Segment Reporting (Tables)

3 Months Ended

Mar. 31, 2024

Schedule of Information by Segment and Reconciliation to Reported Amounts

Information by segment and a reconciliation to reported amounts for the quarters ended March 31, 2024 and April 2, 2023 are as follows:


	Quarter Ended
	March 31, 2024		April 2, 2023
Net revenues:
Consumer Products	$	413.0	$	520.4
Wizards of the Coast and Digital Gaming	316.3		295.2
Entertainment	28.0		185.4
Corporate and Other	—		—
Total net revenues:	$	757.3	$	1,001.0

Intercompany revenues: (b)
Consumer Products	$	39.3	$	73.3
Wizards of the Coast and Digital Gaming	37.9		47.8
Entertainment	8.5		13.1
Corporate and Other	(85.7)		(134.2)
Total intercompany revenues:	$	—	$	—

Operating profit (loss):
Consumer Products	$	(46.9)	$	(46.0)
Wizards of the Coast and Digital Gaming	122.8		76.8
Entertainment (a)	5.8		(8.7)
Corporate and Other (a) (c)	34.5		(4.2)
Total Operating profit	116.2		17.9
Interest expense	38.5		46.3
Interest income	(8.3)		(6.0)
Other non-operating expense (income)	5.0		(1.4)
Earnings (loss) before income taxes	$	81.0	$	(21.0)

(a) 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 Corporate and Other expenses, related to these assets are made to the individual operating segments at the beginning of the year based on budgeted amounts. Any differences between actual and budgeted amounts are reflected in Corporate and Other because allocations are translated from the U.S. Dollar to local currency at budgeted rates when recorded. Corporate and Other also includes the elimination of inter-company balance sheet amounts.

(b) Amounts represent revenues from transactions with other operating segments that are included in the operating profit (loss) of the segment.

(c) Corporate and Other Operating profit (loss) includes Operational Excellence related transformation office and consulting fees of $5.2 million and $10.6 million, for the quarters ended March 31, 2024 and April 2, 2023, respectively, which are recorded within Selling, distribution and administration costs within the Consolidated Statements of Operations. Third party consultants were engaged to assist the Company in performing a comprehensive review of operations and developing a transformation plan designed to support the organization in identifying, realizing, and capturing savings through the identification of organizational initiatives intended to create efficiencies and improve business processes and operations. The consultants assisted in providing benchmark data and are currently assisting with the design of an improved operating model and supply chain function. The Company expects this consulting assistance to conclude within 2024 in line with the planning stages of the final components of the transformation plan.