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Revenue Recognition | 12 Months Ended
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Dec. 29, 2024
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, location based entertainment, 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 opening and closing balances of contract assets and contract liabilities are as follows:
(In millions) | 2024 |  | 2023 |  |
Contract Assets |  |  |  |  |
Balance at beginning of the year | $ | 213.3 |  |  | $ | 594.4 |  |  |
Ending Balance | $ | 241.4 |  |  | $ | 213.3 |  |  |
Contract Liabilities |  |  |  |  |
Balance at beginning of the year | $ | 230.8 |  |  | $ | 113.0 |  |  |
Ending Balance | $ | 236.8 |  |  | $ | 230.8 |  |  |
The increase in contract assets during 2024 is the result of an increase in the amount of revenues recognized in advance of contractual invoicing, offset by the impact of previously unbilled revenues that were invoiced throughout the period within the ordinary course of business. The decrease in contract assets during 2023 is the result of the disposal of $402.3 million of contract assets in connection with the sale of the eOne Film and TV business (refer to Note 3), partially offset by invoicing activity and foreign currency impacts. The increase in contract liabilities during 2023 and 2024 is primarily the result of an increase in the amount of advanced payments received from customers relating to performance obligations that had not yet been satisfied, offset by $134.2 million of revenue recognized that were included in contract liabilities balance as of December 31, 2023. Revenue recognized as of December 31, 2023 related to the contract liability balance as of December 25, 2022 was $89.9 million. The increase in contract liabilities during 2023 was also partially offset by $25.8 million of contract liabilities that were disposed in connection with the sale of the eOne Film and TV business (refer to Note 3). 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 29, 2024, unrecognized revenue attributable to unsatisfied performance obligations expected to be recognized in the future was $2.6 million, all of which we expect to recognize in 2025. This amount includes 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 29, 2024 and December 31, 2023 are primarily from contracts with customers. A summary of the activity in the allowance for credit losses is as follows:
(In millions) | 2024 |  | 2023
Balance at beginning of the year | $ | 12.7 |  |  | $ | 20.0 |
Provisions/charges to income | 18.9 |  |  | 4.2 |
Amounts charged off and other deductions | (4.6) |  |  | (12.2) |
Foreign currency impact | (1.2) |  |  | 0.7 |
Ending balance | $ | 25.8 |  |  | $ | 12.7 |
Disaggregation of revenues The Company disaggregates its revenues from contracts with customers by operating 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 three brand categories: Franchise Brands, Partner Brands and Portfolio Brands. We believe these collectively depict how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors. In 2024, 2023, and 2022 the Company’s largest customers were Wal-Mart, Inc. and Amazon.com, Inc. with sales to each of these customers amounting to 12% and 11% of consolidated net revenues in 2024, respectively. In 2023, sales to each of these customers amounted to 11% of consolidated net revenues. In 2022, sales to these customers amounted to 11% and 10%, respectively, of consolidated net revenues. Net revenues from the Company’s major customers are reported within the Consumer Products segment, Wizards of the Coast and Digital Gaming segment and the Entertainment segment. Effective in the first quarter of 2024, subsequent to the sale of the eOne Film and TV business, the Company moved the remaining Non-Hasbro Branded Film & TV brands into Portfolio Brands to align with the Company's Brand Strategy. For comparability, net revenues as of December 31, 2023 have been reclassified to reflect the movement, resulting in a change of $0.5 million. The following table represents consolidated Consumer Products segment net revenues by major geographic region:
(In millions) | 2024 |  | 2023 |  | 2022
North America | $ | 1,493.0 |  |  | $ | 1,649.1 |  |  | $ | 2,064.8 |
Europe | 519.7 |  |  | 669.5 |  |  | 899.5 |
Asia Pacific | 286.7 |  |  | 256.3 |  |  | 293.4 |
Latin America | 244.5 |  |  | 311.5 |  |  | 314.8 |
Net revenues | $ | 2,543.9 |  |  | $ | 2,886.4 |  |  | $ | 3,572.5 |
The following table represents consolidated Wizards of the Coast and Digital Gaming segment net revenues by category:
(In millions) | 2024 |  | 2023 |  | 2022
Tabletop Gaming | $ | 1,039.6 |  |  | $ | 1,072.5 |  |  | $ | 1,067.0 |
Digital and Licensed Gaming | 471.7 |  |  | 385.1 |  |  | 258.1 |
Net revenues | $ | 1,511.3 |  |  | $ | 1,457.6 |  |  | $ | 1,325.1 |
The following table represents consolidated Entertainment segment net revenues by category:
(In millions) | 2024 |  | 2023 |  | 2022
Film and TV (1) | $ | 6.6 |  |  | $ | 575.5 |  |  | $ | 837.6 |
Family Brands | 73.7 |  |  | 83.8 |  |  | 79.4 |
Music and Other | — |  |  | — |  |  | 42.1 |
Net revenues | $ | 80.3 |  |  | $ | 659.3 |  |  | $ | 959.1 |
(1) Net revenues from the Company's Non-Hasbro-branded Film and TV portfolio were associated with the Company's eOne Film and TV business sold to Lionsgate during the fourth quarter of 2023. The following table presents consolidated net revenues by brand portfolio:
(In millions) | 2024 |  | 2023 |  | 2022
Franchise Brands | $ | 3,120.9 |  |  | $ | 3,256.5 |  |  | $ | 3,350.8 |
Partner Brands | 583.4 |  |  | 687.8 |  |  | 1,052.0 |
Portfolio Brands | 431.2 |  |  | 521.8 |  |  | 625.2 |
Non-Hasbro Branded Film & TV | — |  |  | 537.2 |  |  | 828.7 |
Net revenues | $ | 4,135.5 |  |  | $ | 5,003.3 |  |  | $ | 5,856.7 |

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- Definition The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 9 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-9 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 10 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-10 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-15 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Subparagraph (b)(2) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-13 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Name Accounting Standards Codification -Topic 606 -Publisher FASB -URI https://asc.fasb.org/606/tableOfContent + Details
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