What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2024-07-31 compared with 2024-05-01 · 202 added, 162 removed, 549 unchanged (40% of the section changed)

3 unchanged sentences

(Millions of Dollars Except Share Data)

2024 April 2,

2023 December 31,

2 unchanged sentences

$ 626.8 $ 216.6 $ 545.4

Short-term investments 483.0 — —

Accounts receivable, net 789.0 877.0 1,029.3

14 unchanged sentences

Short-term borrowings $ — $ 148.2 $ —

$ — $ 134.5 $ —

Current portion of long-term debt 500.0 69.4 500.0

500.0 109.0 500.0

Accounts payable 297.5 363.4 340.6

254.2 360.1 340.6

Accrued liabilities 1,032.6 1,369.4 1,215.8

1,038.0 1,293.8 1,215.8

Total current liabilities 1,830.1 1,950.4 2,056.4

Long-term debt 3,461.4 3,668.5 2,965.8

2,966.9 3,682.4 2,965.8

Other liabilities 399.7 520.6 431.7

414.0 585.2 431.7

Total liabilities $ 5,691.2 $ 6,139.5 $ 5,453.9

$ 5,173.1 $ 6,165.0 $ 5,453.9

Commitments and contingencies (Note 14)

4 unchanged sentences

Authorized 600,000,000 shares;

issued 220,286,736 shares at March 31, 2024, April 2, 2023, and December 31, 2023

issued 220,286,736 shares at June 30, 2024, July 2, 2023, and December 31, 2023

110.1 110.1 110.1

Additional paid-in capital 2,592.1 2,554.6 2,590.6

2,569.9 2,535.7 2,590.6

Retained earnings 2,284.7 3,618.1 2,188.4

2,148.0 3,951.8 2,188.4

Accumulated other comprehensive loss ( 222.2 ) ( 213.5 ) ( 201.5 )

( 203.3 ) ( 237.4 ) ( 201.5 )

Treasury stock, at cost;

81,081,180 shares at March 31, 2024;

81,687,608 shares at April 2, 2023;

80,905,996 shares at June 30, 2024;

81,568,249 shares at July 2, 2023;

and 81,498,181 shares at December 31, 2023

1 unchanged sentence

Noncontrolling interests 22.3 27.2 25.1

24.0 27.9 25.1

Total shareholders' equity 1,172.9 2,470.2 1,087.0

1,029.9 2,758.7 1,087.0

Total liabilities, noncontrolling interests and shareholders' equity $ 6,864.1 $ 8,609.7 $ 6,540.9

$ 6,203.0 $ 8,923.7 $ 6,540.9

See accompanying condensed notes to consolidated financial statements.

2 unchanged sentences

(Millions of Dollars Except Per Share Data)

Quarter Ended

2024 April 2,

Three Months Ended Six Months Ended

2023 June 30,

Net revenues $ 995.3 $ 1,210.0 $ 1,752.6 $ 2,211.0

6 unchanged sentences

Amortization of intangibles 17.1 22.8 34.1 45.9

Selling, distribution and administration 234.8 317.1

Impairment of goodwill — 231.2 — 231.2

Loss on disposal of business 15.3 — 24.4 —

Selling, distribution and administration 318.5 380.6 553.3 697.7

Total costs and expenses 783.2 1,398.6 1,424.3 2,381.7

Operating profit 116.2 17.9

Operating profit (loss) 212.1 ( 188.6 ) 328.3 ( 170.7 )

Non-operating expense (income):

1 unchanged sentence

Interest income ( 13.0 ) ( 5.8 ) ( 21.3 ) ( 11.8 )

Other expense (income), net 5.0 ( 1.4 )

Other (income) expense, net ( 0.8 ) ( 1.5 ) 4.2 ( 2.9 )

Total non-operating expense, net 29.2 39.3 64.4 78.2

13 unchanged sentences

(Millions of Dollars)

Quarter Ended

2024 April 2,

Three Months Ended Six Months Ended

2023 June 30,

Net earnings (loss) $ 138.5 $ ( 234.9 ) $ 197.6 $ ( 256.6 )

5 unchanged sentences

Amortization of unrecognized pension and postretirement amounts — ( 0.1 ) — ( 0.2 )

Total other comprehensive earnings (loss), net of tax $ ( 1.8 ) $ 17.5

Total other comprehensive (loss) earnings, net of tax ( 18.9 ) 23.9 ( 20.7 ) 41.4

Total comprehensive earnings attributable to noncontrolling interests — 0.1 0.9 0.5

5 unchanged sentences

(Millions of Dollars)

Three months ended

2024 April 2,

Six months ended

Cash flows from operating activities:

3 unchanged sentences

Loss on disposal of business 24.4 —

Impairment of goodwill — 231.2

Impairment of intangible assets — 65.0

Amortization of intangibles 34.1 45.9

9 unchanged sentences

Decrease in accounts payable and accrued liabilities ( 192.7 ) ( 192.1 )

Change in net deemed repatriation tax ( 8.2 ) ( 34.4 )

Other 39.3 16.3

2 unchanged sentences

Additions to property, plant and equipment ( 97.7 ) ( 112.1 )

Investments ( 480.1 ) —

Other 2.4 ( 3.7 )

7 unchanged sentences

Stock-based compensation transactions 4.0 —

Payment of financing costs ( 5.3 ) —

Other ( 2.3 ) ( 5.4 )

Net cash utilized by financing activities ( 108.9 ) ( 156.6 )

Net cash provided by (utilized by) financing activities 288.5 ( 296.2 )

Effect of exchange rate changes on cash 3.2 ( 3.7 )

8 unchanged sentences

AND SUBSIDIARIES

Consolidated Statements of Shareholders' Equity and Redeemable Noncontrolling Interests

Consolidated Statements of Shareholders' Equity

(Millions of Dollars)

Three Months Ended March 31, 2024

Stock Additional

13 unchanged sentences

Balance, March 31, 2024 $ 110.1 $ 2,569.9 $ 2,148.0 $ ( 203.3 ) $ ( 3,618.8 ) $ 24.0 $ 1,029.9

Three Months Ended April 2, 2023

Net earnings attributable to Hasbro, Inc.

— — 138.5 — — — 138.5

Other comprehensive loss — — — ( 18.9 ) — — ( 18.9 )

Stock-based compensation transactions — 2.9 — — 2.4 — 5.3

Stock-based compensation expense — 17.5 — — 2.3 — 19.8

Dividends declared — 1.8 ( 1.8 ) — — — —

Distributions paid to noncontrolling owners and other foreign exchange — — — — — ( 1.7 ) ( 1.7 )

Balance, June 30, 2024 $ 110.1 $ 2,592.1 $ 2,284.7 $ ( 222.2 ) $ ( 3,614.1 ) $ 22.3 $ 1,172.9

See accompanying condensed notes to consolidated financial statements.

AND SUBSIDIARIES

Consolidated Statements of Shareholders' Equity

(Millions of Dollars)

Stock Additional

15 unchanged sentences

Balance, April 2, 2023 $ 110.1 $ 2,535.7 $ 3,951.8 $ ( 237.4 ) $ ( 3,629.4 ) $ 27.9 $ 2,758.7

Net loss attributable to Hasbro, Inc.

— — ( 235.0 ) — — — ( 235.0 )

Net earnings attributable to noncontrolling interests — — — — — 0.1 0.1

Other comprehensive earnings — — — 23.9 — — 23.9

Stock-based compensation transactions — ( 1.1 ) — — 0.7 — ( 0.4 )

Stock-based compensation expense — 18.5 — — 2.4 — 20.9

Dividends declared — 1.5 ( 98.7 ) — — — ( 97.2 )

Distributions paid to noncontrolling owners and other foreign exchange — — — — — ( 0.8 ) ( 0.8 )

Balance, July 2, 2023 $ 110.1 $ 2,554.6 $ 3,618.1 $ ( 213.5 ) $ ( 3,626.3 ) $ 27.2 $ 2,470.2

See accompanying condensed notes to consolidated financial statements.

AND SUBSIDIARIES

3 unchanged sentences

In the opinion of management, the accompanying unaudited interim consolidated financial statements contain all normal and recurring adjustments necessary to present fairly the consolidated financial position of Hasbro, Inc.

and all consolidated subsidiaries ("Hasbro" or the "Company") as of March 31, 2024, April 2, 2023, and December 31, 2023, and the results of its operations and cash flows and shareholders' equity for the periods ended March 31, 2024 and April 2, 2023 in accordance with accounting principles generally accepted in the United States of America ("U.S.

and all consolidated subsidiaries ("Hasbro" or the "Company") as of June 30, 2024, July 2, 2023, and December 31, 2023, and the results of its operations and cash flows and shareholders' equity for the periods ended June 30, 2024 and July 2, 2023 in accordance with accounting principles generally accepted in the United States of America ("U.S.

The preparation of consolidated financial statements in conformity with U.S.

1 unchanged sentence

Actual results could differ from those estimates.

The quarters ended March 31, 2024 and April 2, 2023 were 13-week and 14-week periods, respectively.

The results of operations for the quarter ended March 31, 2024 are not necessarily indicative of results to be expected for the full year 2024, nor were those of the comparable 2023 period representative of those actually experienced for the full year 2023.

The three months ended June 30, 2024 and July 2, 2023 were 13-week and 14-week periods, respectively.

The six months ended June 30, 2024 and July 2, 2023 were 26-week and 27-week periods, respectively.

The results of operations for the three and six months ended June 30, 2024 are not necessarily indicative of results to be expected for the full year 2024, nor were those of the comparable 2023 periods representative of those actually experienced for the full year 2023.

These consolidated financial statements have been prepared without audit, pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC").

3 unchanged sentences

Other Adjustments

During the quarter ended March 31, 2024, the Company corrected a prior year error and recorded an $ 18.1 million benefit related to the reversal of stock compensation expense for the Company's performance stock awards that should have been recorded during fiscal year 2023.

The $ 18.1 million benefit recorded during the quarter ended March 31, 2024 is not considered to be material to the full year 2023 or 2024 consolidated financial statements.

During the three months ended March 31, 2024, the Company corrected a prior year error and recorded an $ 18.1 million benefit related to the reversal of stock compensation expense for the Company's performance stock awards that should have been recorded during fiscal year 2023.

The $ 18.1 million benefit recorded during the three months ended March 31, 2024 is not considered to be material to the full year 2023 or 2024 consolidated financial statements.

During the three months ended June 30, 2024, the Company corrected a prior year error and recorded a $ 31.1 million expense and associated liability related to historical environmental exposures in accordance with Accounting Standard Codification 410, Asset Retirement and Environmental Obligations .

The $ 31.1 million expense was recorded in Selling, distribution and administration on the Consolidated Statements of Operations.

Additionally, during the three months ended June 30, 2024, the Company corrected a prior year error and recorded a $ 26.7 million benefit related to an over-accrual of vendor commitment liabilities.

The $ 26.7 million benefit was recorded in Cost of sales on the Consolidated Statements of Operations.

The recording of these two items were not considered to be material, individually or in the aggregate, to the Company's prior year financial statements or the 2024 consolidated financial statements.

Significant Accounting Policies

1 unchanged sentence

Recently Adopted Accounting Standards

During the quarter ended March 31, 2024, there were no recently adopted accounting standards that had a material effect on the Company’s financial statements.

During the three and six months ended June 30, 2024, there were no recently adopted accounting standards that had a material effect on the Company’s financial statements.

Issued Accounting Pronouncements

2 unchanged sentences

The amendments in this update enhance disclosures for significant segment expenses for all public entities required to report segment information in accordance with ASC 280.

The standard did not change the definition of a segment, the method for determining segments or the criteria for aggregating operating segments into reportable segments.

The standard did not change the definition of a segment, the method for determining segments or the

Condensed Notes to Consolidated Financial Statements

(Millions of Dollars and Shares Except Per Share Data)

criteria for aggregating operating segments into reportable segments.

The amendments are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024.

6 unchanged sentences

This amendment requires public companies to disclose specific categories in the rate reconciliation and provide additional information for reconciling items that meet a quantitative threshold.

Additionally, under the amendment, entities are required to disclose the amount of income taxes paid disaggregated by federal, state and foreign taxes, as well as disaggregated by material individual

Condensed Notes to Consolidated Financial Statements

(Millions of Dollars and Shares Except Per Share Data)

jurisdictions.

Additionally, under the amendment, entities are required to disclose the amount of income taxes paid disaggregated by federal, state and foreign taxes, as well as disaggregated by material individual jurisdictions.

Finally, the amendment requires entities to disclose income from continuing operations before income tax expense disaggregated between domestic and foreign and income tax expense from continuing operations disaggregated by federal, state and foreign.

1 unchanged sentence

We are currently assessing the impact of this ASU on our consolidated financial statements.

There were no other recently issued accounting pronouncements which would have a material effect on the Company’s condensed consolidated financial statements.

(2) Revenue Recognition

15 unchanged sentences

(Millions of Dollars and Shares Except Per Share Data)

The changes in carrying amounts of contract assets and liabilities for the three months ended March 31, 2024 and April 2, 2023 are as follows:

2024 April 2,

The changes in carrying amounts of contract assets and liabilities for the six months ended June 30, 2024 and July 2, 2023 are as follows:

Balance at beginning of the year $ 213.3 $ 594.4

11 unchanged sentences

Unsatisfied performance obligations relate primarily to in-production television content to be delivered in the future under existing agreements with partnering content providers such as broadcasters, distributors, television networks and subscription video on demand services.

As of March 31, 2024, unrecognized revenue attributable to unsatisfied performance obligations expected to be recognized in the future was $ 2.1 million.

As of June 30, 2024, unrecognized revenue attributable to unsatisfied performance obligations expected to be recognized in the future was $ 2.4 million.

Of this amount, we expect to recognize $ 1.5 million in the remainder of 2024 and $ 0.9 million in 2025.

1 unchanged sentence

Accounts Receivable and Allowance for Credit Losses

The Company’s balance for accounts receivable on the Consolidated Balance Sheets as of March 31, 2024 and April 2, 2023 are primarily from contracts with customers.

A summary of the activity in the allowance for credit losses for the three months ended March 31, 2024 and April 2, 2023 are as follows:

2024 April 2,

The Company’s balance for accounts receivable on the Consolidated Balance Sheets as of June 30, 2024 and July 2, 2023 are primarily from contracts with customers.

A summary of the activity in the allowance for credit losses for the six months ended June 30, 2024 and July 2, 2023 are as follows:

Balance at beginning of the year $ 12.7 $ 20.0

Charged to costs and expenses, net 1.8 1.5

Customer accounts written off—net of recoveries ( 0.6 ) —

Foreign currency impact ( 0.8 ) 0.7

13 unchanged sentences

Effective in the first quarter of 2024, subsequent to the sale of the eOne Film and TV business (as defined in Note 3), the Company moved the remaining Non-Hasbro Branded Film & TV brands into Portfolio Brands to align with the Company's Brand Strategy.

For comparability, net revenues for quarter ended April 2, 2023, has been reclassified to reflect the movement, resulting in a change of $ 0.1 million.

For comparability, net revenues for the three and six months ended July 2, 2023, have been reclassified to reflect the movement, resulting in a change of $ 0.8 million and $ 0.9 million, respectively.

Condensed Notes to Consolidated Financial Statements

(Millions of Dollars and Shares Except Per Share Data)

The following table represents consolidated Consumer Products segment net revenues by major geographic region for the quarters ended March 31, 2024 and April 2, 2023:

Quarter Ended

2024 April 2,

The following table represents consolidated Consumer Products segment net revenues by major geographic region for the three and six months ended June 30, 2024 and July 2, 2023:

Three Months Ended Six Months Ended

2023 June 30,

North America $ 306.1 $ 382.0 $ 545.2 $ 661.1

3 unchanged sentences

Net revenues $ 524.5 $ 655.2 $ 937.5 $ 1,175.6

The following table represents consolidated Wizards of the Coast and Digital Gaming segment net revenues by category for the quarters ended March 31, 2024 and April 2, 2023:

Quarter Ended

2024 April 2,

The following table represents consolidated Wizards of the Coast and Digital Gaming segment net revenues by category for the three and six months ended June 30, 2024 and July 2, 2023:

Three Months Ended Six Months Ended

2023 June 30,

Tabletop Gaming $ 307.6 $ 298.5 $ 535.8 $ 516.4

1 unchanged sentence

Net revenues $ 452.0 $ 375.6 $ 768.3 $ 670.8

The following table represents consolidated Entertainment segment net revenues by category for the quarters ended March 31, 2024 and April 2, 2023:

Quarter Ended

2024 April 2,

The following table represents consolidated Entertainment segment net revenues by category for the three and six months ended June 30, 2024 and July 2, 2023:

Three Months Ended Six Months Ended

2023 June 30,

Film and TV (1)

$ 1.8 $ 153.3 $ 1.8 $ 321.7

Family Brands 17.0 25.9 45.0 42.9

Net revenues $ 18.8 $ 179.2 $ 46.8 $ 364.6

The following table presents consolidated net revenues by brand portfolio for the quarters ended March 31, 2024 and April 2, 2023:

Quarter Ended

Net revenues March 31,

2024 April 2,

(1) Net revenues from the Company's Film and TV portfolio were primarily associated with the Company's non-core eOne Film and TV business sold to Lionsgate during the fourth quarter of 2023.

The following table presents consolidated net revenues by brand portfolio for the three and six months ended June 30, 2024 and July 2, 2023:

Three Months Ended Six Months Ended

2023 June 30,

Franchise Brands $ 786.6 $ 788.4 $ 1,393.1 $ 1,401.8

2 unchanged sentences

Non-Hasbro Branded Film & TV (1)

Total $ 757.3 $ 1,001.0

— 140.8 — 303.6

Net revenues $ 995.3 $ 1,210.0 $ 1,752.6 $ 2,211.0

(1) Net revenues from the Company's Non-Hasbro-branded Film and TV portfolio were associated with the Company's non-core eOne Film and TV business sold to Lionsgate during the fourth quarter of 2023.

5 unchanged sentences

The Company sold eOne Film and TV for a sales price of $ 375.0 million in cash, subject to the satisfaction of customary net working capital closing conditions and holdbacks for certain retained liabilities, plus the assumption by Lionsgate of production financing loans.

During the three months ended June 30, 2024, the Company recorded a $ 15.3 million expense in Loss on disposal of business on the Consolidated Statements of Operations associated with certain purchase price and related adjustments.

The Company recorded a pre-tax non-cash charge of $ 539.0 million within Loss on disposal of business on the Consolidated Statements of Operations for the year ended December 31, 2023.

2 unchanged sentences

(4) Earnings (Loss) Per Share

Net earnings (loss) per share data for the quarters ended March 31, 2024 and April 2, 2023 were computed as follows:

Quarter Ended

March 31, 2024 April 2, 2023

Net earnings (loss) per share data for the three and six months ended June 30, 2024 and July 2, 2023 were computed as follows:

Three Months Ended Six Months Ended

2023 June 30,

Net earnings (loss) attributable to Hasbro, Inc.

8 unchanged sentences

Diluted $ 0.99 $ ( 1.69 ) $ 1.41 $ ( 1.85 )

For the quarters ended March 31, 2024 and April 2, 2023, options and restricted stock units totaling 2.6 million and 4.2 million, respectively, were excluded from the calculation of diluted earnings per share because to include them would have been anti-dilutive.

Of the fiscal 2023 amount, 2.0 million would have been included in the calculation of diluted shares had the Company not had a net loss for the quarter ended April 2, 2023.

Assuming that these awards and options were included, under the treasury stock method, they would have resulted in an additional 0.1 million being included in the diluted earnings per share calculation for the quarter ended April 2, 2023.

Changes in the carrying amount of goodwill, by operating segment, for the quarters ended March 31, 2024 and April 2, 2023 are as follows:

Consumer Products Wizards of the Coast and Digital Gaming Entertainment Total

For the three and six months ended June 30, 2024, options and restricted stock units totaling 2.0 million and 2.3 million, respectively, were excluded from the calculation of diluted earnings per share because to include them would have been anti-dilutive.

For the three and six months ended July 2, 2023, options and restricted stock units totaling 4.3 million and 4.2 million, respectively, were excluded from the calculation of diluted earnings per share because to include them would have been anti-dilutive.

Of the fiscal 2023 amount, 1.2 million and 1.6 million shares, respectively, would have been included in the calculation of diluted shares had the Company not had a net loss for the three and six months ended July 2, 2023.

Assuming that these awards and options were included, under the treasury stock method, they would have resulted in an additional 0.2 million and 0.1 million shares, respectively, being included in the diluted earnings per share calculation for the three and six months ended July 2, 2023.

Changes in the carrying amount of goodwill, by operating segment, for the six months ended June 30, 2024 and July 2, 2023 are as follows:

Consumer Products Wizards of the Coast and Digital Gaming Entertainment (1)

Balance as of December 31, 2023 $ 1,582.3 $ 371.7 $ 325.2 $ 2,279.2

$ 1,582.3 $ 371.7 $ 325.2 $ 2,279.2

Foreign exchange translation ( 0.1 ) ( 0.3 ) — ( 0.4 )

Balance as of March 31, 2024 $ 1,582.2 $ 371.5 $ 325.1 $ 2,278.8

Balance as of June 30, 2024 $ 1,582.2 $ 371.4 $ 325.2 $ 2,278.8

Condensed Notes to Consolidated Financial Statements

(Millions of Dollars and Shares Except Per Share Data)

Consumer Products Wizards of the Coast and Digital Gaming Entertainment Total

Consumer Products Wizards of the Coast and Digital Gaming Entertainment (1)

Balance as of December 25, 2022 $ 1,584.7 $ 371.5 $ 1,513.9 $ 3,470.1

Foreign exchange translation 0.1 0.2 — 0.3

Balance as of April 2, 2023 (1)

$ 1,584.7 $ 371.5 $ 1,513.9 $ 3,470.1

(1) During the second and fourth quarters of 2023, the Company recorded $ 231.2 million and $ 960.0 million of non-cash goodwill impairments charges, respectively, within the Entertainment segment.

Impairment during the period — — ( 231.2 ) ( 231.2 )

Balance as of July 2, 2023 $ 1,584.8 $ 371.7 $ 1,282.7 $ 3,239.2

(1) During the fourth quarter of 2023, the Company recorded $ 960.0 million of non-cash goodwill impairment charges within the Entertainment segment.

See further detail in the 2023 Annual Report.

During the six months ended July 2, 2023, the Company recorded non-cash impairment charges of $ 296.2 million within the Entertainment segment.

These impairment charges consisted of a $ 231.2 million goodwill impairment charge associated recorded within Impairment of goodwill and a $ 65.0 million intangible asset impairment charge, recorded in Selling, distribution and administration costs, within the Consolidated Statements of Operations for the three and six months ended July 2, 2023.

(6) Other Comprehensive Earnings (Loss)

Components of Other comprehensive earnings (loss) are presented within the Consolidated Statements of Comprehensive Earnings (Loss).

The following table presents the related tax effects on changes in Other comprehensive earnings (loss) for the quarters ended March 31, 2024 and April 2, 2023.

Quarter Ended

2024 April 2,

The following table presents the related tax effects on changes in Other comprehensive earnings (loss) for the three and six months ended June 30, 2024 and July 2, 2023.

Three Months Ended Six Months Ended

2023 June 30,

Other comprehensive earnings (loss), tax effect:

Tax benefit on cash flow hedging activities $ — $ 1.2

Reclassifications to earnings, tax effect:

Tax (benefit) expense on cash flow hedging activities $ ( 1.2 ) $ 1.2 $ ( 1.2 ) $ 2.3

Reclassifications to earnings (loss), tax effect:

Tax (benefit) expense on cash flow hedging activities ( 0.3 ) ( 0.6 ) ( 0.5 ) ( 0.4 )

Amortization of unrecognized pension and postretirement amounts

Total tax effect on other comprehensive earnings (loss) $ ( 1.5 ) $ 0.6 $ ( 1.7 ) $ 2.0

Changes in the components of Accumulated other comprehensive earnings (loss), net of tax for the quarters ended March 31, 2024 and April 2, 2023 are as follows:

Condensed Notes to Consolidated Financial Statements

(Millions of Dollars and Shares Except Per Share Data)

Changes in the components of Accumulated other comprehensive earnings (loss), net of tax for the six months ended June 30, 2024 and July 2, 2023 are as follows:

Postretirement

6 unchanged sentences

Current period other comprehensive earnings (loss) — 6.0 — ( 26.7 ) ( 20.7 )

Balance at March 31, 2024 $ ( 4.2 ) $ ( 14.6 ) $ ( 0.1 ) $ ( 184.4 ) $ ( 203.3 )

Balance at June 30, 2024 $ ( 4.2 ) $ ( 10.8 ) $ ( 0.1 ) $ ( 207.1 ) $ ( 222.2 )

Balance at December 25, 2022 $ ( 3.0 ) $ ( 12.0 ) $ ( 0.1 ) $ ( 239.8 ) $ ( 254.9 )

Current period other comprehensive earnings (loss) ( 0.2 ) ( 7.6 ) — 49.2 41.4

Balance at April 2, 2023 $ ( 3.1 ) $ ( 18.7 ) $ ( 0.1 ) $ ( 215.5 ) $ ( 237.4 )

Balance at July 2, 2023 $ ( 3.2 ) $ ( 19.6 ) $ ( 0.1 ) $ ( 190.6 ) $ ( 213.5 )

Gains (Losses) on Derivative Instruments

At March 31, 2024, the Company had remaining net deferred losses on foreign currency forward contracts, net of tax, of $ 0.6 million in Accumulated other comprehensive earnings (loss) ("AOCE").

These instruments hedge payments related to inventory purchased in the first quarter of 2024 or forecasted to be purchased during the remainder of 2024, intercompany expenses expected to be paid or received during 2024 and cash receipts for sales made at the end of the first quarter of 2024 or forecasted to be made in the remainder of 2024.

At June 30, 2024, the Company had remaining net deferred losses on foreign currency forward contracts, net of tax, of $ 3.1 million in Accumulated other comprehensive earnings (loss) ("AOCE").

These instruments hedge payments related to inventory purchased in the six months ended June 30, 2024 or forecasted to be purchased during the remainder of 2024, intercompany expenses expected to be paid or received during 2024 and cash receipts for sales made at the end of the second quarter of 2024 or forecasted to be made in the remainder of 2024.

These amounts will be reclassified into the Consolidated Statements of Operations upon the sale of the related inventory or recognition of the related sales expenses.

Condensed Notes to Consolidated Financial Statements

(Millions of Dollars and Shares Except Per Share Data)

In addition to foreign currency forward contracts, the Company entered into hedging contracts on future interest payments related to the 3.15 % Notes that were repaid in full in the aggregate principal amount of $ 300.0 million in 2021, and the 5.10 % Notes due 2044.

At the date of debt issuance, these contracts were terminated and the fair value on the date of settlement was deferred in AOCE and is being amortized to interest expense over the life of the related notes using the effective interest rate method.

At March 31, 2024, deferred losses, net of tax of $ 13.8 million related to these instruments remained in AOCE.

For the quarters ended March 31, 2024 and April 2, 2023, previously deferred losses of $ 0.2 million related to these instruments were reclassified from AOCE to net earnings.

Of the net deferred losses included in AOCE at March 31, 2024, the Company expects net losses of approximately $ 0.9 million to be reclassified to the Consolidated Statements of Operations within the next twelve months.

At June 30, 2024, deferred losses, net of tax of $ 13.7 million related to these instruments remained in AOCE.

For each of the three months ended June 30, 2024 and July 2, 2023, previously deferred losses of $ 0.2 million related to these instruments were reclassified from AOCE to net earnings.

For the six months ended June 30, 2024 and July 2, 2023, previously deferred losses of $ 0.4 million and $ 0.4 million, respectively, related to these instruments were reclassified from AOCE to net earnings.

Of the net deferred losses included in AOCE at June 30, 2024, the Company expects net losses of approximately $ 2.4 million to be reclassified to the Consolidated Statements of Operations within the next twelve months.

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

See note 12 for additional discussion on reclassifications from AOCE to earnings.

Condensed Notes to Consolidated Financial Statements

(Millions of Dollars and Shares Except Per Share Data)

(7) Additional Balance Sheet Information

Components of Accrued liabilities for the periods ended March 31, 2024, April 2, 2023 and December 31, 2023 were as follows:

2024 April 2,

Components of Accrued liabilities for the periods ended June 30, 2024, July 2, 2023 and December 31, 2023 were as follows:

2023 December 31, 2023

1 unchanged sentence

Deferred revenue 83.2 117.9 101.6

Lag and cancellation charges 112.0 84.6 118.9

Lag & cancellation charges 76.3 82.6 118.9

Dividends (1)

8 unchanged sentences

Payroll and management incentives 51.8 31.2 85.6

Defined contributions plans 18.9 23.2 29.7

Defined contribution plans 19.2 25.1 29.7

Freight 25.7 29.6 22.9

4 unchanged sentences

Total accrued liabilities $ 1,032.6 $ 1,369.4 $ 1,215.8

Prepaid expenses and other current assets include accrued income, current of $ 127.3 million, $ 423.0 million, and $ 85.6 million as of March 31, 2024, April 2, 2023 and December 31, 2023 , respectively.

Other assets include deferred tax assets of $ 406.3 million, $ 263.5 million, and $ 427.9 million as of March 31, 2024, April 2, 2023 and December 31, 2023 , respectively, and content assets of $ 165.3 million, $ 950.2 million, and $ 162.8 million as of March 31, 2024, April 2, 2023 and December 31, 2023 , respectively.

(1) During the third quarter of 2024, the Board of Directors has declared a quarterly cash dividend of $ 0.70 per common share payable on September 4, 2024, to shareholders of record at the close of business on August 21, 2024.

Prepaid expenses and other current assets include accrued income, current of $ 159.3 million, $ 375.8 million, and $ 85.6 million as of June 30, 2024, July 2, 2023 and December 31, 2023 , respectively.

Other assets include deferred tax assets of $ 397.4 million, $ 264.9 million, and $ 427.9 million as of June 30, 2024, July 2, 2023 and December 31, 2023 , respectively, and content assets of $ 144.7 million , $ 949.1 million , and $ 162.8 million as of June 30, 2024, July 2, 2023 and December 31, 2023 , respectively.

Condensed Notes to Consolidated Financial Statements

(Millions of Dollars and Shares Except Per Share Data)

The carrying costs, which are equal to the outstanding principal amounts, and fair values of the Company's long-term borrowings as of March 31, 2024, April 2, 2023 and December 31, 2023 are as follows:

March 31, 2024 April 2, 2023 December 31, 2023

The carrying costs, which are equal to the outstanding principal amounts, and fair values of the Company's long-term borrowings as of June 30, 2024, July 2, 2023 and December 31, 2023 are as follows:

June 30, 2024 July 2, 2023 December 31, 2023

Value Carrying

12 unchanged sentences

500.0 500.1 — — — —

5.10 % Notes Due 2044

300.0 258.0 300.0 264.6 300.0 271.6

6.60 % Debentures Due 2028

11 unchanged sentences

See note 3 for additional information.

In May 2024, the Company issued an aggregate of $ 500.0 million of senior unsecured debt securities that bear a fixed interest rate of 6.05 % due 2034 (the "2034 Notes").

In connection with the issuance of the 2034 Notes, the 2034 Notes were issued with an original issuance discount of $ 1.4 million and the Company capitalized $ 5.3 million of debt issuance costs.

The original issuance discount and debt issuance costs will be amortized over the term of the 2034 Notes.

Other Financing Arrangements

8 unchanged sentences

The Company or the administering bank may terminate the agreement upon at least 30 days’ written notice.

The amount of obligations confirmed under the program that remain unpaid by the Company were $ 47.7 million, $ 66.0 million and $ 43.3 million as of March 31, 2024, April 2, 2023 and December 31, 2023 , respectively.

The amount of obligations confirmed under the program that remain unpaid by the Company were $ 72.4 million, $ 89.0 million, and $ 43.3 million as of June 30, 2024, July 2, 2023 and December 31, 2023 , respectively.

These obligations are presented within Accounts payable in our Consolidated Balance Sheets.

The activity related to this program is reflected within the operating activities section of the Consolidated Statements of Cash Flows.

Condensed Notes to Consolidated Financial Statements

(Millions of Dollars and Shares Except Per Share Data)

(9) Investments in Productions and Investments in Acquired Content Rights

1 unchanged sentence

These amounts are being amortized to program cost amortization using a model that reflects the consumption of the asset as it is released through various channels including broadcast licenses, theatrical release and home entertainment.

Amounts capitalized are reviewed periodically on an individual title basis and any portion of the unamortized

Condensed Notes to Consolidated Financial Statements

(Millions of Dollars and Shares Except Per Share Data)

amount that appears not to be recoverable from future net revenues is expensed as part of program cost amortization during the period the loss becomes evident.

The Company's unamortized investments in productions and investments in acquired content rights consisted of the following at March 31, 2024, April 2, 2023, and December 31, 2023:

2024 April 2,

Amounts capitalized are reviewed periodically on an individual title basis and any portion of the unamortized amount that appears not to be recoverable from future net revenues is expensed as part of program cost amortization during the period the loss becomes evident.

The Company's unamortized investments in productions and investments in acquired content rights consisted of the following at June 30, 2024, July 2, 2023, and December 31, 2023:

2023 December 31,

12 unchanged sentences

Released, net of amortization 0.3 22.1 16.1

Completed and not released 0.7 — —

In production 4.8 8.7 0.8

4 unchanged sentences

See note 3 for additional information.

The Company recorded $ 8.1 million of program cost amortization related to released programming during the quarter ended March 31, 2024, consisting of the following:

Quarter Ended

2024 April 2,

The Company's program cost amortization related to released programming during the three and six months ended June 30, 2024 and July 2, 2023, consist of the following:

Three Months Ended Six Months Ended

2023 June 30,

Investment in production $ 8.5 $ 123.3 $ 16.6 $ 234.2

1 unchanged sentence

Total program cost amortization $ 8.5 $ 134.4 $ 16.6 $ 256.9

Condensed Notes to Consolidated Financial Statements

(Millions of Dollars and Shares Except Per Share Data)

(10) Income Taxes

2 unchanged sentences

federal, state and local, and international tax authorities in various tax jurisdictions.

Our effective tax rate ("ETR") from continuing operations was 27.1 % for the quarter ended March 31, 2024 and ( 3.4 )% for the quarter ended April 2, 2023.

The following items caused the year-to-date ETR in 2024 to be significantly different from the prior year first quarter ETR:

• During the quarter ended March 31, 2024, the Company recorded a net discrete tax expense of $ 1.8 million, primarily associated with stock-based compensation.

• During the quarter ended April 2, 2023, the Company recorded a net discrete tax expense of $ 3.3 million, primarily associated with stock-based compensation coupled with a pre-tax loss for the quarter.

Condensed Notes to Consolidated Financial Statements

(Millions of Dollars and Shares Except Per Share Data)

Our effective tax rate ("ETR") from continuing operations was 25.1 % for the six months ended June 30, 2024 and ( 3.1 )% for the six months ended July 2, 2023.

The following items caused the year-to-date ETR in 2024 to be significantly different from the 2023 year-to-date ETR:

• During the six months ended June 30, 2024, the Company recorded unfavorable adjustments to the 2023 Loss on Sale of the Film & TV reporting unit of $ 24.4 million with no tax benefit.

The Company also recorded a net discrete tax expense of $ 0.7 million, primarily associated with stock-based compensation.

• During the six months ended July 2, 2023, the Company recorded an impairment of goodwill related to the Film and TV reporting unit of $ 231.2 million with no tax benefit.

The Company also recorded a net discrete tax benefit of $ 8.9 million, exclusive of the goodwill impairment, primarily associated with a tax benefit on the impairment of trade names in the Entertainment segment, offset by discrete tax expense on stock-based compensation and net activity related to uncertain tax positions, primarily interest accruals, combined with the phasing of the Company's income earned throughout 2023.

(11) Fair Value of Financial Instruments

6 unchanged sentences

(Millions of Dollars and Shares Except Per Share Data)

At March 31, 2024, April 2, 2023 and December 31, 2023, the Company had the following assets and liabilities measured at fair value in its Consolidated Balance Sheets (excluding assets for which the fair value is measured using net asset value per share):

At June 30, 2024, July 2, 2023 and December 31, 2023, the Company had the following assets and liabilities measured at fair value in its Consolidated Balance Sheets (excluding assets for which the fair value is measured using net asset value per share):

Fair Value Measurements Using:

1 unchanged sentence

(Level 2) Significant

March 31, 2024

June 30, 2024

Short-term investments $ 483.0 $ 483.0 $ — $ —

Available-for-sale securities 0.8 0.8 — —

$ 0.8 $ 0.8 $ — $ —

Derivatives 3.5 — 3.5 —

3 unchanged sentences

Total liabilities $ 10.2 $ — $ 8.5 $ 1.7

April 2, 2023

Available-for-sale securities $ 1.5 $ 1.5 $ — $ —

$ 1.3 $ 1.3 $ — $ —

Derivatives 4.3 — 4.3 —

5 unchanged sentences

Available-for-sale securities $ 1.1 $ 1.1 $ — $ —

$ 1.1 $ 1.1 $ — $ —

Derivatives 0.7 — 0.7 —

3 unchanged sentences

Total Liabilities $ 5.6 $ — $ 3.9 $ 1.7

(1) Available-for-sale securities include equity securities of one company quoted on an active public market.

The Company's derivatives primarily consist of foreign currency forward and option contracts.

The Company uses current forward rates of the respective foreign currencies to measure the fair value of these contracts.

There were no changes in these valuation techniques during the quarter ended March 31, 2024.

There were no material changes to fair value measurements of the Company's financial instruments which use significant unobservable inputs (Level 3) for both the quarters ended March 31, 2024 and April 2, 2023.

At June 30, 2024, the Company held $ 483.0 million of U.S.

Treasury bills which are classified as held-to maturity and carried at amortized cost, and were recorded in Short-term investments in the Company's Consolidated Balance Sheet.

This amount reflects the proceeds from the Company’s $ 500 million debt offering completed in May 2024, which proceeds, together with available cash, are expected to be used to repay indebtedness of the Company due in November 2024.

Condensed Notes to Consolidated Financial Statements

(Millions of Dollars and Shares Except Per Share Data)

The Company's derivatives primarily consist of foreign currency forward and option contracts.

The Company uses current forward rates of the respective foreign currencies to measure the fair value of these contracts.

There were no changes in these valuation techniques during the three and six months ended June 30, 2024.

There were no material changes to fair value measurements of the Company's financial instruments which use significant unobservable inputs (Level 3) for three and six months ended June 30, 2024 and July 2, 2023.

Other Fair Value Measurements

The Company's financial instruments include cash and cash equivalents, accounts receivable, short-term borrowings, accounts payable and certain Accrued liabilities.

At March 31, 2024, April 2, 2023 and December 31, 2023, the carrying cost of these instruments approximated their fair value.

The Company's financial instruments at March 31, 2024, April 2, 2023 and December 31, 2023 also include certain assets and liabilities measured at fair value, as described above.

At June 30, 2024, July 2, 2023 and December 31, 2023, the carrying cost of these instruments approximated their fair value.

The Company's financial instruments at June 30, 2024, July 2, 2023 and December 31, 2023 also include certain assets and liabilities measured at fair value, as described above.

See note 8 for the fair value of the Company's outstanding debt.

8 unchanged sentences

These instruments hedge a portion of the Company's currency requirements associated with anticipated inventory purchases, product sales and other cross-border transactions, primarily for the remainder of 2024, and into 2025.

At March 31, 2024, April 2, 2023 and December 31, 2023, the notional amounts and fair values of the Company's foreign currency forward contracts designated as cash flow hedging instruments were as follows:

March 31, 2024 April 2, 2023 December 31, 2023

At June 30, 2024, July 2, 2023 and December 31, 2023, the notional amounts and fair values of the Company's foreign currency forward contracts designated as cash flow hedging instruments were as follows:

June 30, 2024 July 2, 2023 December 31, 2023

Hedged transaction Notional

3 unchanged sentences

Sales 110.5 ( 0.7 ) 118.6 0.3 89.7 ( 0.2 )

Production financing and other 30.7 ( 1.1 ) 123.7 0.8 31.7 ( 0.5 )

Royalties and Other 30.5 0.5 143.5 — 31.7 ( 0.5 )

Total $ 313.2 $ 5.1 $ 478.6 $ ( 5.0 ) $ 251.3 $ ( 2.4 )

Condensed Notes to Consolidated Financial Statements

(Millions of Dollars and Shares Except Per Share Data)

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

The fair values of the Company's foreign currency forward contracts designated as cash flow hedges are recorded in the Consolidated Balance Sheets at March 31, 2024, April 2, 2023 and December 31, 2023 as follows:

2024 April 2,

The fair values of the Company's foreign currency forward contracts designated as cash flow hedges are recorded in the Consolidated Balance Sheets at June 30, 2024, July 2, 2023 and December 31, 2023 as follows:

2023 December 31,

4 unchanged sentences

Unrealized gains $ 1.9 $ 0.5 $ —

Unrealized losses ( 0.1 ) ( 0.1 ) —

Net unrealized gains $ 1.8 $ 0.4 $ —

3 unchanged sentences

Net unrealized losses $ ( 3.0 ) $ ( 5.8 ) $ ( 2.8 )

Condensed Notes to Consolidated Financial Statements

(Millions of Dollars and Shares Except Per Share Data)

Net gains (losses) on cash flow hedging activities have been reclassified from other comprehensive earnings (loss) to net earnings for the quarters ended March 31, 2024 and April 2, 2023 as follows:

Quarter Ended

2024 April 2,

Net gains (losses) on cash flow hedging activities have been reclassified from other comprehensive earnings (loss) to net earnings for the three and six months ended June 30, 2024 and July 2, 2023 as follows:

Three Months Ended Six Months Ended

2023 June 30,

Statements of Operations Classification

6 unchanged sentences

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

As of March 31, 2024, April 2, 2023 and December 31, 2023, the total notional amounts of the Company's undesignated derivative instruments were $ 328.6 million, $ 723.3 million and $ 340.5 million, respectively.

At March 31, 2024, April 2, 2023 and December 31, 2023, the fair values of the Company's undesignated derivative financial instruments were recorded in the Consolidated Balance Sheets as follows:

2024 April 2,

As of June 30, 2024, July 2, 2023 and December 31, 2023, the total notional amounts of the Company's undesignated derivative instruments were $ 246.6 million, $ 810.4 million, and $ 340.5 million, respectively.

Condensed Notes to Consolidated Financial Statements

(Millions of Dollars and Shares Except Per Share Data)

At June 30, 2024, July 2, 2023 and December 31, 2023, the fair values of the Company's undesignated derivative financial instruments were recorded in the Consolidated Balance Sheets as follows:

2023 December 31,

7 unchanged sentences

Net unrealized losses $ ( 5.4 ) $ ( 0.2 ) $ ( 1.1 )

The Company recorded net gains of $ 9.1 million and $ 4.4 million on these instruments to Other (income) expense, net for the quarters ended March 31, 2024 and April 2, 2023, 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 contracts relate.

The Company recorded a net loss of $ 4.9 million and a net gain of $ 4.2 million for three and six months ended June 30, 2024, respectively, and net gains of $ 6.8 million and $ 11.2 million, three and six months ended July 2, 2023, respectively, on these instruments to Other (income) expense, net 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 contracts relate.

For additional information related to the Company's derivative financial instruments (see notes 6 and 11).

3 unchanged sentences

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 March 31, 2024, the Company had a remaining balance of $ 1.0 million in severance and other employee expenses related to these programs included within Other accrued liabilities in the Consolidated Balance Sheets, after making payments of $ 1.6 million in the first quarter of 2024.

As of June 30, 2024, the Company had a remaining balance of $ 0.7 million in severance and other employee expenses related to these programs included within Other accrued liabilities in the Consolidated Balance Sheets, after making payments of $ 1.9 million during the six months ended June 30, 2024.

Substantially all of the remaining cash payments related to these programs are expected to be made by the end of 2024.

4 unchanged sentences

Going forward, the Company may implement further cost-saving initiatives under the Program that could result in additional restructuring charges including severance and other employee charges.

As of March 31, 2024, the liability balance associated with the Program related restructuring actions consisted of severance payments recorded within Other accrued liabilities in the Consolidated Balance Sheets as follows:

Quarter Ended

Operational Excellence March 31,

2024 April 2,

As of June 30, 2024, the liability balance associated with the Program related restructuring actions consisted of severance payments recorded within Other accrued liabilities in the Consolidated Balance Sheets as follows:

Six Months Ended

Operational Excellence June 30,

Balance at beginning of the year $ 81.2 $ 84.9

2 unchanged sentences

Ending Balance $ 60.5 $ 58.8

The following table presents the restructuring charges incurred to date under the Program, along with the estimated charges expected to be incurred on approved initiatives under the Programs as of March 31, 2024:

Operational Excellence Total

11 unchanged sentences

Any amounts accrued for these matters are monitored on an ongoing basis and are updated based on new developments or new information as it becomes available for each matter.

Contractual obligations and commercial commitments, as detailed in the Company's 2023 Form 10-K, did not materially change outside of certain payments made in the normal course of business.

Environmental Liabilities - The Company monitors for any estimated environmental contingencies related to its current physical locations and former owned or leased facilities in which it is responsible for environmental matters.

The Company has

Condensed Notes to Consolidated Financial Statements

(Millions of Dollars and Shares Except Per Share Data)

a $ 31.1 million environmental liability related to a previously owned manufacturing facility (environmental liability assumed as part of a historical acquisition), in which the Company is solely responsible for the mitigation and remediation activities.

Contractual obligations and commercial commitments, as detailed in the Company's 2023 Form 10-K, did not materially change outside of certain payments made in the normal course of business, except as disclosed above and as disclosed in note 8.

(15) Segment Reporting

Hasbro is a toy and game company with a broad portfolio of brands and entertainment content spanning toys, games, licensed products ranging from traditional to digital, as well as film and television entertainment.

Hasbro is a game, toy, and intellectual property company with a broad portfolio of brands and entertainment content spanning toys, games, licensed products ranging from traditional to digital, as well as film and television entertainment.

The Company's reportable segments are Consumer Products, Wizards of the Coast and Digital Gaming, Entertainment and Corporate and Other.

8 unchanged sentences

(Millions of Dollars and Shares Except Per Share Data)

Information by segment and a reconciliation to reported amounts for the quarters ended March 31, 2024 and April 2, 2023 are as follows:

Quarter Ended

2024 April 2,

Information by segment and a reconciliation to reported amounts for the three and six months ended June 30, 2024 and July 2, 2023 are as follows:

Three Months Ended Six Months Ended

2023 June 30,

Net revenues:

4 unchanged sentences

Total net revenues $ 995.3 $ 1,210.0 $ 1,752.6 $ 2,211.0

$ 757.3 $ 1,001.0

Intercompany revenues:

4 unchanged sentences

Total intercompany revenues:

$ — $ — $ — $ —

Operating profit (loss):

1 unchanged sentence

Wizards of the Coast and Digital Gaming 247.1 142.3 369.9 219.1

Entertainment (a) 5.8 ( 8.7 )

Corporate and Other (a) (c) 34.5 ( 4.2 )

Total Operating profit 116.2 17.9

Entertainment (3) ( 1.0 ) ( 324.2 ) 4.8 ( 332.9 )

Corporate and Other (3) (4) ( 24.7 ) ( 18.1 ) 9.8 ( 22.3 )

Total Operating profit (loss) 212.1 ( 188.6 ) 328.3 ( 170.7 )

Interest expense 43.0 46.6 81.5 92.9

2 unchanged sentences

Earnings (loss) before income taxes $ 182.9 $ ( 227.9 ) $ 263.9 $ ( 248.9 )

(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.

(1) Amounts represent revenues from transactions with other operating segments that are included in the operating profit (loss) of the segment.

(2) During the three months ended June 30, 2024, the Company recorded two non-recurring prior year adjustments:

(i) a $ 31.1 million expense related to historical environmental exposures, and (ii) a $ 26.7 million benefit related to over-accrual of vendor commitment liabilities.

See Note 1 for further information.

Both of these originally related to the Consumer Products segment;

however, because the non-recurring nature of these adjustments are related to historical periods and not associated with the on-going future operations of the Consumer Products segment, the Company recorded the error corrections within the Corporate and Other segment.

(3) 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 Corporate and Other expenses, related to these assets are made to the individual operating segments at the beginning of the year based on budgeted amounts.

2 unchanged sentences

Corporate and Other also includes the elimination of inter-company balance sheet amounts.

(b) Amounts represent revenues from transactions with other operating segments that are included in the operating profit (loss) of the segment.

(c) Corporate and Other Operating profit (loss) includes Operational Excellence related transformation office and consulting fees of $ 5.2 million and $ 10.6 million, for the quarters ended March 31, 2024 and April 2, 2023, respectively, which are recorded within Selling, distribution and administration costs within the Consolidated Statements of Operations.

(4) Corporate and Other Operating profit (loss) includes Operational Excellence related transformation office and consulting fees of $ 7.3 million and $ 12.5 million for the three and six months ended June 30, 2024, respectively, and $ 10.4 million and $ 21.0 million for the three and six months ended July 2, 2023, respectively, which are recorded within Selling, distribution and administration costs within the Consolidated Statements of Operations.

Third party consultants were engaged to assist the Company in performing a comprehensive review of operations and developing a transformation plan designed to support the organization in identifying, realizing, and capturing savings through the identification of organizational initiatives intended to create efficiencies and improve business processes and operations.

The consultants assisted in providing benchmark data and are currently assisting with the design of an improved operating model and supply chain function.

The Company expects this consulting assistance to conclude within 2024 in line with the planning stages of the final components of the transformation plan.

The Company expects this consulting assistance to conclude within 2024 in line with the transformation plans.

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-Q

Item 1. Financial Statements