Cover
Cover - shares | 9 Months Ended | |
Sep. 27, 2020 | Oct. 26, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 27, 2020 | |
Document Transition Report | false | |
Entity File Number | 1-6682 | |
Entity Registrant Name | HASBRO, INC. | |
Entity Central Index Key | 0000046080 | |
Current Fiscal Year End Date | --12-27 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Incorporation, State or Country Code | RI | |
Entity Tax Identification Number | 05-0155090 | |
Entity Address, Address Line One | 1027 Newport Avenue | |
Entity Address, City or Town | Pawtucket, | |
Entity Address, State or Province | RI | |
Entity Address, Postal Zip Code | 02861 | |
City Area Code | 401 | |
Local Phone Number | 431-8697 | |
Title of 12(b) Security | Common Stock, $0.50 par value per share | |
Trading Symbol | HAS | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding (in shares) | 137,030,619 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 27, 2020 | Dec. 29, 2019 | Sep. 29, 2019 |
Current assets | |||
Cash and cash equivalents including restricted cash of $71,200, $0 and $0 | $ 1,132,405 | $ 4,580,369 | $ 1,060,432 |
Accounts receivable, less allowance for doubtful accounts of $23,700 $18,200 and $17,200 | 1,438,360 | 1,410,597 | 1,416,879 |
Inventories | 540,039 | 446,105 | 589,132 |
Prepaid expenses and other current assets | 648,158 | 310,450 | 346,687 |
Total current assets | 3,758,962 | 6,747,521 | 3,413,130 |
Property, plant and equipment, less accumulated depreciation of $546,800 $496,700 and $505,900 | 477,154 | 382,248 | 371,881 |
Other assets | |||
Goodwill | 3,644,118 | 494,584 | 485,042 |
Other intangible assets, net of accumulated amortization of $885,800 $771,700 and $783,500 | 1,546,810 | 646,305 | 658,350 |
Other | 1,276,133 | 584,970 | 626,221 |
Total other assets | 6,467,061 | 1,725,859 | 1,769,613 |
Total assets | 10,703,177 | 8,855,628 | 5,554,624 |
Current liabilities | |||
Short-term borrowings | 10,032 | 503 | 7,903 |
Current portion of long-term debt | 369,269 | 0 | 0 |
Accounts payable | 466,172 | 343,927 | 501,136 |
Accrued liabilities | 1,470,076 | 912,652 | 957,696 |
Total current liabilities | 2,315,549 | 1,257,082 | 1,466,735 |
Long-term debt | 4,777,807 | 4,046,457 | 1,696,204 |
Other liabilities | 778,514 | 556,559 | 550,778 |
Total liabilities | 7,871,870 | 5,860,098 | 3,713,717 |
Redeemable noncontrolling interests | 22,876 | 0 | 0 |
Shareholders' equity | |||
Preference stock of $2.50 par value. Authorized 5,000,000 shares; none issued | 0 | 0 | 0 |
Common stock of $0.50 par value. Authorized 600,000,000 shares; issued 220,286,736 shares at September 27, 2020, 209,694,630 shares at September 29, 2019, and 220,286,736 shares at December 29, 2019 | 110,143 | 110,143 | 104,847 |
Additional paid-in capital | 2,311,433 | 2,275,726 | 1,301,366 |
Retained earnings | 4,192,434 | 4,354,619 | 4,180,331 |
Accumulated other comprehensive loss | (280,330) | (184,220) | (185,376) |
Treasury stock, at cost; 83,256,622 shares at September 27, 2020; 83,442,005 shares at September 29, 2019; and 83,424,129 shares at December 29, 2019 | (3,559,929) | (3,560,738) | (3,560,261) |
Noncontrolling interests | 34,680 | 0 | 0 |
Total shareholders' equity | 2,808,431 | 2,995,530 | 1,840,907 |
Total liabilities, noncontrolling interests and shareholders' equity | $ 10,703,177 | $ 8,855,628 | $ 5,554,624 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 27, 2020 | Dec. 29, 2019 | Sep. 29, 2019 |
ASSETS | |||
Restricted cash | $ 71,200 | $ 0 | $ 0 |
Accounts receivable, allowance for doubtful accounts | 23,700 | 17,200 | 18,200 |
Property, plant and equipment, accumulated depreciation | 546,800 | 505,900 | 496,700 |
Other intangibles, accumulated amortization | $ 885,800 | $ 783,500 | $ 771,700 |
Preference stock, par value (in dollars per share) | $ 2.50 | $ 2.50 | $ 2.50 |
Preference stock, authorized shares (in shares) | 5,000,000 | 5,000,000 | 5,000,000 |
Preference stock, issued (in shares) | 0 | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.50 | $ 0.50 | $ 0.50 |
Common stock, authorized shares (in shares) | 600,000,000 | 600,000,000 | 600,000,000 |
Common stock, issued (in shares) | 220,286,736 | 220,286,736 | 209,694,630 |
Treasury stock (in shares) | 83,256,622 | 83,424,129 | 83,442,005 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 27, 2020 | Sep. 29, 2019 | Sep. 27, 2020 | Sep. 29, 2019 | |
Income Statement [Abstract] | ||||
Net revenues | $ 1,776,623 | $ 1,575,173 | $ 3,742,472 | $ 3,292,220 |
Costs and expenses: | ||||
Cost of sales | 610,105 | 627,119 | 1,126,044 | 1,230,800 |
Program cost amortization | 85,424 | 28,028 | 268,245 | 58,105 |
Royalties | 176,938 | 128,008 | 387,097 | 258,957 |
Product development | 62,709 | 67,354 | 174,863 | 189,246 |
Advertising | 137,408 | 140,256 | 311,415 | 309,659 |
Amortization of intangibles | 36,172 | 11,814 | 107,685 | 35,445 |
Selling, distribution and administration | 325,360 | 275,384 | 885,680 | 748,338 |
Acquisition and related costs | 5,949 | 0 | 165,993 | 0 |
Total costs and expenses | 1,440,065 | 1,277,963 | 3,427,022 | 2,830,550 |
Operating profit | 336,558 | 297,210 | 315,450 | 461,670 |
Non-operating expense (income): | ||||
Interest expense | 49,400 | 22,764 | 153,702 | 67,096 |
Interest income | (713) | (5,486) | (6,411) | (19,164) |
Other (income) expense, net | (11,327) | 20,186 | (15,429) | 118,289 |
Total non-operating expense, net | 37,360 | 37,464 | 131,862 | 166,221 |
Earnings before income taxes | 299,198 | 259,746 | 183,588 | 295,449 |
Income tax expense | 79,215 | 46,797 | 64,313 | 42,340 |
Net earnings | 219,983 | 212,949 | 119,275 | 253,109 |
Net earnings (loss) attributable to noncontrolling interests | (915) | 0 | 1,929 | 0 |
Net earnings attributable to Hasbro, Inc. | $ 220,898 | $ 212,949 | $ 117,346 | $ 253,109 |
Net earnings (loss) per common share: | ||||
Basic (in dollars per share) | $ 1.61 | $ 1.68 | $ 0.86 | $ 2 |
Diluted (in dollars per share) | 1.61 | 1.67 | 0.85 | 1.99 |
Cash dividends declared per common share (in dollars per share) | $ 0.68 | $ 0.68 | $ 2.04 | $ 2.04 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Earnings - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 27, 2020 | Sep. 29, 2019 | Sep. 27, 2020 | Sep. 29, 2019 | |
Statement of Comprehensive Income [Abstract] | ||||
Net earnings | $ 219,983 | $ 212,949 | $ 119,275 | $ 253,109 |
Other comprehensive earnings (losses): | ||||
Foreign currency translation adjustments, net of tax | 40,821 | (16,447) | (98,144) | (6,120) |
Unrealized holding (losses) gains on available-for-sale securities, net of tax | (809) | (155) | 1,315 | 400 |
Net (losses) gains on cash flow hedging activities, net of tax | (5,655) | 9,514 | 15,670 | 14,027 |
Changes in unrecognized pension amounts, net of tax | 0 | 0 | 0 | 19,589 |
Reclassifications to earnings, net of tax: | ||||
Net gains on cash flow hedging activities | (6,833) | (5,392) | (15,775) | (10,188) |
Amortization of unrecognized pension and postretirement amounts | 274 | 279 | 824 | 5,578 |
Settlement of U.S. defined benefit plan | 0 | 0 | 0 | 85,852 |
Total other comprehensive earnings (loss), net of tax | 27,798 | (12,201) | (96,110) | 109,138 |
Total comprehensive earnings (loss) attributable to noncontrolling interests | (915) | 0 | 1,929 | 0 |
Total comprehensive earnings attributable to Hasbro, Inc. | $ 248,696 | $ 200,748 | $ 21,236 | $ 362,247 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 27, 2020 | Sep. 29, 2019 | |
Statement of Cash Flows [Abstract] | ||
Net earnings | $ 119,275 | $ 253,109 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | ||
Depreciation of plant and equipment | 94,100 | 101,016 |
Amortization of intangibles | 107,685 | 35,445 |
Asset impairments | 40,878 | 0 |
Program cost amortization | 268,245 | 58,105 |
Deferred income taxes | 12,549 | (27,974) |
Stock-based compensation | 40,015 | 24,787 |
Non-cash pension settlement | 0 | 110,777 |
Other non-cash items | (1,646) | 13,347 |
Change in operating assets and liabilities net of acquired balances: | ||
Decrease (increase) in accounts receivable | 165,593 | (236,010) |
Increase in inventories | (96,907) | (154,476) |
(Increase) decrease in prepaid expenses and other current assets | (10,007) | 2,440 |
Program spend, net | (294,597) | (43,857) |
Increase in accounts payable and accrued liabilities | 18,980 | 236,777 |
Change in net deemed repatriation tax | (18,364) | (14,550) |
Other | 48,511 | 30,632 |
Net cash provided by operating activities | 494,310 | 389,568 |
Cash flows from investing activities: | ||
Additions to property, plant and equipment | (92,059) | (90,800) |
Acquisitions, net of cash acquired | (4,403,929) | 0 |
Other | 24,297 | 4,340 |
Net cash utilized by investing activities | (4,471,691) | (86,460) |
Cash flows from financing activities: | ||
Proceeds from borrowings with maturity greater than three months | 1,036,037 | 0 |
Repayments of borrowings with maturity greater than three months | (147,324) | 0 |
Net proceeds from other short-term borrowings | (319) | |
Net proceeds from other short-term borrowings | (1,425) | |
Purchases of common stock | 0 | (60,137) |
Stock-based compensation transactions | 1,830 | 29,737 |
Dividends paid | (279,423) | (250,760) |
Payments related to tax withholding for share-based compensation | (5,935) | (13,061) |
Redemption of equity instruments | (47,399) | 0 |
Deferred acquisition payments | 0 | (100,000) |
Debt acquisition costs | 0 | (21,534) |
Other | (6,949) | 0 |
Net cash provided (utilized) by financing activities | 550,518 | (417,180) |
Effect of exchange rate changes on cash | (21,101) | (7,867) |
Decrease in cash, cash equivalents and restricted cash | (3,447,964) | (121,939) |
Cash, cash equivalents and restricted cash at beginning of year | 4,580,369 | 1,182,371 |
Cash, cash equivalents and restricted cash at end of period | 1,132,405 | 1,060,432 |
Cash paid during the period for: | ||
Interest | 123,595 | 69,601 |
Income taxes | $ 66,008 | $ 64,917 |
Consolidated Statements of Shar
Consolidated Statements of Shareholder's Equity and Redeemable Noncontrolling Interests - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Treasury Stock | Noncontrolling Interests |
Beginning balance at Dec. 30, 2018 | $ 1,754,486 | $ 104,847 | $ 1,275,059 | $ 4,184,374 | $ (294,514) | $ (3,515,280) | $ 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net earnings (loss) attributable to Hasbro, Inc. | 253,109 | 253,109 | |||||
Other comprehensive loss | 109,138 | 109,138 | |||||
Stock-based compensation transactions | 16,676 | 1,756 | 14,920 | ||||
Purchases of common stock | (60,137) | (60,137) | |||||
Stock-based compensation expense | 24,787 | 24,551 | 236 | ||||
Dividends declared | (257,152) | (257,152) | |||||
Ending balance at Sep. 29, 2019 | 1,840,907 | 104,847 | 1,301,366 | 4,180,331 | (185,376) | (3,560,261) | 0 |
Beginning balance at Dec. 30, 2018 | 0 | ||||||
Ending balance at Sep. 29, 2019 | 0 | ||||||
Beginning balance at Jun. 30, 2019 | 1,715,869 | 104,847 | 1,290,540 | 4,053,266 | (173,175) | (3,559,609) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net earnings (loss) attributable to Hasbro, Inc. | 212,949 | 212,949 | |||||
Other comprehensive loss | (12,201) | (12,201) | |||||
Stock-based compensation transactions | 2,785 | 1,933 | 852 | ||||
Purchases of common stock | (1,504) | (1,504) | |||||
Stock-based compensation expense | 8,893 | 8,893 | 0 | ||||
Dividends declared | (85,884) | (85,884) | |||||
Ending balance at Sep. 29, 2019 | 1,840,907 | 104,847 | 1,301,366 | 4,180,331 | (185,376) | (3,560,261) | 0 |
Beginning balance at Jun. 30, 2019 | 0 | ||||||
Ending balance at Sep. 29, 2019 | 0 | ||||||
Beginning balance at Dec. 29, 2019 | 2,995,530 | 110,143 | 2,275,726 | 4,354,619 | (184,220) | (3,560,738) | 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Noncontrolling interests related to acquisition of Entertainment One Ltd. | 38,561 | 38,561 | |||||
Net earnings (loss) attributable to Hasbro, Inc. | 117,346 | 117,346 | |||||
Net earnings (loss) attributable to noncontrolling interests | 2,067 | 2,067 | |||||
Buyout of noncontrolling interest | 606 | 606 | |||||
Other comprehensive loss | (96,110) | (96,110) | |||||
Stock-based compensation transactions | (4,105) | (4,613) | 508 | ||||
Stock-based compensation expense | 40,015 | 39,714 | 301 | ||||
Dividends declared | (279,531) | (279,531) | |||||
Distributions paid to noncontrolling owners and other foreign exchange | (5,948) | (5,948) | |||||
Ending balance at Sep. 27, 2020 | 2,808,431 | 110,143 | 2,311,433 | 4,192,434 | (280,330) | (3,559,929) | 34,680 |
Beginning balance at Dec. 29, 2019 | 0 | ||||||
Increase (Decrease) in Temporary Equity [Roll Forward] | |||||||
Noncontrolling interests related to acquisition of Entertainment One Ltd. | 26,241 | ||||||
Net earnings (loss) attributable to noncontrolling interests | (138) | ||||||
Distributions paid to noncontrolling owners and other foreign exchange | (3,227) | ||||||
Ending balance at Sep. 27, 2020 | 22,876 | ||||||
Beginning balance at Jun. 28, 2020 | 2,642,151 | 110,143 | 2,297,267 | 4,064,715 | (308,128) | (3,559,990) | 38,144 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net earnings (loss) attributable to Hasbro, Inc. | 220,898 | 220,898 | |||||
Net earnings (loss) attributable to noncontrolling interests | (901) | (901) | |||||
Buyout of noncontrolling interest | 606 | 606 | |||||
Other comprehensive loss | 27,798 | 27,798 | |||||
Stock-based compensation transactions | (264) | (325) | 61 | ||||
Stock-based compensation expense | 13,885 | 13,885 | 0 | 0 | |||
Dividends declared | (93,179) | (93,179) | 0 | ||||
Distributions paid to noncontrolling owners and other foreign exchange | (2,563) | (2,563) | |||||
Ending balance at Sep. 27, 2020 | 2,808,431 | $ 110,143 | $ 2,311,433 | $ 4,192,434 | $ (280,330) | $ (3,559,929) | $ 34,680 |
Beginning balance at Jun. 28, 2020 | 24,133 | ||||||
Increase (Decrease) in Temporary Equity [Roll Forward] | |||||||
Net earnings (loss) attributable to noncontrolling interests | (14) | ||||||
Distributions paid to noncontrolling owners and other foreign exchange | (1,243) | ||||||
Ending balance at Sep. 27, 2020 | $ 22,876 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 27, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation 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 majority-owned subsidiaries ("Hasbro" or the "Company") as of September 27, 2020 and September 29, 2019, and the results of its operations and cash flows and shareholders' equity for the periods then ended in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP"). The preparation of consolidated financial statements in conformity with U.S. GAAP 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. The quarters ended September 27, 2020 and September 29, 2019 were each 13-week periods. The nine-month periods ended September 27, 2020 and September 29, 2019 were each 39-week periods. The results of operations for the quarter ended September 27, 2020 are not necessarily indicative of results to be expected for the full year 2020, nor were those of the comparable 2019 period representative of those actually experienced for the full year 2019. Following the Company's acquisition of Entertainment One Ltd. ("eOne" or "eOne Acquisition") (see Note 3), beginning with the first quarter of 2020, the eOne operating segment was added to the Company's reporting structure and is comprised of all legacy eOne operations. Over time, the Company plans to transition towards reflecting all of its entertainment operations within the eOne segment. The Company also expects to shift the consumer product and digital licensing business and toy and game sales related to the eOne preschool brands to legacy Hasbro segments, including related toy and game operations into the Company's geographic commercial segments in late 2021 and 2022. In addition to the eOne segment, the Company's brand architecture now reflects the addition of the TV, Film and Entertainment brand portfolio which consists of legacy eOne film and TV revenues. Operations related to eOne brands, including PEPPA PIG, PJ MASKS and RICKY ZOOM, are reported in the Emerging Brands portfolio. eOne's results of operations and financial position are included in the Company's consolidated financial statements and accompanying condensed footnotes since the date of acquisition. For more information on the eOne Acquisition see Note 3. Significant Accounting Policies The Company's significant accounting policies are summarized in Note 1 to the consolidated financial statements included in our Form 10-K for the year ended December 29, 2019. An update and supplement to these accounting policies associated with our acquisition of eOne is below. 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. The value of the non-redeemable noncontrolling interests is presented in the consolidated balance sheets within total shareholders' equity. Earnings (losses) attributable to the redeemable noncontrolling interests and non-redeemable noncontrolling interests are presented as a separate line on the consolidated statements of operations which is necessary to identify those earnings (losses) specifically attributable to Hasbro. A breakout of the redeemable noncontrolling interests and non-redeemable noncontrolling interests acquired is listed below. Name Country of Incorporation Ownership Interest Proportion Held Principal Activity Astley Baker Davies Limited England and Wales Nonredeemable 70 % Ownership of intellectual property Whizz Kid Entertainment Limited (1) England and Wales Redeemable 100 % Production of television programs MR Productions Holdings, LLC United States Redeemable 75 % Film development Renegade Entertainment, LLC United States Redeemable 65 % Production of television programs Round Room Live, LLC United States Nonredeemable 60 % Production of live events (1) During the third quarter of 2020, Entertainment One U.K. Holdings Ltd., a subsidiary of the Company, acquired the remaining 30% of Whizz Kid Entertainment Limited, making it a wholly owned affiliate of the Company. Production Financing Production financing relates to financing facilities for certain of the Company's television and film productions. Beginning in the first quarter of 2020 with the acquisition of eOne, the Company funded certain of its television and film productions using production financing facilities. Production financing facilities are secured by the assets and future revenues of the individual production subsidiaries, typically have maturities of less than two years while the titles are in production, and are repaid once the production is delivered and all tax credits, broadcaster pre-sales and international sales have been received. 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. At September 27, 2020, $71,194 of the Company's cash was restricted by such facilities. Investment in Productions and Acquired Content Rights The cost of investments in programming ("IIP") and investments in content rights ("IIC") for eOne's television and film libraries are recorded in the consolidated balance sheets at amounts considered recoverable against future revenues. These amounts are amortized to program cost amortization using a model that reflects the consumption of the asset as it is released through different exploitation windows (e.g., broadcast licenses, theatrical release and home entertainment) and the expected revenue earned in each of those stages of release over a period not exceeding 10 years. Amounts capitalized are reviewed regularly and any portion of the unamortized amount that appears not to be recoverable from future net revenues will be written off to program cost amortization during the period in which the loss becomes evident. Certain of these agreements require the Company to pay minimum guaranteed advances ("MGs") for participations and residuals. MGs are recognized in the consolidated balance sheets when a liability arises, usually on delivery of the television or film program to the Company. The current portion of MGs are recorded as Payables and Accrued Liabilities and the long-term portion are recorded as Other Liabilities. These consolidated financial statements have been prepared without audit, pursuant to the rules and regulations of the U.S. Securities and Exchange Commission ("SEC"). Certain information and disclosures normally included in the consolidated financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations. The Company filed with the SEC audited consolidated financial statements for the fiscal year ended December 29, 2019 in its Annual Report on Form 10-K ("2019 Form 10-K"), which includes all such information and disclosures and, accordingly, should be read in conjunction with the financial information included herein. Recently Adopted Accounting Standards In June 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update No. 2016-13 (ASU 2016-13) Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The amendments in this update provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. The standard update replaces the incurred loss impairment methodology with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. For public companies, this standard is effective for annual reporting periods beginning after December 15, 2019, and early adoption was permitted. The Company adopted the standard in the first quarter of 2020 and the adoption of the standard did not have a material impact on its consolidated financial statements. In August 2018, the FASB issued Accounting Standards Update No. 2018-13 (ASU 2018-13), Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement. The amendments in this update modify the disclosure requirements on fair value measurements in Topic 820, Fair Value Measurement, specifically related to disclosures surrounding Level 3 asset balances, fair value measurement methods, related gains and losses and fair value hierarchy transfers. For public companies, this standard is effective for annual reporting periods beginning after December 15, 2019, and early adoption was permitted. The Company adopted the standard in the first quarter of 2020 and the adoption of the standard did not have a material impact on its consolidated financial statements. In March 2019, the FASB issued Accounting Standards Update No. 2019-02 (ASU 2019-02) Entertainment-Films-Other Assets-Film Costs (Subtopic 926-20) and Entertainment-Broadcasters-Intangibles-Goodwill and Other (Subtopic 920-350): Improvements to Accounting for Costs of Films and License Agreements for Program Materials. The amendments in this update align cost capitalization of episodic television series production costs with that of film production cost capitalization. In addition, this update addresses impairment testing procedures with regard to film groups, when a film or license agreement is expected to be monetized with other films and/or license agreements. The intention of this update is to align accounting treatment with changes in production and distribution models within the entertainment industry and to provide increased transparency of information provided to users of financial statements about produced and licensed content. For public companies, this standard is effective for annual reporting periods beginning after December 15, 2019, and early adoption was permitted. The Company adopted the standard in the first quarter of 2020 and the adoption of the standard did not have a material impact on its consolidated financial statements. Recently Issued Accounting Pronouncements In August 2018, the FASB issued Accounting Standards Update No. 2018-14 (ASU 2018-14) Compensation - Retirement Benefits - Defined Benefit Plans - General (Subtopic 715-20): Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans. The amendments in this update modify the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. For public companies, this standard is effective for annual reporting periods beginning after December 15, 2020, and early adoption is permitted. The standard relates to financial statement disclosure only and will not have an impact on the Company's consolidated statement of financial position, statements of operations and comprehensive earnings (loss) or statement of cash flows. In March 2020, the FASB issued Accounting Standards Update No. 2020-04 (ASU 2020-04) Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. The amendments in this update provide optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships, and other transactions, for a limited period of time, to ease the potential burden of recognizing the effects of reference rate reform on financial reporting. The amendments in this update apply to contracts, hedging relationships and other transactions that reference the London Inter-Bank Offered Rate ("LIBOR") or another reference rate expected to be discontinued due to the global transition away from LIBOR and certain other interbank offered rates. An entity may elect to apply the amendments provided by this update beginning March 12, 2020 through December 31, 2022. The Company is currently evaluating this option as it relates to its contracts that reference LIBOR, as well as the impact of the standard to the Company's consolidated financial statements. |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Sep. 27, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition Revenue Recognition Revenue is recognized when control of the promised goods or content is transferred to the customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for transferring those goods or content. 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. Contract Assets and Liabilities Within our Entertainment, Licensing and Digital segment and our eOne segment the Company may receive royalty payments from licensees in advance of the licensees’ subsequent sales to their customers, or in advance of the Company’s performance obligation being satisfied. In addition, the Company may receive payments from its digital gaming business in advance of the recognition of the revenues. The Company defers revenues on these advanced payments until its performance obligation is satisfied and records the aggregate deferred revenues as contract liabilities. The current portion of contract liabilities were recorded within Accrued Liabilities and the long-term portion were recorded as Other Non-current Liabilities in the Company’s consolidated balance sheets. The Company records contract assets in the case of minimum guarantees that are being recognized ratably over the term of the respective license periods which varies based on sales over and above the contracts’ minimum guarantee. The current portion of contract assets were recorded in Prepaid Expenses and Other Current Assets, respectively, and the long-term portion were recorded as Other Long-Term Assets. At September 27, 2020 and September 29, 2019, the Company had the following contract assets and liabilities in its consolidated balance sheets: September 27, 2020 September 29, 2019 Assets Contract assets - current $ 271,786 32,199 Contract assets - long term 84,892 12,802 Total $ 356,678 45,001 Liabilities Contract liabilities - current $ 147,554 48,465 Contract liabilities - long term 17,872 8,423 Total $ 165,426 56,888 In connection with the Company’s acquisition of eOne, the Company acquired $283,329 of contract assets, of which $232,184 were recorded in Prepaid Expenses and Other Current Assets and $51,145 were recorded in Other Long-term Assets, within the Company’s consolidated balances sheets. In addition, the Company acquired deferred revenues from eOne in the amount of $152,266, of which $144,094 were recorded in Accrued Liabilities and $8,172 were recorded in Other Non-current Liabilities within the Company's consolidated balance sheets. For the nine months ended September 27, 2020, the Company recognized all revenues related to the acquired current contract liabilities. Contract assets and liabilities attributable to eOne represent approximately 80% and 56% of total contract asset balances and total contract liability balances, respectively, as of September 27, 2020. Disaggregation of revenues The Company disaggregates its revenues from contracts with customers by segment: U.S. and Canada, International, Entertainment, Licensing and Digital, and eOne. The Company further disaggregates revenues within its International segment by major geographic region: Europe, Latin America, and Asia Pacific. Finally, the Company disaggregates its revenues by brand portfolio into five brand categories: Franchise brands, Partner brands, Hasbro gaming, Emerging brands, and TV/Film/Entertainment. We believe these collectively depict how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors. See Note 13 for further information. |
Business Combination
Business Combination | 9 Months Ended |
Sep. 27, 2020 | |
Business Combinations [Abstract] | |
Business Combination | Business Combination On December 30, 2019, the Company completed its acquisition of eOne, a global independent studio that specializes in the development, acquisition, production, financing, distribution and sales of entertainment content. eOne's principal brand, PEPPA PIG, which was launched in the United Kingdom in May 2004, entertains preschool children worldwide with much of its historical revenue generated through licensing and merchandising programs across multiple retail categories. eOne’s portfolio of preschool brands also includes PJ MASKS and RICKY ZOOM. The addition of eOne accelerates the Company's brand blueprint strategy by expanding our brand portfolio with eOne's global preschool brands, adding proven TV and film expertise and executive leadership as well as by enhancing brand building capabilities and our storytelling capabilities to strengthen Hasbro brands. The all-cash transaction was valued at approximately £2,900,000 based on the consideration of £5.60 per common share of eOne. Converted at the rate of $1.31 USD/GBP on December 30, 2019, the cash consideration for shares outstanding was approximately $3,658,000. The Company also redeemed eOne's outstanding senior secured notes and paid off the debt outstanding under eOne's revolving credit facility, which together represented approximately $831,000 of eOne's indebtedness. The total cash consideration transferred by the Company was approximately $4,635,000. The total consideration transferred, in thousands of dollars except per share data, was as follows: Acquisition Consideration eOne common shares outstanding as of December 30, 2019 498,040 Cash consideration per share $ 7.35 Total consideration for shares outstanding 3,658,345 Cash consideration for employee share based payment awards outstanding 145,566 Cash consideration for extinguishment of debt 831,130 Total cash consideration 4,635,041 Less: Employee awards to be recorded as future stock compensation expense 47,399 Total consideration transferred $ 4,587,642 The Company financed the acquisition with proceeds from the following debt and equity financings: (1) the issuance of senior unsecured notes in an aggregate principal amount of $2,375,000 in November 2019, (2) the issuance of 10,592 shares of common stock at a public offering price of $95.00 per share in November 2019 (resulting in net proceeds of $975,185) and (3) $1,000,000 in term loans provided by a term loan agreement, which were borrowed on the date of closing. See Note 7 for further discussion of the issuance of the senior unsecured notes and term loan agreement. The acquisition was accounted for as a business combination under FASB Accounting Standards Codification Topic 805, Business Combinations (“Topic 805”). Pursuant to Topic 805, the Company allocated the eOne purchase price to tangible and identifiable intangible assets acquired and liabilities assumed based on their estimated fair values as of the acquisition date, December 30, 2019. The excess of the purchase price over those fair values was recorded to goodwill. The Company's evaluations of the facts and circumstances available as of December 30, 2019, to assign fair values to assets acquired and liabilities assumed, including income tax related amounts, are ongoing. As we complete further analysis of assets including program rights, investment in films and television content, intangible assets, as well as deferred revenue, noncontrolling interest, tax and certain other liabilities, additional information impacting the assets acquired, liabilities assumed and the related allocation thereof, may become available. A change in information related to the net assets acquired may change the amount of the purchase price assigned to goodwill, and as a result, the preliminary fair values set forth below are subject to adjustment as additional information is obtained and valuations are completed. Provisional adjustments, if any, will be recognized during the reporting period in which the adjustments are determined. We expect to finalize the purchase price allocation as soon as practicable, but no later than one year from the acquisition date. During the first nine months of 2020 the Company made adjustments to the preliminary allocation based on more detailed information obtained about the specific assets acquired and liabilities assumed. The adjustments made to the fair value of acquired investments in productions and content and intangible assets did not result in material changes to the amortization expense recorded in the previous quarter. The following table summarizes our preliminary allocation of the December 30, 2019 eOne purchase price (in thousands of dollars), as adjusted during the first nine months of 2020: Initial Estimated Fair Value Measurement Period Adjustments Updated Estimated Fair Value Cash, cash equivalents and restricted cash $ 183,713 $ — $ 183,713 Accounts receivable, net 259,061 36,093 295,154 Inventories 7,029 — 7,029 Other current assets 286,270 (570) 285,700 Property, plant and equipment (including right of use assets) 90,339 35,333 125,672 Intangible assets 1,055,249 751 1,056,000 Content assets - IIC and IIP 751,524 (140,234) 611,290 Other assets 183,209 (93,490) 89,719 Short-term borrowings (11,011) — (11,011) Current portion of long-term debt (60,533) (55,267) (115,800) Accounts payable, and accrued liabilities (761,086) 58,344 (702,742) Long-term debt (149,118) 55,267 (93,851) Other liabilities (262,644) 34,878 (227,766) Noncontrolling interests (63,541) (1,261) (64,802) Estimated fair value of net assets acquired 1,508,461 (70,156) 1,438,305 Goodwill 3,079,181 70,156 3,149,337 Total purchase price $ 4,587,642 $ — $ 4,587,642 Intangible assets consist of intellectual property associated with established brands, eOne artist relationships, eOne music catalogs and trademarks and tradenames with estimated useful lives ranging from 7 to 15 years, determined based on when the related cash flows are expected to be realized. The fair value of the intangible assets acquired was determined based on the estimated future cash flows to be generated from the acquired assets, considering assumptions related to contract renewal rates and estimated brand franchise revenue growth. Investments in productions and content, or IIP and IIC, includes the fair value of completed films and television programs which have been produced by eOne or for which eOne has acquired distribution rights, as well as the fair value of films and television programs in production, pre-production and development. For films and television programs, fair values were estimated based on forecasted cash flows, discounted to present value. For titles less than 3 years old and titles in development, the content assets will be amortized using the individual film forecast method, wherein the amortization will phase to the revenues incurred. For titles over 3 years old, the estimated useful life is 10 years, and will be amortized straight-line over that period. Deferred tax liabilities within other liabilities were adjusted to record the deferred tax impact of purchase price accounting adjustments, primarily related to intangible assets. Other fair value adjustments were made to accounts receivable, net and other assets to reflect the fair value of certain assets upon acquisition. The former eOne senior notes were adjusted to fair value prior to extinguishment using quoted market values, and the fair value of the outstanding amounts under eOne's credit facility were estimated to approximate their carrying values. Goodwill of $3,149,337 represents the excess of the purchase price over the fair value of the underlying tangible and identifiable intangible assets acquired and liabilities assumed. The acquisition goodwill represents the value placed on the combined company’s brand building capabilities, our storytelling capabilities and franchise economics in TV, film and other mediums to strengthen Hasbro brands. In addition, the acquisition goodwill depicts added benefits of long-term profitable growth through in-sourcing toy and game production for the acquired preschool brands and cost-synergies, as well as future revenue growth opportunities. The goodwill recorded as part of this acquisition is included in the newly created eOne segment. The goodwill associated with the acquisition will not be amortized for financial reporting purposes and will not be deductible for federal tax purposes. Changes in the carrying amount of goodwill, by operating segment, for the quarter and nine months ended September 27, 2020 is as follows: Nine Months Ended September 27, 2020 (in thousands of dollars) U.S and Canada International Entertainment, Licensing and Digital eOne Total Balance at December 29, 2019 $ 291,577 170,218 32,789 — $ 494,584 Acquired during the period — — — 3,079,181 3,079,181 Measurement period adjustments — — — 70,156 70,156 Foreign exchange translation — 188 9 — 197 Balance at September 27, 2020 $ 291,577 170,406 32,798 3,149,337 $ 3,644,118 The following table summarizes net revenues and loss before income taxes of eOne included in the Company's Consolidated Statement of Operations since the date of acquisition for the quarter and nine months ended September 27, 2020 (in thousands of dollars). Quarter Ended Nine Months Ended September 27, 2020 September 27, 2020 eOne: Net revenues $ 193,474 $ 696,889 Loss before income taxes (30,793) (75,441) For the quarter and nine months ended September 27, 2020 the Company incurred $5,949 and $165,993, respectively, of charges related to the eOne Acquisition, which are recorded in acquisition and related costs within the Company’s Consolidated Statement of Operations. The acquisition and related costs for the quarter and nine months ended September 27, 2020 consisted of the following: • Acquisition and integration costs of $4,599 and $104,283 for the quarter and nine months ended September 27, 2020, respectively, including, for the nine months ended September 27, 2020, $47,399 of expense associated with the acceleration of eOne stock-based compensation and $38,168 of advisor fees settled at the closing of the acquisition, as well as integration costs; and • Restructuring and related costs of $1,350 and $61,710 for the quarter and nine months ended September 27, 2020, respectively, including severance and retention costs for the quarter and nine months ended September 27, 2020 of $1,350 and $20,832, respectively, as well as $40,878 in impairment charges for certain definite-lived intangible and production assets for the nine months ended September 27, 2020. The impairment charges of $40,878 were driven by the change in strategy for the combined company’s entertainment assets. For the quarter ended September 27, 2020 , all acquisition and related costs were included in Corporate and Eliminations. For the nine months ended September 27, 2020 , $77,729 and $20,831 of acquisition and related charges were included within the eOne and Entertainment, Licensing and Digital results, respectively. The remaining charges were included in Corporate and Eliminations. Pursuant to Topic 805, unaudited supplemental pro forma results of operations for the quarter and nine months ended September 29, 2019, as if the acquisition of eOne had occurred on December 31, 2018, the first day of the Company’s 2019 fiscal year are presented below (in thousands, except per share amounts): Quarter Ended Nine Months Ended September 29, 2019 September 29, 2019 Revenues $ 1,858,483 $ 4,272,833 Net earnings 218,858 255,357 Net earnings attributable to Hasbro, Inc. 216,536 250,443 Net earnings per common share: Diluted $ 1.57 $ 1.82 Basic $ 1.57 $ 1.82 The Company acquired eOne on the first day of fiscal year 2020, as such our actual results reflect the acquisition occurring on the first day of the current period. These pro forma results do not represent financial results that would have been realized had the acquisition occurred on December 31, 2018, nor are they intended to be a projection of future results. The unaudited pro forma results include certain pro forma adjustments to net earnings (loss) that were directly attributable to the acquisition, as if the acquisition had occurred on December 31, 2018, including the following: • transaction costs of $3,244 for the quarter and nine months ended September 29, 2019 incurred by eOne related to the eOne Acquisition, included in Selling, Distribution and Administration; • additional amortization expense of $9,726 and $30,778 for the quarter and nine months ended September 29, 2019, respectively, that would have been recognized as a result of the allocation of purchase consideration to definite-lived intangible assets subject to amortization; • estimated differences in interest expense of $19,105 and $57,316 for the quarter and nine months ended September 29, 2019, respectively, as a result of incurring new debt and extinguishing historical eOne debt; • total reduction in Other Expense of $25,533 and $45,345 for the quarter and nine months ended September 29, 2019, respectively, consisting of: ◦ $25,533 for the quarter and nine months ended September 29, 2019 related to the mark to market of foreign exchange forward and option contracts, which the Company entered into in order to hedge a portion of the British pound sterling purchase price for the eOne Acquisition; and ◦ $19,812 for the nine months ended September 29, 2019 related to premiums paid by eOne in connection with the 2019 early redemption and refinancing of its senior secured notes and the related write-off of unamortized deferred finance charges associated with the senior secured notes; • the income tax effect of the pro forma adjustments resulted in income tax benefits of $683 and $8,707 for the quarter and nine months ended September 29, 2019, respectively, calculated using a blended statutory income tax rate of 22.5% for the eOne amortization and elimination of historical interest adjustments, and a blended statutory tax rate of 21% for the interest on the new debt. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 27, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Net earnings per share data for the quarters and nine months ended September 27, 2020 and September 29, 2019 were computed as follows: 2020 2019 Quarter Basic Diluted Basic Diluted Net earnings attributable to Hasbro, Inc. $ 220,898 220,898 $ 212,949 212,949 Average shares outstanding 137,258 137,258 126,453 126,453 Effect of dilutive securities: Options and other share-based awards — 232 — 751 Equivalent Shares 137,258 137,490 126,453 127,204 Net earnings attributable to Hasbro, Inc. per common share $ 1.61 1.61 $ 1.68 1.67 2020 2019 Nine Months Basic Diluted Basic Diluted Net earnings attributable to Hasbro, Inc. $ 117,346 117,346 $ 253,109 253,109 Average shares outstanding 137,214 137,214 126,356 126,356 Effect of dilutive securities: Options and other share-based awards — 251 — 600 Equivalent Shares 137,214 137,465 126,356 126,956 Net earnings attributable to Hasbro, Inc. per common share $ 0.86 0.85 $ 2.00 1.99 For the quarter and nine months ended September 27, 2020, options and restricted stock units totaling 2,852 and 3,046, respectively, were excluded from the calculation of diluted earnings per share because to include them would have been anti-dilutive. For the quarter ended September 29, 2019, no options or restricted stock units were anti-dilutive. For the nine months ended September 29, 2019, options and restricted stock units totaling 1,088 were excluded from the calculation of diluted earnings per share because to include them would have been anti-dilutive. |
Other Comprehensive Earnings (L
Other Comprehensive Earnings (Loss) | 9 Months Ended |
Sep. 27, 2020 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | |
Other Comprehensive Earnings (Loss) | Other Comprehensive Earnings (Loss) Components of other comprehensive earnings (loss) are presented within the consolidated statements of comprehensive earnings (loss). The following table presents the related tax effects on changes in other comprehensive earnings (loss) for the quarters and nine months ended September 27, 2020 and September 29, 2019. Quarter Ended Nine Months Ended September 27, September 29, September 27, September 29, Other comprehensive earnings (loss), tax effect: Tax benefit (expense) on unrealized holding gains (losses) $ 235 46 $ (381) (116) Tax benefit (expense) on cash flow hedging activities 285 (570) (5,474) (524) Tax benefit on foreign currency translation adjustments — — 8,406 — Tax expense on changes in unrecognized pension amounts — — — (5,687) Reclassifications to earnings, tax effect: Tax expense on cash flow hedging activities 1,928 703 3,379 1,237 Amortization of unrecognized pension and postretirement amounts (80) (80) (239) (1,619) Tax benefit on settlement of U.S defined benefit plan — — — (24,925) Total tax effect on other comprehensive earnings (loss) $ 2,368 99 $ 5,691 (31,634) Changes in the components of accumulated other comprehensive earnings (loss) for the nine months ended September 27, 2020 and September 29, 2019 are as follows: Pension and Gains Unrealized Foreign Total 2020 Balance at December 29, 2019 $ (36,129) (5,232) (230) (142,629) (184,220) Current period other comprehensive earnings (loss) 824 (105) 1,315 (98,144) (96,110) Balance at September 27, 2020 $ (35,305) (5,337) 1,085 (240,773) (280,330) 2019 Balance at December 30, 2018 $ (143,134) 1,549 (744) (152,185) (294,514) Current period other comprehensive earnings (loss) 111,019 3,839 400 (6,120) 109,138 Balance at September 29, 2019 $ (32,115) 5,388 (344) (158,305) (185,376) Gains (Losses) on Derivative Instruments At September 27, 2020, the Company had remaining net deferred gains on foreign currency forward contracts, net of tax, of $11,534 in accumulated other comprehensive loss ("AOCE"). These instruments hedge payments related to inventory purchased in the third quarter of 2020 or forecasted to be purchased during the remainder of 2020 through 2022, intercompany expenses expected to be paid or received during 2020, television and movie production costs paid in 2020, and cash receipts for sales made at the end of the third quarter of 2020 or forecasted to be made in the remainder of 2020 and, to a lesser extent, 2021 through 2022. 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 long-term notes due in 2021 and 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 27, 2020, deferred losses, net of tax of $16,871 related to these instruments remained in AOCE. For the quarters ended September 27, 2020 and September 29, 2019, previously deferred losses of $450, were reclassified from AOCE to net earnings. For the nine-month periods ended September 27, 2020 and September 29, 2019, previously deferred losses of $1,349 were reclassified from AOCE to net earnings. Of the amount included in AOCE at September 27, 2020, the Company expects net gains of approximately $8,143 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. |
Accrued Liabilities
Accrued Liabilities | 9 Months Ended |
Sep. 27, 2020 | |
Payables and Accruals [Abstract] | |
Accrued Liabilities | Accrued Liabilities Components of accrued liabilities for the periods ended September 27, 2020, September 29, 2019 and December 29, 2019 were as follows: September 27, 2020 September 29, 2019 December 29, 2019 Royalties $ 206,645 $ 178,100 $ 196,558 Advertising 131,481 130,434 59,440 Payroll and management services 89,197 72,032 85,635 Dividends 93,180 85,852 93,067 Severance 41,707 55,066 35,039 Participations and Residuals 309,156 9,742 10,432 Other Taxes 70,553 52,457 66,715 Lease liability -Current 42,814 29,489 30,673 Accrued income taxes 18,364 26,366 14,276 Deferred revenue 147,554 49,381 48,465 Other 319,425 268,777 272,352 Total accrued liabilities $ 1,470,076 $ 957,696 $ 912,652 |
Financial Instruments
Financial Instruments | 9 Months Ended |
Sep. 27, 2020 | |
Debt Disclosure [Abstract] | |
Financial Instruments | Financial Instruments The Company's financial instruments include cash and cash equivalents, accounts receivable, short-term borrowings, accounts payable and certain accrued liabilities. At September 27, 2020, September 29, 2019 and December 29, 2019, the carrying cost of these instruments approximated their fair value. The Company's financial instruments at September 27, 2020, September 29, 2019 and December 29, 2019 also include certain assets and liabilities measured at fair value (see Notes 10 and 11) as well as long-term borrowings. The carrying costs, which are equal to the outstanding principal amounts, and fair values of the Company's long-term borrowings as of September 27, 2020, September 29, 2019 and December 29, 2019 are as follows: September 27, 2020 September 29, 2019 December 29, 2019 Carrying Fair Carrying Fair Carrying Fair 3.90% Notes Due 2029 $ 900,000 947,520 $ — — $ 900,000 893,430 3.55% Notes Due 2026 675,000 716,108 — — 675,000 680,670 3.00% Notes Due 2024 500,000 531,850 — — 500,000 502,150 6.35% Notes Due 2040 500,000 587,400 500,000 587,850 500,000 581,600 3.50% Notes Due 2027 500,000 518,750 500,000 511,200 500,000 500,550 2.60% Notes Due 2022 300,000 310,680 — — 300,000 300,960 5.10% Notes Due 2044 300,000 313,350 300,000 310,080 300,000 301,980 3.15% Notes Due 2021 300,000 303,540 300,000 303,300 300,000 303,900 6.60% Debentures Due 2028 109,895 130,324 109,895 133,555 109,895 130,610 Variable % Notes Due December 30, 2022 400,000 400,000 — — — — Variable % Notes Due December 30, 2024 577,500 577,500 — — — — Production Financing Facilities 121,444 121,444 — — — — Total long-term debt 5,183,839 5,458,466 1,709,895 1,845,985 4,084,895 4,195,850 Less: Deferred debt expenses 36,763 — 13,691 — 38,438 — Less: Current portion 369,269 — — — — — Long-term debt $ 4,777,807 5,458,466 $ 1,696,204 1,845,985 $ 4,046,457 4,195,850 In November 2019, in conjunction with the Company's acquisition of eOne, the Company issued an aggregate of $2,375,000 of senior unsecured debt securities (the "Notes") consisting of the following tranches: $300,000 of notes due 2022 (the "2022 Notes") that bear interest at a fixed rate of 2.60%, $500,000 of notes due 2024 (the "2024 Notes") that bear interest at a fixed rate of 3.00%, $675,000 of notes due 2026 (the "2026 Notes") that bear interest at a fixed rate of 3.55% and $900,000 of notes due 2029 (the "2029 Notes") that bear interest at a fixed rate of 3.90%. Net proceeds from the issuance of the Notes, after deduction of $20,043 of underwriting discount and fees, totaled $2,354,957. These costs are being amortized over the life of the Notes, which range from three In September 2019, the Company entered into a $1.0 billion Term Loan Agreement (the "Term Loan Agreement”) with Bank of America N.A. (“Bank of America”), as administrative agent, and certain financial institutions as lenders, pursuant to which such lenders committed to provide, contingent upon the completion of the eOne Acquisition and certain other customary conditions to funding, (1) a three-year senior unsecured term loan facility in an aggregate principal amount of $400,000 (the “Three-Year Tranche”) and (2) a five-year senior unsecured term loan facility in an aggregate principal amount of $600,000 (the “Five-Year Tranche” and together with the Three-Year Tranche, the “Term Loan Facilities”). Loans under the Term Loan Facilities bear interest at the Company’s option, at either the Eurocurrency Rate or the Base Rate, in each case plus a per annum applicable rate that fluctuates (1) in the case of the Three-Year Tranche, between 87.5 basis points and 175.0 basis points, in the case of loans priced at the Eurocurrency Rate, and between 0.0 basis points and 75.0 basis points, in the case of loans priced at the Base Rate, and (2) in the case of the Five-Year Tranche, between 100.0 basis points and 187.5 basis points, in the case of loans priced at the Eurocurrency Rate, and between 0.0 basis points and 87.5 basis points, in the case of loans priced at the Base Rate, in each case, based upon the non-credit enhanced, senior unsecured long-term debt ratings of the Company by Fitch Ratings Inc., Moody’s Investor Service, Inc. and S&P Global Rankings, subject to certain provisions taking into account potential differences in ratings issued to the relevant rating agencies or a lack of ratings issued by such rating agencies. Loans under the Five-Year Tranche require principal amortization payments that are payable in equal quarterly installments of 5.0% per annum of the original principal amount thereof for each of the first two years after funding, increasing to 10.0% per annum of the original principal amount thereof for each subsequent year. The Term Loan Agreement contains affirmative and negative covenants typical of this type of facility, including: (i) restrictions on the Company’s and its domestic subsidiaries’ ability to allow liens on their assets, (ii) restrictions on the incurrence of indebtedness, (iii) restrictions on the Company’s and certain of its subsidiaries’ ability to engage in certain mergers, (iv) 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 (v) the requirement that the Company maintain a Consolidated Total Leverage Ratio of no more than, depending on the gross proceeds of equity securities issued after the effective date of the acquisition of eOne, 5.65:1.00 or 5.40:1.00 for each of the first, second and third fiscal quarters ended after the funding of the Term Loan Facilities, with periodic step downs to 3.50:1.00 for the fiscal quarter ending December 31, 2023 and thereafter. The notes were drawn down on December 30, 2019, the closing date of the eOne Acquisition. During the first nine months of 2020, the Company made its required quarterly principal amortization payments totaling $22,500 on the Five-Year Tranche loans. As of September 27, 2020, the Company was in compliance with the financial covenants contained in the Term Loan Agreement. Current portion long-term debt at September 27, 2020 o f $369,269 , as shown on the consolidated balance sheet, represents the $300,000 of 3.15% Notes that mature during the second quarter of 2021, as well as the current portion of required quarterly principal amortization payments for the Term Loan Facilities and other production financing facilities. All of the Company’s other long-term borrowings have contractual maturities that occur subsequent to 2021 with the exception of certain of the Company’s production financing facilities. The fair values of the Company's long-term debt are considered Level 3 fair values (see Note 10 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. This assumption is considered an unobservable input in that it reflects 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. Production Financing In addition to the Company's financial instruments, the Company uses production financing to fund certain of its television and film productions which are arranged on an individual production basis by special purpose production subsidiaries. Production financing facilities are secured by the assets and future revenue of the individual production subsidiaries and are non-recourse to the Company's assets. 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. Quarter Ended September 27, 2020 Production financing held by production subsidiaries $ 121,444 Other loans 8,998 Total $ 130,442 Production financing shown in the consolidated balance sheet as: Non-current $ 82,175 Current 39,269 Total $ 121,444 Other loans of $8,998, consist of production related demand loans, and are recorded within Short-term Borrowings in the Company's consolidated balance sheets. Interest is charged at bank prime rate plus a margin based on the risk of the respective production. The weighted average interest rate on all production financing as of September 27, 2020 was 5.1%. The Company has Canadian dollar and U.S. dollar production credit facilities with various banks. The carrying amounts are denominated in the following currencies: Canadian Dollars U.S. Dollars Total As of September 27, 2020 $ 57,317 73,125 130,442 The following table represents the movements in production financing and other related loans acquired as a result of the eOne Acquisition during the first nine months of 2020: Production Financing Other Loans Total December 30, 2019 $ 209,651 9,102 218,753 Drawdowns 38,871 22,853 61,724 Repayments (124,824) (22,668) (147,492) Foreign exchange differences (2,254) (289) (2,543) Balance at September 27, 2020 $ 121,444 8,998 130,442 |
eOne Investments in Productions
eOne Investments in Productions and Investments in Acquired Content Rights | 9 Months Ended |
Sep. 27, 2020 | |
Other Industries [Abstract] | |
eOne Investment in Productions and Investments in Acquired Content Rights | eOne Investments in Productions and Investments in Acquired Content Rights In connection with the Company's acquisition of eOne, the Company acquired eOne's library of television and film and music content rights, which amounted to $619,545 as of September 27, 2020 and was recorded in other assets within the Company's consolidated balance sheets. Investments in productions and investments in acquired content rights are predominantly monetized on a title-by-title basis and are recorded in the consolidated balance sheets to the extent they are considered recoverable against future revenues. 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 to be reviewed periodically on an individual film basis and any portion of the unamortized amount that appears not to be recoverable from future net revenues will be expensed as part of program cost amortization during the period the loss becomes evident. Costs associated with the Company's investments in eOne productions and investments in acquired content rights consisted of the following at September 27, 2020: September 27, 2020 Film and TV Programming Released, less amortization $ 477,329 Completed and not released 18,070 In production 51,001 Pre-production 41,144 587,544 Other Programming Released, less amortization 11,511 Completed and not released 3,421 In production 9,057 Pre-production 8,012 32,001 Total program costs $ 619,545 The Company recorded $244,194 of program cost amortization related to the above programming in the nine months ended September 27, 2020, consisting of the following: Investment in Production Investment in Content Total Program cost amortization $ 172,630 71,564 244,194 |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 27, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company and its subsidiaries file income tax returns in the United States and various state and international jurisdictions. In the normal course of business, the Company is regularly audited by U.S. federal, state and local, and international tax authorities in various tax jurisdictions. Our effective tax rate ("ETR") from continuing operations was 35.0% for the nine months ended September 27, 2020 and 14.3% for the nine months ended September 29, 2019. The following items caused the year to date ETR to be significantly different from the prior year ETR: • during the nine months ended September 27, 2020, the Company recorded a discrete net tax benefit of $5,290 consisting of the following: ◦ a tax benefit of $25,302 resulting from the eOne Acquisition and related costs incurred; ◦ tax expense of $13,680 related to revaluation of tax attributes as a result of the United Kingdom’s ("UK") enactment during the quarter of the Finance Act of 2020 which maintains the corporate income tax rate at 19%; and ◦ tax expense of $6,332 primarily related to an increase of uncertain tax positions based on changes in management judgment. • our estimated annual ETR increased to 19.9% from 18.2% as a result of the eOne Acquisition during the first nine months of 2020, and a change in the mix of forecasted income by jurisdiction. • during the nine months ended September 29, 2019, the Company recorded a discrete net tax benefit of $31,674, of which $24,925 was associated with the settlement of the U.S. defined benefit pension plan liability and $6,749 primarily related to excess tax benefits on share-based payments and expiration of statutes of limitation of uncertain tax positions. In May 2019, a public referendum held in Switzerland approved Swiss Federal Act on Tax Reform and AHV Financing ("TRAF") proposals previously approved by Swiss Parliament. The Swiss tax reform measures were effective on January 1, 2020. Changes in tax reform include the abolishment of preferential tax regimes for holding companies, domicile companies and mixed companies at the cantonal level. The enacted changes in Swiss federal tax were not material to the Company's consolidated financial statements. Swiss cantonal tax was enacted in December 2019. The Company is still assessing the transitional provision options it may elect; however, the legislation is not expected to have a material effect on the Company’s consolidated financial statements. The Company is no longer subject to U.S. federal income tax examinations for years before 2016. With few exceptions, the Company is no longer subject to U.S. state or local and non-U.S. income tax examinations by tax authorities in its major jurisdictions for years before 2014. The Company is currently under income tax examination in several U.S. state and local and non-U.S. jurisdictions. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 9 Months Ended |
Sep. 27, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The Company measures certain financial instruments at fair value. The fair value hierarchy consists of three levels: Level 1 fair values are based on quoted market prices in active markets for identical assets or liabilities that the entity has the ability to access; 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; and 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. Accounting standards permit entities to measure many financial instruments and certain other items at fair value and establish presentation and disclosure requirements designed to facilitate comparisons between entities that choose different measurement attributes for similar assets and liabilities. The Company has elected the fair value option for certain available-for-sale investments. At September 27, 2020, September 29, 2019 and December 29, 2019, these investments totaled $13,384, $24,916 and $25,518, respectively, and are included in prepaid expenses and other current assets in the consolidated balance sheets. In the second quarter of 2020, the Company liquidated $11,470 of these investments, which are included in Other Investing Activities in the consolidated statement of cash flows. The Company recorded net gains (losses) of 1,067 and $(144) on these investments in other (income) expense, net for the quarter and nine months ended September 27, 2020, respectively, related to the change in fair value of such instruments. For the quarter and nine month periods ended September 29, 2019, the Company recorded net gains of $566 and 1,293, respectively, in other (income) expense related to the change in fair value of such instruments. At September 27, 2020, September 29, 2019 and December 29, 2019, 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: Fair Quoted Significant Significant September 27, 2020 Assets: Available-for-sale securities $ 3,682 3,682 — — Derivatives 15,736 — 15,736 — Total assets $ 19,418 3,682 15,736 — Liabilities: Derivatives $ 372 — 372 — Option agreement 20,615 — — 20,615 Total liabilities $ 20,987 — 372 20,615 September 29, 2019 Assets: Available-for-sale securities $ 1,148 1,148 — — Derivatives 54,030 — 54,030 — Total assets $ 55,178 1,148 54,030 — Liabilities: Derivatives $ 11,508 — 11,508 — Option agreement 22,196 — — 22,196 Total liabilities $ 33,704 — 11,508 22,196 December 29, 2019 Assets: Available-for-sale securities $ 1,296 1,296 — — Derivatives 48,973 — 48,973 — Total assets $ 50,269 1,296 48,973 — Liabilities: Derivatives $ 5,733 — 5,733 — Option agreement 22,145 — — 22,145 Total Liabilities $ 27,878 — 5,733 22,145 Available-for-sale securities include equity securities of one company quoted on an active public market. The Company's derivatives consist of foreign currency forward and option contracts and zero-cost collar options. The Company used 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 ("Discovery"). The option agreement is included in other liabilities at September 27, 2020, September 29, 2019 and December 29, 2019, 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 the 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. There were no changes in these valuation techniques during the nine-month period ended September 27, 2020. 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): 2020 2019 Balance at beginning of year $ (22,145) (23,440) Gain from change in fair value 1,530 1,244 Balance at end of third quarter $ (20,615) (22,196) In addition to the above, the Company has three investments for which the fair value is measured using net asset value per share. At September 27, 2020, September 29, 2019 and December 29, 2019, these investments had fair values of $13,384, $24,916 and $25,518, respectively. Two of the investments have net asset values that are predominantly based on underlying investments which are traded on an active market and are redeemable within 45 days. The third investment invests in hedge funds which are generally redeemable on a quarterly basis with 30 days – 90 days’ notice. |
Derivative Financial Instrument
Derivative Financial Instruments | 9 Months Ended |
Sep. 27, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments Hasbro uses foreign currency forward contracts and zero-cost collar options to mitigate the impact of currency rate fluctuations on firmly committed and projected future foreign currency transactions. These over-the-counter contracts, which hedge future currency requirements related to purchases of inventory, product sales, television and film production cost and production financing loans (see Note 7) 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. 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. Cash Flow Hedges The Company uses foreign currency forward contracts and zero-cost collar options to reduce the impact of currency rate fluctuations on firmly committed and projected future foreign currency transactions. All of the Company's designated foreign currency forward contracts and zero-cost collar options are considered to be cash flow hedges. These instruments hedge a portion of the Company's currency requirements associated with anticipated inventory purchases, product sales, certain production financing loans and other cross-border transactions in 2020 through 2022. At September 27, 2020, September 29, 2019 and December 29, 2019, the notional amounts and fair values of the Company's foreign currency forward contracts designated as cash flow hedging instruments were as follows: September 27, 2020 September 29, 2019 December 29, 2019 Hedged transaction Notional Fair Notional Fair Notional Fair Inventory purchases $ 315,924 9,148 $ 420,839 24,462 $ 398,800 8,727 Sales 111,760 3,940 212,062 7,231 124,920 4,037 Production financing and other 115,228 2,199 16,935 (137) 19,499 140 Total $ 542,912 15,287 $ 649,836 31,556 $ 543,219 12,904 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 27, 2020, September 29, 2019 and December 29, 2019 as follows: September 27, September 29, December 29, Prepaid expenses and other current assets Unrealized gains $ 13,357 22,529 12,133 Unrealized losses (1,737) (1,333) (3,955) Net unrealized gains $ 11,620 21,196 8,178 Other assets Unrealized gains $ 4,218 10,609 6,652 Unrealized losses (179) (249) — Net unrealized gains $ 4,039 10,360 6,652 Accrued liabilities Unrealized gains $ 680 — 293 Unrealized losses (992) — (2,219) Net unrealized losses $ (312) — (1,926) Other liabilities Unrealized gains $ 13 — — Unrealized losses (73) — — Net unrealized losses $ (60) — — Net gains (losses) on cash flow hedging activities have been reclassified from other comprehensive earnings (loss) to net earnings for the quarters and nine months ended September 27, 2020 and September 29, 2019 as follows: Quarter Ended Nine Months Ended September 27, September 29, September 27, September 29, Statements of Operations Classification Cost of sales $ 7,116 4,678 $ 16,680 9,278 Net revenues 1,237 1,889 2,413 3,366 Other 859 (23) 1,410 129 Net realized gains $ 9,212 6,544 $ 20,503 12,773 Undesignated Hedges The Company also enters into foreign currency forward contracts to minimize the impact of changes in the fair value of intercompany loans due to foreign currency changes. 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. Additionally, with the acquisition of eOne during the first quarter of 2020, the Company continued eOne's balance sheet hedging program designed to manage transactional exposure to fair value movements on certain of eOne's foreign currency denominated monetary assets and liabilities. The Company does not use hedge accounting for these contracts as changes in the fair values of these contracts are offset by changes in the fair value of the balance sheet item. As of September 27, 2020, September 29, 2019 and December 29, 2019 the total notional amounts of the Company's undesignated derivative instruments were $538,892, $308,867 and $307,351, respectively. At September 27, 2020, September 29, 2019 and December 29, 2019, the fair values of the Company's undesignated derivative financial instruments were recorded in the consolidated balance sheets as follows: September 27, September 29, December 29, Prepaid expenses and other current assets Unrealized gains $ 3,294 2,630 — Unrealized losses (3,217) (301) — Net unrealized gains $ 77 2,329 — Accrued liabilities Unrealized gains $ — 164 13 Unrealized losses — (203) (3,820) Net unrealized losses $ — (39) (3,807) Total unrealized gains (losses), net $ 77 2,290 (3,807) The Company recorded net losses of $(6,914) and $(20,142) on these instruments to other (income) expense, net for the quarter and nine months ended September 27, 2020, respectively, and net gains of $10,121 and $16,705 on these instruments to other (income) expense, net for the quarter and nine months ended September 29, 2019, respectively, relating to the change in fair value of such derivatives, substantially offsetting gains and losses from the change in fair value of intercompany loans to which the contracts relate. eOne Purchase Price Hedge During the third quarter of 2019 the Company hedged a portion of its exposure to fluctuations in the British pound sterling in relation to the eOne Acquisition using a series of both foreign exchange forward and option contracts. These contracts did not qualify for hedge accounting and, as such, were marked to market through the Company's Consolidated Statement of Operations. For tax purposes these contracts qualified as nontaxable integrated tax hedges. These contracts matured on December 30, 2019 (the closing date of the transaction) and net gains or losses recognized on these contracts in the Company's 2020 results were immaterial. For additional information related to the Company's derivative financial instruments see Notes 5 and 10. |
Leases
Leases | 9 Months Ended |
Sep. 27, 2020 | |
Leases [Abstract] | |
Leases | Leases The Company occupies offices and uses certain equipment under various operating lease arrangements. The Company has no finance leases. These leases have remaining lease terms of 1 to 18 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. The lease liability for such lease agreements as of the adoption date, was based on fixed payments as of the adoption date. Any adjustments to these payments based on the related indices will be recorded to expense as incurred. 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. For the quarter and nine months ended September 27, 2020, the Company's operating lease and other rental expenses were $22,281 and $67,564, respectively. For the quarter and nine months ended September 29, 2019, operating lease and other rental expenses were $8,907 and $26,982, respectively. Expense related to short-term leases (expected terms less than 12 months) and variable lease payments was not material in the quarter or nine months ended September 27, 2020 or September 29, 2019. Information related to the Company’s leases for the quarter and nine months ended September 27, 2020 and September 29, 2019 are as follows: Quarter Ended Nine Months Ended September 27, September 29, September 27, September 29, Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 13,158 9,003 $ 38,774 27,817 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 2,097 1,363 $ 102,521 25,622 Weighted Average Remaining Lease Term Operating leases 6.2 years 6.4 years 6.2 years 6.4 years Weighted Average Discount Rate Operating leases 3.1 % 4.5 % 3.1 % 4.5 % 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 September 27, 2020: September 27, 2020 (excluding the nine months ended September 27, 2020) $ 12,576 2021 47,794 2022 43,660 2023 35,763 2024 24,513 2025 and thereafter 66,276 Total future lease payments 230,582 Less imputed interest 24,976 Present value of future operating lease payments 205,606 Less current portion of operating lease liabilities (1) 42,814 Non-current operating lease liability (2) 162,792 Operating lease right-of-use assets, net (3) $ 189,211 (1) Included in Accrued liabilities on the consolidated balance sheets. (2) Included in Other liabilities on the consolidated balance sheets. (3) Included in Property, plant, and equipment on the consolidated balance sheets. |
Segment Reporting
Segment Reporting | 9 Months Ended |
Sep. 27, 2020 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting Hasbro is a global play and entertainment company with a broad portfolio of brands and entertainment content spanning toys, games, licensed products ranging from traditional to high-tech and digital, and film, television and music entertainment. The Company's segments are (i) U.S. and Canada, (ii) International, (iii) Entertainment, Licensing and Digital, (iv) eOne, and (v) Global Operations. Following the eOne Acquisition on December 30, 2019, the eOne operating segment was added to the Company's existing reporting structure. The U.S. and Canada segment includes the marketing and selling of action figures, arts and crafts and creative play products, electronic toys and related electronic interactive products, fashion and other dolls, infant products, play sets, preschool toys, plush products, sports action blasters and accessories, vehicles and toy-related specialty products, as well as traditional board games, and trading card and role-playing games primarily within the United States and Canada. Within the International segment, the Company markets and sells both toy and game products in markets outside of the U.S. and Canada, primarily in the European, Asia Pacific, and Latin American regions. The Company's Entertainment, Licensing and Digital segment includes the Company's Wizards of the Coast digital gaming business, consumer products licensing, owned and licensed digital gaming, and the Company's legacy television and film entertainment operations. The eOne segment engages in the development, acquisition, production, financing, distribution and sales of entertainment content and is comprised of all legacy eOne operations. These diversified offerings span across film, television and music production and sales, family programming, merchandising and licensing, and digital content. Over time, the Company plans to transition towards reflecting all of its entertainment operations in the eOne segment. The Company also expects to shift the consumer product and digital licensing business and toy and game sales related to the eOne preschool brands to legacy Hasbro segments, including related toy and game operations into the Company's geographic commercial segments in late 2021 and 2022. The Global Operations segment is responsible for sourcing finished products for the Company's U.S. and Canada and International segments. Segment performance is measured at the operating profit level. Included in Corporate and Eliminations 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 adjustments to actual expenses and foreign exchange rates included in Corporate and Eliminations. The significant accounting policies of the segments are the same as those referenced in Note 1. Results shown for the quarter and nine months ended September 27, 2020 are not necessarily representative of those which may be expected for the full year 2020, nor were those of the comparable 2019 periods representative of those actually experienced for the full year 2019. Similarly, such results are not necessarily those which would be achieved were each segment an unaffiliated business enterprise. Information by segment and a reconciliation to reported amounts for the quarters and nine months ended September 27, 2020 and September 29, 2019 are as follows: Quarter Ended September 27, 2020 September 29, 2019 Net revenues External Affiliate External Affiliate U.S. and Canada $ 977,115 5,938 $ 898,269 2,535 International 517,007 133 561,137 — Entertainment, Licensing and Digital 89,027 2,110 115,766 3,849 eOne 193,474 — — — Global Operations (a) — 431,738 1 538,817 Corporate and Eliminations (b) — (439,919) — (545,201) $ 1,776,623 — $ 1,575,173 — Nine Months Ended September 27, 2020 September 29, 2019 Net revenues External Affiliate External Affiliate U.S. and Canada $ 1,765,482 12,990 $ 1,766,649 7,379 International 1,017,222 133 1,221,224 186 Entertainment, Licensing and Digital 262,879 3,918 304,266 7,989 eOne 696,889 — — — Global Operations (a) — 898,808 81 1,088,860 Corporate and Eliminations (b) — (915,849) — (1,104,414) $ 3,742,472 — $ 3,292,220 — Quarter Ended Nine Months Ended Operating profit (loss) September 27, September 29, September 27, September 29, U.S. and Canada $ 262,977 193,686 $ 359,028 313,795 International 63,924 67,238 12,333 51,410 Entertainment, Licensing and Digital 32,791 24,594 65,758 62,550 eOne (25,914) — (64,962) — Global Operations (a) 5,681 11,074 4,385 6,342 Corporate and Eliminations (b) (2,901) 618 (61,092) 27,573 $ 336,558 297,210 $ 315,450 461,670 Total assets September 27, September 29, December 29, U.S. and Canada $ 3,835,054 3,331,125 3,244,950 International 2,234,562 2,394,488 2,482,170 Entertainment, Licensing and Digital 1,162,684 1,031,906 695,898 eOne 5,686,389 — — Global Operations (a) 3,465,018 3,255,286 3,334,190 Corporate and Eliminations (b) (5,680,530) (4,458,181) (901,580) $ 10,703,177 5,554,624 8,855,628 (a) The Global Operations segment derives substantially all of its revenues, and thus its operating results, from intersegment activities. (b) Certain long-term assets, including property, plant and equipment, goodwill and other intangibles, which benefit multiple operating segments, are included in Corporate and Eliminations. Allocations of certain expenses related to these assets to the individual operating segments are done at the beginning of the year based on budgeted amounts. Any differences between actual and budgeted amounts are reflected in Corporate and Eliminations because allocations are translated from the U.S. Dollar to local currency at budgeted rates when recorded. Corporate and Eliminations also includes the elimination of inter-company balance sheet amounts. The following table represents consolidated International segment net revenues by major geographic region for the quarters and nine months ended September 27, 2020 and September 29, 2019: Quarter Ended Nine Months Ended September 27, September 29, September 27, September 29, Europe $ 343,179 319,277 $ 663,100 673,728 Latin America 91,619 151,987 158,028 305,106 Asia Pacific 82,209 89,873 196,094 242,390 Net revenues $ 517,007 561,137 $ 1,017,222 1,221,224 As a result of the Company's acquisition of eOne, beginning in 2020, the Company's brand architecture reflects the addition of the eOne Entertainment portfolio which consists of legacy eOne film and TV revenues. Revenues related to eOne brands, including PEPPA PIG, PJ MASKS and RICKY ZOOM, are reported in the Emerging Brands portfolio. The following table presents consolidated net revenues by brand and entertainment portfolio for the quarters and nine months ended September 27, 2020 and September 29, 2019: Quarter Ended Nine Months Ended September 27, September 29, September 27, September 29, Franchise Brands $ 807,555 779,659 $ 1,580,878 1,749,948 Partner Brands 409,214 427,029 729,772 812,466 Hasbro Gaming (1) 239,222 232,287 516,337 463,272 Emerging Brands (2) 154,965 136,198 325,101 266,534 TV/Film/Entertainment (3) 165,667 — 590,384 — Total $ 1,776,623 1,575,173 $ 3,742,472 3,292,220 (1) Hasbro's total gaming category, which includes all gaming net revenues, both those reported in Hasbro Gaming and those reported elsewhere, most notably MAGIC: THE GATHERING and MONOPOLY, totaled $543,107 and $1,202,604 for the quarter and nine months ended September 27, 2020, respectively. For the quarter and nine months ended September 29, 2019, total gaming revenues were $449,393 and $1,086,151, respectively. (2) Emerging Brands portfolio balances for the quarter and nine-month period ended September 27, 2020 include eOne brands PEPPA PIG, PJ MASKS and RICKY ZOOM. (3) TV/Film/Entertainment represents eOne revenues not allocated to the Emerging Brands portfolio. |
Restructuring Actions
Restructuring Actions | 9 Months Ended |
Sep. 27, 2020 | |
Restructuring Charges [Abstract] | |
Restructuring Actions | Restructuring Actions During 2018, the Company announced a comprehensive restructuring plan which consisted of re-designing its go-to market strategy and re-shaping its organization to become a more responsive, innovative and digitally-driven play and entertainment company. As part of this process the Company took certain actions, which continued through 2019. The actions primarily included headcount reduction aimed at right-sizing the Company’s cost-structure and giving it the ability to add required new talent in the future. In connection with the eOne Acquisition, in the first nine months of 2020, the Company recorded severance and other employee charges related to the integration of eOne. Charges related to the eOne restructuring costs were recorded within acquisition and related charges on the Consolidated Statements of Operations for the quarter and nine months ended June 28, 2020, and reported within Corporate and Eliminations. In the first nine months of 2020, the Company recorded severance charges of $11,554 associated with cost-savings initiatives within the Company's commercial and Film and TV businesses. These charges were included within selling, distribution and administrative costs on the Consolidated Statement of Operations for the nine months ended September 27, 2020, and reported within Corporate and Eliminations. The detail of activity related to the programs for the nine months ended September 27, 2020 is as follows: 2018 Restructuring Program eOne Integration Program Other Total Remaining amounts to be paid as of December 29, 2019 $ 31,113 — — $ 31,113 2020 restructuring charges — 20,832 11,554 32,386 Payments made in the first nine months of 2020 (17,510) (8,223) (1,096) (26,829) Remaining amounts as of September 27, 2020 $ 13,603 12,609 10,458 $ 36,670 |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 9 Months Ended |
Sep. 27, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation | 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 majority-owned subsidiaries ("Hasbro" or the "Company") as of September 27, 2020 and September 29, 2019, and the results of its operations and cash flows and shareholders' equity for the periods then ended in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP"). The preparation of consolidated financial statements in conformity with U.S. GAAP 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. |
Production Financing | Production Financing Production financing relates to financing facilities for certain of the Company's television and film productions. Beginning in the first quarter of 2020 with the acquisition of eOne, the Company funded certain of its television and film productions using production financing facilities. Production financing facilities are secured by the assets and future revenues of the individual production subsidiaries, typically have maturities of less than two years while the titles are in production, and are repaid once the production is delivered and all tax credits, broadcaster pre-sales and international sales have been received. 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. At September 27, 2020, $71,194 of the Company's cash was restricted by such facilities. |
Investment in Productions and Acquired Content Rights | Investment in Productions and Acquired Content Rights The cost of investments in programming ("IIP") and investments in content rights ("IIC") for eOne's television and film libraries are recorded in the consolidated balance sheets at amounts considered recoverable against future revenues. These amounts are amortized to program cost amortization using a model that reflects the consumption of the asset as it is released through different exploitation windows (e.g., broadcast licenses, theatrical release and home entertainment) and the expected revenue earned in each of those stages of release over a period not exceeding 10 years. Amounts capitalized are reviewed regularly and any portion of the unamortized amount that appears not to be recoverable from future net revenues will be written off to program cost amortization during the period in which the loss becomes evident. Certain of these agreements require the Company to pay minimum guaranteed advances ("MGs") for participations and residuals. MGs are recognized in the consolidated balance sheets when a liability arises, usually on delivery of the television or film program to the Company. The current portion of MGs are recorded as Payables and Accrued Liabilities and the long-term portion are recorded as Other Liabilities. |
Recently Adopted Accounting Standards and Recently Issued Accounting Pronouncements | Recently Adopted Accounting Standards In June 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update No. 2016-13 (ASU 2016-13) Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The amendments in this update provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. The standard update replaces the incurred loss impairment methodology with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. For public companies, this standard is effective for annual reporting periods beginning after December 15, 2019, and early adoption was permitted. The Company adopted the standard in the first quarter of 2020 and the adoption of the standard did not have a material impact on its consolidated financial statements. In August 2018, the FASB issued Accounting Standards Update No. 2018-13 (ASU 2018-13), Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement. The amendments in this update modify the disclosure requirements on fair value measurements in Topic 820, Fair Value Measurement, specifically related to disclosures surrounding Level 3 asset balances, fair value measurement methods, related gains and losses and fair value hierarchy transfers. For public companies, this standard is effective for annual reporting periods beginning after December 15, 2019, and early adoption was permitted. The Company adopted the standard in the first quarter of 2020 and the adoption of the standard did not have a material impact on its consolidated financial statements. In March 2019, the FASB issued Accounting Standards Update No. 2019-02 (ASU 2019-02) Entertainment-Films-Other Assets-Film Costs (Subtopic 926-20) and Entertainment-Broadcasters-Intangibles-Goodwill and Other (Subtopic 920-350): Improvements to Accounting for Costs of Films and License Agreements for Program Materials. The amendments in this update align cost capitalization of episodic television series production costs with that of film production cost capitalization. In addition, this update addresses impairment testing procedures with regard to film groups, when a film or license agreement is expected to be monetized with other films and/or license agreements. The intention of this update is to align accounting treatment with changes in production and distribution models within the entertainment industry and to provide increased transparency of information provided to users of financial statements about produced and licensed content. For public companies, this standard is effective for annual reporting periods beginning after December 15, 2019, and early adoption was permitted. The Company adopted the standard in the first quarter of 2020 and the adoption of the standard did not have a material impact on its consolidated financial statements. Recently Issued Accounting Pronouncements In August 2018, the FASB issued Accounting Standards Update No. 2018-14 (ASU 2018-14) Compensation - Retirement Benefits - Defined Benefit Plans - General (Subtopic 715-20): Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans. The amendments in this update modify the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. For public companies, this standard is effective for annual reporting periods beginning after December 15, 2020, and early adoption is permitted. The standard relates to financial statement disclosure only and will not have an impact on the Company's consolidated statement of financial position, statements of operations and comprehensive earnings (loss) or statement of cash flows. In March 2020, the FASB issued Accounting Standards Update No. 2020-04 (ASU 2020-04) Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. |
Revenue Recognition | Revenue Recognition Revenue is recognized when control of the promised goods or content is transferred to the customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for transferring those goods or content. 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. Contract Assets and Liabilities Within our Entertainment, Licensing and Digital segment and our eOne segment the Company may receive royalty payments from licensees in advance of the licensees’ subsequent sales to their customers, or in advance of the Company’s performance obligation being satisfied. In addition, the Company may receive payments from its digital gaming business in advance of the recognition of the revenues. The Company defers revenues on these advanced payments until its performance obligation is satisfied and records the aggregate deferred revenues as contract liabilities. The current portion of contract liabilities were recorded within Accrued Liabilities and the long-term portion were recorded as Other Non-current Liabilities in the Company’s consolidated balance sheets. The Company records contract assets in the case of minimum guarantees that are being recognized ratably over the term of the respective license periods which varies based on sales over and above the contracts’ minimum guarantee. The current portion of contract assets were recorded in Prepaid Expenses and Other Current Assets, respectively, and the long-term portion were recorded as Other Long-Term Assets. |
Leases | The Company occupies offices and uses certain equipment under various operating lease arrangements. The Company has no finance leases. These leases have remaining lease terms of 1 to 18 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. The lease liability for such lease agreements as of the adoption date, was based on fixed payments as of the adoption date. Any adjustments to these payments based on the related indices will be recorded to expense as incurred. 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. |
Basis of Presentation (Tables)
Basis of Presentation (Tables) | 9 Months Ended |
Sep. 27, 2020 | |
Accounting Policies [Abstract] | |
Schedule of Redeemable Noncontrolling Interest | A breakout of the redeemable noncontrolling interests and non-redeemable noncontrolling interests acquired is listed below. Name Country of Incorporation Ownership Interest Proportion Held Principal Activity Astley Baker Davies Limited England and Wales Nonredeemable 70 % Ownership of intellectual property Whizz Kid Entertainment Limited (1) England and Wales Redeemable 100 % Production of television programs MR Productions Holdings, LLC United States Redeemable 75 % Film development Renegade Entertainment, LLC United States Redeemable 65 % Production of television programs Round Room Live, LLC United States Nonredeemable 60 % Production of live events (1) During the third quarter of 2020, Entertainment One U.K. Holdings Ltd., a subsidiary of the Company, acquired the remaining 30% of Whizz Kid Entertainment Limited, making it a wholly owned affiliate of the Company. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 9 Months Ended |
Sep. 27, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Contract Assets and Liabilities | At September 27, 2020 and September 29, 2019, the Company had the following contract assets and liabilities in its consolidated balance sheets: September 27, 2020 September 29, 2019 Assets Contract assets - current $ 271,786 32,199 Contract assets - long term 84,892 12,802 Total $ 356,678 45,001 Liabilities Contract liabilities - current $ 147,554 48,465 Contract liabilities - long term 17,872 8,423 Total $ 165,426 56,888 |
Business Combination (Tables)
Business Combination (Tables) | 9 Months Ended |
Sep. 27, 2020 | |
Business Combinations [Abstract] | |
Schedule of Total Consideration Transferred | The total consideration transferred, in thousands of dollars except per share data, was as follows: Acquisition Consideration eOne common shares outstanding as of December 30, 2019 498,040 Cash consideration per share $ 7.35 Total consideration for shares outstanding 3,658,345 Cash consideration for employee share based payment awards outstanding 145,566 Cash consideration for extinguishment of debt 831,130 Total cash consideration 4,635,041 Less: Employee awards to be recorded as future stock compensation expense 47,399 Total consideration transferred $ 4,587,642 |
Summary of Preliminary Allocation of Purchase Price | The following table summarizes our preliminary allocation of the December 30, 2019 eOne purchase price (in thousands of dollars), as adjusted during the first nine months of 2020: Initial Estimated Fair Value Measurement Period Adjustments Updated Estimated Fair Value Cash, cash equivalents and restricted cash $ 183,713 $ — $ 183,713 Accounts receivable, net 259,061 36,093 295,154 Inventories 7,029 — 7,029 Other current assets 286,270 (570) 285,700 Property, plant and equipment (including right of use assets) 90,339 35,333 125,672 Intangible assets 1,055,249 751 1,056,000 Content assets - IIC and IIP 751,524 (140,234) 611,290 Other assets 183,209 (93,490) 89,719 Short-term borrowings (11,011) — (11,011) Current portion of long-term debt (60,533) (55,267) (115,800) Accounts payable, and accrued liabilities (761,086) 58,344 (702,742) Long-term debt (149,118) 55,267 (93,851) Other liabilities (262,644) 34,878 (227,766) Noncontrolling interests (63,541) (1,261) (64,802) Estimated fair value of net assets acquired 1,508,461 (70,156) 1,438,305 Goodwill 3,079,181 70,156 3,149,337 Total purchase price $ 4,587,642 $ — $ 4,587,642 |
Changes in Carrying Amount of Goodwill | Changes in the carrying amount of goodwill, by operating segment, for the quarter and nine months ended September 27, 2020 is as follows: Nine Months Ended September 27, 2020 (in thousands of dollars) U.S and Canada International Entertainment, Licensing and Digital eOne Total Balance at December 29, 2019 $ 291,577 170,218 32,789 — $ 494,584 Acquired during the period — — — 3,079,181 3,079,181 Measurement period adjustments — — — 70,156 70,156 Foreign exchange translation — 188 9 — 197 Balance at September 27, 2020 $ 291,577 170,406 32,798 3,149,337 $ 3,644,118 |
Unaudited Supplemental Pro Forma Results of Operations | The following table summarizes net revenues and loss before income taxes of eOne included in the Company's Consolidated Statement of Operations since the date of acquisition for the quarter and nine months ended September 27, 2020 (in thousands of dollars). Quarter Ended Nine Months Ended September 27, 2020 September 27, 2020 eOne: Net revenues $ 193,474 $ 696,889 Loss before income taxes (30,793) (75,441) Pursuant to Topic 805, unaudited supplemental pro forma results of operations for the quarter and nine months ended September 29, 2019, as if the acquisition of eOne had occurred on December 31, 2018, the first day of the Company’s 2019 fiscal year are presented below (in thousands, except per share amounts): Quarter Ended Nine Months Ended September 29, 2019 September 29, 2019 Revenues $ 1,858,483 $ 4,272,833 Net earnings 218,858 255,357 Net earnings attributable to Hasbro, Inc. 216,536 250,443 Net earnings per common share: Diluted $ 1.57 $ 1.82 Basic $ 1.57 $ 1.82 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 27, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share | Net earnings per share data for the quarters and nine months ended September 27, 2020 and September 29, 2019 were computed as follows: 2020 2019 Quarter Basic Diluted Basic Diluted Net earnings attributable to Hasbro, Inc. $ 220,898 220,898 $ 212,949 212,949 Average shares outstanding 137,258 137,258 126,453 126,453 Effect of dilutive securities: Options and other share-based awards — 232 — 751 Equivalent Shares 137,258 137,490 126,453 127,204 Net earnings attributable to Hasbro, Inc. per common share $ 1.61 1.61 $ 1.68 1.67 2020 2019 Nine Months Basic Diluted Basic Diluted Net earnings attributable to Hasbro, Inc. $ 117,346 117,346 $ 253,109 253,109 Average shares outstanding 137,214 137,214 126,356 126,356 Effect of dilutive securities: Options and other share-based awards — 251 — 600 Equivalent Shares 137,214 137,465 126,356 126,956 Net earnings attributable to Hasbro, Inc. per common share $ 0.86 0.85 $ 2.00 1.99 |
Other Comprehensive Earnings _2
Other Comprehensive Earnings (Loss) (Tables) | 9 Months Ended |
Sep. 27, 2020 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | |
Schedule of Other Comprehensive Income (Loss), Tax Effect | The following table presents the related tax effects on changes in other comprehensive earnings (loss) for the quarters and nine months ended September 27, 2020 and September 29, 2019. Quarter Ended Nine Months Ended September 27, September 29, September 27, September 29, Other comprehensive earnings (loss), tax effect: Tax benefit (expense) on unrealized holding gains (losses) $ 235 46 $ (381) (116) Tax benefit (expense) on cash flow hedging activities 285 (570) (5,474) (524) Tax benefit on foreign currency translation adjustments — — 8,406 — Tax expense on changes in unrecognized pension amounts — — — (5,687) Reclassifications to earnings, tax effect: Tax expense on cash flow hedging activities 1,928 703 3,379 1,237 Amortization of unrecognized pension and postretirement amounts (80) (80) (239) (1,619) Tax benefit on settlement of U.S defined benefit plan — — — (24,925) Total tax effect on other comprehensive earnings (loss) $ 2,368 99 $ 5,691 (31,634) |
Schedule of Accumulated Other Comprehensive Earnings (Loss) | Changes in the components of accumulated other comprehensive earnings (loss) for the nine months ended September 27, 2020 and September 29, 2019 are as follows: Pension and Gains Unrealized Foreign Total 2020 Balance at December 29, 2019 $ (36,129) (5,232) (230) (142,629) (184,220) Current period other comprehensive earnings (loss) 824 (105) 1,315 (98,144) (96,110) Balance at September 27, 2020 $ (35,305) (5,337) 1,085 (240,773) (280,330) 2019 Balance at December 30, 2018 $ (143,134) 1,549 (744) (152,185) (294,514) Current period other comprehensive earnings (loss) 111,019 3,839 400 (6,120) 109,138 Balance at September 29, 2019 $ (32,115) 5,388 (344) (158,305) (185,376) |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 9 Months Ended |
Sep. 27, 2020 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Liabilities | Components of accrued liabilities for the periods ended September 27, 2020, September 29, 2019 and December 29, 2019 were as follows: September 27, 2020 September 29, 2019 December 29, 2019 Royalties $ 206,645 $ 178,100 $ 196,558 Advertising 131,481 130,434 59,440 Payroll and management services 89,197 72,032 85,635 Dividends 93,180 85,852 93,067 Severance 41,707 55,066 35,039 Participations and Residuals 309,156 9,742 10,432 Other Taxes 70,553 52,457 66,715 Lease liability -Current 42,814 29,489 30,673 Accrued income taxes 18,364 26,366 14,276 Deferred revenue 147,554 49,381 48,465 Other 319,425 268,777 272,352 Total accrued liabilities $ 1,470,076 $ 957,696 $ 912,652 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 9 Months Ended |
Sep. 27, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | The carrying costs, which are equal to the outstanding principal amounts, and fair values of the Company's long-term borrowings as of September 27, 2020, September 29, 2019 and December 29, 2019 are as follows: September 27, 2020 September 29, 2019 December 29, 2019 Carrying Fair Carrying Fair Carrying Fair 3.90% Notes Due 2029 $ 900,000 947,520 $ — — $ 900,000 893,430 3.55% Notes Due 2026 675,000 716,108 — — 675,000 680,670 3.00% Notes Due 2024 500,000 531,850 — — 500,000 502,150 6.35% Notes Due 2040 500,000 587,400 500,000 587,850 500,000 581,600 3.50% Notes Due 2027 500,000 518,750 500,000 511,200 500,000 500,550 2.60% Notes Due 2022 300,000 310,680 — — 300,000 300,960 5.10% Notes Due 2044 300,000 313,350 300,000 310,080 300,000 301,980 3.15% Notes Due 2021 300,000 303,540 300,000 303,300 300,000 303,900 6.60% Debentures Due 2028 109,895 130,324 109,895 133,555 109,895 130,610 Variable % Notes Due December 30, 2022 400,000 400,000 — — — — Variable % Notes Due December 30, 2024 577,500 577,500 — — — — Production Financing Facilities 121,444 121,444 — — — — Total long-term debt 5,183,839 5,458,466 1,709,895 1,845,985 4,084,895 4,195,850 Less: Deferred debt expenses 36,763 — 13,691 — 38,438 — Less: Current portion 369,269 — — — — — Long-term debt $ 4,777,807 5,458,466 $ 1,696,204 1,845,985 $ 4,046,457 4,195,850 |
Production Financing Loans | Quarter Ended September 27, 2020 Production financing held by production subsidiaries $ 121,444 Other loans 8,998 Total $ 130,442 Production financing shown in the consolidated balance sheet as: Non-current $ 82,175 Current 39,269 Total $ 121,444 |
Carrying Amount of Currencies for Production Credit Facilities | The carrying amounts are denominated in the following currencies: Canadian Dollars U.S. Dollars Total As of September 27, 2020 $ 57,317 73,125 130,442 |
Schedule of Production and Financing Loan and Other Loans | The following table represents the movements in production financing and other related loans acquired as a result of the eOne Acquisition during the first nine months of 2020: Production Financing Other Loans Total December 30, 2019 $ 209,651 9,102 218,753 Drawdowns 38,871 22,853 61,724 Repayments (124,824) (22,668) (147,492) Foreign exchange differences (2,254) (289) (2,543) Balance at September 27, 2020 $ 121,444 8,998 130,442 |
eOne Investments in Productio_2
eOne Investments in Productions and Investments in Acquired Content Rights (Tables) | 9 Months Ended |
Sep. 27, 2020 | |
Other Industries [Abstract] | |
Schedule of Program Production Costs | Costs associated with the Company's investments in eOne productions and investments in acquired content rights consisted of the following at September 27, 2020: September 27, 2020 Film and TV Programming Released, less amortization $ 477,329 Completed and not released 18,070 In production 51,001 Pre-production 41,144 587,544 Other Programming Released, less amortization 11,511 Completed and not released 3,421 In production 9,057 Pre-production 8,012 32,001 Total program costs $ 619,545 |
Program Cost Amortization | The Company recorded $244,194 of program cost amortization related to the above programming in the nine months ended September 27, 2020, consisting of the following: Investment in Production Investment in Content Total Program cost amortization $ 172,630 71,564 244,194 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 9 Months Ended |
Sep. 27, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Hierarchy | At September 27, 2020, September 29, 2019 and December 29, 2019, 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: Fair Quoted Significant Significant September 27, 2020 Assets: Available-for-sale securities $ 3,682 3,682 — — Derivatives 15,736 — 15,736 — Total assets $ 19,418 3,682 15,736 — Liabilities: Derivatives $ 372 — 372 — Option agreement 20,615 — — 20,615 Total liabilities $ 20,987 — 372 20,615 September 29, 2019 Assets: Available-for-sale securities $ 1,148 1,148 — — Derivatives 54,030 — 54,030 — Total assets $ 55,178 1,148 54,030 — Liabilities: Derivatives $ 11,508 — 11,508 — Option agreement 22,196 — — 22,196 Total liabilities $ 33,704 — 11,508 22,196 December 29, 2019 Assets: Available-for-sale securities $ 1,296 1,296 — — Derivatives 48,973 — 48,973 — Total assets $ 50,269 1,296 48,973 — Liabilities: Derivatives $ 5,733 — 5,733 — Option agreement 22,145 — — 22,145 Total Liabilities $ 27,878 — 5,733 22,145 |
Reconciliation of Level 3 Fair Value | 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): 2020 2019 Balance at beginning of year $ (22,145) (23,440) Gain from change in fair value 1,530 1,244 Balance at end of third quarter $ (20,615) (22,196) |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 9 Months Ended |
Sep. 27, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Summary of Cash Flow Hedging Instruments | At September 27, 2020, September 29, 2019 and December 29, 2019, the notional amounts and fair values of the Company's foreign currency forward contracts designated as cash flow hedging instruments were as follows: September 27, 2020 September 29, 2019 December 29, 2019 Hedged transaction Notional Fair Notional Fair Notional Fair Inventory purchases $ 315,924 9,148 $ 420,839 24,462 $ 398,800 8,727 Sales 111,760 3,940 212,062 7,231 124,920 4,037 Production financing and other 115,228 2,199 16,935 (137) 19,499 140 Total $ 542,912 15,287 $ 649,836 31,556 $ 543,219 12,904 |
Schedule of Foreign Currency Forward Contracts Designated as Cash Flow Hedges | 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 27, 2020, September 29, 2019 and December 29, 2019 as follows: September 27, September 29, December 29, Prepaid expenses and other current assets Unrealized gains $ 13,357 22,529 12,133 Unrealized losses (1,737) (1,333) (3,955) Net unrealized gains $ 11,620 21,196 8,178 Other assets Unrealized gains $ 4,218 10,609 6,652 Unrealized losses (179) (249) — Net unrealized gains $ 4,039 10,360 6,652 Accrued liabilities Unrealized gains $ 680 — 293 Unrealized losses (992) — (2,219) Net unrealized losses $ (312) — (1,926) Other liabilities Unrealized gains $ 13 — — Unrealized losses (73) — — Net unrealized losses $ (60) — — |
Schedule of Net Gains (Losses) on Cash Flow Hedges Activities | Net gains (losses) on cash flow hedging activities have been reclassified from other comprehensive earnings (loss) to net earnings for the quarters and nine months ended September 27, 2020 and September 29, 2019 as follows: Quarter Ended Nine Months Ended September 27, September 29, September 27, September 29, Statements of Operations Classification Cost of sales $ 7,116 4,678 $ 16,680 9,278 Net revenues 1,237 1,889 2,413 3,366 Other 859 (23) 1,410 129 Net realized gains $ 9,212 6,544 $ 20,503 12,773 |
Fair Values of Undesignated Derivative Financial Instruments | At September 27, 2020, September 29, 2019 and December 29, 2019, the fair values of the Company's undesignated derivative financial instruments were recorded in the consolidated balance sheets as follows: September 27, September 29, December 29, Prepaid expenses and other current assets Unrealized gains $ 3,294 2,630 — Unrealized losses (3,217) (301) — Net unrealized gains $ 77 2,329 — Accrued liabilities Unrealized gains $ — 164 13 Unrealized losses — (203) (3,820) Net unrealized losses $ — (39) (3,807) Total unrealized gains (losses), net $ 77 2,290 (3,807) |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 27, 2020 | |
Leases [Abstract] | |
Schedule of Information Related to Leases | Information related to the Company’s leases for the quarter and nine months ended September 27, 2020 and September 29, 2019 are as follows: Quarter Ended Nine Months Ended September 27, September 29, September 27, September 29, Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 13,158 9,003 $ 38,774 27,817 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 2,097 1,363 $ 102,521 25,622 Weighted Average Remaining Lease Term Operating leases 6.2 years 6.4 years 6.2 years 6.4 years Weighted Average Discount Rate Operating leases 3.1 % 4.5 % 3.1 % 4.5 % |
Reconciliation of Future Undiscounted Cash Flows | 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 September 27, 2020: September 27, 2020 (excluding the nine months ended September 27, 2020) $ 12,576 2021 47,794 2022 43,660 2023 35,763 2024 24,513 2025 and thereafter 66,276 Total future lease payments 230,582 Less imputed interest 24,976 Present value of future operating lease payments 205,606 Less current portion of operating lease liabilities (1) 42,814 Non-current operating lease liability (2) 162,792 Operating lease right-of-use assets, net (3) $ 189,211 (1) Included in Accrued liabilities on the consolidated balance sheets. (2) Included in Other liabilities on the consolidated balance sheets. (3) Included in Property, plant, and equipment on the consolidated balance sheets. |
Segment Reporting (Tables)
Segment Reporting (Tables) | 9 Months Ended |
Sep. 27, 2020 | |
Segment Reporting [Abstract] | |
Information by Segment and Reconciliation to Reported Amounts | Information by segment and a reconciliation to reported amounts for the quarters and nine months ended September 27, 2020 and September 29, 2019 are as follows: Quarter Ended September 27, 2020 September 29, 2019 Net revenues External Affiliate External Affiliate U.S. and Canada $ 977,115 5,938 $ 898,269 2,535 International 517,007 133 561,137 — Entertainment, Licensing and Digital 89,027 2,110 115,766 3,849 eOne 193,474 — — — Global Operations (a) — 431,738 1 538,817 Corporate and Eliminations (b) — (439,919) — (545,201) $ 1,776,623 — $ 1,575,173 — Nine Months Ended September 27, 2020 September 29, 2019 Net revenues External Affiliate External Affiliate U.S. and Canada $ 1,765,482 12,990 $ 1,766,649 7,379 International 1,017,222 133 1,221,224 186 Entertainment, Licensing and Digital 262,879 3,918 304,266 7,989 eOne 696,889 — — — Global Operations (a) — 898,808 81 1,088,860 Corporate and Eliminations (b) — (915,849) — (1,104,414) $ 3,742,472 — $ 3,292,220 — |
Operating Profit (Loss) by Segment | Quarter Ended Nine Months Ended Operating profit (loss) September 27, September 29, September 27, September 29, U.S. and Canada $ 262,977 193,686 $ 359,028 313,795 International 63,924 67,238 12,333 51,410 Entertainment, Licensing and Digital 32,791 24,594 65,758 62,550 eOne (25,914) — (64,962) — Global Operations (a) 5,681 11,074 4,385 6,342 Corporate and Eliminations (b) (2,901) 618 (61,092) 27,573 $ 336,558 297,210 $ 315,450 461,670 |
Total Assets by Segment | Total assets September 27, September 29, December 29, U.S. and Canada $ 3,835,054 3,331,125 3,244,950 International 2,234,562 2,394,488 2,482,170 Entertainment, Licensing and Digital 1,162,684 1,031,906 695,898 eOne 5,686,389 — — Global Operations (a) 3,465,018 3,255,286 3,334,190 Corporate and Eliminations (b) (5,680,530) (4,458,181) (901,580) $ 10,703,177 5,554,624 8,855,628 (a) The Global Operations segment derives substantially all of its revenues, and thus its operating results, from intersegment activities. (b) Certain long-term assets, including property, plant and equipment, goodwill and other intangibles, which benefit multiple operating segments, are included in Corporate and Eliminations. Allocations of certain expenses related to these assets to the individual operating segments are done at the beginning of the year based on budgeted amounts. Any differences between actual and budgeted amounts are reflected in Corporate and Eliminations because allocations are translated from the U.S. Dollar to local currency at budgeted rates when recorded. Corporate and Eliminations also includes the elimination of inter-company balance sheet amounts. |
Schedule of Net Revenues by Major Geographic Region | The following table represents consolidated International segment net revenues by major geographic region for the quarters and nine months ended September 27, 2020 and September 29, 2019: Quarter Ended Nine Months Ended September 27, September 29, September 27, September 29, Europe $ 343,179 319,277 $ 663,100 673,728 Latin America 91,619 151,987 158,028 305,106 Asia Pacific 82,209 89,873 196,094 242,390 Net revenues $ 517,007 561,137 $ 1,017,222 1,221,224 |
Schedules of Net Revenues by Brand Portfolio | The following table presents consolidated net revenues by brand and entertainment portfolio for the quarters and nine months ended September 27, 2020 and September 29, 2019: Quarter Ended Nine Months Ended September 27, September 29, September 27, September 29, Franchise Brands $ 807,555 779,659 $ 1,580,878 1,749,948 Partner Brands 409,214 427,029 729,772 812,466 Hasbro Gaming (1) 239,222 232,287 516,337 463,272 Emerging Brands (2) 154,965 136,198 325,101 266,534 TV/Film/Entertainment (3) 165,667 — 590,384 — Total $ 1,776,623 1,575,173 $ 3,742,472 3,292,220 (1) Hasbro's total gaming category, which includes all gaming net revenues, both those reported in Hasbro Gaming and those reported elsewhere, most notably MAGIC: THE GATHERING and MONOPOLY, totaled $543,107 and $1,202,604 for the quarter and nine months ended September 27, 2020, respectively. For the quarter and nine months ended September 29, 2019, total gaming revenues were $449,393 and $1,086,151, respectively. (2) Emerging Brands portfolio balances for the quarter and nine-month period ended September 27, 2020 include eOne brands PEPPA PIG, PJ MASKS and RICKY ZOOM. (3) TV/Film/Entertainment represents eOne revenues not allocated to the Emerging Brands portfolio. |
Restructuring Actions (Tables)
Restructuring Actions (Tables) | 9 Months Ended |
Sep. 27, 2020 | |
Restructuring Charges [Abstract] | |
Schedule of Restructuring and Related Costs | The detail of activity related to the programs for the nine months ended September 27, 2020 is as follows: 2018 Restructuring Program eOne Integration Program Other Total Remaining amounts to be paid as of December 29, 2019 $ 31,113 — — $ 31,113 2020 restructuring charges — 20,832 11,554 32,386 Payments made in the first nine months of 2020 (17,510) (8,223) (1,096) (26,829) Remaining amounts as of September 27, 2020 $ 13,603 12,609 10,458 $ 36,670 |
Basis of Presentation (Details)
Basis of Presentation (Details) £ / shares in Units, $ / shares in Units, £ in Thousands, shares in Thousands | Dec. 30, 2019USD ($) | Dec. 30, 2019GBP (£)£ / shares | Nov. 30, 2019USD ($)$ / sharesshares | Mar. 29, 2020 | Sep. 27, 2020USD ($) | Dec. 30, 2019$ / shares |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Production financing facility, term of maturity | 2 years | |||||
Production financing facility, restricted cash | $ 71,194,000 | |||||
Investment in productions and acquired content rights, term of release | 10 years | |||||
Shares issued as consideration (in shares) | shares | 10,592 | |||||
Senior Notes | Senior Unsecured Notes | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Aggregate principal amount | $ 2,375,000,000 | |||||
eOne | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Business combination, consideration transferred | $ 4,587,642,000 | |||||
Payments to acquire businesses | 4,635,041,000 | £ 2,900,000 | ||||
Total consideration for shares outstanding | 3,658,345,000 | |||||
Cash consideration for extinguishment of debt | $ 831,130,000 | |||||
Cash dividends declared per common share (in dollars per share) | (per share) | £ 5.60 | $ 7.35 | ||||
Whizz Kid Entertainment Limited | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Business acquisition, percentage of voting interests acquired | 30.00% | |||||
Unsecured Committed | eOne | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Cash dividends declared per common share (in dollars per share) | $ / shares | $ 95 | |||||
Line of credit, borrowings outstanding | $ 1,000,000,000 | |||||
Astley Baker Davies Limited | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Proportion held | 70.00% | |||||
Whizz Kid Entertainment Limited | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Proportion held | 100.00% | |||||
MR Productions Holdings, LLC | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Proportion held | 75.00% | |||||
Renegade Entertainment, LLC | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Proportion held | 65.00% | |||||
Round Room Live, LLC | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Proportion held | 60.00% |
Revenue Recognition - Narrative
Revenue Recognition - Narrative (Details) $ in Thousands | 9 Months Ended | ||
Sep. 27, 2020USD ($)brand_category | Dec. 29, 2019USD ($) | Sep. 29, 2019USD ($) | |
Disaggregation of Revenue [Line Items] | |||
Contract assets | $ 356,678 | $ 45,001 | |
Prepaid expenses and other current assets | 271,786 | 32,199 | |
Contract assets - long term | 84,892 | 12,802 | |
Contract liabilities - current | 147,554 | 48,465 | |
Other liabilities | $ 778,514 | $ 556,559 | $ 550,778 |
Number of brand categories | brand_category | 5 | ||
eOne | |||
Disaggregation of Revenue [Line Items] | |||
Contract assets | $ 283,329 | ||
Prepaid expenses and other current assets | 232,184 | ||
Contract assets - long term | 51,145 | ||
Deferred revenue | 152,266 | ||
Contract liabilities - current | 144,094 | ||
Other liabilities | $ 8,172 | ||
Contract asset, balance, percentage | 80.00% | ||
Contract liability, balance, percentage | 56.00% |
Revenue Recognition - Contract
Revenue Recognition - Contract Assets and Liabilities (Details) - USD ($) $ in Thousands | Sep. 27, 2020 | Sep. 29, 2019 |
Revenue from Contract with Customer [Abstract] | ||
Assets | $ 271,786 | $ 32,199 |
Contract assets - long term | 84,892 | 12,802 |
Total | 356,678 | 45,001 |
Contract liabilities - current | 147,554 | 48,465 |
Contract liabilities - long term | 17,872 | 8,423 |
Total | $ 165,426 | $ 56,888 |
Business Combination - Narrativ
Business Combination - Narrative (Details) £ / shares in Units, $ / shares in Units, £ in Thousands, shares in Thousands | Dec. 30, 2019USD ($)$ / shares | Dec. 30, 2019GBP (£) | Nov. 30, 2019USD ($)$ / sharesshares | Sep. 27, 2020USD ($) | Sep. 29, 2019USD ($) | Sep. 27, 2020USD ($) | Sep. 29, 2019USD ($) | Dec. 29, 2019USD ($) | Dec. 30, 2019£ / shares |
Business Acquisition [Line Items] | |||||||||
Shares issued as consideration (in shares) | shares | 10,592 | ||||||||
Goodwill | $ 3,644,118,000 | $ 485,042,000 | $ 3,644,118,000 | $ 485,042,000 | $ 494,584,000 | ||||
Acquisition and related costs | 5,949,000 | 0 | 165,993,000 | 0 | |||||
Severance expense | 11,554,000 | ||||||||
Asset impairments | $ 40,878,000 | 0 | |||||||
Amortization of intangibles | 9,726,000 | 30,778,000 | |||||||
Interest expense | 19,105,000 | 57,316,000 | |||||||
Income tax effect, amount | 683,000 | 8,707,000 | |||||||
Income tax rate, percent | 19.00% | ||||||||
eOne | |||||||||
Business Acquisition [Line Items] | |||||||||
Payments to acquire businesses | $ 4,635,041,000 | £ 2,900,000 | |||||||
Cash consideration per share (in dollars and GBP per share) | (per share) | $ 7.35 | £ 5.60 | |||||||
Conversion rate (USD/GBP) | 1.31 | ||||||||
Cash consideration for shares outstanding | $ 3,658,345,000 | ||||||||
Indebtedness redeemed as consideration for acquisition | 831,130,000 | ||||||||
Goodwill | 3,149,337,000 | ||||||||
Acquisition and related costs | $ 77,729,000 | ||||||||
Integration related costs | 4,599,000 | 104,283,000 | |||||||
Integration related costs, acceleration of stock-based compensation | 47,399,000 | ||||||||
Integration related costs, advisor fees | 38,168,000 | ||||||||
Less: Employee awards to be recorded as future stock compensation expense | $ 47,399,000 | ||||||||
Restructuring and related cost | 1,350,000 | 61,710,000 | |||||||
Severance expense | $ 1,350,000 | ||||||||
Asset impairments | 40,878,000 | ||||||||
Acquisition costs, period cost | 3,244,000 | 3,244,000 | |||||||
Other expenses | 25,533,000 | 45,345,000 | |||||||
Payment for debt prepayment cost | 19,812,000 | ||||||||
eOne | Foreign Exchange Forward | |||||||||
Business Acquisition [Line Items] | |||||||||
Other expenses | $ 25,533,000 | $ 25,533,000 | |||||||
Unsecured Committed | eOne | |||||||||
Business Acquisition [Line Items] | |||||||||
Cash consideration per share (in dollars and GBP per share) | $ / shares | $ 95 | ||||||||
Term loans proceeds which financed acquisition | $ 1,000,000,000 | ||||||||
Senior Notes | Senior Unsecured Notes | |||||||||
Business Acquisition [Line Items] | |||||||||
Proceeds from issuance of debt | 975,185,000 | ||||||||
Aggregate principal amount | $ 2,375,000,000 | ||||||||
Entertainment, Licensing and Digital | eOne | |||||||||
Business Acquisition [Line Items] | |||||||||
Acquisition and related costs | $ 20,831,000 | ||||||||
Minimum | |||||||||
Business Acquisition [Line Items] | |||||||||
Income tax rate, percent | 21.00% | ||||||||
Minimum | Trademarks and Trade Names | eOne | |||||||||
Business Acquisition [Line Items] | |||||||||
Intangible asset useful life | 7 years | ||||||||
Minimum | Films and Television Programs | eOne | |||||||||
Business Acquisition [Line Items] | |||||||||
Intangible asset useful life | 3 years | ||||||||
Maximum | |||||||||
Business Acquisition [Line Items] | |||||||||
Income tax rate, percent | 22.50% | ||||||||
Maximum | Trademarks and Trade Names | eOne | |||||||||
Business Acquisition [Line Items] | |||||||||
Intangible asset useful life | 15 years | ||||||||
Maximum | Films and Television Programs | eOne | |||||||||
Business Acquisition [Line Items] | |||||||||
Intangible asset useful life | 10 years |
Business Combination - Total Co
Business Combination - Total Consideration Transferred (Details) - Dec. 30, 2019 - eOne £ / shares in Units, $ / shares in Units, £ in Thousands, shares in Thousands, $ in Thousands | GBP (£)£ / sharesshares | USD ($)shares | $ / shares |
Business Acquisition [Line Items] | |||
eOne common shares outstanding (in shares) | shares | 498,040 | 498,040 | |
Cash consideration per share (in dollars per share) | (per share) | £ 5.60 | $ 7.35 | |
Total consideration for shares outstanding | $ 3,658,345 | ||
Cash consideration for employee share based payment awards outstanding | 145,566 | ||
Cash consideration for extinguishment of debt | 831,130 | ||
Total cash consideration | £ 2,900,000 | 4,635,041 | |
Less: Employee awards to be recorded as future stock compensation expense | 47,399 | ||
Total consideration transferred | $ 4,587,642 |
Business Combination - Prelimin
Business Combination - Preliminary Allocation of Purchase Price (Details) - USD ($) $ in Thousands | Sep. 27, 2020 | Dec. 30, 2019 | Dec. 29, 2019 | Sep. 29, 2019 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 3,644,118 | $ 494,584 | $ 485,042 | |
eOne | ||||
Business Acquisition [Line Items] | ||||
Cash, cash equivalents and restricted cash | $ 183,713 | |||
Accounts receivable, net | 295,154 | |||
Inventories | 7,029 | |||
Other current assets | 285,700 | |||
Property, plant and equipment (including right of use assets) | 125,672 | |||
Intangible assets | 1,056,000 | |||
Content assets - IIC and IIP | 611,290 | |||
Other assets | 89,719 | |||
Short-term borrowings | (11,011) | |||
Current portion of long-term debt | (115,800) | |||
Accounts payable, and accrued liabilities | (702,742) | |||
Long-term debt | (93,851) | |||
Other liabilities | (227,766) | |||
Noncontrolling interests | (64,802) | |||
Estimated fair value of net assets acquired | 1,438,305 | |||
Goodwill | 3,149,337 | |||
Total purchase price | 4,587,642 | |||
eOne | Previously Reported | ||||
Business Acquisition [Line Items] | ||||
Cash, cash equivalents and restricted cash | 183,713 | |||
Accounts receivable, net | 259,061 | |||
Inventories | 7,029 | |||
Other current assets | 286,270 | |||
Property, plant and equipment (including right of use assets) | 90,339 | |||
Intangible assets | 1,055,249 | |||
Content assets - IIC and IIP | 751,524 | |||
Other assets | 183,209 | |||
Short-term borrowings | (11,011) | |||
Current portion of long-term debt | (60,533) | |||
Accounts payable, and accrued liabilities | (761,086) | |||
Long-term debt | (149,118) | |||
Other liabilities | (262,644) | |||
Noncontrolling interests | (63,541) | |||
Estimated fair value of net assets acquired | 1,508,461 | |||
Goodwill | 3,079,181 | |||
Total purchase price | 4,587,642 | |||
eOne | Revision of Prior Period, Adjustment | ||||
Business Acquisition [Line Items] | ||||
Cash, cash equivalents and restricted cash | 0 | |||
Accounts receivable, net | 36,093 | |||
Inventories | 0 | |||
Other current assets | (570) | |||
Property, plant and equipment (including right of use assets) | 35,333 | |||
Intangible assets | 751 | |||
Content assets - IIC and IIP | (140,234) | |||
Other assets | (93,490) | |||
Short-term borrowings | 0 | |||
Current portion of long-term debt | (55,267) | |||
Accounts payable, and accrued liabilities | 58,344 | |||
Long-term debt | 55,267 | |||
Other liabilities | 34,878 | |||
Noncontrolling interests | (1,261) | |||
Estimated fair value of net assets acquired | (70,156) | |||
Goodwill | 70,156 | |||
Total purchase price | $ 0 |
Business Combination - Suppleme
Business Combination - Supplemental Pro Forma Results of Operations (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 27, 2020 | Sep. 29, 2019 | Sep. 27, 2020 | Sep. 29, 2019 | |
Business Acquisition [Line Items] | ||||
Net revenues | $ 1,776,623 | $ 1,575,173 | $ 3,742,472 | $ 3,292,220 |
Pro Forma Results | ||||
Revenues | 1,858,483 | 4,272,833 | ||
Net earnings attributable to Hasbro, Inc. | 218,858 | 255,357 | ||
Net earnings attributable to Hasbro, Inc. | $ 216,536 | $ 250,443 | ||
Earnings per share attributable to Hasbro, Inc.: Diluted (in dollars per share) | $ 1.57 | $ 1.82 | ||
Earnings per share attributable to Hasbro, Inc.: Basic (in dollars per share) | $ 1.57 | $ 1.82 | ||
Operating Segments | eOne | ||||
Business Acquisition [Line Items] | ||||
Net revenues | 193,474 | $ 0 | 696,889 | $ 0 |
Operating Segments | eOne | ||||
Business Acquisition [Line Items] | ||||
Loss before income taxes | $ (30,793) | $ (75,441) |
Business Combination - Changes
Business Combination - Changes in Carrying Amount of Goodwill (Details) $ in Thousands | 9 Months Ended |
Sep. 27, 2020USD ($) | |
Goodwill [Roll Forward] | |
Beginning balance | $ 494,584 |
Ending balance | 3,644,118 |
Operating Segments | |
Goodwill [Roll Forward] | |
Beginning balance | 494,584 |
Acquired during the period | 3,079,181 |
Measurement period adjustments | 70,156 |
Foreign exchange translation | 197 |
Ending balance | 3,644,118 |
Operating Segments | U.S. and Canada | |
Goodwill [Roll Forward] | |
Beginning balance | 291,577 |
Acquired during the period | 0 |
Measurement period adjustments | 0 |
Foreign exchange translation | 0 |
Ending balance | 291,577 |
Operating Segments | International | |
Goodwill [Roll Forward] | |
Beginning balance | 170,218 |
Acquired during the period | 0 |
Measurement period adjustments | 0 |
Foreign exchange translation | 188 |
Ending balance | 170,406 |
Operating Segments | Entertainment, Licensing and Digital | |
Goodwill [Roll Forward] | |
Beginning balance | 32,789 |
Acquired during the period | 0 |
Measurement period adjustments | 0 |
Foreign exchange translation | 9 |
Ending balance | 32,798 |
Operating Segments | eOne | |
Goodwill [Roll Forward] | |
Beginning balance | 0 |
Acquired during the period | 3,079,181 |
Measurement period adjustments | 70,156 |
Foreign exchange translation | 0 |
Ending balance | $ 3,149,337 |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 27, 2020 | Sep. 29, 2019 | Sep. 27, 2020 | Sep. 29, 2019 | |
Earnings Per Share [Abstract] | ||||
Net earnings (loss) attributable to Hasbro, Inc. | $ 220,898 | $ 212,949 | $ 117,346 | $ 253,109 |
Average shares outstanding (in shares) | 137,258 | 126,453 | 137,214 | 126,356 |
Basic | ||||
Equivalent Shares (in shares) | 137,258 | 126,453 | 137,214 | 126,356 |
Net earnings per common share (in dollars per share) | $ 1.61 | $ 1.68 | $ 0.86 | $ 2 |
Effect of dilutive securities: | ||||
Options and other share-based awards (in shares) | 232 | 751 | 251 | 600 |
Equivalent Shares (in shares) | 137,490 | 127,204 | 137,465 | 126,956 |
Net earnings per common share (in dollars per share) | $ 1.61 | $ 1.67 | $ 0.85 | $ 1.99 |
Earnings Per Share - Narrative
Earnings Per Share - Narrative (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 27, 2020 | Sep. 29, 2019 | Sep. 27, 2020 | Sep. 29, 2019 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Options and other share-based awards (in shares) | 232 | 751 | 251 | 600 |
Employee stock option and restricted stock units | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 2,852 | 3,046 | 1,088 |
Other Comprehensive Earnings _3
Other Comprehensive Earnings (Loss) - Schedule of Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 27, 2020 | Sep. 29, 2019 | Sep. 27, 2020 | Sep. 29, 2019 | |
Other comprehensive earnings (loss), tax effect: | ||||
Tax benefit (expense) on unrealized holding gains (losses) | $ 235 | $ 46 | $ (381) | $ (116) |
Tax benefit (expense) on cash flow hedging activities | 285 | (570) | (5,474) | (524) |
Tax benefit on foreign currency translation adjustments | 0 | 0 | 8,406 | 0 |
Tax expense on changes in unrecognized pension amounts | 0 | 0 | 0 | (5,687) |
Reclassifications to earnings, tax effect: | ||||
Tax expense on cash flow hedging activities | 1,928 | 703 | 3,379 | 1,237 |
Amortization of unrecognized pension and postretirement amounts | (80) | (80) | (239) | (1,619) |
Tax benefit on settlement of U.S defined benefit plan | 0 | 0 | 0 | (24,925) |
Total tax effect on other comprehensive earnings (loss) | $ 2,368 | $ 99 | $ 5,691 | $ (31,634) |
Other Comprehensive Earnings _4
Other Comprehensive Earnings (Loss) - Schedule of Accumulated Other Comprehensive Earnings (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 27, 2020 | Sep. 29, 2019 | Sep. 27, 2020 | Sep. 29, 2019 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balance at the beginning of the period | $ (184,220) | $ (294,514) | ||
Current period other comprehensive earnings (loss) | $ 27,798 | $ (12,201) | (96,110) | 109,138 |
Balance at the end of the period | (280,330) | (185,376) | (280,330) | (185,376) |
Pension and Postretirement Amounts | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balance at the beginning of the period | (36,129) | (143,134) | ||
Current period other comprehensive earnings (loss) | 824 | 111,019 | ||
Balance at the end of the period | (35,305) | (32,115) | (35,305) | (32,115) |
Gains (Losses) on Derivative Instruments | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balance at the beginning of the period | (5,232) | 1,549 | ||
Current period other comprehensive earnings (loss) | (105) | 3,839 | ||
Balance at the end of the period | (5,337) | 5,388 | (5,337) | 5,388 |
Unrealized Holding Gains (Losses) on Available- for-Sale Securities | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balance at the beginning of the period | (230) | (744) | ||
Current period other comprehensive earnings (loss) | 1,315 | 400 | ||
Balance at the end of the period | 1,085 | (344) | 1,085 | (344) |
Foreign Currency Translation Adjustments | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balance at the beginning of the period | (142,629) | (152,185) | ||
Current period other comprehensive earnings (loss) | (98,144) | (6,120) | ||
Balance at the end of the period | $ (240,773) | $ (158,305) | $ (240,773) | $ (158,305) |
Other Comprehensive Earnings _5
Other Comprehensive Earnings (Loss) - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 27, 2020 | Sep. 29, 2019 | Sep. 27, 2020 | Sep. 29, 2019 | Dec. 29, 2019 | Dec. 30, 2018 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||
Accumulated other comprehensive loss | $ (280,330) | $ (185,376) | $ (280,330) | $ (185,376) | $ (184,220) | $ (294,514) |
Previously deferred losses | 49,400 | 22,764 | 153,702 | 67,096 | ||
Expected net gains | 8,143 | |||||
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent | Foreign Exchange Forward | ||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||
Accumulated other comprehensive loss | 11,534 | 11,534 | ||||
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent | Interest Rate Contract | ||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||
Accumulated other comprehensive loss | 16,871 | 16,871 | ||||
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent | Reclassification out of Accumulated Other Comprehensive Income | Interest Rate Contract | ||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||
Previously deferred losses | $ 450 | $ 450 | $ 1,349 | $ 1,349 |
Accrued Liabilities (Details)
Accrued Liabilities (Details) - USD ($) $ in Thousands | Sep. 27, 2020 | Dec. 29, 2019 | Sep. 29, 2019 |
Payables and Accruals [Abstract] | |||
Royalties | $ 206,645 | $ 196,558 | $ 178,100 |
Advertising | 131,481 | 59,440 | 130,434 |
Payroll and management services | 89,197 | 85,635 | 72,032 |
Dividends | 93,180 | 93,067 | 85,852 |
Severance | 41,707 | 35,039 | 55,066 |
Participations and Residuals | 309,156 | 10,432 | 9,742 |
Other Taxes | 70,553 | 66,715 | 52,457 |
Lease liability -Current | 42,814 | 30,673 | 29,489 |
Accrued income taxes | 18,364 | 14,276 | 26,366 |
Deferred revenue | 147,554 | 48,465 | 49,381 |
Other | 319,425 | 272,352 | 268,777 |
Accrued liabilities | $ 1,470,076 | $ 912,652 | $ 957,696 |
Financial Instruments - Long-te
Financial Instruments - Long-term Debt Instruments (Details) - USD ($) $ in Thousands | Sep. 27, 2020 | Dec. 29, 2019 | Sep. 29, 2019 |
Debt Instrument [Line Items] | |||
Carrying Cost | $ 5,183,839 | $ 4,084,895 | $ 1,709,895 |
Less: Deferred debt expenses | 36,763 | 38,438 | 13,691 |
Less: Current portion | 369,269 | 0 | 0 |
Long-term debt, carrying cost | 4,777,807 | 4,046,457 | 1,696,204 |
Fair Value | 5,458,466 | 4,195,850 | 1,845,985 |
Long-term debt, fair value | 5,458,466 | 4,195,850 | 1,845,985 |
3.90% Notes Due 2029 | |||
Debt Instrument [Line Items] | |||
Carrying Cost | 900,000 | 900,000 | 0 |
Fair Value | $ 947,520 | 893,430 | 0 |
Interest Rate | 3.90% | ||
3.55% Notes Due 2026 | |||
Debt Instrument [Line Items] | |||
Carrying Cost | $ 675,000 | 675,000 | 0 |
Fair Value | $ 716,108 | 680,670 | 0 |
Interest Rate | 3.55% | ||
3.00% Notes Due 2024 | |||
Debt Instrument [Line Items] | |||
Carrying Cost | $ 500,000 | 500,000 | 0 |
Fair Value | $ 531,850 | 502,150 | 0 |
Interest Rate | 3.00% | ||
6.35% Notes Due 2040 | |||
Debt Instrument [Line Items] | |||
Carrying Cost | $ 500,000 | 500,000 | 500,000 |
Fair Value | $ 587,400 | 581,600 | 587,850 |
Interest Rate | 6.35% | ||
3.50% Notes Due 2027 | |||
Debt Instrument [Line Items] | |||
Carrying Cost | $ 500,000 | 500,000 | 500,000 |
Fair Value | $ 518,750 | 500,550 | 511,200 |
Interest Rate | 3.50% | ||
2.60% Notes Due 2022 | |||
Debt Instrument [Line Items] | |||
Carrying Cost | $ 300,000 | 300,000 | 0 |
Fair Value | $ 310,680 | 300,960 | 0 |
Interest Rate | 2.60% | ||
5.10% Notes Due 2044 | |||
Debt Instrument [Line Items] | |||
Carrying Cost | $ 300,000 | 300,000 | 300,000 |
Fair Value | $ 313,350 | 301,980 | 310,080 |
Interest Rate | 5.10% | ||
3.15% Notes Due 2021 | |||
Debt Instrument [Line Items] | |||
Carrying Cost | $ 300,000 | 300,000 | 300,000 |
Fair Value | $ 303,540 | 303,900 | 303,300 |
Interest Rate | 3.15% | ||
6.60% Debentures Due 2028 | |||
Debt Instrument [Line Items] | |||
Carrying Cost | $ 109,895 | 109,895 | 109,895 |
Fair Value | $ 130,324 | 130,610 | 133,555 |
Interest Rate | 6.60% | ||
Variable % Notes Due December 30, 2022 | |||
Debt Instrument [Line Items] | |||
Carrying Cost | $ 400,000 | 0 | 0 |
Fair Value | 400,000 | 0 | 0 |
Variable % Notes Due December 30, 2024 | |||
Debt Instrument [Line Items] | |||
Carrying Cost | 577,500 | 0 | 0 |
Fair Value | 577,500 | 0 | 0 |
Production Financing Facilities | |||
Debt Instrument [Line Items] | |||
Carrying Cost | 121,444 | 0 | 0 |
Fair Value | $ 121,444 | $ 0 | $ 0 |
Financial Instruments - Narrati
Financial Instruments - Narrative (Details) - USD ($) | 1 Months Ended | 9 Months Ended | |||
Nov. 30, 2019 | Sep. 30, 2019 | Sep. 27, 2020 | Dec. 29, 2019 | Sep. 29, 2019 | |
Debt Instrument [Line Items] | |||||
Current portion of long-term debt | $ 369,269,000 | $ 0 | $ 0 | ||
Other loans | $ 8,998,000 | ||||
Production financing loan, weighted average interest rate | 5.10% | ||||
Minimum | |||||
Debt Instrument [Line Items] | |||||
Term of loan facility | 3 years | ||||
Senior Unsecured Notes | Minimum | |||||
Debt Instrument [Line Items] | |||||
Upward adjustment if credit rating is reduced (as a percent) | 0.25% | ||||
Senior Unsecured Notes | Maximum | |||||
Debt Instrument [Line Items] | |||||
Term of loan facility | 10 years | ||||
Upward adjustment if credit rating is reduced (as a percent) | 2.00% | ||||
Senior Notes | Senior Unsecured Notes | |||||
Debt Instrument [Line Items] | |||||
Aggregate principal amount | $ 2,375,000,000 | ||||
Underwriting discount and fees | 20,043,000 | ||||
Net proceeds after deduction of underwriting discount and fees | 2,354,957,000 | ||||
Senior Notes | 2.60% Notes Due 2022 | |||||
Debt Instrument [Line Items] | |||||
Aggregate principal amount | $ 300,000,000 | ||||
Interest rate | 2.60% | ||||
Effective interest rate | 0.15% | ||||
Senior Notes | 3.00% Notes Due 2024 | |||||
Debt Instrument [Line Items] | |||||
Aggregate principal amount | $ 500,000,000 | ||||
Interest rate | 3.00% | ||||
Effective interest rate | 0.25% | ||||
Senior Notes | 3.55% Notes Due 2026 | |||||
Debt Instrument [Line Items] | |||||
Aggregate principal amount | $ 675,000,000 | ||||
Interest rate | 3.55% | ||||
Effective interest rate | 0.30% | ||||
Senior Notes | 3.90% Notes Due 2029 | |||||
Debt Instrument [Line Items] | |||||
Aggregate principal amount | $ 900,000,000 | ||||
Interest rate | 3.90% | ||||
Effective interest rate | 0.35% | ||||
3.50% Notes Due 2027 | |||||
Debt Instrument [Line Items] | |||||
Interest rate | 3.50% | ||||
Redemption price (as a percent) | 100.00% | ||||
3.15% Notes Due 2021 | |||||
Debt Instrument [Line Items] | |||||
Aggregate principal amount | $ 300,000 | ||||
Interest rate | 3.15% | ||||
Unsecured Debt | Term Loan Agreement | |||||
Debt Instrument [Line Items] | |||||
Aggregate principal amount | $ 1,000,000,000 | ||||
Consolidated interest coverage ratio | 3 | ||||
Consolidated total leverage ratio | 3.50 | ||||
Repayments of unsecured debt | $ 22,500,000 | ||||
Unsecured Debt | Term Loan Agreement | Minimum | |||||
Debt Instrument [Line Items] | |||||
Consolidated total leverage ratio | 5.40 | ||||
Unsecured Debt | Term Loan Agreement | Maximum | |||||
Debt Instrument [Line Items] | |||||
Consolidated total leverage ratio | 5.65 | ||||
Unsecured Debt | Three-Year Term Loan Facility | |||||
Debt Instrument [Line Items] | |||||
Aggregate principal amount | $ 400,000,000 | ||||
Term of loan facility | 3 years | ||||
Unsecured Debt | Five-Year Term Loan Facility | |||||
Debt Instrument [Line Items] | |||||
Aggregate principal amount | $ 600,000,000 | ||||
Term of loan facility | 5 years | ||||
Unsecured Debt | Five-Year Term Loan Facility | Debt Instrument, Redemption, Period One | |||||
Debt Instrument [Line Items] | |||||
Interest rate | 5.00% | ||||
Term of loan facility | 2 years | ||||
Unsecured Debt | Five-Year Term Loan Facility | Debt Instrument, Redemption, Period Two | |||||
Debt Instrument [Line Items] | |||||
Interest rate | 10.00% | ||||
Eurocurrency Rate | Unsecured Debt | Three-Year Term Loan Facility | Minimum | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate (as a percent) | 0.875% | ||||
Eurocurrency Rate | Unsecured Debt | Three-Year Term Loan Facility | Maximum | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate (as a percent) | 1.75% | ||||
Eurocurrency Rate | Unsecured Debt | Five-Year Term Loan Facility | Minimum | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate (as a percent) | 1.00% | ||||
Eurocurrency Rate | Unsecured Debt | Five-Year Term Loan Facility | Maximum | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate (as a percent) | 1.875% | ||||
Base Rate | Unsecured Debt | Three-Year Term Loan Facility | Minimum | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate (as a percent) | 0.00% | ||||
Base Rate | Unsecured Debt | Three-Year Term Loan Facility | Maximum | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate (as a percent) | 0.75% | ||||
Base Rate | Unsecured Debt | Five-Year Term Loan Facility | Minimum | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate (as a percent) | 0.00% | ||||
Base Rate | Unsecured Debt | Five-Year Term Loan Facility | Maximum | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate (as a percent) | 0.875% |
Financial Instruments - Product
Financial Instruments - Production Financing Loans (Details) $ in Thousands | Sep. 27, 2020USD ($) |
Debt Disclosure [Abstract] | |
Production financing held by production subsidiaries | $ 121,444 |
Other loans | 8,998 |
Total | 130,442 |
Non-current | 82,175 |
Current | 39,269 |
Total | $ 121,444 |
Financial Instruments - Schedul
Financial Instruments - Schedule of Line of Credit Facilities (Details) $ in Thousands, $ in Thousands | Sep. 27, 2020CAD ($) | Sep. 27, 2020USD ($) | Dec. 29, 2019USD ($) |
Line of Credit Facility [Line Items] | |||
Production financing loan and other loans | $ 130,442 | $ 218,753 | |
CANADA | |||
Line of Credit Facility [Line Items] | |||
Production financing loan and other loans | $ 57,317 | ||
U.S. | |||
Line of Credit Facility [Line Items] | |||
Production financing loan and other loans | 73,125 | ||
U.S. Dollars and Canadian Dollars | |||
Line of Credit Facility [Line Items] | |||
Production financing loan and other loans | $ 130,442 |
Financial Instruments - Sched_2
Financial Instruments - Schedule of Production Financing Loan and Other Loans (Details) $ in Thousands | 9 Months Ended |
Sep. 27, 2020USD ($) | |
Production Financing | |
Production financing loans, beginning balance | $ 209,651 |
Drawdowns | 38,871 |
Repayments | (124,824) |
Foreign exchange differences | (2,254) |
Production financing loans, ending balance | 121,444 |
Other Loans | |
Other loans, beginning balance | 9,102 |
Drawdowns | 22,853 |
Repayments | (22,668) |
Foreign exchange differences | (289) |
Other loans, ending balance | 8,998 |
Production financing loan and other loans, beginning balance | 218,753 |
Drawdowns | 61,724 |
Repayments | (147,492) |
Foreign exchange differences | (2,543) |
Production financing loan and other loans, ending balance | $ 130,442 |
eOne Investments in Productio_3
eOne Investments in Productions and Investments in Acquired Content Rights - Program Production Costs (Details) $ in Thousands | Sep. 27, 2020USD ($) |
Film and TV Programming | |
Released, less amortization | $ 477,329 |
Completed and not released | 18,070 |
In production | 51,001 |
Pre-production | 41,144 |
Total film costs | 587,544 |
Other Programming | |
Released, less amortization | 11,511 |
Completed and not released | 3,421 |
In production | 9,057 |
Pre-production | 8,012 |
Other programming costs | 32,001 |
Total program costs | $ 619,545 |
eOne Investments in Productio_4
eOne Investments in Productions and Investments in Acquired Content Rights - Program Costs Amortization (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 27, 2020 | Sep. 29, 2019 | Sep. 27, 2020 | Sep. 29, 2019 | |
Product Information [Line Items] | ||||
Program cost amortization | $ 85,424 | $ 28,028 | $ 268,245 | $ 58,105 |
eOne | ||||
Product Information [Line Items] | ||||
Program cost amortization | 244,194 | |||
eOne | Production Investment | ||||
Product Information [Line Items] | ||||
Program cost amortization | 172,630 | |||
eOne | Content Investment | ||||
Product Information [Line Items] | ||||
Program cost amortization | $ 71,564 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 27, 2020 | Sep. 27, 2020 | Sep. 29, 2019 | |
Income Tax Contingency [Line Items] | |||
Effective income tax rate | 35.00% | 14.30% | |
Discrete income tax benefit | $ (13,680) | $ 5,290 | |
Income tax rate, percent | 19.00% | ||
Unrecognized tax benefits, period increase (decrease) | $ 6,332 | ||
Discrete income tax benefit, decrease in liability | $ 31,674 | ||
Share-based payments, excess tax benefits and expiration on the statue of limitation on tax positions | 24,925 | ||
Proceeds and excess tax benefit from share-based compensation | $ 6,749 | ||
eOne | |||
Income Tax Contingency [Line Items] | |||
Discrete income tax benefit | $ 25,302 | ||
Maximum | |||
Income Tax Contingency [Line Items] | |||
Income tax rate, percent | 22.50% | ||
Maximum | eOne | |||
Income Tax Contingency [Line Items] | |||
Effective income tax rate | 19.90% | ||
Minimum | |||
Income Tax Contingency [Line Items] | |||
Income tax rate, percent | 21.00% | ||
Minimum | eOne | |||
Income Tax Contingency [Line Items] | |||
Effective income tax rate | 18.20% |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Narrative (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 27, 2020USD ($)company | Jun. 28, 2020USD ($) | Sep. 29, 2019USD ($) | Sep. 27, 2020USD ($)company | Sep. 29, 2019USD ($) | Dec. 29, 2019USD ($) | |
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||||||
Proceeds from sale of investments | $ 11,470 | |||||
Number of companies quoted on an active public market | company | 1 | 1 | ||||
Redeemable period | 45 days | |||||
Minimum | ||||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||||||
Redeemable period | 30 days | |||||
Maximum | ||||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||||||
Redeemable period | 90 days | |||||
Fair Value, Recurring | ||||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||||||
Fair value of investments | $ 13,384 | $ 24,916 | $ 13,384 | $ 24,916 | $ 25,518 | |
Gain (loss) on investments | $ 1,067 | $ 566 | $ (144) | $ 1,293 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments - Fair Value Hierarchy (Details) - USD ($) $ in Thousands | Sep. 27, 2020 | Dec. 29, 2019 | Sep. 29, 2019 |
Assets: | |||
Available-for-sale securities | $ 3,682 | $ 1,296 | $ 1,148 |
Derivatives | 15,736 | 48,973 | 54,030 |
Total assets | 19,418 | 50,269 | 55,178 |
Liabilities: | |||
Derivatives | 372 | 5,733 | 11,508 |
Option agreement | 20,615 | 22,145 | 22,196 |
Total liabilities | 20,987 | 27,878 | 33,704 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Assets: | |||
Available-for-sale securities | 3,682 | 1,296 | 1,148 |
Derivatives | 0 | 0 | 0 |
Total assets | 3,682 | 1,296 | 1,148 |
Liabilities: | |||
Derivatives | 0 | 0 | 0 |
Option agreement | 0 | 0 | 0 |
Total liabilities | 0 | 0 | 0 |
Significant Other Observable Inputs (Level 2) | |||
Assets: | |||
Available-for-sale securities | 0 | 0 | 0 |
Derivatives | 15,736 | 48,973 | 54,030 |
Total assets | 15,736 | 48,973 | 54,030 |
Liabilities: | |||
Derivatives | 372 | 5,733 | 11,508 |
Option agreement | 0 | 0 | 0 |
Total liabilities | 372 | 5,733 | 11,508 |
Significant Unobservable Inputs (Level 3) | |||
Assets: | |||
Available-for-sale securities | 0 | 0 | 0 |
Derivatives | 0 | 0 | 0 |
Total assets | 0 | 0 | 0 |
Liabilities: | |||
Derivatives | 0 | 0 | 0 |
Option agreement | 20,615 | 22,145 | 22,196 |
Total liabilities | $ 20,615 | $ 22,145 | $ 22,196 |
Fair Value of Financial Instr_5
Fair Value of Financial Instruments - Reconciliation of Level 3 Fair value (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 27, 2020 | Sep. 29, 2019 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance at beginning of year | $ (22,145) | $ (23,440) |
Gain from change in fair value | 1,530 | 1,244 |
Balance at end of third quarter | $ (20,615) | $ (22,196) |
Derivative Financial Instrume_3
Derivative Financial Instruments - Summary of Cash Flow Hedging Instruments (Details) - Cash Flow Hedging - Designated as Hedging Instrument - USD ($) $ in Thousands | Sep. 27, 2020 | Dec. 29, 2019 | Sep. 29, 2019 |
Derivative [Line Items] | |||
Notional Amount | $ 542,912 | $ 543,219 | $ 649,836 |
Fair Value | 15,287 | 12,904 | 31,556 |
Inventory purchases | |||
Derivative [Line Items] | |||
Notional Amount | 315,924 | 398,800 | 420,839 |
Fair Value | 9,148 | 8,727 | 24,462 |
Sales | |||
Derivative [Line Items] | |||
Notional Amount | 111,760 | 124,920 | 212,062 |
Fair Value | 3,940 | 4,037 | 7,231 |
Production financing and other | |||
Derivative [Line Items] | |||
Notional Amount | 115,228 | 19,499 | 16,935 |
Fair Value | $ 2,199 | $ 140 | $ (137) |
Derivative Financial Instrume_4
Derivative Financial Instruments - Schedule of Foreign Currency Forward Contracts Designated as Cash Flow Hedges (Details) - Cash Flow Hedging - Designated as Hedging Instrument - USD ($) $ in Thousands | Sep. 27, 2020 | Dec. 29, 2019 | Sep. 29, 2019 |
Derivatives, Fair Value [Line Items] | |||
Net unrealized gains | $ 15,287 | $ 12,904 | $ 31,556 |
Foreign Exchange Forward | Prepaid expenses and other current assets | |||
Derivatives, Fair Value [Line Items] | |||
Unrealized gains | 13,357 | 12,133 | 22,529 |
Unrealized losses | (1,737) | (3,955) | (1,333) |
Net unrealized gains | 11,620 | 8,178 | 21,196 |
Foreign Exchange Forward | Other assets | |||
Derivatives, Fair Value [Line Items] | |||
Unrealized gains | 4,218 | 6,652 | 10,609 |
Unrealized losses | (179) | 0 | (249) |
Net unrealized gains | 4,039 | 6,652 | 10,360 |
Foreign Exchange Forward | Accrued liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Unrealized gains | 680 | 293 | 0 |
Unrealized losses | (992) | (2,219) | 0 |
Net unrealized gains | (312) | (1,926) | 0 |
Foreign Exchange Forward | Other liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Unrealized gains | 13 | 0 | 0 |
Unrealized losses | (73) | 0 | 0 |
Net unrealized gains | $ (60) | $ 0 | $ 0 |
Derivative Financial Instrume_5
Derivative Financial Instruments - Schedule of Net Gains (Losses) on Cash Flow Hedges Activities (Details) - Foreign Exchange Forward - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 27, 2020 | Sep. 29, 2019 | Sep. 27, 2020 | Sep. 29, 2019 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Other comprehensive earnings (loss), before tax | $ 9,212 | $ 6,544 | $ 20,503 | $ 12,773 |
Cost of sales | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Other comprehensive earnings (loss), before tax | 7,116 | 4,678 | 16,680 | 9,278 |
Net revenues | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Other comprehensive earnings (loss), before tax | 1,237 | 1,889 | 2,413 | 3,366 |
Other | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Other comprehensive earnings (loss), before tax | $ 859 | $ (23) | $ 1,410 | $ 129 |
Derivative Financial Instrume_6
Derivative Financial Instruments - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 27, 2020 | Sep. 29, 2019 | Sep. 27, 2020 | Sep. 29, 2019 | Dec. 29, 2019 | |
Not Designated as Hedging Instrument | Intercompany Loans | |||||
Derivative [Line Items] | |||||
Notional amount | $ 538,892 | $ 308,867 | $ 538,892 | $ 308,867 | $ 307,351 |
Not Designated as Hedging Instrument | Foreign Exchange Forward | |||||
Derivative [Line Items] | |||||
Net fair value | 77 | 2,290 | 77 | 2,290 | (3,807) |
Prepaid expenses and other current assets | Not Designated as Hedging Instrument | Foreign Exchange Forward | |||||
Derivative [Line Items] | |||||
Net fair value | 77 | 2,329 | 77 | 2,329 | $ 0 |
Fair Value Hedging | Foreign Exchange Forward | |||||
Derivative [Line Items] | |||||
Net gains to other (income) expense, net | $ (6,914) | $ 10,121 | $ (20,142) | $ 16,705 |
Derivative Financial Instrume_7
Derivative Financial Instruments - Fair Values of Undesignated Derivative Financial Instruments (Details) - Foreign Exchange Forward - Not Designated as Hedging Instrument - USD ($) $ in Thousands | Sep. 27, 2020 | Dec. 29, 2019 | Sep. 29, 2019 |
Derivatives, Fair Value [Line Items] | |||
Net unrealized gains | $ 77 | $ (3,807) | $ 2,290 |
Prepaid expenses and other current assets | |||
Derivatives, Fair Value [Line Items] | |||
Unrealized gains | 3,294 | 0 | 2,630 |
Unrealized losses | (3,217) | 0 | (301) |
Net unrealized gains | 77 | 0 | 2,329 |
Accrued liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Unrealized gains | 0 | 13 | 164 |
Unrealized losses | 0 | (3,820) | (203) |
Net unrealized gains | $ 0 | $ (3,807) | $ (39) |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 27, 2020 | Sep. 29, 2019 | Sep. 27, 2020 | Sep. 29, 2019 | |
Lessee, Lease, Description [Line Items] | ||||
Operating lease expense | $ 22,281 | $ 8,907 | $ 67,564 | $ 26,982 |
Minimum | ||||
Lessee, Lease, Description [Line Items] | ||||
Remaining lease terms | 1 year | 1 year | ||
Maximum | ||||
Lessee, Lease, Description [Line Items] | ||||
Remaining lease terms | 18 years | 18 years |
Leases - Lease Cost (Details)
Leases - Lease Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 27, 2020 | Sep. 29, 2019 | Sep. 27, 2020 | Sep. 29, 2019 | |
Leases [Abstract] | ||||
Operating cash flows from operating leases | $ 13,158 | $ 9,003 | $ 38,774 | $ 27,817 |
Right-of-use assets obtained in exchange for lease obligations, operating leases | $ 2,097 | $ 1,363 | $ 102,521 | $ 25,622 |
Weighted average remaining lease term, operating leases | 6 years 2 months 12 days | 6 years 4 months 24 days | 6 years 2 months 12 days | 6 years 4 months 24 days |
Weighted average discount rate, operating lease | 3.10% | 4.50% | 3.10% | 4.50% |
Leases - Maturities of Operatin
Leases - Maturities of Operating Lease Liabilities (Details) $ in Thousands | Sep. 27, 2020USD ($) |
Leases [Abstract] | |
2020 (excluding the six months ended September 27, 2020) | $ 12,576 |
2021 | 47,794 |
2022 | 43,660 |
2023 | 35,763 |
2024 | 24,513 |
2025 | 66,276 |
Total future lease payments | 230,582 |
Less imputed interest | 24,976 |
Present value of future operating lease payments | 205,606 |
Less current portion of operating lease liabilities | 42,814 |
Non-current operating lease liability | 162,792 |
Operating lease right-of-use assets, net | $ 189,211 |
Segment Reporting - Net Revenue
Segment Reporting - Net Revenues by Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 27, 2020 | Sep. 29, 2019 | Sep. 27, 2020 | Sep. 29, 2019 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Net revenues, external | $ 1,776,623 | $ 1,575,173 | $ 3,742,472 | $ 3,292,220 |
Net revenues, affiliate | 0 | 0 | 0 | 0 |
Corporate and Eliminations | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Net revenues, external | 0 | 0 | 0 | 0 |
Net revenues, affiliate | (439,919) | (545,201) | (915,849) | (1,104,414) |
U.S. and Canada | Operating Segments | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Net revenues, external | 977,115 | 898,269 | 1,765,482 | 1,766,649 |
Net revenues, affiliate | 5,938 | 2,535 | 12,990 | 7,379 |
International | Operating Segments | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Net revenues, external | 517,007 | 561,137 | 1,017,222 | 1,221,224 |
Net revenues, affiliate | 133 | 0 | 133 | 186 |
Entertainment, Licensing and Digital | Operating Segments | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Net revenues, external | 89,027 | 115,766 | 262,879 | 304,266 |
Net revenues, affiliate | 2,110 | 3,849 | 3,918 | 7,989 |
eOne | Operating Segments | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Net revenues, external | 193,474 | 0 | 696,889 | 0 |
Net revenues, affiliate | 0 | 0 | 0 | 0 |
Global Operations | Operating Segments | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Net revenues, external | 0 | 1 | 0 | 81 |
Net revenues, affiliate | $ 431,738 | $ 538,817 | $ 898,808 | $ 1,088,860 |
Segment Reporting - Operating P
Segment Reporting - Operating Profit (Loss) by Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 27, 2020 | Sep. 29, 2019 | Sep. 27, 2020 | Sep. 29, 2019 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Operating profit (loss) | $ 336,558 | $ 297,210 | $ 315,450 | $ 461,670 |
Corporate and Eliminations | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Operating profit (loss) | (2,901) | 618 | (61,092) | 27,573 |
U.S. and Canada | Operating Segments | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Operating profit (loss) | 262,977 | 193,686 | 359,028 | 313,795 |
International | Operating Segments | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Operating profit (loss) | 63,924 | 67,238 | 12,333 | 51,410 |
Entertainment, Licensing and Digital | Operating Segments | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Operating profit (loss) | 32,791 | 24,594 | 65,758 | 62,550 |
eOne | Operating Segments | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Operating profit (loss) | (25,914) | 0 | (64,962) | 0 |
Global Operations | Operating Segments | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Operating profit (loss) | $ 5,681 | $ 11,074 | $ 4,385 | $ 6,342 |
Segment Reporting - Total Asset
Segment Reporting - Total Assets by Segments (Details) - USD ($) $ in Thousands | Sep. 27, 2020 | Dec. 29, 2019 | Sep. 29, 2019 |
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Total assets | $ 10,703,177 | $ 8,855,628 | $ 5,554,624 |
Corporate and Eliminations | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Total assets | (5,680,530) | (901,580) | (4,458,181) |
U.S. and Canada | Operating Segments | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Total assets | 3,835,054 | 3,244,950 | 3,331,125 |
International | Operating Segments | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Total assets | 2,234,562 | 2,482,170 | 2,394,488 |
Entertainment, Licensing and Digital | Operating Segments | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Total assets | 1,162,684 | 695,898 | 1,031,906 |
eOne | Operating Segments | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Total assets | 5,686,389 | 0 | 0 |
Global Operations | Operating Segments | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Total assets | $ 3,465,018 | $ 3,334,190 | $ 3,255,286 |
Segment Reporting - Schedule of
Segment Reporting - Schedule of International Segment Net Revenues by Major Geographic Region (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 27, 2020 | Sep. 29, 2019 | Sep. 27, 2020 | Sep. 29, 2019 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net revenues | $ 1,776,623 | $ 1,575,173 | $ 3,742,472 | $ 3,292,220 |
Operating Segments | U.S. and Canada | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net revenues | 977,115 | 898,269 | 1,765,482 | 1,766,649 |
Operating Segments | Entertainment, Licensing and Digital | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net revenues | 89,027 | 115,766 | 262,879 | 304,266 |
Operating Segments | International | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net revenues | 517,007 | 561,137 | 1,017,222 | 1,221,224 |
Operating Segments | International | Europe | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net revenues | 343,179 | 319,277 | 663,100 | 673,728 |
Operating Segments | International | Latin America | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net revenues | 91,619 | 151,987 | 158,028 | 305,106 |
Operating Segments | International | Asia Pacific | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net revenues | $ 82,209 | $ 89,873 | $ 196,094 | $ 242,390 |
Segment Reporting - Net Reven_2
Segment Reporting - Net Revenues by Product Category (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 27, 2020 | Sep. 29, 2019 | Sep. 27, 2020 | Sep. 29, 2019 | |
Revenue from External Customer [Line Items] | ||||
Net revenues | $ 1,776,623 | $ 1,575,173 | $ 3,742,472 | $ 3,292,220 |
Franchise Brands | ||||
Revenue from External Customer [Line Items] | ||||
Net revenues | 807,555 | 779,659 | 1,580,878 | 1,749,948 |
Partner Brands | ||||
Revenue from External Customer [Line Items] | ||||
Net revenues | 409,214 | 427,029 | 729,772 | 812,466 |
Hasbro Gaming | ||||
Revenue from External Customer [Line Items] | ||||
Net revenues | 239,222 | 232,287 | 516,337 | 463,272 |
Emerging Brands | ||||
Revenue from External Customer [Line Items] | ||||
Net revenues | 154,965 | 136,198 | 325,101 | 266,534 |
TV/Film/Entertainment | ||||
Revenue from External Customer [Line Items] | ||||
Net revenues | $ 165,667 | $ 0 | $ 590,384 | $ 0 |
Segment Reporting - Narrative (
Segment Reporting - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 27, 2020 | Sep. 29, 2019 | Sep. 27, 2020 | Sep. 29, 2019 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Net revenues | $ 1,776,623 | $ 1,575,173 | $ 3,742,472 | $ 3,292,220 |
Gaming including Magic the Gathering and Monopoly | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Net revenues | $ 543,107 | $ 449,393 | $ 1,202,604 | $ 1,086,151 |
Restructuring Actions - Narrati
Restructuring Actions - Narrative (Details) $ in Thousands | 9 Months Ended |
Sep. 27, 2020USD ($) | |
Restructuring Charges [Abstract] | |
Pre-tax severance expense | $ 11,554 |
Restructuring Actions - Schedul
Restructuring Actions - Schedule of Restructuring and Related Costs (Details) $ in Thousands | 9 Months Ended |
Sep. 27, 2020USD ($) | |
Restructuring Cost and Reserve [Line Items] | |
Beginning balance | $ 31,113 |
Restructuring Reserve | 36,670 |
2020 restructuring charges | 32,386 |
Payments for Restructuring | (26,829) |
Ending balance | 36,670 |
2018 Restructuring Program | |
Restructuring Cost and Reserve [Line Items] | |
Beginning balance | 31,113 |
Restructuring Reserve | 13,603 |
2020 restructuring charges | 0 |
Payments for Restructuring | (17,510) |
Ending balance | 13,603 |
eOne Integration Program | |
Restructuring Cost and Reserve [Line Items] | |
Beginning balance | 0 |
Restructuring Reserve | 12,609 |
2020 restructuring charges | 20,832 |
Payments for Restructuring | (8,223) |
Ending balance | 12,609 |
Other Restructuring | |
Restructuring Cost and Reserve [Line Items] | |
Beginning balance | 0 |
Restructuring Reserve | 10,458 |
2020 restructuring charges | 11,554 |
Payments for Restructuring | (1,096) |
Ending balance | $ 10,458 |