Business Combination (Tables)

9 Months Ended

Sep. 27, 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 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