Business Combination (Tables)

6 Months Ended

Jun. 28, 2020

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 second quarter 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		35,097		294,158
Inventories	7,029		—		7,029
Other current assets	286,270		(8,100)		278,170
Property, plant and equipment (including right of use assets)	90,339		26,503		116,842
Intangible assets	1,055,249		5,505		1,060,754
Content assets - IIC and IIP	751,524		(139,881)		611,643
Other assets	183,209		(76,591)		106,618
Current portion of long-term debt	(60,533)		—		(60,533)
Accounts payable, and accrued liabilities	(772,097)		46,637		(725,460)
Long-term debt	(149,118)		—		(149,118)
Other liabilities	(262,644)		19,661		(242,983)
Noncontrolling interests	(63,541)		(1,261)		(64,802)
Estimated fair value of net assets acquired	1,508,461		(92,430)		1,416,031
Goodwill	3,079,181		92,430		3,171,611
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 six months ended June 28, 2020 is as follows:


	Six Months Ended June 28, 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	—		—	—	92,430	92,430
Foreign exchange translation	—		514	(664)	—	(150)
Balance at June 28, 2020	$	291,577	170,732	32,125	3,171,611	$	3,666,045

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 six months ended June 28, 2020 (in thousands of dollars).


	Quarter Ended		Six Months Ended
	June 28, 2020		June 28, 2020
eOne:
Net revenues	$	160,922	$	503,415
Loss before income taxes	(11,028)		(44,648)

Pursuant to Topic 805, unaudited supplemental pro forma results of operations for the quarter and six months ended June 30, 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		Six Months Ended
	June 30, 2019		June 30, 2019
Revenues	$	1,215,628	$	2,414,350
Net earnings (loss)	(42,219)		36,499
Net earnings (loss) attributable to Hasbro, Inc.	(42,621)		33,907

Net earnings (loss) per common share:
Diluted	$	(0.31)	$	0.25
Basic	$	(0.31)	$	0.25