Income Taxes (Tables)

12 Months Ended

Dec. 27, 2020

Income Tax Disclosure [Abstract]

Schedule of Components of Earnings Before Income Taxes, Determined by Tax Jurisdiction

The components of earnings before income taxes, determined by tax jurisdiction, are as follows:

	2020		2019	2018
United States	$	191,461	250,453	6,293
International	130,601		343,757	264,109
Total earnings before income taxes	$	322,062	594,210	270,402

Schedule of Income Taxes Attributable to Earnings Before Income Taxes

Income taxes attributable to earnings before income taxes are:

	2020		2019	2018
Current
United States	$	22,279	41,355	12,805
State and local	6,080		5,528	5,644
International	37,946		41,829	42,613
	66,305		88,712	61,062
Deferred
United States	27,171		(20,139)	(4,937)
State and local	(10,847)		(1,438)	(471)
International	13,992		6,621	(5,686)
	30,316		(14,956)	(11,094)
Total income taxes	$	96,621	73,756	49,968

Schedule of Effective Income Tax Rate Reconciliation

A reconciliation of the statutory United States federal income tax rate to Hasbro’s effective income tax rate is as follows:

	2020		2019		2018
Statutory income tax rate	21.0	%	21.0	%	21.0	%
State and local income taxes, net	2.2		0.5		1.5
Tax on international earnings	(6.2)		(4.6)		(11.4)
Change in unrecognized tax benefits	4.1		0.6		(7.9)
Change in valuation allowance	4.5		—		—
Share-based compensation	(0.4)		(0.8)		(4.0)
Tax Cuts and Jobs Act of 2017	—		—		15.0
Research and development tax credits	(1.6)		(0.7)		(1.9)
Non-deductible goodwill impairment	—		—		2.0
Deferred tax rate change	3.6		—		—
Gains on integrated hedging instruments	—		(4.0)		—
Officers' compensation	1.4		—		—
Other, net	1.4		0.4		4.2
	30.0	%	12.4	%	18.5	%

Schedule of Deferred Tax Assets and Liabilities

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities at December 27, 2020 and December 29, 2019 are:

	2020		2019
Deferred tax assets:
Accounts receivable	$	32,688	26,973
Inventories	14,038		10,020
Loss and credit carryforwards	221,598		35,509
Operating leases	23,147		15,378
Operating expenses	32,912		23,124
Pension	7,905		6,206
Other compensation	33,718		27,633
Postretirement benefits	7,932		7,053
Interest rate hedge	4,996		5,202
Tax sharing agreement	2,219		3,096
Deferred revenue	8,298		5,591
Other	11,992		10,637
Gross deferred tax assets	401,443		176,422
Deferred tax liabilities:
Depreciation and amortization of long-lived assets	181,227		13,361
Equity method investment	21,328		17,674
Operating leases	20,056		11,936
Foreign exchange	7,280		58
Prepaid expenses	3,565		2,597
Other	10,993		7,741
Gross deferred tax liabilities	244,449		53,367
Valuation allowance	(174,185)		(33,260)
Net deferred income taxes	$	(17,191)	89,795

Schedule of Deferred Tax Assets and Liabilities by Balance Sheet Location

At December 27, 2020 and December 29, 2019, the Company’s net deferred income taxes are recorded in the consolidated balance sheets as follows:

	2020		2019
Other assets	137,633		92,401
Other liabilities	(154,824)		(2,606)
Net deferred income taxes	$	(17,191)	89,795

Schedule of Unrecognized Tax Benefits Roll Forward

A reconciliation of unrecognized tax benefits, excluding potential interest and penalties, for the fiscal years ended December 27, 2020, December 29, 2019, and December 30, 2018 is as follows:

	2020		2019	2018
Balance at beginning of year	$	36,651	46,074	84,244
Gross increases in prior period tax positions	12,659		2,031	4,449
Gross increase from acquisition	13,717		—	—
Gross decreases in prior period tax positions	—		—	(55,752)
Gross increases in current period tax positions	11,758		4,152	16,987
Decreases related to settlements with tax authorities	—		(12,037)	(1,102)
Decreases from the expiration of statute of limitations	(6,962)		(3,569)	(2,752)
Balance at end of year	$	67,823	36,651	46,074