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Segment Reporting
 12 Months Ended
Dec. 25, 2022
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 content spanning toys, games, licensed products ranging from traditional to digital, as well as film and television entertainment. In the first quarter of 2020, the Company completed its acquisition of the global independent studio, eOne and throughout 2020, the Company successfully integrated the acquired eOne business and started to achieve synergies as a combined company. During the first quarter of 2021, the Company realigned its reportable segment structure to: (1) align with changes to its business structure subsequent to the integration of eOne; and (2) reflect changes to its reporting structure and provide transparency into how operating performance is measured. The Company's three principal reportable segments are (i) Consumer Products, (ii) Wizards of the Coast and Digital Gaming, and (iii) Entertainment.
The Consumer Products segment engages in the sourcing, marketing and sales of toy and game products around the world. The Consumer Products business also promotes the Company's brands through the out-licensing of our trademarks, characters and other brand and intellectual property rights to third parties, through the sale of branded consumer products such as toys and apparel. The Wizards of the Coast and Digital Gaming business engages in the promotion of the Company's brands through the development of trading card, role-playing and digital game experiences based on Hasbro and Wizards of the Coast games. The Entertainment segment engages in the development, acquisition, production, distribution and sale of world-class entertainment content including film, scripted and unscripted television, family programming, digital content and live entertainment.
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.
Results shown for fiscal years 2022, 2021 and 2020 are not necessarily those which would be achieved if each segment was an unaffiliated business enterprise.
Reclassifications of certain prior year segment results and account balances have been made to conform to the current-year presentation. None of the segment changes impact the Company's previously reported consolidated net revenue, operating profits, net earnings or net earnings per share.
On June 29, 2021, the Company completed the sale of eOne Music. The financial results of eOne Music were recorded within the Company's Entertainment segment through the date of the closing of the sale. The assets and liabilities of eOne Music were de-consolidated as of the closing date and there are no remaining carrying amounts in the Company's Consolidated Balance Sheets as of December 26, 2021. The sale of eOne Music in 2021 did not impact the Company's previously reported 2020 net revenues, operating profit, earnings, assets or liabilities.
Information by segment and a reconciliation to reported amounts are as follows:
(In millions)Revenues
from
External
Customers		Affiliate
Revenue		Operating
Profit
(Loss)		Depreciation
and
Amortization		Capital
Additions		Total
Assets
2022
Consumer Products(a)
$3,572.5 396.7 217.3 152.5 87.0 5,757.7 
Wizards of the Coast and Digital Gaming1,325.1 172.5 538.3 14.6 52.5 2,968.7 
Entertainment(a)
959.1 57.5 22.7 43.8 6.9 6,273.3 
Corporate and Other(b)
— (626.7)(370.6)21.6 27.8 (5,703.8)
Consolidated Total$5,856.7 — 407.7 232.5 174.2 9,295.9 
2021
Consumer Products$3,981.6 465.4 401.4 112.4 73.1 4,925.5 
Wizards of the Coast and Digital Gaming1,286.6 121.6 547.0 48.5 35.1 1,585.1 
Entertainment1,152.2 61.5 (91.8)96.6 6.2 6,052.8 
Corporate and Other(b)
— (648.5)(93.3)22.6 18.3 (2,525.6)
Consolidated Total$6,420.4 — 763.3 280.1 132.7 10,037.8 
2020
Consumer Products$3,649.6 379.0 308.1 78.3 69.3 5,552.5 
Wizards of the Coast and Digital Gaming906.7 77.3 420.4 9.0 35.9 585.7 
Entertainment909.1 5.9 (141.1)138.0 6.6 6,003.0 
Corporate and Other(b)
— (462.2)(85.6)39.7 14.0 (1,322.8)
Consolidated Total$5,465.4 — 501.8 265.0 125.8 10,818.4 
(a)Beginning in 2022, the Company has allocated certain of the intangible amortization costs related to the assets acquired in the eOne Acquisition, between the Consumer Products and Entertainment segments.
(b)Certain long-term assets, including property, plant and equipment, goodwill and other intangibles, which benefit multiple operating segments, are included in both Entertainment and Corporate and Other. Allocations of certain expenses, related assets within 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 Other. Furthermore, Corporate and Other includes elimination of inter-company income statement transactions. Corporate and Other also includes the elimination of inter-company balance sheet amounts.
The following table represents consolidated Consumer Products segment net revenues by major geographic region for the three fiscal years ended December 25, 2022.
(In millions)202220212020
North America$2,064.8 2,315.9 2,116.2 
Europe899.5 1,067.7 989.2 
Asia Pacific293.4 310.1 295.6 
Latin America314.8 287.9 248.6 
Net revenues$3,572.5 3,981.6 3,649.6 
The following table represents consolidated Wizards of the Coast and Digital Gaming segment net revenues by category for the three fiscal years ended December 25, 2022:
(In millions)202220212020
Tabletop Gaming$1,067.0 950.6 659.6 
Digital and Licensed Gaming258.1 336.0 247.1 
Net revenues$1,325.1 1,286.6 906.7 
The following table represents consolidated Entertainment segment net revenues by category for the three fiscal years ended December 25, 2022.
(In millions)202220212020
Film and TV$837.6 932.5 700.5 
Family Brands79.4 132.9 86.5 
Music and Other42.1 86.8 122.1 
Net revenues$959.1 1,152.2 909.1 
The following table presents consolidated net revenues by brand portfolio for the three fiscal years ended December 25, 2022.
(In millions)202220212020
Franchise Brands (1)
$2,830.6 2,955.6 2,394.3 
Partner Brands1,052.0 1,161.0 1,079.4 
Hasbro Gaming (2)
743.3 851.4 814.8 
Emerging Brands (1)
402.1 454.7 372.2 
TV/Film/Entertainment828.7 997.7 804.7 
Net revenues$5,856.7 6,420.4 5,465.4 
(1) Effective in the first quarter of 2022, the Company moved PEPPA PIG into Franchise Brands from Emerging Brands. For comparability, the year ended December 26, 2021 net revenues have been restated to reflect the elevation of PEPPA PIG from Emerging Brands into Franchise Brands resulting in a change of $162.9 million.
(2) Hasbro’s total gaming category, including all gaming net revenues, most notably MAGIC: THE GATHERING and MONOPOLY, totaled $1,997.5 million, $2,098.9 million and $1,763.8 million for the years ended December 25, 2022, December 26, 2021 and December 27, 2020, 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 the location of the customer, while long-lived assets (property, plant and equipment, goodwill and other intangibles) are categorized based on their location.
(In millions)202220212020
Net revenues
United States$3,544.2 3,898.9 3,202.4 
International2,312.5 2,521.5 2,263.0 
$5,856.7 6,420.4 5,465.4 
Long-lived assets
United States$1,042.3 1,359.6 1,491.3 
International3,665.3 3,653.0 4,220.2 
$4,707.6 5,012.6 5,711.5 
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 tangible 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 2022 and 2021 the Company’s largest customers were Walmart, Inc. and Amazon.com, Inc. Sales to each of these customers amounted to 11% and 10%, respectively, of consolidated net revenues in 2022 and 13% and 11%, respectively, of consolidated net revenues during 2021. In 2020 sales to these customers amounted to 15% and 10%, respectively, of consolidated net revenues. Net revenues from the Company’s major customers are reported within the Consumer Products segment, Wizards of the Coast & Digital Gaming segment and the Entertainment 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. Both Marvel and Lucas are owned by The Walt Disney Company.