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Segment Reporting | 12 Months Ended
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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 from External Customers |  | Affiliate Revenue |  | Depreciation and Amortization |  | Capital Additions |  | Total Assets
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 & DRAGONS, MAGIC: THE GATHERING and Hasbro Gaming, totaled $2,074.4 million, $1,997.5 million and $2,098.9 million for the years ended December 31, 2023, December 25, 2022 and December 26, 2021, respectively, of which MAGIC: THE GATHERING contributed $1,085.8 million, $1,065.2 million and $992.1 million. 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.

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 22 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-22 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-15 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 31 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-31 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 42 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-42 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 40 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-40 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//280/tableOfContent Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 26 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-26 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 34 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-34 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 41 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-41 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 + Details
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