Income Taxes (Tables)

12 Months Ended

Dec. 25, 2022

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)	2022		2021	2020
United States	$	17.0	236.8	191.5
International	244.5		345.1	130.6
Total earnings before income taxes	$	261.5	581.9	322.1

Schedule of Income Taxes Attributable to Earnings Before Income Taxes

Income taxes attributable to earnings before income taxes are:

(In millions)	2022		2021	2020
Current
United States	$	93.8	59.5	22.3
State and local	18.0		15.4	6.2
International	76.8		42.9	37.9
	188.6		117.8	66.4
Deferred
United States	(105.7)		7.1	27.2
State and local	(16.6)		(0.3)	(10.8)
International	(7.8)		22.0	13.9
	(130.1)		28.8	30.3
Total income taxes	$	58.5	146.6	96.7

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:

	2022		2021		2020
Statutory income tax rate	21.0	%	21.0	%	21.0	%
State and local income taxes, net	1.2		1.5		2.2
Tax on international earnings	(4.0)		(1.1)		(3.5)
Domestic tax on foreign earnings	(6.5)		(1.7)		(2.7)
Change in unrecognized tax benefits	3.1		(3.4)		4.1
Change in valuation allowance	9.7		(1.6)		4.5
Share-based compensation	1.4		(0.6)		(0.4)
Research and development tax credits	(3.5)		(1.1)		(1.6)
Deferred tax rate change	—		6.5		3.6
Officers' compensation	1.9		1.9		1.4
Loss on disposition of business	1.5		3.9		—
Other, net	(3.4)		(0.1)		1.4
	22.4	%	25.2	%	30.0	%

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 25, 2022 and December 26, 2021 are:

(In millions)	2022		2021
Deferred tax assets:
Accounts receivable	$	28.8	30.8
Inventories	22.6		14.1
Loss and credit carryforwards	175.3		179.1
Operating leases	11.2		17.8
Operating expenses	29.9		29.9
Pension	9.1		16.3
Other compensation	50.7		37.3
Postretirement benefits	5.7		8.5
Interest rate hedge	4.5		4.7
Tax sharing agreement	0.3		1.5
Deferred revenue	4.4		4.0
Capitalized research and experimentation	81.2		26.1
Other	11.7		13.5
Gross deferred tax assets	435.4		383.6
Deferred tax liabilities:
Depreciation and amortization of long-lived assets	61.8		170.5
Equity method investment	14.9		13.1
Operating leases	9.3		15.1
Foreign exchange	—		13.7
Prepaid expenses	4.4		3.5
Other	15.4		12.3
Gross deferred tax liabilities	105.8		228.2
Valuation allowance	(189.8)		(171.2)
Net deferred income taxes	$	139.8	(15.8)

Schedule of Deferred Tax Assets and Liabilities by Balance Sheet Location

At December 25, 2022 and December 26, 2021, the Company’s net deferred income taxes are recorded in the consolidated balance sheets as follows:

(In millions)	2022		2021
Other assets	$	262.1	132.1
Other liabilities	(122.3)		(147.9)
Net deferred income taxes	$	139.8	(15.8)

Schedule of Unrecognized Tax Benefits Roll Forward

A reconciliation of unrecognized tax benefits, excluding potential interest and penalties, for the fiscal years ended December 25, 2022, December 26, 2021, and December 27, 2020 is as follows:

(In millions)	2022		2021	2020
Balance at beginning of year	$	50.6	67.8	36.7
Gross increases in prior period tax positions	0.9		0.6	12.7
Gross increase from acquisition	—		—	13.7
Gross decreases in prior period tax positions	(0.2)		(12.0)	—
Gross increases in current period tax positions	28.6		4.6	11.7
Decrease related to settlements with tax authorities	—		(2.7)	—
Decreases from the expiration of statute of limitations	(2.1)		(7.7)	(7.0)
Balance at end of year	$	77.8	50.6	67.8