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Segment Reporting | 6 Months Ended
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Jun. 29, 2025
Segment Reporting [Abstract] |
Segment Reporting | Segment Reporting The Company's reportable segments are strategic business units that offer different products and services. They are managed separately because the business requires different technology and marketing strategies. The Company's reportable segments are as follows: •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 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 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 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. Corporate and Other, which does not meet the criteria to be an operating segment, provides management and administrative services to the Company's principal reporting segments described above and consists of unallocated corporate expenses and administrative costs and activities not considered when evaluating segment performance as well as certain assets benefiting more than one segment. Segment performance is measured at the operating profit level. 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. Information by segment and a reconciliation to reported amounts for the three months ended June 29, 2025 are as follows:
|  | Wizards of the Coast and Digital Gaming |  | Consumer Products |  | Entertainment |  | Corporate and Other |  | Total
Revenues |  | $ | 571.2 |  |  | $ | 493.4 |  |  | $ | 28.1 |  |  | $ | 41.2 |  |  | $ | 1,133.9 |
Less: Intersegment revenue |  | 48.8 |  |  | 51.0 |  |  | 12.1 |  |  | 41.2 |  |  | 153.1 |
Total net revenues |  | 522.4 |  |  | 442.4 |  |  | 16.0 |  |  | — |  |  | 980.8 |
Cost of sales |  | 78.2 |  |  | 145.5 |  |  | 1.6 |  |  | — |  |  | 225.3 |
Program cost amortization |  | — |  |  | — |  |  | 6.2 |  |  | — |  |  | 6.2 |
Royalties |  | 40.6 |  |  | 56.7 |  |  | (11.5) |  |  | (1.3) |  |  | 84.5 |
Advertising |  | 26.8 |  |  | 36.6 |  |  | 0.1 |  |  | 0.1 |  |  | 63.6 |
Amortization of intangible assets |  | 2.1 |  |  | 10.1 |  |  | 4.9 |  |  | 0.1 |  |  | 17.2 |
Distribution (1) |  | 10.9 |  |  | 33.3 |  |  | — |  |  | 0.9 |  |  | 45.1 |
Managed expense (2) |  | 121.9 |  |  | 1,189.7 |  |  | 8.6 |  |  | 16.9 |  |  | 1,337.1 |
Operating profit (loss) |  | $ | 241.9 |  |  | $ | (1,029.5) |  |  | $ | 6.1 |  |  | $ | (16.7) |  |  | $ | (798.2) |
Reconciliation to Earnings (loss) before income taxes: |  |  |  |  |  |  |  |  |  |
Interest expense |  |  |  |  |  |  |  |  |  | 40.6 |
Interest income |  |  |  |  |  |  |  |  |  | (5.4) |
Other (income) expense, net |  |  |  |  |  |  |  |  |  | (18.7) |
Earnings before income taxes |  |  |  |  |  |  |  |  |  | $ | (814.7) |
(1) Distribution expenses consist of shipping and warehousing expense and is included in Selling, distribution and administration in the Consolidated Statement of Operations. (2) Managed expenses consist of product development, selling and administrative expense and impairment of goodwill. Product development is included in Product Development in the Consolidated Statement of Operations. Selling and administrative expense is included in Selling, distribution and administration in the Consolidated Statement of Operations. Impairment of goodwill is included in Impairment of goodwill in the Consolidated Statement of Operations. Managed expenses for the Consumer Products segment included a $1021.9 million non-cash loss associated with the impairment of the reporting units within the Consumer Products segment. See Note 5, Goodwill, to the consolidated financial statements for further information. Information by segment and a reconciliation to reported amounts for the three months ended June 30, 2024 are as follows:
|  | Wizards of the Coast and Digital Gaming |  | Consumer Products |  | Entertainment |  | Corporate and Other |  | Total
Revenues |  | $ | 488.0 |  |  | $ | 589.2 |  |  | $ | 30.8 |  |  | $ | 34.2 |  |  | $ | 1,142.2 |
Less: Intersegment revenue |  | 36.0 |  |  | 64.7 |  |  | 12.0 |  |  | 34.2 |  |  | 146.9 |
Total net revenues |  | 452.0 |  |  | 524.5 |  |  | 18.8 |  |  | — |  |  | 995.3 |
Cost of sales (1) |  | 67.8 |  |  | 194.6 |  |  | 1.9 |  |  | (26.6) |  |  | 237.7 |
Program cost amortization |  | — |  |  | — |  |  | 8.5 |  |  | — |  |  | 8.5 |
Royalties |  | 10.7 |  |  | 61.1 |  |  | (17.2) |  |  | 0.7 |  |  | 55.3 |
Advertising |  | 20.2 |  |  | 38.0 |  |  | 0.1 |  |  | 2.1 |  |  | 60.4 |
Amortization of intangible assets |  | 2.0 |  |  | 11.1 |  |  | 3.8 |  |  | 0.2 |  |  | 17.1 |
Distribution (2) |  | 7.7 |  |  | 39.0 |  |  | — |  |  | (0.1) |  |  | 46.6 |
Managed expense (1) (3) |  | 96.5 |  |  | 190.0 |  |  | 22.7 |  |  | 48.4 |  |  | 357.6 |
Operating profit (loss) |  | $ | 247.1 |  |  | $ | (9.3) |  |  | $ | (1.0) |  |  | $ | (24.7) |  |  | $ | 212.1 |
Reconciliation to Earnings (loss) before income taxes: |  |  |  |  |  |  |  |  |  |
Interest expense |  |  |  |  |  |  |  |  |  | 43.0 |
Interest income |  |  |  |  |  |  |  |  |  | (13.0) |
Other (income) expense, net |  |  |  |  |  |  |  |  |  | (0.8) |
Earnings before income taxes |  |  |  |  |  |  |  |  |  | $ | 182.9 |
(1) 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 liabilities that was recorded in managed expense and (ii) a $26.7 million benefit related to over-accrual of vendor commitment liabilities that was recorded in Cost of sales. See Note 1, Basis of Presentation, to the consolidated financial statements 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 Corporate and Other. (2) Distribution expenses consist of shipping and warehousing expense and is included in Selling, distribution and administration in the Consolidated Statement of Operations. (3) Managed expenses consist of product development and selling and administrative expense. Product development is included in Product Development in the Consolidated Statement of Operations. Selling and administrative expense is included in Selling, distribution and administration in the Consolidated Statement of Operations. Managed expenses for the Entertainment segment included a $15.3 million loss associated with the sale of the eOne Film and TV business. Information by segment and a reconciliation to reported amounts for the six months ended June 29, 2025 are as follows:
|  | Wizards of the Coast and Digital Gaming |  | Consumer Products |  | Entertainment |  | Corporate and Other |  | Total
Revenues |  | $ | 1,076.9 |  |  | $ | 926.8 |  |  | $ | 66.1 |  |  | $ | 70.0 |  |  | $ | 2,139.8 |
Less: Intersegment revenue |  | 92.4 |  |  | 86.1 |  |  | 23.4 |  |  | 70.0 |  |  | 271.9
Total net revenues |  | 984.5 |  |  | 840.7 |  |  | 42.7 |  |  | — |  |  | 1,867.9
Cost of sales |  | 152.0 |  |  | 275.3 |  |  | 2.7 |  |  | (0.2) |  |  | 429.8
Program cost amortization |  | — |  |  | — |  |  | 13.6 |  |  | — |  |  | 13.6
Royalties |  | 50.8 |  |  | 107.4 |  |  | (19.9) |  |  | 3.2 |  |  | 141.5
Advertising |  | 53.1 |  |  | 67.1 |  |  | 0.2 |  |  | (1.4) |  |  | 119.0
Amortization of intangible assets |  | 4.2 |  |  | 20.3 |  |  | 9.6 |  |  | 0.1 |  |  | 34.2
Distribution (1) |  | 20.0 |  |  | 65.1 |  |  | — |  |  | 0.2 |  |  | 85.3
Managed expense (2) |  | 232.6 |  |  | 1,379.0 |  |  | 41.4 |  |  | 19.0 |  |  | 1,672.0
Operating profit (loss) |  | $ | 471.8 |  |  | $ | (1,073.5) |  |  | $ | (4.9) |  |  | $ | (20.9) |  |  | $ | (627.5) |
Reconciliation to Earnings (loss) before income taxes: |  |  |  |  |  |  |  |  |  |
Interest expense |  |  |  |  |  |  |  |  |  | 82.2 |
Interest income |  |  |  |  |  |  |  |  |  | (14.3) |
Other (income) expense, net |  |  |  |  |  |  |  |  |  | (17.3) |
Earnings before income taxes |  |  |  |  |  |  |  |  |  | $ | (678.1) |
(1) Distribution expenses consist of shipping and warehousing expense and is included in Selling, distribution and administration in the Consolidated Statement of Operations. (2) Managed expenses consist of product development, selling and administrative expense, impairment of goodwill, and loss on disposal of business. Product development is included in Product Development in the Consolidated Statement of Operations. Selling and administrative expense is included in Selling, distribution and administration in the Consolidated Statement of Operations. Impairment of goodwill is included in the Impairment of goodwill in the Consolidated Statement of Operations. Loss on disposal of business is included in Loss on disposal of business in the Consolidated Statement of Operations. Managed expenses for the Consumer Products segment included a $1021.9 million non-cash loss associated with the impairment of the reporting units within the Consumer Products segment. See Note 5, Goodwill, to the consolidated financial statements for further information. Managed expenses for the Entertainment segment included a $25.0 million non-cash loss associated with the sale of the eOne Film and TV business. Information by segment and a reconciliation to reported amounts for the six months ended June 30, 2024 are as follows:
|  | Wizards of the Coast and Digital Gaming |  | Consumer Products |  | Entertainment |  | Corporate and Other |  | Total
Revenues |  | $ | 842.2 |  |  | $ | 1,041.5 |  |  | $ | 67.3 |  |  | $ | 63.4 |  |  | $ | 2,014.4 |
Less: Intersegment revenue |  | 73.9 |  |  | 104.0 |  |  | 20.5 |  |  | 63.4 |  |  | 261.8 |
Total net revenues |  | 768.3 |  |  | 937.5 |  |  | 46.8 |  |  | — |  |  | 1,752.6 |
Cost of sales (1) |  | 129.1 |  |  | 336.2 |  |  | 3.3 |  |  | (26.7) |  |  | 441.9 |
Program cost amortization |  | — |  |  | — |  |  | 16.6 |  |  | — |  |  | 16.6 |
Royalties |  | 21.2 |  |  | 109.4 |  |  | (25.2) |  |  | 0.8 |  |  | 106.2 |
Advertising |  | 44.5 |  |  | 65.6 |  |  | 0.3 |  |  | 1.5 |  |  | 111.9 |
Amortization of intangible assets |  | 4.1 |  |  | 22.2 |  |  | 7.6 |  |  | 0.2 |  |  | 34.1 |
Distribution (2) |  | 14.4 |  |  | 72.6 |  |  | — |  |  | — |  |  | 87.0 |
Managed expense (1) (3) |  | 185.1 |  |  | 387.7 |  |  | 39.4 |  |  | 14.4 |  |  | 626.6 |
Operating profit (loss) |  | $ | 369.9 |  |  | $ | (56.2) |  |  | $ | 4.8 |  |  | $ | 9.8 |  |  | $ | 328.3 |
Reconciliation to Earnings (loss) before income taxes: |  |  |  |  |  |  |  |  |  |
Interest expense |  |  |  |  |  |  |  |  |  | 81.5 |
Interest income |  |  |  |  |  |  |  |  |  | (21.3) |
Other (income) expense, net |  |  |  |  |  |  |  |  |  | 4.2 |
Earnings before income taxes |  |  |  |  |  |  |  |  |  | $ | 263.9 |
(1) During the six months ended June 30, 2024, the Company recorded two non-recurring prior year adjustments: (i) a $31.1 million expense related to historical environmental liabilities that was recorded in managed expense and (ii) a $26.7 million benefit related to over-accrual of vendor commitment liabilities that was recorded in Cost of sales. See Note 1, Basis of Presentation, to the consolidated financial statements 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 Corporate and Other. (2) Distribution expenses consist of shipping and warehousing expense and is included in Selling, distribution and administration in the Consolidated Statement of Operations. (3) Managed expenses consist of product development, and selling and administrative expense. Product development is included in Product Development in the Consolidated Statement of Operations. Selling and administrative expense is included in Selling, distribution and administration in the Consolidated Statement of Operations. Loss on disposal of business is included in Loss on disposal of business in the Consolidated Statement of Operations. Managed expenses for the Entertainment segment included a $24.4 million loss associated with the sale of the eOne Film and TV business. Total assets information by segments is as follows:
(In millions) | June 29, 2025 |  | June 30, 2024 |  | December 29, 2024
Total Assets |  |  |  |  |
Wizards of the Coast and Digital Gaming | $ | 6,856.5 |  |  | $ | 5,111.4 |  |  | $ | 5,778.4 |
Consumer Products | 8,616.5 |  |  | 6,930.1 |  |  | 7,785.2 |
Entertainment | 1,438.7 |  |  | 2,884.9 |  |  | 2,857.8 |
Corporate and Other(1) | (11,737.3) |  |  | (8,062.3) |  |  | (10,081.1) |
Total | $ | 5,174.4 |  |  | $ | 6,864.1 |  |  | $ | 6,340.3 |
(1) Corporate and Other consists of investments in subsidiary and intercompany receivables. Other supplemental information by segments are as follows:
|  | Three Months Ended |  | Six Months Ended
(In millions) |  | June 29, 2025 |  | June 30, 2024 |  | June 29, 2025 |  | June 30, 2024
Depreciation and intangible asset amortization(1) |  |  |  |  |  |  |  |
Wizards of the Coast and Digital Gaming |  | $ | 4.3 |  |  | $ | 4.3 |  |  | $ | 8.9 |  |  | $ | 8.6 |
Consumer Products |  | 24.8 |  |  | 28.6 |  |  | 43.1 |  |  | 50.2 |
Entertainment |  | 5.2 |  |  | 4.2 |  |  | 10.3 |  |  | 8.3 |
Corporate and Other |  | (2.4) |  |  | 8.3 |  |  | 4.0 |  |  | 16.6 |
Total |  | $ | 31.9 |  |  | $ | 45.4 |  |  | $ | 66.3 |  |  | $ | 83.7 |
Additions to property, plant and equipment |  |  |  |  |  |  |  |
Wizards of the Coast and Digital Gaming |  | $ | 5.4 |  |  | $ | 9.0 |  |  | $ | 7.1 |  |  | $ | 15.0 |
Consumer Products |  | 11.0 |  |  | 13.2 |  |  | 22.2 |  |  | 24.5 |
Entertainment |  | — |  |  | — |  |  | 0.1 |  |  | — |
Corporate and Other |  | (0.3) |  |  | 5.2 |  |  | 0.5 |  |  | 10.0 |
Total |  | $ | 16.1 |  |  | $ | 27.4 |  |  | $ | 29.9 |  |  | $ | 49.5 |
(1) The amounts of depreciation disclosed by reportable segments are included within cost of sales, distribution and managed expense. Intangible asset amortization is included within amortization of intangible assets.

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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 21 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-21 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name 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