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Pension, Postretirement and Postemployment Benefits
 12 Months Ended
Dec. 27, 2020
Retirement Benefits [Abstract]  
Pension, Postretirement and Postemployment Benefits Pension, Postretirement and Postemployment Benefits
Pension and Postretirement Benefits
The Company recognizes an asset or liability for each of its defined benefit pension plans equal to the difference between the projected benefit obligation of the plan and the fair value of the plan’s assets. Actuarial gains and losses and prior service costs that have not yet been included in income are recognized in the consolidated balance sheets in AOCE. Reclassifications to earnings from AOCE related to pension and postretirement plans are recorded to other (income) expense.
Expenses related to the Company’s defined benefit pension and defined contribution plans for 2020, 2019 and 2018 were approximately $44,700, $48,400 and $41,900, respectively. Of these amounts, $38,400, $35,100 and $32,300, respectively, related to defined contribution plans in the United States and certain international subsidiaries. The remainder of the expense relates to defined benefit pension plans discussed below.
United States Plans
Prior to 2008, substantially all United States employees were covered under at least one of several non-contributory defined benefit pension plans maintained by the Company. Benefits under the two major plans which principally covered non-union employees, were based primarily on salary and years of service. Benefits under the remaining plans are based primarily on fixed amounts for specified years of service. In 2007, for the two major plans covering its non-union employees, the Company froze benefits being accrued effective at the end of December 2007. Following the August 2015 sale of its manufacturing facility in East Longmeadow, MA, the Company elected to freeze benefits related to its major plan covering union employees. Effective January 1, 2016, the plan covering union employees merged with and into the Hasbro Inc. Pension Plan, and ceased to exist as a separate plan on that date.
In February 2018, the Compensation Committee of the Company’s Board of Directors approved a resolution to terminate the Company’s U.S. defined benefit pension plan (“U.S. Pension Plan”). During the first quarter of 2018 the Company commenced the U.S. Pension Plan termination process and received regulatory approval during the fourth quarter of 2018. During the second quarter of 2019, the Company settled all remaining benefits directly with vested participants electing a lump sum payout, and purchased a group annuity contract from Massachusetts Mutual Life Insurance Company to administer all future payments to remaining U.S. Pension Plan participants. The U.S. Pension Plan's net funded asset position was sufficient to cover the lump sum payments and the purchase of the group annuity contract and settle all other remaining benefit obligations with no additional cost to the Company.
After the settlement of the benefit obligations and payment of expenses, the Company had excess assets in the U.S. Pension Plan of approximately $20,234. The Company elected to utilize the remaining surplus after payment of administrative expenses for the Company's future matching contributions under the Company's 401(k) plan. The Company made a transfer of $19,500 to the Company’s 401(k) plan which occurred in February 2020, with the remainder to be transferred in 2021. Upon settlement of the pension liability, which occurred in May 2019, the Company recognized a non-operating settlement charge of $110,777, with an additional settlement charge of $185 in December 2019, related to pension losses, reclassified from accumulated other comprehensive loss to other (income) expense in the Company's consolidated statements of operations, adjusted for market conditions and settlement costs at benefit distribution.
During 2020, the Company merged its employee retirement agreements, which had beginning benefit liabilities of $14,796, with its remaining US pension plans.
At December 27, 2020, the measurement date, the Company's remaining plans were unfunded with an aggregate accumulated and projected benefit obligation of $46,032.    
Hasbro also provides certain postretirement health care and life insurance benefits to eligible employees who retired prior to January 1, 2020 and have either attained age 65 with 5 years of service or age 55 with 10 years of service. The cost of providing these benefits on behalf of employees who retired prior to 1993 has been substantially borne by the Company. The cost of providing benefits to all eligible employees who retire after 1992 is borne by the employee. The plan is not funded. During the fourth quarter of 2019, with the approval of the Compensation Committee of the Company's Board of Directors, the Company announced the elimination of the contributory postretirement health and life insurance coverage for employees whose retirement eligibility begins after December 31, 2019.
As of December 27, 2020, the Company had unrecognized losses related to its remaining U.S. pension and post retirement plans of $19,346.
Reconciliations of the beginning and ending balances for the projected benefit obligation, the fair value of plan assets and the funded status are included below for the years ended December 27, 2020 and December 29, 2019.
PensionPostretirement
2020201920202019
Change in Projected Benefit Obligation
Projected benefit obligation — beginning$30,971 395,718 27,443 30,081 
Service cost— 1,168 — 888 
Interest cost1,466 6,624 919 1,267 
Transfer in14,796 — — — 
Actuarial (gain) loss3,436 (8,092)3,382 6,350 
Benefits paid(4,637)(13,271)(1,797)(1,641)
Expenses paid— (3,172)— — 
Curtailment— — — (9,502)
Settlements paid— (348,004)— — 
Projected benefit obligation — ending$46,032 30,971 29,947 27,443 
Accumulated benefit obligation — ending$46,032 30,971 29,947 27,443 
Change in Plan Assets
Fair value of plan assets — beginning$— $357,224 — — 
Actual return on plan assets— 23,147 — — 
Employer contribution— 4,311 — — 
Benefits paid— (13,271)— — 
Expenses paid— (3,172)— — 
Settlements paid— (348,004)— — 
Transfers— (20,235)— — 
Fair value of plan assets — ending$— — — — 
Reconciliation of Funded Status
Projected benefit obligation$(46,032)(30,971)(29,947)(27,443)
Fair value of plan assets— — — — 
Funded status(46,032)(30,971)(29,947)(27,443)
Unrecognized net loss15,787 13,054 3,559 177 
Net amount$(30,245)(17,917)(26,388)(27,266)
Accrued liabilities$(3,232)(2,484)(1,740)(1,767)
Other liabilities(42,800)(28,487)(28,207)(25,676)
Accumulated other comprehensive (earnings) loss15,787 13,054 3,559 177 
Net amount$(30,245)(17,917)(26,388)(27,266)
Assumptions used to determine the year-end pension and postretirement benefit obligations are as follows:
20202019
Pension
Weighted average discount rate2.51 %3.30 %
Mortality tablePri-2012/Scale
MP - 2020		Pri-2012/Scale
MP - 2019
Postretirement
Discount rate2.72 %3.46 %
Health care cost trend rate assumed for next year6.25 %6.25 %
Rate to which the cost trend rate is assumed to decline (ultimate trend rate)5.00 %5.00 %
Year that the rate reaches the ultimate trend20242024
The following is a detail of the components of the net periodic benefit cost for the three years ended December 27, 2020.
202020192018
Components of Net Periodic Cost
Pension
Service cost$— 1,168 1,300 
Interest cost1,466 6,624 13,358 
Expected return on assets— (6,163)(18,475)
Amortization of prior service cost(11)(11)— 
Amortization of actuarial loss715 7,578 10,995 
Curtailment/Settlement losses— 110,962 — 
Net periodic benefit cost$2,170 120,158 7,178 
Postretirement
Service cost$— 888 756 
Interest cost919 1,267 1,171 
Amortization of actuarial loss— 21 165 
Net periodic benefit cost$919 2,176 2,092 
Assumptions used to determine net periodic benefit cost of the pension plan and postretirement plan for each fiscal year follow:
202020192018
Pension
Weighted average discount rate3.33 %3.72 %3.71 %
Long-term rate of return on plan assetsN/A4.20 %4.75 %
Postretirement
Discount rate3.46 %4.33 %3.74 %
Health care cost trend rate assumed for next year6.25 %6.25 %6.50 %
Rate to which the cost trend rate is assumed to decline (ultimate trend rate)5.00 %5.00 %5.00 %
Year that the rate reaches the ultimate trend rate202420242024
Expected benefit payments under the defined benefit pension plans (which reflects the 2019 Plan termination) and the postretirement benefit plan for the next five years subsequent to 2020 and in the aggregate for the following five years are as follows:
PensionPostretirement
2021$3,287 1,763 
20223,215 1,717 
20233,265 1,670 
20243,197 1,629 
20253,254 1,588 
2026-203014,778 7,362 
International Plans
Pension coverage for employees of Hasbro’s international subsidiaries is provided, to the extent deemed appropriate, through separate defined benefit and defined contribution plans. At December 27, 2020 and December 29, 2019, the defined benefit plans had total projected benefit obligations of $128,162 and $112,882, respectively, and fair values of plan assets of $95,244 and $84,252, respectively. Substantially all of the plan assets are invested in equity and fixed income securities. The pension expense related to these plans was $3,502, $2,113 and $2,392 in 2020, 2019 and 2018, respectively. In fiscal 2021, the Company expects amortization of $(35) of prior service costs, $1,720 of unrecognized net losses and $2 of unrecognized transition obligation to be included as a component of net periodic benefit cost.
Expected benefit payments under the international defined benefit pension plans for the five years subsequent to 2020 and in the aggregate for the five years thereafter are as follows: 2021: $2,111; 2022: $2,509; 2023: $2,655; 2024: $2,778; 2025: $2,934; and 2026 through 2030: $16,427.
Postemployment Benefits
Hasbro has several plans covering certain groups of employees, which may provide benefits to such employees following their period of active employment but prior to their retirement. These plans include certain severance plans which provide benefits to employees involuntarily terminated and certain plans which continue the Company’s health and life insurance contributions for employees who have left Hasbro’s employ under terms of its long-term disability plan.