7 | 82.1 |
Accrued income taxes | 61.6 | 44.8 |
General vendor accruals | 51.9 | 44.3 |
Advertising | 45 | 53.2 |
Participations and residuals | 34 | 300.2 |
Current lease liability | $ 30.5 | $ 39.6 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Total accrued liabilities | Total accrued liabilities |
Interest | $ 29.9 | $ 31 |
Defined contribution plans | 29.7 | 30 |
Freight | 22.9 | 28.5 |
Insurance | 13.3 | 11 |
Professional fees | 12.4 | 13.6 |
Accrued expenses IIC & IIP | 0.7 | 80.8 |
Other | 41.4 | 88.1 |
Total accrued liabilities | $ 1,215.8 | $ 1,506.8 |
Long-Term Debt - Long-term Debt
Long-Term Debt - Long-term Debt Instruments (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2023 | Dec. 25, 2022 | |
Debt Instrument [Line Items] | ||
Carrying Cost | $ 3,484.9 | $ 3,848.1 |
Less: Deferred debt expenses | 19.1 | 23.7 |
Current portion of long-term debt | 500 | 113.2 |
Long-term debt | 2,965.8 | 3,711.2 |
Fair Value | 3,349.1 | 3,626.3 |
Long-term debt, fair value | $ 3,349.1 | 3,626.3 |
3.90% Notes Due 2029 | ||
Debt Instrument [Line Items] | ||
Debt stated interest rate | 3.90% | |
Carrying Cost | $ 900 | 900 |
Fair Value | $ 839.8 | 808.2 |
3.55% Notes Due 2026 | ||
Debt Instrument [Line Items] | ||
Debt stated interest rate | 3.55% | |
Carrying Cost | $ 675 | 675 |
Fair Value | $ 641 | 635.3 |
3.00% Notes Due 2024 | ||
Debt Instrument [Line Items] | ||
Debt stated interest rate | 3% | |
Carrying Cost | $ 500 | 500 |
Fair Value | $ 488.4 | 482.2 |
6.35% Notes Due 2040 | ||
Debt Instrument [Line Items] | ||
Debt stated interest rate | 6.35% | |
Carrying Cost | $ 500 | 500 |
Fair Value | $ 520.1 | 498.4 |
3.50% Notes Due 2027 | ||
Debt Instrument [Line Items] | ||
Debt stated interest rate | 3.50% | |
Carrying Cost | $ 500 | 500 |
Fair Value | $ 472.2 | 465.8 |
5.10% Notes Due 2044 | ||
Debt Instrument [Line Items] | ||
Debt stated interest rate | 5.10% | |
Carrying Cost | $ 300 | 300 |
Fair Value | $ 271.6 | 261.1 |
6.60% Debentures Due 2028 | ||
Debt Instrument [Line Items] | ||
Debt stated interest rate | 6.60% | |
Carrying Cost | $ 109.9 | 109.9 |
Fair Value | 116 | 112.1 |
Variable % Notes Due December 30, 2024 | ||
Debt Instrument [Line Items] | ||
Carrying Cost | 0 | 310 |
Fair Value | 0 | 310 |
Repayments of debt | 250 | |
Production Financing Facilitie | ||
Debt Instrument [Line Items] | ||
Carrying Cost | 0 | 53.2 |
Fair Value | $ 0 | $ 53.2 |
Long-Term Debt - Narrative (Det
Long-Term Debt - Narrative (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |||
Nov. 30, 2019 | Sep. 29, 2019 | Dec. 31, 2023 | Dec. 25, 2022 | Sep. 30, 2019 | |
Debt Instrument [Line Items] | |||||
Production financing loans, net | $ 0 | $ 195,600,000 | |||
Current portion of long-term debt | $ 500,000,000 | 113,200,000 | |||
Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, face amount | $ 2,400,000,000 | ||||
Debt issuance costs, gross | $ 20,000,000 | ||||
Redemption price | 100% | ||||
Senior Notes | Minimum | |||||
Debt Instrument [Line Items] | |||||
Debt instrument term | 5 years | ||||
Debt instrument, interest rate | 0.25% | ||||
Senior Notes | Maximum | |||||
Debt Instrument [Line Items] | |||||
Debt instrument term | 10 years | ||||
Debt instrument, interest rate | 2% | ||||
2.60% Notes Due 2022 | Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, face amount | $ 300,000,000 | ||||
Debt stated interest rate | 2.60% | ||||
3.00% Notes Due 2024 | |||||
Debt Instrument [Line Items] | |||||
Debt stated interest rate | 3% | ||||
3.00% Notes Due 2024 | Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, face amount | $ 500,000,000 | ||||
Debt stated interest rate | 3% | ||||
3.00% Notes Due 2024 | Senior Notes | US Treasury (UST) Interest Rate | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 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] | |||||
Debt instrument, face 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 | 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] | |||||
Debt instrument, face 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 | 0.35% | ||||
$1.0 Billion Term Loan Agreement | Unsecured Debt | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, face amount | $ 1,000,000,000 | ||||
Three-Year Term Loan Facility | Unsecured Debt | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, face amount | 400,000,000 | ||||
Debt instrument term | 3 years | ||||
Repayments of debt | $ 400,000,000 | ||||
Five-Year Term Loan Facility | Unsecured Debt | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, face amount | $ 600,000,000 | ||||
Debt instrument term | 5 years | ||||
Repayments of unsecured debt, principal | 60,000,000 | 50,000,000 | |||
Repayments of debt | $ 250,000,000 | $ 37,500,000 | |||
5.10% Notes Due 2044 | |||||
Debt Instrument [Line Items] | |||||
Debt stated interest rate | 5.10% | ||||
Production Financing Facilitie | |||||
Debt Instrument [Line Items] | |||||
Debt instrument term | 2 years |
Long-Term Debt - Future Contrac
Long-Term Debt - Future Contractual Maturities (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 25, 2022 |
Debt Instrument [Line Items] | ||
Long-term borrowings | $ 3,484.9 | $ 3,848.1 |
Debt Instruments Excluding Production Financing Facilities | ||
Debt Instrument [Line Items] | ||
2024 | 500 | |
2025 | 0 | |
2026 | 675 | |
2027 | 500 | |
2028 | 109.9 | |
2029 and thereafter | $ 1,700 |
Long-Term Debt - Schedule of Mo
Long-Term Debt - Schedule of Movements in Production Financing and Other Related Loans (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Production Financing | |
Production financing loans, beginning balance | $ 195.6 |
Drawdowns | 117.4 |
Repayments | (206.7) |
Removed with sale of eOne film and TV | (105.8) |
Foreign exchange differences | (0.5) |
Production financing loans, ending balance | $ 0 |
Income Taxes - Components of Ea
Income Taxes - Components of Earnings Before Income Taxes Determined by Tax Jurisdiction (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 25, 2022 | Dec. 26, 2021 | |
Income Tax Disclosure [Abstract] | |||
United States | $ (356.9) | $ 17 | $ 236.8 |
International | (1,352.2) | 244.5 | 345.1 |
Total earnings (loss) before income taxes | $ (1,709.1) | $ 261.5 | $ 581.9 |
Income Taxes - Income Taxes Att
Income Taxes - Income Taxes Attributable to Earnings Before Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 25, 2022 | Dec. 26, 2021 | |
Current | |||
United States | $ (29) | $ 85.9 | $ 52.3 |
State and local | (6.4) | 18 | 15.4 |
International | 57.6 | 84.7 | 50.1 |
Current income tax expense (benefit) | 22.2 | 188.6 | 117.8 |
Deferred | |||
United States | (36.3) | (105.7) | 7.1 |
State and local | (3) | (16.6) | (0.3) |
International | (204.2) | (7.8) | 22 |
Deferred income tax expense (benefit) | (243.5) | (130.1) | 28.8 |
Total income (benefit) taxes | $ (221.3) | $ 58.5 | $ 146.6 |
Income Taxes - Effective Income
Income Taxes - Effective Income Tax Rate Reconciliation (Details) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 25, 2022 | Dec. 26, 2021 | |
Income Tax Disclosure [Abstract] | |||
Statutory income tax rate | 21% | 21% | 21% |
State and local income taxes, net | 0.50% | 1.20% | 1.50% |
Tax on international earnings | 6.70% | (4.00%) | (1.10%) |
Domestic tax on foreign earnings | 1.30% | (6.50%) | (1.70%) |
Change in unrecognized tax benefits | (0.30%) | 3.10% | (3.40%) |
U.S. capital loss | 22% | 0% | 0% |
Change in valuation allowance | (23.30%) | 9.70% | (1.60%) |
Share-based compensation | (0.30%) | 1.40% | (0.60%) |
Research and development tax credits | 0.30% | (3.50%) | (1.10%) |
Deferred tax rate change | 0% | 0% | 6.50% |
Officers' compensation | (0.30%) | 1.90% | 1.90% |
Loss on disposal of business | (3.40%) | 1.50% | 3.90% |
Goodwill impairments | (11.80%) | 0% | 0% |
Other, net | 0.50% | (3.40%) | (0.10%) |
Effective income tax rate, continuing operations | 12.90% | 22.40% | 25.20% |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 25, 2022 |
Deferred tax assets: | ||
Accounts receivable | $ 31.8 | $ 28.8 |
Inventories | 33.2 | 22.6 |
Loss and credit carryforwards | 461.9 | 175.3 |
Operating leases | 3.5 | 11.2 |
Operating expenses | 19.1 | 29.9 |
Pension | 6.9 | 9.1 |
Other compensation | 46.4 | 50.7 |
Postretirement benefits | 5.9 | 5.7 |
Interest rate hedge | 4.8 | 4.5 |
Tax sharing agreement | 0.3 | 0.3 |
Deferred revenue | 0.4 | 4.4 |
Capitalized research and experimentation | 100.6 | 81.2 |
Depreciation and amortization of long-lived assets | 192 | 63.2 |
Interest expense limitation | 28.7 | 0 |
Other | 3.7 | 11.7 |
Gross deferred tax assets | 939.2 | 498.6 |
Deferred tax liabilities: | ||
Depreciation and amortization of long-lived assets | 108 | 125 |
Equity method investment | 19 | 14.9 |
Operating leases | 1.1 | 9.3 |
Prepaid expenses | 4 | 4.4 |
Other | 22.8 | 15.4 |
Gross deferred tax liabilities | 154.9 | 169 |
Valuation allowance | (432) | (189.8) |
Net deferred income taxes | $ 352.3 | $ 139.8 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 25, 2022 | Dec. 26, 2021 | Dec. 27, 2020 | |
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||||
Loss and credit carryforwards | $ 461.9 | $ 175.3 | ||
Increase of operating loss carryforwards | 286.6 | |||
Deferred tax assets, valuation allowance | 432 | 189.8 | ||
Increase of valuation allowance, deferred tax asset | 242.2 | |||
Additional foreign tax withholding amount | 3.2 | |||
Unrecognized tax benefits | 39.9 | 77.8 | $ 50.6 | $ 67.8 |
Unrecognized tax benefits that would impact effective tax rate | 46 | 53 | 46 | |
Income taxes recognized potential interest and penalties | 5.8 | 2.2 | 2.6 | |
Unrecognized tax benefits, income tax penalties and interest accrued | 6.2 | $ 8.8 | $ 7.3 | |
Foreign Tax Authority | Swiss Federal Tax Administration (FTA) | ||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||||
Deferred tax asset related to tax intangibles | 135.6 | |||
Domestic Tax Authority | Capital Loss Carryforward | ||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||||
Tax credit carryforward, amount | 375.6 | |||
Tax credit carryforward, valuation allowance | 364.8 | |||
Minimum | ||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||||
Decrease in unrecognized tax benefits is reasonably possible | 0 | |||
Maximum | ||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||||
Decrease in unrecognized tax benefits is reasonably possible | $ 4 |
Income Taxes - Deferred Tax A_2
Income Taxes - Deferred Tax Assets and Liabilities by Balance Sheet Location (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 25, 2022 |
Income Tax Disclosure [Abstract] | ||
Other assets | $ 427.9 | $ 262.1 |
Other liabilities | (75.6) | (122.3) |
Net deferred income taxes | $ 352.3 | $ 139.8 |
Income Taxes - Unrecognized Tax
Income Taxes - Unrecognized Tax Benefits Roll Forward (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 25, 2022 | Dec. 26, 2021 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance at beginning of year | $ 77.8 | $ 50.6 | $ 67.8 |
Gross increases in prior period tax positions | 11.9 | 0.9 | 0.6 |
Gross decrease from disposition | (10.4) | 0 | 0 |
Gross decreases in prior period tax positions | (23.4) | (0.2) | (12) |
Gross increases in current period tax positions | 3.8 | 28.6 | 4.6 |
Decrease related to settlements with tax authorities | (8.4) | 0 | (2.7) |
Decreases from the expiration of statute of limitations | (11.4) | (2.1) | (7.7) |
Balance at end of year | $ 39.9 | $ 77.8 | $ 50.6 |
Capital Stock (Details)
Capital Stock (Details) - USD ($) $ / shares in Units, $ in Millions | 9 Months Ended | 12 Months Ended | ||
Dec. 25, 2022 | Dec. 31, 2023 | Dec. 25, 2022 | May 31, 2018 | |
Equity [Abstract] | ||||
Stock repurchase program, authorized amount | $ 4,300 | $ 500 | ||
Stock Repurchased During Period (in shares) | 1,400,000 | 0 | ||
Purchases of common stock | $ 125 | $ 125 | ||
Stock repurchased during the period, (in dollars per share) | $ 87.46 | |||
Stock repurchase program, remaining authorized repurchase amount | $ 241.6 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Fair Value Hierarchy (Details) - Fair value, recurring - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 25, 2022 |
Assets: | ||
Available-for-sale securities | $ 1.1 | $ 1.7 |
Derivatives | 0.7 | 7.9 |
Total assets | 1.8 | 9.6 |
Liabilities: | ||
Derivatives | 3.9 | 2.9 |
Option agreement | 1.7 | 1.7 |
Total liabilities | 5.6 | 4.6 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Assets: | ||
Available-for-sale securities | 1.1 | 1.7 |
Derivatives | 0 | 0 |
Total assets | 1.1 | 1.7 |
Liabilities: | ||
Derivatives | 0 | 0 |
Option agreement | 0 | 0 |
Total liabilities | 0 | 0 |
Significant Other Observable Inputs (Level 2) | ||
Assets: | ||
Available-for-sale securities | 0 | 0 |
Derivatives | 0.7 | 7.9 |
Total assets | 0.7 | 7.9 |
Liabilities: | ||
Derivatives | 3.9 | 2.9 |
Option agreement | 0 | 0 |
Total liabilities | 3.9 | 2.9 |
Significant Unobservable Inputs (Level 3) | ||
Assets: | ||
Available-for-sale securities | 0 | 0 |
Derivatives | 0 | 0 |
Total assets | 0 | 0 |
Liabilities: | ||
Derivatives | 0 | 0 |
Option agreement | 1.7 | 1.7 |
Total liabilities | $ 1.7 | $ 1.7 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments - Reconciliation of Level 3 Fair Value (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 25, 2022 |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance at beginning of year | $ (1.7) | $ (1.7) |
Balance at end of year | $ (1.7) | $ (1.7) |
Stock Options, Other Stock Aw_3
Stock Options, Other Stock Awards and Warrants - Narrative (Details) - USD ($) $ / shares in Units, shares in Thousands | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 25, 2022 | Dec. 26, 2021 | Dec. 27, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Common stock, capital shares reserved for future issuance (in shares) | 8,700 | |||
Options expiration period (in years) | 7 years | |||
Compensation expense (income) | $ 71,900,000 | $ 81,300,000 | $ 97,800,000 | |
Stock performance awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation expense (income) | $ 15,800,000 | $ 9,600,000 | $ 26,900,000 | |
Performance measurement period (in years) | 3 years | |||
Percentage of target number of shares, range lower limit | 0% | |||
Percentage of target number of shares, range upper limit | 200% | |||
Share-based payment arrangement, nonvested award, cost not yet recognized, amount | $ 34,000,000 | |||
Weighted average period for recognition of total unrecognized compensation expense | 23 months | |||
Granted (in shares) | 700 | 400 | 200 | |
Stock performance awards | Former CEO | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation expense (income) | $ 7,600,000 | |||
Restricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation expense (income) | $ 47,800,000 | 60,700,000 | $ 50,900,000 | |
Share-based payment arrangement, nonvested award, cost not yet recognized, amount | $ 67,100,000 | |||
Weighted average period for recognition of total unrecognized compensation expense | 23 months | |||
Restrictions lapse period (in years) | 3 years | |||
Restricted Stock | Former CEO | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation expense (income) | 6,000,000 | |||
Restricted stock units (RSUs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation expense (income) | $ 47,800,000 | $ 60,700,000 | $ 50,900,000 | |
Granted (in shares) | 1,200 | 700 | 700 | |
Share-based Payment Arrangement, Option | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation expense (income) | $ 7,000,000 | $ 8,900,000 | $ 18,400,000 | |
Share-based payment arrangement, nonvested award, cost not yet recognized, amount | $ 14,100,000 | |||
Weighted average period for recognition of total unrecognized compensation expense | 23 months | |||
Share-based compensation arrangement by share-based payment award, options (in shares) | 2,300 | 1,800 | 2,900 | 2,800 |
Exercisable (in shares) | 900 | 800 | 2,100 | |
Weighted average remaining contractual term for outstanding options | 4 years 10 months 9 days | 3 years 25 days | ||
Options exercisable, intrinsic value | $ 0 | |||
Options outstanding, intrinsic value | $ 0 | |||
Share-based compensation arrangement by share-based payment award, options, grants in period (in dollars per share) | $ 12.73 | $ 22.10 | $ 21.30 | |
Share-based compensation arrangement by share-based payment award, options, exercises in period, intrinsic value | $ 0 | $ 13,600,000 | $ 16,000,000 | |
Share-based Payment Arrangement, Option | Share-Based Payment Arrangement, Nonemployee | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation expense (income) | $ 1,300,000 | $ 2,100,000 | $ 1,600,000 | |
Granted (in shares) | 28 | 24 | 17 | |
Number of deferred shares (in shares) | 14 | 12 | 10 | |
Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock incentive plans, vesting period | 3 years | |||
Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock incentive plans, vesting period | 5 years |
Stock Options, Other Stock Aw_4
Stock Options, Other Stock Awards and Warrants - Total Compensation Expense Related to Stock Options, Restricted Stock Units and Stock Performance Awards (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 25, 2022 | Dec. 26, 2021 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Allocated share-based compensation (income) expense | $ 71.9 | $ 81.3 | $ 97.8 |
Income tax benefit | 9.2 | 9 | 10.2 |
Allocated share-based compensation expense, net of tax | 62.7 | 72.3 | 87.6 |
Stock performance awards | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Allocated share-based compensation (income) expense | 15.8 | 9.6 | 26.9 |
Restricted stock units (RSUs) | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Allocated share-based compensation (income) expense | 47.8 | 60.7 | 50.9 |
Stock options | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Allocated share-based compensation (income) expense | 7 | 8.9 | 18.4 |
Stock Options Non Employee | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Allocated share-based compensation (income) expense | 1.3 | 2.1 | 1.6 |
Former CEO | Stock performance awards | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Allocated share-based compensation (income) expense | 7.6 | ||
Product development | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Allocated share-based compensation (income) expense | 7 | 4.8 | 3.7 |
Selling, Distribution and Administration | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Allocated share-based compensation (income) expense | $ 64.9 | $ 76.5 | $ 94.1 |
Stock Options, Other Stock Aw_5
Stock Options, Other Stock Awards and Warrants - Activities of Stock Performance Awards and Restricted Stock Units (Details) - $ / shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 25, 2022 | Dec. 26, 2021 | |
Stock performance awards | |||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Outstanding at beginning of year (in shares) | 0.8 | 0.7 | 0.6 |
Granted (in shares) | 0.7 | 0.4 | 0.2 |
Forfeited (in shares) | (0.2) | (0.1) | 0 |
Canceled (in shares) | (0.1) | 0 | (0.1) |
Vested (in shares) | (0.2) | (0.2) | 0 |
Outstanding at end of year (in shares) | 1 | 0.8 | 0.7 |
Weighted average grant-date fair value: | |||
Granted (in dollars per share) | $ 56 | $ 88.77 | $ 96.06 |
Forfeited (in dollars per share) | 74.06 | 80.77 | 0 |
Canceled (in dollars per share) | 56.49 | 0 | 77.33 |
Vested (in dollars per share) | 56.49 | 86.90 | 0 |
Outstanding at end of year (in dollars per share) | $ 70.15 | $ 78.15 | $ 75.74 |
Restricted stock units (RSUs) | |||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Outstanding at beginning of year (in shares) | 1.2 | 1.1 | 1 |
Granted (in shares) | 1.2 | 0.7 | 0.7 |
Forfeited (in shares) | (0.2) | (0.1) | (0.1) |
Vested (in shares) | (0.6) | (0.5) | (0.5) |
Outstanding at end of year (in shares) | 1.6 | 1.2 | 1.1 |
Weighted average grant-date fair value: | |||
Granted (in dollars per share) | $ 56.80 | $ 86.41 | $ 91.06 |
Forfeited (in dollars per share) | 74.22 | 91.18 | 85.88 |
Vested (in dollars per share) | 90.32 | 91.33 | 91.42 |
Outstanding at end of year (in dollars per share) | $ 66.08 | $ 88.85 | $ 91.78 |
Stock Options, Other Stock Aw_6
Stock Options, Other Stock Awards and Warrants - Stock Options Activities (Details) - Share-based Payment Arrangement, Option - $ / shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 25, 2022 | Dec. 26, 2021 | |
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding [Roll Forward] | |||
Outstanding at beginning of year | 1.8 | 2.9 | 2.8 |
Granted (in shares) | 1.4 | 0.6 | 0.6 |
Exercised (in shares) | 0 | (0.8) | (0.5) |
Expired or forfeited (in shares) | (0.9) | (0.9) | 0 |
Outstanding at end of year | 2.3 | 1.8 | 2.9 |
Exercisable at end of year (in shares) | 0.9 | 0.8 | 2.1 |
Weighted average exercise price: | |||
Granted (in dollars per share) | $ 55.92 | $ 94.89 | $ 90.31 |
Exercised (in dollars per share) | 0 | 85.60 | 65.12 |
Expired or forfeited (in dollars per share) | 81.22 | 97.16 | 95.59 |
Outstanding at end of year (in dollars per share) | 75.24 | 93.62 | 92.15 |
Exercisable at end of year (in dollars per share) | $ 93.96 | $ 92.95 | $ 92.05 |
Stock Options, Other Stock Aw_7
Stock Options, Other Stock Awards and Warrants - Options Valuation Assumptions (Details) - Share-based Payment Arrangement, Option | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 25, 2022 | Dec. 26, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate | 4.44% | 1.79% | 0.50% |
Expected dividend yield | 4.95% | 2.95% | 3.01% |
Expected volatility | 38% | 37% | 38% |
Expected option life (in years) | 3 years | 4 years | 4 years |
Pension, Postretirement and P_3
Pension, Postretirement and Postemployment Benefits - Narrative (Details) $ in Millions | 1 Months Ended | 12 Months Ended | |||||
Jan. 01, 2020 | Feb. 29, 2020 USD ($) | Dec. 31, 2019 USD ($) | May 31, 2019 USD ($) | Dec. 31, 2023 USD ($) defined_benefit_pension_plan | Dec. 25, 2022 USD ($) | Dec. 26, 2021 USD ($) | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||
Defined contribution plan, cost | $ 40.9 | $ 39.5 | $ 42.7 | ||||
Defined benefit plans, number of major plans covering non-union employees | defined_benefit_pension_plan | 2 | ||||||
Benefit liabilities | 14.8 | ||||||
Employee retirement age, option one | 65 | ||||||
Employee service period, option one | 5 years | ||||||
Employee retirement age, option two | 55 | ||||||
Employee service period, option two | 10 years | ||||||
Unrecognized gains in pension and post retirement plans | $ 1.4 | ||||||
Expected benefit payment, 2029-2033 | 23.7 | ||||||
Foreign plan | |||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||
Pension expense | 1.3 | 3.1 | 4 | ||||
Projected benefit obligation | 83.4 | 77.8 | |||||
Fair value of plan assets | 78.8 | 71 | |||||
Expected benefit payment, 2024 | 3.2 | ||||||
Expected benefit payment, 2025 | 2.9 | ||||||
Expected benefit payment, 2026 | 3.2 | ||||||
Expected benefit payment, 2027 | 3.4 | ||||||
Expected benefit payment, 2028 | 7.3 | ||||||
Pension | |||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||
Pension expense | 44.9 | 45.5 | 49.3 | ||||
Transfers | $ 19.5 | ||||||
Settlements paid | $ 0.2 | $ 110.8 | |||||
Defined benefit obligations in the amount | 30.1 | ||||||
Expected benefit payment, 2024 | 3.1 | ||||||
Expected benefit payment, 2025 | 3 | ||||||
Expected benefit payment, 2026 | 2.9 | ||||||
Expected benefit payment, 2027 | 2.8 | ||||||
Expected benefit payment, 2028 | 2.7 | ||||||
Expected benefit payment, 2029-2033 | 12 | ||||||
Pension | UNITED STATES | |||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||
Excess assets for U.S. Pension Plan | 20.2 | ||||||
Projected benefit obligation | 30.1 | 30.3 | 41.6 | ||||
Fair value of plan assets | $ 0 | $ 0 | $ 0 |
Pension, Postretirement and P_4
Pension, Postretirement and Postemployment Benefits - Summary of Changes in Projected Benefit Obligation (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 25, 2022 | Dec. 26, 2021 | |
Pension | |||
Change in Projected Benefit Obligation | |||
Interest cost | $ 1.6 | $ 1.1 | $ 1.1 |
Pension | UNITED STATES | |||
Change in Projected Benefit Obligation | |||
Projected benefit obligation — beginning | 30.3 | 41.6 | |
Interest cost | 1.6 | 1.1 | |
Actuarial loss (gain) | 1.5 | (9.3) | |
Benefits paid | (3.3) | (3.1) | |
Plan amendments | 0 | 0 | |
Projected benefit obligation — ending | 30.1 | 30.3 | 41.6 |
Accumulated benefit obligation — ending | 30.1 | 30.3 | |
Change in Plan Assets | |||
Fair value of plan assets — beginning | 0 | 0 | |
Fair value of plan assets — ending | 0 | 0 | 0 |
Reconciliation of Funded Status | |||
Projected benefit obligation | (30.1) | (30.3) | (41.6) |
Fair value of plan assets | 0 | 0 | 0 |
Funded status | (30.1) | (30.3) | |
Unrecognized prior service cost (credit) | 0 | 0 | |
Unrecognized net loss (earnings) | 4.6 | 3.2 | |
Net amount | (25.5) | (27.1) | |
Accrued liabilities | (3) | (3) | |
Other liabilities | (27.1) | (27.3) | |
Accumulated other comprehensive (earnings) loss | 4.6 | 3.2 | |
Postretirement | |||
Change in Projected Benefit Obligation | |||
Interest cost | 1.1 | 0.8 | 0.8 |
Postretirement | UNITED STATES | |||
Change in Projected Benefit Obligation | |||
Projected benefit obligation — beginning | 19.6 | 28.1 | |
Interest cost | 1.1 | 0.8 | |
Actuarial loss (gain) | 1.1 | (7.6) | |
Benefits paid | (1.6) | (1.7) | |
Plan amendments | 0 | 0 | |
Projected benefit obligation — ending | 20.2 | 19.6 | 28.1 |
Accumulated benefit obligation — ending | 20.2 | 19.6 | |
Change in Plan Assets | |||
Fair value of plan assets — beginning | 0 | 0 | |
Fair value of plan assets — ending | 0 | 0 | 0 |
Reconciliation of Funded Status | |||
Projected benefit obligation | (20.2) | (19.6) | (28.1) |
Fair value of plan assets | 0 | 0 | $ 0 |
Funded status | (20.2) | (19.6) | |
Unrecognized prior service cost (credit) | (0.6) | (0.9) | |
Unrecognized net loss (earnings) | (2.6) | (3.8) | |
Net amount | (23.4) | (24.3) | |
Accrued liabilities | (1.5) | (1.5) | |
Other liabilities | (18.7) | (18) | |
Accumulated other comprehensive (earnings) loss | $ (3.2) | $ (4.8) |
Pension, Postretirement and P_5
Pension, Postretirement and Postemployment Benefits - Assumptions used to determine year-end Pension and Postretirement Benefit Obligation (Details) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 25, 2022 | |
Pension | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Weighted average discount rate | 5.23% | 5.61% |
Postretirement | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Weighted average discount rate | 5.20% | 5.58% |
Health care cost trend rate assumed for next year | 6.75% | 7% |
Rate to which the cost trend rate is assumed to decline (ultimate trend rate) | 5% | 5% |
Pension, Postretirement and P_6
Pension, Postretirement and Postemployment Benefits - Components of Net Periodic Benefit Cost (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 25, 2022 | Dec. 26, 2021 | |
Pension | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Service cost | $ 0 | $ 0 | $ 0 |
Interest cost | 1.6 | 1.1 | 1.1 |
Expected return on assets | 0 | 0 | 0 |
Amortization of actuarial loss | 0 | 0.8 | 1 |
Curtailment/Settlement losses | 0 | 0 | 0.5 |
Net periodic benefit cost (income) | 1.6 | 1.9 | 2.6 |
Postretirement | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Interest cost | 1.1 | 0.8 | 0.8 |
Amortization of prior service cost | (0.3) | (0.3) | 0 |
Amortization of actuarial loss | (0.2) | 0.1 | 0 |
Net periodic benefit cost (income) | $ 0.6 | $ 0.6 | $ 0.8 |
Pension, Postretirement and P_7
Pension, Postretirement and Postemployment Benefits - Assumptions used to determine Net Periodic Benefit Cost of Pension Plan and Postretirement Plan (Details) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 25, 2022 | Dec. 26, 2021 | |
Pension | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Weighted average discount rate | 5.61% | 2.91% | 2.51% |
Postretirement | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Weighted average discount rate | 5.58% | 3.03% | 2.72% |
Health care cost trend rate assumed for next year | 7% | 6% | 6.25% |
Rate to which the cost trend rate is assumed to decline (ultimate trend rate) | 5% | 5% | 5% |
Pension, Postretirement and P_8
Pension, Postretirement and Postemployment Benefits - Expected Benefit Payments (Details) $ in Millions | Dec. 31, 2023 USD ($) |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
2029-2033 | $ 23.7 |
Pension | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
2024 | 3.1 |
2025 | 3 |
2026 | 2.9 |
2027 | 2.8 |
2028 | 2.7 |
2029-2033 | 12 |
Postretirement | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
2024 | 1.6 |
2025 | 1.6 |
2026 | 1.5 |
2027 | 1.5 |
2028 | 1.5 |
2029-2033 | $ 6.8 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 25, 2022 | Dec. 26, 2021 | |
Lessee, Lease, Description [Line Items] | |||
Rent expense | $ 88.2 | $ 93.9 | $ 89.5 |
Minimum | |||
Lessee, Lease, Description [Line Items] | |||
Remaining lease terms | 1 year | ||
Maximum | |||
Lessee, Lease, Description [Line Items] | |||
Remaining lease terms | 15 years |
Leases - Lease Cost (Details)
Leases - Lease Cost (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 25, 2022 | Dec. 26, 2021 | |
Leases [Abstract] | |||
Operating cash flows from operating leases | $ 48.6 | $ 52.4 | $ 53.4 |
Right-of-use assets obtained in exchange for lease obligations, Operating leases, net of lease modifications | $ 87.8 | $ 5.8 | $ 28.4 |
Weighted average remaining lease term, operating leases | 7 years 1 month 6 days | 4 years 4 months 24 days | 5 years 7 months 6 days |
Weighted average discount rate, operating lease | 3.80% | 3.40% | 3% |
Leases - Maturities of Operatin
Leases - Maturities of Operating Lease Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 25, 2022 |
Leases [Abstract] | ||
2024 | $ 45.2 | |
2025 | 40.3 | |
2026 | 33 | |
2027 | 22.8 | |
2028 | 18.2 | |
2029 and thereafter | 52.5 | |
Total future lease payments | 212 | |
Less imputed interest | 60.4 | |
Present value of future operating lease payments | 151.6 | |
Current lease liability | 30.5 | $ 39.6 |
Non-current operating lease liability | 121.1 | |
Operating lease right-of-use asset, net | $ 126.7 | |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Accrued Liabilities, Current | Accrued Liabilities, Current |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Other Liabilities, Noncurrent | |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Property, Plant, and Equipment and Finance Lease Right-of-Use Asset, after Accumulated Depreciation and Amortization |
Derivative Financial Instrume_3
Derivative Financial Instruments - Cash Flow Hedging Instruments (Details) - Designated as hedging instrument - Cash flow hedging - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 25, 2022 |
Derivative [Line Items] | ||
Notional Amount | $ 251.3 | $ 382.3 |
Fair Value | (2.4) | 0 |
Inventory purchases | ||
Derivative [Line Items] | ||
Notional Amount | 129.9 | 166.3 |
Fair Value | (1.7) | (2.7) |
Sales | ||
Derivative [Line Items] | ||
Notional Amount | 89.7 | 99.2 |
Fair Value | (0.2) | 1.2 |
Production financing and other | ||
Derivative [Line Items] | ||
Notional Amount | 31.7 | 116.8 |
Fair Value | $ (0.5) | $ 1.5 |
Derivative Financial Instrume_4
Derivative Financial Instruments - Statements of Financial Performance and Financial Position (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 25, 2022 |
Derivative [Line Items] | ||
Derivative Liability, Statement of Financial Position [Extensible Enumeration] | Accrued Liabilities, Current | Accrued Liabilities, Current |
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Prepaid expenses and other current assets, Assets, Noncurrent, Excluding Property, Plant, and Equipment and Finance Lease Right-of-Use Asset, after Accumulated Depreciation and Amortization | Prepaid expenses and other current assets, Assets, Noncurrent, Excluding Property, Plant, and Equipment and Finance Lease Right-of-Use Asset, after Accumulated Depreciation and Amortization |
Designated as hedging instrument | Prepaid expenses and other current assets | ||
Derivative [Line Items] | ||
Unrealized gains | $ 0.5 | $ 4.3 |
Unrealized losses | (0.1) | (1.8) |
Net unrealized gain (loss) | 0.4 | 2.5 |
Designated as hedging instrument | Other assets | ||
Derivative [Line Items] | ||
Unrealized gains | 0 | 0.3 |
Unrealized losses | 0 | 0 |
Net unrealized gain (loss) | 0 | 0.3 |
Designated as hedging instrument | Accrued liabilities | ||
Derivative [Line Items] | ||
Unrealized gains | 0.7 | 1.6 |
Unrealized losses | (3.5) | (4.4) |
Net unrealized gain (loss) | $ (2.8) | $ (2.8) |
Derivative Financial Instrume_5
Derivative Financial Instruments - Derivative Financial Instruments (Details) - Cash flow hedging - Foreign exchange forward - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 25, 2022 | Dec. 26, 2021 | |
Derivative [Line Items] | |||
Effective portion, amount of net gains (losses) reclassified from other comprehensive earnings into earnings | $ (3.1) | $ 18.7 | $ (1.7) |
Cost of sales | |||
Derivative [Line Items] | |||
Effective portion, amount of net gains (losses) reclassified from other comprehensive earnings into earnings | (1.1) | 17.3 | (4.7) |
Sales | |||
Derivative [Line Items] | |||
Effective portion, amount of net gains (losses) reclassified from other comprehensive earnings into earnings | 0.2 | 2.3 | 1 |
Other | |||
Derivative [Line Items] | |||
Effective portion, amount of net gains (losses) reclassified from other comprehensive earnings into earnings | $ (2.2) | $ (0.9) | $ 2 |
Derivative Financial Instrume_6
Derivative Financial Instruments - Narrative (Details) - Fair value hedging - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 25, 2022 | Dec. 26, 2021 | |
Foreign currency forward contract | Not designated as hedging instrument | |||
Derivative [Line Items] | |||
Notional Amount | $ 340.5 | $ 765.6 | |
Foreign exchange forward | |||
Derivative [Line Items] | |||
Other (income) expense | $ 23.4 | $ 42.1 | $ 4.6 |
Derivative Financial Instrume_7
Derivative Financial Instruments - Fair Value of Undesignated Derivate Financial Instruments (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 25, 2022 |
Not designated as hedging instrument | ||
Derivative [Line Items] | ||
Net unrealized gain (loss) | $ (0.8) | $ 5 |
Not designated as hedging instrument | Prepaid expenses and other current assets | ||
Derivative [Line Items] | ||
Unrealized gains | 0.3 | 10.9 |
Unrealized losses | 0 | (5.9) |
Not designated as hedging instrument | Accrued liabilities | ||
Derivative [Line Items] | ||
Unrealized gains | 1.4 | 0 |
Unrealized losses | (2.5) | 0 |
Designated as hedging instrument | Prepaid expenses and other current assets | ||
Derivative [Line Items] | ||
Unrealized gains | 0.5 | 4.3 |
Unrealized losses | (0.1) | (1.8) |
Net unrealized gain (loss) | 0.4 | 2.5 |
Designated as hedging instrument | Prepaid expenses and other current assets | Foreign exchange forward | ||
Derivative [Line Items] | ||
Net unrealized gain (loss) | 0.3 | 5 |
Designated as hedging instrument | Accrued liabilities | ||
Derivative [Line Items] | ||
Unrealized gains | 0.7 | 1.6 |
Unrealized losses | (3.5) | (4.4) |
Net unrealized gain (loss) | (2.8) | (2.8) |
Designated as hedging instrument | Accrued liabilities | Foreign exchange forward | ||
Derivative [Line Items] | ||
Net unrealized gain (loss) | $ (1.1) | $ 0 |
Restructuring Actions - Additio
Restructuring Actions - Additional Information (Details) $ in Millions | 1 Months Ended | 12 Months Ended | ||
Dec. 31, 2023 USD ($) position | Jan. 31, 2023 position | Dec. 31, 2023 USD ($) | Dec. 25, 2022 USD ($) | |
2018 and 2020 Restructuring Actions | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Payments for restructuring | $ 2.6 | |||
2018 and 2020 Restructuring Actions | Employee Severance | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring reserve | $ 2.5 | 2.5 | ||
Operational Excellence Program | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring reserve | $ 81.2 | 81.2 | $ 84.9 | |
Payments for restructuring | $ 41.9 | |||
Number of positions eliminated | position | 1,000 | |||
Number of positions eliminated, percent | 15% | |||
Number of expected positions eliminated | position | 900 | |||
Operational Excellence Program | Maximum | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Expected positions eliminated, period | 24 months | |||
Operational Excellence Program | Minimum | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Expected positions eliminated, period | 18 months |
Restructuring Actions - Schedul
Restructuring Actions - Schedule of Restructuring and Related Costs (Details) - Operational Excellence Program $ in Millions | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Restructuring Reserve [Roll Forward] | |
Beginning balance | $ 84.9 |
2023 charges | 38.2 |
2023 payments | (41.9) |
Ending balance | $ 81.2 |
Restructuring Actions - Sched_2
Restructuring Actions - Schedule of Restructuring Charges (Details) - Operational Excellence Program $ in Millions | Dec. 31, 2023 USD ($) |
Restructuring Cost and Reserve [Line Items] | |
Charges incurred to date | $ 132.3 |
Estimated charges to be incurred on approved initiatives | 0 |
Total expected charges on approved initiatives | $ 132.3 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 25, 2022 |
Other Commitments [Line Items] | ||
Unused open letters of credit and related instruments | $ 13.3 | $ 11.9 |
Interest payment obligation in 2024 | 145.9 | |
Interest payment obligation in 2025 | 130.9 | |
Interest payment obligation in 2026 | 130.9 | |
Interest payment obligation in 2027 | 104 | |
Interest payment obligation in 2028 | 87 | |
Interest payment obligation, thereafter | 632.1 | |
Purchase commitments | 157.3 | |
Royalties | ||
Other Commitments [Line Items] | ||
Purchase obligation to be paid in 2024 | 108.6 | |
Purchase obligation to be paid in 2025 | 103.5 | |
Purchase obligation to be paid in 2026 | 73.2 | |
Purchase obligation to be paid in 2027 | 34 | |
Purchase obligation to be paid in 2028 | 5 | |
Purchase obligation to be paid, thereafter | 5 | |
Prepaid royalties | 19 | |
Entertainment Projects or Content Agreements | ||
Other Commitments [Line Items] | ||
Purchase obligation to be paid in 2024 | 3.9 | |
Purchase obligation to be paid in 2025 | 1.5 | |
Tax sharing agreement | ||
Other Commitments [Line Items] | ||
Tax sharing agreements, future payments | 9.9 | |
Tax sharing agreements, annual payment, minimum | 0.4 | |
Tax sharing agreements, annual payment, maximum | $ 6.4 |
Segment Reporting - Information
Segment Reporting - Information and Reconciliation by Segment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 25, 2022 | Dec. 26, 2021 | |
Segment Reporting Information [Line Items] | |||
Net revenues | $ 5,003.3 | $ 5,856.7 | $ 6,420.4 |
Depreciation and Amortization | 210.7 | 232.5 | 280.1 |
Capital Additions | 209.3 | 174.2 | 132.7 |
Total Assets | 6,540.9 | 9,295.9 | 10,037.8 |
Nonrelated Party | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 5,003.3 | 5,856.7 | 6,420.4 |
Affiliated Entity | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 0 | 0 | 0 |
Corporate and Other | |||
Segment Reporting Information [Line Items] | |||
Depreciation and Amortization | 24.4 | 21.6 | 22.6 |
Capital Additions | 26.4 | 27.8 | 18.3 |
Total Assets | (7,763.5) | (5,703.8) | (2,525.6) |
Corporate and Other | Nonrelated Party | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 0 | 0 | 0 |
Corporate and Other | Affiliated Entity | |||
Segment Reporting Information [Line Items] | |||
Net revenues | (515.3) | (626.7) | (648.5) |
Consumer Products | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Depreciation and Amortization | 130 | 152.5 | 112.4 |
Capital Additions | 60 | 87 | 73.1 |
Total Assets | 6,456.2 | 5,757.7 | 4,925.5 |
Consumer Products | Operating Segments | Nonrelated Party | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 2,886.4 | 3,572.5 | 3,981.6 |
Consumer Products | Operating Segments | Affiliated Entity | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 279.9 | 396.7 | 465.4 |
Wizards of the Coast and Digital Gaming | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 1,457.6 | 1,325.1 | 1,286.6 |
Wizards of the Coast and Digital Gaming | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Depreciation and Amortization | 27.8 | 14.6 | 48.5 |
Capital Additions | 122.5 | 52.5 | 35.1 |
Total Assets | 4,340.5 | 2,968.7 | 1,585.1 |
Wizards of the Coast and Digital Gaming | Operating Segments | Nonrelated Party | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 1,457.6 | 1,325.1 | 1,286.6 |
Wizards of the Coast and Digital Gaming | Operating Segments | Affiliated Entity | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 183.6 | 172.5 | 121.6 |
Entertainment | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 659.3 | 959.1 | 1,152.2 |
Entertainment | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Depreciation and Amortization | 28.5 | 43.8 | 96.6 |
Capital Additions | 0.4 | 6.9 | 6.2 |
Total Assets | 3,507.7 | 6,273.3 | 6,052.8 |
Entertainment | Operating Segments | Nonrelated Party | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 659.3 | 959.1 | 1,152.2 |
Entertainment | Operating Segments | Affiliated Entity | |||
Segment Reporting Information [Line Items] | |||
Net revenues | $ 51.8 | $ 57.5 | $ 61.5 |
Segment Reporting - Operating P
Segment Reporting - Operating Profit (Loss) by Segments (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 25, 2022 | Dec. 26, 2021 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Operating profit (loss) | $ (1,538.8) | $ 407.7 | $ 763.3 |
Interest expense | 186.3 | 171 | 179.7 |
Interest income | (23) | (11.8) | (5.4) |
Other non-operating expense (income) | 7 | (13) | 7.1 |
Earnings (loss) before income taxes | (1,709.1) | 261.5 | 581.9 |
Corporate and Other | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Operating profit (loss) | (88.3) | (370.6) | (93.3) |
Transformation office and consulting fees | 24.7 | ||
Corporate and Other | Operational Excellence Program | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Transformation office and consulting fees | 35.3 | ||
Consumer Products | Operating Segments | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Operating profit (loss) | (64.7) | 217.3 | 401.4 |
Wizards of the Coast and Digital Gaming | Operating Segments | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Operating profit (loss) | 525.7 | 538.3 | 547 |
Entertainment | Operating Segments | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Operating profit (loss) | $ (1,911.5) | $ 22.7 | $ (91.8) |
Segment Reporting - Net Revenue
Segment Reporting - Net Revenues by Geographic Regions (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 25, 2022 | Dec. 26, 2021 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net revenues | $ 5,003.3 | $ 5,856.7 | $ 6,420.4 |
Reportable geographical components | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net revenues | 2,886.4 | 3,572.5 | 3,981.6 |
North America | Reportable geographical components | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net revenues | 1,649.1 | 2,064.8 | 2,315.9 |
Europe | Reportable geographical components | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net revenues | 669.5 | 899.5 | 1,067.7 |
Asia Pacific | Reportable geographical components | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net revenues | 256.3 | 293.4 | 310.1 |
Latin America | Reportable geographical components | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net revenues | $ 311.5 | $ 314.8 | $ 287.9 |
Segment Reporting - Net Reven_2
Segment Reporting - Net Revenues by Category (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 25, 2022 | Dec. 26, 2021 | |
Revenue from External Customer [Line Items] | |||
Net revenues | $ 5,003.3 | $ 5,856.7 | $ 6,420.4 |
Wizards of the Coast and Digital Gaming | |||
Revenue from External Customer [Line Items] | |||
Net revenues | 1,457.6 | 1,325.1 | 1,286.6 |
Wizards of the Coast and Digital Gaming | Tabletop Gaming | |||
Revenue from External Customer [Line Items] | |||
Net revenues | 1,072.5 | 1,067 | 950.6 |
Wizards of the Coast and Digital Gaming | Digital and Licensed Gaming | |||
Revenue from External Customer [Line Items] | |||
Net revenues | 385.1 | 258.1 | 336 |
Entertainment | |||
Revenue from External Customer [Line Items] | |||
Net revenues | 659.3 | 959.1 | 1,152.2 |
Entertainment | Film and TV | |||
Revenue from External Customer [Line Items] | |||
Net revenues | 575.5 | 837.6 | 932.5 |
Entertainment | Family Brands | |||
Revenue from External Customer [Line Items] | |||
Net revenues | 83.8 | 79.4 | 132.9 |
Entertainment | Music and Other | |||
Revenue from External Customer [Line Items] | |||
Net revenues | $ 0 | $ 42.1 | $ 86.8 |
Segment Reporting - Net Reven_3
Segment Reporting - Net Revenues by Brand Portfolio (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 25, 2022 | Dec. 26, 2021 | |
Revenue from External Customer [Line Items] | |||
Net revenues | $ 5,003.3 | $ 5,856.7 | $ 6,420.4 |
Franchise Brands | |||
Revenue from External Customer [Line Items] | |||
Net revenues | 3,256.5 | 3,350.8 | 3,541.9 |
Partner Brands | |||
Revenue from External Customer [Line Items] | |||
Net revenues | 687.8 | 1,052 | 1,161 |
Portfolio Brands | |||
Revenue from External Customer [Line Items] | |||
Net revenues | 521.3 | 625.2 | 719.8 |
Non-Hasbro Branded Film & TV | |||
Revenue from External Customer [Line Items] | |||
Net revenues | 537.7 | 828.7 | 997.7 |
Total Gaming | |||
Revenue from External Customer [Line Items] | |||
Net revenues | 2,074.4 | 1,997.5 | 2,098.9 |
MAGIC: THE GATHERING | |||
Revenue from External Customer [Line Items] | |||
Net revenues | $ 1,085.8 | $ 1,065.2 | $ 992.1 |
Segment Reporting - Geographic
Segment Reporting - Geographic Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 25, 2022 | Dec. 26, 2021 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net revenues | $ 5,003.3 | $ 5,856.7 | $ 6,420.4 |
Long-lived assets | 3,355.3 | 4,707.6 | 5,012.6 |
UNITED STATES | Operating Segments | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net revenues | 3,010.1 | 3,544.2 | 3,898.9 |
Long-lived assets | 1,153.7 | 1,042.3 | 1,359.6 |
International | Operating Segments | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net revenues | 1,993.2 | 2,312.5 | 2,521.5 |
Long-lived assets | $ 2,201.6 | $ 3,665.3 | $ 3,653 |
Segment Reporting - Other Infor
Segment Reporting - Other Information (Details) - Revenue Benchmark - Customer Concentration Risk | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 25, 2022 | Dec. 26, 2021 | |
Wal-mart stores, Inc. | |||
Product Information [Line Items] | |||
Concentration risk, percentage | 11% | 11% | 13% |
Amazon.com | |||
Product Information [Line Items] | |||
Concentration risk, percentage | 11% | 10% | 11% |
Schedule II Valuation and Qua_2
Schedule II Valuation and Qualifying Accounts (Details) - Accounts receivable allowances - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 25, 2022 | Dec. 26, 2021 | |
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Year | $ 20 | $ 22.9 | $ 33.6 |
Expense (Benefit) | 4.2 | 7.9 | 5.3 |
Other Additions | 0 | 0 | 0 |
Write-Offs and Other | (11.5) | (10.8) | (16) |
Balance at End of Year | $ 12.7 | $ 20 | $ 22.9 |