XML 49 R36.htm IDEA: XBRL DOCUMENT
v3.24.2

Segment Reporting (Tables) | 6 Months Ended
--- | ---
Jun. 30, 2024
Segment Reporting [Abstract] |
Schedule of Information by Segment and Reconciliation to Reported Amounts | Information by segment and a reconciliation to reported amounts for the three and six months ended June 30, 2024 and July 2, 2023 are as follows:
| Three Months Ended |  | Six Months Ended
| June 30, 2024 |  | July 2, 2023 |  | June 30, 2024 |  | July 2, 2023
Net revenues: |  |  |  |  |  |  |
Consumer Products | $ | 524.5 |  |  | $ | 655.2 |  |  | $ | 937.5 |  |  | $ | 1,175.6 |
Wizards of the Coast and Digital Gaming | 452.0 |  |  | 375.6 |  |  | 768.3 |  |  | 670.8 |
Entertainment | 18.8 |  |  | 179.2 |  |  | 46.8 |  |  | 364.6 |
Corporate and Other | — |  |  | — |  |  | — |  |  | — |
Total net revenues | $ | 995.3 |  |  | $ | 1,210.0 |  |  | $ | 1,752.6 |  |  | $ | 2,211.0 |
Intercompany revenues: (1) |  |  |  |  |  |  |
Consumer Products | $ | 64.7 |  |  | $ | 80.8 |  |  | $ | 104.0 |  |  | $ | 145.2 |
Wizards of the Coast and Digital Gaming | 36.0 |  |  | 45.2 |  |  | 73.9 |  |  | 52.9 |
Entertainment | 12.0 |  |  | 11.4 |  |  | 20.5 |  |  | 12.8 |
Corporate and Other | (112.7) |  |  | (137.4) |  |  | (198.4) |  |  | (210.9) |
Total intercompany revenues: | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Operating profit (loss): |  |  |  |  |  |  |
Consumer Products (2) | $ | (9.3) |  |  | $ | 11.4 |  |  | $ | (56.2) |  |  | $ | (34.6) |
Wizards of the Coast and Digital Gaming | 247.1 |  |  | 142.3 |  |  | 369.9 |  |  | 219.1 |
Entertainment (3) | (1.0) |  |  | (324.2) |  |  | 4.8 |  |  | (332.9) |
Corporate and Other (3) (4) | (24.7) |  |  | (18.1) |  |  | 9.8 |  |  | (22.3) |
Total Operating profit (loss) | 212.1 |  |  | (188.6) |  |  | 328.3 |  |  | (170.7) |
Interest expense | 43.0 |  |  | 46.6 |  |  | 81.5 |  |  | 92.9 |
Interest income | (13.0) |  |  | (5.8) |  |  | (21.3) |  |  | (11.8) |
Other non-operating expense (income) | (0.8) |  |  | (1.5) |  |  | 4.2 |  |  | (2.9) |
Earnings (loss) before income taxes | $ | 182.9 |  |  | $ | (227.9) |  |  | $ | 263.9 |  |  | $ | (248.9) |
(1) Amounts represent revenues from transactions with other operating segments that are included in the operating profit (loss) of the segment. (2) During the three months ended June 30, 2024, the Company recorded two non-recurring prior year adjustments: (i) a $31.1 million expense related to historical environmental exposures, and (ii) a $26.7 million benefit related to over-accrual of vendor commitment liabilities. See Note 1 for further information. Both of these originally related to the Consumer Products segment; however, because the non-recurring nature of these adjustments are related to historical periods and not associated with the on-going future operations of the Consumer Products segment, the Company recorded the error corrections within the Corporate and Other segment. (3) 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. (4) Corporate and Other Operating profit (loss) includes Operational Excellence related transformation office and consulting fees of $7.3 million and $12.5 million for the three and six months ended June 30, 2024, respectively, and $10.4 million and $21.0 million for the three and six months ended July 2, 2023, respectively, 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 within 2024 in line with the transformation plans.

X
- Definition Tabular disclosure of all significant reconciling items in the reconciliation of total revenues from reportable segments to the entity's consolidated revenues. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-31 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-30 + Details
Name: | us-gaap_ReconciliationOfRevenueFromSegmentsToConsolidatedTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_SegmentReportingAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration