What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2025-05-06 compared with 2024-10-31 · 303 added, 443 removed, 407 unchanged (65% of the section changed)

3 unchanged sentences

(Millions of Dollars Except Share Data)

September 29,

2024 October 1,

2025 March 31,

2024 December 29,

Current assets

Cash and cash equivalents, including restricted cash of $ 0.3 million, $ 1.1 million and $ 0.6 million

Cash and cash equivalents, including restricted cash of $ 0.3 , $ 0.9 and $ 0.3

$ 621.1 $ 570.2 $ 695.0

Short-term investments 489.3 — —

Accounts receivable, net 656.6 632.5 919.8

1 unchanged sentence

Prepaid expenses and other current assets 339.3 456.5 353.5

Assets held for sale — 1,048.7 —

Total current assets 1,912.8 1,995.4 2,242.5

Property, plant and equipment, less accumulated depreciation of $ 643.2 million, $ 603.3 million and $ 618.9 million

Property, plant and equipment, net of accumulated depreciation of $ 1,047.6 , $ 1,036.4 and $ 1,026.7

293.6 323.3 302.6

Other assets:

Goodwill 2,278.4 2,278.8 2,278.2

Other intangible assets, net of accumulated amortization of $ 1,350.5 million, $ 1,229.3 million and $ 1,296.9 million

Other intangible assets, net of accumulated amortization of $ 439.8 , $ 1,314.7 and $ 421.2

503.1 569.7 518.4

Other 1,052.1 1,035.8 998.6

Total other assets 3,644.1 4,625.5 3,728.7

Total assets $ 6,040.0 $ 6,203.0 $ 6,340.3

4 unchanged sentences

Accrued liabilities 871.2 1,038.0 1,059.8

Liabilities held for sale — 607.4 —

Total current liabilities 1,156.0 1,792.2 1,401.3

8 unchanged sentences

Authorized 600,000,000 shares;

issued 220,286,736 shares at September 29, 2024, October 1, 2023, and December 31, 2023

issued 220,286,736 shares at March 30, 2025, March 31, 2024, and December 29, 2024

110.1 110.1 110.1

3 unchanged sentences

Treasury stock, at cost;

80,798,468 shares at September 29, 2024;

81,541,637 shares at October 1, 2023;

80,160,721 shares at March 30, 2025;

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

and 80,758,045 shares at December 29, 2024

7 unchanged sentences

(Millions of Dollars Except Per Share Data)

Three Months Ended Nine Months Ended

September 29,

2024 October 1,

2023 September 29,

2024 October 1,

Three Months Ended

2025 March 31,

Net revenues $ 887.1 $ 757.3

5 unchanged sentences

Advertising 55.4 51.5

Amortization of intangibles 17.1 19.2 51.2 65.1

Impairment of goodwill — — — 231.2

Amortization of intangible assets 17.0 17.0

Loss on disposal of business 25.0 9.1

1 unchanged sentence

Total costs and expenses 716.4 641.1

Operating profit (loss) 301.9 ( 169.5 ) 630.2 ( 340.2 )

Operating profit 170.7 116.2

Non-operating expense (income):

1 unchanged sentence

Interest income ( 8.9 ) ( 8.3 )

Other (income) expense, net ( 19.9 ) 2.2 ( 15.7 ) ( 0.7 )

Other expense, net 1.4 5.0

Total non-operating expense, net 34.1 35.2

Earnings (loss) before income taxes 290.3 ( 215.0 ) 554.2 ( 463.9 )

Income tax expense (benefit) 67.0 ( 44.6 ) 133.3 ( 36.9 )

Net earnings (loss) 223.3 ( 170.4 ) 420.9 ( 427.0 )

Earnings before income taxes 136.6 81.0

Income tax expense 37.1 21.9

Net earnings 99.5 59.1

Net earnings attributable to noncontrolling interests 0.9 0.9

Net earnings (loss) attributable to Hasbro, Inc.

Net earnings attributable to Hasbro, Inc.

$ 98.6 $ 58.2

Net earnings (loss) per common share:

Net earnings per common share:

Basic $ 0.71 $ 0.42

5 unchanged sentences

(Millions of Dollars)

Three Months Ended Nine Months Ended

September 29,

2024 October 1,

2023 September 29,

2024 October 1,

Net earnings (loss) $ 223.3 $ ( 170.4 ) $ 420.9 $ ( 427.0 )

Three Months Ended

2025 March 31,

Net earnings $ 99.5 $ 59.1

Other comprehensive earnings (loss):

Foreign currency translation adjustments, net of tax ( 1.4 ) ( 2.7 ) ( 28.1 ) 46.4

Net gains (losses) on cash flow hedging activities, net of tax ( 4.2 ) 5.0 0.7 ( 2.2 )

Foreign currency translation adjustments 10.2 ( 4.0 )

Net (losses) gains on cash flow hedging activities, net of tax ( 2.7 ) 1.8

Reclassifications to earnings, net of tax:

Net gains on cash flow hedging activities 0.1 2.9 1.2 2.5

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

Total other comprehensive (loss) earnings, net of tax ( 5.6 ) 5.1 ( 26.3 ) 46.5

Net (losses) gains on cash flow hedging activities ( 0.7 ) 0.4

Total other comprehensive earnings (loss), net of tax 6.8 ( 1.8 )

Total comprehensive earnings attributable to noncontrolling interests 0.9 0.9

Total comprehensive earnings (loss) attributable to Hasbro, Inc.

Total comprehensive earnings attributable to Hasbro, Inc.

$ 105.4 $ 56.4

3 unchanged sentences

(Millions of Dollars)

Nine months ended

September 29,

2024 October 1,

Three months ended

2025 March 31,

Cash flows from operating activities:

Net earnings (loss) $ 420.9 $ ( 427.0 )

Adjustments to reconcile net earnings (loss) to net cash provided by operating activities:

Depreciation of plant and equipment 74.0 88.0

Net earnings $ 99.5 $ 59.1

Adjustments to reconcile net earnings to net cash provided by operating activities:

Depreciation of property, plant and equipment 17.2 21.3

Loss on disposal of business 25.0 9.1

Impairment of goodwill — 231.2

Impairment of intangible assets — 65.0

Amortization of intangibles 51.2 65.1

Program production cost amortization 24.5 325.3

Amortization of intangible assets 17.0 17.0

Program cost amortization 7.4 8.1

Deferred income taxes 4.8 10.8

Inventory obsolescence 5.2 6.9

Stock-based compensation 18.4 ( 5.0 )

Other non-cash items 7.9 8.7

Change in operating assets and liabilities net of acquired balances:

Increase in accounts receivable ( 49.7 ) ( 86.3 )

(Increase) decrease in inventories ( 45.5 ) 53.0

Decrease in prepaid expenses and other current assets 8.2 17.0

Program spend, net ( 20.7 ) ( 337.5 )

Increase (decrease) in accounts payable and accrued liabilities 72.7 ( 127.5 )

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

Change in operating assets and liabilities:

Decrease in accounts receivable 258.7 388.3

Increase in inventories ( 23.2 ) ( 14.8 )

Increase in prepaid expenses and other current assets ( 25.3 ) ( 36.4 )

Program production costs ( 2.8 ) ( 9.3 )

Decrease in accounts payable and accrued liabilities ( 267.0 ) ( 279.3 )

Other ( 4.7 ) ( 6.7 )

2 unchanged sentences

Additions to property, plant and equipment ( 13.8 ) ( 22.1 )

Additions to software development ( 29.4 ) ( 23.7 )

Purchases of investments ( 10.0 ) —

Net (settlement) proceeds from sale of business ( 12.0 ) —

Sale of investments 91.0 —

Other 0.8 ( 2.3 )

1 unchanged sentence

Cash flows from financing activities:

Proceeds from borrowings with maturity greater than three months 498.6 2.5

Repayments of borrowings with maturity greater than three months — ( 107.0 )

Net proceeds from other short-term borrowings — 0.3

Repayments of borrowings ( 49.2 ) —

Dividends paid ( 97.9 ) ( 97.2 )

1 unchanged sentence

Stock-based compensation transactions 3.8 0.2

Payment of financing costs ( 5.3 ) —

Other ( 1.4 ) ( 1.7 )

Net cash provided by (utilized by) financing activities 190.8 ( 418.0 )

Net cash utilized by financing activities ( 162.4 ) ( 108.9 )

Effect of exchange rate changes on cash 2.8 4.0

Net increase (decrease) in cash, cash equivalents and restricted cash 150.7 ( 257.2 )

Net change due to cash classified as held for sale — ( 70.4 )

Net increase (decrease) in cash, cash equivalents and restricted cash 150.7 ( 327.6 )

Net increase in cash, cash equivalents and restricted cash ( 73.9 ) 24.8

Cash, cash equivalents and restricted cash at beginning of year 695.0 545.4

1 unchanged sentence

Supplemental information

Cash paid during the period for:

Interest $ 101.8 $ 126.7

Income taxes, net $ 70.2 $ 96.9

Interest paid $ 28.7 $ 28.5

Income taxes paid, net $ 26.7 $ 5.1

See accompanying condensed notes to consolidated financial statements.

11 unchanged sentences

Net earnings attributable to noncontrolling interests — — — — — 0.9 0.9

Other comprehensive loss — — — ( 1.8 ) — — ( 1.8 )

Other comprehensive gain — — — 6.8 — — 6.8

Stock-based compensation transactions — ( 19.3 ) — — 5.6 — ( 13.7 )

3 unchanged sentences

Balance, March 30, 2025 $ 110.1 $ 2,631.9 $ 2,274.4 $ ( 239.6 ) $ ( 3,606.9 ) $ 27.6 $ 1,197.5

Net earnings attributable to Hasbro, Inc.

— — 138.5 — — — 138.5

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

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

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

Dividends declared — 1.8 ( 1.8 ) — — — —

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

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

Net earnings attributable to Hasbro, Inc.

— — 223.2 — — — 223.2

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

Other comprehensive loss — — — ( 5.6 ) — — ( 5.6 )

Stock-based compensation transactions — 0.6 — — 2.0 — 2.6

Stock-based compensation expense — 14.7 — — ( 0.7 ) — 14.0

Dividends declared — 2.1 ( 99.7 ) — — — ( 97.6 )

Distributions paid to noncontrolling owners and other foreign exchange — — — — — 0.1 0.1

Balance, September 29, 2024 $ 110.1 $ 2,609.5 $ 2,408.2 $ ( 227.8 ) $ ( 3,612.8 ) $ 22.5 $ 1,309.7

See accompanying condensed notes to consolidated financial statements.

AND SUBSIDIARIES

Consolidated Statements of Shareholders' Equity

(Millions of Dollars)

Stock Additional

5 unchanged sentences

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.

— — ( 22.1 ) — — — ( 22.1 )

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

Other comprehensive earnings — — — 17.5 — — 17.5

Stock-based compensation transactions — ( 19.0 ) — — 5.0 — ( 14.0 )

Stock-based compensation expense — 15.7 — — — — 15.7

Dividends declared — 0.5 ( 97.5 ) — — — ( 97.0 )

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

Distributions paid to noncontrolling owners and other foreign exchange — — — — — ( 1.6 ) ( 1.6 )

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

Net loss attributable to Hasbro, Inc.

— — ( 235.0 ) — — — ( 235.0 )

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

Other comprehensive earnings — — — 23.9 — — 23.9

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

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

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

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

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

Net loss attributable to Hasbro, Inc.

Net earnings attributable to Hasbro, Inc.

— — 58.2 — — — 58.2

Net earnings attributable to noncontrolling interests — — — — — 0.9 0.9

Other comprehensive earnings — — — 5.1 — — 5.1

Other comprehensive loss — — — ( 1.8 ) — — ( 1.8 )

Stock-based compensation transactions — ( 16.9 ) — — 6.9 — ( 10.0 )

2 unchanged sentences

Distributions paid to noncontrolling owners and other foreign exchange — — — — — ( 2.0 ) ( 2.0 )

Balance, October 1, 2023 $ 110.1 $ 2,574.1 $ 3,348.3 $ ( 208.4 ) $ ( 3,626.3 ) $ 25.4 $ 2,223.2

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

See accompanying condensed notes to consolidated financial statements.

4 unchanged sentences

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

and all consolidated subsidiaries ("Hasbro" or the "Company") as of September 29, 2024, October 1, 2023, and December 31, 2023, and the results of its operations and cash flows and shareholders' equity for the periods ended September 29, 2024 and October 1, 2023 in accordance with accounting principles generally accepted in the United States of America ("U.S.

and all consolidated subsidiaries ("Hasbro" or the "Company") as of March 30, 2025, March 31, 2024, and December 29, 2024, and the results of its operations and cash flows and shareholders' equity for the periods ended March 30, 2025 and March 31, 2024 in accordance with accounting principles generally accepted in the United States of America ("U.S.

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

1 unchanged sentence

Actual results could differ from those estimates.

The three months ended September 29, 2024 and October 1, 2023 were 13-week periods.

The nine months ended September 29, 2024 and October 1, 2023 were 39-week and 40-week periods, respectively.

The results of operations for the three and nine months ended September 29, 2024 are not necessarily indicative of results to be expected for the full year 2024, nor were those of the comparable 2023 periods representative of those actually experienced for the full year 2023.

The three months ended March 30, 2025 and March 31, 2024 were 13-week periods.

The results of operations for the three months ended March 30, 2025 are not necessarily indicative of results to be expected for the full year 2025, nor were those of the comparable 2024 periods representative of those actually experienced for the full year 2024.

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

2 unchanged sentences

The Company filed with the SEC audited consolidated financial statements for the fiscal year ended December 29, 2024 in the Company's Annual Report on Form 10-K for the year ended December 29, 2024 ("2024 Form 10-K"), which includes all such information and disclosures and, accordingly, should be read in conjunction with the financial information included herein.

Certain amounts have been reclassified to conform to current year presentation.

Other Adjustments

During the nine months ended September 29, 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 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.

During the three months ended March 31, 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).

The recording of this item was not considered to be material, individually or in the aggregate, to the Company's 2023 or 2024 consolidated financial statements.

For the period ending March 31, 2024, the Company reclassified capitalized software developments costs of $ 178.0 million from Property, plant and equipment, net into Other long-term assets to conform with current year presentation.

Significant Accounting Policies

The Company's significant accounting policies are summarized in Note 1 to the consolidated financial statements included in the Company's 2023 Form 10-K.

The Company's significant accounting policies are summarized in Note 1, Summary of Significant Accounting Policies, to the consolidated financial statements included in the Company's 2024 Form 10-K.

Recently Adopted Accounting Standards

During the three and nine months ended September 29, 2024, there were no recently adopted accounting standards that had a material effect on the Company’s financial statements.

During the three months ended March 30, 2025, there were no recently adopted accounting standards that had a material effect on the Company’s financial statements.

Issued 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.

Retrospective adoption is required for all prior periods presented in the financial statements.

We are assessing the impact of this ASU and upon adoption

Condensed Notes to Consolidated Financial Statements

(Millions of Dollars and Shares Except Per Share Data)

expect that any impact would be limited to additional segment expense disclosures in the footnotes to our consolidated financial statements.

We expect to adopt the standard beginning with our 2024 Form 10-K.

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740):

In December 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2023-09, Income Taxes (Topic 740):

Improvements in Income Tax Disclosures .

3 unchanged sentences

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 rules are effective for annual periods beginning after December 15, 2024.

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

The new rules are effective for

Condensed Notes to Consolidated Financial Statements

(Millions of Dollars and Shares Except Per Share Data)

annual periods beginning after December 15, 2024.

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

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 currently assessing the impact of this ASU on our consolidated financial statement disclosures.

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

3 unchanged sentences

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

See Note 1 of the Company's 2023 Annual Report for the Company's revenue recognition accounting policy.

See Note 1, Summary of Significant Accounting Policies, of the Company's 2024 Annual Report for the Company's revenue recognition accounting policy.

Contract Assets and Liabilities

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

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

In the ordinary course of business, the Company enters into contracts to license certain of the Company’s intellectual property, providing licensees right-to-use or access such intellectual property for use in the production and sale of consumer products and digital game development, location based entertainment, and for use within content for distribution over streaming platforms and for television and film.

Through these arrangements, the Company may receive advanced royalty payments from licensees, either in advance of a licensees’ subsequent sales to customers or prior to the completion of the Company’s performance obligation.

In addition, the Company’s Wizards of the Coast and Digital Gaming segment may receive advanced payments from end users of its digital games at the time of the initial purchase, through in-application purchases or through subscription services.

These digital gaming revenues are recognized over a period of time, determined based on player usage patterns or the estimated playing life of the user, or when additional downloadable content is made available, or as with subscription services, ratably over the subscription term.

The Company defers revenues on all licensee and digital gaming advanced payments until the respective performance obligations are satisfied.

The Company records the aggregate deferred revenues as contract liabilities, with the current portion recorded within Accrued liabilities and the long-term portion recorded as Other non-current liabilities in the Company’s Consolidated Balance Sheets.

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

The current portion of contract assets is recorded in Prepaid expenses and Other current assets and the long-term portion is recorded within Other long-term assets.

Condensed Notes to Consolidated Financial Statements

(Millions of Dollars and Shares Except Per Share Data)

The changes in carrying amounts of contract assets and liabilities for the nine months ended September 29, 2024 and October 1, 2023 are as follows:

September 29,

2024 October 1,

The current portion of contract assets is recorded in Prepaid expenses and other current assets and the long-term portion is recorded within Other long-term assets on the basis of expected receipt of cash per contractual terms.

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

2025 March 31,

Balance at beginning of the year $ 241.4 $ 213.3

Recognized in current year 252.9 389.4

Amounts reclassified to accounts receivable ( 221.9 ) ( 427.4 )

Reclassified to assets held for sale (1)

Foreign currency impact ( 1.8 ) ( 5.3 )

Ending Balance $ 227.1 $ 219.6

Balance at beginning of the year $ 236.8 $ 230.8

Recognized in current year 168.1 254.5

Amounts in beginning balance reclassified to revenue ( 53.1 ) ( 68.3 )

Current year amounts reclassified to revenue ( 96.0 ) ( 156.6 )

Reclassified to liabilities held for sale (1)

Foreign currency impact 7.1 ( 2.1 )

Ending Balance $ 202.6 $ 231.6

(1) See Note 3 for additional information on assets and liabilities held for sale.

For the three months ended March 30, 2025, the Company recognized revenue of $ 134.7 million that was included in the December 29, 2024 contract liability balance.

For the three months ended March 31, 2024, the Company recognized revenue of $ 22.1 million that was included in the December 31, 2023 contract liability balance.

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 September 29, 2024, unrecognized revenue attributable to unsatisfied performance obligations expected to be recognized in the future was $ 2.7 million.

Of this amount, we expect to recognize $ 0.6 million in the remainder of 2024 and $ 2.1 million in 2025.

These amounts include only fixed consideration.

Condensed Notes to Consolidated Financial Statements

(Millions of Dollars and Shares Except Per Share Data)

and subscription video on demand services.

As of March 30, 2025, unrecognized revenue attributable to unsatisfied performance obligations expected to be recognized in the future was $ 1.4 million.

Of this amount, we expect to recognize $ 1.4 million in the remainder of 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 September 29, 2024 and October 1, 2023 are primarily from contracts with customers.

A summary of the activity in the allowance for credit losses for the nine months ended September 29, 2024 and October 1, 2023 are as follows:

September 29,

2024 October 1,

The Company’s balance for accounts receivable on the Consolidated Balance Sheets as of March 30, 2025 and March 31, 2024 are primarily from contracts with customers.

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

2025 March 31,

Balance at beginning of the year $ 25.8 $ 12.7

Charged to costs and expenses, net 4.6 2.8

Customer accounts written off—net of recoveries ( 0.5 ) ( 0.8 )

Reclassified to assets held for sale (1)

Provisions/charges to income 14.6 0.3

Amounts charged off and other deductions ( 2.9 ) 0.4

Foreign currency impact 0.2 ( 0.3 )

Ending balance $ 37.7 $ 13.1

(1) See Note 3 for additional information on assets held for sale.

Disaggregation of revenues

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

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

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

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

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

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

The Company further disaggregates revenues within its Wizards of the Coast and Digital Gaming segment by category:

Tabletop Gaming and Digital and Licensed Gaming;

within its Consumer Products segment by major geographic region:

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

and within its Entertainment segment by category:

1 unchanged sentence

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

Franchise Brands, Partner Brands and Portfolio Brands.

Grow Brands, Optimize Brands, and Reinvent Brands.

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

Condensed Notes to Consolidated Financial Statements

(Millions of Dollars and Shares Except Per Share Data)

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

For comparability, net revenues for the three and nine months ended October 1, 2023, have been reclassified to reflect the movement, resulting in a change of $ 0.3 million and $ 1.2 million, respectively.

The following table represents consolidated Consumer Products segment net revenues by major geographic region for the three and nine months ended September 29, 2024 and October 1, 2023:

Three Months Ended Nine Months Ended

September 29,

2024 October 1,

2023 September 29,

2024 October 1,

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

Three Months Ended

2025 March 31,

Tabletop Gaming $ 343.8 $ 228.2

Digital and Licensed Gaming 118.3 88.1

Net revenues $ 462.1 $ 316.3

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

Three Months Ended

2025 March 31,

North America $ 231.4 $ 239.1

3 unchanged sentences

Net revenues $ 398.3 $ 413.0

The following table represents consolidated Wizards of the Coast and Digital Gaming segment net revenues by category for the three and nine months ended September 29, 2024 and October 1, 2023:

Three Months Ended Nine Months Ended

September 29,

2024 October 1,

2023 September 29,

2024 October 1,

Tabletop Gaming $ 296.8 $ 290.5 $ 832.6 $ 806.9

Digital and Licensed Gaming 107.2 133.1 339.7 287.5

Net revenues $ 404.0 $ 423.6 $ 1,172.3 $ 1,094.4

The following table represents consolidated Entertainment segment net revenues by category for the three and nine months ended September 29, 2024 and October 1, 2023:

Three Months Ended Nine Months Ended

September 29,

2024 October 1,

2023 September 29,

2024 October 1,

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

Three Months Ended

2025 March 31,

Film and TV $ 4.3 $ —

$ 1.6 $ 102.1 $ 3.4 $ 423.8

Family Brands 22.4 28.0

Net revenues $ 26.7 $ 28.0

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

The following table presents consolidated net revenues by brand portfolio for the three and nine months ended September 29, 2024 and October 1, 2023:

Three Months Ended Nine Months Ended

September 29,

2024 October 1,

2023 September 29,

2024 October 1,

Franchise Brands $ 941.6 $ 1,011.0 $ 2,334.7 $ 2,412.8

Partner Brands 190.1 228.2 402.4 533.8

Portfolio Brands 149.6 170.6 296.8 370.6

Non-Hasbro Branded Film & TV (1)

— 93.6 — 397.2

Net revenues $ 1,281.3 $ 1,503.4 $ 3,033.9 $ 3,714.4

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

Condensed Notes to Consolidated Financial Statements

(Millions of Dollars and Shares Except Per Share Data)

The following table represents consolidated net revenues by brand portfolio:

Three Months Ended

2025 March 31,

Grow Brands $ 653.4 $ 521.7

Optimize Brands 132.1 141.8

Reinvent Brands 101.6 93.8

Net revenues $ 887.1 $ 757.3

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

2 unchanged sentences

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

During the nine months ended September 29, 2024, the Company recorded a $ 24.4 million expense in Loss on disposal of business on the Consolidated Statements of Operations associated with certain purchase price and related adjustments.

The Company recorded a pre-tax non-cash charge of $ 539.0 million within Loss on disposal of business on the Consolidated Statements of Operations for the year ended December 31, 2023, of which $ 473.0 million was recorded during the three and nine months ended October 1, 2023.

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.

See Note 3 of the Company's 2023 Annual Report for further detail of the Company's sale of the eOne Film and TV business.

The Company determined that the non-core eOne Film and TV business met the criteria to be classified as held for sale at October 1, 2023, but did not meet the criteria to be classified as discontinued operations.

As a result, the related assets and liabilities were included in the separate assets and liabilities held-for-sale line items of the asset and liability sections of the consolidated balance sheets.

The following table summarizes the assets and liabilities held for sale at October 1, 2023:

October 1, 2023

Cash and cash equivalents including restricted cash of $ 4.1 million

Accounts receivable, less allowance for doubtful accounts of $ 1.4 million

Prepaid expenses and other current assets

Property, plant and equipment, less accumulated depreciation of $ 21.3 million

Write-down loss allowance (1)

Total assets held for sale

Short-term borrowings

Current portion of long-term debt

Accounts payable and accrued liabilities

Long-term debt

Other liabilities

Total liabilities held for sale

(1) In addition to the write-down loss allowance of $ 457.3 million, the Company also recognized $ 15.7 million of currency translation losses on the classification of held for sale.

The pre-tax non-cash loss on assets held for sale of $ 473.0 million includes both the write-down allowance and the currency translation losses.

Condensed Notes to Consolidated Financial Statements

(Millions of Dollars and Shares Except Per Share Data)

(4) Earnings (Loss) Per Share

Net earnings (loss) per share data for the three and nine months ended September 29, 2024 and October 1, 2023 were computed as follows:

Three Months Ended Nine Months Ended

September 29,

2024 October 1,

2023 September 29,

2024 October 1,

Net earnings (loss) attributable to Hasbro, Inc.

The Equity Purchase Agreement also included a holdback amount that was paid to Lionsgate upon the execution of the sale but remained recoverable by Hasbro if certain terms were not satisfied by Lionsgate within 30 days of the first anniversary of the agreement.

During the three months ended March 30, 2025, the Company was informed by Lionsgate of the satisfaction of the requirements under the agreement and the final holdback amount was settled, resulting in a $ 25.0 million expense recorded within Loss on disposal of business on the Consolidated Statements of Operations.

(4) Earnings Per Common Share

Net earnings per share data were computed as follows:

Three Months Ended

2025 March 31,

Net earnings attributable to Hasbro, Inc.

$ 98.6 $ 58.2

3 unchanged sentences

Equivalent Shares 141.0 139.3

Net earnings (loss) attributable to Hasbro, Inc.

Net earnings attributable to Hasbro, Inc.

per common share

1 unchanged sentence

Diluted $ 0.70 $ 0.42

For the three and nine months ended September 29, 2024, options and restricted stock units totaling 1.1 million and 1.9 million, respectively, were excluded from the calculation of diluted earnings per share because to include them would have been anti-dilutive.

For the three and nine months ended October 1, 2023, options and restricted stock units totaling 2.1 million and 2.5 million, respectively, were excluded from the calculation of diluted earnings per share because to include them would have been anti-dilutive.

Of the fiscal 2023 amount, 1.9 million and 1.7 million shares, respectively, would have been included in the calculation of diluted shares had the Company not had a net loss for the three and nine months ended October 1, 2023.

Assuming the Company was in a net earnings position, the awards and options that would have been included, under the treasury stock method, would have resulted in an additional 0.4 million and 0.2 million shares, respectively, being included in the diluted earnings per share calculation for the three and nine months ended October 1, 2023.

Changes in the carrying amount of goodwill, by operating segment, for the nine months ended September 29, 2024 and October 1, 2023 are as follows:

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

For the three months ended March 30, 2025 and March 31, 2024, options and restricted stock units totaling 0.9 million and 2.6 million, respectively, were excluded from the calculation of diluted earnings per share because to include them would have been anti-dilutive.

Condensed Notes to Consolidated Financial Statements

(Millions of Dollars and Shares Except Per Share Data)

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

Wizards of the Coast and Digital Gaming Consumer Products Entertainment Total

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

Foreign exchange translation 0.1 0.1 — 0.2

Balance as of September 29, 2024 $ 1,582.2 $ 371.5 $ 325.2 $ 2,278.9

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

Balance as of March 30, 2025 $ 371.1 $ 1,582.1 $ 325.2 $ 2,278.4

Wizards of the Coast and Digital Gaming Consumer Products Entertainment Total

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

Foreign exchange translation ( 0.2 ) ( 0.1 ) ( 0.1 ) ( 0.4 )

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

Balance as of October 1, 2023 $ 1,584.6 $ 371.5 $ 1,282.7 $ 3,238.8

Condensed Notes to Consolidated Financial Statements

(Millions of Dollars and Shares Except Per Share Data)

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

See further detail in the 2023 Annual Report.

During the nine months ended October 1, 2023, the Company recorded non-cash impairment charges of $ 296.2 million within the Entertainment segment.

These impairment charges consisted of a $ 231.2 million goodwill impairment charge recorded within Impairment of goodwill and a $ 65.0 million intangible asset impairment charge, recorded in Selling, distribution and administration costs, within the Consolidated Statements of Operations for the nine months ended October 1, 2023.

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

(6) Other Comprehensive Earnings (Loss)

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

The following table presents the related tax effects on changes in Other comprehensive earnings (loss) for the three and nine months ended September 29, 2024 and October 1, 2023.

Three Months Ended Nine Months Ended

September 29,

2024 October 1,

2023 September 29,

2024 October 1,

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

Three Months Ended

2025 March 31,

Other comprehensive earnings (loss), tax effect:

2 unchanged sentences

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

Amortization of unrecognized pension and postretirement amounts

Total tax effect on other comprehensive earnings (loss) $ 1.6 $ ( 0.2 )

Changes in the components of Accumulated other comprehensive earnings (loss), net of tax for the nine months ended September 29, 2024 and October 1, 2023 are as follows:

Condensed Notes to Consolidated Financial Statements

(Millions of Dollars and Shares Except Per Share Data)

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

Postretirement

6 unchanged sentences

Current period other comprehensive earnings (loss) — ( 3.4 ) — 10.2 6.8

Balance at September 29, 2024 $ ( 4.3 ) $ ( 14.9 ) $ ( 0.1 ) $ ( 208.5 ) $ ( 227.8 )

Balance at March 30, 2025 $ ( 8.0 ) $ ( 12.5 ) $ ( 0.1 ) $ ( 219.0 ) $ ( 239.6 )

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

Current period other comprehensive earnings (loss) — 2.2 — ( 4.0 ) ( 1.8 )

Balance at October 1, 2023 $ ( 3.2 ) $ ( 11.7 ) $ ( 0.1 ) $ ( 193.4 ) $ ( 208.4 )

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

Gains (Losses) on Derivative Instruments

At September 29, 2024, the Company had remaining deferred losses on foreign currency forward contracts, net of tax, of $ 0.2 million in Accumulated other comprehensive earnings (loss) ("AOCE").

These instruments hedge payments related to inventory purchased in the nine months ended September 29, 2024 or forecasted to be purchased during the remainder of 2024, intercompany expenses expected to be paid or received during 2024 and cash receipts for sales made at the end of the third quarter of 2024 or forecasted to be made in the remainder of 2024.

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

Condensed Notes to Consolidated Financial Statements

(Millions of Dollars and Shares Except Per Share Data)

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

At March 30, 2025, the Company had remaining deferred gains on foreign currency forward contracts, net of tax, of $ 0.8 million in Accumulated other comprehensive earnings (loss) ("AOCE").

These instruments hedge payments related to inventory purchased in the three months ended March 30, 2025 or forecasted to be purchased during the remainder of 2025, intercompany expenses expected to be paid or received during 2025 and cash receipts for sales made at the end of the first quarter of 2025 or forecasted to be made in the remainder of 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 or expenses.

In addition to foreign currency forward contracts, the Company entered into hedging contracts on future interest payments related to the 5.10 % Notes due 2044.

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

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

For each of the three months ended September 29, 2024 and October 1, 2023, previously deferred losses, net of tax of $ 0.2 million related to these instruments were reclassified from AOCE to net earnings.

For the nine months ended September 29, 2024 and October 1, 2023, previously deferred losses, net of tax of $ 0.5 million and $ 0.5 million, respectively, related to these instruments were reclassified from AOCE to net earnings.

Of the net deferred losses included in AOCE at September 29, 2024, the Company expects net losses of approximately $ 0.4 million to be reclassified to the Consolidated Statements of Operations within the next twelve months.

At March 30, 2025, deferred losses, net of tax of $ 13.3 million related to these instruments remained in AOCE.

For each of the three months ended March 30, 2025 and March 31, 2024, previously deferred losses, net of tax, of $ 0.2 million related to these instruments were reclassified from AOCE to net earnings.

Of the amounts included in AOCE at March 30, 2025, the Company expects net gains of approximately $ 2.3 million to be reclassified to the Consolidated Statements of Operations within the next twelve months.

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

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

See Note 12, Derivative Financial Instruments, for additional discussion on reclassifications from AOCE to earnings.

Condensed Notes to Consolidated Financial Statements

(Millions of Dollars and Shares Except Per Share Data)

(7) Additional Balance Sheet Information

Components of Accrued liabilities for the periods ended September 29, 2024, October 1, 2023 and December 31, 2023 were as follows:

September 29,

2024 October 1,

Components of accrued liabilities were as follows:

2025 March 31,

2024 December 29, 2024

Royalties $ 335.4 $ 148.9 $ 286.8

Deferred revenue 103.2 112.1 101.6

Lag & cancellation charges 51.2 83.0 118.9

Dividends (1)

Severance 51.0 55.5 83.7

Contract liabilities - current $ 202.5 $ 230.4 $ 236.5

Accrued royalties expense 131.6 128.7 160.5

Accrued income taxes 100.5 59.0 93.3

Advertising 55.9 33.3 58.7

Other taxes 51.4 45.8 60.9

Lag & cancellation charges 42.9 112.0 48.9

Interest 42.5 38.1 31.3

Severance 40.4 75.7 50.2

General vendor accruals 34.2 34.9 46.1

Participations and residuals 18.3 30.4 34.0

Advertising 70.0 52.3 45.0

Lease liability - current 28.8 29.1 29.8

Payroll and management incentives 79.8 63.8 85.6

Defined contribution plans 16.0 27.3 29.7

Freight 24.0 17.0 27.0

Insurance 12.3 12.2 13.3

Payroll and management incentives 22.4 21.9 121.1

Professional fees 16.0 10.0 18.2

Accrued expenses - IIP & IIC 0.5 2.7 0.7

Defined contributions plans 14.5 18.9 21.4

Insurance 11.8 14.6 11.3

Participations and residuals 10.3 33.7 8.8

Accrued expenses - productions 0.7 0.7 0.7

Dividends — 97.4 —

Other 40.8 36.8 35.1

Total accrued liabilities $ 871.2 $ 1,038.0 $ 1,059.8

(1) During the fourth quarter of 2024, the Board of Directors declared a quarterly cash dividend of $ 0.70 per common share payable on December 4, 2024, to shareholders of record at the close of business on November 24, 2024.

Prepaid expenses and other current assets include accrued income, current of $ 173.6 million, $ 92.0 million, and $ 85.6 million as of September 29, 2024, October 1, 2023 and December 31, 2023 , respectively.

Other assets include deferred tax assets of $ 407.1 million, $ 251.7 million, and $ 427.9 million as of September 29, 2024, October 1, 2023 and December 31, 2023 , respectively, and content assets of $ 145.1 million , $ 196.5 million , and $ 162.8 million as of September 29, 2024, October 1, 2023 and December 31, 2023 , respectively

Prepaid expenses and other current assets include contract assets, current of $ 115.2 million, $ 127.3 million, and $ 179.5 million as of March 30, 2025, March 31, 2024, and December 29, 2024 , respectively.

Other assets include deferred tax assets of $ 417.2 million, $ 406.3 million, and $ 424.6 million as of March 30, 2025, March 31, 2024, and December 29, 2024 , respectively, and unamortized software development costs of $ 291.0 million , $ 178.0 million , and $ 264.4 million as of March 30, 2025, March 31, 2024, and December 29, 2024 , respectively.

Condensed Notes to Consolidated Financial Statements

(Millions of Dollars and Shares Except Per Share Data)

The carrying costs, which are equal to the outstanding principal amounts, and fair values of the Company's long-term borrowings as of September 29, 2024, October 1, 2023 and December 31, 2023 are as follows:

September 29, 2024 October 1, 2023 December 31, 2023

(8) Long-Term Debt and Other Financing

The carrying costs, which are equal to the outstanding principal amounts, and fair values of the Company's long-term borrowings are as follows:

March 30, 2025 March 31, 2024 December 29, 2024

Value Carrying

12 unchanged sentences

300.0 260.6 300.0 257.3 300.0 261.3

5.10 % Notes Due 2044

300.0 279.7 300.0 245.1 300.0 271.6

6.60 % Debentures Due 2028

109.9 116.1 109.9 114.8 109.9 114.4

Variable % Notes Due December 30, 2024 (1)

3.00 % Notes Due 2024

— — 500.0 491.0 — —

Production Financing Facilities (2)

Total long-term debt $ 3,351.4 $ 3,272.8 $ 3,484.9 $ 3,324.4 $ 3,401.8 $ 3,290.5

2 unchanged sentences

Long-term debt $ 3,331.5 $ 3,272.8 $ 2,966.9 $ 3,324.4 $ 3,380.8 $ 3,290.5

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

(2) The Company's production financing facilities were assumed by Lionsgate effective upon the closing of the sale of the eOne Film and TV business in the fourth quarter of 2023 and were recorded in liabilities held for sale as of October 1, 2023.

See Note 3 for additional information.

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

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

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

For the three months ended March 30, 2025, the Company repurchased $ 50.4 million of its 2026 and 2027 Notes and recorded a gain on extinguishment of $ 1.2 million, which was recorded in Other expense (income), net in the Consolidated Statements of Operations.

Other Financing Arrangements

The Company's third amended and restated revolving credit facility 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 Facility") 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.

6 unchanged sentences

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

The amount of obligations confirmed under the program that remain unpaid by the Company were $ 118.7 million, $ 105.7 million, and $ 43.3 million as of September 29, 2024, October 1, 2023 and December 31, 2023 , respectively.

The amount of obligations confirmed under the program that remain unpaid by the Company were $ 51.2 million, $ 47.7 million, and $ 66.2 million as of March 30, 2025, March 31, 2024, and December 29, 2024 , respectively.

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

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

Condensed Notes to Consolidated Financial Statements

(Millions of Dollars and Shares Except Per Share Data)

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

1 unchanged sentence

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

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

The Company's unamortized investments in productions and investments in acquired content rights consisted of the following at September 29, 2024, October 1, 2023, and December 31, 2023:

September 29,

2024 October 1,

Amounts capitalized are reviewed

Condensed Notes to Consolidated Financial Statements

(Millions of Dollars and Shares Except Per Share Data)

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

The Company's unamortized investments in productions and investments in acquired content rights consisted of the following:

2025 March 31,

2024 December 29,

12 unchanged sentences

Released, net of amortization 7.0 13.7 6.0

Completed and not released — — —

In production 1.0 5.1 0.7

Pre-production — 0.7 —

11.8 24.8 17.7

Total Program Investments $ 119.6 $ 165.3 $ 124.8

(1) Investments in productions and investments in acquired content totaling $ 734.8 million were 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's program cost amortization related to released programming during the three and nine months ended September 29, 2024 and October 1, 2023, consist of the following:

Three Months Ended Nine Months Ended

September 29,

2024 October 1,

2023 September 29,

2024 October 1,

Investment in production $ 7.9 $ 60.3 $ 24.5 $ 294.5

Investment in content — 8.1 — 30.8

Total program cost amortization $ 7.9 $ 68.4 $ 24.5 $ 325.3

Condensed Notes to Consolidated Financial Statements

(Millions of Dollars and Shares Except Per Share Data)

The Company's program cost amortization, that related to investment in production that were released, during the three months ended March 30, 2025 and March 31, 2024, were $ 7.4 million and $ 8.1 million, respectively.

(10) Income Taxes

2 unchanged sentences

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

The effective tax rate ("ETR") was 23.1 % for the three months ended September 29, 2024, and 20.8 % for the three months ended October 1, 2023.

The following items caused the third quarter ETR in 2024 to be different from the third quarter 2023 ETR:

• During the three months ended September 29, 2024 the Company recorded a discrete tax expense of $ 1.1 million, primarily associated with the interest accruals on uncertain tax positions.

• During the three months ended October 1, 2023 the Company recorded a discrete tax benefit of $ 104.4 million, primarily associated with the loss on assets held for sale.

The ETR was 24.1 % for the nine months ended September 29, 2024, and 8.0 % for the nine months ended October 1, 2023.

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

• During the nine months ended September 29, 2024, the Company recorded unfavorable adjustments to the 2023 Loss on Sale of the Film & TV reporting unit of $ 24.4 million with no tax benefit.

The effective tax rate ("ETR") was 27.1 % for the three months ended March 30, 2025, and 27.1 % for the three months ended March 31, 2024.

The following items impacted the ETR for 2025 and 2024:

• During the three months ended March 30, 2025 the Company recorded an unfavorable adjustment to the Loss on Sale of the Film and TV reporting unit of $ 25.0 million with no tax benefit.

The Company also recorded a net discrete tax benefit of $ 0.3 million, primarily associated with stock-based compensation.

• During the three months ended March 31, 2024 the Company recorded an unfavorable adjustment to the Loss on Sale of the Film and TV reporting unit of $ 9.1 million with no tax benefit.

The Company also recorded a net discrete tax expense of $ 1.8 million, primarily associated with stock-based compensation.

• During the nine months ended October 1, 2023, the Company recorded an impairment of goodwill related to the Film and TV reporting unit of $ 231.2 million with no tax benefit.

The Company also recorded a net discrete tax benefit of $ 113.3 million, exclusive of the goodwill impairment, primarily associated with tax benefits on the impairment of trade names in the Film & TV reporting unit in the second quarter and loss on assets held for sale of $ 473.0 million in the third quarter.

(11) Fair Value of Financial Instruments

3 unchanged sentences

• Level 2 fair values are those based on quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable data for substantially the full term of the assets or liabilities;

• Level 3 fair values are based on inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

Condensed Notes to Consolidated Financial Statements

(Millions of Dollars and Shares Except Per Share Data)

At September 29, 2024, October 1, 2023 and December 31, 2023, the Company had the following assets and liabilities measured at fair value in its Consolidated Balance Sheets (excluding assets for which the fair value is measured using net asset value per share):

• Level 3 fair values are based on inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

The Company had the following assets and liabilities measured at fair value in its Consolidated Balance Sheets (excluding assets for which the fair value is measured using net asset value per share):

Fair Value Measurements Using:

1 unchanged sentence

(Level 2) Significant

September 29, 2024

Short-term investments $ 489.3 $ 489.3 $ — $ —

March 30, 2025

Available-for-sale securities $ 10.7 $ 10.7 $ — $ —

2 unchanged sentences

Derivatives $ 2.1 $ — $ 2.1 $ —

Option agreement 1.7 — — 1.7

Total liabilities $ 2.1 $ — $ 2.1 $ —

October 1, 2023

March 31, 2024

Available-for-sale securities $ 0.8 $ 0.8 $ — $ —

9 unchanged sentences

Derivatives $ 1.7 $ — $ 1.7 $ —

Option agreement 1.7 — — 1.7

Total Liabilities $ 1.7 $ — $ 1.7 $ —

At September 29, 2024, the Company held $ 489.3 million of U.S.

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

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

Condensed Notes to Consolidated Financial Statements

(Millions of Dollars and Shares Except Per Share Data)

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

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

There were no changes in these valuation techniques during the three and nine months ended September 29, 2024.

There were no material changes to fair value measurements of the Company's financial instruments which use significant unobservable inputs (Level 3) for three and nine months ended September 29, 2024 and October 1, 2023.

There were no changes in these valuation techniques during the three months ended March 30, 2025.

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

Other Fair Value Measurements

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

At September 29, 2024, October 1, 2023 and December 31, 2023, the carrying cost of these instruments approximated their fair value.

The Company's financial instruments at September 29, 2024, October 1, 2023 and December 31, 2023 also include certain assets and liabilities measured at fair value, as described above.

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

At March 30, 2025, March 31, 2024, and

Condensed Notes to Consolidated Financial Statements

(Millions of Dollars and Shares Except Per Share Data)

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

The Company's financial instruments at March 30, 2025, March 31, 2024, and December 29, 2024 also include certain assets and liabilities measured at fair value, as described above.

See Note 8, Long-Term Debt and Other Financing, for the fair value of the Company's outstanding debt.

(12) Derivative Financial Instruments

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.

The Company 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 and 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.

1 unchanged sentence

The Company believes that a default by a single counterparty would not have a material adverse effect on the financial condition of the Company.

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

The Company does not enter into derivative financial instruments for speculative purposes.

Cash Flow Hedges

1 unchanged sentence

These instruments hedge a portion of the Company's currency requirements associated with anticipated inventory purchases, product sales and other cross-border transactions, primarily for the remainder of 2025, and into 2026.

At September 29, 2024, October 1, 2023 and December 31, 2023, the notional amounts and fair values of the Company's foreign currency forward contracts designated as cash flow hedging instruments were as follows:

September 29, 2024 October 1, 2023 December 31, 2023

The notional amounts and fair values of the Company's foreign currency forward contracts designated as cash flow hedging instruments were as follows:

March 30, 2025 March 31, 2024 December 29, 2024

Hedged transaction Notional

3 unchanged sentences

Sales 144.4 ( 1.2 ) 75.3 ( 0.2 ) 86.0 ( 1.4 )

Royalties and Other 26.4 1.5 70.5 ( 0.9 ) 31.7 ( 0.5 )

Other 29.1 0.6 30.7 ( 1.1 ) 22.8 0.9

Total $ 368.3 $ 2.0 $ 257.2 $ ( 1.0 ) $ 240.3 $ 7.5

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 as follows:

Condensed Notes to Consolidated Financial Statements

(Millions of Dollars and Shares Except Per Share Data)

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

The fair values of the Company's foreign currency forward contracts designated as cash flow hedges are recorded in the Consolidated Balance Sheets at September 29, 2024, October 1, 2023 and December 31, 2023 as follows:

September 29,

2024 October 1,

2025 March 31,

2024 December 29,

4 unchanged sentences

Unrealized gains $ — $ 0.1 $ —

Unrealized losses — ( 0.1 ) —

Net unrealized gains $ — $ 0.1 $ —

7 unchanged sentences

Net unrealized losses $ ( 1.1 ) $ — $ —

Net gains (losses) on cash flow hedging activities have been reclassified from other comprehensive earnings (loss) to net earnings for the three and nine months ended September 29, 2024 and October 1, 2023 as follows:

Three Months Ended Nine Months Ended

September 29,

2024 October 1,

2023 September 29,

2024 October 1,

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

Three Months Ended

2025 March 31,

Statements of Operations Classification

2 unchanged sentences

Other 0.1 ( 0.1 )

Net realized (losses) gains $ ( 0.1 ) $ 2.9 $ 0.7 $ 2.0

Net realized gains (losses) $ 0.9 $ ( 0.1 )

Undesignated Hedges

1 unchanged sentence

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

As of September 29, 2024, October 1, 2023 and December 31, 2023, the total notional amounts of the Company's undesignated derivative instruments were $ 267.4 million, $ 807.5 million, and $ 340.5 million, respectively.

As of March 30, 2025, March 31, 2024 and December 29, 2024, the total notional amounts of the Company's undesignated derivative instruments were $ 263.2 million, $ 328.6 million, and $ 289.6 million, respectively.

Condensed Notes to Consolidated Financial Statements

(Millions of Dollars and Shares Except Per Share Data)

At September 29, 2024, October 1, 2023 and December 31, 2023, the fair values of the Company's undesignated derivative financial instruments were recorded in the Consolidated Balance Sheets as follows:

September 29,

2024 October 1,

The fair values of the Company's undesignated derivative financial instruments were recorded in the Consolidated Balance Sheets as follows:

2025 March 31,

2024 December 29,

7 unchanged sentences

Net unrealized losses $ ( 0.3 ) $ ( 0.2 ) $ ( 1.2 )

The Company recorded a net gain of $ 4.5 million and a net gain of $ 8.7 million for three and nine months ended September 29, 2024, respectively, and net gains of $ 15.1 million and $ 26.4 million, three and nine months ended October 1, 2023, respectively, on these instruments to Other (income) expense, net relating to the change in fair value of such derivatives, substantially offsetting gains and losses from the change in fair value of intercompany loans to which the contracts relate.

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

Condensed Notes to Consolidated Financial Statements

(Millions of Dollars and Shares Except Per Share Data)

The Company recorded a net gain of $ 2.2 million and $ 9.1 million for three months ended March 30, 2025 and March 31, 2024, respectively, on these instruments to Other (income) expense, net relating to the change in fair value of such derivatives, substantially offsetting gains and losses from the change in fair value of intercompany loans to which the contracts relate.

For additional information related to the Company's derivative financial instruments (see Note 6, Other Comprehensive Earnings (Loss) and Note 11, Fair Value of Financial Instruments).

(13) 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 September 29, 2024, the Company had a remaining balance of $ 0.6 million in severance and other employee expenses related to these programs included within Other accrued liabilities in the Consolidated Balance Sheets, after making payments of $ 1.9 million during the nine months ended September 29, 2024.

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

During 2022 and 2023, 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, which will include voluntary early retirement for certain groups of employees and additional involuntary reduction in employees ("Additional Actions").

The Company currently anticipates that the Additional Actions will be substantially complete over the next 18 to 24 months.

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

Starting in 2022, the Company 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 nine to twelve months .

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

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 September 29, 2024, the liability balance associated with the Program related restructuring actions consisted of severance payments recorded within Other accrued liabilities in the Consolidated Balance Sheets as follows:

Nine Months Ended

Operational Excellence September 29,

2024 October 1,

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

Three Months Ended

Operational Excellence March 30,

2025 March 31,

Balance at beginning of the year $ 46.9 $ 81.2

2 unchanged sentences

Ending Balance $ 39.1 $ 72.6

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 Program as of September 29, 2024:

Operational Excellence Total

2 unchanged sentences

Total expected charges on approved initiatives $ 156.3

Condensed Notes to Consolidated Financial Statements

(Millions of Dollars and Shares Except Per Share Data)

(14) Commitments and Contingencies

8 unchanged sentences

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

The Company has

Condensed Notes to Consolidated Financial Statements

(Millions of Dollars and Shares Except Per Share Data)

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.

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

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.

Contractual obligations and commercial commitments, as detailed in the Company's 2024 Form 10-K, did not materially change outside of certain payments made in the normal course of business, except as disclosed in Note 8, Long-Term Debt and Other Financing.

(15) Segment Reporting

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

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

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

1 unchanged sentence

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

• 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 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.

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.

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 adjustments to actual expenses and foreign exchange rates included in Corporate and Other.

Condensed Notes to Consolidated Financial Statements

(Millions of Dollars and Shares Except Per Share Data)

Information by segment and a reconciliation to reported amounts for the three and nine months ended September 29, 2024 and October 1, 2023 are as follows:

Three Months Ended Nine Months Ended

September 29,

2024 October 1,

2023 September 29,

2024 October 1,

Net revenues:

Consumer Products $ 860.1 $ 956.9 $ 1,797.6 $ 2,132.5

Wizards of the Coast and Digital Gaming 404.0 423.6 1,172.3 1,094.4

Entertainment 17.2 122.9 64.0 487.5

Corporate and Other — — — —

Information by segment and a reconciliation to reported amounts for the three months ended March 30, 2025 are as follows:

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

Revenues $ 505.8 $ 433.4 $ 38.0 $ 28.9 $ 1,006.1

Intersegment revenue 43.7 35.1 11.3 28.9 119.0

Total net revenues 462.1 398.3 26.7 — 887.1

Intercompany revenues:

Consumer Products $ 75.6 $ 72.7 $ 179.6 $ 226.8

Cost of sales 73.8 129.8 1.1 ( 0.2 ) 204.5

Program cost amortization — — 7.4 — 7.4

Royalties 10.2 50.7 ( 8.4 ) 4.5 57.0

Advertising 26.3 30.6 0.1 ( 1.6 ) 55.4

Amortization of intangible assets 2.1 10.1 4.7 0.1 17.0

Distribution (1)

9.0 31.8 — ( 0.7 ) 40.1

Managed expense (2)

110.7 189.2 33.0 2.1 335.0

Operating profit $ 230.0 $ ( 43.9 ) $ ( 11.2 ) $ ( 4.2 ) $ 170.7

Reconciliation to Earnings (loss) before income taxes:

Interest expense 41.6

Interest income ( 8.9 )

Other expense (income), net 1.4

Earnings before income taxes $ 136.6

(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, 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.

Managed expenses for the Entertainment segment included a $ 25.0 million non-cash loss associated with the sale of the eOne Film and TV business.

Information by segment and a reconciliation to reported amounts for the three months ended March 31, 2024 are as follows:

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

Revenues $ 354.2 $ 452.3 $ 36.5 $ 29.2 $ 872.2

Intersegment revenue 37.9 39.3 8.5 29.2 114.9

Total net revenues 316.3 413.0 28.0 — 757.3

Cost of sales 61.3 141.6 1.4 ( 0.1 ) 204.2

Program cost amortization — — 8.1 — 8.1

Royalties 10.5 48.3 ( 8.0 ) 0.1 50.9

Advertising 24.3 27.6 0.2 ( 0.6 ) 51.5

Amortization of intangible assets 2.1 11.1 3.8 — 17.0

Distribution (1)

6.7 33.6 — 0.1 40.4

Managed expense (2)

88.6 197.7 16.7 ( 34.0 ) 269.0

Operating profit $ 122.8 $ ( 46.9 ) $ 5.8 $ 34.5 $ 116.2

Reconciliation to Earnings (loss) before income taxes:

Interest expense 38.5

Interest income ( 8.3 )

Other expense (income), net 5.0

Earnings before income taxes $ 81.0

(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, and selling and administrative expense.

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.

Condensed Notes to Consolidated Financial Statements

(Millions of Dollars and Shares Except Per Share Data)

Total assets information by segments is as follows:

(In millions) March 30,

2025 March 31,

2024 December 29,

Wizards of the Coast and Digital Gaming $ 6,250.4 $ 4,662.1 $ 5,778.4

Consumer Products 7,845.7 6,599.9 7,785.2

Entertainment 2,819.8 2,901.5 2,857.8

Corporate and Other (1)

Total intercompany revenues:

( 10,875.9 ) ( 7,960.5 ) ( 10,081.1 )

Operating profit (loss):

Total $ 6,040.0 $ 6,203.0 $ 6,340.3

(1) Corporate and Other consists of investments in subsidiary and intercompany receivables.

Other supplemental information by segments are as follows:

Three Months Ended

(In millions) March 30,

2025 March 31,

Depreciation and intangible asset amortization (1)

Wizards of the Coast and Digital Gaming $ 4.6 $ 4.3

Consumer Products 18.2 21.6

Entertainment 5.1 4.2

Corporate and Other 6.3 8.2

Total $ 34.2 $ 38.3

Additions to property, plant and equipment

Wizards of the Coast and Digital Gaming $ 1.7 $ 6.0

Consumer Products 11.3 11.4

Entertainment — —

Corporate and Other 0.8 4.7

Total Operating profit (loss) 301.9 ( 169.5 ) 630.2 ( 340.2 )

Interest expense 46.2 47.1 127.7 140.0

Interest income ( 14.7 ) ( 3.8 ) ( 36.0 ) ( 15.6 )

Other non-operating expense (income) ( 19.9 ) 2.2 ( 15.7 ) ( 0.7 )

Earnings (loss) before income taxes $ 290.3 $ ( 215.0 ) $ 554.2 $ ( 463.9 )

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

(2) During the nine months ended September 29, 2024, the Company recorded two non-recurring prior year adjustments:

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

See Note 1 for further information.

Both of these originally related to the Consumer Products segment;

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

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

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

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.

(4) Corporate and Other Operating profit (loss) includes Operational Excellence related transformation office and consulting fees of $ 6.0 million and $ 18.5 million for the three and nine months ended September 29, 2024, respectively, and $ 8.4 million and $ 29.4 million for the three and nine months ended October 1, 2023, respectively, which are recorded within Selling, distribution and administration costs within the Consolidated Statements of Operations.

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

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

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

Total $ 13.8 $ 22.1

(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 amortization of intangible assets.

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

What changed 10-Q

Item 1. Financial Statements