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Goodwill | 6 Months Ended
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Jun. 29, 2025
Goodwill and Intangible Assets Disclosure [Abstract] |
Goodwill | Goodwill Changes in the carrying amount of goodwill, by operating segment, are as follows:
|  | Wizards of the Coast and Digital Gaming |  | Consumer Products |  | Entertainment |  | Total
2025 |  |  |  |  |  |  |  |
Balance as of December 29, 2024 |  | $ | 371.0 |  | $ | 1,582.0 |  | $ | 325.2 |  | $ | 2,278.2
Impairment of goodwill |  | — |  | (1,021.9) |  | — |  | (1,021.9)
Foreign exchange translation |  | (0.4) |  | 0.9 |  | — |  | 0.5
Balance as of June 29, 2025 |  | $ | 370.6 |  | $ | 561.0 |  | $ | 325.2 |  | $ | 1,256.8
|  | Wizards of the Coast and Digital Gaming |  | Consumer Products |  | Entertainment |  | Total |
2024 |  |  |  |  |  |  |  |  |
Balance as of December 31, 2023 |  | $ | 371.7 |  | $ | 1,582.3 |  | $ | 325.2 |  | $ | 2,279.2 |
Foreign exchange translation |  | (0.3) |  | (0.1) |  | — |  | (0.4) |
Balance as of June 30, 2024 |  | $ | 371.4 |  | $ | 1,582.2 |  | $ | 325.2 |  | $ | 2,278.8 |
We assess goodwill and other intangible assets with indefinite lives for impairment each year, or more frequently if events or changes in circumstances indicate an asset may be impaired. For goodwill and indefinite-lived intangible assets, our policy is to assess for impairment as of the beginning of each fiscal fourth quarter. The Company may perform a qualitative assessment and bypass the quantitative impairment testing process, if it is not more likely than not that the carrying value of a reporting unit exceeds its fair value. Due to increased tariffs, including reciprocal tariffs, announced by the U.S. government in April 2025, the escalation of on-going trade policy disputes between international governments, the financial performance of certain reporting units being lower than previously forecasted, and other macroeconomic headwinds, the Company noted downward revisions to operating income and cash flow forecasts for certain of its reporting units within the Consumer Products and Entertainment segments. As a result, the Company performed an interim quantitative impairment test for the North America, Europe, Asia Pacific, and Latin America Consumer Products reporting units, as well as the Family Brands reporting unit within the Entertainment segment. Additionally, due to our ongoing transformation, we concluded that, as of the current quarter, the North America, Europe, Asia Pacific, and Latin America reporting units have similar economic characteristics and should be aggregated for purposes of testing goodwill for impairment. Our conclusion was based on a detailed analysis of the aggregation criteria set forth in FASB Accounting Standard Codification ("ASC") Topic 280, Segment Reporting, and in FASB ASC Topic 350, Intangibles - Goodwill and Other. These reporting units serve similar clients and have similar products, and as of the current quarter have similar sourcing and distribution methods that along with our ongoing transformation has resulted in similar economic characteristics. As a result of the quantitative tests performed prior to and following the aggregation, the Company determined that the carrying values of our regional Consumer Products reporting units exceeded their expected fair values and recorded pre-tax non-cash impairment charges of $1,021.9 million within the Consolidated Statements of Operations for the three and six months ended June 29, 2025. The fair values of North America and Europe were determined considering a discounted cash flow model which is primarily based on management’s future revenue and cost estimates, which included the estimated impact of tariff policies in effect and the related macroeconomic environment, and a discount rate. The fair value of the Asia Pacific and Latin America reporting units was determined considering a discounted cash flow model weighted equally with the market approach which is primarily based on multiples of comparable public companies. No impairments were recorded related to the Family Brands reporting unit.

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