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Item 1. Business

2023-02-22 compared with 2022-02-23 · 316 added, 323 removed, 243 unchanged (72% of the section changed)

(“Hasbro”) is a global play and entertainment company committed to Creating the World’s Best Play and Entertainment Experiences and its purpose of making the world a better place for all children, fans and families.

Hasbro delivers immersive brand experiences for global audiences through consumer products, including toys and games;

entertainment through Entertainment One (“eOne,”), our independent studio;

and gaming, led by the team at Wizards of the Coast, an award-winning developer of tabletop and digital games.

With our eOne studio and Wizards gaming business, we continue to expand our global audiences beyond children, fans and families, through content and gaming.

Our iconic brands include NERF, MAGIC:

THE GATHERING, MY LITTLE PONY, TRANSFORMERS, PLAY-DOH, MONOPOLY, BABY ALIVE, DUNGEONS & DRAGONS, POWER RANGERS, PEPPA PIG and PJ MASKS, as well as premier partner brands.

For the past decade, we have been consistently recognized for our corporate citizenship, including being named one of the 100 Best Corporate Citizens by 3BL Media and one of the World’s Most Ethical Companies by Ethisphere Institute.

Fiscal 2021 Developments

Leadership Matters

On October 12, 2021, we announced the passing of our beloved leader and long-time Chairman and Chief Executive Officer, Brian D.

Goldner joined Hasbro in 2000 and was quickly recognized as a visionary in the industry.

He was appointed CEO in 2008 and became Chairman of the Board in 2015.

He was instrumental in transforming the Company into a global play and entertainment leader, architecting a strategic Brand Blueprint to create the world’s best play and storytelling experiences.

Through his unwavering focus, he expanded the Company beyond toys and games into television, movies, digital gaming and beyond, to ensure Hasbro’s iconic brands reached every consumer, in every way they engage in entertainment and play.

Following Mr.

Goldner’s passing, Richard S.

Stoddart, an independent member of the Board since 2014, was appointed by the Board to serve as Hasbro’s interim CEO while the Company completed its CEO succession process.

In addition to the appointment of Mr.

Stoddart, Tracy A.

Leinbach, a member of the Board since 2008, was appointed to serve as Chair of the Board, and the Lead Independent Director role was eliminated.

In January 2022, we announced the appointment of Christian (Chris) Cocks as Chief Executive Officer and a member of the Board of Directors, both effective February 25, 2022.

He will succeed interim CEO, Mr.

Stoddart, who will become Chair of the Board, effective February 25, 2022.

Since 2021, Mr.

Cocks has served as President and Chief Operating Officer of Hasbro’s Wizards of the Coast and Digital Gaming division, a global leader in tabletop and digital gaming, and prior to that he served as President and COO of Wizards of the Coast since 2016, when he joined Hasbro from Microsoft.

In January 2022, we also announced the appointment of Eric Nyman as President and Chief Operating Officer, effective February 25, 2022, where he will oversee global business, operational and foundational platform investments;

continue to lead Hasbro’s consumer products business, overall consumer licensing strategy and strategic partnerships;

and oversee Hasbro’s global supply chain.

Nyman, who joined Hasbro in 2003, currently serves as Chief Consumer Officer and Chief Operating Officer of Hasbro Consumer Products.

eOne Music Sale

In June 2021, we completed the sale of our Entertainment One Music business (“eOne Music”) as we continue to focus on the core strategic elements of our Brand Blueprint to further strengthen our position as a purpose‐led play and entertainment company.

Segment Realignment

Effective for the first quarter of 2021, we realigned our reportable segment structure to correspond with the evolution of our company.

The realigned segments represent changes to our reporting structure and reflect management’s allocation of decision-making responsibilities for evaluating the Company’s performance.

Our new reportable segments are:

Consumer Products, Wizards of the Coast and Digital Gaming, Entertainment and Corporate and Other.

See “Reportable Segments” below and note 21 to the consolidated financial statements included in Part II, Item 8.

Financial Statements, of this Form 10-K for further discussion on the Company's segment realignment.

(“Hasbro”) is a global Branded Entertainment leader whose mission is to entertain and connect generations of fans through the wonder of storytelling and exhilaration of play.

Hasbro delivers engaging brand experiences for global audiences through gaming, consumer products and entertainment, with a portfolio of iconic brands including MAGIC:

THE GATHERING, DUNGEONS & DRAGONS, Hasbro Gaming, NERF, TRANSFORMERS, PLAY-DOH and PEPPA PIG, as well as premier partner brands.

Hasbro is guided by our purpose to create joy and community for all people around the world, one game, one toy, one story at a time.

For more than a decade, we have been consistently recognized for our corporate citizenship, including being named one of the 100 Best Corporate Citizens by 3BL Media, one of the World’s Most Ethical Companies by Ethisphere Institute and one of the 50 Most Community-Minded Companies in the U.S.

by the Civic 50.

Recent Developments

Fiscal year 2022 was a challenging year for Hasbro.

We navigated through a difficult global economy with high inflation and rising interest rates, a challenged toy and game industry, the continued effects of the coronavirus pandemic and leadership changes, as we embarked upon a multi-year transformational effort to support our revamped Blueprint 2.0 strategy described below.

Executive Leadership

Effective February 25, 2022 we appointed Christian (Chris) Cocks as Chief Executive Officer and a member of the Board of Directors.

Cocks previously served as President and Chief Operating Officer of Hasbro’s Wizards of the Coast and Digital Gaming division.

In February 2022, we appointed Cynthia Williams as President of Wizards of the Coast and Digital Gaming.

Williams joined us from Microsoft, where she most recently served as General Manager and Vice President, Gaming Ecosystem Commercial Team, and drove the expansion of Xbox Gaming and the acceleration of game-creator growth.

Prior to joining Microsoft, Ms.

Williams spent more than a decade at Amazon, where she led the global growth of their ecommerce direct-to-consumer business Fulfillment by Amazon.

In April 2022, we appointed Shane Azzi as our Chief Global Supply Chain Officer, and Matthew Austin as our Chief Commercial Officer.

Azzi has more than 25 years of consumer packaged goods and diverse

supply chain experience, most recently with Kimberly-Clark.

Austin was promoted from within Hasbro and is focused on leveraging our commercial operations with powerful, data-driven consumer insights and strategic partnership, across different channels, including e-commerce and direct fan experience.

In May 2022, we appointed Najuma Atkinson as our Chief People Officer, to lead our Global HR function.

Atkinson joined us from Dell Technologies, where she served as Senior Vice President of Global HR Services.

In November 2022, we announced that Deborah Thomas informed Hasbro of her intent to retire from her position as Executive Vice President and Chief Financial Officer after 24 years of distinguished service and leadership with the Company.

Hasbro initiated a search process to identify her successor and Ms.

Thomas and Hasbro plan for her to remain as Chief Financial Officer until her successor is in place, and remain as an advisor to the Company for a period thereafter, to ensure a smooth transition.

In January 2023, we announced that Eric Nyman, President and Chief Operating Officer since February 2022, will be leaving the Company effective March 31, 2023.

Strategic Review

On October 4, 2022, following a several months long strategic review of our business led by our CEO, we announced a go-forward strategic plan guided by our new Blueprint 2.0, a consumer-centric framework for bringing compelling and expansive brand experiences to audiences around the world.

During our review we identified opportunities to focus and scale our business, enhance operational excellence, including through specialized organizational programs and supply chain transformation, to drive growth and profit and enhance shareholder value.

We plan to increase strategic investment on our most valuable and profitable franchises across toys, games, entertainment and licensing, and exit certain non-core aspects of the business.

Our Blueprint 2.0 transformation is guided by five strategic pillars:

Brand, Insights and Entertainment;

Direct and Digital;

Operational Excellence;

Brand, Insights and Entertainment

• Focus on fewer, bigger, more profitable brands and driving market share in the key categories of preschool, games, creativity, outdoor and action brands.

• Develop our insights and analytics capabilities heavily focused on putting consumers at the center of everything we do, as we build multi-generational brands.

• Entertainment investments focused on Hasbro IP aligned with our Blueprint 2.0 strategy including merchandise and digital engagement opportunities with a focus on franchise brands.

Direct and Digital

• Invest in our Hasbro direct-to-consumer and digital business, inclusive of Hasbro PULSE, SECRET LAIR, Magic:

The Gathering Arena and D&D Beyond.

An example of this investment includes our acquisition of D&D Beyond (the "D&D Beyond Acquisition"), the premier digital content platform for DUNGEONS & DRAGONS, in the second quarter of 2022, in an all-cash transaction for a purchase price of $146.3 million.

The D&D Beyond Acquisition is expected to substantially accelerate direct-to-fans capability for DUNGEONS & DRAGONS in physical and digital play.

• Continue to cultivate digital licensing relationships that activate our brands.

• Scale licensing of our brands through a growing portfolio of partners from theme park operators to toy companies, for consumers to experience our brands and drive communities of friendship and fandom around them.

Operational Excellence

• Execute operational savings initiatives, including supply chain transformation, to improve operating results and reinvest in our business.

• Invest in our people at all levels of our organization and continue to foster a diverse and inclusive culture that drives accountability and focuses on profitability.

Hasbro Transformation Office

Under our new strategic plan, we launched the Hasbro Transformation Office (HTO), a team of leaders dedicated to running a disciplined, purpose-built company that is simpler, more efficient and redesigned to drive long-term sustainable growth in markets in which we compete.

Our HTO aligns and delivers on our Operational Excellence program, an enterprise-wide cost-saving initiative intended to improve our business financially, operationally and culturally from our current state and designed to deliver $250 million to $300 million in run-rate cost savings by the end of 2025, $50 million of which was achieved in full-year 2022 with $20 million of actualized savings.

TV and Film Business

On November 17, 2022, we announced an authorization by Hasbro's Board of Directors to initiate a marketing for parts of our eOne TV and film business that do not directly support the Company’s Branded Entertainment strategy.

In the event a transaction were to occur, Hasbro is expected to maintain the capability to develop and produce animation, digital shorts, scripted TV and theatrical films for audiences related to core Hasbro IP.

The family brands business, including the brands PEPPA PIG and PJ MASKS, is not expected to be part of any transaction involving parts of the eOne film and television business.

The Company anticipates that the process will take several months however, there can be no assurance that the process will result in a sale.

Workforce Reduction

In alignment with the objectives of our Operational Excellence program, on January 26, 2023, we announced the undertaking of certain organizational changes resulting in the elimination of approximately 1,000 positions from our global workforce in 2023, or approximately 15% of global full-time employees.

Coronavirus Pandemic

During fiscal 2020, the novel coronavirus (COVID-19) pandemic had a substantial adverse impact on our business, as well as our employees, consumers, customers, partners, licensees, suppliers and manufacturers, due both to the direct impact of the virus, as well as the preventative measures taken to reduce the spread of the virus worldwide.

In fiscal 2020, and continuing into fiscal 2021, we experienced:

◦ difficulties in shipping and distributing products due to ongoing port capacity, shipping container and truck transportation shortages, resulting in higher costs for both ocean and air freight and delays in the availability of products, which can result in delayed sales and in some cases result in lost sales.

These and other disruptions are expected to continue in 2022;

◦ disruptions in supply of products, due to closures or reductions in operations at third-party manufacturing facilities across several geographies including, but not limited to, China, Vietnam, India, the United States and Ireland;

◦ adverse sales impact due to changes in consumer purchasing behavior and availability of products to consumers, resulting from retail store closures, limited reopening of retail stores and limitations on the capacity of ecommerce channels to supply additional products;

◦ fluctuations in our performance based on the progress of different countries in controlling the coronavirus and the maturity of e-commerce platforms in those markets;

◦ in fiscal 2020, limited production of live-action scripted and unscripted entertainment content due to the hard stop and soft reopening of production studios;

◦ delays or postponements of entertainment productions and releases of entertainment content both internally and by our partners;

◦ increases in entertainment production costs due to measures required to minimize COVID-19 risks;

◦ challenges of working remotely, including in the design and development of both physical and digital product offerings by us and our licensees.

In response to these challenges, we developed and continue to develop and execute plans to mitigate the negative impact of COVID-19 to the business.

Our responses included:

◦ utilizing our global supply chain and existing inventory to work to meet demand, while managing freight cost increases across all markets, as our manufacturing facilities returned to varying levels of operation;

◦ mitigating risk in the global supply chain by expanding shipping capacity, activating alternate ports in China and the U.S.

and prioritizing supply based on inventory and customer needs, including utilizing air freight to a greater degree, which has raised our costs;

◦ accelerating our business online and expanding omni-channel to get products to customers and consumers;

◦ developing innovative ways to enable players to continue to play games remotely;

◦ continuing to create new entertainment, including post-production work and the development of animation productions remotely;

◦ implementing preventative measures and health and safety protocols;

◦ introduction of a hybrid work model.

We have maintained sufficient liquidity and access to capital resources.

We also continue to closely monitor customer health and collectability of receivables.

The COVID-19 outbreak continues to be fluid and it is difficult to forecast the impact it could have on our future operations.

Since the onset of the novel coronavirus (COVID-19) pandemic in early 2020, our business has been adversely impacted by the challenges and risks associated with both the initial, and the continuing effects of the spread of the virus worldwide.

Certain effects of the COVID-19 pandemic, including difficulties in shipping and distributing products due to constraints in port capacity, shipping containers and truck transportation, continued into 2022.

These and other disruptions led to higher costs for both ocean and air freight and delays in the availability of products, which resulted in delayed sales and, in some cases, lost sales.

In response to these and other challenges, we developed and executed plans to mitigate the negative impacts of COVID-19 to our business, which we believe helped to manage the adverse impacts to our financial results for fiscal year 2022.

For example, the Company implemented certain price increases during 2022 and 2021, to mitigate product input and freight cost increases.

Additionally, during the first half of 2022, the Company accelerated certain inventory purchases to ensure sufficient finished goods and raw material availability, ahead of expected periods of high consumer demand due to supply chain constraints.

These purchases, however, did not see corresponding increases in sales as consumers were impacted by the economic environment, including lower discretionary consumer income due to higher inflation and rising interest rates, driving higher inventory balances within certain markets as compared to prior year.

As a result, the Company launched incremental year-over-year advertising and promotional activity behind key holiday toy and game items to drive our newest innovation and reduce inventory on hand at Hasbro and at retail.

Since the initial COVID-19 outbreak, we have maintained sufficient liquidity and access to capital resources and we continue to closely monitor customer health and collectability of receivables.

The impact of coronavirus outbreak continues to be fluid and uncertain and it is still difficult to forecast the final or ongoing impact it could have on our future operations.

Please see Part I, Item 1A.

Risk Factors, in this Form 10-K for further information.

Brand Blueprint Strategy

Our strategic plan is centered around the Hasbro Brand Blueprint, a framework for bringing compelling and expansive brand experiences to consumers and audiences around the world.

Our brands are story-led and play-led consumer franchises brought to life through a wide array of consumer products, digital gaming and compelling content offered across a multitude of platforms and media.

Our commitment to disciplined, strategic investments across the Brand Blueprint over the long-term has built a differentiated business with diversified capabilities to drive profitable growth and enhance shareholder value.

Hasbro's purpose of making the world a better place for all children, fans and families sits at the center of the Hasbro Brand Blueprint and is a key driver of our brands and content.

The development and execution of our brands and content are informed by our proprietary consumer insights, which help us understand the behavior of our consumers.

We have learned that consumers will travel with a brand that they love across multiple forms and formats, including our core historical strength of toys and games and licensed consumer products, as well as digital gaming and story-led entertainment, such as short-form content online and long-form content in television and film.

The value of Hasbro is fully activated when we can take a brand across all elements of the Brand Blueprint – consumer products;

Wizards of the Coast and digital gaming;

and entertainment.

The ability to build a brand in any of our segments and leverage in-house capabilities to create multiple categories of engagement with consumers and fans is unique to Hasbro and optimizes our economics today and in the future.

As the global consumer landscape, shopping behaviors and the retail and entertainment environments continue to evolve, we continue to adapt and refine our business strategy.

This process includes reexamining the ways we organize across the Hasbro Brand Blueprint, re-shaping our business into a more adaptive and digitally-driven organization, expanding our ecommerce capabilities, including building direct to consumer expertise, and attracting and developing a high-performing and diverse workforce through human capital investments.

Below is summary of the key areas of focus for activating our brands across the Hasbro Brand Blueprint.

Blueprint 2.0

Our strategic plan has long been centered around the Hasbro Blueprint, a framework for bringing compelling and expansive brand experiences to consumers and audiences around the world.

With the evolution of our strategy comes a new Blueprint 2.0, a consumer-centric framework where our brands are transformed as story-led and play-led consumer franchises brought to life through games, play and experiences and offered across a multitude of platforms and media.

Our commitment to disciplined, strategic investments, when activated across our Blueprint 2.0 differentiates Hasbro as a purpose-driven business with diversified capabilities focused on driving profitable growth and enhancing shareholder value.

Hasbro's purpose of creating joy and community for all people around the world, one game, one toy, one story at a time starts with consumers and our fans, who represent multigenerational audiences that sit at the center of Blueprint 2.0.

Understanding our fans, expanding our fan base and delivering for them is the key driver behind our evolution as a Branded Entertainment company.

The development and execution of our brands are informed by our brand insights platform, a proprietary consumer insights and data analytics system which helps us understand the behavior of our consumers.

The value of Hasbro is fully activated when we can take a brand across multiple elements of Blueprint 2.0 including consumer products such as toys, games and licensed products;

digital gaming;

entertainment and experiences;

and our Hasbro Direct business.

The ability to build a brand and leverage in-house capabilities to create multiple categories of engagement with consumers and fans is unique to Hasbro and optimizes our economics today and in the future.

Below is a summary of key areas of focus for activating our brands across Blueprint 2.0.

• Toys and Games .

We market and sell toys and games based on our owned and controlled brands globally at retail stores, through e-commerce platforms and through our fan-based direct-to-consumer platform, Hasbro PULSE.

We market and sell toys and games based on our owned and controlled brands globally at retail stores, through ecommerce platforms and through our fan-based direct-to-consumer platforms Hasbro PULSE and SECRET LAIR.

Additionally, through license agreements with third parties, we develop and sell products based on popular third-party brands through these channels.

Our toys and games include action figures, arts and crafts and creative play products, fashion and other dolls, play sets, preschool toys, plush products, sports action blasters and accessories, vehicles and toy-related specialty products, games and many other consumer products which represent an array of internationally recognizable brands that capture the imagination of our consumers worldwide.

Our toys and games include action figures, arts and crafts and creative play products, dolls, play sets, preschool toys, plush products, sports action blasters and accessories, vehicles and toy-related specialty products, games and many other consumer products which represent an array of internationally recognizable brands that capture the imagination of our consumers worldwide.

Within toys and games, as a leading producer of new and innovative gaming brands and play experiences, our gaming business continues to transform game play.

To successfully execute our gaming strategy, we consider brands which capitalize on existing trends while evolving our approach to gaming using consumer insights and offering gaming experiences relevant to consumer demand for face-to-face, trading card and digital game experiences played as board, off-the-board, digital, card, electronic, trading card and role-playing games.

To successfully execute our gaming strategy, we consider brands which capitalize on existing trends while evolving our approach using consumer insights and data analytics and offering gaming experiences addressed to consumer demand for face-to-face, trading card and digital game experiences played as board, off-the-board, digital, card, electronic, trading card and role-playing games.

Our subsidiary, Wizards of the Coast (“Wizards”), is a critical part of our gaming business, driving innovation and growth through its popular role-playing and fantasy card-collecting games such as MAGIC:

THE GATHERING and DUNGEONS & DRAGONS.

Our iconic game brands include long-time favorites such as MONOPOLY, JENGA, CONNECT 4, THE GAME OF LIFE, SCRABBLE, CLUE and TRIVIAL PURSUIT.

Our gaming business also includes new social gaming brands as well as many other well-known game brands.

THE GATHERING, Hasbro's first billion-dollar brand which benefited from numerous tent-pole set releases exceeding $100.0 million per set during 2022, and DUNGEONS & DRAGONS.

Our iconic game brands include long-time favorites such as MONOPOLY, JENGA, CONNECT 4, THE GAME OF LIFE, SCRABBLE, CLUE and TRIVIAL PURSUIT, as well as many other well-known game brands.

• Licensed Consumer Products .

We promote our brands through the out-licensing of our intellectual properties to third parties for promotional and merchandising uses in a wide range of consumer products.

These include apparel, publishing, home goods and electronics, or in certain situations, toy products where we consider the out-licensing of brands to be more effective and profitable than developing and marketing the products ourselves.

We also out-license our brands for uses in theme park attractions, other forms of location-based entertainment and within formats such as film and TV programming.

As a complement to our toy and game business, we promote our brands through the out-licensing of our intellectual properties to third parties for promotional and merchandising uses in a wide range of consumer products.

These include apparel, publishing, home goods and electronics, or in certain situations, toy products where the out-licensing of brands is more effective and profitable than developing and marketing the products ourselves.

We also out-license our brands for uses in theme park attractions and other forms of location-based entertainment.

In cases where we license our intellectual property to a third party, we enter into contracts with licensees that pay us either a sales-based or usage-based royalty, or a combination of both, for use of the brands, and, in some cases, the license arrangements are subject to minimum guaranteed amounts or fixed fees, over the term of the license.

As we continue our Blueprint 2.0 transformation efforts focusing on fewer, bigger brands, we have begun out-licensing certain non-core brands which we believe may be more profitable through a licensing arrangement.

• Digital Gaming .

We are investing to grow our digital gaming business to further unlock the value of our brands through play and storytelling.

This includes development of digital games internally and through third parties.

A key element of Blueprint 2.0 is continued growth of our digital gaming business to further unlock the value of our brands through play and storytelling.

This includes the D&D Beyond acquisition in 2022 and the ongoing development of digital games internally and through third parties.

For example, we have developed and launched digital versions of the MAGIC:

THE GATHERING card game, including Magic:

The Gathering Arena , which includes the game's mobile application launch in 2021.

The Gathering Arena and related mobile application, which also complement the Company's direct-to-customer relationships.

Additionally, through Wizards we launched Dungeons & Dragons:

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• Entertainment .

A key driver of the Hasbro Brand Blueprint is to reinforce storylines associated with our brands through several entertainment mediums, including television, film, digital content and other programming.

Our entertainment business, through eOne, is a global independent studio, that specializes in the development, acquisition, production, distribution and sales of entertainment content.

A critical driver of Blueprint 2.0 is to reinforce storylines associated with our brands through entertainment mediums, including television, film, digital content and other programming.

Our entertainment business, through eOne, is a global independent studio specializing in the development, production, distribution and sales of entertainment content.

With our cross-platform capabilities our entertainment business leverages film and television production and sales, digital content and children's programming to create compelling entertainment and drive creativity across brands with merchandising and licensing tie-ins.

◦ Television .

In television, we are a major independent producer of television content with a focus on the development, production and acquisition of high-quality television programming for sale to broadcasters and digital platforms globally.

Through our television studios, we develop and produce original programming for broadcast in our core television production territories of Canada and the U.S., which is then distributed into global markets to various broadcasters and cable networks by our international sales network.

We also distribute programming globally on various digital platforms, including Netflix and Apple TV.

Our television programming is typically financed on a production‑by‑production basis by way of production financing facilities.

Our original television programming is sold to broadcasters on a series‑by‑series or individual show basis for broadcast on free television, pay television, Subscription Video‑On‑Demand ("SVOD") and other digital platforms.

◦ Film and Television .

Our go-forward focus is on the development, production and co-production of content based upon Hasbro brands.

Our film content is exploited on a multi‑territory basis across all media channels, including cinema, home entertainment, broadcast and digital, including Subscription Video‑On‑Demand ("SVOD").

Our original television programming is sold to broadcasters on a series‑by‑series or individual show basis for broadcast on free television, pay television, SVOD and other digital platforms.

Our programming spans a variety of genres, including scripted drama, non‑scripted reality and documentaries, and in multiple formats, including series, television films, mini‑series and specials.

In film, our focus is on the development, production and co-production of films, an increasing number of which are based on Hasbro brands, as well as the acquisition and development of film production rights and the exploitation of these rights on a multi‑territory basis across all media channels, including cinema, physical home entertainment and broadcast and digital.

In October 2017, we entered into an agreement with Paramount Pictures (“Paramount”) to produce and distribute live action and animated films, as well as television programming based on Hasbro brands over a five-year period.

Hasbro’s global eOne studio plays an active role alongside Paramount in content development and production under this relationship.

Hasbro also plays a significant role in financing films created through this cooperative agreement.

Under this relationship we plan to release TRANSFORMERS:

Hasbro plays an active role alongside Paramount in content development, production and distribution in addition to the financing of films created through these cooperative agreements.

Under this relationship we plan to release Dungeons & Dragons:

Honor Among Thieves , expected in early 2023 to be distributed by Paramount and eOne.

In addition, under a

separate agreement entered with Paramount, we plan to release Transformers:

Rise of the Beasts , a feature length film expected in Summer of 2023.

In addition, under a separate agreement entered with Paramount, where Hasbro’s eOne studio will serve as the production entity, we plan to release a DUNGEONS & DRAGONS feature length film, expected in early 2023.

◦ Family Brands Animation .

Our family brands team develops, produces and distributes animation content for children’s properties on a worldwide basis.

The principal brands include MY LITTLE PONY, PEPPA PIG and PJ MASKS, whose content entertains children worldwide and generates revenues around the Hasbro Brand Blueprint through licensing and merchandising programs across multiple retail categories.

Our family brands team develops, produces and distributes animation content for children’s properties on a worldwide basis which results in multiple touchpoints across Blueprint 2.0.

The principal brands include MY LITTLE PONY and PEPPA PIG whose content entertains children worldwide and generates revenues through licensing and merchandising programs across multiple retail categories.

These brands generate revenues from Advertising Video-On-Demand (“AVOD”) through platforms such as YouTube and SVOD revenues from the sale of content to video streaming platforms.

Our portfolio of preschool brand driven content also includes PJ MASKS, CUPCAKE & DINO:

GENERAL SERVICES, and RICKY ZOOM, as well as BABY ALIVE and PLAY-DOH.

• Other Brand Blueprint Areas .

Other aspects of the Hasbro Brand Blueprint that help drive our storytelling experiences include, digital content, e-sports, location-based entertainment, and publishing.

Our portfolio of preschool brand driven content also includes PJ MASKS, BABY ALIVE and PLAY-DOH and the development of new preschool programs and properties.

• Hasbro Direct .

We are investing in our Hasbro Direct business which is our "Fans Come First" approach to creating direct connections with our consumers and includes the following platforms:

◦ Hasbro PULSE - Hasbro's ultimate fan ecommerce destination.

At Hasbro Pulse our fans can find product offerings and experiences from our popular brands as well as access to views of behind-the-scenes material and insider details.

In addition, Hasbro Pulse offers consumers access to product related livestreams such as fan oriented virtual conventions and product and merchandise reveals, as well as the opportunity to participate in HasLab, the Hasbro crowdfunding platform which brings limited-edition collectibles into the hands of fans.

◦ SECRET LAIR - our internet-based storefront where MAGIC:

THE GATHERING fans can purchase exclusive and limited versions of cards.

The Gathering Arena - the free-to-play online adaptation of the MAGIC:

THE GATHERING card game.

◦ D&D Beyond - the premier digital content platform for DUNGEONS & DRAGONS.

• Other Blueprint 2.0 Areas .

Other aspects of our Blueprint 2.0 that help drive our storytelling experiences include digital content, location-based entertainment, and publishing.

◦ Digital Content .

We understand the importance of digital content to drive fan engagement, including in gaming and across other media, and of integrating such content with our products.

Digital media encompasses digital gaming applications and the creation of digital environments for analog products through the use of complementary digital applications, social media and websites which extend storylines and enhance play.

We continue to seek innovative ways to bring our traditional games to the digital world, where consumers can experience our brands and compete with each other in a multiplayer online adventure experience.

A prime example of this is Magic:

The Gathering Arena , our digital gaming version of the MAGIC:THE GATHERING trading card game.

Digital media encompasses digital gaming applications and the creation of digital environments for traditional products through the use of complementary digital applications, social media and websites which extend storylines and enhance play.

◦ Location-Based Entertainment .

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LBE includes licensing our brands to theme parks, water parks, hotels and resorts, family entertainment centers, retail, dining and entertainment, shows, exhibits and exhibitions.

These experiences bring our brands to life and further immerse our consumers in our storytelling.

These experiences bring our brands to life and further immerse our consumers in our storytelling in a capital efficient manner.

◦ Publishing .

Licensing our brands to global publishers is another way to bring our brands to consumers in a meaningful way through various publishing formats, from puzzle and trivia books to novels and comics.

Music remains a key medium to increase brand affinity and awareness.

We create branded music, working with distributors to exploit that music in physical, digital and streaming formats.

We partner our brands with music artists to increase exposure for our products and we work closely with music publishers to collect music publishing income from all manner of exploitation.

• Brand Blueprint in Action.

A few examples of our Brand Blueprint in action during 2021 and beyond are described below.

◦ In 2021, our gaming portfolio grew 19% to $2.1 billion.

Our gaming portfolio is one of the biggest, most profitable and fastest growing combinations of gaming brands across face to face, tabletop and digital platforms in the world.

Led by MAGIC:

THE GATHERING, which had its best year ever, we continue to invest in this growing business.

Tabletop to digital, MAGIC:

THE GATHERING and DUNGEONS & DRAGONS have generated significant growth with high engagement.

We have plans to leverage the power of Wizards’ brands across the Brand Blueprint for both current fans and potential new fans as we have a new MAGIC:

THE GATHERING Netflix series coming later in 2022, and, in early 2023, the planned theatrical release of the DUNGEONS & DRAGONS feature film as described above.

We believe these efforts will harness the full potential of the Brand Blueprint with new products introduced in toy & game and licensed consumer products.

◦ We experienced a successful relaunch of one of our iconic brands, MY LITTLE PONY.

Led by the expertise of our eOne entertainment team, we released My Little Pony:

A New Generation , an animated feature film that was #1 in the Netflix Kids Top 10 in more than 80 countries on opening weekend.

This relaunch fueled greater than 100% growth in toy and game point of sale in the fourth quarter 2021.

We have a significant multi-year content roadmap led by eOne and a deep and innovative merchandise program, which we believe will position this brand to reclaim its place as a leading global lifestyle brand.

◦ Two other valuable brands that benefited from the Brand Blueprint were PEPPA PIG and PJ MASKS.

In August 2021, we launched the first Hasbro toys and games for these leading preschool brands.

PEPPA PIG was one of our top brand growers for 2021, and as we shifted licensed revenue to in-sourced revenue in toys and games, we were still able to grow licensed consumer products revenue, highlighting the powerful reach of PEPPA PIG across categories.

Licensing our brands to global publishers is another way to bring our brands to consumers in a meaningful way through various publishing formats, from puzzle and trivia books to children's stories, adult novels and comics.

• Blueprint 2.0 in Action .

Some examples of our Blueprint 2.0 in action are described below.

◦ PEPPA PIG is a franchise brand that we have expanded across multiple elements of Blueprint 2.0.

Initially acquired in 2020 through the eOne acquisition, and brought to life through the launch of the first Hasbro toys and games for this leading preschool brand in August 2021.

Although we shifted from licensed revenue when acquired, to in-sourced revenue for toys and games, we were able to grow related licensed consumer products revenue, and PEPPA PIG was one of our top growth brands overall in 2022.

This growth highlights the awareness and global reach of the PEPPA PIG brand across these categories and others including digital content, publishing, location-based live entertainment and theme parks.

◦ Within our gaming portfolio we have assembled one of the biggest, most profitable and fastest growing combinations of gaming brands across face-to-face, tabletop and digital platforms in the world.

THE GATHERING, Hasbro's first billion-dollar brand, and DUNGEONS & DRAGONS are two prominent brands that have generated sustained growth with high fan enthusiasm and engagement.

We have leveraged the power of these Wizards’ brands across Blueprint 2.0 for consumers as we continue their development and invest in their growth.

In addition to popular tabletop and digital games, we have the theatrical release of the feature film Dungeons & Dragons:

Honor Among Thieves, expected in March 2023 and we have new MAGIC:

THE GATHERING and DUNGEONS & DRAGONS television series in development.

We believe these efforts will harness the full potential of Blueprint 2.0 where programming attracts the existing multi-generational fan-base, helps to acquire new fans and supports our lineup of consumer products that include specialty games, apparel, accessories and collectibles, as well as publishing that spans children's books to adult novels.

As location-based entertainment continues to expand at retail, it provides a platform where fans can play and further experience these brands.

◦ Our Hasbro Direct business allows us to connect directly with consumers.

With a focus on the adult fan and being developed based on the successes of Hasbro Pulse, our original direct-to-consumer fan-based ecommerce platform, we are currently developing a single destination where fans can access all things Hasbro including products, services and unique experiences.

With the recent addition of D&D Beyond along with our Secret Lair web-based storefront for MAGIC:

THE GATHERING cards and our Magic the Gathering:

Arena digital game, we are expanding our capabilities beyond the traditional ecommerce outlet to serve our consumers and activate brands across Blueprint 2.0.

Connecting with fans directly enables us to showcase and sell brands and gain a deeper understanding of our fans and what they want and expect from Hasbro.

Brand Portfolios

We organize and market owned, controlled and licensed intellectual properties within our brand architecture under the following five brand portfolios:

In 2022, we organized and marketed owned, controlled and licensed intellectual properties within our brand architecture under the following five brand portfolios:

• Franchise Brands

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• MY LITTLE PONY

Includes our flagship owned or controlled brands, which we believe can deliver significant revenues, profits and growth across the brand blueprint over the long term.

Includes our flagship owned or controlled brands, which we believe can deliver significant revenues, profits and growth over the long term.

• In 2022, MAGIC:

THE GATHERING benefited from numerous successful card set releases including Strixhaven, Modern Horizons 2, Adventures in Forgotten Realms and Innistrad:

Midnight Hunt.

• In September 2021, we released the feature length film, MY LITTLE PONY:

A NEW GENERATION, as well as a new MY LITTLE PONY product line.

THE GATHERING benefited from a number of successful card set releases including Kamigawa:

Neon Dynasty, Double Masters 2022, Dominaria United, Streets of New Capenna, Commander Legends:

Battle for Baldur's Gate and The Brother's War.

• The PEPPA PIG brand growth was supported by a full year of revenue from Hasbro’s own PEPPA PIG product line, launched in the second half of 2021.

• In November 2022, partnering with Nickelodeon and Paramount, we released the computer-animated television series Transformers:

EarthSpark on Paramount+, as well as a new related TRANSFORMERS product line.

• PLAY-DOH holiday feature item Play-Doh Ice Cream Truck was a strong performer in 2022.

Partner Brands • MARVEL, including SPIDER-MAN and THE AVENGERS (1)

• LUCASFILMS' STAR WARS (1)

• DISNEY FROZEN (1)(2)

• DISNEY PRINCESS (1)(2)

• SESAME STREET

• DISNEY‘S DESCENDANTS (1)

• GHOST BUSTERS

• INDIANA JONES (1)

(1) Owned by The Walt Disney Company (“Disney”).

(2) License expires at the end of 2022.

Includes those brands we license from other parties for which we develop toy and game products.

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• And many others

Includes the Company’s face-to-face, trading card and digital game experiences played as board, off-the-board, digital, card, electronic, trading card and role-playing games.

• We launched Dungeons & Dragons:

Dark Alliance , a team-based action role-playing game, set in the DUNGEONS & DRAGONS world, in the first half of 2021 for PC and gaming consoles.

Emerging Brands • PEPPA PIG

Includes the Company’s face-to-face and digital game experiences played as board, off-the-board, digital, card, electronic and role-playing games.

• In 2022, Hasbro acquired D&D Beyond, the premier digital content platform for DUNGEONS & DRAGONS.

• New fall introductions included:

Connect 4 Spin, Wordle:

The Party Game and Clue Escape.

Emerging Brands • PJ MASKS

• FURREAL FRIENDS

• POWER RANGERS

• STARTING LINEUP

• SUPER SOAKER

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We also launch new brands in this portfolio.

During 2021, Hasbro launched its toy & game products for the PEPPA PIG and PJ MASKS brands.

Beginning in 2022, we have advanced PEPPA PIG to Franchise Brands.

TV, Film & Entertainment eOne programming series include:

• During September 2022, Hasbro re-launched its line of sports collectibles from STARTING LINEUP with its NBA series and announced plans to expand the product line with an NFL partnership.

TV, Film & Entertainment eOne programming includes:

Television Series

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• Cruel Summer

• DESIGNATED SURVIVOR

• CLIFFORD THE BIG RED DOG

• COME FROM AWAY

• The Rookie:

• The Woman King

eOne also has numerous TV and Film distribution rights including:

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All Hasbro-branded content is included in the portfolios noted above.

• In 2020, due to the pandemic, the entertainment industry saw shutdowns in live-action productions and delays or postponements in releases of productions.

• By early 2021, our production studios were operating in line with pre-pandemic levels, together with appropriate health and safety protocols.

• On November 17, 2022, we announced that the Hasbro's Board of Directors authorized the initiation of a marketing process of certain parts of our eOne TV and film business not directly supporting the Company’s Branded Entertainment strategy.

Hasbro will continue to develop and produce animation, digital shorts, scripted TV and theatrical films for audiences related to core Hasbro IP.

Brand Portfolio Realignment

Effective for the first quarter 2023, we are realigning our brand portfolios to correspond with the evolution of our Blueprint 2.0 strategy.

We plan to focus on fewer, bigger, more profitable brands that showcase our leadership in preschool, games, creativity, outdoor and action brands.

Our new product categories beginning in the first quarter of 2023 are as follows:

◦ Franchise Brands - A refreshed group of our most profitable brands that includes PEPPA PIG, TRANSFORMERS, MAGIC:

THE GATHERING, DUNGEONS & DRAGONS, PLAY-DOH, NERF and HASBRO GAMING as a whole.

◦ Partner Brands - The Partner Brands category will continue to include those brands we license from other parties such as Disney's STAR WARS and MARVEL as well as other partners, for which we develop toy and game products, however we intend to concentrate on those key Partner Brands that give us the biggest growth potential and where we can lead and innovate in the category.

◦ Portfolio Brands - Our Portfolio Brands category will include those brands we own or control which we feel have upside in revenue and profitability that have not yet grown to the significance of a franchise brand.

Reportable Segments

Segment Realignment

Effective for the first quarter 2021, we realigned our reportable segment structure to correspond with the evolution of our company, which includes the integration of our global independent studio, eOne.

The realigned segments represent changes to our reporting structure and reflect management’s allocation of decision-making responsibilities for evaluating the Company’s performance.

Our new reportable segments are:

In 2022, our four reportable segments were:

• Consumer Products

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• As of December 25, 2022, we had offices supporting our Consumer Products business in more than 35 countries contributing to sales in more than 120 countries.

Additionally, we seek to grow internationally through further expansion in Eastern Europe, Asia, Africa and Latin and South America.

Wizards of the Coast and Digital Gaming

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Additionally, we out-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.

Entertainment • Engaged in the development, acquisition, production, distribution and sale of world-class entertainment content including film, scripted and unscripted television, children's programming, digital content and live entertainment.

• Film and TV operations produce film and television content which is sold worldwide to distributors, broadcasters, television networks and streaming platforms.

Entertainment • Engaged in the development, production, distribution and sale of world-class entertainment content including film, scripted and unscripted television, children's programming, digital content and live entertainment.

• Film and TV operations produce film and television content which is sold worldwide to distributors, broadcasters, television networks and streaming platforms with an increasing focus on Hasbro branded entertainment.

While maintaining ownership of the content rights, we sell content for specific time periods to generate broadcast license fees from television content and to collect minimum guarantees and overage participations from films.

• Acquires third-party film and television content.

◦ In television, the Entertainment segment engages in the sale of acquired third-party content internationally.

◦ For acquired films, the Entertainment segment obtains territorial rights from independent producers to distribute in those territories and acquires global rights which are sold internationally.

• Feature length film and television programming based on our owned and controlled brands provide both immersive storytelling and the ability for our consumers to enjoy these properties in different formats, which also drives product sales, results in increased licensing revenues, and expands overall brand awareness.

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In the event the Company is not able to issue commercial paper, we intend to utilize our available lines of credit.

In addition, the Company’s Entertainment operating segment uses production financing to fund certain of its television and film productions which are typically arranged on an individual production basis by either special purpose production subsidiaries or through a senior revolving credit facility obtained in November 2021, dedicated to production financing.

Our customer order patterns may vary from year to year largely due to fluctuations in the degree of consumer acceptance of product lines, supply and product availability, marketing strategies and inventory policies of retailers, TV and film content releases, including the dates of theatrical releases of major motion pictures for which we offer products, and changes in overall economic conditions.

As a result, a disproportionate volume of our net revenues from our consumer products business has historically been earned during the third and fourth quarters leading up to the retail industry’s holiday selling season, including Christmas.

Moreover, quick response, or just-in-time, inventory management practices result in a significant proportion of orders being placed for immediate delivery.

We expect retailers will continue to follow this strategy.

In 2021 and 2020, the second half of the year accounted for approximately 62% and 65% of full year revenues, respectively, with the third and fourth quarters each accounting for approximately 31% of full year net revenues in 2021 and 33% and 32% of full year revenues in 2020.

Prior to the onset of the COVID-19 pandemic, quick response or just-in-time inventory management practices being used by retailers, along with growth in ecommerce resulted in the increasing trend of order placement for immediate delivery and fewer orders being placed well in advance of shipment.

Retailers preferred timing their orders for fulfillment by suppliers closer to the time of purchase by consumers.

To the extent that retailers did not sell as much of their year-end inventory purchases during the holiday selling season as they had anticipated, their demand for additional product earlier in the following fiscal year could be curtailed, thus negatively impacting the Company’s future revenues.

However, more recently the Company's inventory levels and retailer order patterns reflect the impact of global supply chain disruptions, which began in late 2020 related to the COVID-19 pandemic and its after-effects.

During the first half of 2022, the Company accelerated certain inventory purchases, to ensure sufficient finished goods and raw material availability ahead of expected periods of high consumer demand.

However, during the third quarter of 2022, as the effects of supply chain disruptions began to subside, most notably in the U.S, and Europe, the accelerated inventory purchases did not see corresponding increases in sales as consumers were impacted by the economic environment, including lower discretionary consumer income due to higher inflation and rising interest rates, leading to higher inventory levels as compared to prior years.

As a result, the Company launched incremental year-over-year promotional activity behind key holiday toy and game items to reduce inventory on hand and at retail and is continuing to manage inventory levels to ensure adequate supply of new product while clearing excess supply to mitigate the risk of inventory obsolescence.

In 2022 and 2021, the second half of the year accounted for approximately 57% and 62% of full year revenues, respectively, with the third and fourth quarters accounting for approximately 28% and 29%, respectively, of full year net revenues in 2022 and 31% of full year revenues in each of the third and fourth quarters of 2021.

In 2021 and continuing into periods of 2022, supply chain constraints, including overcrowding of cargo ports and shipping container and truck transportation shortages led to higher costs for ocean, air and over the road freight and delays in the availability of products, due to extended inventory transit times.

Historically, we commit to the majority of our inventory production and advertising and marketing expenditures for a given year, prior to the peak fourth quarter retail selling season.

Our accounts receivable balances increase during the third and fourth quarters as customers increase their purchases to meet expected consumer demand in the holiday season.

Due to the concentrated timeframe of this selling period, payments for these accounts receivable are generally not due until later in the fourth quarter or early in the first quarter of the subsequent year.

Our accounts receivable balances typically increase during the third and fourth quarters as customers increase their purchases to meet expected consumer demand in the holiday season.

Due to the concentrated timeframe of this selling period, payments for these

accounts receivable are generally not due until later in the fourth quarter or early in the first quarter of the subsequent year.

The timing difference between expenses paid and revenues collected sometimes makes it necessary for us to borrow varying amounts during the year, however, we have had sufficient liquidity and capital resources throughout 2022 and 2021 and have not had to borrow under our revolving credit facility.

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Much of this work is performed by our internal staff of designers, artists, model makers and engineers.

Development and related costs associated with Wizards of the Coast products are specifically allocated to that line of business, including significant investments in tabletop gaming as well as digital gaming, most notably, for the development of Magic:

The Gathering Arena , the free-to-play adaptation of the MAGIC:

THE GATHERING card game available online and for Dungeons & Dragons:

Dark Alliance , launched for console play during the first half of 2021.

We also continue to invest in Wizards of the Coast tabletop and digital gaming initiatives planned for release in the coming years.

Development and related costs associated with Wizards of the Coast products are specifically allocated to that line of business, including investments in tabletop and digital gaming initiatives as well as those planned for release in the coming years.

In addition to the design and development work performed by our own staff, we work with a number of independent toy and game designers, and compete for their designs and ideas with other toy and game manufacturers.

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In addition to the global marketing function, our local selling entities employ sales and marketing functions responsible for local market activities and execution.

Our products are sold globally to a broad spectrum of customers, including mass-market retailers, distributors, wholesalers, discount stores, drug stores, mail order houses, catalog stores, department stores and other traditional retailers, large and small, as well as ecommerce retailers and direct-to-customer through Hasbro PULSE, our fan-based ecommerce website.

Our products are sold globally to a broad spectrum of customers, including mass-market retailers, distributors, wholesalers, discount stores, specialty hobby stores, drug stores, mail order houses, catalog stores, department stores and other traditional retailers, large and small, as well as ecommerce retailers and direct-to-customer through our fan-focused Hasbro Direct business.

Our own sales forces account for the majority of sales of our products with remaining sales generated by independent distributors who, for the most part, sell our products in areas of the world where we do not otherwise maintain a direct presence.

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Customer Concentration

During 2021, net revenues from our top five retail customers accounted for approximately 36% of our consolidated global net revenues, including our largest customers, Wal-Mart Stores, Inc., Amazon.com and Target Corporation, who represented 13%, 11% and 8%, respectively, of consolidated global net revenues.

During 2022, net revenues from our top five retail customers accounted for approximately 35% of our consolidated global net revenues, including our largest customers, Wal-Mart Stores, Inc.

and Amazon.com who represented 11% and 10%, respectively, of consolidated global net revenues.

Net revenues from the Company’s major customers are reported within the Consumer Products segment, Wizards of the Coast & Digital Gaming segment and the Entertainment segment.

In 2020, ecommerce sales represented a significant portion of overall sales to these customers as consumers increasingly purchased our products online as compared to in-store shopping due to the shutdown and limited access to retail stores during the COVID-19 pandemic and we saw this trend continue throughout 2021 as compared to pre-pandemic levels.

Ecommerce sales continues to represent a significant portion of overall sales to these customers as consumers are continuing to purchase more products online compared to pre-pandemic levels.

Please see Part I, Item 1A.

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Products are strategically cross promoted by spotlighting specific products alongside related offerings in a manner that promotes the sale of not only the selected item, but also those complementary products.

As described earlier, the Hasbro Brand Blueprint strategy includes focusing on reinforcing storylines associated with our brands through several mediums, including television, film, digital gaming and live action experiences.

As described earlier, our Blueprint 2.0 strategy includes focusing on reinforcing storylines associated with our brands through several mediums, including television, film, digital gaming and live action experiences.

Our brands obtain marketing and advertising support through entertainment appearing on major networks globally, theatrical releases as well as on various other digital platforms, such as Netflix and Apple TV.

Through our independent studio we are able to cultivate branded-content and activate and re-ignite our brands, including brands from our vault.

The most recent example of this was the September 2021 release of the MY LITTLE PONY:

A NEW GENERATION animated film produced by eOne, and launched on Netflix globally.

A recent example of this was the November 2022 release of the computer-animated television series Transformers:

EarthSpark on Paramount+ in partnership with Nickelodeon and Paramount.

Many of our new toy and game products are introduced to major customers within one to two years leading up to their year of retail introduction.

We have historically showcased certain new products through international toy shows, including New York City, Hong Kong and Nuremburg, Germany, though with the pandemic our participation in these shows in 2021 was mostly virtual, which is planned to continue in 2022.

Our advertising expenditures are impacted by our product mix in any given year.

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Therefore, we typically incur losses with respect to a particular film prior to and during the film’s theatrical release and profitability for the film may not be realized until after its theatrical release window.

Manufacturing and Supply Chain

During 2021, the majority of our products were manufactured in third-party facilities in the Far East, primarily China, Vietnam and India, using a Hong Kong based wholly-owned subsidiary operation for quality control and order coordination purposes.

Within the U.S.

and Ireland, we utilize two previously owned facilities now operated by Cartamundi, which are located in East Longmeadow, Massachusetts and Waterford, Ireland, to manufacture significant quantities of Hasbro game products under a multi-year manufacturing agreement.

We have diversified our global sourcing mix and decreased our dependence on Chinese manufacturing by increasing production of our products in other countries, including Vietnam and India.

As of December 26, 2021, 48% of third-party product manufacturing was sourced outside of China.

Beginning in early 2020 with the onset of the COVID-19 pandemic, and continuing throughout 2021, we experienced disruptions to supply of our products due to closures of third-party manufacturing facilities across several geographies, primarily in early 2020, or reductions in manufacturing facility operations across multiple geographies throughout 2020 and 2021.

Additionally, we have experienced difficulties in shipping and distributing certain products due to the ongoing global port capacity, shipping container and truck transportation shortages.

These challenges have at times caused delays in the availability of products, which in some instances have led to delayed sales and in certain isolated cases, lost sales.

These and other disruptions are expected to continue into 2022.

completed products which we purchase from unaffiliated manufacturers, are adequate to meet the anticipated demand in 2022 for our products.

Additionally, during 2021 in response to global supply chain disruptions, we have expanded shipping capacity, activated alternate ports in China and the U.S.

Supply Chain and Manufacturing

Beginning in early 2020 with the onset of the COVID-19 pandemic, and continuing into 2022, we experienced disruptions to supply of our products, initially due to closures of third-party manufacturing facilities across several geographies, primarily in early 2020, and reductions in manufacturing facility operations across multiple geographies.

Additionally, we experienced difficulties in shipping and distributing certain products due to supply chain constraints, including overcrowding of cargo ports and shipping container and truck transportation shortages which led to higher costs for ocean, air and over the road freight and delays in the availability of products, due to extended inventory transit times.

These challenges have at times caused delays in the availability of products, which in some instances have led to delayed sales and in certain cases, lost sales.

The impact to our business from these and other disruptions continued into 2022.

However, despite these adverse manufacturing and supply chain conditions, at this time, we believe the manufacturing capacity of our third-party manufacturers, as well as the supply of components, accessories and completed products which we purchase from unaffiliated manufacturers, are adequate to meet the anticipated demand in 2023 for our products.

Additionally, during 2021 and 2022 in response to global supply chain disruptions, we expanded shipping capacity, activated alternate ports in China and the U.S.

and we have prioritized supply based on inventory and customer needs, including the utilization of air freight when needed.

However, if global supply chain challenges do not improve or worsen, or we or our suppliers suffer prolonged manufacturing disruptions due to public health conditions, such as the coronavirus, manufacturing capacity of our third-party manufacturers as well as supply of components, accessories and our products may be adversely impacted.

However, if global supply chain challenges worsen, or we or our suppliers suffer prolonged manufacturing disruptions due to public health conditions, such as the coronavirus, manufacturing capacity of our third-party manufacturers as well as supply of components, accessories and our products may be adversely impacted.

See Part I, Item 1A.

Risk Factors , of this Form 10-K for further information.

Beginning in late 2022, as part of Hasbro's new go-forward strategic plan we launched a multi-year initiative aimed at transforming our global supply chain into a best-in-class network which we expect to deliver competitive advantages through performance efficiency, operating model integration and organizational accountability.

Aligned with the Operational Excellence pillar of our Blueprint 2.0 transformation, we are refining all aspects of our

integrated supply chain from planning and designing to sourcing and delivering, with a multi-year plan to deliver improved capabilities and provide a productivity pipeline to fuel growth at Hasbro.

During 2022, the majority of our products were manufactured in third-party facilities in the Far East, primarily China, Vietnam and India, using a Hong Kong based wholly-owned subsidiary operation for quality control and order coordination purposes.

Within the U.S.

We have diversified our global sourcing mix and decreased our dependence on Chinese manufacturing in recent years by increasing production of our products in other countries, including Vietnam and India.

Most of our toys and games are manufactured from basic raw materials such as plastic, paper and cardboard, although certain products also use electronic components.

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In addition, we compete with digital gaming developers, who focus primarily on digital gaming products.

We also compete with other companies that offer TV and film content and branded entertainment specific to children and their families.

Given the ease of entry into our business we view our primary competition as coming from content providers, digital gaming providers and toy and game companies who are creating entertainment experiences that compete with our brand-driven storytelling and product experiences for consumer attention and spending.

We compete with other companies that offer TV and film content and branded entertainment specific to children and their families.

Given the ease of entry into our business we view our primary competition as coming from toy and game companies, digital gaming providers and content providers who are creating play and entertainment experiences that compete with our brand-driven storytelling and product experiences for consumer attention and spending.

Businesses that create compelling content can readily translate that content into a full range of product offerings.

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in the U.S., competes with a number of other children’s television networks for viewers, advertising revenue and distribution fees.

In addition to contending with competition from other toy and game and entertainment and storytelling companies, we contend with the phenomenon that children are increasingly sophisticated and have been moving away from traditional toys and games.

The variety of digital gaming and digital entertainment offerings available for children has expanded while product life cycles of traditional toys and games have shortened as children move on to more sophisticated offerings at earlier ages.

In addition to contending with competition from other toy and game and entertainment and storytelling companies, we contend with the expanding variety of digital gaming and digital entertainment offerings available for children, while product life cycles of traditional toys and games have shortened.

As a result, our products not only compete with those offerings produced by other toy and game manufacturers and companies offering branded family play and entertainment, we also compete, particularly in meeting the demands of older children, with entertainment offerings of many technology companies, such as makers of tablets, mobile devices, video games and other digital gaming products and screens, and social media companies.

The changing trends in consumer preferences with respect to entertainment and low barriers to entry as well as the emergence of new technologies and different mediums for viewing content, such as the growing number of streaming platform options, continually creates new opportunities for existing competitors and start-ups to develop products and offerings that compete with our entertainment and toy and game offerings.

Environment, Social and Governance (ESG) Performance

At Hasbro, we believe strong Environment, Social, and Governance (ESG) performance drives long-term value creation for all our stakeholders.

Our ESG priorities include climate and sustainability, ethical sourcing and human rights, culture, and human capital management, including Diversity, Equity & Inclusion (DEI), and product and content safety.

The governance of ESG starts with our Board of Directors (Board), with specific oversight by our Nominating, Governance, and Social Responsibility Committee of the Board (Governance Committee).

ESG topics, including DEI, climate, and human rights, are regular agenda items at the Governance Committee.

Additionally, the Audit Committee of our Board oversees SEC and public disclosures in specific areas like conflict minerals, climate risk, and enterprise risk.

Environment, Social and Governance Performance

At Hasbro, we believe strong Environment, Social and Governance (ESG) performance drives long-term value creation for our business and stakeholders.

The following discusses ESG governance and our ESG focus areas and priorities.

ESG governance starts with our Board of Directors (Board), with specific oversight by our Nominating, Governance and Social Responsibility Committee of the Board (Governance Committee).

ESG topics, such as climate, human rights and Diversity, Equity and Inclusion (DE&I), are regular agenda items at Governance Committee meetings.

The Governance Committee analyzes these issues and makes recommendations to the full Board.

In addition, the Audit Committee of our Board oversees SEC and public disclosures in specific areas like conflict minerals, climate and sustainability, and enterprise risk.

Through our Compensation Committee, the Board considers ESG performance and priorities when determining the plan design for compensation, and overall performance of our senior executives.

The full Board receives regular updates regarding our ESG progress.

In addition to Board-level governance, our CEO and the senior management team regularly review our ESG performance, progress and opportunities.

The Chief Purpose Officer, who reports to the CEO and is a member of senior management, is responsible for setting the strategic direction for our global ESG strategy and performance, and ensures the integration of ESG throughout the global organization and supply chain.

Building on Our Success and Reaching New Heights

ESG and Purpose are at the center of our Brand Blueprint and drive how we operate the business.

We continue to integrate ESG across the business and are proud of our innovative, best-in-class strategic initiatives that uphold our purpose and make a positive impact for our stakeholders.

Below are some of the highlights from 2021:

Some of our accolades in the ESG area include:

Key Areas of Focus

• Climate and Sustainability :

In addition to Board-level governance, our CEO and the Executive Leadership Team (ELT) regularly review our ESG performance, progress and opportunities.

Our ESG Committee, chaired by our Chief Purpose Officer and comprised of our ELT, meets several times a year to ensure rigorous management oversight of the Company’s ESG strategy, impact and performance.

The Chief Purpose Officer, together with our Chief Legal Officer and other members of our ELT, set the direction for our global ESG strategy and performance, and ensure the integration of ESG throughout the organization and supply chain.

Building on Our Progress and Reaching New Heights

ESG at Hasbro is the framework for translating our Company’s Purpose into action – getting from “why” we exist to “how” we deliver sustainable, long-term value for our Company and stakeholders.

We continue to integrate ESG across our business and are proud of our strategic initiatives that are intended to further our purpose and make a positive impact for our employees, consumers, investors, and planet.

Below are some ESG highlights from 2022:

Recent recognition for Hasbro’s leadership in promoting and advancing the interests of our stakeholders, our communities and our planet include:

Climate and Environment

Carbon Reduction:

• We recognize the impact our business can have on the environment and are working to reduce our footprint.

We view sustainability challenges as opportunities to innovate and to continuously improve our product design and operational efficiencies.

We believe the long-term viability and health of our own operations and our supply chain, and the significant potential for environmental improvements, are key components to our business success.

Reducing our Carbon Footprint and Setting Science-Based Targets :

We are proud to be taking action on climate.

In 2019, we began a comprehensive measurement of our supply chain footprint, with 100% of our suppliers participating.

We are now in the process of setting science-based targets for our greenhouse gas emission reductions with a near-term 2030 goal, based on limiting emissions to keep warming below 1.5°C above pre-industrial levels, and a long-term 2050 goal, based on net-zero emissions across our value chain.

In addition to taking action to reduce our energy consumption and improve energy efficiency, we support initiatives to increase the generation of renewable energy in the marketplace.

We continue to meet our renewable energy goal, matching virtually 100 percent (99.6%) of the energy used in our owned and operated facilities with investments in renewable energy.

To address the greenhouse gases generated by electricity consumption, we purchase Renewable Energy Certificates (RECs) which support the production of renewable energy such as wind, solar, thermal, and similar renewable sources, at levels equal to what we use from the public grid.

These RECs are bought in and applied to the markets where the energy is used by our facilities across the globe.

We purchase carbon offsets to address the remaining GHG emissions generated by the use of gas and liquid fuel at our leased and owned facilities, company vehicles, all employee business air travel and the remaining small amount (0.4%) of emissions generated by electricity consumption at our facilities in markets where RECs are not available.

We believe the long-term viability and health of our operations and our supply chain, and the potential for environmental improvements, are important components to our business success.

• In January 2022, we committed to set greenhouse gas emission (GHG) reductions with a near-term 2030 goal, based on limiting emissions to keep global warming below 1.5°C above pre-industrial levels, and a long-term 2050 goal, based on net-zero emissions across our value chain.

In joining the Science-Based Target Initiative (SBTi), we expect to leverage a globally accepted methodology for setting GHG reduction targets in line with the goals of the Paris Agreement.

• We continue to invest in renewable electricity.

To address the carbon footprint associated with electricity consumption of our owned and operated facilities, Hasbro purchases Renewable Energy Certificates (RECs), each of which represent one megawatt hour (MWh) of renewable energy generated on the same grid as our electricity consumption.

We purchase RECs to cover virtually 100% of the electricity consumed in each market where available.

The amount of money we have spent in this area has been de minimis.

For example, in fiscal years 2022, 2021 and 2020, we purchased $72K, $100K, and $45K of RECs, respectively.

Other key goals and objectives in this area include:

• Eliminating virtually all plastic in packaging for new products by the end of 2022.

• Expanding our industry-first toy recycling program (currently in 12 countries) in partnership with TerraCycle, a leader in product recycling outside of municipal recycling.

• Reducing energy consumption by 25%, greenhouse gas emissions by 20%, waste to landfill by 50%, and water consumption by 15%, by the end of 2025 for our owned/operated facilities.

• Waste Reduction :

Continue to minimize virgin plastic in single-use disposable toy and game packaging, where feasible.

• Circular Economy :

Continue our industry-first toy recycling program (currently in 12 countries) in partnership with TerraCycle, a leader in product recycling outside of municipal recycling.

Climate Risk and Resilience:

Managing the resilience of our business to the risks of climate change, including severe weather events, is also a priority.

We are working to further integrate climate risk and resilience into our overall enterprise risk management process, including our plans to use the Task Force on Climate-related Financial Disclosures (TCFD) framework.

• Managing the resilience of our business to the potential risks of climate change is a priority.

We are working to further integrate climate risk and resilience into our overall enterprise risk management (ERM) process.

• In 2022, we initiated work to evaluate the integration of the Task Force on Climate-related Financial Disclosures (TCFD) framework into our existing ERM process across four key areas:

governance, risk management, strategy and metrics & targets.

The TCFD framework will identify potential climate risks, guide management of those potential risks and measure the effectiveness of our mitigation measures.

Human Rights and Ethical Sourcing

Our Human Rights and Ethical Sourcing program, first launched in 1993, is dedicated to ensuring that facilities involved in the production of our toys and games, or licensed consumer products, comply with Hasbro’s Global Business Ethics Principles.

• Our Human Rights and Ethical Sourcing program launched over 30 years ago and is dedicated to ensuring that facilities involved in the production of our toys, games and licensed consumer products comply with Hasbro’s Global Business Ethics Principles.

The program is designed to ensure fair and safe working conditions;

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Key goals and objectives in this area include:

• On an annual basis, achieve 100% social compliance audit rate for all third-party vendor and major sub-contractor facilities (Facilities), as well as 100% follow-up audit rate for all Facilities with pending remediation issues.

• Requiring 100% of Facilities to participate and complete the Hasbro Ethical Sourcing Academy, a 30-hour, e-learning social compliance course, which trains and reinforces Hasbro’s rigorous ethical sourcing requirements.

• Ensure 100% third-party suppliers and major subcontractors are audited on an annual basis through unannounced audits, supplemented by spot, oversight audits.

• Require 100% of third-party suppliers and major subcontractors to participate and complete the Hasbro Ethical Sourcing Academy, a 30-hour, e-learning social compliance course, which trains and reinforces Hasbro’s rigorous ethical sourcing requirements.

This mandatory online training is in addition to monthly, in-person vendor workshops that the Hasbro Ethical Sourcing team hosts in our sourcing office locations around the world.

• Empowering female factory workers through our Worker Well-Being program, which provides life-enhancing skills training and knowledge on topics from nutrition and reproductive health to problem solving and financial literacy.

• Empower factory workers through our Worker Well-Being program, which provides life-enhancing skills training and knowledge on topics from nutrition and reproductive health to problem solving and financial literacy.

Human Capital Management

Our key human capital management objectives for our direct workforce are to attract, develop and retain diverse talent.

The experience, dedication and diverse backgrounds of our employees are at the heart of our success, energizing everything we do, from developing innovative products to creating immersive gaming and entertainment experiences.

Working together, we seek to create a culture that embraces our values of Community, Creativity, Inclusion, Integrity and Passion.

We also believe that when everyone feels valued, they feel empowered to deliver their best every day.

As our organization continues to grow and evolve, we remain steadfast in our ambition to provide a supportive and inclusive community that is the best place our employees have ever worked.

Our governance of human capital falls within the governance structure for ESG overall.

Our teams are inspired by our Purpose of creating joy and community for all people around the world.

Our inclusive culture sets us up to deliver excellence, build impactful brands and expand our leadership in play, entertainment and beyond.

As our organization continues to evolve, we remain steadfast in our ambition to provide a supportive and inclusive community where everyone can show up authentically as themselves and deliver their best work.

The following discusses our governance of human capital management and our key focus areas and priorities.

Our governance of human capital management falls within the governance structure for ESG overall.

The Governance Committee of the Board oversees the company’s human capital policies and practices, including the Company’s approach to promoting diversity, equity and inclusion in the workplace.

The Compensation Committee of the Board oversees our compensation programs.

Our Chief Human Resources Officer ("CHRO") is responsible for developing and executing key aspects of our human capital strategy, including the attraction, acquisition, development, and engagement of talent to deliver on the Company’s strategy and the design of competitive compensation and employee benefit programs.

Our Chief Purpose Officer (CPO) is responsible for developing and executing our strategy for human rights and ethical sourcing programs for the workers across our supply and value chain.

Our CPO and CHRO sit on our internal DEI Steering Committee, a committee comprised of global management leaders from various parts of the business.

The DEI Steering Committee is responsible for setting the DEI strategy, and our Senior Vice President of DEI is responsible for executing the strategy.

As of December 26, 2021, we employed 6,640 people worldwide, with approximately 51% of our employees in North America (42% in the United States;

Our Chief People Officer, who reports to the CEO and is a member of our ELT, is responsible for developing and executing key aspects of our human capital strategy, including the attraction, acquisition, development and engagement of talent to deliver on the Company’s strategy, the design of competitive compensation and employee benefit programs.

Our Chief Purpose Officer, together with other members of our ELT, are responsible for developing and executing our global ESG strategy, including our human rights and ethical sourcing programs for the workers across our supply and value chain.

Our CEO and Chief People Officer chair our internal DE&I Steering Committee, a committee comprised of global management leaders from various parts of the business.

The DE&I Steering Committee is responsible for setting

and reviewing the Company’s DE&I strategy and performance and identifying any gaps and opportunities.

Our Senior Vice President of DE&I and Multicultural Strategy is responsible for executing the strategy and presenting our DE&I progress to the Board twice yearly.

As of year-end 2022, we employed approximately 6,490 people worldwide, with approximately 53% of our employees in North America (45% in the United States;

8% in Canada), 22% in Europe, 18% in Asia Pacific, and 6% in Latin America (includes Mexico).

As of fiscal year end, approximately 55% of our global workforce was female, 46% of our employees in managerial roles (director level and above) were female, and minorities represented approximately 22% of the Company's U.S.

As of year-end, approximately 53% of our global workforce was female, 45% of our employees in managerial roles (director level and above) were female, and racially/ethnically diverse employees represented approximately 22% of the Company's U.S.

workforce, of which 15% were in managerial roles.

workforce, we also disclose our diversity by job type (based on the EEO-1 filing), which is available on our CSR website.

The contents of our CSR website are not incorporated herein.

workforce, we also disclose our diversity by job type (based on the EEO-1 filing), which is available in our publicly available ESG Progress Report 2021-2022.

The contents of our ESG Progress Report are not incorporated herein.

Approximately 11% of our employees globally are covered by unions or collective bargaining agreements.

Key Areas of Focus:

Diversity, Equity, and Inclusion

We believe that the more inclusive we are as a company, the more effective our employees will be and the stronger our business will perform.

Hasbro views DEI as a strategic ESG priority that is linked to the future success of our business and the growth of our brands.

In 2018, our former Chairman and CEO, Brian Goldner, along with 800 other CEOs, signed on to the CEO Action for Diversity and Inclusion pledge, developed by the accounting firm PwC, to publicly affirm Hasbro’s commitment to DEI as a fundamental value and corporate priority.

A summary of some of the significant steps we have taken to further build a culture of DEI within our organization include:

◦ Establishing a DEI function responsible for DEI programs and initiatives, talent acquisition and employee engagement.

◦ Holding numerous meetings with employees across the U.S., outlining the business case for DEI.

◦ Launching a Global Diversity, Inclusion and Belonging program to discuss employee experiences and concerns in the aftermath of social unrest.

◦ Implementing unconscious bias training to help acknowledge subtle biases, which impact employee and management behavior, from hiring to project team selections and people management.

◦ Setting ambitious DEI goals for the organization:

▪ Increasing female representation in management (Director +) roles globally to 50% by 2025;

▪ Expanding ethnically and racially diverse employee representation in the U.S.

to 25% by 2025;

▪ Targeting a 50% diverse slate of candidates when recruiting for open U.S.

positions where there is ethnic and minority underrepresentation.

Hasbro views DE&I as a strategic ESG priority that is linked to the success of our business and the growth of our brands.

We want our work to move beyond traditional gender and demographic stereotypes and to celebrate people of all backgrounds and lived experiences.

We know this work begins with our people, and we work diligently to foster an inclusive culture with a diverse workforce that reflects the consumers and communities we serve globally.

Recent steps we have taken to further build a culture of DE&I within our organization and within the industries and communities in which we operate include:

• On track to achieve our 2025 DE&I goals for the organization, including:

◦ Increasing female representation in leadership (Director +) roles globally to 50%

◦ Increasing ethnically and racially diverse employee representation in the U.S.

• Continued our work to foster a culture of inclusion through unconscious bias training and Employee Network events.

• Issued a DE&I spotlight report, as a part of our comprehensive ESG Progress Report 2021-2022, that outlines our commitments, strategies and progress in fostering DE&I.

Employee Engagement

At Hasbro, we support 12 Employee Resource Groups (ERGs), with nearly 1,000 members, reflecting our diverse employee population and the dynamic opportunities for employee engagement.

These groups give voice to member concerns, create opportunities for networking and leadership skills development, aid in employee recruitment and retention efforts, and celebrate ethnic and cultural themes important to our workforce.

In addition to our ERGs, we established a Business Resource Group (BRG), which provides a channel for the ERGs to consult on business decisions and programs, many related to diversity, as well as on the marketing, design, and content of products.

At Hasbro, we support a number of Employee Resource Groups (ERGs).

These groups reflect our diverse employee population and provide dynamic opportunities for employee engagement.

Our ERGs give voice to member concerns, create opportunities for networking and leadership skills development, support employee recruitment and retention efforts and celebrate ethnic and cultural themes important to our global team.

In addition to our ERGs, we established a Business Resource Group (BRG), which provides a channel for the employees to provide the business with input, guidance and perspective on strategic brand development and marketing initiatives early in the creation process related to race, ethnicity, gender identity, sexual orientation, veteran status and ability.

Compensation, Health, Safety & Well-being of Employees

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We recognize and reward our employees with a total rewards package that includes competitive base pay, equity compensation (for certain levels), annual incentives, product discounts and other comprehensive benefits, including wellness programs that help people integrate work and life commitments.

We regularly review salary ratios for men and women in similar roles to help maintain internal equity and market competitiveness across the globe, including among managers.

Competitive compensation is the cornerstone of our total rewards program.

We regularly review salary ratios for men and women in similar roles to help maintain internal equity and market competitiveness across the globe.

We review both industry and local market data at least annually to identify trends and market gaps to maintain the competitiveness of our compensation and employee benefit programs.

When conducting our global compensation reviews, we analyze salary information by a variety of factors, including gender globally and ethnicity in the United States.

When designing our compensation and employee benefit programs, we also look beyond the fundamentals of these important components and consider the bigger picture of how these programs contribute to the overall employee experience.

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We support our colleagues’ well-being, which includes mental, physical and financial wellness, through a number of programs, including:

◦ Employee Wellness & Happiness Teams organized in our major offices that offer wellness programs.

◦ Wellness programming in our major offices, facilitated by the global Employee Wellness Network.

◦ Robust employee assistance programs, including virtual therapy sessions, that help employees experiencing stress or other mental health needs.

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◦ Webinars for managers to help identify risk factors and types of mental health issues.

◦ Financial wellness resources offered by third-party partners that can assist our employees with retirement and other financial planning services.

◦ A commitment to flexible work arrangements to help employees with work-life balance and to take care of health needs.

◦ Financial wellness resources offered by third-party vendors with whom we work that can assist our employees with retirement and other financial planning services.

In 2021, our organization continued to showcase great resilience, with most of our workforce continuing to work remotely due to the COVID-19 pandemic.

As part of our ongoing commitment to supporting our diverse and geographically dispersed employee population, we issued regular and frequent communications to ensure the health, safety and, welfare of our employees.

We encourage a continuous dialogue with our employees by inviting their feedback and, as a result, we continue to learn about and respond to their concerns.

We provided technological tools, ergonomic support, internet capacity, mental health support and many other tools designed to support our workforce in working effectively in their homes or safely on site, if their jobs so required it.

We developed engaging COVID-19 handbooks for employees returning to work in our offices around the world and implemented robust employee health and safety protocols and sanitization in our owned and operated offices and facilities globally.

We provided employees with a stipend to help them with expenses relating to remote work.

In the U.S., we adopted changes to certain employee benefit plans that were authorized by legislation enacted as a result of COVID-19 to allow greater flexibility and broader coverage to our employees in the event they were negatively impacted by COVID-19.

Our employees’ health, safety and well-being during the pandemic has been a top priority.

• Training and Talent Development .

◦ Hybrid or remote work set-up for many of our employees to ensure a flexible and agile work environment.

Talent Development and Performance Management

We are committed to the continued development of our people.

Strategic talent reviews and succession planning occur on a planned cadence annually – globally and across all business areas.

The CEO and CHRO convene meetings with senior company leadership and the Board to review top company talent.

The CEO and Chief People Officer convene meetings with senior company leadership and the Board to review top company talent.

We provide opportunities for our employees to grow their careers.

We have programs and training to help develop our employees, such as the Hasbro Management Academy, a global program for managers that identifies and describes what it takes to be an effective leader at Hasbro.

We invest in the development of our employees by providing in-house training and opportunities to participate in third-party programs, including specialized training as well as broader academic pursuits.

• Community Service .

The power of service is core to our culture.

We cultivate this culture of community and volunteerism by offering our employees four hours of paid time off every month to volunteer with programs and organizations benefiting children, DEI, environmental stewardship, and other important causes.

In addition, team-building company-sponsored volunteer projects are organized throughout the year providing large groups of employees the opportunity to make a meaningful difference in their communities.

Our Global Day of Joy is Hasbro’s annual, company-wide day of service and has become a cherished company tradition.

The annual tradition takes place every December, and employees from each Hasbro office around the world participate in service projects to benefit child-focused organizations.

Finally, in 2021, we also began offering skills-based volunteer opportunities to encourage our employees with specific skills, talents, and professions to donate their time to organizations and communities in need, pro bono.

Overall, in 2021, 92% of eligible employees around the world completed more than 250 service projects to positively impact the lives of more than 100,000 children.

Philanthropy and Social Impact

Giving back to our local and global communities is core to our heritage and our culture.

We empower our team members to give back through our volunteer program which grants four hours paid time off per month to volunteer in programs that support children, underserved communities, the environment and other important areas of impact.

In addition, team-building company-sponsored volunteer projects and skills-based volunteer opportunities are organized throughout the year, supporting our employees the opportunity to make a meaningful difference in their communities around the world.

Global Day of Joy is Hasbro’s annual, company-wide day of service and has become a cherished tradition.

Global Day of Joy takes place every December, and employees from each Hasbro office participate in service projects to benefit a variety of organizations.

In 2022, 84% of eligible employees around the world completed more than 350 service projects.

Trademarks, Copyrights and Patents

We seek to protect our products, for the most part, and in as many countries as practical, through registered trademarks, copyrights and patents to the extent that such protection is available, cost effective, and meaningful.

The loss of such rights concerning any particular product is unlikely to result in significant harm to our business, although the loss of such protection for a number of significant items might have such an effect.

The loss of such rights concerning any particular product is unlikely to result in significant harm to our business.

Government Regulation

Our toy and game products sold in the United States are subject to the provisions of The Consumer Product Safety Act, as amended by the Consumer Product Safety Improvement Act of 2008, (as amended, the “CPSIA”), The Federal Hazardous Substances Act (the “FHSA”), The Flammable Fabrics Act (the “FFA”), and the regulations promulgated thereunder.

In addition, a few of our products, such as the food mixes for our EASY-BAKE ovens, are also subject to regulation by the Food and Drug Administration.

In addition, a few of our products, are also subject to regulation by the Food and Drug Administration.

The CPSIA empowers the Consumer Product Safety Commission (the “CPSC”) to take action against hazards presented by consumer products, including the formulation and implementation of regulations and uniform safety standards.

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The Children’s Television Act of 1990 and the rules and regulations of the United States Federal Communications Commission, the rules and regulations of the Federal Trade Commission, as well as the laws of certain other countries, also place limitations on television commercials during children’s programming and on advertising in other forms to children, and on the collection of information from children, such as restrictions on collecting information from children under the age of thirteen subject to the provisions of the Children’s Online Privacy Protection Act.

In addition to laws restricting the collection of information from children, our business is subject to other regulations, such as the General Data Protection Regulation which became effective in the European Union in May 2018, which restricts the collection, use, and retention of personal information, as well as data protection laws in the United States and other countries.

In addition to laws restricting the collection of information from children, our business is subject to other regulations, such as the General Data Protection Regulation in the European Union, which restricts the collection, use, and retention of personal information, as well as data protection laws in the United States and other countries.

Failure to comply with any of those restrictions can subject us to severe liabilities.

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Name Age Position and Office Held Period

58 Interim Chief Executive Officer Since 2021

58 Executive Vice President and Chief Financial Officer Since 2013

Christian Cocks (1)

48 President and Chief Operating Officer, Wizards of the Coast & Digital Gaming Since 2016

Eric Nyman (4)

49 Chief Consumer Officer and Chief Operating Officer, Hasbro Consumer Products Since 2021

Darren Throop (5)

57 Chief Executive Officer, Entertainment One Since 2020

Tom Courtney (6)

61 Executive Vice President, Chief Global Operations Officer Since 2017

Michael Hogg (7)

67 Executive Vice President and Chief Commercial Officer Since 2020

Dolph Johnson 63 Executive Vice President and Chief Human Resources Officer Since 2012

49 Chief Executive Officer Since 2022

59 Executive Vice President and Chief Financial Officer Since 2013

Cynthia Williams (3)

55 President and Chief Operating Officer of Wizards of the Coast and Digital Gaming Since 2022

Najuma Atkinson (4)

51 Chief People Officer Since 2022

Tarrant Sibley (5)

54 Executive Vice President and Chief Legal Officer and Secretary Since 2019

*Effective Feb 25, 2022, Christian Cocks has been appointed as CEO and a Director, Eric Nyman has been appointed as President and Chief Operating Officer, and Rich Stoddart will no longer serve as interim CEO and will become Chair of the Board.

Stoddart was appointed to serve as interim CEO in October 2021;

Stoddart, most recently the Lead Independent Director of the Board, was appointed to the Company's Board in 2014.

Stoddart was President and Chief Executive Officer of InnerWorkings, Inc., from 2018 to 2020;

prior thereto, Chief Executive Officer of Leo Burnett Worldwide from February 2017 to 2018, the Chief Executive Officer of Leo Burnett North America from 2013 to 2017 and the President of Leo Burnett North America from 2005 to 2013.

(1) Prior thereto, President and Chief Operating Officer of Wizards of the Coast and Digital Gaming from 2021, and President of Wizards of the Coast from 2014 to 2021.

(2) Prior thereto, Senior Vice President and Chief Financial Officer from 2009 to 2013.

(3) Effective February 25, 2022, Mr.

Cocks will become Chief Executive Officer of Hasbro.

(4) Effective February 25, 2022, Mr.

Nyman will become President and Chief Operating Officer of Hasbro.

Prior thereto, he served as Chief Consumer Officer and Chief Operating Officer of Hasbro Consumer Products from 2021-2022, Chief Consumer Officer from 2020-2021, President, North America Sales and Marketing from 2018-2020, President US Sales Marketing from 2016-2020, and President-Canada from 2015-2016.

Throop was appointed an executive officer of Hasbro in February 2020.

He has served as Chief Executive Officer of eOne since 2003.

(6) Prior thereto, Senior Vice President and General Manager, Global Operations, from 2012 to 2017.

(7) Prior thereto, Chief Operating Officer, Commercial Markets from 2018 to 2019;

prior thereto, President, Hasbro North America from 2011 to 2018.

(3) Prior thereto, Ms.

Williams worked in different executive capacities at Microsoft Corporation, from 2018 to 2022, including most recently as General Manager and Vice President, Gaming Ecosystem Commercial Team.

(4) Prior to joining Hasbro in 2022, Ms.

Atkinson served as Senior Vice President of Global HR Services at Dell Technologies, from 1999 to 2021.

(5) Prior thereto, Senior Vice President, Chief Legal Officer and Secretary from 2018 to 2019 and Senior Vice President and Deputy General Counsel from 2010 to 2018.

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What changed 10-K

Item 1. Business