What changed in this filing

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Item 8. Financial Statements and Supplementary Data

2023-02-22 compared with 2022-02-23 · 320 added, 395 removed, 1392 unchanged (34% of the section changed)

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The communication of a critical audit matter does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

Impairment of the carrying value of the investment in Discovery Family Channel

As discussed in Note 7 to the consolidated financial statements, the Company’s equity method investment in Discovery Family Channel, Inc.

(DFC) at December 26, 2021 was $161.2 million.

During the fourth quarter ended December 26, 2021, the Company recorded an impairment loss of $74.1 million related to its investment with Discovery.

The Company tests it equity method investment in DFC annually or whenever an event or circumstance occurs that indicates that the carrying value may not be recoverable.

We identified the evaluation of the impairment of investment in DFC as a critical audit matter.

The forecasted revenue, discount rate, and terminal growth rate used to estimate the fair value of the investment involved a high degree of auditor subjectivity given the volatility in consumer interest when choosing

entertainment media.

The fair value is also sensitive to changes to the forecasted revenue, discount rate, and terminal growth rate assumptions.

Fair value of the Power Rangers definite-lived intangible asset

As discussed in Note 1 and 6 to the consolidated financial statements, the Company reviews intangible assets with definite lives for impairment whenever events or changes in circumstances occur that indicate that the carrying value may not be recoverable.

The carrying value of definite-lived intangible assets as of December 25, 2022 was $738.9 million, a portion of which related to the Company’s Power Rangers definite-lived intangible asset.

During the fourth quarter of 2022, the Company recognized an impairment charge of $281.0 million related to its Power Rangers definite-lived intangible asset.

We identified the evaluation of the fair value of the Power Rangers definite-lived intangible asset as a critical audit matter.

A high degree of subjective auditor judgment was required to evaluate the forecasted revenue and

discount rate assumptions used to estimate fair value.

The estimate of fair value was sensitive to changes in the discount rate.

In addition, valuation professionals with specialized skills and knowledge were required to assess the discount rate.

The following are the primary procedures we performed to address this critical audit matter.

We evaluated the design and tested the operating effectiveness of certain internal controls related to the impairment evaluation process.

This included controls related to the review of forecasted revenue, discount rate, and terminal growth rate assumptions.

We assessed the Company’s ability to accurately estimate forecasted revenue by comparing historical forecasts to actual revenue reported by DFC.

We also compared revenue forecasts to executed contracts.

We involved a valuation professional with specialized skills and knowledge who assisted in:

• evaluating the discount rate by comparing it against a discount rate that was independently developed using publicly available data for comparable entities

• evaluating the terminal growth rate by comparing it against publicly available industry reports and to DFC’s historical revenue growth

• developing an estimate of the fair value of the investment using (1) DFC’s forecasted cash flows and estimated terminal growth rate and (2) an independently developed discount rate, which was then compared to the Company’s fair value estimate.

We evaluated the design and tested the operating effectiveness of certain internal controls related to the definite-lived intangible asset impairment process.

This included controls related to the development of the forecasted revenue and discount rate assumptions used to estimate fair value.

We assessed the Company’s ability to accurately estimate forecasted revenue by comparing historical forecasts to actual results.

We evaluated the reasonableness of forecasted revenue by comparing it to available external industry data and other internal information.

We involved valuation professionals with specialized skills and knowledge, who assisted in:

• evaluating the discount rate by comparing it to a discount rate range that was independently developed using publicly available data for comparable entities

• developing an estimate of the fair value of the intangible asset using the Company’s assumption of forecasted cash flows and an independently developed discount rate, which was then compared to the Company’s fair value estimate.

We have not been able to determine the specific year that we began serving as the Company’s auditor, however, we are aware that we have served as the Company’s auditor since at least 1968.

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Reclassifications to earnings, net of tax:

Net losses (gains) on cash flow hedging activities 2.6 ( 19.3 ) ( 18.5 )

Net (gains) losses on cash flow hedging activities ( 16.2 ) 2.6 ( 19.3 )

Amortization of unrecognized pension and postretirement amounts 1.3 2.2 2.0

Settlement of U.S.

defined benefit plan — — 85.9

Other comprehensive (loss) earnings, net of tax ( 40.3 ) ( 10.8 ) 110.3

Other comprehensive loss, net of tax ( 19.6 ) ( 40.3 ) ( 10.8 )

Total comprehensive earnings, net of tax 183.4 395.0 214.6

Total comprehensive earnings attributable to noncontrolling Interests 6.6 2.9 —

Total comprehensive (loss) earnings attributable to noncontrolling Interests ( 0.5 ) 6.6 2.9

Total comprehensive earnings attributable to Hasbro, Inc.

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Fair value adjustment on Discovery Option — ( 20.1 ) ( 1.5 )

Non-cash pension settlement — — 111.0

Amortization of intangible assets 105.3 116.8 144.7

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Changes in operating assets and liabilities, net of acquired and disposed balances:

(Increase) decrease in accounts receivable ( 159.5 ) 210.8 ( 211.5 )

Decrease (increase) in accounts receivable 339.6 ( 159.5 ) 210.8

(Increase) decrease in inventories ( 139.5 ) ( 173.9 ) 62.8

(Increase) decrease in prepaid expenses and other current assets ( 30.6 ) ( 7.5 ) 18.1

Decrease (increase) in prepaid expenses and other current assets 17.0 ( 30.6 ) ( 7.5 )

Program spend, net ( 767.7 ) ( 697.3 ) ( 438.9 )

Increase in accounts payable and accrued liabilities 313.2 49.3 62.3

Increase (decrease) in accounts payable and accrued liabilities ( 278.7 ) 313.2 49.3

Change in net deemed repatriation tax ( 18.4 ) ( 18.4 ) ( 18.4 )

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Proceeds from sale of business, net of cash — 378.5 —

Net gains on derivative contracts — — 80.0

Other 7.5 ( 3.8 ) 38.5

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Repayments of borrowings ( 206.0 ) ( 1,220.1 ) ( 275.5 )

Net repayments of other short-term borrowings ( 5.6 ) ( 8.6 ) ( 8.8 )

Net proceeds (repayments) of other short-term borrowings 141.7 ( 5.6 ) ( 8.6 )

Purchases of common stock ( 125.0 ) — —

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Redemption of equity instruments — — ( 47.4 )

Deferred acquisition payments — — ( 100.0 )

Proceeds from issuance of common stock — — 975.2

Debt extinguishment costs — ( 9.1 ) —

Debt acquisition costs — — ( 26.7 )

Other ( 32.7 ) ( 11.4 ) ( 13.1 )

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Effect of exchange rate changes on cash ( 12.7 ) ( 30.6 ) ( 12.7 )

(Decrease) increase in cash, cash equivalents and restricted cash ( 430.5 ) ( 3,130.7 ) 3,398.0

Decrease in cash, cash equivalents and restricted cash ( 506.1 ) ( 430.5 ) ( 3,130.7 )

Cash, cash equivalents and restricted cash at beginning of year 1,019.2 1,449.7 4,580.4

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Balance, December 29, 2019 $ 110.1 2,275.8 4,354.7 ( 184.2 ) ( 3,560.7 ) — $ 2,995.7 $ —

Net earnings — 520.5 — — — 520.5 —

Equity issuance, net of fees 5.3 969.9 — — — — 975.2 —

Other comprehensive earnings — — — 110.3 — — 110.3 —

Noncontrolling interests related to acquisition of eOne — — — — — 43.3 43.3 26.2

Net earnings attributable to Hasbro, Inc.

— — 222.5 — — — 222.5 —

Net earnings attributable to noncontrolling interests — — — — — 2.5 2.5 0.4

Buyout of noncontrolling interest — 0.6 — — — — 0.6 —

Other comprehensive loss — — — ( 10.8 ) — — ( 10.8 ) —

Stock-based compensation transactions — 1.9 — — 8.7 — 10.6 —

Purchases of common stock — — — — ( 61.4 ) — ( 61.4 ) —

Stock-based compensation expense — 49.4 — — 0.3 — 49.7 —

Dividends declared — — ( 373.0 ) — — — ( 373.0 ) —

Distributions paid to noncontrolling owners and other foreign exchange — 1.4 — — — ( 5.8 ) ( 4.4 ) ( 2.2 )

Balance, December 27, 2020 $ 110.1 2,329.1 4,204.2 ( 195.0 ) ( 3,551.7 ) 40.0 $ 2,936.7 $ 24.4

Noncontrolling interests related to acquisition of eOne — — — — — 43.3 43.3 26.2

Net earnings attributable to Hasbro, Inc.

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Net earnings attributable to noncontrolling interests — — — — — 3.3 3.3 3.3

Buyout of noncontrolling interest — 0.6 — — — — 0.6 —

Change in put option value — ( 1.3 ) — — — — ( 1.3 ) —

Other comprehensive loss — — — ( 40.3 ) — — ( 40.3 ) —

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— — 203.5 — — — 203.5 —

Net earnings attributable to noncontrolling interests — — — — — 3.3 3.3 3.3

Net earnings (loss) attributable to noncontrolling interests — — — — — ( 1.1 ) ( 1.1 ) 0.6

Change in put option value — ( 0.4 ) — — — — ( 0.4 ) —

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Stock-based compensation transactions — 23.5 — — 25.0 — 48.5 —

Purchase of common stock — — — — ( 125.0 ) — ( 125.0 ) —

Stock-based compensation expense — 83.1 — — 0.3 — 83.4

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Distributions paid to noncontrolling owners and other foreign exchange — — — — — ( 2.5 ) ( 2.5 ) ( 1.9 )

Buyout of redeemable noncontrolling interest — 4.5 — — — ( 4.5 ) — ( 22.6 )

Balance, December 25, 2022 $ 110.1 2,540.6 4,071.4 ( 254.9 ) ( 3,634.4 ) 29.1 $ 2,861.9 $ —

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The fiscal years ended December 25, 2022, December 26, 2021, and December 27, 2020 were all fifty-two week periods.

Blueprint 2.0 and Operational Excellence Charges

On October 4, 2022, the Company announced the results of its strategic review, Blueprint 2.0, a new customer-centric approach focusing on fewer, bigger brands, expanded licensing, branded entertainment, and high-margin growth in games, digital and direct.

As the Company began implementing this new strategy, charges of $ 322.4 million were recorded for the year ended December 25, 2022, consisting of:

a loss associated with the disposal of non-core businesses within the Entertainment segment of $ 21.1 million included within Loss on Disposal of Business;

asset impairments and charges within the Corporate and Other segment of $ 281.3 million, of which $ 281.0 million relates to a partial impairment of the Company's definite-lived Power Rangers intangible asset, in Selling, Distribution and Administration;

incurred incremental asset charges related to inventory reserve and asset write offs of $ 14.9 million in Cost of Sales within the Consumer Products segment;

and, strategy related asset impairments within the Entertainment segment of $ 4.1 million related to the discontinuation of certain projects.

The businesses exited do not constitute a material part of the Company's operations.

See note 6 for further information.

In support of Blueprint 2.0, the Company also announced an Operational Excellence program.

Charges of $ 106.4 million were recorded for the year ended December 25, 2022 related to this program, consisting of severance and other employee charges of $ 94.1 million and program related transformation office and consulting fees of $ 12.3 million included within Selling, Distribution, and Administration within the Corporate and Other segment.

D&D Beyond Acquisition

On May 19, 2022, the Company acquired D&D Beyond, a strategic, complementary acquisition of the premier digital content platform for DUNGEONS & DRAGONS, which has accelerated our direct-to-fans capability for DUNGEONS & DRAGONS in physical and digital play.

The all-cash transaction in the amount of $ 146.3 million was funded with cash on hand.

The allocation of assets acquired includes $ 81.4 million to intangible assets, $ 64.7 million to goodwill, with the remainder allocated to property, plant, and equipment.

Cash, Cash Equivalents and Restricted Cash

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This type of investment is also included in prepaid expenses and other current assets in the accompanying consolidated balance sheets.

however, due to its nature and business purpose, the Company records unrealized gains and losses in accumulated other comprehensive loss in the consolidated balance sheets until it is sold or the decline in value is deemed to be other than temporary, at which point the gains or losses will be recognized in the consolidated statements of operations.

AND SUBSIDIARIES

Notes to Consolidated Financial Statements — (Continued)

Accounts Receivable and Allowance for Credit Losses

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Accounts receivable, net on the consolidated balance sheet represents amounts due from customers less the allowance for credit losses as well as allowances for discounts, rebates and returns.

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Notes to Consolidated Financial Statements — (Continued)

Inventories are valued at the lower of cost (first-in, first-out) or net realizable value.

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The value of the redeemable noncontrolling interests is presented in the consolidated balance sheets as temporary equity between liabilities and shareholders' equity.

During 2022, the Company redeemed all outstanding redeemable noncontrolling interest in Renegade Entertainment, LLC, the only entity for which the Company previously held redeemable noncontrolling interest.

During 2022, the Company's outstanding non-redeemable noncontrolling interest in Round Room Live, LLC was included with the disposition of certain non-core businesses associated with the Company's Blueprint 2.0 strategy shift.

The value of the non-redeemable noncontrolling interests is presented in the consolidated balance sheets within total shareholders' equity.

Earnings (losses) attributable to the redeemable noncontrolling interests and non-redeemable noncontrolling interests are presented as a separate line on the consolidated statements of operations which is necessary to identify those earnings (losses) specifically attributable to Hasbro.

A breakout of the remaining redeemable noncontrolling interests and non-redeemable noncontrolling interests as of December 26, 2021 is listed below.

The Company's remaining non-redeemable noncontrolling interests as of December 25, 2022 is shown below.

Name Country of Incorporation Ownership Interest Proportion Held Principal Activity

Astley Baker Davies Limited England and Wales Nonredeemable 70 % Ownership of intellectual property

Renegade Entertainment, LLC United States Redeemable 65 % Production of television programs

Round Room Live, LLC United States Nonredeemable 60 % Production of live events

Property, Plant and Equipment, Net

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If the Company determines that a reporting unit has an indication of impairment based on the qualitative assessment, it is required to perform a quantitative assessment.

During the first quarter of 2021, the Company realigned its financial reporting structure creating the following three principal reporting segments:

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

As a result of these changes, the Company reallocated its goodwill among the revised reporting units based on the change in relative fair values of the respective reporting units.

(See note 6 for details on the allocation of goodwill across the Company's new reporting structure.)

During the third quarter of 2022, the Company determined to exit certain non-core businesses within the Entertainment segment.

A revaluation of the effected businesses resulted in a pre-tax non-cash goodwill impairment charge of $ 11.8 million, recorded within Loss on Disposal of Business in the Consolidated Statement of Operations, and within the Entertainment segment for the year ended December 25, 2022.

During the fourth quarter of 2022 the Company performed a qualitative goodwill assessment with respect to each of its reporting units and determined that the fair values of the Company’s reporting units exceeded their

AND SUBSIDIARIES

Notes to Consolidated Financial Statements — (Continued)

In the third quarter 2021, the Company sold eOne Music for net proceeds of $ 397.0 million.

carrying values.

As a result of this assessment, the Company concluded that, other than the Loss on Disposal goodwill impairment noted above, there was no other impairment to any of its reporting units.

Accordingly, no goodwill impairment was recorded as a result of the qualitative test for the year ended December 25, 2022.

During the first quarter of 2021, the Company realigned its financial reporting structure creating its current three principal reporting segments:

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

As a result of these changes, the Company reallocated its goodwill among the revised reporting units based on the change in relative fair values of the respective reporting units.

(See note 6 for details on the allocation of goodwill across the Company's reporting structure.)

In the third of quarter 2021, the Company sold eOne Music for net proceeds of $ 397.0 million.

The Company acquired eOne Music through its acquisition of eOne in 2020.

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Accordingly, other than the Music goodwill impairment loss noted above, there was no goodwill impairment recorded for the year ended December 26, 2021.

During the fourth quarters of 2020 and 2019, the Company performed a qualitative goodwill assessment with respect to each of its reporting units, including an assessment of eOne.

Our assessment included the consideration of COVID-19 and the impact to our business in 2020.

We determined that it was not necessary to perform a quantitative assessment for the goodwill of the reporting units in any of the years.

The remaining intangible assets having definite lives are being amortized over periods ranging from two to twenty-five years , primarily using the straight-line method.

The Company reviews other intangible assets with definite lives for impairment whenever events or changes in circumstances indicate the carrying value may not be recoverable.

The Company's intangible assets having definite lives are being amortized over periods ranging from two to nineteen years , primarily using the straight-line method.

The Company reviews intangible assets with definite lives for impairment whenever events or changes in circumstances indicate the carrying value may not be recoverable.

Recoverability is measured by a comparison of the carrying amount of the asset to future undiscounted cash flows expected to be generated by the asset or asset group.

If such assets were considered to be impaired, the impairment to be recognized would be measured by the amount by which the carrying value of the assets exceeds their fair value wherein that fair value is determined based on discounted cash flows.

During the fourth quarter of 2022, following the decision to cancel certain projects in conjunction with the Company's Blueprint 2.0 strategy shift, it was determined that there was a partial impairment of the Company's definite-lived Power Rangers intangible asset.

As a result, a charge of $ 281.0 million was recorded during the fourth quarter of 2022 within Selling, Distribution and Administration in the Corporate and Other segment.

There were no other triggering events in 2022 or 2021 which would indicate the Company's intangible assets were impaired.

During 2020, the Company determined that certain of its definite-lived intangible entertainment and production assets related to properties, from both the legacy Hasbro business as well as properties acquired through the eOne acquisition, were impaired.

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As a result, charges of $ 20.0 million and $ 30.7 million were recorded in the first and fourth quarters, respectively, within Acquisition and Related Costs in the Company's Consolidated Statement of Operations.

There were no other triggering events in 2021 or 2020 which would indicate the Company's intangible assets were impaired.

Financial Instruments

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The Company’s financial instruments at December 25, 2022 also include long-term borrowings (see note 11 for carrying cost and related fair values) as well as certain assets and liabilities measured at fair value (see notes 14 and 18).

AND SUBSIDIARIES

Notes to Consolidated Financial Statements — (Continued)

Production Financing

Production financing relates to financing facilities for certain of the Company's television and film productions.

Beginning in the first quarter of 2020 with the acquisition of eOne, the Company funded certain of its television and film productions using production financing facilities.

Production financing facilities are secured by the assets and future revenues of the individual production subsidiaries, typically have maturities of less than two years while the

titles are in production, and are repaid once the production is delivered and all tax credits, broadcaster pre-sales and international sales have been received.

Production financing facilities are arranged on an individual production basis by either special purpose production subsidiaries, each secured by the assets and future revenues of such production subsidiaries, which are non-recourse to the Company's assets, or through a senior revolving credit facility obtained in November 2021, dedicated to production financing.

These facilities typically have maturities of less than two years while the titles are in production, and are repaid once the production is delivered and all tax credits, broadcaster pre-sales and international sales have been received.

In connection with the production of a television or film program, the Company records initial cash outflows within cash flows from operating activities due to its investment in the production and concurrently records cash inflows within cash flows from financing activities from the production financing it normally obtains.

Under these facilities, certain of the Company's cash is restricted while the financing is

AND SUBSIDIARIES

Notes to Consolidated Financial Statements — (Continued)

Under these facilities, certain of the Company's cash is restricted while the financing is outstanding.

At December 25, 2022, $ 14.5 million of the Company's cash was restricted by such facilities.

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The Company enters into contracts to license its intellectual property, which consists of its brands, in various channels including but not limited to:

consumer products such as apparel or home goods, within formats such as on-line and digital games, within venues such as theme parks, or within formats such as television and film.

consumer products such as apparel or home goods, within formats such as online and digital games, within venues such as theme parks, or within formats such as television and film.

The licensees pay the Company either a sales-based or usage-based royalty, or a combination of both, for use of the brands, in some cases subject to minimum guaranteed amounts or fixed fees.

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When the arrangement includes a minimum guarantee, the Company records the minimum guarantee on a ratable basis over the term of the license period and does not record the sales-based or usage-based royalty revenues until they exceed the minimum guarantee.

AND SUBSIDIARIES

Notes to Consolidated Financial Statements — (Continued)

The Company also produces, sells and licenses television and film content for distribution to third parties in formats that include broadcast, digital streaming, transactional and theatrical.

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The performance obligation is met and revenue is recorded when the user accesses the Company’s content through the streaming platform.

AND SUBSIDIARIES

Notes to Consolidated Financial Statements — (Continued)

The Company develops digital games featuring its brands within the games, such as Magic:

The Gathering Arena .

The Company develops and hosts digital games featuring its brands within the games, such as Magic:

The Gathering Arena and D&D Beyond .

The Company does not charge a fee to the end users for the download of the games or the ability to play the games.

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The Company records revenues from in-application purchases based on either the usage patterns of the players or the player’s estimated life, depending on the nature of the game item purchased in exchange for virtual currency.

For items recognized over the player's estimated life, the Company currently recognizes digital game's revenues within six months of purchase.

For items recognized over the player's estimated life, the Company currently recognizes digital game's revenues ratably within six months of purchase.

The Company controls all aspects of the digital goods delivered to the consumer.

In the case of Magic the Gathering:

Arena, the Company hosts the game on its own platform and therefore is the principal and records the gross revenues within Net Revenues in our Consolidated Statements of Operations.

The Company also develops certain digital games available for online and offline play, such as Dungeons & Dragons:

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Investment in Productions and Acquired Content Rights and Program Cost Amortization

The Company incurs costs in connection with the production of television programming and motion pictures.

The Company incurs costs in connection with the production of television programming and live action movies.

The majority of these costs are capitalized by the Company as they are incurred and amortized using the individual-film-forecast method, whereby these costs are amortized in the proportion that the current year’s revenues bear to management’s estimate of total ultimate revenues as of the beginning of such period related to the program.

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The current portion of MGs are recorded as Payables and Accrued Liabilities and the long-term portion are recorded as Other Liabilities.

AND SUBSIDIARIES

Notes to Consolidated Financial Statements — (Continued)

The Company enters into license agreements with strategic partners, inventors, designers and others for the use of intellectual properties in its products.

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The costs of other advertising and promotion programs are expensed in the fiscal year incurred.

AND SUBSIDIARIES

Notes to Consolidated Financial Statements — (Continued)

Shipping and Handling

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The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date.

We recognize deferred tax assets to the extent that we believe that these assets are more likely than not to be realized.

In making such a determination, we consider all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, and results of recent operations.

The assumptions utilized in determining future taxable income require significant judgment and are consistent with the plans and estimates we are using to manage the underlying businesses.

Actual operating results in future years could differ from our current assumptions, judgments and estimates.

However, we believe that it is more likely than not that most of the deferred tax assets recorded on our Consolidated Balance Sheets will ultimately be realized.

We record a valuation allowance to reduce our deferred tax assets to the net amount that we believe is more likely than not to be realized.

The Company recognizes deferred tax assets to the extent it believes that these assets are more likely than not to be realized.

In making such a determination, all available positive and negative evidence is considered, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, and results of recent operations.

The assumptions utilized in determining future taxable income require significant judgment and are consistent with the plans and estimates used to manage the underlying businesses.

Actual operating results in future years could differ from current assumptions, judgments and estimates.

However, the Company believes that it is more likely than not that most of the deferred tax assets recorded on our Consolidated Balance Sheets will ultimately be realized.

A valuation allowance is recorded to reduce deferred tax assets to the net amount believed to be more likely than not to be realized.

As of December 25, 2022, the valuation allowance of $ 189.8 million was primarily related to net operating losses acquired as part of the eOne acquisition.

If we determine that we would be able to realize our deferred tax assets in the future in excess of their net recorded amount, we would make an adjustment to the deferred tax asset valuation allowance, which would reduce the provision for income taxes.

If it is determined that our deferred tax assets will be realizable in the future in excess of their net recorded amount, an adjustment would be made to the deferred tax asset valuation allowance, which would reduce the provision for income taxes.

AND SUBSIDIARIES

Notes to Consolidated Financial Statements — (Continued)

The Company uses a two-step process for the measurement of uncertain tax positions that have been taken or are expected to be taken in a tax return.

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Other gains and losses resulting from translation of financial statements are a component of other comprehensive earnings (loss).

AND SUBSIDIARIES

Notes to Consolidated Financial Statements — (Continued)

Pension Plans, Postretirement and Postemployment Benefits

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The Company measures the costs of these obligations based on actuarial computations.

In February 2018, the Compensation Committee of the Company's Board of Directors approved a resolution to terminate the Company's U.S.

defined benefit pension plan ("U.S.

Pension Plan").

The Company commenced the U.S.

Pension Plan termination process and received regulatory approval during 2018 and settled all remaining benefits in 2019 directly with vested participants electing a lump sum payout, and purchased a group annuity contract from Massachusetts Mutual Life Insurance Company to administer all future payments to remaining U.S.

Pension Plan participants.

Upon settlement of the pension liability, the Company recognized a non-operating settlement charge of $ 111.0 million in 2019 related to pension losses, reclassified from accumulated other comprehensive loss to other (income) expense in the Company's consolidated statements of operations, adjusted for market conditions and settlement costs at benefit distribution.

Stock-Based Compensation

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See note 15 for further discussion.

Dividend Equivalent Units

Beginning with employee stock incentive awards granted in 2022, the payment of cash dividends to shareholders also results in the crediting of Dividend Equivalent Units (“DEUs”) to holders of restricted stock units ("RSUs") and contingent stock performance awards ("PSUs") granted under the Company's Restated 2003 Stock Incentive Plan, as amended, for employees as defined and described in note 15.

The DEUs are credited as additional RSUs or PSUs and settled concurrently with the vesting of associated awards.

DEUs are forfeited in the event the underlying RSUs or PSU's do not vest.

The dividend equivalent value of forfeitable DEUs is treated as a reduction of retained earnings or, if the Company is in a retained deficit position, as a reduction of additional paid-in capital.

AND SUBSIDIARIES

Notes to Consolidated Financial Statements — (Continued)

Risk Management Contracts

Hasbro uses foreign currency forward contracts to mitigate the impact of currency rate fluctuations on firmly committed and projected future foreign currency transactions.

Hasbro uses foreign currency forward and option contracts to mitigate the impact of currency rate fluctuations on firmly committed and projected future foreign currency transactions.

These over-the-counter contracts, which hedge future purchases of inventory, product sales, television and film production costs and production financing as well as other cross-border currency requirements not denominated in the functional currency of the business unit, are primarily denominated in United States, Canadian and Hong Kong dollars as well as Euros and British pound sterling.

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The Company formally documents all relationships between hedging instruments and hedged items as well as its risk management objectives and strategies for undertaking various hedge transactions.

All hedges designated as cash flow hedges are linked to forecasted transactions and the Company assesses, both at the inception of the

AND SUBSIDIARIES

Notes to Consolidated Financial Statements — (Continued)

hedge and on an on-going basis, the effectiveness of the derivatives used in hedging transactions in offsetting changes in the cash flows of the forecasted transaction.

All hedges designated as cash flow hedges are linked to forecasted transactions and the Company assesses, both at the inception of the hedge and on an on-going basis, the effectiveness of the derivatives used in hedging transactions in offsetting changes in the cash flows of the forecasted transaction.

The Company records all derivatives, such as foreign currency exchange contracts, on the consolidated balance sheets at fair value.

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The Company does not use hedge accounting for these contracts as changes in the fair value of these contracts are substantially offset by changes in the fair value of the intercompany loans.

During the third quarter of 2019, the Company hedged a portion of its exposure to fluctuations in the British pound sterling in relation to the Entertainment One Ltd.

("eOne") acquisition purchase price and other transaction related costs using a series of both foreign exchange forward and option contracts.

These contracts did not qualify for hedge accounting and as such, were marked to market through the Company's Consolidated Statement of Operations.

For tax purposes these contracts qualified as nontaxable integrated tax hedges.

The Company recorded realized gains of $ 80.0 million on matured contracts to other (income) expense, net for the year ended December 29, 2019.

These contracts matured on December 30, 2019 (the closing date of the transaction) and net gains or losses recognized on these contracts in 2020 were immaterial.

Prior to the issuance of certain long-term Notes due 2021 and 2044, the Company entered into a forward-starting interest rate swap contract to hedge the anticipated U.S.

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Contract Assets and Liabilities

In the ordinary course of business, the Company’s Consumer Products and Entertainment segments enter into contracts to license certain of the Company’s intellectual property, providing licensees right-to-use access for use in the production and sale of consumer products and digital game development, and for use within content for distribution over streaming platforms and for television and film.

In the ordinary course of business, the Company’s Consumer Products, Wizards of the Coast and Digital Gaming and Entertainment segments enter into contracts to license certain of the Company’s intellectual property, providing licensees right-to-use or access such intellectual property for use in the production and sale of consumer products and digital game development, and for use within content for distribution over streaming platforms and for television and film.

The Company also licenses owned television and film content for distribution to third parties in formats that include broadcast, digital streaming and theatrical.

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The Company records the aggregate deferred revenues as contract liabilities, with the current portion recorded within Accrued Liabilities and the long-term portion recorded as Other Non-current Liabilities in the Company’s consolidated balance sheets.

The Company records contract assets in the case of (1) minimum guarantees being recognized in advance of contractual invoicing, which are recognized ratably over the terms of the respective license periods, and (2) film and television distribution revenues recorded for content delivered, where payment will occur over the license term.

The Company records contract assets, primarily related to (1) minimum guarantees being recognized in advance of contractual invoicing, which are recognized ratably over the terms of the respective license periods, and (2) film and television distribution revenues recorded for content delivered, where payment will occur over the license term.

The current portion of contract assets is recorded in Prepaid Expenses and Other Current Assets, respectively, and the long-term portion is recorded within Other Long-Term Assets.

At December 26, 2021 and December 27, 2020, the Company had the following contract assets and liabilities in its consolidated balance sheets:

The change in the carrying amount of contract assets and liabilities for the year ended December 25, 2022 is as follows:

(In millions) December 25, 2022

December 27, 2020

Contract assets - current $ 286.9 284.4

Contract assets - long term 104.2 77.0

Total $ 391.1 361.4

Contract liabilities - current $ 114.1 161.0

Contract liabilities - long term 7.1 18.2

Total $ 121.2 179.2

For the year ended December 26, 2021, the Company recognized $ 49.4 million of the contract assets and $ 123.2 million of contract liabilities that were included in the December 27, 2020 balances.

Balance at beginning of the year $ 391.1

Recognized in current year 1,064.8

Amounts reclassified to accounts receivable ( 855.1 )

Foreign currency impact ( 6.4 )

Ending Balance $ 594.4

Balance at beginning of the year $ 121.2

Recognized in current year 337.5

Amounts in beginning balance reclassified to revenue ( 58.5 )

Current year amounts reclassified to revenue ( 278.9 )

Dispositions ( 4.0 )

Foreign currency impact ( 4.3 )

Ending Balance $ 113.0

Unsatisfied Performance Obligations

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These amounts include only fixed consideration.

Accounts Receivable and Allowance for Credit Losses

The Company’s balance for accounts receivable on the consolidated balance sheets as of December 26, 2021 and December 27, 2020 are primarily from contracts with customers.

In the year ended December 29, 2019, the Company recorded a charge for credit losses for accounts receivable of approximately $ 49.0 million related to Toys“R”Us.

The Company had no other material expense for credit losses in the years ended December 26, 2021, December 27, 2020, or December 29, 2019.

AND SUBSIDIARIES

Notes to Consolidated Financial Statements — (Continued)

Accounts Receivable and Allowance for Credit Losses

The Company’s balance for accounts receivable on the consolidated balance sheets as of December 25, 2022 and December 26, 2021 are primarily from contracts with customers.

The Company had no material expense for credit losses in the years ended December 25, 2022, December 26, 2021, or December 27, 2020.

Disaggregation of revenues

The Company disaggregates its revenues from contracts with customers by reportable segment:

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

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

The Company further disaggregates revenues within its Consumer Products segment by major geographic region:

North America, Europe, Latin America, and Asia Pacific;

within its Wizards of the Coast and Digital Gaming segment by category:

Tabletop Gaming and Digital and Licensing Gaming;

and within its Entertainment segment by category:

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(3) Business Combination

On December 30, 2019, the Company completed its acquisition of eOne, a global independent studio that specializes in the development, acquisition, production, distribution and sales of entertainment content.

On December 30, 2019, the Company completed its acquisition of Entertainment One ("eOne"), a global independent studio that specializes in the development, acquisition, production, distribution and sales of entertainment content.

The aggregate purchase price of $ 4.6 billion was comprised of $ 3.8 billion of cash consideration for shares outstanding and $ 0.8 billion related to the redemption of eOne's outstanding senior secured notes and the payoff of eOne's revolving credit facility.

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See note 11 for further discussion of the issuance of the senior unsecured notes and term loan agreement.

eOne's results of operations and financial position have been included in the Company's consolidated financial statements and accompanying footnotes since the date of the acquisition, which was the beginning of the Company's fiscal year 2020.

eOne's results of operations and financial position have been included in the Company's consolidated financial statements and accompanying footnotes beginning on December 30, 2019, the date of the acquisition, and the start of the Company's fiscal year 2020.

The acquisition was accounted for as a business combination under FASB Accounting Standards Codification Topic 805, Business Combinations (“Topic 805”).

Pursuant to Topic 805, the Company allocated the eOne purchase price to tangible and identifiable intangible assets acquired and liabilities assumed based on their estimated fair values as of the acquisition date, December 30, 2019.

The excess of the purchase price over those fair values was recorded to goodwill.

AND SUBSIDIARIES

Notes to Consolidated Financial Statements — (Continued)

The following table summarizes the intangible assets acquired as part of the eOne acquisition:

Intangible assets acquired Weighted Average Amortization Period Fair value (In millions)

Established brands 10 years $ 615.0

Trade names 15 years 100.0

Artist relationships 14 years 100.0

Music catalogs 12 years 120.0

Other 8 years 121.0

Total intangible assets acquired 11 years $ 1,056.0

Intangible assets consisted of intellectual property associated with established brands, eOne artist relationships, eOne music catalogs and trademarks and trade names with estimated useful lives ranging from 7 to 15 years, determined based on when the related cash flows are expected to be realized.

The fair value of the intangible assets acquired was determined based on the estimated future cash flows to be generated from the acquired assets, considering assumptions related to contract renewal rates and estimated brand franchise revenue growth.

eOne acquired intangible asset amortization expense was $ 85.0 million and $ 97.9 million for the years ended December 26, 2021 and December 27, 2020, respectively.

Deferred tax liabilities within other liabilities were adjusted to record the deferred tax impact of purchase price accounting adjustments, primarily related to intangible assets.

Investments in productions and content, or IIP and IIC, were valued at $ 564.8 million on the acquisition date, and include the fair value of completed films and television programs which have been produced by eOne or for which eOne has acquired distribution rights, as well as the fair value of films and television programs in production, pre-production and development.

For films and television programs, fair values were estimated based on forecasted cash flows, discounted to present value.

For titles less than 3 years old and titles in development, the content assets will be amortized using the individual film forecast method, wherein the amortization will phase to the revenues incurred.

For titles over 3 years old, the estimated useful life is 10 years, and will be amortized straight-line over that period.

Goodwill of $ 3.2 billion represents the excess of the purchase price over the fair value of the underlying tangible and identifiable intangible assets acquired and liabilities assumed.

The acquisition goodwill represents the value placed on the combined company’s brand building capabilities, storytelling capabilities and franchise economics in TV, film and other mediums to strengthen Hasbro brands.

Goodwill in the amount of $ 3.2 billion was recorded as a result of the acquisition, which is the excess of the purchase price over those fair values and represents the value placed on the combined company’s brand building capabilities, storytelling capabilities and franchise economics in TV, film and other mediums to strengthen Hasbro brands.

In addition, the acquisition goodwill depicts added benefits of long-term profitable growth through in-sourcing toy and game production for the acquired preschool brands and cost-synergies, as well as future revenue growth opportunities.

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See note 6 for information on the Company's goodwill reallocation during the first quarter of 2021 and the goodwill impairment charge recorded in the second quarter of 2021 as a result of the sale of the eOne music business, which was completed during the third quarter of 2021.

In 2020, the Company incurred charges of $ 218.6 million related to the eOne acquisition, which were recorded in acquisition and related costs within the Company’s Consolidated Statement of Operations.

Included within the Entertainment segment results for the year ended December 27, 2020 were $ 133.2 million of acquisition and related charges.

The remaining charges were included in Corporate and Other.

The acquisition and related costs for the year ended December 27, 2020 consisted of the following:

• Acquisition and integration costs of $ 145.2 million, including expense associated with the acceleration of eOne stock-based compensation and advisor fees settled at the closing of the acquisition, as well as integration costs and impairment charges in the fourth quarter of 2020 for certain definite-lived intangible and other assets;

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Notes to Consolidated Financial Statements — (Continued)

• Restructuring and related costs of $ 73.4 million which includes severance and retention costs, as well as $ 40.9 million in impairment charges for certain definite-lived intangible and production assets.

The impairment charges of $ 40.9 million were driven by the change in strategy for the combined company's entertainment assets.

Pursuant to Topic 805, unaudited supplemental pro forma results of operations for the year ended December 29, 2019, as if the acquisition of eOne had occurred on December 31, 2018, the first day of the Company’s 2019 fiscal year are presented below (in millions, except per share amounts):

(In millions, except per share data) December 29, 2019

Revenues $ 5,936.0

Net earnings 351.3

Net earnings attributable to Hasbro, Inc.

Net earnings per common share attributable to Hasbro, Inc.:

Diluted $ 2.51

These pro forma results do not represent financial results that would have been realized had the acquisition occurred on December 31, 2018.

The unaudited pro forma results include certain pro forma adjustments to net earnings that were directly attributable to the acquisition, as if the acquisition had occurred on December 31, 2018, including the following:

• elimination of transaction costs of $ 24.3 million for the year ended December 29, 2019, incurred by Hasbro and eOne related to the eOne Acquisition, included in Selling, Distribution and Administration;

• additional amortization expense of $ 38.8 million for the year ended December 29, 2019, that would have been recognized as a result of the allocation of purchase consideration to definite-lived intangible assets subject to amortization;

• estimated differences in interest expense of $ 75.4 million for the year ended December 29, 2019, as a result of incurring new debt and extinguishing historical eOne debt;

• total adjustments to Other (Income) Expense of $ 74.8 million for the year ended December 29, 2019, consisting of:

◦ elimination of a gain of $ 94.6 million for the year ended December 29, 2019, related to the mark to market of foreign exchange forward and option contracts, which the Company entered into in order to hedge a portion of the British pound sterling purchase price for the eOne Acquisition;

◦ elimination of a charge of $ 19.8 million for the year ended December 29, 2019, related to premiums paid by eOne in connection with the 2019 early redemption and refinancing of its senior secured notes and the related write-off of unamortized deferred finance charges associated with the senior secured notes;

• the income tax effect of the pro forma adjustments resulted in income tax benefits of $ 12.3 million for the year ended December 29, 2019, calculated using a blended statutory income tax rate of 22.5 % for the eOne adjustments, and a blended statutory tax rate of 21% for the Hasbro adjustments.

In 2020, the Company incurred charges of $ 218.6 million related to the eOne acquisition recorded in acquisition and related costs within the Company’s Consolidated Statement of Operations, of which $ 133.2 million.

were recorded within the Entertainment segment and the remaining charges were recorded within the Corporate and Other segment.

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Notes to Consolidated Financial Statements — (Continued)

See note 3 to the consolidated financial statements included in Part ll, Item 8.

Financial Statements , of the Company's Form 10-K for the year ended December 27, 2020 for further information on the Company's acquisition of eOne.

(4) Other Comprehensive Earnings (Loss)

Components of other comprehensive earnings (loss) are presented within the consolidated statements of comprehensive earnings (loss).

Components of other comprehensive earnings (loss) are presented within the consolidated statements of comprehensive earnings.

The following table presents the related tax effects on changes in other comprehensive earnings (loss) for each of the three fiscal years ended December 25, 2022.

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Other comprehensive earnings (loss), tax effect:

Tax (expense) on unrealized holding (losses) gains $ — $ ( 0.2 ) ( 0.2 )

Tax (expense) benefit on cash flow hedging activities ( 1.0 ) ( 3.4 ) 0.2

Tax benefit on foreign currency translation amounts

Tax benefit (expense) on unrealized holding gains (losses) $ 0.1 $ — ( 0.2 )

Tax expense on cash flow hedging activities ( 1.3 ) ( 1.0 ) ( 3.4 )

Tax (expense) benefit on foreign currency translation amounts

— ( 7.2 ) 2.1

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Reclassifications to earnings, tax effect:

Tax (benefit) expense on cash flow hedging activities ( 0.5 ) 4.3 2.3

Tax expense (benefit) on cash flow hedging activities 1.6 ( 0.5 ) 4.3

Tax benefit on amortization of unrecognized pension and postretirement amounts reclassified to the consolidated statements of operations ( 0.3 ) ( 0.6 ) ( 0.8 )

Tax benefit on settlement of U.S.

defined benefit plan — — ( 24.9 )

Total tax effect on other comprehensive earnings (loss) $ ( 5.8 ) ( 10.8 ) 4.6

Changes in the components of accumulated other comprehensive earnings (loss), net of tax for each of the three fiscal years ended December 26, 2021 are as follows:

AND SUBSIDIARIES

Notes to Consolidated Financial Statements — (Continued)

Changes in the components of accumulated other comprehensive loss, net of tax for each of the three fiscal years ended December 25, 2022 are as follows:

(In millions) Pension and

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Balance at December 27, 2020 $ ( 40.7 ) ( 22.1 ) 0.3 ( 132.5 ) ( 195.0 )

AND SUBSIDIARIES

Notes to Consolidated Financial Statements — (Continued)

Gains (Losses) on Derivative Instruments

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For the year ended December 25, 2022, losses, net of tax of $ 0.7 million related to these hedging instruments were reclassified from AOCE to net earnings.

For each of the years ended December 27, 2020 and December 29, 2019, losses, net of tax of $ 1.4 million, related to these hedging instruments were reclassified from AOCE to net earnings.

For the years ended December 26, 2021 and December 27, 2020, losses, net of tax of $ 1.0 million and $ 1.4 million, respectively, related to these hedging instruments were reclassified from AOCE to net earnings.

Of the net deferred gains included in AOCE at December 25, 2022, the Company expects net gains of approximately $ 1.3 million to be reclassified to the consolidated statements of operations within the next 12 months.

However, the amount ultimately realized in earnings is dependent on the fair value of the hedging instruments on the settlement dates.

AND SUBSIDIARIES

Notes to Consolidated Financial Statements — (Continued)

See notes 16 and 18 for additional discussion on reclassifications from AOCE to earnings.

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See note 17 for additional discussion on right of use assets.

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Notes to Consolidated Financial Statements — (Continued)

(6) Goodwill and Intangible Assets

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Balance at December 26, 2021 $ 1,584.9 307.3 1,527.4 3,419.6

Goodwill allocation 199.4 254.2 ( 453.6 ) —

Goodwill associated with disposal of business — — ( 162.2 ) ( 162.2 )

Acquired during the period — 64.7 — 64.7

Impairment during the period — — ( 11.8 ) ( 11.8 )

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Balance at December 27, 2020 $ 1,385.7 53.1 2,252.9 3,691.7

Acquired during the period 0.4 — 3,195.4 3,195.8

Allocation of eOne acquired Goodwill 954.0 — ( 954.0 ) —

Goodwill allocation 199.4 254.2 ( 453.6 ) —

Goodwill associated with disposal of business — — ( 162.2 ) ( 162.2 )

Impairment during the period — — ( 108.8 ) ( 108.8 )

Foreign exchange translation ( 0.2 ) — ( 0.9 ) ( 1.1 )

Balance at December 26, 2021 $ 1,584.9 307.3 1,527.4 3,419.6

The $ 3.2 billion of goodwill acquired during 2020 is attributable to the eOne acquisition and represents the value placed on the combined company’s brand building capabilities, our storytelling capabilities and franchise economics in TV, film and other mediums to strengthen Hasbro brands.

For this reason, a portion of the goodwill associated with the eOne acquisition was allocated to certain legacy reportable segments based on a calculated synergy value comprised of toy and game insourcing, labor cost-savings and certain other expected benefits.

See note 3 for more information about the acquisition of eOne.

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Notes to Consolidated Financial Statements — (Continued)

A portion of the Company’s goodwill and other intangible assets reside in the Corporate segment of the business.

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In addition, if an event occurs or circumstances change that indicate that the carrying value may not be recoverable, the Company will perform an interim impairment test at that time.

Although COVID-19 has had and will continue to have an impact to our business and the economies in which we operate, the impact of COVID-19 did not constitute a triggering event for purposes of goodwill testing in 2020 or 2021.

In conjunction with the goodwill reallocation described above, during the first quarter of 2021, the Company performed an impairment test of goodwill balances held by the reporting units impacted by the segment realignment.

The reporting units were tested as of December 28, 2020 and included our Europe, Asia Pacific, Global Consumer Products Licensing, Wizards of the Coast and Family Brands reporting units.

Based on the results of the goodwill assessment, we determined that the fair values of each of these reporting units exceeded their carrying values, and as such, we concluded that there was no indication of goodwill impairment for these reporting units as of December 28, 2020.

AND SUBSIDIARIES

Notes to Consolidated Financial Statements — (Continued)

On May 19, 2022, the Company completed its acquisition of D&D Beyond for $ 146.3 million, which was funded with cash on hand.

Based on the valuation of these assets, $ 64.7 million was allocated to goodwill within the Wizards of the Coast and Digital Gaming segment during the second quarter of 2022.

During the third quarter of 2022, the Company determined to exit certain non-core businesses within the Entertainment segment.

During the fourth quarter of 2022, the Company performed a qualitative goodwill assessment with respect to each of its reporting units and determined that the fair values of the Company’s reporting units exceeded their carrying values.

As a result of this assessment, the Company concluded that, other than the Loss on Disposal goodwill impairment noted above, there was no other impairment to any of its reporting units.

Accordingly, no goodwill impairment was recorded as a result of the qualitative test for the year ended December 25, 2022.

During the second quarter of 2021, the Company entered into a definitive agreement to sell the Entertainment One Music business ("eOne Music") for an aggregate sales price of $ 385.0 million, subject to certain closing adjustments related to working capital and net debt.

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Accordingly, no goodwill impairment was recorded as a result of the quantitative test for the year ended December 26, 2021.

During the fourth quarter of 2020 the Company performed a qualitative goodwill assessment with respect to its reporting units, including eOne, and determined that it was not necessary to perform a quantitative assessment for the goodwill of the Company's reporting units.

During the fourth quarter of 2019, the Company took a number of actions to react to a rapidly changing mobile gaming industry that resulted in a modification to the Company’s long-term plan for its Backflip business.

These modifications included organizational actions and related personnel changes, the extension of launch dates for games currently in or planned for development and the addition of partners for the development of future games releases.

The modifications resulted in changes to the long-term projections for the Backflip business.

The goodwill impairment analysis involved comparing the Backflip carrying value to its estimated fair value, which was calculated based on the Income Approach.

Discounted cash flows serve as the primary basis for the Income Approach.

The Company utilized forecasted cash flows for the Backflip reporting unit that included assumptions including but not limited to:

expected revenues to be realized based on planned future mobile game releases, expected EBITDA margins derived in part based on expected future royalty costs, advertising and marketing costs, development costs, overhead costs, and expected future tax rates.

The cash flows beyond the forecast period were estimated using a terminal value growth rate of 3 %.

To calculate the fair value of the future cash flows under the Income Approach, a discount rate of 19 % was utilized, representing the reporting unit’s estimated weighted-average cost of capital.

Based on the results of the impairment test, the Company determined that the carrying value of the Backflip reporting unit exceeded its estimated fair value.

Based on this assessment, the Company recorded an impairment charge of $ 86.3 million in the fourth quarter of 2019, in the Company’s Wizards of the Coast & Digital Gaming segment, which was the full amount of remaining goodwill associated with the Backflip reporting unit.

Based on its qualitative assessment of goodwill for all reporting units with the exception of Backflip in 2019, the Company concluded there was no other impairment of goodwill during 2019.

Other Intangible Assets, Net

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Licensed rights of entertainment properties 45.0 45.0

Impairment ( 281.0 ) —

Accumulated amortization ( 1,137.2 ) ( 1,050.4 )

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These rights were determined to have indefinite lives and are included as product rights with indefinite lives in the table above.

The Company tests these assets for impairment on an annual basis in the fourth quarter of each year or when an event occurs or circumstances change that indicate that the

The Company tests these assets for impairment on an annual basis in the fourth quarter of each year or when an event occurs or circumstances change that indicate that the carrying value may not be recoverable.

The Company completed its annual impairment tests of definite-lived

AND SUBSIDIARIES

Notes to Consolidated Financial Statements — (Continued)

carrying value may not be recoverable.

The Company completed its annual impairment tests of indefinite-lived intangible assets in the fourth quarter of 2021, 2020, and 2019 concluding that there was no impairment of these assets.

intangible assets in the fourth quarter of 2022 and 2021, concluding that there was no impairment of these assets.

The Company’s other intangible assets are amortized over their remaining useful lives, and accumulated amortization of these other intangibles is reflected in other intangible assets, net in the accompanying consolidated balance sheets.

Intangible assets are reviewed for indications of impairment whenever events or changes in circumstances indicate the carrying value may not be recoverable.

It was determined that the carrying values of these intangible assets exceeded their related future cash flows.

As a result, charges of $ 20.0 million and $ 30.7 million were recorded in the first and fourth quarters, respectively, within acquisition and related costs in the Company's Consolidated Statement of Operations.

There were no other triggering events in 2021 or 2020 which would indicate the Company's intangible assets were impaired.

In the fourth quarter of 2019, the Company reviewed intangible assets recorded in connection with licensed property rights and owned technology.

Due to a decline in revenue and revised projections for future revenue, it was determined that the intangible asset carrying values exceeded expected future cash flows, indicating that the intangible assets were impaired.

The Company calculated the fair value of the intangible assets based on a discounted cash flow, which resulted in a charge of $ 31.3 million recorded within administrative expense and in the Company’s Corporate and Eliminations segment.

Other than the intangible assets discussed above, no other indications of impairment existed.

During the fourth quarter of 2022, following the Company's Blueprint 2.0 strategy shift with a focus on fewer, bigger, better brands, it was determined that there was a partial impairment of the Company's definite-lived Power Rangers intangible asset as the approach to prioritize other brands in film development resulted in lower than expected cash flow related to the brand.

Using the discounted cash flow method under the income approach to determine fair value, changes to anticipated revenues and related cash flows led to the determination that the carrying value of this intangible asset exceeded its fair value, thus resulting in an impairment.

Charges of $ 281.0 million were recorded in the fourth quarter of 2022 within Selling, Distribution and Administration within the Corporate and Other segment.

There were no other triggering events in 2022 or 2021 that would indicate the Company's intangible assets were impaired.

The Company will continue to incur amortization expense related to the use of acquired and licensed rights to produce various products.

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(7) Equity Method Investment

The Company owns an interest in a joint venture, Discovery Family Channel (the “Network”), with Discovery.

The Company owns an interest in a joint venture, Discovery Family Channel (the “Network”), with Warner Bros.

Discovery, Inc.

("Discovery").

The Company has determined that it does not meet the control requirements to consolidate the Network and accounts for the investment using the equity method of accounting.

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During the fourth quarter of 2021, the Company reviewed its investment with Discovery for impairment and concluded that the fair value of the Company's interest in the joint venture was less than its carrying value, and as such, recorded an impairment loss of $ 74.1 million, which is included in other (income) expense, net in the consolidated statements of operations for the year ended December 26, 2021.

The Company utilized the discounted cash flow method under the income approach to estimate the fair value of the

AND SUBSIDIARIES

Notes to Consolidated Financial Statements — (Continued)

Network, which requires assumptions and estimates that include:

The Company utilized the discounted cash flow method under the income approach to estimate the fair value of the Network, which requires assumptions and estimates that include:

future annual cash flows, income tax rates, discount rates, estimated growth rates, and other market factors.

Recent accelerating changes in the cable distribution industry, including technological changes and expanding options for digital content offerings, has resulted in the fragmentation of viewership, declines in subscribers to the traditional cable bundle, and pricing pressure.

A ccelerating changes in the cable distribution industry, including technological changes and expanding options for digital content offerings, has resulted in the fragmentation of viewership, declines in subscribers to the traditional cable bundle, and pricing pressure.

These factors led to the lower valuation of the Network as compared to its carrying value.

During the fourth quarter of 2022, the Company reviewed its investment with Discovery for impairment and determined that the fair value of the

AND SUBSIDIARIES

Notes to Consolidated Financial Statements — (Continued)

Company's interest in the joint venture exceeded its carrying value, and as such, concluded that there was no impairment in its investment in the Network.

The Company’s share in the earnings of the Network for the years ended December 25, 2022, December 26, 2021 and December 27, 2020 totaled $ 8.1 million, $ 20.8 million and $ 21.8 million, respectively, and is included as a component of other expense (income), net in the consolidated statements of operations.

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During 2022, 2021 and 2020, these transactions were not material.

In connection with the amendment, the Company and Discovery entered into an option agreement to acquire the Company’s remaining 40 % ownership in the Network, exercisable during the one-year period following December 31, 2021.

In connection with the September 23, 2014 amendment, the Company and Discovery entered into an option agreement to acquire the Company’s remaining 40 % ownership in the Network, exercisable during the one-year period following December 31, 2021.

During 2022 the Company and Discovery further amended the agreement by extending the option exercise window through March 2025.

As of December 25, 2022, the Company had not exercised the option to acquire the remaining ownership in the Network.

The exercise price of the option agreement is based upon 80 % of the then fair market value of the Network, subject to a fair market value floor.

At December 26, 2021 and December 27, 2020, the fair market value of this option was $ 1.7 million and $ 20.6 million, respectively, and was included as a component of other liabilities.

The change in the option's value was driven by the impairment loss recorded on the Company's investment in the Network.

During 2021, 2020 and 2019, the Company recorded gains of $ 20.1 million, $ 1.5 million and $ 1.3 million in other (income) expense, net relating to the change in fair value of this option.

At December 25, 2022 and December 26, 2021, the fair market value of this option was $ 1.7 million and was included as a component of other liabilities.

During 2021, the Company recorded a gain of $ 20.1 million in other (income) expense, net relating to the change in fair value of this option, which was driven by an impairment loss recorded on the Company's investment in the Network during 2021.

There were no material changes to the option's value in 2022 or 2020.

The Company also has a related liability due to Discovery under the existing tax sharing agreement.

The balance of the associated liability, including imputed interest, was $ 14.4 million and $ 18.3 million at December 25, 2022 and December 26, 2021, respectively, and is included as a component of other liabilities in the accompanying consolidated balance sheets.

The Company recognized a loss of $ 2.1 million in the fourth quarter of 2021 related to an increase of this liability.

This was caused by a change in the Company's 2020 tax rate that resulted in future payments owed to the Network.

During 2021, 2020 and 2019, the Company made payments under the tax sharing agreement to Discovery of $ 5.3 million, $ 4.7 million and $ 4.8 million, respectively.

During 2022 and 2021, the Company recognized income of $ 0.7 million and a loss of $ 2.1 million, respectively, related to this liability due to changes in the Company's 2021 and 2020 income tax rates that resulted in adjustments to future payments owed to the Network.

During 2022, 2021 and 2020, the Company made payments to Discovery under this tax sharing agreement in the amount of $ 5.4 million, $ 5.3 million and $ 4.7 million, respectively.

See note 20 for more information on estimated future payments in relation to the Company's Discovery tax sharing agreement.

The Company has a license agreement with the Network that requires the payment of royalties by the Company to the Network based on a percentage of revenue derived from products related to television shows broadcast by the joint venture.

The license includes a minimum royalty guarantee of $ 125.0 million, which was paid in five annual installments of $ 25.0 million per year, commencing in 2009, which can be earned out over approximately a 12 -year period.

The Company had a license agreement with the Network that required the payment of royalties by the Company to the Network based on a percentage of revenue derived from products related to television shows broadcast by the joint venture.

The license included a minimum royalty guarantee of $ 125.0 million, which was paid in five annual installments of $ 25.0 million per year, commencing in 2009, which was earned out over approximately a 12 -year period.

As of December 25, 2022 the Company did not have a prepaid royalty balance related to this agreement as the licensing agreement ended in 2021.

As of December 27, 2020 the Company's prepaid royalties related to this agreement were $ 15.1 million, all of which were included in prepaid expenses and other current assets.

Beginning in 2021, the Company and the Network agreed that Hasbro would no longer provide the Network with new content.

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Total program investments $ 921.4 $ 801.0

(1) Due to a monetization strategy change, during 2021 the Company began monetizing certain content assets as a film/TV group.

The Company recorded $ 555.5 million of program cost amortization related to released programming during 2022, consisting of the following:

(In millions) Investment in Production Investment in Content Other Total

(In millions) Investment in Production Investment in Content Total

Program cost amortization $ 495.4 $ 60.1 $ 555.5

Based on management’s total revenue estimates at December 26, 2021, the Company's expected future amortization expenses for capitalized programming costs over the next five years are as follows:

Based on management’s total revenue estimates at December 25, 2022, the Company's expected future amortization expenses for capitalized programming costs over the next three years are as follows:

(In millions) 2023 2024 2025

Completed and not released $ 19.6 0.4 0.4 0.3 0.3

Estimated Future Amortization Expense:

Individual monetization

Released $ 114.6 67.4 58.3

In production 46.6 49.2 8.7 7.9 7.1

Pre-production 6.0 8.0 10.0 — —

Completed and not released 42.3 n/a n/a

Film/TV group monetization

Released 28.8 15.0 14.8

Total $ 185.7 82.4 73.1

In the normal course of its business, the Company also enters into contracts related to obtaining right of first refusal ("first look deals") to purchase, distribute, or license certain entertainment projects or content.

See note 20 for more information on the Company's expected future payments for first look deals.

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Notes to Consolidated Financial Statements — (Continued)

See note 20 for more information on the Company's expected future payments for first look deals.

(9) Financing Arrangements

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As of December 25, 2022, the Company has repaid the full aggregate principal amount of $ 400.0 million on the three-year term loan facility and $ 290.0 million of the aggregate principal amount on the five-year term loan facility.

See note 11 for further discussion on the Term Loan Agreement and note 3 for further discussion on the eOne acquisition.

See note 11 for further discussion on the Term Loan Agreement.

The Company has a second amended and restated revolving credit agreement with Bank of America, as administrative agent, swing line lender and a letter of credit issuer and lender and certain other financial institutions, as lenders thereto (the "Amended Revolving Credit Agreement"), which provides the Company with commitments having a maximum aggregate principal amount of $ 1.5 billion.

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Subject to market conditions, the notes will be sold under customary terms in the commercial paper market and will be issued at a discount to par, or alternatively, will be sold at par and will bear varying interest rates based on a fixed or floating rate basis.

The interest rates will vary based on market conditions and the ratings assigned to the notes by the credit rating agencies at the time of issuance.

At December 26, 2021 and December 27, 2020, the Company did not have any notes outstanding under the Program.

The interest rates will vary based on market conditions and the ratings assigned to the notes by the credit rating

AND SUBSIDIARIES

Notes to Consolidated Financial Statements — (Continued)

agencies at the time of issuance.

At December 25, 2022 and December 26, 2021, the Company did not have any notes outstanding under the Program.

During November 2021, the Company secured a senior revolving film and television production credit facility (the “RPCF”) with MUFG Union Bank, N.A., as administrative agent and lender and certain other financial institutions, as lenders thereto (the “Revolving Production Financing Agreement”) which provides the Company with commitments having a maximum aggregate principal amount of $ 250.0 million.

The Revolving Production Financing Agreement also provides the Company the option to request a commitment increase up to an aggregate additional amount of $ 150.0 million subject to agreement of the lenders.

The Revolving Production Financing Agreement also provides the Company with the option to request a commitment increase up to an aggregate additional amount of $ 150.0 million subject to agreement of the lenders.

The Revolving Production Financing Agreement extends through November 22, 2024.

The Company will use the RPCF to fund certain of the Company’s original film and TV production costs.

Borrowings under the RPCF will be non-recourse to the Company's assets.

The Company uses the RPCF to fund certain of the Company’s original film and TV production costs.

Borrowings under the RPCF are non-recourse to the Company's assets.

(10) Accrued Liabilities

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Deferred revenue 111.3 114.1

Payroll and management incentives 183.6 132.4

Freight 107.5 32.3

Severance 100.3 32.0

Dividends 96.7 94.0

Cancellation charges 89.2 74.1

Other Taxes 82.1 95.0

Accrued expenses IIC & IIP 80.8 74.9

Payroll and management incentives 66.7 183.6

Advertising 53.2 60.4

Severance 32.0 49.7

Accrued income taxes 44.8 30.9

General vendor accruals 44.3 29.8

Current lease liability 39.6 43.9

Freight 28.5 107.5

Other 173.7 182.5

19 unchanged sentences

300.0 261.1 300.0 374.5

5.10 % Notes Due 2044

300.0 374.5 300.0 338.1

3.15 % Notes Due 2021 (2)

— — 300.0 302.3

6.60 % Debentures Due 2028

2 unchanged sentences

310.0 310.0 397.5 397.5

Variable % Notes Due December 30, 2024 (4)

397.5 397.5 577.5 577.5

Production Financing Facilities 53.2 53.2 170.1 170.1

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Long-term debt $ 3,711.2 3,626.3 $ 3,824.2 4,549.3

(1) During the third quarter of 2021, the Company repaid in full its 2.60 % Notes, in the aggregate principal amount of $ 300.0 million due in November 2022.

(2) During the first quarter of 2021, the Company repaid in full its 3.15 % Notes, in the aggregate principal amount of $ 300.0 million due in May 2021.

(3) During the second quarter of 2021, the Company repaid $ 250.0 million of the Variable % Notes Due December 30, 2022 and during the third quarter of 2021, the Company repaid the remaining balance of $ 50.0 million of the Variable % Notes Due December 30, 2022.

(4) During the third quarter of 2021, the Company repaid $ 50.0 million, and during the fourth quarter of 2021, the Company repaid $ 100.0 million of the Variable % Notes Due December 30, 2024.

(1) During the first quarter of 2022, the Company repaid $ 50.0 million of the principal balance of the Variable % Notes Due December 30, 2024.

In November 2019, in conjunction with the Company's acquisition of eOne, the Company issued an aggregate of $ 2.4 billion of senior unsecured debt securities (the "Notes") consisting of the following tranches:

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(2) 30 basis points (in the case of the 2026 Notes);

and (3) 35 basis points (in the case of the 2029

AND SUBSIDIARIES

Notes to Consolidated Financial Statements — (Continued)

and (3) 35 basis points (in the case of the 2029 Notes).

In addition, on and after October 19, 2024 for the 2024 Notes, September 19, 2026 for the 2026 Notes and August 19, 2029 for the 2029 Notes, such series of Notes will be redeemable, in whole at any time or in part from time to time, at the Company's option at a redemption price equal to 100 % of the principal amount of the Notes to be redeemed plus any accrued and unpaid interest.

In September 2019, the Company entered into a $ 1.0 billion Term Loan Agreement (the "Term Loan Agreement”) with Bank of America N.A.

(“Bank of America”), as administrative agent, and certain financial institutions as lenders, pursuant to which such lenders committed to provide, contingent upon the completion of the eOne acquisition and certain other customary conditions to funding, (1) a three-year senior unsecured term loan facility in an aggregate principal amount of $ 400.0 million (the “Three-Year Tranche”) and (2) a five-year senior unsecured term loan facility in an aggregate principal amount of $ 600.0 million (the “Five-Year Tranche” and together with the Three-Year Tranche, the “Term Loan Facilities”).

In September 2019, the Company entered into the $ 1.0 billion Term Loan Agreement consisting of (1) a three-year senior unsecured term loan facility in an aggregate principal amount of $ 400.0 million (the “Three-Year Tranche”) and (2) a five-year senior unsecured term loan facility in an aggregate principal amount of $ 600.0 million (the “Five-Year Tranche” and together with the Three-Year Tranche, the “Term Loan Facilities”).

The full amount of the Term Loan Facilities were drawn down on December 30, 2019, the closing date of the eOne acquisition.

During 2020, the Company made $ 122.5 million in payments towards the $ 1.0 billion term loan notes consisting of $ 100.0 million on the principal of the Three-Year Tranche loans in addition to the required quarterly principal amortization payments totaling $ 22.5 million on the Five-Year Tranche loans.

During 2021, the Company paid $ 480.0 million toward the $ 1.0 billion term loan notes consisting of the remaining $ 300.0 million of the principal balance of the Three-Year Tranche loans as well as $ 150.0 million principal balance and principal amortization payments totaling $ 30.0 million on the Five-Year Tranche loans.

During 2022, the

AND SUBSIDIARIES

Notes to Consolidated Financial Statements — (Continued)

Company made $ 50.0 million principal balance and principal amortization payments totaling $ 37.5 million on the Five-Year Tranche loans.

Loans under the Five-Year Tranche bear interest at the Company’s option, at either the Eurocurrency Rate or the Base Rate, plus a per annum applicable rate that fluctuates between 100.0 basis points and 187.5 basis points, in the case of loans priced at the Eurocurrency Rate, and between 0.0 basis points and 87.5 basis points, in the case of loans priced at the Base Rate, in each case, based upon the non-credit enhanced, senior unsecured long-term debt ratings of the Company by Fitch Ratings Inc., Moody’s Investor Service, Inc.

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All of the Company’s other long-term borrowings have contractual maturities that occur subsequent to 2023 with the exception of certain of the Company’s production financing facilities and annual principal payments related to the Term Loan Facilities.

AND SUBSIDIARIES

Notes to Consolidated Financial Statements — (Continued)

The Company's long-term borrowings have the following future contractual maturities:

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Production financing facilities 53.2

*Represents the Company's current portion of required quarterly principal amortization payments for term loan facilities .

* Represents the Company's required quarterly principal amortization payments for term loan facilities in 2023.

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The Company believes that this is the best information available for use in the fair value measurement.

AND SUBSIDIARIES

Notes to Consolidated Financial Statements — (Continued)

Production Financing

In addition to the Company's financial instruments, the Company uses production financing to fund certain of its television and film productions which are typically arranged on an individual production basis by special purpose production subsidiaries.

Production financing facilities are secured by the assets and future revenue of the individual production subsidiaries and are non-recourse to the Company's assets.

In addition to the Company's financial instruments, the Company uses production financing to fund certain of its television and film productions which are arranged on an individual production basis by either special purpose production subsidiaries, each secured by the assets and future revenues of such production subsidiaries, which are non-recourse to the Company's assets, or through a senior revolving credit facility obtained in November 2021, dedicated to production financing.

Production financing facilities typically have maturities of less than two years , while the titles are in production, and are repaid once delivered and all credits, broadcaster pre-sales and international sales have been received.

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(In millions) 2022 2021

Production financing held by production subsidiaries $ 170.1 $ 165.5

Other loans (1)

Total $ 170.1 $ 170.9

Production financing included in the consolidated balance sheet as:

Non-current $ — $ 62.9

Current 170.1 102.6

Total $ 170.1 $ 165.5

(1) Other loans of $ 5.4 million, consist of production related demand loans, and are recorded within Short-term Borrowings in the Company's consolidated balance sheets.

Current liabilities $ 195.6 170.1

Interest is charged at bank prime rate plus a margin based on the risk of the respective production.

The weighted average interest rate on all production financing as of December 25, 2022 was 3.3 %.

AND SUBSIDIARIES

Notes to Consolidated Financial Statements — (Continued)

The Company has Canadian dollar and U.S.

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$ 53.2 142.4 195.6

The following table represents the movements in production financing and other related loans during 2021:

(In millions) Production Financing Other Loans Total

The following table represents the movements in production financing loans during 2022:

(In millions) Production Financing

December 26, 2021 $ 170.1

3 unchanged sentences

Balance at December 25, 2022

$ 170.1 $ — $ 170.1

The Company expects to repay all of its outstanding production financing loans in 2023.

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Total earnings before income taxes $ 261.5 581.9 322.1

AND SUBSIDIARIES

Notes to Consolidated Financial Statements — (Continued)

Income taxes attributable to earnings before income taxes are:

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Total income taxes $ 58.5 146.6 96.7

AND SUBSIDIARIES

Notes to Consolidated Financial Statements — (Continued)

A reconciliation of the statutory United States federal income tax rate to Hasbro’s effective income tax rate is as follows:

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Deferred tax rate change — 6.5 3.6

Gains on integrated hedging instruments — — ( 4.0 )

Officers' compensation 1.9 1.9 1.4

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Deferred revenue 4.4 4.0

Capitalized research and experimentation 81.2 26.1

Other 11.7 13.5

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The Canadian loss carryforwards expire at various dates from 2031 to 2042.

federal and state loss and credit carryforwards expire at various dates throughout 2022 while others have an indefinite carryforward period.

federal, state and international loss and credit carryforwards expire at various dates throughout 2023 while others have an indefinite carryforward period.

The recoverability of these future tax deductions and credits is evaluated by assessing the adequacy of future expected taxable income from all sources, including taxable income in prior carryback years, reversal of taxable temporary differences, forecasted operating earnings and available tax planning strategies.

1 unchanged sentence

To the extent that a valuation allowance was established and it is subsequently determined that it is more likely than not that the deferred tax assets will be recovered, the change in the valuation allowance is recognized in the consolidated statements of income.

The Company has a valuation allowance for certain net deferred tax assets at December 26, 2021 of $ 171.2 million, which is a decrease of $ 3.0 million from $ 174.2 million at December 27, 2020.

The valuation allowance pertains to certain U.S.

state and international loss and credit carryforwards, some of which have no expiration and

The Company has a valuation allowance for certain net deferred tax assets at December 25, 2022 of $ 189.8 million, which is an increase of $ 18.6 million from $ 171.2 million at December 26, 2021.

The valuation allowance

AND SUBSIDIARIES

Notes to Consolidated Financial Statements — (Continued)

others that expire beginning in 2022, and other net deferred tax assets.

The decrease in the valuation allowance is primarily due to the realization of certain net operating losses resulting from tax planning during the year.

pertains to certain U.S.

state and international loss and credit carryforwards, some of which have no expiration and others that expire beginning in 2023, and other net deferred tax assets.

The increase in the valuation allowance is primarily due a valuation allowance recorded in 2022 against net deferred tax assets in Russia, due to the on-going conflict in Ukraine, as well as increases in certain net deferred tax assets with no corresponding tax benefit.

At December 25, 2022 and December 26, 2021, the Company’s net deferred income taxes are recorded in the consolidated balance sheets as follows:

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However, we intend to repatriate substantially all of our accumulated foreign earnings when appropriate.

As of 2021, we have recorded $ 3.4 million of a foreign withholding and U.S.

As of 2022, we have recorded $ 3.6 million of foreign withholding and U.S.

state income tax liability.

8 unchanged sentences

Gross increases in current period tax positions 28.6 4.6 11.7

Decreases related to settlements with tax authorities ( 2.7 ) — ( 12.0 )

Decrease related to settlements with tax authorities — ( 2.7 ) —

Decreases from the expiration of statute of limitations ( 2.1 ) ( 7.7 ) ( 7.0 )

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income tax examinations by tax authorities in its major jurisdictions for years before

AND SUBSIDIARIES

Notes to Consolidated Financial Statements — (Continued)

The Company is currently under income tax examination by the Internal Revenue Service and in several U.S.

1 unchanged sentence

jurisdictions.

AND SUBSIDIARIES

Notes to Consolidated Financial Statements — (Continued)

The Company believes it is reasonably possible that a decrease of approximately $ 0.0 million - $ 10.0 million in gross unrecognized tax benefits may be necessary within the coming year as a result of expected tax return settlements and lapse of statute of limitations.

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The Company has no obligation to repurchase shares under the authorization and the time, actual number, and the value of the shares which are repurchased will depend on a number of factors, including the price of the Company’s common stock.

As part of this initiative, since 2005, the Company's Board of Directors (the "Board") adopted numerous share repurchase authorizations with a cumulative authorized repurchase amount of $ 4.3 billion.

As part of this initiative, since 2005, the Company's Board of Directors adopted numerous share repurchase authorizations with a cumulative authorized repurchase amount of $ 4.3 billion.

The most recent authorization for the repurchase of up to $ 500.0 million in common stock was approved in May 2018.

As a result of the financing activities related to the eOne acquisition, the Company suspended its share repurchase program to prioritize deleveraging, and did not repurchase any shares during 2021 and 2020.

In April 2022, given the Company's progress towards reducing debt, the Company resumed its share repurchase activity and has since repurchased approximately 1.4 million shares at a total cost of $ 125.0 million and at an average price of $ 87.46 per share.

At December 25, 2022, $ 241.6 million remained under the current authorization.

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The Company elected the fair value option for certain available-for-sale investments using net asset value per share and during 2020, the Company liquidated these investments as part of its global cash management strategy.

The Company recorded net (losses) gains of $( 0.3 ) million and $ 1.9 million on these investments in other (income) expense, net for the years ended December 27, 2020 and December 29, 2019, respectively, relating to the change in fair value of such investments.

The Company recorded a net loss of $ 0.3 million on these investments in other (income) expense , net for the year ended December 27, 2020 relating to the change in fair value of such investments.

AND SUBSIDIARIES

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Product development $ 4.8 3.7 3.3

Selling, distribution and administration (a)(b)

94.1 46.4 24.7

Selling, distribution and administration (a)

76.5 94.1 46.4

Total stock compensation expense before income taxes 81.3 97.8 49.7

Income tax benefit 9.0 10.2 5.3

$ 87.6 44.4 24.4

(a) The 2021 increase in compensation expense reflects $ 20.9 million of additional expense associated with the contractual accelerated vesting of certain equity awards as a result of the passing of the Company's former CEO.

(b) The 2020 increase in compensation expense was due to additional stock options, restricted stock units, and stock performance awards granted to eligible participants as a result of the eOne acquisition.

Total stock compensation expense after income taxes $ 72.3 87.6 44.4

(a) The 2021 increase in compensation expense compared to 2020 reflects $ 20.9 million of additional expense associated with the contractual accelerated vesting of certain equity awards as a result of the passing of the Company's former CEO.

The following table represents total stock compensation expense, net of performance adjustments, by award type related to stock performance awards, restricted stock units, stock options and awards made to non-employee members of the Company’s Board of Directors, for the years ended December 25, 2022, December 26, 2021 and December 27, 2020:

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Non-employee awards 2.1 1.6 1.8

97.8 49.7 28.0

Total stock compensation expense before income taxes 81.3 97.8 49.7

Income tax benefit 9.0 10.2 5.3

$ 87.6 44.4 24.4

Total compensation expense after income taxes $ 72.3 87.6 44.4

AND SUBSIDIARIES

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These awards provide the recipients with the ability to earn shares of the Company’s common stock based on the Company’s achievement of stated cumulative operating performance targets over the three fiscal years ended December 2023, December 2022, and December 2022 for the 2022, 2021 and 2020 awards, respectively.

Each Stock Performance Award has a target number of shares of common stock associated with such award which may be earned by the recipient if the Company achieves the stated diluted earnings per share and revenue targets.

For certain employees participating in the 2019 and 2020 awards, the Stock Performance Awards also include an additional target for the Company's return on invested capital, in addition to the diluted earnings per share and revenue targets.

Beginning with the 2021 awards, all employee awards will be measured on achieving diluted earnings per share, revenue and return on invested capital targets.

Each Stock Performance Award granted in 2020 has a target number of shares of common stock associated with such award which may be earned by the recipient if the Company achieves the stated diluted earnings per share and revenue targets and for certain employees participating in the 2020 awards, the Stock Performance Awards include an additional target for the Company's return on invested capital.

For the 2021 and 2022 awards, all employee awards will be measured on achieving diluted earnings per share, revenue and return on invested capital targets.

The ultimate amount of the award may vary from 0 % to 200 % of the target number of shares, depending on the cumulative results achieved.

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Outstanding at end of year $ 78.15 75.74 69.25

Shares granted in 2021 included additional shares related to the 2019 award, reflecting adjustments to the ultimate amount of shares to be issued based on the Company's cumulative results achieved during the performance period.

These shares were excluded from the calculation of the weighted average grant-date fair value of Stock Performance awards granted in 2021.

Shares canceled in 2020 and 2019 represent Stock Performance Awards granted during 2018 and 2017, respectively, that were canceled based on the failure to meet the targets set forth by the agree ment.

Shares canceled in 2021 and 2020 represent Stock Performance Awards granted during 2019 and 2018, respectively, that were canceled based on the failure to meet the targets set forth by the agreements.

Stock Performance Awards are valued at the market value of the underlying common stock at the dates of grant and are expensed over the performance period.

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At December 25, 2022, the amount of total unrecognized compensation cost related to restricted stock units is $ 61.8 million and the weighted average period over which this will be expensed is 23 months.

I nformation with respect to the remaining Restricted Stock Awards and Restricted Stock Units for 2021, 2020 and 2019 is as follows:

Information with respect to the remaining Restricted Stock Awards and Restricted Stock Units for 2022, 2021 and 2020 is as follows:

(In millions, except per share data) 2022 2021 2020

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Exercisable at end of year $ 92.95 92.05 82.80

With respect to the 2.9 million outstanding options and 2.1 million options exercisable at December 26, 2021, the weighted average remaining contractual life of these options was 4.29 years and 3.83 years, respectively.

The aggregate intrinsic value of the options outstanding and exercisable at December 26, 2021 was $ 17.4 million and $ 12.9 million, respectively.

Substantially all unvested outstanding options are expected to vest.

With respect to the 1.8 million outstanding options and 0.8 million options exercisable at December 25, 2022, the weighted average remaining contractual life of these options was 4.61 years and 3.26 years, respectively, all of which have no intrinsic value.

The Company uses the Black-Scholes valuation model in determining the fair value of stock options.

The expected life of the options used in this calculation is the period of time the options are expected to be outstanding

AND SUBSIDIARIES

Notes to Consolidated Financial Statements — (Continued)

The Company uses the Black-Scholes valuation model in determining the fair value of stock options.

The expected life of the options used in this calculation is the period of time the options are expected to be outstanding and has been determined based on historical exercise experience.

and has been determined based on historical exercise experience.

The weighted average fair value of options granted in fiscal 2022, 2021 and 2020 was $ 22.12 , $ 21.30 and $ 18.58 , respectively.

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These awards were valued at the market value of the underlying common stock at the date of grant and vested upon grant.

In connection with these grants, compensation cost of $ 1.6 million was recorded in selling, distribution and administration expense in the year ended December 26, 2021, and $ 1.8 million in the years ended December 27, 2020 and December 29, 2019.

In connection with these grants, compensation cost of $ 2.1 million was recorded in selling, distribution and administration expense in the year ended December 25, 2022, $ 1.6 million in the year ended December 26, 2021 and $ 1.8 million in the year December 27, 2020.

(16) Pension, Postretirement and Postemployment Benefits

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Pension Plan, and ceased to exist as a separate plan on that date.

AND SUBSIDIARIES

Notes to Consolidated Financial Statements — (Continued)

In February 2018, the Compensation Committee of the Company’s Board of Directors approved a resolution to terminate the Company’s U.S.

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Pension Plan”).

During the first quarter of 2018 the Company commenced the U.S.

During the first quarter of 2018

AND SUBSIDIARIES

Notes to Consolidated Financial Statements — (Continued)

the Company commenced the U.S.

Pension Plan termination process and received regulatory approval during the fourth quarter of 2018.

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During the fourth quarter of 2019, with the approval of the Compensation Committee of the Company's Board of Directors, the Company announced the elimination of the contributory postretirement health and life insurance coverage for employees whose retirement eligibility begins after December 31, 2019.

As of December 26, 2021, the Company had unrecognized losses related to its remaining U.S.

As of December 25, 2022, the Company had unrecognized gains related to its remaining U.S.

pension and post retirement plans of $ 1.6 million.

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Weighted average discount rate 5.61 % 2.91 %

Mortality table Pri-2020/Scale

MP - 2021 Pri-2012/Scale

Mortality table PriH-2012/Scale

MP - 2021 PriH-2012/Scale

Postretirement

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Postretirement

Service cost $ — — 0.9

Interest cost 0.8 0.8 0.9

Amortization of service cost ( 0.3 ) — —

Amortization of actuarial loss 0.1 — —

Net periodic benefit cost $ 0.6 0.8 0.9

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Weighted average discount rate 2.91 % 2.51 % 3.33 %

Long-term rate of return on plan assets N/A N/A 4.20 %

Long-term rate of return on plan assets N/A N/A N/A

Postretirement

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Year that the rate reaches the ultimate trend rate 2025 2025 2024

Expected benefit payments under the defined benefit pension plans (which reflects the 2019 Plan termination) and the postretirement benefit plan for the next five years subsequent to 2021 and in the aggregate for the following five years are as follows:

Expected benefit payments under the defined benefit pension plans and the postretirement benefit plan for the next five years subsequent to 2022 and in the aggregate for the following five years are as follows:

(In millions) Pension Postretirement

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Notes to Consolidated Financial Statements — (Continued)

$ 1.2 million of unrecognized net losses and an immaterial amount of amortization of prior service costs and unrecognized transition obligation to be included as a component of net periodic benefit cost.

an immaterial amount of unrecognized net losses, amortization of prior service costs and unrecognized transition obligation to be included as a component of net periodic benefit cost.

Expected benefit payments under the international defined benefit pension plans for the five years subsequent to 2022 and in the aggregate for the five years thereafter are as follows:

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The Company capitalizes non-lease components for equipment leases, but expenses non-lease components as incurred for real estate leases.

The rent expense under such arrangements and similar arrangements that do not qualify as leases under ASU 2016-02, net of sublease income amounted to $ 88.2 million, $ 90.6 million and $ 68.9 million, respectively, for each of the three years ended December 26, 2021 and was not material to the Company’s financial statements nor were expenses related to short term leases (expected term less than twelve months) or variable lease payments during those same periods.

The rent expense under such arrangements and similar arrangements that do not qualify as leases under ASU 2016-02, net of sublease income amounted to $ 93.9 million, $ 88.2 million and $ 90.6 million, respectively, for each of the years ended December 27, 2020, December 26, 2021 and December 25, 2022, and was not material to the Company’s financial statements nor were expenses related to short term leases (expected term less than twelve months) or variable lease payments during those same periods.

All leases expire prior to 2033.

Real estate taxes, insurance and maintenance expenses are generally obligations of the Company.

It is expected that, in the normal course of business, leases that expire will be renewed or replaced by leases on other properties;

thus, it is anticipated that future minimum lease commitments will not be less than the amounts shown for 2021.

Operating leases often contain renewal options.

In those locations in which the Company continues to operate, management expects that, in the normal course of business, leases that expire will be renewed or replaced by leases on other properties.

Information related to the Company's leases for the years ended December 25, 2022 and December 26, 2021 is as follows:

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Right-of-use assets obtained in exchange for lease obligations:

Operating leases* $ 28.4 $ 109.1

Operating leases net of lease modifications $ 5.8 $ 28.4

Weighted Average Remaining Lease Term:

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Operating leases 3.4 % 3.0 %

*In 2020 as part of the acquisition of eOne, the Company recognized $ 88.8 million of Right-of-use assets, net in the form of operating leases.

AND SUBSIDIARIES

12 unchanged sentences

(3) Included in Property, plant and equipment on the consolidated balance sheets

At December 25, 2022, the Company was party to certain operating lease agreements commencing during 2023 and as such, are not included in the Company's consolidated balance sheets as of December 25, 2022.

These lease agreements have terms extending into 2029 and the total future expected undiscounted payments for these leases are $ 65.2 million.

(18) Derivative Financial Instruments

Hasbro uses foreign currency forward contracts to mitigate the impact of currency rate fluctuations on firmly committed and projected future foreign currency transactions.

These over-the-counter contracts, which hedge future currency requirements related to purchases of inventory, product sales, television and film production cost and production financing loans (see note 11) as well as other cross-border transactions not denominated in the functional currency of the business unit, are primarily denominated in United States and Hong Kong dollars, and Euros.

Hasbro uses foreign currency forward and option contracts to mitigate the impact of currency rate fluctuations on firmly committed and projected future foreign currency transactions.

These over-the-counter contracts, which hedge future currency requirements related to purchases of inventory, product sales, television and film production cost and production financing facilities (see note 11) as well as other cross-border transactions not denominated in the functional currency of the business unit, are primarily denominated in United States and Hong Kong dollars, and Euros.

All contracts are entered into with a number of counterparties, all of which are major financial institutions.

3 unchanged sentences

All of the Company’s designated foreign currency forward contracts are considered to be cash flow hedges.

These instruments hedge a portion of the Company’s currency requirements associated with anticipated inventory purchases, product sales, certain production financing loans and other cross-border transactions, primarily in years 2022 and 2023, and to a lesser extent, 2024.

At December 26, 2021 and December 27, 2020, the notional amounts and fair values of the Company’s foreign currency forward contracts designated as cash flow hedging instruments were as follows:

AND SUBSIDIARIES

Notes to Consolidated Financial Statements — (Continued)

At December 25, 2022 and December 26, 2021, the notional amounts and fair values of the Company’s foreign currency forward and option contracts designated as cash flow hedging instruments were as follows:

(In millions) Notional

5 unchanged sentences

Total $ 382.3 — 520.6 10.8

AND SUBSIDIARIES

Notes to Consolidated Financial Statements — (Continued)

The Company has a master agreement with each of its counterparties that allows for the netting of outstanding forward contracts.

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Net unrealized losses $ ( 2.8 ) ( 0.1 )

Other liabilities

Unrealized gains $ — —

Unrealized losses — ( 0.2 )

Net unrealized losses $ — ( 0.2 )

Net gains (losses) on cash flow hedging activities have been reclassified from other comprehensive earnings (loss) to net earnings for the years ended December 25, 2022, December 26, 2021 and December 27, 2020 as follows:

10 unchanged sentences

The Company does not use hedge accounting for these contracts as changes in the fair values of these contracts are offset by changes in the fair value of the balance sheet items.

As of December 26, 2021 and December 27, 2020, the total notional amounts of the Company’s undesignated derivative instruments were $ 632.0 million and $ 590.6 million, respectively.

As of December 25, 2022 and

AND SUBSIDIARIES

Notes to Consolidated Financial Statements — (Continued)

December 26, 2021, the total notional amounts of the Company’s undesignated derivative instruments were $ 765.6 million and $ 632.0 million, respectively.

At December 25, 2022 and December 26, 2021, the fair value of the Company’s undesignated derivative financial instruments are recorded in the consolidated balance sheets as follows:

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Total unrealized (losses) gains, net $ 5.0 ( 2.5 )

The Company recorded net gains (losses) gains of $ 4.6 million, $( 27.7 ) million and $ 13.4 million on these instruments to other (income) expense, net for 2021, 2020 and 2019, respectively, relating to the change in fair value of such derivatives, substantially offsetting gains and losses from the change in fair value of intercompany loans to which the instruments relate.

eOne Purchase Hedges

During the third quarter of 2019, the Company hedged a portion of its exposure to fluctuations in the British pound sterling and other transactions in relation to the eOne acquisition using a series of both foreign exchange forward and option contracts.

These contracts did not qualify for hedge accounting and as such, were marked to market through the Company's Consolidated Statement of Operations.

For tax purposes these contracts qualified as nontaxable integrated tax hedges.

The Company recorded realized gains of $ 80.0 million on matured contracts to other (income) expense, net for the year ended December 29, 2019.

These contracts matured on December 30, 2019 (the closing date of the transaction) and the related net gains or losses recognized in the Company's 2020 results were immaterial to the Company's consolidated financial statements.

The Company recorded net gains (losses) of $ 42.1 million, $ 4.6 million and $( 27.7 ) million on these instruments to other (income) expense, net for 2022, 2021 and 2020, respectively, relating to the change in fair value of such derivatives, substantially offsetting gains and losses from the change in fair value of intercompany loans to which the instruments relate.

For additional information related to the Company’s derivative financial instruments see notes 4 and 14.

(19) Restructuring Actions

During 2018, the Company announced a comprehensive restructuring plan which consisted of re-designing its go-to market strategy and re-shaping its organization to become a more responsive, innovative and digitally-driven play and entertainment company.

As part of this process the Company took certain restructuring actions which continued through 2019.

The actions primarily included headcount reduction aimed at right-sizing the Company’s cost-structure and giving it the ability to add required new talent in the future.

In 2020, the Company continued to streamline its commercial organization, and recorded severance of $ 6.9 million associated with these cost-savings initiatives.

These charges were included within selling, distribution and administrative costs on the Consolidated Statement of Operations for the year ended December 27, 2020.

During 2020, in connection with the eOne acquisition, the Company recorded $ 32.5 million of severance and other employee charges related to the integration of eOne.

These charges were recorded within acquisition and related costs on the Consolidated Statements of Operations for the year ended December 27, 2020, and reported within Corporate and Eliminations.

The Company also recorded severance charges of $ 1.5 million in 2020 associated with cost-savings initiatives within the eOne Music business.

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Notes to Consolidated Financial Statements — (Continued)

The detail of activity related to the programs as of December 26, 2021 is as follows:

(In millions) 2018 Restructuring & 2020 Commercial Program eOne Integration Program Other Total

Remaining amounts to be paid as of December 29, 2019 $ 31.1 $ — $ — $ 31.1

2020 restructuring charges 6.9 32.5 1.5 40.9

Payments made in 2020 ( 20.7 ) ( 15.6 ) ( 0.7 ) ( 37.0 )

Remaining amounts to be paid as of December 27, 2020 17.3 16.9 0.8 $ 35.0

During 2018 and 2020, the Company took certain restructuring actions including headcount reduction aimed at right-sizing the Company’s cost-structure and integration actions related to the acquisition of eOne.

As of December 25, 2022, the Company had a remaining balance of $ 9.0 million in severance and other employee expenses related to these programs, after reflecting payments of $ 5.8 million during the year.

During 2022, in support of Blueprint 2.0, Hasbro announced an Operational Excellence program under which the Company took certain restructuring actions, including global workforce reductions, resulting in severance and other employee charges of $ 94.1 million recorded in Selling, Distribution and Administration within the Corporate and Other segment.

The detail of activity related to the Company's Operational Excellence program as of December 25, 2022 is as follows:

(In millions) Total

2022 Operational Excellence charges $ 94.1

Payments made in 2022 ( 9.2 )

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Hasbro had unused open letters of credit and related instruments of approximately $ 11.9 million and $ 13.6 million at December 25, 2022 and December 26, 2021, respectively.

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Notes to Consolidated Financial Statements — (Continued)

The Company enters into license agreements with strategic partners, inventors, designers and others for the use of intellectual properties in its products.

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See note 11 for information on repayment terms for the Company's variable rate term loans.

The Company enters into contracts with certain partners which among other things, provide the Company right of first refusal to purchase, distribute, or license certain entertainment projects or content.

The Company enters into contracts with certain partners which among other things, provide the Company with the right of first refusal to purchase, distribute, or license certain entertainment projects or content.

At December 25, 2022, the Company estimates that it may be obligated to pay $ 18.9 million and $ 4.5 million, in 2023 and 2024, respectively, related to such agreements.

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These payments are contingent upon the Company having sufficient taxable income to realize the expected tax deductions of certain amounts related to the joint venture.

At December 26, 2021, the Company estimates payments related to inventory and tooling purchase commitments may total approximately $ 621.7 million, including contractual commitments under the manufacturing agreement with Cartamundi as follows:

$ 95.0 million and 2023:

$ 85.0 million.

At December 25, 2022, the Company estimates payments related to inventory and tooling purchase commitments may total approximately $ 452.7 million, including the remaining contractual commitment of $ 85.0 million in 2023 under the manufacturing agreement with Cartamundi.

Hasbro is party to certain legal proceedings, as well as certain asserted and unasserted claims.

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See note 11 for additional information on the Company's long-term debt and production financing repayments.

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Notes to Consolidated Financial Statements — (Continued)

(21) Segment Reporting

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The Entertainment segment engages in the development, acquisition, production, distribution and sale of world-class entertainment content including film, scripted and unscripted television, family programming, digital content and live entertainment.

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Notes to Consolidated Financial Statements — (Continued)

Segment performance is measured at the operating profit level.

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The assets and liabilities of eOne Music were de-consolidated as of the closing date and there are no remaining carrying amounts in the Company's Consolidated Balance Sheets as of December 26, 2021.

The sale of eOne Music in 2021 did not impact the Company's previously reported 2020 or 2019 net revenues, operating profit, earnings, assets or liabilities.

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Notes to Consolidated Financial Statements — (Continued)

The sale of eOne Music in 2021 did not impact the Company's previously reported 2020 net revenues, operating profit, earnings, assets or liabilities.

Information by segment and a reconciliation to reported amounts are as follows:

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Additions Total

Consumer Products $ 3,981.6 465.4 401.4 112.4 73.1 4,925.5

Consumer Products (a)

$ 3,572.5 396.7 217.3 152.5 87.0 5,757.7

Wizards of the Coast and Digital Gaming 1,325.1 172.5 538.3 14.6 52.5 2,968.7

Entertainment 1,152.2 61.5 ( 91.8 ) 96.6 6.2 6,052.8

Corporate and Other (a)

Entertainment (a)

959.1 57.5 22.7 43.8 6.9 6,273.3

Corporate and Other (b)

— ( 626.7 ) ( 370.6 ) 21.6 27.8 ( 5,703.8 )

Consolidated Total $ 5,856.7 — 407.7 232.5 174.2 9,295.9

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Entertainment 1,152.2 61.5 ( 91.8 ) 96.6 6.2 6,052.8

Corporate and Other (a)

Corporate and Other (b)

— ( 648.5 ) ( 93.3 ) 22.6 18.3 ( 2,525.6 )

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Entertainment 909.1 5.9 ( 141.1 ) 138.0 6.6 6,003.0

Corporate and Other (a)

Corporate and Other (b)

— ( 462.2 ) ( 85.6 ) 39.7 14.0 ( 1,322.8 )

Consolidated Total $ 5,465.4 — 501.8 265.0 125.8 10,818.4

(a) Certain long-term assets, including property, plant and equipment, goodwill and other intangibles, which benefit multiple operating segments, are included in both Entertainment and Corporate and Other.

Allocations of certain expenses, related assets within the individual operating segments, are done at the beginning of the year based on budgeted amounts.

(a) Beginning in 2022, the Company has allocated certain of the intangible amortization costs related to the assets acquired in the eOne Acquisition, between the Consumer Products and Entertainment segments.

(b) Certain long-term assets, including property, plant and equipment, goodwill and other intangibles, which benefit multiple operating segments, are included in both Entertainment and Corporate and Other.

Allocations of certain expenses, related assets within the individual operating segments, are done at the beginning of the

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Notes to Consolidated Financial Statements — (Continued)

year based on budgeted amounts.

Any differences between actual and budgeted amounts are reflected in Corporate and Other.

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Net revenues $ 3,572.5 3,981.6 3,649.6

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Notes to Consolidated Financial Statements — (Continued)

The following table represents consolidated Wizards of the Coast and Digital Gaming segment net revenues by category for the three fiscal years ended December 25, 2022:

(In millions) 2022 2021 2020

Tabletop Gaming $ 1,067.0 950.6 659.6

Digital and Licensed Gaming 258.1 336.0 247.1

Net revenues $ 1,325.1 1,286.6 906.7

The following table represents consolidated Entertainment segment net revenues by category for the three fiscal years ended December 25, 2022 .

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Franchise Brands (1)

$ 2,830.6 2,955.6 2,394.3

Partner Brands 1,052.0 1,161.0 1,079.4

Hasbro Gaming (2)

743.3 851.4 814.8

Emerging Brands (1)

402.1 454.7 372.2

TV/Film/Entertainment 828.7 997.7 804.7

Net revenues $ 5,856.7 6,420.4 5,465.4

(1) Effective in the first quarter of 2022, the Company moved PEPPA PIG into Franchise Brands from Emerging Brands.

For comparability, the year ended December 26, 2021 net revenues have been restated to reflect the elevation of PEPPA PIG from Emerging Brands into Franchise Brands resulting in a change of $ 162.9 million.

(2) Hasbro’s total gaming category, including all gaming net revenues, most notably MAGIC:

THE GATHERING and MONOPOLY, totaled $ 1,997.5 million, $ 2,098.9 million and $ 1,763.8 million for the years ended December 25, 2022, December 26, 2021 and December 27, 2020, respectively.

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Notes to Consolidated Financial Statements — (Continued)

Information as to Hasbro’s operations in different geographical areas is presented below on the basis the Company uses to manage its business.

Net revenues are categorized based on location of the customer, while long-lived assets (property, plant and equipment, goodwill and other intangibles) are categorized based on their location.

Net revenues are categorized based on the location of the customer, while long-lived assets (property, plant and equipment, goodwill and other intangibles) are categorized based on their location.

(In millions) 2022 2021 2020

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Although the Company closely monitors the creditworthiness of its customers, adjusting credit policies and limits as deemed appropriate, a substantial portion of its customers’ ability to discharge amounts owed is generally dependent upon the overall retail economic environment.

In 2021 and 2020 the Company’s largest customers were Wal-Mart Stores, Inc., Amazon.com and Target Corporation.

Sales to these customers amounted to 13 %, 11 % and 8 %, respectively of consolidated net revenues in 2021 and 15 %, 10 % and 8 %, respectively of consolidated net revenues during 2020.

In 2019 the Company’s largest customers were Wal-Mart Stores, Inc.

and Target Corporation.

Sales to these customers amounted to 18 % and 9 %, respectively, of consolidated net revenues during 2019.

In 2022 and 2021 the Company’s largest customers were Walmart, Inc.

and Amazon.com, Inc.

Sales to each of these customers amounted to 11 % and 10 %, respectively, of consolidated net revenues in 2022 and 13 % and 11 %, respectively, of consolidated net revenues during 2021.

In 2020 sales to these customers amounted to 15 % and 10 %, respectively, of consolidated net revenues.

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

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Notes to Consolidated Financial Statements — (Continued)

Hasbro purchases certain components used in its manufacturing process and certain finished products from manufacturers in the Far East.

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These licenses have multi-year terms and provide the Company with the right to market and sell designated classes of products based on Marvel’s portfolio of brands, including SPIDER-MAN and THE AVENGERS, and Lucas’s STAR WARS brand.

The Company also has a license to market products with The Walt Disney Company for DISNEY PRINCESS and DISNEY FROZEN lines through the end of 2022.

Hasbro’s net revenues from these licenses can be significant in any given year based on the level of thirdparty entertainment.

In addition to DISNEY PRINCESS and DISNEY FROZEN, both Marvel and Lucas are owned by The Walt Disney Company.

Both Marvel and Lucas are owned by The Walt Disney Company.

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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 8. Financial Statements and Supplementary Data