What changed in this filing

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Item 8. Financial Statements and Supplementary Data

2025-02-27 compared with 2024-02-28 · 669 added, 735 removed, 1021 unchanged (58% of the section changed)

Financial Statements and Supplementary Data.

For the Year Ended December 29, 2024

Report of Independent Registered Public Accounting Firm

Consolidated Balance Sheets

Consolidated Statements of Operations

Consolidated Statements of Comprehensive Earnings (Loss)

Consolidated Statements of Cash Flows

Consolidated Statements of Shareholders’ Equity and Redeemable Noncontrolling Interests

Notes to Consolidated Financial Statements

Summary of Significant Accounting P olicies

Revenue Recognition

Sale of Entertainment One Film and TV Business

Earnings Per Common Share

Other Comprehensive Earnings (Loss)

Property, Plant and Equipment

Goodwill and Intangible Assets

Equity Method Investment

Investments in Productions and Investments in Acquired Content Rights

Additional Balance Sheet Information

Long-Term Debt and Other Financing

Capital Stock

Fair Value of Financial Instruments

Share-Based Awards

Retirement Plans

Derivative Financial Instruments

Restructuring Actions

Commitments and Contingencies

Segment Reporting

Report of Independent Registered Public Accounting Firm

To the Shareholders and Board of Directors

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We have audited the accompanying consolidated balance sheets of Hasbro, Inc.

and subsidiaries (the Company) as of December 31, 2023 and December 25, 2022, the related consolidated statements of operations, comprehensive earnings, shareholders’ equity and redeemable noncontrolling interests, and cash flows for each of the years in the three-year period ended December 31, 2023, and the related notes and financial statement schedule II - valuation and qualifying accounts (collectively, the consolidated financial statements).

and subsidiaries (the Company) as of December 29, 2024 and December 31, 2023, the related consolidated statements of operations, comprehensive earnings (loss), shareholders’ equity and redeemable noncontrolling interests, and cash flows for each of the years in the three-year period ended December 29, 2024, and the related notes (collectively, the consolidated financial statements).

In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company as of December 29, 2024 and December 31, 2023, and the results of its operations and its cash flows for each of the years in the three-year period ended December 29, 2024, in conformity with U.S.

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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.

Fair value of the Family Brands reporting unit

As discussed in Note 6 to the consolidated financial statements, the goodwill balance at December 31, 2023 was $2,279.2 million, a portion of which related to the Family Brands reporting unit.

The Company performs an annual goodwill impairment assessment and, if an event occurs or circumstances change that indicate that the carrying value of a reporting unit may not be recoverable, the Company will perform an interim impairment test.

During the fourth quarter of 2023, the Company determined that a triggering event occurred following declines in the Company's financial forecast for the Family Brands reporting unit.

As such, the Company recognized an impairment charge of $960.0 million for the Family Brands reporting unit.

We identified the evaluation of the fair value of the Family Brands reporting unit as a critical audit matter.

A high degree of subjective auditor judgment was required to evaluate the forecasted revenue, including the terminal

growth rate, and the discount rate used in the income approach, and the EBITDA market multiple assumption used in the market approach used to estimate fair value for the reporting unit.

The assessment of the forecasted revenue assumption was subjective as it is based largely on the outcome of uncertain future events.

Additionally, the estimate of fair value was sensitive to changes in the discount rate and EBITDA market multiple assumptions.

In addition, specialized skills and knowledge were required to assess the terminal growth rate, discount rate, and EBITDA market multiple assumptions.

Evaluation of the sufficiency of audit evidence over royalty revenues and related contract assets and liabilities

As discussed in Note 1 to the consolidated financial statements, the Company enters into contracts to license its intellectual property wherein the licensees pay either a sales-based or usage-based royalty, or a combination of both, for use of the intellectual property.

The Company records the sales-based or usage-based royalty revenues at the occurrence of the licensees’ subsequent sale or usage.

As discussed in Note 2 to the consolidated financial statements, the Company records contract assets related to minimum guarantees being recorded in advance of the contractual invoicing, which are recognized ratably over the terms of the respective license periods.

The Company may receive advanced royalty payments from licensees in advance of a licensees’ subsequent sale or usage for which the Company records the deferred revenues as contract liabilities.

As of December 29, 2024, the Company recognized $4,135.5 million of net revenues, a portion of which related to royalty revenues.

At December 29, 2024, the Company recorded contract assets and liabilities balances of $241.4 million and $236.8 million, respectively, a portion of each which related to licenses.

We identified the evaluation of the sufficiency of audit evidence over royalty revenues and the related contract assets and liabilities as a critical audit matter.

Subjective auditor judgment was required to evaluate the nature and extent of procedures performed over royalty revenues and the related contract assets and liabilities because the Company uses a combination of manual and automated procedures to initiate, process, and record these transactions, including multiple information technology (IT) applications.

IT professionals with specialized skills and knowledge were also required to evaluate the IT environment in the royalty revenue process.

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 Company’s goodwill impairment assessment process.

This included controls related to the development of the forecasted revenue, discount rate, and EBITDA market multiple assumptions used to estimate fair value for the Family Brands reporting unit.

We evaluated the reasonableness of forecasted revenue for the reporting unit 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 terminal growth rate by comparing it to publicly available market data

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

• evaluating the appropriateness of the selected guideline public companies by researching the selected guideline public companies and reviewing the business description

• evaluating the EBITDA market multiple assumption by comparing to EBITDA market multiple ranges developed using publicly available market data for the selected guideline public companies

• developing an independent estimate of the fair value of the reporting unit using the income and market approaches, which was then compared to the Company’s fair value estimate.

We applied auditor judgment to determine the nature and extent of procedures to be performed over royalty revenues and the related contract assets and liabilities.

We evaluated the design and tested the operating effectiveness of certain internal controls over the Company’s royalty revenues and related contract assets and liabilities process, including certain manual and automated controls related to initiating, processing, and recording of these transactions.

We involved IT professionals with specialized skills and knowledge, who assisted in testing certain general IT controls and application controls used by the Company to process and record royalty revenues.

On a sample basis, we tested royalty revenue transactions by comparing the recorded amounts of royalty revenues and the related contract assets and liabilities to underlying documentation and third-party evidence, including customer contracts and sales and usage statements.

We evaluated the overall sufficiency of audit evidence obtained by assessing the results of procedures performed, including the appropriateness of the nature and extent of such evidence.

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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Other 998.6 1,016.3

Total other assets 3,728.7 5,874.0

Total assets $ 6,340.3 $ 6,540.9

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Current liabilities

Short-term borrowings $ — 142.4

Current portion of long-term debt $ — $ 500.0

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Total liabilities 5,155.3 5,453.9

Commitments and contingencies (Note 20)

Shareholders’ equity

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Amortization of intangible assets 68.3 83.0 105.3

Selling, distribution and administration 1,480.4 1,666.1 1,432.7

Impairment of goodwill — 1,191.2 —

Loss on disposal of business 37.4 539.0 22.1

539.0 22.1 108.8

Selling, distribution and administration 1,213.2 1,480.4 1,666.1

Total costs and expenses 3,445.5 6,542.1 5,449.0

Operating profit (loss) 690.0 ( 1,538.8 ) 407.7

( 1,538.8 ) 407.7 763.3

Non-operating expense (income):

Non-operating expense

Interest expense 171.2 186.3 171.0

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Total non-operating expense, net 193.0 170.3 146.2

170.3 146.2 181.4

Earnings (loss) before income taxes 497.0 ( 1,709.1 ) 261.5

( 1,709.1 ) 261.5 581.9

Income tax (benefit) expense

( 221.3 ) 58.5 146.6

Income tax expense (benefit) 102.6 ( 221.3 ) 58.5

Net earnings (loss) 394.4 ( 1,487.8 ) 203.0

( 1,487.8 ) 203.0 435.3

Net earnings (loss) attributable to noncontrolling interests 8.8 1.5 ( 0.5 )

1.5 ( 0.5 ) 6.6

Net earnings (loss) attributable to Hasbro, Inc.

$ 385.6 $ ( 1,489.3 ) $ 203.5

Per common share

Net earnings (loss) attributable to Hasbro, Inc.

Net earnings (loss) per common share:

Basic $ 2.77 $ ( 10.73 ) $ 1.47

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AND SUBSIDIARIES

Consolidated Statements of Comprehensive Earnings

Consolidated Statements of Comprehensive Earnings (Loss)

Fiscal Years Ended in December

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$ 394.4 $ ( 1,487.8 ) $ 203.0

Other comprehensive earnings (loss):

Foreign currency translation adjustments, net of tax 59.4 ( 45.4 ) ( 61.9 )

Other comprehensive (loss) earnings:

Foreign currency translation adjustments ( 48.8 ) 59.4 ( 45.4 )

Unrealized holding losses on available-for-sale securities, net of tax — — ( 0.3 )

— ( 0.3 ) ( 0.1 )

Net (losses) gains on cash flow hedging activities, net of tax

( 8.6 ) 10.2 13.5

Net gains (losses) on cash flow hedging activities, net of tax 7.3 ( 8.6 ) 10.2

Changes in unrecognized pension amounts, net of tax ( 2.9 ) ( 0.9 ) 30.8

Reclassifications to earnings, net of tax:

Net losses (gains) on cash flow hedging activities

3.8 ( 16.2 ) 2.6

Net gains (losses) on hedging activities 0.4 3.8 ( 16.2 )

Amortization of unrecognized pension and postretirement amounts ( 0.9 ) ( 0.3 ) 1.3

Other comprehensive earnings (loss), net of tax

53.4 ( 19.6 ) ( 40.3 )

Other comprehensive (loss) earnings, net of tax ( 44.9 ) 53.4 ( 19.6 )

Total comprehensive earnings (loss), net of tax

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Impairment of intangibles and production assets — 116.0 281.0

Loss on Discovery investment — — 74.1

Fair value adjustment on Discovery Option — — ( 20.1 )

Loss on Discovery Family Channel investment 78.2 — —

Inventory obsolescence

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

Decrease (increase) in accounts receivable 15.5 339.6 ( 159.5 )

Decrease in accounts receivable 77.3 15.5 339.6

Decrease (increase) in inventories 22.1 257.1 ( 184.7 )

257.1 ( 184.7 ) ( 182.3 )

Decrease (increase) in prepaid expenses and other current assets 34.7 17.0 ( 30.6 )

Program spend, net ( 408.0 ) ( 767.7 ) ( 697.3 )

(Decrease) increase in accounts payable and accrued liabilities

( 109.7 ) ( 278.7 ) 313.2

Decrease in prepaid expenses and other current assets 58.9 34.7 17.0

Program production costs ( 25.3 ) ( 408.0 ) ( 767.7 )

Decrease in accounts payable and accrued liabilities ( 78.8 ) ( 109.7 ) ( 278.7 )

Change in net deemed repatriation tax ( 45.9 ) ( 34.4 ) ( 18.4 )

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Additions to property, plant and equipment ( 87.2 ) ( 135.5 ) ( 128.2 )

Investments and acquisitions, net of cash acquired — ( 146.3 ) —

Proceeds from sale of business, net of cash transferred

329.6 — 378.5

Additions to software development ( 110.3 ) ( 73.8 ) ( 46.0 )

Acquisitions, net of cash acquired — — ( 146.3 )

Net (settlement) proceeds from sale of business, net of cash transferred ( 12.0 ) 329.6 —

Purchase of investments ( 571.0 ) — —

Maturity of investments 583.0 — —

Other ( 6.2 ) ( 2.7 ) 7.5

Net cash provided (utilized) by investing activities 117.6 ( 313.0 ) 242.0

Net cash (utilized) provided by investing activities ( 203.7 ) 117.6 ( 313.0 )

Cash flows from financing activities

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Payments related to tax withholding for share-based compensation ( 14.4 ) ( 16.8 ) ( 24.0 )

Debt extinguishment costs — — ( 9.1 )

Payment of financing costs ( 5.3 ) — —

Other ( 12.8 ) ( 14.7 ) ( 32.7 )

Net cash utilized by financing activities ( 497.5 ) ( 818.1 ) ( 553.3 )

( 818.1 ) ( 553.3 ) ( 1,459.8 )

Effect of exchange rate changes on cash 3.4 7.2 ( 12.7 )

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Balance, December 26, 2021 $ 110.1 $ 2,428.0 $ 4,257.8 $ ( 235.3 ) $ ( 3,534.7 ) $ 37.2 $ 3,063.1 $ 23.9

Net earnings attributable to Hasbro, Inc.

Net earnings (loss) attributable to Hasbro, Inc.

— — 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

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

Purchases of common stock — — — — ( 125.0 ) — ( 125.0 ) —

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

Dividends declared — 1.9 ( 389.9 ) — — — ( 388.0 ) —

Distributions paid to noncontrolling owners and other foreign exchange — 2.6 — — — ( 6.1 ) ( 3.5 ) ( 3.8 )

Distribution 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 $ —

Net earnings attributable to Hasbro, Inc.

Net earnings (loss) attributable to Hasbro, Inc.

— — ( 1,489.3 ) — — — ( 1,489.3 ) —

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— — — — — 1.5 1.5 —

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

Other comprehensive loss — — — ( 19.6 ) — — ( 19.6 ) —

Other comprehensive (loss) earnings — — — 53.4 — — 53.4 —

Stock-based compensation transactions — ( 23.1 ) — — 6.2 — ( 16.9 ) —

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Distributions paid to noncontrolling owners and other foreign exchange — — — — — ( 5.5 ) ( 5.5 ) —

Purchase of common stock

— — — — ( 125.0 ) — ( 125.0 ) —

Buyout of redeemable noncontrolling interest

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Balance, December 31, 2023 $ 110.1 $ 2,590.6 $ 2,188.4 $ ( 201.5 ) $ ( 3,625.7 ) $ 25.1 $ 1,087.0 $ —

Net loss attributable to Hasbro, Inc.

— — ( 1,489.3 ) — — — ( 1,489.3 ) —

Net earnings attributable to noncontrolling interests

— — — — — 1.5 1.5 —

Other comprehensive earnings

Net earnings (loss) attributable to Hasbro, Inc.

— — 385.6 — — — 385.6 —

Net earnings (loss) attributable to noncontrolling interests — — — — — 8.8 8.8 —

Other comprehensive (loss) earnings — — — ( 44.9 ) — — ( 44.9 ) —

Stock-based compensation transactions — ( 14.7 ) — — 11.6 — ( 3.1 ) —

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Distributions paid to noncontrolling owners and other foreign exchange — — — — — ( 6.5 ) ( 6.5 ) —

Buyout of redeemable noncontrolling interest — ( 2.1 ) — — — — ( 2.1 ) —

Balance, December 29, 2024 $ 110.1 $ 2,632.2 $ 2,274.2 $ ( 246.4 ) $ ( 3,612.5 ) $ 27.4 $ 1,185.0 $ —

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(1) Summary of Significant Accounting Policies

Preparation of Consolidated Financial Statements

The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and notes thereto.

Actual results could differ from those estimates.

Certain reclassifications have been made to the prior periods’ consolidated financial statements in order to conform to the current period presentation.

These reclassifications did not impact any prior amounts of net earnings (loss) or cash flows.

Hasbro, Inc., a Rhode Island corporation, and its consolidated subsidiaries are referred to in these consolidated financial statements and notes as “we,” “our,” “us,” the “Company” or “Hasbro.”

The Company's reportable segments consist of:

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

Corporate and Other, which does not meet the criteria to be an operating segment, provides management and administrative services to the Company's principal reporting segments.

Principles of Consolidation:

The consolidated financial statements include the accounts of Hasbro, Inc.

and all majority-owned subsidiaries (“Hasbro” or the “Company”).

and all majority-owned subsidiaries.

Investments representing 20% to 50% ownership interests in other companies are accounted for using the equity method.

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All intercompany balances and transactions have been eliminated.

Basis of Presentation:

Hasbro’s fiscal year ends on the last Sunday in December.

The fiscal year ended December 31, 2023 was a fifty-three week period.

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

Strategy Review and Operational Excellence

In October 2022, following a several months long review of our business, the Company announced a new strategic plan, a consumer-centric framework for bringing compelling and expansive brand experiences to audiences around the world.

During the review, with the assistance of a third-party consultant, the Company identified opportunities to focus and scale its business, enhance operational excellence, including through specialized organizational programs and supply chain transformation, to drive growth and profit and enhance shareholder value.

The Company is increasing strategic investment in its most valuable and profitable franchises across toys, games, licensing and entertainment, and exiting certain non-core aspects of the business.

The fiscal years ended December 29, 2024 and December 25, 2022 were fifty-two week periods.

The fiscal years ended December 31, 2023 was a fifty-three week period.

Use of Estimates:

The consolidated financial statements have been prepared in accordance with U.S.

generally accepted accounting principles ("GAAP") and necessarily include amounts based on estimates and assumptions by management.

Actual results could differ from those amounts.

Significant estimates include amounts for rebates, pension and other post-employment benefits, income taxes, litigation, valuation of goodwill and other long-term assets, contingent consideration liabilities, financial instruments and inventory and accounts receivable exposures.

Sale of Non-core Entertainment One Film and TV Business:

On December 27, 2023, the Company completed the sale of its Entertainment One film and television business ("eOne Film and TV") to Lions Gate Entertainment Corp., Lions Gate Entertainment Inc.

and Lions Gate International Motion Pictures S.à.r.l (collectively "Lionsgate"), pursuant to the terms of an Equity Purchase Agreement dated August 3, 2023, among Hasbro and Lionsgate.

Lionsgate acquired eOne Film and TV for a purchase price of $ 375.0 million in cash, subject to certain purchase price adjustments plus the assumption by Lionsgate of production financing loans.

and Lions Gate International Motion Pictures S.à.r.l (collectively "Lionsgate"), pursuant to the terms of an Equity Purchase Agreement dated August 3, 2023.

See Note 3 for additional information.

Brand Portfolio Realignment

Effective for the first quarter 2023, we realigned our brand portfolios to correspond with the evolution of our strategy.

We are focusing on fewer, bigger, more profitable brands that showcase our leadership in preschool toys, action figures and accessories, games, arts & crafts, and outdoor action brands.

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

Franchise Brands - A refreshed group of our most financially significant brands which we consider to have the greatest long-term potential including MAGIC:

THE GATHERING, Hasbro Gaming, PLAY-DOH, NERF, TRANSFORMERS, DUNGEONS & DRAGONS and PEPPA PIG.

Partner Brands - The Partner Brands category includes those brands we license from other parties such as Disney's STAR WARS and MARVEL brands as well as other partners, for which we develop toy and game products, with a focus on those key Partner Brands that give us the largest growth potential and where we can lead and innovate in the category.

AND SUBSIDIARIES

Notes to Consolidated Financial Statements — (Continued)

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

Non-Hasbro Branded Film & TV - The Non-Hasbro Branded Film & TV category includes non-Hasbro-branded film, TV and other entertainment related revenues, the majority of which are associated with the Company's non-core eOne Film and TV business sold to Lionsgate.

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

Other Adjustments:

During 2024, the Company corrected prior period errors associated with 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 (recorded in Selling, distribution and administration on the Consolidated Statements of Operations), a $ 31.1 million expense and associated liability related to historical environmental exposures in accordance with Accounting Standard Codification ("ASC") 410, Asset Retirement and Environmental Obligations (recorded in Selling, distribution and administration on the Consolidated Statements of Operations), and a $ 26.7 million benefit related to an over-accrual of vendor commitment liabilities (recorded in Cost of sales on the Consolidated Statements of Operations).

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

Cash, Cash Equivalents and Restricted Cash:

Cash and cash equivalents include all cash balances and highly liquid investments purchased with an initial maturity to the Company of three months or less.

Marketable Securities

Included in marketable securities is common stock in a public company arising from a business relationship.

This type of investment is also included in Prepaid expenses and other current assets in the accompanying Consolidated Balance Sheets.

Accounts Receivable and Allowance for Credit Losses:

Accounts receivable represent amounts due from customers in the ordinary course of business and are recorded at the invoiced amount and do not bear interest.

Receivables are presented net of the allowance for credit losses in the Company’s accompanying Consolidated Balance Sheets.

Credit is granted to customers predominantly on an unsecured basis.

Credit limits and payment terms are established based on extensive evaluations made on an ongoing basis throughout the fiscal year with regard to the financial performance, cash generation, financing availability and liquidity status of each customer.

The majority of customers are formally reviewed at least annually;

more frequent reviews are performed based on the customer’s financial condition and the level of credit being extended.

For customers on credit who are experiencing financial difficulties, management performs additional financial analyses before shipping orders.

The Company uses a variety of financial transactions, based on availability and cost, to increase the collectability of certain of its accounts, including letters of credit, credit insurance, and requiring cash in advance of shipping.

The Company records an allowance for credit losses for accounts receivable based on management’s expected credit losses.

Management's estimate of expected credit losses is based on its assessment of the business environment, customers’ financial condition, historical collection experience, accounts receivable aging and customer disputes.

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

The Company evaluates the collectability of its accounts receivable and determines the appropriate allowance for credit losses based on a combination of factors such as assessment of the business environment, customers’ financial condition, historical collection experience, accounts receivable aging, customer disputes and future expected losses.

See Note 2, Revenue Recognition, for additional information related to the allowance for credit losses.

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

Based upon a consideration of quantities on hand, actual and projected sales volume, anticipated product selling price and product lines planned to be discontinued, slow-moving and obsolete inventory is written down to its estimated net realizable value.

AND SUBSIDIARIES

Notes to Consolidated Financial Statements — (Continued)

At both December 29, 2024 and December 31, 2023, substantially all inventory is comprised of finished goods.

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For the Company’s equity method investments, only the Company’s investment in and amounts due to and from the equity method investment are included in the Consolidated Balance Sheets and only the Company’s share of the equity method investment’s earnings (losses) is included in Other expense (income), net in the Consolidated Statements of Operations.

Dividends, cash distributions, loans or other cash received from the equity method investment, additional cash investments, loan repayments or other cash paid to the investee are included in the Consolidated Statements of Cash Flows.

Dividends, cash distributions, loans or other cash received from the equity method investment, additional cash investments or other cash paid to the investee are included in the Consolidated Statements of Cash Flows.

The Company reviews its equity method investments for impairment on a periodic basis.

If it has been determined that the fair value of the equity investment is less than its related carrying value and that this decline is other-than-temporary, the carrying value of the investment is adjusted downward to reflect these declines in value.

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

AND SUBSIDIARIES

Notes to Consolidated Financial Statements — (Continued)

The Company and Discovery are also party to an option agreement with respect to the Network.

The Company has recorded a liability for this option agreement at fair value which is included in Other liabilities in the Consolidated Balance Sheets.

Unrealized gains and losses on this option are recognized in Other expense (income), net in the Consolidated Statements of Operations as they occur.

See notes 7 and 14 for additional information.

See Note 8, Equity Method Investment, for additional information.

Noncontrolling Interests:

The financial results and position of the noncontrolling interests acquired through the acquisition of eOne are included in their entirety in the Company’s Consolidated Statements of Operations and Consolidated Balance Sheets beginning with the first quarter of 2020.

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 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.

The Company's remaining non-redeemable noncontrolling interests as of December 31, 2023 is shown below.

The financial results and position of the noncontrolling interests acquired through the acquisition of eOne Film and TV in 2019 are included in their entirety in the Company’s Consolidated Statements of Operations and Consolidated Balance Sheets.

The Company's remaining non-redeemable noncontrolling interests as of December 29, 2024 and December 31, 2023 is shown below.

Name Country of Incorporation Ownership Interest Proportion Held Principal Activity

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Property, Plant and Equipment, Net:

Property, plant and equipment are stated at cost less accumulated depreciation.

Property, plant and equipment, net are stated at cost less accumulated depreciation.

Depreciation is computed using accelerated and straight-line methods to depreciate the cost of property, plant and equipment over their estimated useful lives.

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The Company generally owns all tools, dies and molds related to its products.

See Note 6, Property, Plant and Equipment, for additional information.

Property, plant and equipment, net is reviewed for impairment whenever events or circumstances indicate the carrying value may not be recoverable.

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Furthermore, assets to be disposed of are carried at the lower of the net book value or their estimated fair value less disposal costs.

Software Development Costs:

Capitalized software development costs include direct costs incurred for both internally developed titles as well as payments to third-party software developers under development agreements.

As of December 29, 2024, $ 264.4 million of software development costs are capitalized within Other assets.

Approximately $ 154.3 million of capitalized software development costs as of December 31, 2023 were reclassified from Property, plant and equipment, net into Other long-term assets to conform to current year presentation.

Substantially all of our capitalized software development costs are included within the Wizards of the Coast and Digital Gaming segment.

We capitalize internal software development costs (including specifically identifiable payroll expense and incentive compensation costs, as well as third-party production and other content costs), subsequent to establishing technological feasibility of a software title.

Technological feasibility of a product includes the completion of both technical design documentation and game design documentation.

Management exercises judgement to assess when technological feasibility has been established.

For products where proven technology exists, this may occur early in the development cycle.

Technological feasibility is evaluated on a product-by-product basis.

Prior to establishing technological feasibility of a product, any costs incurred by third-party developers are recorded as product development expenses.

During the years ended December 29, 2024, December 31, 2023 and December 25, 2022, approximately $ 66.7 million, $ 70.1 million, and $ 79.1 million, respectively, of research and development costs were recorded within product development expense related to software development.

AND SUBSIDIARIES

Notes to Consolidated Financial Statements — (Continued)

We enter into agreements with third-party developers that require us to make payments for game development and production services.

In exchange for our payments, we receive the exclusive publishing and distribution rights to the finished game title.

Subsequent to establishing technological feasibility of a product, we capitalize all development and production service payments to third-party developers as software development costs and licenses within Other assets.

We typically enter into agreements with third-party developers after completing the technical design documentation for our products and therefore record the design costs leading up to a signed development contract as product development expense.

When we contract with third-party developers, we generally select those that have proven technology and experience in the genre of the software being developed, which often allows for the establishment of technological feasibility early in the development cycle.

Amortization of capitalized software development costs and licenses commence when a product is available for general release and is recorded on a title-by-title basis in cost of sales.

For capitalized software development costs, annual amortization is calculated using (1) the proportion of current year revenue to the total revenue expected to be recorded over the life of the title or (2) the straight-line method over the remaining estimated life of the title, whichever is greater.

As of December 29, 2024, none of the titles for which we have capitalized software development costs have begun amortization.

We evaluate the future recoverability of capitalized software development costs on a quarterly basis.

For products that have been released to the general public, recoverability is primarily assessed based on the title's actual performance.

For products that are scheduled to be released in the future, recoverability is evaluated based on the expected performance of the specific products to which the cost relates.

We use a number of criteria in the evaluation of expected product performance, including historical performance of comparable products developed with comparable technology, market performance of comparable titles, orders for the product prior to its release, general market conditions, and past performance of the franchise.

When we determine that capitalized costs of the title are unlikely to be recovered by product sales, an impairment of software development costs capitalized is charged in the period in which such determination is made.

During the year ended December 29, 2024, we recorded $ 24.4 million of impairment charges to Selling, distribution, and administration expense as a result of the cancellation of two unreleased titles.

Goodwill and Other Intangible Assets, Net:

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

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Notes to Consolidated Financial Statements — (Continued)

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's intangible assets having definite lives are being amortized over periods ranging from one to thirteen 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.

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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.

The Company's reporting units are determined in accordance with the provisions of Accounting Standards Codification (“ASC”) 350, “Intangibles - Goodwill and Other (Topic 350).” The Company performs its annual impairment testing of goodwill and definite-lived intangible assets during the fourth quarter of each year.

See note 6 for additional information on the results of the Company’s impairment tests.

The Company's reporting units are determined in accordance with the provisions of ASC 350, “Intangibles - Goodwill and Other (Topic 350).” The Company performs its annual impairment testing of goodwill and definite-lived intangible assets during the fourth quarter of each year.

See Note 7, Goodwill and Intangible Assets, for additional information on the results of the Company’s impairment tests.

Financial Instruments:

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As of December 29, 2024, the carrying cost of these instruments approximated their fair value.

The Company’s financial instruments as of December 31, 2023 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).

Production Financing

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

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 outstanding.

All of the Company's individual production loan and the senior revolving credit facility dedicated to production financing were assumed by Lionsgate effective upon the closing of the sale of the eOne Film and TV business in the fourth quarter of 2023.

For further details, see notes 3 and 11.

Revenue Recognition

Revenue is recognized when control of the promised goods, intellectual property or production is transferred to the customers or licensees, in an amount that reflects the consideration the Company expects to be entitled to in exchange for transferring those goods.

The Company accounts for a contract when it has approval and commitment from both parties, the rights of the parties are identified, payment terms are identified, the contract has commercial substance, and collectability of consideration is probable.

The Company’s financial instruments as of December 29, 2024 also include long-term borrowings (see Note 11, Long-Term Debt and Other Financing, for carrying cost and related

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Notes to Consolidated Financial Statements — (Continued)

fair values) as well as certain assets and liabilities measured at fair value (see Note 14, Fair Value of Financial Instruments and Note 18, Derivative Financial Instruments).

Revenue Recognition:

Revenue is recognized when control of the promised goods is transferred to the customers or licensees, in an amount that reflects the consideration the Company expects to be entitled to in exchange for transferring those goods.

The majority of the Company’s revenues are derived from sales of finished products to customers.

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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.

The Company does not charge a fee to the end users for the download of the

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Notes to Consolidated Financial Statements — (Continued)

games or the ability to play the games.

The end users make in-application purchases of virtual currencies, with such purchased virtual currencies to be used in 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 ratably within six months of purchase, while revenue received from subscription services is

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Notes to Consolidated Financial Statements — (Continued)

recognized ratably over the subscription term.

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

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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 live action movies.

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

In addition, the Company enters into minimum guarantee royalty arrangements related to the purchase of film and television rights for content to be delivered in the future.

In addition, the Company enters into minimum guaranteed royalty arrangements related to the purchase of film and television rights for content to be delivered in the future.

These agreements may call for payment in advance or future payment of minimum guaranteed amounts.

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Shipping and Handling:

Hasbro expenses costs related to the shipment and handling of goods to customers as incurred.

The Company expenses costs related to the shipment and handling of goods to customers as incurred.

For 2024, 2023 and 2022, these costs were $ 199.2 million, $ 225.6 million and $ 247.7 million, respectively, and are included in selling, distribution and administration expenses.

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Operating lease assets represent the Company’s right to use the underlying asset for the lease term and lease liabilities represent an obligation to make lease payments according to the terms of the lease.

Operating lease assets and liabilities are recognized at the inception of the lease agreement based on the estimated present value

Operating lease assets and liabilities are recognized at the inception of the lease agreement based on the estimated present value of lease payments over the lease term, using our incremental borrowing rate based on information available on the

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Notes to Consolidated Financial Statements — (Continued)

of lease payments over the lease term, using our incremental borrowing rate based on information available on the lease commencement date.

lease commencement date.

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

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Lease expense under such leases is recorded straight line over the life of the lease.

For further details on the Company's operating leases, see note 17.

See Note 17, Leases, for further details on the Company's operating leases.

Income Taxes:

Hasbro uses the asset and liability approach for financial accounting and reporting of income taxes.

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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 31, 2023, the Company recorded a valuation allowance of $ 432.0 million primarily related to the U.S.

capital loss resulting from the sale of the Company’s eOne Film and TV business during the year.

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.

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

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Notes to Consolidated Financial Statements — (Continued)

Pension Plans, Postretirement and Postemployment Benefits:

Pension expense and related amounts in the Consolidated Balance Sheets are based on actuarial computations of current and future benefits.

The assumed discount rate for pension and postretirement benefit plans is determined by considering yield curves constructed of a large population of high-quality corporate bonds and reflects the matching of the plans' liability cash flows to the yield curves.

Actual results that differ from the actuarial assumptions are accumulated and, if outside a certain corridor, amortized over future periods and therefore affect recognized expense in future periods.

The corridor used for this purpose is equal to 10% of the greater of plan liabilities or market asset values, and future periods vary by plan, but generally equal the actuarially determined average expected future working lifetime of active plan participants.

The corridor used for this purpose is equal to 10% of the greater of plan liabilities or market asset values, and future periods vary by plan, but generally equal the actuarial determined average expected future working lifetime of active plan participants.

The Company’s policy is to fund amounts which are required by applicable regulations and which are tax deductible.

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Hasbro has a contributory postretirement health and life insurance plan covering substantially all employees who retired under any of its United States defined benefit pension plans prior to January 1, 2020, and meet certain age and length of service requirements.

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 post-retirement health and life insurance coverage for employees whose retirement eligibility begins after December 31, 2019.

See note 16 for further discussion.

The cost of providing these benefits on behalf of employees who retired prior to 1993 has been substantially borne by the Company.

The cost of providing benefits on behalf of eligible employees who retire after 1992 is borne by the employee.

The Company also has several plans covering certain groups of employees, which may provide benefits to such employees following their period of employment but prior to their retirement.

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

Stock-Based Compensation:

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All awards are measured at fair value at the date of the grant and amortized as expense on a straight-line basis over the requisite service period of the award.

For awards contingent upon Company performance, the measurement of the expense for these awards is based on the Company’s current estimate of its performance over the performance period.

See note 15 for further discussion.

For awards contingent upon Company performance, the measurement of the expense for these awards is based on the Company’s current

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Notes to Consolidated Financial Statements — (Continued)

estimate of its performance over the performance period.

The Company recognizes forfeitures as incurred.

See Note 15, Share-Based Awards, 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.

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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

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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.

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.

Treasury interest rates on the anticipated debt issuance.

These instruments, which were designated and effective as hedges, were terminated on the date of the related debt issuance and the then fair value of these instruments was recorded to AOCE and amortized through the Consolidated Statements of Operations using an effective interest rate method over the life of the related debt.

Net Earnings Per Common Share

Basic net earnings per share is computed by dividing net earnings by the weighted average number of shares outstanding for the year as well as awards that have not been issued but all contingencies have been met.

Diluted net earnings per share is similar except that the weighted average number of shares outstanding is increased by dilutive securities, and net earnings are adjusted, if necessary, for certain amounts related to dilutive securities.

Dilutive securities include shares issuable upon exercise of stock options for which the market price exceeds the exercise price, less shares which could have been purchased by the Company with the related proceeds.

Dilutive securities also include shares issuable under restricted stock unit award agreements.

Options and restricted stock unit awards totaling 2.5 million, 2.7 million and 2.2 million for 2023, 2022, and 2021, respectively, were excluded from the calculation of diluted earnings per share because to include them would have been antidilutive.

Of the fiscal 2023 amount, 1.6 million shares would have been included in the calculation of diluted shares had the Company not had a net loss for the year ended December 31, 2023.

Assuming that these awards and options were included, under the treasury stock method, they would have resulted in an additional 0.2 million shares being included in the diluted earnings per share calculation for the year ended December 31, 2023 .

A reconciliation of net earnings and average number of shares for each of the three fiscal years ended December 31, 2023 is as follows:

2023 2022 2021

(In millions, except per share data) Basic Diluted Basic Diluted Basic Diluted

Net earnings (loss) attributable to Hasbro, Inc.

$ ( 1,489.3 ) ( 1,489.3 ) 203.5 203.5 428.7 428.7

Average shares outstanding 138.8 138.8 138.7 138.7 138.0 138.0

Effect of dilutive securities:

Options and other share-based awards — — — 0.2 — 0.4

Equivalent shares 138.8 138.8 138.7 138.9 138.0 138.4

Net earnings (loss) per share attributable to Hasbro, Inc.

$ ( 10.73 ) ( 10.73 ) 1.47 1.46 3.11 3.10

Recent Accounting Pronouncements

Recently Adopted Accounting Pronouncements

In November 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2023-07, Segment Reporting (Topic 280):

Improvements to Reportable Segment Disclosures .

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

The Company adopted this standard as part of this Annual Report.

See Note 21, Segment Reporting, for further detail of the adoption of ASU 2023-07.

Accounting Standards Issued But Not Yet Adopted

In December 2023, the FASB issued ASU 2023-09, Improvements to Income Tax Disclosures .

The amendments in this update enhance the transparency and decision usefulness of income tax disclosures.

This amendment requires

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Notes to Consolidated Financial Statements — (Continued)

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 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.

The new standard is effective for fiscal years beginning after December 15, 2024, with retrospective application permitted.

We are assessing the effect on our 2025 annual consolidated financial statement disclosures;

however, adoption will not impact our consolidated balance sheets or income statements.

In November 2024, the FASB issued ASU 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures .

The new standard requires enhanced additional disclosures related to certain expense categories.

The new standard is effective for fiscal years beginning after December 15, 2026.

We are assessing the effect on our 2027 annual consolidated financial statement disclosures;

however, adoption will not impact our consolidated balance sheets or income statements.

All other ASUs issued but not yet adopted were assessed and determined to be not applicable or are not expected to have a material impact on our consolidated financial statements or financial statement disclosures.

(2) Revenue Recognition

Contract Assets and Liabilities

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.

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, location based entertainment, 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 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.

The change in the carrying amount of contract assets and liabilities for the year ended December 31, 2023 is as follows:

(In millions) December 31, 2023

The opening and closing balances of contract assets and contract liabilities are as follows:

(In millions) 2024 2023

Contract Assets

Balance at beginning of the year $ 213.3 $ 594.4

Recognized in current year 478.6

Amounts reclassified (1)

Assets disposed (2)

Foreign currency impact 16.8

Ending Balance $ 241.4 $ 213.3

Contract Liabilities

Balance at beginning of the year $ 230.8 $ 113.0

Recognized in current year 460.1

Amounts in beginning balance reclassified to revenue ( 89.9 )

Current year amounts reclassified to revenue ( 224.3 )

Liabilities disposed (1)

Foreign currency impact ( 2.3 )

Ending Balance $ 236.8 $ 230.8

(1) These amounts are primarily related to balances reclassified to Accounts receivable.

(2) See note 3 for additional information on the sale of the eOne film and TV business.

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Notes to Consolidated Financial Statements — (Continued)

The increase in contract assets during 2024 is the result of an increase in the amount of revenues recognized in advance of contractual invoicing, offset by the impact of previously unbilled revenues that were invoiced throughout the period within the ordinary course of business.

The decrease in contract assets during 2023 is the result of the disposal of $ 402.3 million of contract assets in connection with the sale of the eOne Film and TV business (refer to Note 3), partially offset by invoicing activity and foreign currency impacts.

The increase in contract liabilities during 2023 and 2024 is primarily the result of an increase in the amount of advanced payments received from customers relating to performance obligations that had not yet been satisfied, offset by $ 134.2 million of revenue recognized that were included in contract liabilities balance as of December 31, 2023.

Revenue recognized as of December 31, 2023 related to the contract liability balance as of December 25, 2022 was $ 89.9 million.

The increase in contract liabilities during 2023 was also partially offset by $ 25.8 million of contract liabilities that were disposed in connection with the sale of the eOne Film and TV business (refer to Note 3).

Unsatisfied Performance Obligations

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 December 31, 2023, unrecognized revenue attributable to unsatisfied performance obligations expected to be recognized in the future was $ 11.7 million.

Of this amount, we expect to recognize approximately $ 6.6 million in 2024 and $ 5.1 million in 2025.

These amounts include only fixed consideration.

As of December 29, 2024, unrecognized revenue attributable to unsatisfied performance obligations expected to be recognized in the future was $ 2.6 million, all of which we expect to recognize in 2025.

This amount includes 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 29, 2024 and December 31, 2023 are primarily from contracts with customers.

The Company had no material expense for credit losses in the fiscal years ended 2023, 2022, or 2021.

A summary of the activity in the allowance for credit losses is as follows:

(In millions) 2024 2023

Balance at beginning of the year $ 12.7 $ 20.0

Provisions/charges to income 18.9 4.2

Amounts charged off and other deductions ( 4.6 ) ( 12.2 )

Foreign currency impact ( 1.2 ) 0.7

Ending balance $ 25.8 $ 12.7

Disaggregation of revenues

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

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

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

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Film & TV, Family Brands, and Other.

Finally, the Company disaggregates its revenues by brand portfolio into four brand categories:

Franchise Brands, Partner Brands, Portfolio Brands, and Non-Hasbro Branded Film & TV.

Finally, the Company disaggregates its revenues by brand portfolio into three brand categories:

Franchise Brands, Partner Brands and Portfolio Brands.

We believe these collectively depict how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors.

See note 21 for additional information on disaggregation of revenues.

In addition to the required disclosures below, see further discussion of the Company's revenue recognition policy in note 1.

(3) Sale of Non-core Entertainment One Film and TV Business

In connection with Blueprint 2.0, and after evaluating its portfolio of businesses, the Company determined that the eOne Film and TV business, which was included within the Entertainment segment, was no longer aligned with its current long-term strategy and during the third quarter of 2023, the Company entered into a definitive agreement to sell the business to Lionsgate, subject to the satisfaction of customary net working capital closing conditions and holdbacks for certain retained liabilities.

On December 27, 2023, the Company completed the sale of eOne Film and TV to Lionsgate, pursuant to the terms of an Equity Purchase Agreement dated August 3, 2023, among Hasbro and Lionsgate.

Lionsgate acquired eOne Film and TV for a purchase price of $ 375.0 million in cash, subject to certain purchase price adjustments plus the assumption by Lionsgate of production financing loans.

See note 11 for additional information.

The Company acquired eOne Film and TV through its acquisition of eOne in December 2019.

Based on the value of the net assets held by the film and television business, which included goodwill and intangible assets allocated as part of the eOne acquisition, 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.

In 2024, 2023, and 2022 the Company’s largest customers were Wal-Mart, Inc.

and Amazon.com, Inc.

with sales to each of these customers amounting to 12 % and 11 % of consolidated net revenues in 2024, respectively.

In 2023, sales to each of these customers amounted to 11 % of consolidated net revenues.

In 2022, sales to these customers amounted to 11 % 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 and Digital Gaming segment and the Entertainment segment.

Effective in the first quarter of 2024, subsequent to the sale of the eOne Film and TV business, 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 as of December 31, 2023 have been reclassified to reflect the movement, resulting in a change of $ 0.5 million.

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Notes to Consolidated Financial Statements — (Continued)

The following table represents consolidated Consumer Products segment net revenues by major geographic region:

(In millions) 2024 2023 2022

North America $ 1,493.0 $ 1,649.1 $ 2,064.8

Europe 519.7 669.5 899.5

Asia Pacific 286.7 256.3 293.4

Latin America 244.5 311.5 314.8

Net revenues $ 2,543.9 $ 2,886.4 $ 3,572.5

The following table represents consolidated Wizards of the Coast and Digital Gaming segment net revenues by category:

(In millions) 2024 2023 2022

Tabletop Gaming $ 1,039.6 $ 1,072.5 $ 1,067.0

Digital and Licensed Gaming 471.7 385.1 258.1

Net revenues $ 1,511.3 $ 1,457.6 $ 1,325.1

The following table represents consolidated Entertainment segment net revenues by category:

(In millions) 2024 2023 2022

Film and TV (1)

$ 6.6 $ 575.5 $ 837.6

Family Brands 73.7 83.8 79.4

Music and Other — — 42.1

Net revenues $ 80.3 $ 659.3 $ 959.1

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

The following table presents consolidated net revenues by brand portfolio:

(In millions) 2024 2023 2022

Franchise Brands $ 3,120.9 $ 3,256.5 $ 3,350.8

Partner Brands 583.4 687.8 1,052.0

Portfolio Brands 431.2 521.8 625.2

Non-Hasbro Branded Film & TV — 537.2 828.7

Net revenues $ 4,135.5 $ 5,003.3 $ 5,856.7

(3) Sale of Entertainment One Film and TV Business

On December 27, 2023, the Company completed the sale of eOne Film and TV to Lionsgate, pursuant to the terms of an Equity Purchase Agreement dated August 3, 2023, among Hasbro and Lionsgate for a purchase price of $ 375.0 million in cash, subject to certain purchase price adjustments plus the assumption by Lionsgate of production financing loans.

For the year ended December 29, 2024, the Company recorded a $ 37.4 million Loss on disposal of business on the Consolidated Statements of Operations associated with certain purchase price and related adjustments.

During 2023, the Company recorded a $ 539.0 million Loss on disposal of business on the Consolidated Statements of Operations for the year ended December 31, 2023 based on the value of the net assets held by the eOne Film and TV, which included goodwill and intangible assets.

The Company also recorded pre-tax cash transaction expenses of $ 35.1 million within Selling, distribution and administration expense on the Consolidated Statements of Operations for the year ended December 31, 2023.

The impairment charge was recorded within the Entertainment segment and the transaction costs were recorded within the Corporate and Other segment.

The operations of eOne Film and TV did not meet the criteria to be presented as discontinued operations in accordance with Accounting Standards Update No.

2014-08 (ASU 2014-08) Presentation of Financial Statements (Topic 205) and Property, Plant and Equipment (Topic 360) - Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity and eOne Film and TV did not represent an individually significant component of the Company’s business.

As a result, income from operations before income taxes, attributable to eOne Film and TV, was recorded to the Company's Consolidated Statements of Operations, within the Entertainment segment, through the sale transaction closing date.

Assets of $ 1.5 billion and liabilities of $ 542.0 million, attributable to eOne Film and TV, were de-consolidated as of the closing date and, as of December 31, 2023, there are no remaining carrying amounts within the Company's Consolidated Balance Sheets.

During 2023, the operations of eOne Film and TV did not meet the criteria to be presented as discontinued operations in accordance with GAAP and eOne Film and TV did not represent an individually significant component of the Company’s business.

As a result, income from operations before income taxes, attributable to eOne Film and TV, was recorded in the Company's Consolidated Statements of Operations, within the Entertainment segment,

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Notes to Consolidated Financial Statements — (Continued)

through the sale transaction closing date.

Loss before income taxes attributable to eOne Film and TV through the date of the transaction was $ 371.6 million and $ 7.3 million for fiscal years 2023 and 2022, respectively.

The following table presents the carrying amounts of the major classes of eOne Film and TV assets and liabilities sold on December 27, 2023.

As of the closing date, assets and liabilities attributable to eOne Film and TV, were de-consolidated and there are no remaining carrying amounts within the Company's Consolidated Balance Sheets.

(In millions) December 27, 2023

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Total liabilities sold

The following table summarizes loss before income taxes attributable to eOne Film and TV through the date of the transaction:

(In millions) 2023 (1)

eOne Film and TV loss before income taxes

(4) Earnings Per Common Share

The Company computes earnings per share ("EPS") in accordance with ASC 260, Earnings per Share .

Dilutive securities also include shares issuable under restricted stock unit award agreements.

Options and restricted stock unit awards totaling 1.6 million, 2.5 million and 2.7 million for 2024, 2023, and 2022, respectively, were excluded from the calculation of diluted earnings per share because to include them would have been antidilutive.

Of the fiscal 2023 amount, 1.6 million shares would have been included in the calculation of diluted shares had the Company not had a net loss for the year ended December 31, 2023.

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Notes to Consolidated Financial Statements — (Continued)

The following table sets forth the reconciliation of basic and diluted earnings per share:

(In millions, except per share data) 2024 2023 2022

Net earnings (loss) attributable to Hasbro, Inc.

$ 385.6 $ ( 1,489.3 ) $ 203.5

(1) Income before taxes includes operating results prior to the close of the sale of the Film and TV Business on December 27, 2023.

Average shares outstanding 139.4 138.8 138.7

Effect of dilutive securities:

Options and other share-based awards 0.9 — 0.2

Equivalent shares 140.3 138.8 138.9

Net earnings (loss) attributable to Hasbro, Inc.

per common share

Basic $ 2.77 $ ( 10.73 ) $ 1.47

Diluted $ 2.75 $ ( 10.73 ) $ 1.46

(5) Other 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 31, 2023.

Components of other comprehensive (loss) earnings are presented within the Consolidated Statements of Comprehensive Earnings (Loss), net of tax.

Income tax effects are released from accumulated other comprehensive earnings (loss) at the effective tax rate during the period in which the components within accumulated other comprehensive earnings (loss) are released.

The following table presents the related tax effects on changes in other comprehensive (loss) earnings.

(In millions) 2024 2023 2022

Other comprehensive earnings (loss), tax effect:

Other comprehensive (loss) earnings, tax effect:

Tax benefit on unrealized holding gains $ — — 0.1

Tax benefit (expense) on cash flow hedging activities

2.8 ( 1.3 ) ( 1.0 )

Tax expense on foreign currency translation amounts

Tax expense on changes in unrecognized pension amounts

— ( 5.9 ) ( 1.5 )

Tax (expense) benefit on cash flow hedging activities ( 3.8 ) 2.8 ( 1.3 )

Tax benefit (expense) on changes in unrecognized pension amounts 0.5 — ( 5.9 )

Reclassifications to earnings, tax effect:

Tax (benefit) expense on cash flow hedging activities

( 1.9 ) 1.6 ( 0.5 )

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

0.1 ( 0.3 ) ( 0.6 )

Total tax effect on other comprehensive earnings (loss) $ 1.0 ( 5.8 ) ( 10.8 )

Tax (expense) benefit on hedging activities ( 0.3 ) ( 1.9 ) 1.6

Tax benefit (expense) on amortization of unrecognized pension and postretirement amounts 0.1 0.1 ( 0.3 )

Total tax (expense) benefit on other comprehensive (loss) earnings $ ( 3.5 ) 1.0 ( 5.8 )

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 31, 2023 are as follows:

Changes in the components of accumulated other comprehensive earnings (loss), net of tax are as follows:

(In millions) Pension and

11 unchanged sentences

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

Balance at December 26, 2021 $ ( 35.1 ) ( 6.0 ) 0.2 ( 194.4 ) ( 235.3 )

Current period other comprehensive earnings (loss) ( 0.3 ) ( 8.6 ) — 59.4 50.5

1 unchanged sentence

Balance at December 31, 2023 $ ( 4.2 ) $ ( 16.8 ) $ ( 0.1 ) $ ( 180.4 ) $ ( 201.5 )

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

Current period other comprehensive earnings (loss) ( 2.9 ) 7.3 — ( 48.8 ) ( 44.4 )

2 unchanged sentences

Gains (Losses) on Derivative Instruments

As of December 31, 2023, the Company had remaining net deferred losses on foreign currency forward contracts, net of tax, of $ 2.5 million in AOCE.

As of December 29, 2024, the Company had remaining net deferred gains on foreign currency forward contracts, net of tax, of $ 4.4 million in AOCE.

These instruments hedge payments related to inventory purchased in the fourth quarter of 2024 or forecasted to be purchased in 2025, intercompany expenses expected to be paid or received during 2025 and cash receipts for sales made at the end of the fourth quarter of 2024 or forecasted to be made in 2025.

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.

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 during 2021 (See note 11), and the 5.10 % Notes due 2044.

In addition to foreign currency forward contracts, the Company entered into hedging contracts on future interest payments related to the 3.15 % Notes, which were repaid in full in the aggregate principal amount of $ 300.0 million during 2021, and the 5.10 % Notes due 2044 (see Note 11).

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.

As of December 29, 2024, deferred losses, net of tax, of $ 13.5 million related to these instruments remained in AOCE.

For the years ended December 31, 2023 and December 25, 2022, losses, net of tax of $ 0.7 million related to these hedging instruments were reclassified from AOCE to net earnings.

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

Of the net deferred losses included in AOCE as of December 31, 2023, the Company expects net losses of approximately $ 2.0 million to be reclassified to the Consolidated Statements of Operations within the next 12 months.

As of December 29, 2024, December 31, 2023, and December 25, 2022, losses, net of tax, of $ 0.7 million related to these hedging instruments were reclassified from AOCE to net earnings.

Of the amounts included in AOCE as of December 29, 2024, the Company expects net gains of approximately $ 4.4 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.

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

See Note 14, Fair Value of Financial Instruments and Note 18, Derivative Financial Instruments, for additional discussion on reclassifications from AOCE to earnings.

AND SUBSIDIARIES

5 unchanged sentences

Machinery, equipment and software 554.9 552.4

Less accumulated depreciation 618.9 654.5

Tools, dies and molds, net of accumulated depreciation 44.7 62.4

Tools, dies and molds 365.3 385.5

Right of use assets 204.7 208.4

Less accumulated depreciation 81.7 121.3

Total property, plant and equipment, gross 1,329.3 1,375.7

accumulated depreciation ( 1,026.7 ) ( 1,041.4 )

Total property, plant and equipment, net $ 302.6 $ 334.3

1 unchanged sentence

In 2024, 2023 and 2022 the Company recorded $ 94.7 million, $ 127.7 million and $ 127.3 million, respectively, of depreciation expense.

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

See Note 17, Leases, for additional discussion on right of use assets.

(7) Goodwill and Intangible Assets

Changes in the carrying amount of goodwill, by operating segment, for the years ended December 31, 2023 and December 25, 2022 are as follows:

Changes in the carrying amount of goodwill, by operating segment are as follows:

(In millions) Consumer Products Wizards of the Coast and Digital Gaming Entertainment Total

1 unchanged sentence

Impairment during the period — — ( 1,191.2 ) ( 1,191.2 )

— — ( 1,191.2 ) ( 1,191.2 )

Foreign exchange translation ( 2.4 ) 0.2 2.5 0.3

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

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

Acquired during the period

— 64.7 — 64.7

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

Foreign exchange translation ( 0.3 ) ( 0.7 ) — ( 1.0 )

Balance at December 29, 2024 $ 1,582.0 $ 371.0 $ 325.2 $ 2,278.2

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

For purposes of the goodwill impairment testing, these assets are allocated to the reporting units within the Company’s operating segments.

The Company performs an annual impairment assessment on goodwill.

1 unchanged sentence

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.

During the second quarter of 2023, the Company determined that a triggering event occurred following a downward revision of the Company's financial forecast for its Film and TV business.

As a result, the Company performed a quantitative impairment test and determined that the Film and TV reporting unit within the Company's Entertainment segment was impaired.

During the second quarter of 2023, the Company recorded a pre-tax non-

AND SUBSIDIARIES

Notes to Consolidated Financial Statements — (Continued)

cash impairment charge of $ 231.2 million as the carrying value of the Film and TV reporting unit exceeded its expected fair value, as determined using a discounted cash flow model which is primarily based on management’s future revenue and cost estimates.

This impairment charge was recorded within Impairment of goodwill, within the Consolidated Statement of Operations, and within the Entertainment segment for the year ended December 31, 2023.

During the fourth quarter of 2023, the Company determined that a triggering event occurred following declines in the Company's financial forecast for the Family Brands reporting unit.

The downward forecast revision reflects a lower profitability forecast for the PJ MASKS franchise as described below, and a change in outlook for the Company's owned and operated production efforts that shifted the Entertainment strategy to an asset lite and partner led model.

As a result, the Company performed a quantitative goodwill impairment test of the Family Brands reporting unit and determined it was impaired as its carrying value exceeded its fair value.

As such, during the fourth quarter of 2023, the Company recorded a pre-tax non-cash impairment charge of $ 960.0 million in Impairment of goodwill, within the Consolidated Statement of Operations, and within the Entertainment segment for the year ended December 31, 2023.

During the fourth quarter of 2024, the Company performed a qualitative goodwill assessment with respect to each of its reporting units.

Based on its qualitative assessments, the Company determined, other than the goodwill impairments of the Film and TV and Family Brands reporting units described above, it is not more likely than not that the carrying values exceed the fair values for any of its reporting units.

As a result, during 2023 the Company concluded it was not necessary to perform a quantitative test for impairment of goodwill for any reporting unit, other than Film and TV and Family Brands as described above.

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 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.

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.

Based on the value of the net assets held by eOne Music, which included certain goodwill and intangible assets allocated to the eOne reportable segment and attributable to eOne Music, the Company recorded a pre-tax non-cash goodwill impairment charge of $ 108.8 million within Loss on disposal of business on the Consolidated Statements of Operations for the year ended December 26, 2021.

See note 6 for details on the eOne Music goodwill impairment.

During the fourth quarter of 2021 the Company performed a quantitative goodwill assessment with respect to each of its reporting units and determined that the fair values of its reporting units exceeded their carrying values.

As a result of this assessment, the Company concluded that there was no impairment to any of its reporting units.

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

Based on its qualitative assessments, the Company determined it is not more likely than not that the carrying values exceed the fair values for any of its reporting units.

As a result, the Company concluded it was not necessary to perform a quantitative test for impairment of goodwill for any reporting unit.

During 2023, the Company recorded $ 1,191.2 million of non-cash goodwill impairment charges related to the Film and TV reporting unit within the Company's Entertainment segment as the carrying value of the Film and TV reporting unit exceeded its expected fair value, as determined using a discounted cash flow model which is primarily based on management’s future revenue and cost estimates.

There were no other non-cash goodwill impairment charges recorded in 2023.

During 2022, the Company recorded $ 11.8 million of non-cash goodwill impairment charges related to exiting certain non-core businesses within the Entertainment segment.

The non-cash goodwill impairment charge was recorded within Loss on disposal of business in the Consolidated Statement of Operations.

AND SUBSIDIARIES

1 unchanged sentence

Other Intangible Assets, Net

The following table represents a summary of the Company’s other intangible assets, net at December 31, 2023 and December 25, 2022:

The following table represents a summary of the Company’s other intangible assets:

(In millions) 2024 (1)

6 unchanged sentences

Total other intangibles assets, net $ 518.4 $ 587.5

(1) Excludes the original cost and accumulated amortization of fully-amortized intangibles.

Certain intangible assets relating to rights obtained in the Company’s acquisition of Milton Bradley in 1984 and Tonka in 1991 are not amortized.

1 unchanged sentence

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 intangible assets in the fourth quarter of 2023 and 2022, concluding that there was no impairment of these assets.

The Company completed its annual impairment tests of indefinite-lived intangible assets in the fourth quarter of 2024, concluding that there was no impairment of these assets.

The Company did no t have any impairments of its indefinite-lived intangible assets in 2024 or 2023.

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.

During the second quarter of 2023, in connection with the Company's quantitative goodwill impairment test of its Film and TV reporting unit described above, it was determined that there was an impairment of the Company's definite-lived intangible eOne Trademark as the Film and TV reporting unit produces content under, and is synonymous with the eOne name.

As a result, a non-cash intangible asset impairment charge of $ 65.0 million was recorded in Selling, distribution and administration expense, within the Entertainment segment, within the Consolidated Statements of Operations for the year ended December 31, 2023.

During the fourth quarter of 2023, due to challenging retail conditions and competitive market conditions leading to a reduction in brand profitability, the Company lowered its future revenue and costs estimates associated with its PJ MASKS brand as determined using a discounted cash flow model.

As a result, the Company performed a quantitative goodwill impairment test of the PJ MASKS definite-lived intangible asset and determined it was impaired as its carrying value exceeded its fair value.

As such, the Company recorded a $ 51.0 million impairment charge, recorded in Selling, distribution and administration within the Entertainment segment for the year ended December 31, 2023.

During the fourth quarter of 2022, following the decision to cancel certain projects in conjunction with the Company's 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 2023 or 2022 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.

A portion of the amortization of these product rights will fluctuate depending on brand activation, related revenues during an annual period and future expectations, as well as rights reaching the end of

AND SUBSIDIARIES

Notes to Consolidated Financial Statements — (Continued)

their useful lives.

During 2024, there were no impairments recorded related to the Company's definite-lived intangible assets.

During 2023, the Company recorded a non-cash intangible asset impairment charge of $ 65.0 million related to the eOne Trademark associated with the Film and TV reporting unit.

Additionally, during 2023, the Company recorded a $ 51.0 million impairment charge related to PJ MASKS definite-lived intangible asset based upon lower revenue forecasts for this intangible asset.

Both charges were recorded in Selling, distribution and administration expense within the Consolidated Statements of Operations in the Entertainment segment.

There were no additional definite-lived intangible asset impairments recorded in 2024 or 2023.

The Company currently estimates amortization expense related to the above intangible assets for the next five years to be approximately:

(In millions)

Thereafter 149.4

Total $ 442.7

(8) Equity Method Investment

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

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

The Network was established to create a cable television network in the United States dedicated to high-quality children’s and family entertainment.

In October 2009, the Company purchased an initial 50 % share in the Network for a payment of $ 300.0 million and certain future tax payments based on the value of certain tax benefits expected to be received by the Company.

On September 23, 2014, the Company and Discovery amended their relationship with respect to the Network and Discovery increased its equity interest in the Network to 60 % while the Company retained a 40 % equity interest in the Network.

As of December 31, 2023 and December 25, 2022, the Company’s investment in the Network totaled $ 102.0 million and $ 120.8 million, respectively.

During the Fourth quarter of 2023, the Company reviewed its investment in the Network for impairment.

Due to decreases in forecasted revenues, the Company concluded that the fair value of the Company's interest in the joint venture was less than its carrying value.

As a result, the Company recorded an impairment loss of $ 1.3 million in Other expense (income), net in the Consolidated Statements of Operations for the year ended December 31, 2023.

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.

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.

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 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 at that time.

The Company’s share in the earnings of the Network for the years ended December 31, 2023, December 25, 2022 and December 26, 2021 totaled $ 10.9 million, $ 8.1 million and $ 20.8 million, respectively, and is included as a component of Other expense (income), net in the Consolidated Statements of Operations.

The Company also enters into certain other transactions with the Network.

During 2023, 2022 and 2021, these transactions were not material.

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 31, 2023, 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 31, 2023 and December 25, 2022, the fair market value of this option was $ 1.7 million and was included as a component of Other liabilities.

There were no material changes to the option's value in 2023 or 2022.

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

DFC was established to create a cable television network in the United States dedicated to high-quality children’s and family entertainment.

In October 2009, the Company purchased an initial 50 % share in DFC for a payment of $ 300.0 million and certain future tax payments based on the value of certain tax benefits expected to be received by the Company.

On September 23,

AND SUBSIDIARIES

Notes to Consolidated Financial Statements — (Continued)

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

2014, the Company and WBD amended their relationship with respect to DFC and WBD increased its equity interest in DFC to 60 % while the Company retained a 40 % equity interest in DFC.

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

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

As of December 29, 2024, neither party had exercised the option or put right to require WBD to acquire the Company's remaining ownership in DFC.

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

At December 29, 2024, the fair market value of this option was zero .

At December 31, 2023, the fair market value of this option was $ 1.7 million and was included as a component of Other liabilities.

During 2024, the Company recorded a gain of $ 1.8 million in Other expense (income), net relating to the change in fair value of this option.

There were no material changes to the option's value in 2023 and 2022.

During the fourth quarter of 2024 and 2023, the Company reviewed its investment in DFC for an other than temporary decline in value of the investment due to decreases in forecasted revenues.

The Company determined 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 $ 80.0 million and $ 1.3 million, respectively, which is included in Other expense (income), net in the consolidated statements of operations.

As of December 29, 2024 and December 31, 2023, the Company’s investment in DFC totaled $ 5.6 million and $ 102.0 million, respectively.

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

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

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

The Company’s share in the earnings of DFC for the years ended 2024, 2023 and 2022 totaled $ 9.4 million, $ 10.9 million and $ 8.1 million, respectively, and is included as a component of Other expense, net in the Consolidated Statements of Operations.

The Company did not enter into any other material transactions with DFC during 2024, 2023 and 2022.

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

The balance of the associated liability, including imputed interest, was $ 3.0 million and $ 9.0 million at December 29, 2024 and December 31, 2023, respectively, and is included as a component of Other liabilities in the accompanying Consolidated Balance Sheets.

During 2022 the Company recognized income of $ 0.7 million related to this liability due to changes in the Company's 2021 income tax rate that resulted in adjustments to future payments owed to the Network.

There were no such adjustments made during 2023.

During 2023, 2022 and 2021, the Company made payments to Discovery under this tax sharing agreement in the amount of $ 5.7 million, $ 5.4 million and $ 5.3 million, respectively.

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

During 2024, 2023 and 2022, the Company made payments to WBD under this tax sharing agreement in the amount of $ 6.7 million, $ 5.7 million and $ 5.4 million, respectively.

See Note 20, Commitments and Contingencies, for more information on estimated future payments in relation to the Company's tax sharing agreement.

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

2 unchanged sentences

Amounts capitalized are reviewed periodically on an individual film 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.

Programming costs are included in Other assets and consist of the following at December 31, 2023 and December 25, 2022:

AND SUBSIDIARIES

Notes to Consolidated Financial Statements — (Continued)

Programming costs are included in Other assets and consist of the following:

(In millions) 2024 2023

5 unchanged sentences

Pre-production 7.4 10.4

Total individual monetization 80.6 117.3

Film/TV group monetization

1 unchanged sentence

In production — 23.6

Total film/TV group monetization 37.5 49.6

Investment in other programming:

2 unchanged sentences

Pre-production — 0.8

Total investment in other programming 6.7 17.7

Total program investments $ 124.8 $ 184.6

(1) Investments in productions and investments in acquired content totaling $ 734.8 million have been removed from the Company's balance sheet as of December 31, 2023, in connection with the sale of the eOne Film and TV business completed on December 27, 2023.

See note 3 for additional information.

The Company recorded $ 448.9 million of program cost amortization related to released programming during 2023, consisting of the following:

(In millions) Investment in Production Investment in Content Total

Program cost amortization $ 400.7 48.2 448.9

AND SUBSIDIARIES

Notes to Consolidated Financial Statements — (Continued)

Based on management’s total revenue estimates as of December 31, 2023, the Company's expected future amortization expenses for capitalized programming costs over the next three years are as follows:

The Company's program cost amortization consisted of the following:

(In millions) 2024 2023 2022

Estimated Future Amortization Expense:

Individual monetization $ 36.6 $ 418.3 $ 533.0

Released $ 10.1 11.6 6.4

Film/TV group monetization 8.9 17.1 15.6

Released 15.4 16.7 25.2

Total $ 25.5 28.3 31.6

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.

(9) Financing Arrangements

As of December 31, 2023, Hasbro had available an unsecured revolving credit agreement (see Amended Revolving Credit Agreement below) in the amount of $ 1.25 billion and unsecured uncommitted lines of credit from various banks approximating $ 95.6 million.

The Company had no outstanding short-term borrowings under, or supported by, these lines of credit as of December 31, 2023.

Substantially all of the Company's short-term borrowings held at the end of 2022 represented borrowings made under, or supported by, these lines of credit.

The weighted average interest rate of the outstanding borrowings under the uncommitted lines of credit as of December 25, 2022 was 3.3 %.

The Company had no borrowings outstanding under its committed line of credit as of December 31, 2023 and December 25, 2022.

During 2023 and 2022, Hasbro’s working capital needs were primarily fulfilled by cash available and cash generated from operations, and to a lesser extent, in 2023, the Company issued commercial paper as described below.

During the second half of 2019, in preparation for the Company's acquisition of eOne, the Company completed the following debt and equity financings:

(i) the issuance of senior unsecured Notes in an aggregate principal amount of $ 2.4 billion, (ii) the issuance of 10.6 million shares of common stock at a public offering price of $ 95.00 per share and (iii) $ 1.0 billion in term loans provided by a Term Loan Agreement (the “Term Loan Agreement”) entered into with Bank of America, N.A., as administrative agent, and certain financial institutions, as lenders, pursuant to which such lenders committed to provide, contingent on completion of the eOne acquisition and certain other customary conditions to funding, facilities consisting of a three-year senior unsecured term loan facility in an aggregate principal amount of $ 400.0 million and a five-year senior unsecured term loan facility in an aggregate principal amount of $ 600.0 million.

On December 30, 2019, the Company completed the acquisition of eOne and on that date, borrowed the full amount of $ 1.0 billion under the Term Loan facilities.

As of December 31, 2023, the Company has repaid the full aggregate principal amount of $ 400.0 million on the three-year term loan facility and the full aggregate principal amount of $ 600.0 million on the five-year term loan facility.

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

In September 2023, the Company entered into a third amended and restated revolving credit agreement with Bank of America, as administrative agent, swing line lender, a letter of credit issuer and a 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 $ 1.25 billion.

The Amended Revolving Credit Agreement contains certain financial covenants setting forth leverage and coverage requirements, and certain other limitations typical of an investment grade facility, including with respect to liens, mergers and incurrence of indebtedness.

It also provides for a potential additional incremental commitment increase of up to $ 500.0 million subject to agreement of the lenders.

Loans under the revolving credit facility bear interest, at the Company’s option, at either the Adjusted Term Benchmark Rate (determined in accordance with the Amended Revolving Credit Agreement), the Base Rate

AND SUBSIDIARIES

Notes to Consolidated Financial Statements — (Continued)

(determined in accordance with the Amended Revolving Credit Agreement) or the Daily Benchmark Rate (determined in accordance with the Amended Revolving Credit Agreement).

In each case there is also a spread added to the rate, which fluctuates based upon the more favorable of the Company’s long-term debt ratings and the Company’s leverage.

The Company is also required to pay a commitment fee in respect to the unused commitments under the facility, the rate for which is also determined based upon the more favorable of the Company's long-term debt ratings and leverage.

The Amended Revolving Credit Agreement extends through September 20, 2028.

The Amended Revolving Credit Agreement contains affirmative and negative covenants typical of this type of facility, including:

(a) restrictions on the Company’s and its domestic subsidiaries’ ability to allow liens on their assets, (b) restrictions on the incurrence of indebtedness, (c) restrictions on the Company’s and certain of its subsidiaries’ ability to engage in certain mergers, (d) the requirement that the Company maintain a Consolidated Interest Coverage Ratio of no less than 3.00 :1.00 as of the end of any fiscal quarter and (e) the requirement that the Company maintain:

a Consolidated Total Leverage Ratio of no more than (1) 3.50 :1.00 for the quarter ended December 31, 2023 and thereafter and on and after the sale of eOne Film and TV to Lionsgate, a Consolidated Net Total Leverage Ratio of no more than (i) 4.00 :1.00 for each of the quarters ended September 30, 2023 and December 31, 2023, (ii) 3.75 :1.00 for each of the first, second and fourth fiscal quarters of each year (other than 2023) and (iii) 4.00 :1:00 for the third fiscal quarter of each year (other than 2023).

The Company was in compliance with all covenants as of and for the year ended December 31, 2023.

The Company had no borrowings outstanding under its committed revolving credit facility as of December 31, 2023.

The Company also has an agreement with a group of banks providing a commercial paper program (the “Program”).

Under the Program, at the Company’s request and subject to market conditions, the banks may either purchase from the Company, or arrange for the sale by the Company of, unsecured commercial paper notes.

Borrowings under the Program are supported by the aforementioned unsecured committed line of credit and the Company may issue notes from time to time up to an aggregate principal amount outstanding at any given time of $ 1.0 billion.

The maturities of the notes may vary but may not exceed 397 days.

The notes are 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.

Subject to market conditions, the Company intends to utilize the Program as its primary short-term borrowing facility and does not intend to sell unsecured commercial paper notes in excess of the available amount under the revolving credit agreement discussed below.

If, for any reason, the Company is unable to access the commercial paper market, the Company intends to use the revolving credit agreement to meet the Company's short-term liquidity needs.

During the second quarter and third quarter of 2023, the Company issued and repaid intra-quarter commercial paper notes under the Program, to meet certain of its short-term liquidity needs.

As of December 31, 2023 and December 25, 2022, 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 provided the Company with commitments having a maximum aggregate principal amount of $ 250.0 million.

The Revolving Production Financing Agreement also provided 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 Company used the RPCF to fund certain of the Company’s original film and TV production costs, however, the RPCF was assumed by Lionsgate effective upon the closing of the sale of the eOne Film and TV business in the fourth quarter of 2023.

The Company also has a supplier finance program which provides participating suppliers the option of receiving payment in advance of an invoice due date, to be paid by certain administering banks, on the basis of invoices that the Company has confirmed as valid and approved.

The Company’s obligation is to make payment in the invoice amount negotiated with participating suppliers, to the administering banks on the invoice due date.

The Company’s suppliers are not required to participate in the supplier finance program.

The early payment transactions between the Company’s supplier and the administering bank are subject to an agreement between those parties, and the Company does not participate in any financial aspect of the agreements between the Company’s suppliers and the administering banks.

The Company has not pledged any assets to the administering bank under the supplier financing program.

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

Other 3.8 13.5 6.9

Total program cost amortization $ 49.3 $ 448.9 $ 555.5

Based on management’s total revenue estimates as of December 29, 2024, the Company's expected future amortization expenses for capitalized programming costs over the next three years are as follows:

(In millions) 2025 2026 2027

Estimated Future Amortization Expense:

Released - Individual monetization $ 21.7 $ 19.0 $ 14.4

Released - Film/TV group monetization 8.5 4.2 4.9

Total future amortization expense $ 30.2 $ 23.2 $ 19.3

AND SUBSIDIARIES

Notes to Consolidated Financial Statements — (Continued)

The amount of obligations confirmed under the program that remain unpaid by the Company were $ 43.3 million, and $ 76.1 million as of December 31, 2023 and December 25, 2022, respectively.

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

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

(10) Accrued Liabilities

Components of accrued liabilities for the fiscal years ended on December 31, 2023 and December 25, 2022 are as follows:

(10) Additional Balance Sheet Information

Components of accrued liabilities are as follows:

(In millions) 2024 2023

Royalties $ 308.4 $ 286.8

Cancellation charges 118.9 89.2

Deferred revenue 101.6 111.3

Dividends 97.2 96.7

Payroll and management incentives 121.1 85.6

Severance 83.7 100.3

Other taxes 68.7 82.1

Accrued income taxes 93.3 61.6

General vendor accruals 51.9 44.3

Deferred revenue 88.6 101.6

Other taxes 60.9 68.7

Advertising 58.7 45.0

Participations and residuals 34.0 300.2

Current lease liability 30.5 39.6

Severance 50.2 83.7

Lag & cancellation charges 48.9 118.9

General vendor accruals 46.1 51.9

Interest 31.3 29.9

Defined contribution plans 29.7 30.0

Current lease liability 29.8 30.5

Freight 27.0 22.9

Insurance 13.3 11.0

Defined contribution plans 21.4 29.7

Professional fees 18.2 12.4

Insurance 11.3 13.3

Participation and residuals 8.8 34.0

Accrued expenses IIC & IIP 0.7 0.7

Dividends — 97.2

Other 35.1 41.4

Total accrued liabilities $ 1,059.8 $ 1,215.8

Prepaid expenses and other current assets include accrued income, current of $ 179.5 million and $ 85.6 million as of December 29, 2024 and December 31, 2023 , respectively.

Other assets include deferred tax assets of $ 424.6 million and $ 427.9 million as of December 29, 2024 and December 31, 2023 , respectively, and unamortized software development costs of $ 264.4 million and $ 154.3 million as of December 29, 2024 and December 31, 2023 , respectively.

AND SUBSIDIARIES

Notes to Consolidated Financial Statements — (Continued)

(11) Long-Term Debt

Components of Long-term debt for the fiscal years ended on December 31, 2023 and December 25, 2022 are as follows:

(11) Long-Term Debt and Other Financing

Components of Long-term debt are as follows:

(In millions) 2024 2023

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500.0 502.2 — —

6.60 % Debentures Due 2028

109.9 116.0 109.9 112.1

Variable % Notes Due December 30, 2024 (1)

5.10 % Notes Due 2044

300.0 261.3 300.0 271.6

Production Financing Facilities (2)

6.60 % Debentures Due 2028

109.9 114.4 109.9 116.0

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Long-term debt $ 3,380.8 $ 3,290.5 $ 2,965.8 $ 3,349.1

(1) During the fourth quarter of 2023, the Company paid the remaining principal balance of $ 250.0 million of the Variable % Notes Due December 30, 2024.

(2) The Company's production financing facilities were assumed by Lionsgate effective upon the closing the sale of the eOne Film and TV business in the fourth quarter of 2023.

See note 3 for additional information.

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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These costs are being amortized over the life of the Notes outstanding, which range from five years to ten years from the date of issuance.

During fiscal year 2021 and fiscal year 2024, the Company repaid in full its 2022 Notes and 2024 Notes, respectively.

The Notes bear interest at the stated rates but may be subject to upward adjustment if the credit rating of the Company is reduced by Moody's or Standard & Poors.

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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 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.

The Three-Year Tranche loan notes were fully repaid as of the Company’s fiscal year ended December 26, 2021.

During 2022, the Company made $ 50.0 million principal balance and principal amortization payments totaling $ 37.5 million on the Five-Year Tranche loan notes.

During 2023, the Company made principal amortization

In addition, on and after 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 May 2024, the Company issued an aggregate $ 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.

During 2024, the Company repurchased $ 83.1 million of its 2026 Notes and recorded a gain on extinguishment of $ 1.8 million, which was recorded in Other expense (income), net in the Consolidated Statements of Operations.

AND SUBSIDIARIES

Notes to Consolidated Financial Statements — (Continued)

payments totaling $ 60.0 million on the Five-year Tranche loan notes, and repaid the remaining $ 250.0 million principal balance of the Five-Year Tranche loans using the proceeds received from the sale of eOne Film and TV.

The Company may redeem its 5.10 % notes due in 2044 (the "2044 Notes") at its option, at the greater of the principal amount of the notes or the present value of the remaining scheduled payments, discounted using the effective interest rate on applicable U.S.

Treasury bills at the time of repurchase.

Current portion of long-term debt at December 31, 2023 o f $ 500.0 million , as shown on the Consolidated Balance Sheet, represents the principal balance of the 3.00 % Notes due 2024.

All of the Company’s other long-term borrowings have contractual maturities that occur subsequent to 2025.

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

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2030 and thereafter 1,300.0

The fair values of the Company’s long-term debt are considered Level 3 fair values (see note 14 for further discussion of the fair value hierarchy) and are measured using the discounted future cash flows method.

Total $ 3,401.8

The fair values of the Company’s long-term debt are considered Level 3 fair values (see Note 14, Fair Value of Financial Instruments, for further discussion of the fair value hierarchy) and are measured using the discounted future cash flows method.

In addition to the debt terms, the valuation methodology includes an assumption of a discount rate that approximates the current yield on a similar debt security.

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

Production Financing

Prior to the sale of the eOne Film and TV business to Lionsgate, the Company used production financing to fund certain of its television and film productions which were 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 were non-recourse to the Company's assets, or through a senior revolving credit facility 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.

As of December 25, 2022, $ 195.6 million of production financing facilities was included within Current liabilities in the Company's Consolidated Balance Sheets.

Effective upon the closing of the sale of the eOne Film and TV business in the fourth quarter of 2023, the Company's senior revolving credit facility dedicated to production financing and all outstanding individual production loans were assumed by Lionsgate.

As such, the Company had no production financing outstanding as of December 31, 2023.

Other Financing Arrangements

As of December 29, 2024, Hasbro had available an unsecured revolving credit agreement (see Amended Revolving Credit Agreement below) in the amount of $ 1.25 billion and unsecured uncommitted lines of credit from various banks approximating $ 88.1 million.

The Company had no outstanding short-term borrowings under, or supported by, these lines of credit as of December 29, 2024 and December 31, 2023.

During 2024 and 2023, Hasbro’s working capital needs were primarily fulfilled by cash available and cash generated from operations.

It also provides for a potential additional incremental commitment increase of up to $ 500.0 million subject to agreement of the lenders.

Loans under the revolving credit facility bear interest, at the Company’s option, at either the Adjusted Term Benchmark Rate, the Base Rate, or the Daily Benchmark Rate (each determined in accordance with the Amended Revolving Credit Agreement).

In each case there is also a spread added to the rate, which fluctuates based upon the more favorable of the Company’s long-term debt ratings and the Company’s leverage.

The Amended Revolving Credit Agreement extends through September 20, 2028.

The Amended Revolving Credit Agreement contains affirmative and negative covenants typical of this type of facility, including:

a Consolidated Total Leverage Ratio of no more than (i) 3.50 :1.00 for the quarter ended December 31, 2023 (ii) 4.00 :1.00 for each of the quarters ended September 30, 2023 and December 31, 2023, (iii) 3.75 :1.00 for each of the first, second and fourth fiscal quarters of each year (other than 2023) and (iv) 4.00 :1:00 for the third fiscal quarter of each year (other than 2023).

The Company was in compliance with all covenants as of and for the year ended December 29, 2024.

The Company had no borrowings outstanding under its committed revolving credit facility as of December 29, 2024.

AND SUBSIDIARIES

Notes to Consolidated Financial Statements — (Continued)

The following table represents the movements in production financing loans during 2023:

(In millions) Production Financing

December 25, 2022 $ 195.6

Drawdowns 117.4

Repayments ( 206.7 )

Removed with sale of eOne film and TV (1)

Foreign exchange differences ( 0.5 )

Balance at December 31, 2023

(1) See note 3 for additional information on the sale of the eOne Film and TV business.

The Company also has an agreement with a group of banks providing a commercial paper program (the “Program”).

The maturities of the notes may vary but may not exceed 397 days.

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.

If, for any reason, the Company is unable to access the commercial paper market, the Company intends to use the revolving credit agreement to meet the Company's short-term liquidity needs.

As of December 29, 2024 and December 31, 2023, the Company did not have any notes outstanding under the Program.

Hasbro had unused open letters of credit and related instruments of approximately $ 11.3 million and $ 13.3 million at December 29, 2024 and December 31, 2023, respectively.

Supplier Finance Program

The Company’s obligation is to make payment in the invoice amount negotiated with participating suppliers, to the administering banks on the invoice due date.

The Company’s suppliers are not required to participate in the supplier finance program.

The Company has not pledged any assets to the administering bank under the supplier financing program.

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 $ 66.2 million, and $ 43.3 million as of December 29, 2024 and December 31, 2023, respectively.

These obligations are presented within Accounts payable in our Consolidated Balance Sheets and the activity related to this program is reflected within the operating activities section of the Consolidated Statements of Cash Flows.

A summary of the activity related to the obligations are as follows:

(In millions) 2024 2023

Balance at beginning of the year $ 43.3 $ 76.1

Additions 387.7 415.7

Settled ( 364.8 ) ( 448.5 )

Balance at end of the year $ 66.2 $ 43.3

(12) Income Taxes

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Total earnings (loss) before income taxes $ 497.0 $ ( 1,709.1 ) $ 261.5

$ ( 1,709.1 ) 261.5 581.9

AND SUBSIDIARIES

Notes to Consolidated Financial Statements — (Continued)

Income taxes attributable to Earnings (loss) before income taxes are:

8 unchanged sentences

( 20.6 ) ( 243.5 ) ( 130.1 )

Total income (benefit) taxes $ ( 221.3 ) 58.5 146.6

AND SUBSIDIARIES

Notes to Consolidated Financial Statements — (Continued)

Total tax expense (benefit) $ 102.6 $ ( 221.3 ) $ 58.5

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

9 unchanged sentences

Research and development tax credits ( 1.5 ) 0.3 ( 3.5 )

Deferred tax rate change — — 6.5

Officers' compensation 0.9 ( 0.3 ) 1.9

Loss on disposal of business 1.0 ( 3.4 ) 1.5

( 3.4 ) 1.5 3.9

Goodwill impairments — ( 11.8 ) —

Other, net ( 0.8 ) 0.5 ( 3.4 )

12.9 % 22.4 % 25.2 %

Tax impact on reconciling items is opposite of the expected result due to the pretax loss in 2023.

AND SUBSIDIARIES

Notes to Consolidated Financial Statements — (Continued)

Effective tax rate 20.7 % 12.9 % 22.4 %

In 2023 the tax impact on reconciling items is the opposite of the expected result due to a pretax loss in the year.

The components of deferred income tax expense (benefit) arise from various temporary differences and relate to items included in the Consolidated Statements of Operations as well as items recognized in other comprehensive earnings.

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities as of December 29, 2024 and December 31, 2023 are as follows:

AND SUBSIDIARIES

Notes to Consolidated Financial Statements — (Continued)

(In millions) 2024 2023

28 unchanged sentences

During 2023, the Company concluded its discussions with the tax authorities in Switzerland as to the application of the grandfathering rules related to TRAF.

This has resulted in the recording of a deferred tax asset of $ 135.6 million related to tax intangibles that will be amortized over time.

This treatment applies starting in 2021.

As of December 31, 2023, the Company has loss and credit carryforwards of $ 461.9 million, which is an increase of $ 286.6 million from $ 175.3 million at December 25, 2022.

This resulted in the recording of a deferred tax asset of $ 135.6 million related to tax intangibles that will be amortized over time.

This treatment began to apply starting in 2021.

As of December 29, 2024, the Company has loss and credit carryforwards of $ 426.6 million, which is a decrease of $ 35.3 million from $ 461.9 million at December 31, 2023.

The most significant amount of the loss and credit carryforwards as of December 29, 2024 relates to U.S.

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federal, state and international loss and credit carryforwards expire at various dates throughout 2025 while others have an indefinite carryforward period.

AND SUBSIDIARIES

Notes to Consolidated Financial Statements — (Continued)

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 Operations.

The Company has a valuation allowance for certain net deferred tax assets at December 31, 2023 of $ 432.0 million, which is an increase of $ 242.2 million from $ 189.8 million at December 25, 2022.

The increase primarily pertains to a U.S.

capital loss resulting from the sale of the Company's eOne Film and TV business, for which the Company recorded a valuation allowance of $ 364.8 million in 2023.

The increase was offset by a decrease to the valuation allowance related to entities in certain jurisdictions which were sold as part of the sale of the eOne Film and TV business.

As of December 31, 2023 and December 25, 2022, the Company’s net deferred income taxes are recorded in the Consolidated Balance Sheets as follows:

AND SUBSIDIARIES

Notes to Consolidated Financial Statements — (Continued)

The Company has a valuation allowance for certain net deferred tax assets at December 29, 2024 of $ 412.5 million, which is a decrease of $ 19.5 million from $ 432.0 million at December 31, 2023.

The decrease primarily pertains to adjustments to the U.S.

capital loss resulting from the sale of the Company's eOne Film and TV business, for which the Company recorded a full valuation allowance as of December 29, 2024.

Tax laws are regularly being re-examined and evaluated globally.

The Organization for Economic Co-operation and Development ("OECD") has a framework to implement a global minimum corporate tax of 15% for companies with global revenues and profits above certain thresholds (referred to as "Pillar 2").

Certain aspects of Pillar 2 were effective in 2024, which were not material to the Company’s financial statements, and other aspects are effective January 1, 2025.

Many non-US tax jurisdictions have either (i) enacted legislation to adopt certain components of Pillar 2 beginning in 2024 (including the European Union Member States) with delayed adoption of other components;

or (ii) announced their plans to enact legislation in future years.

We continue to evaluate the impacts of enacted and pending legislation related to Pillar 2 in our non-US tax jurisdictions.

The Company’s net deferred income taxes are recorded in the Consolidated Balance Sheets as follows:

(In millions) 2024 2023

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We will record these additional tax effects, if any, in the period that we complete our analysis and are able to make a reasonable estimate.

A reconciliation of unrecognized tax benefits, excluding potential interest and penalties, for the fiscal years ended 2023, 2022, and 2021 is as follows:

A reconciliation of unrecognized tax benefits, excluding potential interest and penalties is as follows:

(In millions) 2024 2023 2022

4 unchanged sentences

Gross increases in current period tax positions 3.6 3.8 28.6

Decrease related to settlements with tax authorities ( 8.4 ) — ( 2.7 )

Decreases from the expiration of statute of limitations ( 11.4 ) ( 2.1 ) ( 7.7 )

Decreases related to settlements with tax authorities ( 1.5 ) ( 8.4 ) —

Decreases from the expiration of statutes of limitations ( 4.4 ) ( 11.4 ) ( 2.1 )

Balance at end of year $ 36.1 $ 39.9 $ 77.8

1 unchanged sentence

If recognized, these tax benefits may have affected our income tax provision for fiscal years 2024, 2023, and 2022 by approximately $ 44.0 million, $ 46.0 million, and $ 53.0 million, respectively.

During 2023, 2022, and 2021, the Company recognized $ 5.8 million, $ 2.2 million, and $ 2.6 million, respectively, of potential interest and penalties, which are included as a component of Income taxes in the

During 2024, 2023, and 2022, the Company recognized $ 2.9 million, $ 5.8 million, and $ 2.2 million, respectively, of potential interest and penalties, which are included as a component of Income taxes in the accompanying Consolidated Statements of Operations.

As of December 29, 2024, December 31, 2023, and December 25, 2022, the Company had accrued potential interest and penalties of $ 7.7 million, $ 6.2 million, and $ 8.8 million, respectively.

AND SUBSIDIARIES

Notes to Consolidated Financial Statements — (Continued)

accompanying Consolidated Statements of Operations.

As of December 31, 2023, December 25, 2022, and December 26, 2021, the Company had accrued potential interest and penalties of $ 6.2 million, $ 8.8 million, and $ 7.3 million, respectively.

The Company and its subsidiaries file income tax returns in the United States and various state and international jurisdictions.

9 unchanged sentences

jurisdictions.

The Company believes it is reasonably possible that a decrease of approximately $ 0.0 million - $ 4.0 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.

The Company believes it is reasonably possible that a decrease of approximately $ 0.0 million - $ 2.0 million in gross unrecognized tax benefits may be necessary within the coming year as a result of expected tax return settlements and lapse of statutes of limitations.

(13) Capital Stock

The Company has a long history of increasing shareholder value through its share repurchase program.

Purchases of the Company’s common stock may be made from time to time, subject to market conditions, and may be made in the open market or through privately negotiated transactions.

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

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 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.

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

In 2023, the Company has been focused on increasing strategic investment in its most valuable and profitable franchises, while exiting certain non-core businesses, and as such, no shares were repurchased.

As of December 31, 2023, $ 241.6 million remained under the current authorization.

No shares were repurchased during 2024 and 2023.

(14) Fair Value of Financial Instruments

17 unchanged sentences

Derivatives $ 1.7 $ — $ 1.7 $ —

Option agreement 1.7 — — 1.7

Total liabilities $ 1.7 $ — $ 1.7 $ —

9 unchanged sentences

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

The Company's option agreement relates to an equity method investment in Discovery Family Channel.

The option agreement is included in Other liabilities as of December 31, 2023 and December 25, 2022, and is valued using an option pricing model based on the fair value of the related investment.

Inputs used in the option pricing model include volatility and fair value of the underlying company which are considered unobservable inputs as they reflect the Company’s own assumptions about the inputs that market participants would use in pricing the asset or liability.

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

See note 7 for more information on the Company's investment in the Discovery Family Channel.

The following is a reconciliation of the beginning and ending balances of the fair value measurements of the Company’s financial instruments which use significant unobservable inputs (Level 3):

(In millions) 2023 2022

Balance at beginning of year $ ( 1.7 ) ( 1.7 )

Balance at end of year $ ( 1.7 ) ( 1.7 )

(15) Stock Options, Other Stock Awards and Warrants

The Company has reserved 8.7 million shares of its common stock for issuance upon exercise of options and other awards granted or to be granted under stock incentive plans for employees and for non-employee members of

AND SUBSIDIARIES

Notes to Consolidated Financial Statements — (Continued)

the Board of Directors (collectively, the “plans”).

The Company's option agreement as of December 31, 2023 related to the equity method investment in DFC and was included in Other liabilities.

Due to the 2024 revaluation of DFC and resulting impairment charges, the Company reduced the option's fair value to zero during 2024.

See Note 8, Equity Method Investment, for more information on the Company's investment in DFC.

(15) Share-Based Awards

The Company has reserved 7.7 million shares of its common stock for issuance upon exercise of options and other awards granted or to be granted under stock incentive plans for employees and for non-employee members of the Board of Directors (collectively, the “Plans”).

These awards generally vest and are expensed in equal annual amounts over three to five years .

3 unchanged sentences

The Company’s current plan permits the granting of awards in the form of stock, stock appreciation rights, stock awards and cash awards in addition to stock options.

Total compensation expense related to stock options, restricted stock units, including those awards made to non-employee members of its Board of Directors, and stock performance awards for the years ended December 31, 2023, December 25, 2022 and December 26, 2021 was $ 71.9 million, $ 81.3 million and $ 97.8 million, respectively, and was recorded as follows:

Total compensation expense related to stock options, restricted stock units, including those awards made to non-employee members of its Board of Directors, and stock performance awards during 2024, 2023 and 2022 was $ 50.8 million, $ 71.9 million and $ 81.3 million, respectively, and was recorded as follows:

AND SUBSIDIARIES

Notes to Consolidated Financial Statements — (Continued)

(In millions) 2024 2023 2022

1 unchanged sentence

Selling, distribution and administration 40.6 64.9 76.5

64.9 76.5 94.1

Total stock compensation expense before income taxes 50.8 71.9 81.3

1 unchanged sentence

Total stock compensation expense after income taxes $ 43.6 $ 62.7 $ 72.3

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 31, 2023, December 25, 2022 and December 26, 2021:

(In millions) 2024 2023 2022

9 unchanged sentences

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 2026, December 2025, and December 2024 for the 2024, 2023 and 2022 awards, respectively.

The 2021 and 2022 Stock Performance Awards are measured based on achieving targets set for diluted earnings per share, revenue and return on invested capital ("ROIC").

The 2022 Stock Performance Awards are measured based on achieving targets set for diluted earnings per share, revenue and return on invested capital ("ROIC").

The 2023 Stock Performance Awards are measured based on achieving targets set for diluted earnings per share and ROIC, in addition to a relative Total Shareholder Return ("TSR") modifier ranking as compared to the S&P 500, to determine the number of shares earned at the end of the performance period.

The 2024 Stock Performance Awards are measured based on achieving targets set for diluted earnings per share, in addition to a TSR modifier ranking as compared to the S&P 500, to determine the number of shares earned at the end of the performance period.

The ultimate amount of the award may vary from 0 % to 250 % of the target number of shares, depending on the cumulative results achieved.

AND SUBSIDIARIES

Notes to Consolidated Financial Statements — (Continued)

Information with respect to Stock Performance Awards for 2023, 2022 and 2021 is as follows:

Information with respect to Stock Performance Awards is as follows:

(In millions, except per share data) 2024 2023 2022

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Outstanding at end of year $ 61.07 $ 70.15 $ 78.15

Shares canceled in 2023 and 2021 represent Stock Performance Awards granted during 2020 and 2019, respectively, that were canceled based on the failure to meet the targets set forth by the agreements.

AND SUBSIDIARIES

Notes to Consolidated Financial Statements — (Continued)

Shares canceled in 2023 represent Stock Performance Awards granted during 2020 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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If minimum targets as detailed under the award are not met, no additional compensation expense will be recognized and any previously recognized compensation expense will be reversed.

During 2023, 2022 and 2021, the Company recognized expense, net of performance adjustments, of $ 15.8 million, $ 9.6 million and $ 26.9 million, respectively, relating to Stock Performance Awards.

The expense recognized in 2021 included $ 7.6 million of additional stock expense associated with the contractual acceleration of outstanding performance share awards upon the passing of the Company's former CEO.

During 2024, 2023 and 2022, the Company recognized (income) expense, net of performance adjustments, of $( 6.4 ) million, $ 15.8 million and $ 9.6 million, respectively, relating to Stock Performance Awards.

During 2024, the Company corrected prior period errors associated with a $ 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.

See Note 1, Summary of Significant Accounting Policies for additional information.

As of December 29, 2024, the amount of total unrecognized compensation cost related to these awards is approximately $ 18.3 million and the weighted average period over which this will be expensed is 21 months.

AND SUBSIDIARIES

Notes to Consolidated Financial Statements — (Continued)

Restricted Stock Units

The Company, as part of its annual equity grant to executive officers and certain other employees, issues restricted stock or grants restricted stock units.

These shares or units are nontransferable and subject to forfeiture for periods prescribed by the Company.

These shares or units are nontransferable and subject to forfeiture or vesting for periods prescribed by the Company.

These awards are valued at the market value of the underlying common stock at the date of grant and are subsequently amortized over the periods during which the restrictions lapse, generally three years .

During 2024, 2023 and 2022, the Company recognized compensation expense, net of forfeitures, on these awards of $ 51.0 million, $ 47.8 million and $ 60.7 million, respectively.

The expense recognized in 2021 included $ 6.0 million of additional stock expense associated with the contractual acceleration of outstanding restricted stock awards upon the passing of the Company's former CEO.

As of December 29, 2024, the amount of total unrecognized compensation cost related to restricted stock units is $ 88.7 million and the weighted average period over which this will be expensed is 24 months.

Information with respect to the remaining Restricted Stock Awards and Restricted Stock Units for 2023, 2022 and 2021 is as follows:

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

(In millions, except per share data) 2024 2023 2022

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Outstanding at end of year $ 56.04 66.08 88.85

AND SUBSIDIARIES

Notes to Consolidated Financial Statements — (Continued)

Stock Options

Information with respect to stock options for each of the three fiscal years ended December 31, 2023 is as follows:

Information with respect to stock options is as follows:

(In millions, except per share data) 2024 2023 2022

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Exercisable at end of year $ 83.94 $ 93.96 $ 92.95

With respect to the 2.3 million outstanding options and 0.9 million options exercisable at December 31, 2023, the weighted average remaining contractual life of these options was 4.86 years and 3.07 years, respectively, all of which have no intrinsic value.

With respect to the 1.5 million outstanding options and 1.0 million options exercisable at December 29, 2024, the weighted average remaining contractual life of these options was 3.88 years and 3.26 years, respectively.

The intrinsic value of the outstanding options and options exercisable at December 29, 2024 was $ 0.6 million and $ 0.2 million, respectively.

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)

and has been determined based on historical exercise experience.

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.

The weighted average fair value of options granted in fiscal 2024, 2023, and 2022 was $ 11.74 , $ 12.73 , and $ 22.10 , respectively.

There was a de minimis amount of options granted in fiscal 2024.

The fair value of each option grant is estimated on the date of grant using the Black-Scholes option pricing model with the following weighted average assumptions used for grants in the fiscal years 2024, 2023, and 2022:

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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 $ 1.3 million, $ 2.1 million and $ 1.6 million was recorded in Selling, distribution and administration expense for the fiscal years ended 2023, 2022 and 2021, respectively.

(16) Pension, Postretirement and Postemployment Benefits

In connection with these grants, compensation cost of $ 1.8 million, $ 1.3 million and $ 2.1 million was recorded in Selling, distribution and administration expense during 2024, 2023 and 2022, respectively.

AND SUBSIDIARIES

Notes to Consolidated Financial Statements — (Continued)

(16) Retirement Plans

Pension and Postretirement Benefits

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Reclassifications to earnings from AOCE related to pension and postretirement plans are recorded to Other expense (income).

Expenses related to the Company’s defined benefit pension and defined contribution plans for 2023, 2022 and 2021 were approximately $ 44.9 million, $ 45.5 million and $ 49.3 million, respectively.

Of these amounts, $ 40.9 million, $ 39.5 million and $ 42.7 million, respectively, related to defined contribution plans in the United States and certain international subsidiaries.

The remainder of the expense relates to defined benefit pension plans discussed below.

Expenses related to the Company’s defined benefit pension plans for 2024, 2023 and 2022 were approximately $ 3.0 million, $ 4.0 million and $ 6.0 million, respectively, and were recorded within Other expense (income).

United States Plans

Prior to 2008, substantially all United States employees were covered under at least one of several non-contributory defined benefit pension plans maintained by the Company.

Benefits under the two major plans which principally covered non-union employees, were based primarily on salary and years of service.

Benefits under the remaining plans are based primarily on fixed amounts for specified years of service.

In 2007, for the two major plans covering its non-union employees, the Company froze benefits being accrued effective at the end of December 2007.

Following the August 2015 sale of its manufacturing facility in East Longmeadow, MA, the Company elected to freeze benefits related to its major plan covering union employees.

Effective January 1, 2016, the plan covering union employees merged with and into the Hasbro Inc.

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.

defined benefit pension plan (“U.S.

Pension Plan”).

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

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

During the second quarter of 2019, the Company settled all remaining benefits 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.

Pension Plan's net funded asset position was sufficient to cover the lump sum payments and the purchase of the group annuity contract and settle all other remaining benefit obligations with no additional cost to the Company.

After the settlement of the benefit obligations and payment of expenses, the Company had excess assets in the U.S.

Pension Plan of approximately $ 20.2 million.

The Company elected to utilize the remaining surplus after payment of administrative expenses for the Company's future matching contributions under the Company's 401(k) plan.

The Company made a transfer of $ 19.5 million to the Company’s 401(k) plan which occurred in February 2020, with the remainder transferred in November 2021.

Upon settlement of the pension liability, which occurred in May 2019, the Company recognized a non-operating settlement charge of $ 110.8 million, with an additional settlement charge of $ 0.2 million in December 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.

During 2020, the Company merged its employee retirement agreements, which had beginning benefit liabilities of $ 14.8 million, with its remaining US pension plans.

As of December 31, 2023, the measurement date, the Company's remaining plans were unfunded with an aggregate accumulated and projected benefit obligation of $ 30.1 million.

The Company also provides certain postretirement health care and life insurance benefits to eligible employees who retired prior to January 1, 2020 and have either attained age 65 with 5 years of service or age 55 with 10 years of service.

The cost of providing these benefits on behalf of employees who retired prior to 1993 has been substantially borne by the Company.

The cost of providing benefits to all eligible employees who retire after 1992 is borne by the employee.

The plan is not funded.

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 31, 2023, the Company had unrecognized gains related to its remaining U.S.

pension and postretirement plans of $ 1.4 million.

AND SUBSIDIARIES

Notes to Consolidated Financial Statements — (Continued)

Reconciliations of the beginning and ending balances for the projected benefit obligation, the fair value of plan assets and the funded status are included below for the years ended December 31, 2023 and December 25, 2022.

The Company sponsors a defined benefit retirement plan, which pays benefits to eligible employees at the time of retirement, using actuarial formulas based upon a participant’s years of credited service and compensation.

The plan is closed and frozen to all employees.

The Company also provides certain postretirement health care and life insurance benefits to eligible employees, primarily employees who retired prior to January 1, 2020.

Amounts related to the defined benefit retirements plan and other postretirement plans recognized in the Company’s consolidated financial statements are determined on an actuarial basis.

Reconciliations of the beginning and ending balances for the projected benefit obligation, the fair value of plan assets and the funded status are included below.

Pension Postretirement

3 unchanged sentences

Interest cost 1.5 1.6 1.0 1.1

Actuarial loss (gain)

1.5 ( 9.3 ) 1.1 ( 7.6 )

Actuarial (gain) loss ( 0.4 ) 1.5 ( 0.9 ) 1.1

Benefits paid ( 3.5 ) ( 3.3 ) ( 1.6 ) ( 1.6 )

Plan amendments — — — —

Curtailments — — 0.9 —

Projected benefit obligation — ending $ 27.7 $ 30.1 $ 19.6 $ 20.2

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Unrecognized net loss (earnings) 4.1 4.6 ( 2.5 ) ( 2.6 )

4.6 3.2 ( 2.6 ) ( 3.8 )

Net amount $ ( 23.6 ) $ ( 25.5 ) $ ( 22.3 ) $ ( 23.4 )

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Net amount $ ( 23.6 ) $ ( 25.5 ) $ ( 22.3 ) $ ( 23.4 )

AND SUBSIDIARIES

Notes to Consolidated Financial Statements — (Continued)

Assumptions used to determine the year-end pension and postretirement benefit obligations are as follows:

Weighted average discount rate 5.67 % 5.23 %

Mortality table PriH-2012/Scale

MP - 2021 PriH-2012/Scale

Mortality table PriH-2012/Scale MP - 2021 PriH-2012/Scale

Postretirement

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Year that the rate reaches the ultimate trend 2033 2031

AND SUBSIDIARIES

Notes to Consolidated Financial Statements — (Continued)

The following presents detail of the components of the net periodic benefit cost for the three years ended December 31, 2023.

The following presents detail of the components of the net periodic benefit cost:

(In millions) 2024 2023 2022

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Amortization of actuarial loss 0.1 — 0.8

Curtailment/Settlement losses — — 0.5

Curtailment/Settlement (gain) loss — — —

Net periodic benefit cost $ 1.6 $ 1.6 $ 1.9

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Interest cost $ 1.0 $ 1.1 $ 0.8

Amortization of service cost ( 0.3 ) ( 0.3 ) —

Amortization of actuarial loss ( 0.2 ) 0.1 —

Amortization of service credit ( 0.2 ) ( 0.3 ) ( 0.3 )

Amortization of actuarial (gain) loss ( 0.1 ) ( 0.2 ) 0.1

Curtailment/Settlement (gain) loss ( 0.2 ) — —

Net periodic benefit cost $ 0.5 $ 0.6 $ 0.6

Assumptions used to determine net periodic benefit cost of the pension plan and postretirement plan for each fiscal year follow:

Assumptions used to determine net periodic benefit cost of the pension plans and postretirement plan is as follows:

2024 2023 2022

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Year that the rate reaches the ultimate trend rate 2031 2031 2025

Expected benefit payments under the defined benefit pension plans and the postretirement benefit plan for the next five years subsequent to 2023 and in the aggregate for the following five years are as follows:

AND SUBSIDIARIES

Notes to Consolidated Financial Statements — (Continued)

During fiscal 2025, Hasbro expects to make contributions of $ 2.9 million and $ 1.7 million for the defined benefit pension plans and post-retirement plans, respectively, primarily to fund benefit payments.

Expected benefit payments under the defined benefit pension plans and the postretirement benefit plans for the next five years subsequent to 2024 and in the aggregate for the following five years are as follows:

(In millions) Pension Postretirement

2025 $ 2.9 $ 1.7

2030 through 2034 11.6 6.9

International Plans

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The pension expense related to these plans was $ 0.8 million, $ 1.3 million and $ 3.1 million in 2024, 2023 and 2022, respectively.

In fiscal 2024, the Company expects

AND SUBSIDIARIES

Notes to Consolidated Financial Statements — (Continued)

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.

In fiscal 2024, the Company expects 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 2024 and in the aggregate for the five years thereafter are as follows:

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$ 19.3 million.

Postemployment Benefits

Post-employment Benefits

Hasbro has several plans covering certain groups of employees, which may provide benefits to such employees following their period of active employment but prior to their retirement.

These plans include certain severance plans which provide benefits to employees involuntarily terminated and certain plans which continue the Company’s health and life insurance contributions for employees who have left Hasbro’s employ under terms of its long-term disability plan.

Defined Contribution Plan

Hasbro maintains defined contribution savings plans for the benefit of its eligible employees.

The expense recognized for these plans was $ 39.5 million, $ 40.9 million, and $ 39.5 million in 2024, 2023 and 2022, respectively.

The Company occupies offices and uses certain equipment under various operating lease arrangements.

The Company has no finance leases.

The leases have remaining terms of 1 to 15 years, some of which include options to extend lease terms or options to terminate current lease terms at certain times, subject to notice requirements set out in the lease agreement.

The Company has a de minimis amount of finance leases.

The operating leases have remaining terms of 1 to 14 years, some of which include options to extend lease terms or options to terminate current lease terms at certain times, subject to notice requirements set out in the lease agreement.

Payments under certain of the lease agreements may be subject to adjustment based on a consumer price index or other inflationary indices.

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Leases with an expected term of 12 months or less are not capitalized.

Lease expense under such leases is recorded straight line over the life of the lease.

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 $ 89.5 million, $ 93.9 million and $ 88.2 million, respectively, for each of the years ended 2023, 2022 and 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.

Lease expense under such leases is recorded straight line over the life of the lease of which the Company recognized $ 0.5 million, $ 0.6 million, and $ 0.1 million for the years ended 2024, 2023 and 2022, respectively.

The Company capitalizes non-lease components for equipment leases, but expenses non-lease components as incurred for real estate, which amounted to $ 8.2 million, $ 11.3 million, and $ 11.7 million in 2024, 2023 and 2022, respectively.

Operating lease costs for capitalized leases, net of sublease income, amounted to $ 35.4 million, $ 44.2 million and $ 46.2 million for each of the years ended 2024, 2023 and 2022, respectively.

During 2024, 2023 and 2022, rent

AND SUBSIDIARIES

Notes to Consolidated Financial Statements — (Continued)

expense for arrangements that do not qualify as leases under ASU 2016-02 Leases amounted to $ 26.4 million, $ 33.4 million, and $ 35.9 million, respectively.

All leases expire prior to 2039.

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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 31, 2023 and December 25, 2022 is as follows:

Year Ended Year Ended Year Ended

(In millions) December 31, 2023 December 25, 2022 December 26, 2021

Information related to the Company's leases are as follows:

(In millions) 2024 2023 2022

Cash paid for amounts included in the measurement of lease liabilities:

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Operating leases 4.0 % 3.8 % 3.4 %

AND SUBSIDIARIES

Notes to Consolidated Financial Statements — (Continued)

The following is a reconciliation of future undiscounted cash flows to the operating liabilities, and the related right of use assets, included in our Consolidated Balance Sheets as of December 29, 2024:

(In millions) December 31, 2023

(In millions) 2024

2030 and thereafter 51.0

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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.

These over-the-counter contracts, which hedge future currency requirements related to purchases of inventory, product sales, and television and film production cost 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.

1 unchanged sentence

Hasbro does not enter into derivative financial instruments for speculative purposes.

AND SUBSIDIARIES

Notes to Consolidated Financial Statements — (Continued)

Cash Flow Hedges

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Sales 86.0 ( 1.4 ) 89.7 ( 0.2 )

Production financing and other 31.7 ( 0.5 ) 116.8 1.5

Other 22.8 0.9 31.7 ( 0.5 )

Total $ 240.3 $ 7.5 $ 251.3 $ ( 2.4 )

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.

The fair values of the Company’s foreign currency forward contracts designated as cash flow hedges are recorded in the Consolidated Balance Sheets at December 31, 2023 and December 25, 2022 as follows:

The fair values of the Company’s foreign currency forward contracts designated as cash flow hedges are recorded in the Consolidated Balance Sheets as follows:

(In millions) 2024 2023

3 unchanged sentences

Net unrealized gains $ 8.0 $ 0.4

Unrealized gains $ — 0.3

Unrealized losses — —

Net unrealized gains $ — 0.3

Accrued liabilities

2 unchanged sentences

Net unrealized losses $ ( 0.5 ) $ ( 2.8 )

Net gains (losses) on cash flow hedging activities have been reclassified from other comprehensive earnings (loss) to net earnings for the years ended December 31, 2023, December 25, 2022 and December 26, 2021 as follows:

Net gains (losses) on cash flow hedging activities have been reclassified from other comprehensive earnings (loss), net of tax, to net earnings as follows:

(In millions) 2024 2023 2022

3 unchanged sentences

Other 0.2 ( 2.2 ) ( 0.9 )

Net realized (losses) gains $ ( 3.1 ) 18.7 ( 1.7 )

Net realized gains (losses) $ 0.3 $ ( 3.1 ) $ 18.7

Undesignated Hedges

5 unchanged sentences

Notes to Consolidated Financial Statements — (Continued)

As of December 31, 2023 and December 25, 2022, the fair value of the Company’s undesignated derivative financial instruments are recorded in the Consolidated Balance Sheets as follows:

The fair value of the Company’s undesignated derivative financial instruments is recorded in the Consolidated Balance Sheets as follows:

(In millions) 2024 2023

7 unchanged sentences

Net unrealized losses $ ( 1.2 ) $ ( 1.1 )

Total unrealized (losses) gains, net $ ( 0.8 ) 5.0

The Company recorded net gains of $ 23.4 million, $ 42.1 million and $ 4.6 million on these instruments to Other expense (income), net for 2023, 2022 and 2021, 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.

AND SUBSIDIARIES

Notes to Consolidated Financial Statements — (Continued)

Total unrealized gains (losses), net $ 0.5 $ ( 0.8 )

The Company recorded net losses of $ 3.3 million, and net gains of $ 23.4 million and $ 42.1 million on these instruments to Other expense (income), net for 2024, 2023 and 2022, 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 Note 5, Other Comprehensive Earnings (Loss), and Note 14, Fair Value of Financial Instruments.

(19) Restructuring Actions

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 31, 2023, the Company had a remaining balance of $ 2.5 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 $ 2.6 million in fiscal 2023.

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

During 2022, in support of Blueprint 2.0, Hasbro announced an Operational Excellence program ("the Program"), an ongoing enterprise-wide initiative intended to improve our business through specialized organizational programs that include targeted cost-savings, supply chain transformation and certain other restructuring actions designed to drive growth and enhance shareholder value.

In January 2023, in connection the Program we announced the elimination of approximately 1,000 positions from our global workforce, or approximately 15 % of global full-time employees.

In December 2023, following a further review of the Company’s cost structure and organizational design, the Company announced additional strategic steps to position the business for future growth, including a revised organizational structure as well as additional headcount reductions.

The Company’s organizational structure changes will result in the reallocation of people and resources, which will include voluntary early retirement for certain groups of employees and additional involuntary reductions in employees (“Additional Actions”).

The Company currently anticipates that approximately 900 incremental positions will be eliminated as part of the Additional Actions, which are expected to be substantially completed over the next 18 to 24 months.

Starting in 2022, Hasbro implemented its Operational Excellence program ("the Program"), an ongoing enterprise-wide initiative intended to improve our business through programs that include targeted cost-savings, supply chain transformation and certain other restructuring actions designed to drive growth and enhance shareholder value.

The Company's organizational structure changes have resulted and will further result in workforce reductions as well as the reallocation of people and resources.

The Company currently anticipates that these changes will be substantially complete over the next twelve months .

Charges related to the Program were recorded in Selling, distribution and administration expense within Corporate and Other.

These actions are expected to be substantially complete by the end of 2024.

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 December 31, 2023, the liability balance associated with Program related restructuring actions consisted of severance payments recorded within Other accrued liabilities in the Consolidated Balance Sheets as follows:

(In millions) Total

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

(In millions) 2024 2023

Operational Excellence:

Balance at December 25, 2022

Balance at beginning of the year $ 81.2 $ 84.9

Charges 22.2 38.2

Payments ( 56.5 ) ( 41.9 )

Balance at December 31, 2023

Balance at end of the year $ 46.9 $ 81.2

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 plan as of December 29, 2024:

4 unchanged sentences

Total expected charges on approved initiatives $ 154.5

(20) Commitments and Contingencies

Hasbro had unused open letters of credit and related instruments of approximately $ 13.3 million and $ 11.9 million at December 31, 2023 and December 25, 2022, respectively.

AND SUBSIDIARIES

Notes to Consolidated Financial Statements — (Continued)

(20) Commitments and Contingencies

Contingencies:

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

17 unchanged sentences

$ 683.5 million.

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 with the right of first refusal to purchase, distribute, or license certain entertainment projects or content.

4 unchanged sentences

As of December 29, 2024, the Company estimates payments related to inventory and tooling purchase commitments may total approximately $ 209.5 million.

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

The Company has estimated 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.

See Note 17, Leases, for additional information on the Company's future lease payment commitments.

See Note 11, Long-Term Debt and Other Financing, for additional information on the Company's long-term debt.

Legal and Other Claims:

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

Amounts accrued, as well as the total amount of reasonably possible losses with respect to such matters, individually and in the aggregate, are not deemed to be material to the consolidated financial statements.

See note 17 for additional information on the Company's future lease payment commitments.

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

The Company from time to time may be subject to lawsuits and other claims related to product, commercial, employee, environmental and other matters in the normal course of business.

In determining costs to accrue related to these items, the Company carefully analyzes cases and considers the likelihood of adverse judgments or outcomes, as well as the potential range of possible loss.

The Company accrues for matters when losses are both probable and estimable.

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.

(21) Segment Reporting

Segment and Geographic Information

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.

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

The Company's reportable segments are strategic business units that offer different products and services.

They are managed separately because the business requires different technology and marketing strategies.

The Company's reportable segments are as follows:

• The Consumer Products segment engages in the sourcing, marketing and sales of toy and game products around the world.

The Consumer Products business also promotes the Company's brands through the out-licensing of our trademarks, characters and other brand and intellectual property rights to third parties, through the sale of branded consumer products such as toys and apparel.

The Consumer Products business also promotes the Company's brands through the out-licensing of our trademarks, characters and other brand and intellectual property rights to third parties,

AND SUBSIDIARIES

Notes to Consolidated Financial Statements — (Continued)

through the sale of branded consumer products such as toys and apparel.

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

• The Wizards of the Coast and Digital Gaming business engages in the promotion of the Company's brands through the development of trading card, role-playing and digital game experiences based on Hasbro and Wizards of the Coast games.

Additionally, we out-license certain of our brands to other third-party digital game developers who transform Hasbro brand-based characters and other intellectual properties, into digital gaming experiences.

Additionally, we license certain of our brands to other third-party digital game developers who transform Hasbro brand-based characters and other intellectual properties, into digital gaming experiences.

• The Entertainment segment engages in the development and production of Hasbro-branded entertainment content including film, television, children’s programming, digital content and live entertainment focused on Hasbro-owned properties.

Corporate and Other, which does not meet the criteria to be an operating segment, provides management and administrative services to the Company's principal reporting segments described above and consists of unallocated corporate expenses and administrative costs and activities not considered when evaluating segment performance as well as certain assets benefiting more than one segment.

Segment performance is measured at the operating profit level.

Included in Corporate and Other are certain corporate expenses, including the elimination of intersegment transactions and certain assets benefiting more than one segment.

Intersegment sales and transfers are reflected in management reports at amounts approximating cost.

Certain shared costs, including global development and marketing expenses and corporate administration, are allocated to segments based upon expenses and foreign exchange rates fixed at the beginning of the year, with

AND SUBSIDIARIES

Notes to Consolidated Financial Statements — (Continued)

adjustments to actual expenses and foreign exchange rates included in Corporate and Other.

The accounting policies of the segments are the same as those referenced in note 1.

The accounting policies of the segments are the same as those referenced in Note 1, Summary of Significant Accounting Policies.

The chief operating decision maker ("CODM"), the Company's Chief Executive Officer, primarily uses the segments' operating profit or loss to allocate resources for each segment predominantly in the annual budget and forecasting process.

The CODM considers budget-to-actual variances on a monthly basis when making decision about resources to the segments.

Results shown for fiscal years 2024, 2023 and 2022 are not necessarily those which would be achieved if each segment was an unaffiliated business enterprise.

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

(In millions) Revenues

Customers Affiliate

Revenue Depreciation

Amortization Capital

Additions Total

Consumer Products (a)

$ 2,886.4 279.9 130.0 60.0 6,456.2

Wizards of the Coast and Digital Gaming 1,457.6 183.6 27.8 122.5 4,340.5

Entertainment (a)(b)

659.3 51.8 28.5 0.4 3,507.7

Corporate and Other (b)

— ( 515.3 ) 24.4 26.4 ( 7,763.5 )

Consolidated Total $ 5,003.3 — 210.7 209.3 6,540.9

Consumer Products (a)

$ 3,572.5 396.7 152.5 87.0 5,757.7

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

Entertainment (a)(b)

959.1 57.5 43.8 6.9 6,273.3

Corporate and Other (b)

Information by segment and a reconciliation to reported amounts are as follows for fiscal year 2024:

(In millions) Consumer Products Wizards of the Coast and Digital Gaming Entertainment Corporate and Other Total

Revenues $ 2,786.1 $ 1,666.0 $ 132.6 $ 161.2 $ 4,745.9

Intersegment revenue 242.2 154.7 52.3 161.2 610.4

Total net revenues 2,543.9 — 1,511.3 — 80.3 — — — 4,135.5

Cost of sales (1)

931.2 269.9 5.8 ( 27.4 ) 1,179.5

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

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

Wizards of the Coast and Digital Gaming 1,286.6 121.6 48.5 35.1 1,585.1

Entertainment (b)

Program cost amortization — — 49.3 — 49.3

Royalties 297.3 42.3 ( 58.5 ) 3.1 284.2

Advertising 223.3 95.2 1.0 — 319.5

Amortization of intangible amortization 44.5 8.2 15.3 0.3 68.3

Distribution (2)

165.7 31.4 — 2.1 199.2

Corporate and Other (b)

Managed expense (1) (3)

766.6 432.3 69.0 77.6 1,345.5

Consolidated Total $ 6,420.4 — 280.1 132.7 10,037.8

(In millions) 2023

Operating profit (loss) $ 115.3 — $ 632.0 — $ ( 1.6 ) — $ ( 55.7 ) — $ 690.0

Consumer Products

$ ( 64.7 ) 217.3 401.4

Wizards of the Coast and Digital Gaming 525.7 538.3 547.0

Entertainment (b)

Reconciliation to Earnings (loss) before income taxes:

Interest expense 171.2

Interest income ( 47.3 )

Other expense (income), net 69.1

Earnings (loss) before income taxes $ 497.0

(1) During December 29, 2024, the Company recorded two non-recurring prior year adjustments:

(i) a $ 31.1 million expense related to historical environmental exposures that was recorded in managed expense and (ii) a $ 26.7 million benefit related to over-accrual of vendor commitment liabilities that was recorded in Cost of sales.

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 Corporate and Other.

(2) Distribution expenses consist of shipping and warehousing expense and is included in Selling, distribution and administration in the Consolidated Statement of Operations.

AND SUBSIDIARIES

Notes to Consolidated Financial Statements — (Continued)

(3) Managed expenses consist of product development, selling and administrative expense, and loss on disposal of business.

Product development is included in Product Development in the Consolidated Statement of Operations.

Selling and administrative expense is included in Selling, distribution and administration in the Consolidated Statement of Operations.

Loss on disposal of business is included in Loss on disposal of business in the Consolidated Statement of Operations.

Information by segment and a reconciliation to reported amounts are follows for fiscal year 2023:

(In millions) Consumer Products Wizards of the Coast and Digital Gaming Entertainment Corporate and Other Total

Revenues $ 3,171.1 $ 1,641.2 $ 711.1 $ 187.2 $ 5,710.6

Intersegment revenue 284.7 183.6 51.8 187.2 707.3

Total net revenues 2,886.4 — 1,457.6 — 659.3 — — 5,003.3

Cost of sales 1,371.0 321.9 12.0 1.1 1,706.0

Program cost amortization — 3.5 445.4 — 448.9

Royalties 315.0 57.4 55.8 0.1 428.3

Advertising 227.8 92.6 36.3 1.7 358.4

Amortization of intangible amortization 53.3 7.7 21.4 0.6 83.0

Distribution (1)

197.2 28.2 — 0.2 225.6

Corporate and Other (b)(c)

Managed expense (2)

786.8 420.6 1,999.9 84.6 3,291.9

Operating profit (loss) $ ( 64.7 ) — $ 525.7 $ ( 1,911.5 ) — $ ( 88.3 ) — $ ( 1,538.8 )

( 1,538.8 ) 407.7 763.3

Reconciliation to Earnings (loss) before income taxes:

Interest expense 186.3

186.3 171.0 179.7

Interest income ( 23.0 )

Other expense (income), net 7.0

Earnings (loss) before income taxes $ ( 1,709.1 )

(1) Distribution expenses consist of shipping and warehousing expense and is included in Selling, distribution and administration in the Consolidated Statement of Operations.

(2) Managed expenses consist of product development, selling and administrative expense, goodwill impairment and loss on disposal of business.

Product development is included in Product Development in the Consolidated Statement of Operations.

Selling and administrative expense is included in Selling, distribution and administration in the Consolidated Statement of Operations.

Impairment of goodwill is included in Impairment of goodwill in the Consolidated Statement of Operations.

Loss on disposal of business is included in Loss on disposal of business in the Consolidated Statement of Operations.

Information by segment and a reconciliation to reported amounts are as follows for fiscal year 2022:

(In millions) Consumer Products Wizards of the Coast and Digital Gaming Entertainment Corporate and Other Total

Revenues $ 3,926.4 $ 1,497.6 $ 1,016.6 $ 225.9 $ 6,666.5

Intersegment revenue 353.9 172.5 57.5 225.9 809.8

Total net revenues 3,572.5 — 1,325.1 — 959.1 — — — 5,856.7

Cost of sales 1,586.7 278.6 46.5 — 1,911.8

Program cost amortization — — 555.5 — 555.5

Royalties 385.3 20.5 81.4 5.8 493.0

Advertising 273.4 90.6 21.5 1.8 387.3

Amortization of intangible amortization 68.1 4.7 34.2 ( 1.7 ) 105.3

Distribution (1)

221.2 26.5 — ( 0.1 ) 247.6

Other non-operating expense (income)

Managed expense (2)

820.5 365.9 197.3 364.8 1,748.5

Operating profit (loss) $ 217.3 — $ 538.3 — $ 22.7 — $ ( 370.6 ) — $ 407.7

Reconciliation to Earnings (loss) before income taxes:

Interest expense 171.0

Interest income ( 11.8 )

Other expense (income), net ( 13.0 )

Earnings (loss) before income taxes $ 261.5

$ ( 1,709.1 ) 261.5 581.9

(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 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.

Any differences between actual and budgeted amounts are reflected in Corporate and Other because allocations are translated from the U.S.

Dollar to local currency at budgeted rates when recorded.

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

(1) Distribution expenses consist of shipping and warehousing expense and is included in Selling, distribution and administration in the

AND SUBSIDIARIES

Notes to Consolidated Financial Statements — (Continued)

(c) Corporate and Other Operating profit (loss) includes Operational Excellence related transformation office and consulting fees of $ 35.3 million for the year ended December 31, 2023, 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 in 2024 in line with the planning stages of the final components of the transformation plan.

Corporate and Other Operating Profit (loss) includes other consulting expense of $ 24.7 million for the year ended December 25, 2022, as well as incentive compensation for all periods presented .

The following table represents consolidated Consumer Products segment net revenues by major geographic region for the three fiscal years ended December 31, 2023.

(In millions) 2023 2022 2021

North America $ 1,649.1 2,064.8 2,315.9

Europe 669.5 899.5 1,067.7

Asia Pacific 256.3 293.4 310.1

Latin America 311.5 314.8 287.9

Net revenues $ 2,886.4 3,572.5 3,981.6

The following table represents consolidated Wizards of the Coast and Digital Gaming segment net revenues by category for the three fiscal years ended December 31, 2023:

(In millions) 2023 2022 2021

Tabletop Gaming $ 1,072.5 1,067.0 950.6

Digital and Licensed Gaming 385.1 258.1 336.0

Net revenues $ 1,457.6 1,325.1 1,286.6

The following table represents consolidated Entertainment segment net revenues by category for the three fiscal years ended December 31, 2023 .

(In millions) 2023 2022 2021

Film and TV $ 575.5 837.6 932.5

Family Brands 83.8 79.4 132.9

Music and Other — 42.1 86.8

Net revenues $ 659.3 959.1 1,152.2

The following table presents consolidated net revenues by brand portfolio for the three fiscal years ended December 31, 2023.

Consolidated Statement of Operations.

(2) Managed expenses consist of product development, selling and administrative expense and the loss on disposal of business.

Product development is included in Product Development in the Consolidated Statement of Operations.

Selling and administrative expense is included in Selling, distribution and administration in the Consolidated Statement of Operations.

Loss on disposal of business is included in Loss on disposal of business in the Consolidated Statement of Operations.

Total assets information by segments is as follows:

(In millions) 2024 2023

Franchise Brands

$ 3,256.5 3,350.8 3,541.9

Partner Brands 687.8 1,052.0 1,161.0

Portfolio Brands

521.3 625.2 719.8

Non-Hasbro Branded Film & TV

Consumer Products $ 7,785.2 $ 6,456.2

Wizards of the Coast and Digital Gaming 5,778.4 4,340.5

Entertainment 2,857.8 3,507.7

Corporate and Other (1)

( 10,081.1 ) ( 7,763.5 )

Net revenues $ 5,003.3 5,856.7 6,420.4

Net revenue from Hasbro’s Total Gaming category, including all gaming revenues, most notably DUNGEONS

& DRAGONS, MAGIC:

THE GATHERING and Hasbro Gaming, totaled $ 2,074.4 million, $ 1,997.5 million and $ 2,098.9 million for the years ended December 31, 2023, December 25, 2022 and December 26, 2021, respectively, of which MAGIC:

THE GATHERING contributed $ 1,085.8 million, $ 1,065.2 million and $ 992.1 million.

AND SUBSIDIARIES

Notes to Consolidated Financial Statements — (Continued)

Total $ 6,340.3 $ 6,540.9

(1) Corporate and Other consists of investments in subsidiary and intercompany receivables.

Other supplemental information by segments are as follows:

(In millions) 2024 2023 2022

Depreciation and intangible asset amortization (1)

Consumer Products $ 105.1 $ 130.0 $ 152.5

Wizards of the Coast and Digital Gaming 17.6 27.8 14.6

Entertainment 16.7 28.5 43.8

Corporate and Other 23.6 24.4 21.6

Total $ 163.0 $ 210.7 $ 232.5

Additions to property, plant and equipment

Consumer Products $ 50.6 $ 60.0 $ 87.0

Wizards of the Coast and Digital Gaming 21.8 48.7 6.5

Entertainment 0.1 0.4 6.9

Corporate and Other 14.7 26.4 27.8

Total $ 87.2 $ 135.5 $ 128.2

(1) The amounts of depreciation disclosed by reportable segments are included within cost of sales, distribution and managed expense.

Intangible asset amortization is included within intangible amortization.

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 the 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 are categorized based on their location.

Principal international markets include Europe, Canada, Mexico and Latin America, Australia, China and Hong Kong.

Net revenue to external customers by geographic area were as follows:

(In millions) 2024 2023 2022

2 unchanged sentences

$ 4,135.5 $ 5,003.3 $ 5,856.7

Long-lived assets, which represent property, plant and equipment, by geographic area were as follows:

(In millions) 2024 2023

Long-lived assets

2 unchanged sentences

$ 302.6 $ 334.3

Principal international markets include Europe, Canada, Mexico and Latin America, Australia, China and Hong Kong.

Long-lived assets include property, plant and equipment, goodwill and other intangibles.

Other Information

Hasbro markets its tangible products primarily to customers in the retail sector.

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 2023 and 2022 the Company’s largest customers were Walmart, Inc.

and Amazon.com, Inc.

with sales to each of these customers amounting to 11 % of consolidated net revenues in 2023 and 11 % and 10 %, respectively, of consolidated net revenues during 2022.

In 2021 sales to these customers amounted to 13 % and 11 %, 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.

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

The Company’s reliance on external sources of manufacturing can be shifted, over a period of time, to alternative sources of supply for products it sells, should such changes be necessary.

However, if the Company were prevented from obtaining products from a substantial number of its current Far East suppliers due to political, labor or other factors beyond its control, the Company’s operations would be disrupted, potentially for a significant period of time, while alternative sources of product were secured.

The imposition of trade sanctions, tariffs, border adjustment taxes or other measures by the United States or the European Union against a class of products imported by Hasbro from, or the loss of “normal trade relations” status with, China, or other countries where we manufacture products, or other factors which increase the cost of manufacturing in China, or other countries where we manufacture products, such as higher labor costs or an appreciation in the Chinese Yuan, could significantly disrupt our operations and/or significantly increase the cost of the products which are manufactured and imported into other markets.

The Company has agreements which allow it to develop and market products based on properties owned by third parties including its license with Marvel Entertainment, LLC and Marvel Characters B.V.

(together “Marvel”) and its license with Lucas Licensing Ltd.

and Lucasfilm Ltd.

(together “Lucas”).

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.

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

Changes in and Disagreements with Accountants on Accounting and Financial Disclosure.

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