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Segment Reporting
 12 Months Ended
Dec. 27, 2020
Segment Reporting [Abstract]  
Segment Reporting Segment Reporting
Segment and Geographic Information
Hasbro is a global play and entertainment company with a broad portfolio of brands and entertainment properties spanning toys, games, licensed products ranging from traditional to high-tech and digital, and film and television entertainment. For the periods presented in these consolidated financial statements, the Company’s segments are (i) U.S. and Canada, (ii) International, (iii) Entertainment, Licensing and Digital, (iv) eOne and (v) Global Operations. Following the eOne Acquisition on December 30, 2019, the eOne operating segment was added to the Company's existing reporting structure.
The U.S. and Canada segment includes the marketing and selling of action figures, arts and crafts and creative play products, electronic toys and related electronic interactive products, fashion and other dolls, infant products, play sets, preschool toys, plush products, sports action blasters and accessories, vehicles and toy-related specialty products, as well as traditional board games, and trading card and role-playing games primarily within the United States and Canada. Within the International segment, the Company markets and sells both toy and game products in markets outside of the U.S. and Canada, primarily in the European, Asia Pacific, and Latin and South American regions. The Company’s Entertainment, Licensing and Digital segment includes the Company’s consumer products licensing, digital gaming and Hasbro legacy movie and television entertainment operations. The eOne segment is engaged in the development, acquisition, production, financing, distribution and sale of entertainment content and is comprised of all legacy eOne operations. The Global Operations segment is responsible for sourcing finished products for the Company’s U.S. and Canada and International segments.
During the first quarter of 2019, the Company realigned its financial reporting segments to include all digital gaming businesses within the re-named Entertainment, Licensing and Digital reporting segment.  As a result of the realignment 2018 results for the U.S. and Canada and the former Entertainment and Licensing segments have been restated to reflect those changes.
Segment performance is measured at the operating profit level. Included in Corporate and eliminations are certain corporate expenses, including the elimination of intersegment transactions and certain assets benefiting more than one segment. Intersegment sales and transfers are reflected in management reports at amounts approximating cost. Certain shared costs, including global development and marketing expenses and corporate administration, are allocated to segments based upon expenses and foreign exchange rates fixed at the beginning of the year, with adjustments to actual expenses and foreign exchange rates included in Corporate and eliminations. The accounting policies of the segments are the same as those referenced in note 1.
Given the evolution and reorganization of the Company in recent years, including as a result of the acquisition of eOne, the Company plans to realign the reporting segment structure in 2021 to reflect how future operating results will be organized for decision-making purposes and for assessing the Company’s performance. This realignment is expected to integrate the eOne segment and certain legacy Hasbro segments into a new reporting segment structure. However, for the year ended December 27, 2020, management views eOne’s performance separately from the Hasbro’s legacy business.
Results shown for fiscal years 2020, 2019 and 2018 are not necessarily those which would be achieved if each segment was an unaffiliated business enterprise.
Information by segment and a reconciliation to reported amounts are as follows:
Revenues
from
External
Customers		Affiliate
Revenue		Operating
Profit
(Loss)		Depreciation
and
Amortization		Capital
Additions		Total
Assets
2020
U.S. and Canada$2,556,104 19,788 539,727 10,304 13,864 3,063,421 
International1,578,989 374 42,466 5,151 3,898 2,303,696 
Entertainment, Licensing and Digital373,854 962 92,957 7,324 24,040 693,782 
eOne956,496 975 (79,185)103,664 4,702 5,784,302 
Global Operations(a)— 1,193,831 (8,670)68,117 65,348 3,401,024 
Corporate and Eliminations(b)— (1,215,930)(85,481)70,415 13,902 (4,427,840)
Consolidated Total$5,465,443 — 501,814 264,975 125,754 10,818,385 
2019
U.S. and Canada$2,449,280 11,016 415,436 8,696 6,280 3,244,950 
International1,836,360 273 107,304 6,166 4,290 2,482,170 
Entertainment, Licensing and Digital434,467 11,466 99,686 8,342 25,718 695,898 
Global Operations(a)120 1,388,623 (7,237)81,532 73,708 3,334,190 
Corporate and Eliminations(b)— (1,411,378)36,861 76,051 23,640 (901,580)
Consolidated Total$4,720,227 — 652,050 180,787 133,636 8,855,628 
2018
U.S. and Canada$2,375,653 10,242 370,197 11,119 5,255 2,899,986 
International1,847,585 290 39,470 6,530 4,652 2,229,053 
Entertainment, Licensing and Digital356,299 15,796 29,127 4,627 26,631 620,425 
Global Operations(a)109 1,439,292 (8,415)84,759 82,912 3,197,847 
Corporate and Eliminations(b)— (1,465,620)(99,327)60,923 20,976 (3,684,323)
Consolidated Total$4,579,646 — 331,052 167,958 140,426 5,262,988 
(a)The Global Operations segment derives substantially all of its revenues, and thus its operating results, from intersegment activities.
(b)Certain long-term assets, including property, plant and equipment, goodwill and other intangibles, which benefit multiple operating segments, are included in Corporate and eliminations. Allocations of certain expenses related to these assets to the individual operating segments are done at the beginning of the year based on budgeted amounts. Any differences between actual and budgeted amounts are reflected in Corporate and eliminations. Furthermore, Corporate and eliminations includes elimination of inter-company income statement transactions. Corporate and eliminations also includes the elimination of inter-company balance sheet amounts.
The following table represents consolidated International segment net revenues by major geographic region for the three fiscal years ended December 27, 2020.
202020192018
Europe$1,045,411 1,043,217 1,046,901 
Latin America241,611 435,740 454,066 
Asia Pacific291,967 357,403 346,618 
Net revenues$1,578,989 1,836,360 1,847,585 
The following table presents consolidated net revenues by brand portfolio for the three fiscal years ended December 27, 2020.
202020192018
Franchise Brands$2,286,079 2,411,847 2,445,902 
Partner Brands1,079,355 1,220,982 987,283 
Hasbro Gaming814,798 709,750 787,692 
Emerging Brands480,371 377,648 358,769 
TV/Film/Entertainment804,840 — — 
Net revenues$5,465,443 4,720,227 4,579,646 
Hasbro’s total gaming category, including all gaming net revenues, most notably MAGIC: THE GATHERING and MONOPOLY, totaled $1,763,793, $1,528,283 and $1,443,164 for the years ended December 27, 2020, December 29, 2019 and December 30, 2018, respectively.
Information as to Hasbro’s operations in different geographical areas is presented below on the basis the Company uses to manage its business. Net revenues are categorized based on location of the customer, while long-lived assets (property, plant and equipment, goodwill and other intangibles) are categorized based on their location.
202020192018
Net revenues
United States$3,202,402 2,653,337 2,497,331 
International2,263,041 2,066,890 2,082,315 
5,465,443 4,720,227 4,579,646 
Long-lived assets
United States1,491,345 1,299,317 1,287,444 
International4,220,240 223,820 148,753 
$5,711,585 1,523,137 1,436,197 
Principal international markets include Europe, Canada, Mexico and Latin America, Australia, China and Hong Kong. Long-lived assets include property, plant and equipment, goodwill and other intangibles.
Other Information
Hasbro markets its products primarily to customers in the retail sector. Although the Company closely monitors the creditworthiness of its customers, adjusting credit policies and limits as deemed appropriate, a substantial portion of its customers’ ability to discharge amounts owed is generally dependent upon the overall retail economic environment.
In 2020 and 2019 the Company’s largest customers were Wal-Mart Stores, Inc., Amazon.com and Target Corporation. Sales to these customers amounted to 15%, 10% and 8%, respectively of consolidated net revenues in 2020 and 18%, 9% and 8%, respectively of consolidated net revenues during 2019. In 2018 the Company’s largest customers were Wal-Mart Stores, Inc. and Target Corporation. Sales to these customers amounted to 20% and 9%, respectively, of consolidated net revenues during 2018. These sales were primarily within the U.S. and Canada segment.
Hasbro purchases certain components used in its manufacturing process and certain finished products from manufacturers in the Far East. The Company’s reliance on external sources of manufacturing can be shifted, over a period of time, to alternative sources of supply for products it sells, should such changes be necessary. However, if the Company were prevented from obtaining products from a substantial number of its current Far East suppliers due to political, labor or other factors beyond its control, the Company’s operations would be disrupted, potentially for a significant period of time, while alternative sources of product were secured. The imposition of trade sanctions, tariffs, border adjustment taxes or other measures by the United States or the European Union against a class of products imported by Hasbro from, or the loss of “normal trade relations” status with, China, or other countries where we manufacture products, or other factors which increase the cost of manufacturing in China, or other countries where we manufacture products, such as higher labor costs or an appreciation in the Chinese Yuan, could significantly disrupt our operations and/or significantly increase the cost of the products which are manufactured and imported into other markets.
The Company has agreements which allow it to develop and market products based on properties owned by third parties including its license with Marvel Entertainment, LLC and Marvel Characters B.V. (together “Marvel”) and its license with Lucas Licensing Ltd. and Lucasfilm Ltd. (together “Lucas”). These licenses have multi-year terms and provide the Company with the right to market and sell designated classes of products based on Marvel’s portfolio of brands, including SPIDER-MAN and THE AVENGERS, and Lucas’s STAR WARS brand. The Company also has a license to market products with The Walt Disney Company for DISNEY PRINCESS and DISNEY FROZEN lines. Hasbro’s net revenues from these licenses can be significant in any given year based on the level of third party entertainment. In addition to DISNEY PRINCESS and DISNEY FROZEN, both Marvel and Lucas are owned by The Walt Disney Company.