Income Taxes (Tables)

12 Months Ended

Dec. 26, 2021

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:

(In millions)	2021		2020	2019
United States	$	236.8	191.5	250.5
International	345.1		130.6	343.8
Total earnings before income taxes	$	581.9	322.1	594.3

Schedule of Income Taxes Attributable to Earnings Before Income Taxes

Income taxes attributable to earnings before income taxes are:

(In millions)	2021		2020	2019
Current
United States	$	59.5	22.3	41.4
State and local	15.4		6.2	5.6
International	42.9		37.9	41.8
	117.8		66.4	88.8
Deferred
United States	7.1		27.2	(20.1)
State and local	(0.3)		(10.8)	(1.5)
International	22.0		13.9	6.6
	28.8		30.3	(15.0)
Total income taxes	$	146.6	96.7	73.8

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:

	2021		2020		2019
Statutory income tax rate	21.0	%	21.0	%	21.0	%
State and local income taxes, net	1.5		2.2		0.5
Tax on international earnings	(1.1)		(3.5)		(2.7)
Domestic tax on foreign earnings	(1.7)		(2.7)		(1.9)
Change in unrecognized tax benefits	(3.4)		4.1		0.6
Change in valuation allowance	(1.6)		4.5		—
Share-based compensation	(0.6)		(0.4)		(0.8)
Research and development tax credits	(1.1)		(1.6)		(0.7)
Deferred tax rate change	6.5		3.6		—
Gains on integrated hedging instruments	—		—		(4.0)
Officers' compensation	1.9		1.4		—
Loss on disposition of business	3.9		—		—
Other, net	(0.1)		1.4		0.4
	25.2	%	30.0	%	12.4	%

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 26, 2021 and December 27, 2020 are:

(In millions)	2021		2020
Deferred tax assets:
Accounts receivable	$	30.8	32.7
Inventories	14.1		14.0
Loss and credit carryforwards	175.7		221.6
Operating leases	17.8		23.1
Operating expenses	23.5		32.9
Pension	16.3		16.6
Other compensation	37.3		33.7
Postretirement benefits	8.5		7.9
Interest rate hedge	4.7		5.0
Tax sharing agreement	1.5		2.2
Deferred revenue	4.0		8.3
Other	13.5		12.0
Gross deferred tax assets	347.7		410.0
Deferred tax liabilities:
Depreciation and amortization of long-lived assets	144.5		181.2
Equity method investment	6.7		21.3
Operating leases	15.1		20.1
Foreign exchange	13.7		7.3
Prepaid expenses	3.5		3.6
Other	8.8		19.5
Gross deferred tax liabilities	192.3		253.0
Valuation allowance	(171.2)		(174.2)
Net deferred income taxes	$	(15.8)	(17.2)

Schedule of Deferred Tax Assets and Liabilities by Balance Sheet Location

At December 26, 2021 and December 27, 2020, the Company’s net deferred income taxes are recorded in the consolidated balance sheets as follows:

(In millions)	2021		2020
Other assets	132.1		137.6
Other liabilities	(147.9)		(154.8)
Net deferred income taxes	$	(15.8)	(17.2)

Schedule of Unrecognized Tax Benefits Roll Forward

A reconciliation of unrecognized tax benefits, excluding potential interest and penalties, for the fiscal years ended December 26, 2021, December 27, 2020, and December 29, 2019 is as follows:

(In millions)	2021		2020	2019
Balance at beginning of year	$	67.8	36.7	46.1
Gross increases in prior period tax positions	0.6		12.7	2.0
Gross increase from acquisition	—		13.7	—
Gross decreases in prior period tax positions	(12.0)		—	—
Gross increases in current period tax positions	4.6		11.7	4.2
Decreases related to settlements with tax authorities	(2.7)		—	(12.0)
Decreases from the expiration of statute of limitations	(7.7)		(7.0)	(3.6)
Balance at end of year	$	50.6	67.8	36.7