Goodwill

6 Months Ended

Jun. 26, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

During the first quarter of 2021, the Company realigned its financial reporting structure creating the following three principal reportable segments: Consumer Products, Wizards of the Coast and Digital Gaming and Entertainment. In our realignment, some, but not all, of our reporting units were changed. As a result of these changes, during 2021, the Company reallocated its goodwill among the revised reporting units based on the change in relative fair values of the respective reporting units.

Changes in the carrying amount of goodwill, by operating segment, for the quarters ended June 26, 2022 and June 27, 2021 are as follows:


	Consumer Products		Wizards of the Coast and Digital Gaming	Entertainment	Total
2022
Balance at December 26, 2021	$	1,584.9	307.3	1,527.4	$	3,419.6
Acquired during the period	—		64.7	—	64.7
Foreign exchange translation	(0.2)		(0.1)	(0.8)	(1.1)


Balance at June 26, 2022	$	1,584.7	371.9	1,526.6	$	3,483.2


	Consumer Products		Wizards of the Coast and Digital Gaming	Entertainment	Total
2021
Balance at December 27, 2020	$	1,385.7	53.1	2,252.9	$	3,691.7
Goodwill allocation	199.4		254.2	(453.6)	—
Foreign exchange translation	—		0.4	(0.3)	0.1
Impairment during the period	—		—	(101.8)	(101.8)
Reclass to assets held-for-sale	—		—	(169.2)	(169.2)
Balance at June 27, 2021	$	1,585.1	307.7	1,528.0	$	3,420.8

On May 19, 2022, the Company completed its acquisition of D&D Beyond for $146.3 million, which was funded with cash on hand. Based on the valuation of these assets, $64.7 million was allocated to goodwill within the Wizards of the Coast and Digital Gaming segment during the second quarter of 2022.

During the second quarter of 2021, the Company entered into a definitive agreement to sell the Entertainment One Music business ("eOne Music"). Based on the value of the net assets held by eOne Music, which included goodwill and intangible assets allocated to eOne Music as part of the acquisition of Entertainment One in December 2019 (the "eOne Acquisition"), the Company recorded a pre-tax non-cash goodwill impairment charge of $101.8 million, during the second quarter of 2021, within Loss on Assets Held for Sale in the Consolidated Statements of Operations, and within the Entertainment segment.