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Pension, Postretirement and Postemployment Benefits
 12 Months Ended
Dec. 25, 2022
Retirement Benefits [Abstract]  
Pension, Postretirement and Postemployment Benefits Pension, Postretirement and Postemployment Benefits
Pension and Postretirement Benefits
The Company recognizes an asset or liability for each of its defined benefit pension plans equal to the difference between the projected benefit obligation of the plan and the fair value of the plan’s assets. Actuarial gains and losses and prior service costs that have not yet been included in income are recognized in the consolidated balance sheets in AOCE. Reclassifications to earnings from AOCE related to pension and postretirement plans are recorded to other (income) expense.
Expenses related to the Company’s defined benefit pension and defined contribution plans for 2022, 2021 and 2020 were approximately $45.5 million, $49.3 million and $44.7 million, respectively. Of these amounts, $39.5 million, $42.7 million and $38.4 million, respectively, related to defined contribution plans in the United States and certain international subsidiaries. The remainder of the expense relates to defined benefit pension plans discussed below.
United States Plans
Prior to 2008, substantially all United States employees were covered under at least one of several non-contributory defined benefit pension plans maintained by the Company. Benefits under the two major plans which principally covered non-union employees, were based primarily on salary and years of service. Benefits under the remaining plans are based primarily on fixed amounts for specified years of service. In 2007, for the two major plans covering its non-union employees, the Company froze benefits being accrued effective at the end of December 2007. Following the August 2015 sale of its manufacturing facility in East Longmeadow, MA, the Company elected to freeze benefits related to its major plan covering union employees. Effective January 1, 2016, the plan covering union employees merged with and into the Hasbro Inc. Pension Plan, and ceased to exist as a separate plan on that date.
In February 2018, the Compensation Committee of the Company’s Board of Directors approved a resolution to terminate the Company’s U.S. defined benefit pension plan (“U.S. Pension Plan”). During the first quarter of 2018
the Company commenced the U.S. Pension Plan termination process and received regulatory approval during the fourth quarter of 2018. During the second quarter of 2019, the Company settled all remaining benefits directly with vested participants electing a lump sum payout, and purchased a group annuity contract from Massachusetts Mutual Life Insurance Company to administer all future payments to remaining U.S. Pension Plan participants. The U.S. Pension Plan's net funded asset position was sufficient to cover the lump sum payments and the purchase of the group annuity contract and settle all other remaining benefit obligations with no additional cost to the Company. After the settlement of the benefit obligations and payment of expenses, the Company had excess assets in the U.S. Pension Plan of approximately $20.2 million. The Company elected to utilize the remaining surplus after payment of administrative expenses for the Company's future matching contributions under the Company's 401(k) plan. The Company made a transfer of $19.5 million to the Company’s 401(k) plan which occurred in February 2020, with the remainder transferred in November 2021. Upon settlement of the pension liability, which occurred in May 2019, the Company recognized a non-operating settlement charge of $110.8 million, with an additional settlement charge of $0.2 million in December 2019, related to pension losses, reclassified from accumulated other comprehensive loss to other (income) expense in the Company's consolidated statements of operations, adjusted for market conditions and settlement costs at benefit distribution.
During 2020, the Company merged its employee retirement agreements, which had beginning benefit liabilities of $14.8 million, with its remaining US pension plans.
At December 25, 2022, the measurement date, the Company's remaining plans were unfunded with an aggregate accumulated and projected benefit obligation of $30.3 million.    
The Company also provides certain postretirement health care and life insurance benefits to eligible employees who retired prior to January 1, 2020 and have either attained age 65 with 5 years of service or age 55 with 10 years of service. The cost of providing these benefits on behalf of employees who retired prior to 1993 has been substantially borne by the Company. The cost of providing benefits to all eligible employees who retire after 1992 is borne by the employee. The plan is not funded. During the fourth quarter of 2019, with the approval of the Compensation Committee of the Company's Board of Directors, the Company announced the elimination of the contributory postretirement health and life insurance coverage for employees whose retirement eligibility begins after December 31, 2019.
As of December 25, 2022, the Company had unrecognized gains related to its remaining U.S. pension and post retirement plans of $1.6 million.
Reconciliations of the beginning and ending balances for the projected benefit obligation, the fair value of plan assets and the funded status are included below for the years ended December 25, 2022 and December 26, 2021.
PensionPostretirement
(In millions)2022202120222021
Change in Projected Benefit Obligation
Projected benefit obligation — beginning$41.6 46.0 28.1 29.9 
Interest cost1.1 1.1 0.8 0.8 
Transfer in— — — — 
Actuarial (gain) loss(9.3)(1.1)(7.6)0.4 
Benefits paid(3.1)(3.1)(1.7)(1.8)
Plan amendments— — — (1.2)
Settlements paid— (1.3)— — 
Projected benefit obligation — ending$30.3 41.6 19.6 28.1 
Accumulated benefit obligation — ending$30.3 41.6 19.6 28.1 
Change in Plan Assets
Fair value of plan assets — beginning$— $— — — 
Fair value of plan assets — ending$— — — — 
Reconciliation of Funded Status
Projected benefit obligation$(30.3)(41.6)(19.6)(28.1)
Fair value of plan assets— — — — 
Funded status(30.3)(41.6)(19.6)(28.1)
Unrecognized prior service cost (credit)— — (0.9)(1.2)
Unrecognized net loss3.2 13.2 (3.8)3.9 
Net amount$(27.1)(28.4)(24.3)(25.4)
Accrued liabilities$(3.0)(3.2)(1.5)(1.6)
Other liabilities(27.3)(38.4)(18.0)(26.5)
Accumulated other comprehensive (earnings) loss3.2 13.2 (4.8)2.7 
Net amount$(27.1)(28.4)(24.3)(25.4)


Assumptions used to determine the year-end pension and postretirement benefit obligations are as follows:
20222021
Pension
Weighted average discount rate5.61 %2.91 %
Mortality tablePriH-2012/Scale
MP - 2021		PriH-2012/Scale
MP - 2021
Postretirement
Discount rate5.58 %3.03 %
Health care cost trend rate assumed for next year7.00 %6.00 %
Rate to which the cost trend rate is assumed to decline (ultimate trend rate)5.00 %5.00 %
Year that the rate reaches the ultimate trend20312025
The following presents detail of the components of the net periodic benefit cost for the three years ended December 25, 2022.
(In millions)202220212020
Components of Net Periodic Cost
Pension
Service cost$— — — 
Interest cost1.1 1.1 1.5 
Expected return on assets— — — 
Amortization of actuarial loss0.8 1.0 0.7 
Curtailment/Settlement losses— 0.5 — 
Net periodic benefit cost$1.9 2.6 2.2 
Postretirement
Interest cost0.8 0.8 0.9 
Amortization of service cost(0.3)— — 
Amortization of actuarial loss0.1 — — 
Net periodic benefit cost$0.6 0.8 0.9 
Assumptions used to determine net periodic benefit cost of the pension plan and postretirement plan for each fiscal year follow:
202220212020
Pension
Weighted average discount rate2.91 %2.51 %3.33 %
Long-term rate of return on plan assetsN/AN/AN/A
Postretirement
Discount rate3.03 %2.72 %3.46 %
Health care cost trend rate assumed for next year6.00 %6.25 %6.25 %
Rate to which the cost trend rate is assumed to decline (ultimate trend rate)5.00 %5.00 %5.00 %
Year that the rate reaches the ultimate trend rate202520252024

Expected benefit payments under the defined benefit pension plans and the postretirement benefit plan for the next five years subsequent to 2022 and in the aggregate for the following five years are as follows:
(In millions)PensionPostretirement
2023$3.1 $1.6 
20243.0 1.6 
20252.9 1.5 
20262.8 1.5 
20272.7 1.5 
2028-203212.3 6.8 
International Plans
Pension coverage for employees of Hasbro’s international subsidiaries is provided, to the extent deemed appropriate, through separate defined benefit and defined contribution plans. At December 25, 2022 and December 26, 2021, the defined benefit plans had total projected benefit obligations of $77.8 million and $121.6 million, respectively, and fair values of plan assets of $71.0 million and $94.8 million, respectively. Substantially all of the plan assets are invested in equity and fixed income securities. The pension expense related to these plans was $3.1 million, $4.0 million and $3.5 million in 2022, 2021 and 2020, respectively. In fiscal 2023, the Company expects
an immaterial amount of unrecognized net losses, amortization of prior service costs and unrecognized transition obligation to be included as a component of net periodic benefit cost.
Expected benefit payments under the international defined benefit pension plans for the five years subsequent to 2022 and in the aggregate for the five years thereafter are as follows: 2023: $2.3 million; 2024: $2.5 million; 2025: $2.6 million; 2026: $2.8 million; 2027: $3.0 million; and 2028 through 2032: $19.0 million.
Postemployment Benefits
Hasbro has several plans covering certain groups of employees, which may provide benefits to such employees following their period of active employment but prior to their retirement. These plans include certain severance plans which provide benefits to employees involuntarily terminated and certain plans which continue the Company’s health and life insurance contributions for employees who have left Hasbro’s employ under terms of its long-term disability plan.