XML 21 R9.htm IDEA: XBRL DOCUMENT
v3.25.2

Revenue Recognition | 6 Months Ended
--- | ---
Jun. 29, 2025
Revenue from Contract with Customer [Abstract] |
Revenue Recognition | Revenue Recognition Revenue is recognized when control of the promised goods, functional intellectual property or production is transferred to the customers or licensees, in an amount that reflects the consideration the Company expects to be entitled to in exchange for transferring those goods. The Company accounts for a contract when it has approval and commitment from both parties, the rights of the parties are identified, payment terms are identified, the contract has commercial substance, and collectability of consideration is probable. The majority of the Company’s revenues are derived from sales of finished products to customers. See Note 1, Summary of Significant Accounting Policies, of the Company's 2024 Annual Report for the Company's revenue recognition accounting policy. Contract Assets and Liabilities In the ordinary course of business, the Company enters 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. 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. 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 in the Company’s Consolidated Balance Sheets on the basis of the expected consideration under the contract with the customer. 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 and the long-term portion is recorded within Other long-term assets on the basis of expected receipt of cash per contractual terms. The opening and closing balances of contract assets and contract liabilities are as follows:
| June 29, 2025 |  | June 30, 2024
Assets |  |  |
Balance at beginning of the year | $ | 241.4 |  |  | $ | 213.3 |
Ending Balance | $ | 270.1 |  |  | $ | 237.2 |
Liabilities |  |  |
Balance at beginning of the year | $ | 236.8 |  |  | $ | 230.8 |
Ending Balance | $ | 202.8 |  |  | $ | 258.9 |
For the six months ended June 29, 2025, the Company recognized revenue of $150.8 million that was included in the December 29, 2024 contract liability balance. For the six months ended June 30, 2024, the Company recognized revenue of $45.4 million that was included in the December 31, 2023 contract liability balance. Unsatisfied performance obligations As of June 29, 2025, revenue for unsatisfied performance obligations expected to be recognized in the future is $998.7 million, primarily for intellectual property to be made available in the future under existing agreements with merchandise and co-branding licensees and television station affiliates. Of this amount, we expect to recognize approximately $116.8 million in the remainder of 2025, $188.8 million in 2026, $146.9 million in 2027, and $546.2 million thereafter. These amounts include only fixed consideration or minimum guarantees and do not include amounts related to (i) contracts with an original expected term of one year or less or (ii) licenses of intellectual property that are solely based on the sales of the licensee. Accounts Receivable and Allowance for Credit Losses The Company’s balance for accounts receivable on the Consolidated Balance Sheets as of June 29, 2025 and June 30, 2024 are primarily from contracts with customers. A summary of the activity in the allowance for credit losses are as follows:
| June 29, 2025 |  | June 30, 2024
Balance at beginning of the year | $ | 25.8 |  |  | $ | 12.7 |
Provisions/charges to income | 16.0 |  |  | 0.8 |
Amounts charged off and other | (2.3) |  |  | 0.4 |
Foreign currency impact | 0.7 |  |  | (0.8) |
Ending balance | $ | 40.2 |  |  | $ | 13.1 |
Disaggregation of revenues The Company disaggregates its revenues from contracts with customers by reportable segment: Wizards of the Coast and Digital Gaming, Consumer Products, and Entertainment. The Company further disaggregates revenues within its Wizards of the Coast and Digital Gaming segment by category: Tabletop Gaming and Digital and Licensed Gaming; within its Consumer Products segment by major geographic region: North America, Europe, Latin America, and Asia Pacific; and within its Entertainment segment by category: Film & TV and Family Brands. Finally, the Company disaggregates its revenues by brand portfolio into three brand categories: Grow Brands, Optimize Brands, and Reinvent Brands. We believe these collectively depict how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors. The following table represents consolidated Wizards of the Coast and Digital Gaming segment net revenues by category:
| Three Months Ended |  | Six Months Ended
| June 29, 2025 |  | June 30, 2024 |  | June 29, 2025 |  | June 30, 2024
Tabletop Gaming | $ | 406.3 |  |  | $ | 307.6 |  |  | $ | 750.1 |  |  | $ | 535.8 |
Digital and Licensed Gaming | 116.1 |  |  | 144.4 |  |  | 234.4 |  |  | 232.5 |
Net revenues | $ | 522.4 |  |  | $ | 452.0 |  |  | $ | 984.5 |  |  | $ | 768.3 |
The following table represents consolidated Consumer Products segment net revenues by major geographic region:
| Three Months Ended |  | Six Months Ended
| June 29, 2025 |  | June 30, 2024 |  | June 29, 2025 |  | June 30, 2024
North America | $ | 236.0 |  |  | $ | 306.1 |  |  | $ | 467.4 |  |  | $ | 545.2 |
Europe | 95.7 |  |  | 92.0 |  |  | 180.7 |  |  | 179.5 |
Asia Pacific | 63.6 |  |  | 62.6 |  |  | 117.4 |  |  | 111.4 |
Latin America | 47.1 |  |  | 63.8 |  |  | 75.2 |  |  | 101.4 |
Net revenues | $ | 442.4 |  |  | $ | 524.5 |  |  | $ | 840.7 |  |  | $ | 937.5 |
The following table represents consolidated Entertainment segment net revenues by category:
| Three Months Ended |  | Six Months Ended
| June 29, 2025 |  | June 30, 2024 |  | June 29, 2025 |  | June 30, 2024
Film and TV | $ | 1.5 |  |  | $ | 1.8 |  |  | $ | 5.8 |  |  | $ | 1.8 |
Family Brands | 14.5 |  |  | 17.0 |  |  | 36.9 |  |  | 45.0 |
Net revenues | $ | 16.0 |  |  | $ | 18.8 |  |  | $ | 42.7 |  |  | $ | 46.8 |
The following table represents consolidated net revenues by brand portfolio:
| Three Months Ended |  | Six Months Ended
| June 29, 2025 |  | June 30, 2024 |  | June 29, 2025 |  | June 30, 2024
Grow Brands | $ | 732.2 |  |  | $ | 704.3 |  |  | $ | 1,385.6 |  |  | $ | 1,226.0 |
Optimize Brands | 155.5 |  |  | 165.0 |  |  | 287.6 |  |  | 306.8 |
Reinvent Brands | 93.1 |  |  | 126.0 |  |  | 194.7 |  |  | 219.8 |
Net revenues | $ | 980.8 |  |  | $ | 995.3 |  |  | $ | 1,867.9 |  |  | $ | 1,752.6 |

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

X
- 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 7 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-7 Reference 2: 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 3: 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 4: 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 5: 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 6: 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 7: 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 8: 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 9: 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 10: 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 11: http://www.xbrl.org/2003/role/disclosureRef -Name Accounting Standards Codification -Topic 606 -Publisher FASB -URI https://asc.fasb.org/606/tableOfContent + Details
Name: | us-gaap_RevenueFromContractWithCustomerTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration