Leases

12 Months Ended

Dec. 27, 2020

Hasbro occupies offices and uses certain equipment under various operating lease arrangements. The Company has no finance leases. The leases have remaining terms of 1 to 18 years, some of which include either, 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. 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.

The rent expense under such arrangements and similar arrangements that do not qualify as leases under ASU 2016-02, net of sublease income amounted to $90,630, $68,860 and $65,181, respectively, for each of the three years ended December 27, 2020 and was not material to the Company’s financial statements nor were expenses related to short term leases (expected term less than twelve months) or variable lease payments during those same periods.

All leases expire prior to the end of 2037. Real estate taxes, insurance and maintenance expenses are generally obligations of the Company. It is expected that, in the normal course of business, leases that expire will be renewed or replaced by leases on other properties; thus, it is anticipated that future minimum lease commitments will not be less than the amounts shown for 2020.

Information related to the Company's leases for the years ended December 27, 2020 and December 29, 2019 is as follows:


	Year Ended			Year Ended
	December 27, 2020			December 29, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	50,891		$	37,653
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	20,356		$	30,573

Weighted Average Remaining Lease Term
Operating leases	6.1 years			6.2 years
Weighted Average Discount Rate
Operating leases	3.1		%	4.5		%

In addition to the Right-of-use assets obtained in exchange for lease obligations in the table above, in 2020 as part of the acquisition of eOne the Company recognized Right-of-use assets, net in the form of operating leases in the amount of $88,819.

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 December 27, 2020:


	Year Ended
	December 27, 2020
2021	$	50,461
2022	46,185
2023	38,210
2024	26,561
2025	21,519
2026 and thereafter	48,226
Total future lease payments	231,162
Less imputed interest	23,322
Present value of future operating lease payments	207,840
Less current portion of operating lease liabilities (1)	45,014
Non-current operating lease liability (2)	162,826
Operating lease right-of-use assets, net (3)	$	191,786

(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