Subsequent Event

12 Months Ended

Dec. 29, 2019

Subsequent Event - eOne Acquisition

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.

We believe the addition of eOne accelerates our 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 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 a rate of $1.31 USD/GBP on December 30, 2019, the cash consideration for shares outstanding was approximately $3,656,000. The Company also redeemed eOne's outstanding senior secured notes and paid off the debt outstanding under eOne's revolving credit facility, which together represent approximately $832,000 of eOne's indebtedness. The total cash consideration transferred by the Company was approximately $4,629,000.



Acquisition Consideration
eOne common shares outstanding as of December 30, 2019	498,040
Cash consideration per share	$	7.34
Total consideration for shares outstanding	3,655,614
Cash consideration for employee share based payment awards outstanding	141,286
Cash consideration for extinguishment of debt	831,602
Total cash consideration	4,628,502
Less: Employee awards to be recorded as future stock compensation expense	(41,863		)
Total consideration transferred	$	4,586,639

Because the £5.60 per share consideration is denominated in a currency other than the Company’s functional currency, the consideration was revalued on December 30, 2019, the closing date of the Acquisition, at the then-current GBP/USD spot rate.

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, (2) the issuance of 10,592 shares of common stock at a public offering price of $95.00 per share and (3) $1,000,000 in term loans provided by a Term Loan Agreement, which were borrowed on the date of closing.

Due to the limited time since the date of the acquisition, the Company's initial purchase price accounting for the eOne acquisition is incomplete and remains under review by the Company. As a result, we are unable to make disclosures required for business combinations related to pro forma revenue and earnings for the periods presented herein. In addition, as information regarding the assets and liabilities acquired as of December 30, 2019, is similarly not yet available in its entirety, we are unable to make disclosures for such assets and liabilities, and contingencies acquired or other acquisition date fair value disclosures. This information may be modified through December 27, 2020, as more information is obtained about the facts and circumstances existing at the acquisition date.