10-K – 2026-02-25 – has-20251228.htm

2025 2024
Amount % Net Revenues Amount % Net Revenues
Net revenues $ 4,701.3  100.0  % $ 4,135.5  100.0  %
Costs and expenses
Cost of sales 1,296.2  27.6  % 1,179.5  28.5  %
Program cost amortization 35.8  0.8  % 49.3  1.2  %
Royalties 368.9  7.8  % 284.2  6.9  %
Product development 385.6  8.2  % 294.1  7.1  %
Advertising 316.9  6.7  % 319.5  7.7  %
Amortization of intangible assets 66.0  1.4  % 68.3  1.7  %
Impairment of goodwill
1,021.9  21.7  % —  —  %
Loss on disposal of business 25.0  0.5  % 37.4  0.9  %
Selling, distribution and administration 1,173.9  25.0  % 1,213.2  29.3  %
Total costs and expenses 4,690.2  99.8  % 3,445.5  83.3  %
Operating profit
11.1  0.2  % 690.0  16.7  %
Non-operating expense
Interest expense 163.4  3.5  % 171.2  4.1  %
Interest income (28.6) (0.6) % (47.3) (1.1) %
Other (income) expense, net
(21.7) (0.5) % 69.1  1.7  %
Total non-operating expense, net 113.1  2.4  % 193.0  4.7  %
(Loss) earnings before income taxes (102.0) (2.2) % 497.0  12.0  %
Income tax expense
216.2  4.6  % 102.6  2.5  %
Net (loss) earnings (318.2) (6.8) % 394.4  9.5  %
Net earnings attributable to noncontrolling interests 4.2  0.1  % 8.8  0.2  %
Net (loss) earnings attributable to Hasbro, Inc. $ (322.4) (6.9) % $ 385.6  9.3  %

Net (loss) earnings per common share:
Basic $ (2.30) $ 2.77 
Diluted $ (2.30) $ 2.75 

Net Revenues
Consolidated net revenues for the year ended December 28, 2025 increased 13.7% to $4,701.3 million from $4,135.5 million for the year ended December 29, 2024, primarily driven by growth of $675.6 million, or 44.7%, in the Wizards of the Coast and Digital Gaming segment. This growth was offset by a $106.3 million, or 4.2%, decrease in the Consumer Products segment, as well as a $3.5 million, or 4.4%, decrease in the Entertainment segment. Refer to the Segment Results discussion below for further details.
The following table presents net revenues expressed by brand portfolio category for 2025 and 2024:

2025 2024 % Change

Grow Brands $ 3,479.1  $ 2,797.1  24.4  %
Optimize Brands 698.2  731.5  (4.6) %
Reinvent Brands 524.0  606.9  (13.7) %
Net Revenues $ 4,701.3  $ 4,135.5  13.7  %

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Grow Brands: Our Grow Brands represent the highest margin, highest growth opportunities in categories where we see significant share and/or underlying market growth, such as MAGIC: THE GATHERING, Hasbro Gaming, PLAY-DOH, Marvel, including SPIDER-MAN and THE AVENGERS, and DUNGEONS & DRAGONS. The Grow Brands portfolio net revenues increased 24.4% in 2025 as compared to 2024. The net revenue increase primarily reflects higher net revenues from MAGIC: THE GATHERING, which had a record year, increasing $641.5 million from 2024 behind Universes Beyond sets such as Final Fantasy , Avatar: The Last Airbender, Marvel's Spider-Man , and Edges of Eternities. Growth in MAGIC: THE GATHERING was accompanied by an increase in MONOPOLY, both in the traditional games space, as well as from increased contributions from our digital licensing arrangement with Scopely, Inc. for MONOPOLY GO!, which contributed $168.0 million of revenue in 2025 compared to $112.2 million of revenue in 2024. The net revenue increase was partially offset by revenue declines from PLAY-DOH and DUNGEONS & DRAGONS.
Optimize Brands: Optimize Brands represent opportunities to maintain or grow share while improving operating profit returns, including brands such as TRANSFORMERS, PEPPA PIG, and Lucasfilms' STAR WARS. The Optimize Brands portfolio net revenues decreased 4.6% in 2025 as compared to 2024. During 2025, Optimize Brands net revenue decreases were driven by lower net revenues from the Company's products for STAR WARS, impacted by a reduced slate of entertainment releases, along with declines from PEPPA PIG and BABY ALIVE. The net revenue decrease was partially offset by continued growth in TRANSFORMERS and DUEL MASTERS.
Reinvent Brands: Reinvent Brands represent opportunities to reinvent or restructure to drive innovation and improve operating profit returns and include those brands such as NERF, BEYBLADE, PJ MASKS, POWER RANGERS, and FURBY. The Reinvent Brands net revenues decreased 13.7% in 2025 as compared to 2024 primarily driven by lower net revenues from NERF, which were partially offset by revenue contributions from BEYBLADE. In addition, Reinvent Brands net revenues were also negatively impacted by the lapping of prior year's licensing revenues for MY LITTLE PONY trading cards, which directly resulted in a decrease of $40.5 million, or 47.0%, year-over-year.

OPERATING COSTS AND EXPENSES
Cost of Sales: Cost of sales primarily consists of purchased materials, labor, manufacturing overhead and other inventory-related costs such as obsolescence. Cost of sales increased 9.9% to $1,296.2 million, or 27.6% of net revenues, for 2025 compared to $1,179.5 million, or 28.5% of net revenues, for 2024. The Cost of sales increase in dollars was driven primarily by sales volumes and a $26.7 million benefit recorded during 2024 related to a historical over-accrual of vendor commitment liabilities as discussed in Note 1, Summary of Significant Accounting Policies, in our notes to consolidated financial statements. Additionally, Cost of sales for 2025 includes $44.9 million of tariff costs. These factors were offset by supply chain productivity and cost savings initiatives.
Program Cost Amortization: Program cost amortization totaled $35.8 million, or 0.8% of net revenues in 2025, compared to $49.3 million, or 1.2% of net revenues in 2024. The majority of the Company's program costs are capitalized as incurred and amortized using the individual-film-forecast method. Program cost amortization reflects both the phasing of revenues associated with films and television programming, as well as the type of content being produced and distributed. The decrease in dollars and as a percent of net revenues during 2025 was driven by reduced content spend.
Royalties: Royalties totaled $368.9 million, or 7.8% of net revenues, in 2025 compared to $284.2 million, or 6.9% of net revenues, in 2024. Fluctuations in royalty expense generally relate to the volume of entertainment-driven products sold in a given period, especially if the Company is selling product tied to one or more major motion picture releases in the period, as well as product mix for our toy, game, and trading card products that utilize partner IP. The increase in Royalties in dollars and as a percent of net revenues during 2025 directly reflects the impact of increased sales relating to MAGIC: THE GATHERING Universes Beyond sets, such as Final Fantasy, Avatar: The Last Airbender and Marvel's Spider-Man , for which the Company is obligated to pay a royalty.
Product Development: Product development expense in 2025 totaled $385.6 million, or 8.2% of net revenues, compared to $294.1 million, or 7.1% of net revenues, in 2024. Product development expenditures reflect the Company’s investment in innovation and anticipated growth across our brand portfolio. The increase in Product development expense during 2025 was driven by incremental investments in the development of digital game titles that have not yet met technological feasibility.
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Advertising: Advertising expense in 2025 totaled $316.9 million, or 6.7% of net revenues, compared to $319.5 million or 7.7% of net revenues in 2024. The level of the Company’s advertising expense is generally impacted by revenue mix, as well as the amount and type of theatrical releases and television programming delivered. The Advertising expense decrease during 2025 was primarily driven by the Consumer Products segment, which decreased $30.3 million , as the Company sought measures to reduce variable expenses to offset the operating profit impact of tariffs. The reduction in Consumer Products spend was offset by additional spend necessary to support top line growth opportunities within the Grow Brands category, specifically an increase of $28.8 million within the Wizards of the Coast and Digital Gaming segment.
Amortization of Intangible Assets: Amortization of intangible assets remained relatively flat at $66.0 million, or 1.4% of net revenues, in 2025 compared to $68.3 million, or 1.7% of net revenues, in 2024. The amortization expense was driven by the straight-line amortization of the Company's remaining definite-lived intangible assets.
Impairment of Goodwill: During 2025, the Company recorded a $1,021.9 million non-cash goodwill impairment charge associated with goodwill assigned to reporting units within the Company's Consumer Products segment. There were no goodwill impairment charges during 2024. Refer to Note 8, Goodwill and Intangible Assets, in our notes to consolidated financial statements for further details.
Loss on Disposal of Business: Loss on disposal of business decreased to $25.0 million, or 0.5% of net revenues, in 2025 compared to $37.4 million, or 0.9% of net revenues, in 2024. The Loss on disposal of business for both periods represents the loss recognized associated with the divestiture of the Company's non-core film and TV business (the "eOne Film and TV business") within the Entertainment segment. Refer to Note 3, Sale of Entertainment One Film and TV Business, in our notes to consolidated financial statements for additional information on the sale of the eOne Film and TV business.
Selling, Distribution and Administration Expenses: Selling, distribution and administration expenses decreased to $1,173.9 million, or 25.0% of net revenues in 2025, from $1,213.2 million, or 29.3% of net revenues, in 2024. The decrease in Selling, distribution and administration expenses during 2025 compared to 2024 primarily reflects lower administrative expenses due to cost savings initiatives, along with a non-recurring $31.1 million expense related to historical environmental exposures recorded during 2024, partially offset by a non-recurring stock-compensation adjustment of $18.1 million recorded during 2024, as discussed in Note 1, Summary of Significant Accounting Policies, in our notes to consolidated financial statements.

NON-OPERATING EXPENSE
Interest Expense: Interest expense totaled $163.4 million in 2025 compared to $171.2 million in 2024. The decrease in Interest expense in 2025 primarily reflects lower average outstanding borrowings in 2025 as compared to 2024. These decreases were partially offset by a higher average interest rate on the outstanding borrowings.
Interest Income: Interest income was $28.6 million in 2025 compared to $47.3 million in 2024. Lower Interest income in 2025 primarily reflects earnings on the Company's investments in U.S. Treasury bills, which were substantially higher in 2024 when compared to 2025.
Other (income) expense, Net: Other income, net was $21.7 million in 2025 compared to other expense of $69.1 million in 2024. Other (income) expense, net in 2024 was impacted by an impairment loss of $78.2 million related to our joint venture investment in the Discovery Family Channel as discussed in Note 9, Equity Method Investment, in our notes to consolidated financial statements. The remainder of the change in Other (income) expense, net was primarily driven by foreign currency exchange gains and losses experienced during 2025 as compared to those experienced during 2024.
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INCOME TAXES
Income tax expense totaled $216.2 million on pre-tax loss of $102.0 million during 2025 compared to income tax expense of $102.6 million on pre-tax income of $497.0 million during 2024. Both periods were impacted by discrete tax events. During 2025, the Company recorded a non-cash goodwill impairment within the Consumer Products segment of $1,021.9 million with an associated tax benefit of $5.4 million and an unfavorable adjustment to Loss on disposal of the eOne Film and TV business of $25.0 million with no associated tax benefit. For 2024, the Company had a $37.4 million unfavorable adjustment to Loss on disposal of the eOne Film and TV business with no associated tax benefit.
The effective tax rates for 2025 and 2024 were (212.1)% and 20.7%, respectively. The change in the effective rate from 2024 to 2025 is primarily driven by the non-cash impairment of goodwill with no material tax benefit.
Exclusive of the impairment of goodwill and the unfavorable adjustment to the Loss on disposal of the eOne Film and TV business, the Company recorded a net discrete tax expense of $2.3 million compared to a net discrete tax benefit of $13.1 million during 2024. The net discrete tax expense recorded in 2025 is primarily associated with net valuation allowances recorded during the year. The net discrete tax benefit recorded in 2024 is primarily associated with a benefit from the release of uncertain tax positions for certain statute of limitation expirations, and favorable return to provision adjustments.
We previously considered the earnings in our non-U.S. subsidiaries to be indefinitely reinvested and, accordingly, recorded no deferred income taxes. The Company still has significant cash needs outside the United States and continues to consistently monitor and analyze its global working capital and cash requirements. However, we intend to repatriate substantially all of our accumulated foreign earnings when appropriate. As of December 28, 2025, we have recorded $5.3 million of foreign withholding and U.S. state income tax liability. The Company will continue to record additional tax effects, if any, in the period that the ongoing distribution analysis is completed and is able to make reasonable estimates.
We are subject to income and other taxes in the U.S. (federal and state) and foreign jurisdictions. Changes to these laws or regulations may impact our tax liabilities. On July 4, 2025, the One Big Beautiful Bill Act ("OBBBA") was signed into law with certain provisions effective in 2025 and other provisions becoming effective in 2026. The OBBBA provisions include the restoration of full expensing for domestic research and development expenses, reinstatement of accelerated depreciation on qualified capital expenditures, and modifications to the international tax framework, among other items. The OBBBA also provides for an election to accelerate the deduction of the remaining unamortized domestic research and development expenses capitalized previously. For fiscal year 2025, the primary impact of the OBBBA to the Company was the accelerated expensing of domestic research and development costs which decreased our income eligible for foreign-derived intangible income ("FDII"), reduced our deferred tax assets, and reduced our current income tax liability. Other OBBBA changes did not have a material impact on the Company's consolidated financial statements in the current year, we are assessing the impact of OBBBA on the consolidated financial statements for future periods.
As a global company, we review changes in all global tax laws. In 2025 and 2024 no changes, other than those discussed above, materially impacted our Consolidated Financial Statements.

SEGMENT RESULTS
The summary that follows provides a discussion of the results of operations of our segments: Wizards of the Coast & Digital Gaming, Consumer Products and Entertainment. Corporate and Other, which does not meet the criteria to be an operating segment, provides management and administrative services to the Company's principal reporting segments and consists of unallocated corporate expenses and administrative costs and activities not considered when evaluating segment performance as well as certain assets benefiting more than one segment.
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The following table presents net external revenues and operating profit (loss) for the Company's reportable segments for 2025 and 2024:

2025 2024 % Change

Net revenues:
Wizards of the Coast and Digital Gaming $ 2,186.9  $ 1,511.3  44.7  %
Consumer Products 2,437.6  2,543.9  (4.2) %
Entertainment 76.8  80.3  (4.4) %
Total net revenues $ 4,701.3  $ 4,135.5  13.7  %

Operating profit (loss):

Wizards of the Coast and Digital Gaming $ 1,006.8  $ 632.0  59.3  %
Consumer Products (1)
(942.6) 115.3  NM
Entertainment (1)
0.4  (1.6) NM
Corporate and Other (53.5) (55.7) 3.9  %
Total operating profit
$ 11.1  $ 690.0  (98.4) %

(1) % Change is not meaningful ("NM") for these segments.

Wizards of the Coast and Digital Gaming Segment
The following table presents Wizards of the Coast and Digital Gaming segment net revenues by category for 2025 and 2024:

2025 2024 % Change

Tabletop Gaming $ 1,686.6  $ 1,039.6  62.2  %
Digital and Licensed Gaming 500.3  471.7  6.1  %
Net Revenues $ 2,186.9  $ 1,511.3  44.7  %

Wizards of the Coast and Digital Gaming segment net revenues increased 44.7% in 2025 compared to 2024. Tabletop Gaming revenue increased 62.2% behind growth of $638.2 million in MAGIC: THE GATHERING, primarily due to strong demand for Universes Beyond sets such as Final Fantasy, Marvel's Spider-Man, and Avatar: The Last Airbender as well as various backlist titles. Digital and Licensed Gaming increased 6.1% due to strong results for MONOPOLY GO!, which contributed $168.0 million of revenue in 2025 compared to $112.2 million of revenue in 2024.
Wizards of the Coast and Digital Gaming segment operating profit increased $374.8 million to $1,006.8 million in 2025, compared to $632.0 million in 2024. The increase in operating profit in dollars is directly attributable to the revenue growth as discussed above. Segment operating profit margin increased to 46.0% in 2025 from 41.8% in 2024, primarily driven by increased net revenue and product mix in 2025 as compared to 2024.

Consumer Products Segment
The following table presents the Consumer Products segment net revenues by major geographic region for 2025 and 2024:

2025 2024 % Change

North America $ 1,421.7  $ 1,493.0  (4.8) %
Europe 566.0  519.7  8.9  %
Asia Pacific 249.4  286.7  (13.0) %
Latin America 200.5  244.5  (18.0) %
Net Revenues $ 2,437.6  $ 2,543.9  (4.2) %

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Consumer Products segment net revenues decreased 4.2% in 2025 compared to 2024 primarily driven by reduced sales volumes, which was impacted by broader industry trends and tariff-related impacts to North America, partially offset by strong performance in Europe. While the Company had growth in brands such as BEYBLADE, MARVEL, MONOPOLY, and TRANSFORMERS, the growth was more than offset by lower net revenue for brands such as NERF, MY LITTLE PONY, and PLAY-DOH. The decline associated with MY LITTLE PONY was attributed to the lapping of 2024 licensing revenue related to MY LITTLE PONY trading cards, which resulted in a decrease of $40.5 million, or 47.0%, year-over-year.
Consumer Products segment operating results decreased $1,057.9 million to an operating loss of $942.6 million in 2025, compared to operating profit of $115.3 million in 2024. Operating profit margin decreased to (38.7)% of net revenues in 2025 from an operating margin of 4.5% of net revenues in 2024. The decrease in operating profit in 2025 in both dollars and percent was driven by the declines in revenue, discussed above, a non-cash goodwill impairment charge of $1,021.9 million recorded in 2025, and approximately $44.9 million of tariff costs recognized in Cost of sales. The declines were partially offset by savings realized from the Company's cost savings and transformation initiatives. Refer to Note 8, Goodwill and Intangible Assets, in our notes to consolidated financial statements for further details related to goodwill.

Entertainment Segment
The following table presents Entertainment segment net revenues by category for 2025 and 2024:

2025 2024 % Change

Family Brands $ 66.7  $ 73.7  (9.5) %
Film and TV 10.1  6.6  53.0  %
Net Revenues $ 76.8  $ 80.3  (4.4) %

Entertainment segment net revenues decreased 4.4% in 2025 compared to 2024, primarily driven by the timing of entertainment streaming renewals.
Entertainment segment operating profit increased to $0.4 million, compared to an operating loss of $1.6 million in 2024. The increase in Entertainment segment operating results was driven by a decrease of $12.4 million in Loss on disposal of business related to the sale of the eOne Film and TV business in 2025 as compared to 2024. Refer to Note 3, Sale of Entertainment One Film and TV Business, to the notes to consolidated financial statements for further details. The favorability was offset by lower segment net revenues due the timing of entertainment streaming renewals and a decrease of $16.2 million in royalty income allocated to the Entertainment segment driven by the decrease in sales volumes within the Consumer Products segment, partially offset by $13.5 million of lower program cost amortization.

Corporate and Other
In Corporate and Other, the operating losses were $53.5 million in 2025 compared to operating losses of $55.7 million in 2024. Operating losses in 2025 were lower than 2024, primarily due to net realized cost savings initiatives more than offsetting three prior period non-recurring adjustments recorded during 2024 that provided a combined income statement benefit of approximately $13.7 million. Refer to Note 1, Summary of Significant Accounting Policies, to the notes to consolidated financial statements for further details on the non-recurring adjustments.
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Critical Accounting Policies and Significant Estimates
The Company prepares its consolidated financial statements in accordance with accounting principles generally accepted in the United States of America. As such, management is required to make certain estimates, judgments and assumptions that it believes are reasonable based on information available. These estimates and assumptions affect the reported amounts of assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses for the periods presented. The critical accounting policies which management believes are the most critical to aid in fully understanding and evaluating the Company’s reported financial results include the recoverability of goodwill and intangible assets and income taxes.
Recoverability of Goodwill and Intangible Assets
Goodwill and other intangible assets include the cost of the acquired business in excess of the fair value of the tangible net assets recorded in connection with each acquisition. We assess goodwill and other intangible assets with indefinite lives for impairment each year, or more frequently if events or changes in circumstances indicate an asset may be impaired. For goodwill and indefinite-lived intangible assets, our policy is to assess for impairment as of the beginning of each fiscal fourth quarter. The Company may perform a qualitative assessment and bypass the quantitative impairment testing process, if it is not more likely than not that the carrying value of a reporting unit exceeds its fair value. For other intangible assets with definite lives, we assess for impairment only if events occur that indicate that the carrying amount of an asset may not be recoverable.
The quantitative test of goodwill for impairment requires us to estimate the fair value of our reporting units. We test goodwill at the reporting unit level, which we define as one level below the operating segment. Our reporting units are aligned with our product lines that are separately managed and reviewed. As a result of the estimated impact of tariffs and other macroeconomic headwinds on the Company's forward-looking forecasts, in the second quarter of 2025, we performed a quantitative impairment test for certain of our reporting units within the Consumer Products and Entertainment segments. The reporting units within the Consumer Products segment subject to the quantitative test included North America, Europe, Asia Pacific, and Latin America, as well as the Family Brands reporting unit within the Entertainment segment. We have concluded that the North America, Europe, Asia Pacific, and Latin America reporting units have similar economic characteristics and should be aggregated for purposes of testing goodwill for impairment. Our conclusion was based on a detailed analysis of the aggregation criteria set forth in the Financial Accounting Standards Board ("FASB") Accounting Standard Codification ("ASC") Topic 280, Segment Reporting , and in FASB ASC Topic 350, Intangibles - Goodwill and Other . These reporting units serve similar clients and have similar products, including similar sourcing and distribution methods and they have similar economic characteristics.
We determined that the carrying values of our regional Consumer Products reporting units, when aggregated during the second quarter of 2025 based upon similar economic characteristics, exceeded their respective fair values and recorded aggregate pre-tax non-cash impairment charges of $1,021.9 million. Specifically, the fair values of North America and Europe reporting units were determined considering a discounted cash flow model which is primarily based on management’s future revenue and cost estimates, which included the estimated impact of tariff policies in effect and the related macroeconomic environment, and discount rate. The fair values of the Asia Pacific and Latin America reporting units were determined considering a discounted cash flow model weighted equally with the market approach which is primarily based on multiples of comparable public companies.
The fair value of our Family Brands reporting unit, within the Entertainment segment, exceeded the carrying value of that reporting unit by approximately 15%. As of December 28, 2025, $325.2 million of goodwill is allocated to the Family Brands reporting unit. The fair value of the Family Brands reporting unit was determined considering a discounted cash flow model weighted equally with the market approach which is primarily based on multiples of comparable public companies. Management closely monitors the operating results of all reporting units in addition to macroeconomic conditions and trade policy developments. Further volatility of trade, geopolitical tensions, or negative global economic developments could cause significant further decreases in the operating results of our reporting units, which may result in a recognition of a goodwill impairment that could be material to the consolidated financial statements in future periods.
Critical assumptions used in the determination of the reporting units’ fair value included management’s estimated future revenue growth rates, estimated future margins, and discount rate. Estimated future revenue growth and margins are based on management’s best estimate about current and future conditions. During the second quarter of 2025, the regional consumer products reporting units included discount rates ranging from 10.5% to 14.0% and a terminal value revenue growth rate of 3.0%. Additionally, the forecasted growth in operating profit margins towards the terminal value operating profit is aligned with industry averages. For the Family Brands reporting unit, critical assumptions included a discount rate approximating 9.5%, a terminal value revenue growth rate of 3.0%, and a
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terminal operating profit margin consistent with levels achieved in recent historical periods when excluding one-time impairment and disposal charges. Although we believe the assumptions and estimates made were reasonable and appropriate, these estimates are based on a number of factors including historical experience and information obtained from reporting unit management. Actual results could differ from these estimates, especially given uncertainty related to tariffs, global trade policy, and global macroeconomic conditions. We determined the discount rate using our weighted average cost of capital adjusted for risk factors specific to the reporting unit, with comparison to market and industry data.
Further, during the second quarter of 2025, we proceeded to perform sensitivities in our impairment testing of the Family Brands reporting unit by (i) increasing the discount rate 250 basis points, (ii) decreasing the expected long-term growth rate 750 basis points, (iii) decreasing the annual revenue projections 400 basis points, and (iv) decreasing projected gross margins 1,000 basis points. None of these sensitivities individually would have resulted in a conclusion that the goodwill in our Family Brands reporting unit was impaired.
The annual fiscal year 2025 assessment for impairment of goodwill, with respect to each of its reporting units, was performed using a qualitative approach to determine whether it was more likely than not that the fair value of goodwill was less than its carrying value. In performing the qualitative assessment, we identified and considered the significance of relevant key factors, events, and circumstances that affect the fair value of goodwill. These factors include external factors such as macroeconomic, industry, and market conditions, as well as entity-specific factors, such as actual and planned financial performance. Based on our qualitative fiscal year 2025 annual impairment analysis for goodwill, we concluded that it is more likely than not that the fair value of goodwill exceeded its carrying value. Refer to Note 8, Goodwill and Intangible Assets, in our notes to consolidated financial statements for more information on the Company's goodwill.
Our fiscal year 2025 assessment for impairment of indefinite-lived intangible assets was based on a relief from royalty method, including key assumptions such as the long-term growth rates of future revenues, the royalty rate for such revenues, and a discount rate. The fair value of each intangible asset is determined for comparison to the corresponding carrying value. If the carrying value of the asset exceeds its fair value, an impairment loss is recognized in an amount equal to the excess. Based on our fiscal year 2025 annual impairment analysis for indefinite-lived intangible assets, we concluded that the fair value of our indefinite-lived intangible asset exceeded their respective carrying values by substantial margins.
Intangible assets, other than those with indefinite lives, are reviewed for indications of impairment whenever events or changes in circumstances indicate the carrying value may not be recoverable. During 2025, there were no triggering events which would indicate the Company's intangible assets were impaired.
Income Taxes
The Company’s annual income tax rate is based on its income, statutory tax rates, changes in prior tax positions and tax planning opportunities available in the various jurisdictions in which it operates. Significant judgment and estimates are required to determine the Company’s annual tax rate and evaluate its tax positions. Despite the Company’s belief that its tax return positions are fully supportable, these positions are subject to challenge and estimated liabilities are established to account for events in which these positions are challenged, and the Company is not successful in defending those challenges. These estimated liabilities, as well as the related interest, are adjusted in light of changing facts and circumstances such as the progress of a tax audit.
In certain cases, tax law requires items to be included in the Company’s income tax returns at a different time than when these items are recognized in the consolidated financial statements or at a different amount than that which is recognized in the consolidated financial statements. Some of these differences are permanent, such as expenses that are not deductible on the Company’s tax returns, while other differences are temporary and will reverse over time, such as depreciation expense. The differences that will reverse over time are recorded as deferred tax assets and liabilities on the consolidated balance sheets. Deferred tax assets represent deductions that have been reflected in the consolidated financial statements but have not yet been reflected in the Company’s income tax returns. Valuation allowances are established against deferred tax assets to the extent that it is determined that the Company will have insufficient future taxable income, including capital gains, to fully realize the future deductions or capital losses. Deferred tax liabilities represent expenses recognized on the Company’s income tax return that have not yet been recognized in the Company’s consolidated financial statements or income recognized in the consolidated financial statements that has not yet been recognized in the Company’s income tax return.
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NEW ACCOUNTING PRONOUNCEMENTS
For a discussion of recent accounting pronouncements and a discussion of the Company's significant accounting policies refer to Note 1, Summary of Significant Accounting Policies, in our notes to consolidated financial statements.

LIQUIDITY AND CAPITAL RESOURCES
The Company has historically generated a significant amount of cash from operations. The Company has primarily funded its operations and liquidity needs through cash on hand and from cash flows from operations, and when needed, used commercial paper and borrowings under its available lines of credit. As of December 28, 2025, the Company had $776.6 million of Cash and cash equivalents, $105.4 million of Short-term investments and $3,281.9 million of total long-term debt.
The Company may issue debt or equity securities from time to time, to provide additional sources of liquidity when pursuing opportunities to enhance its long-term competitive position, while maintaining a strong balance sheet. However, unexpected events or circumstances such as material operating losses or increased capital or other expenditures, or the inability to otherwise access the commercial paper market, may reduce or eliminate the availability of external financial resources. In addition, significant disruptions to credit markets may also reduce or eliminate the availability of external financial resources. Although the Company believes the risk of nonperformance by the counterparties to its financial facilities is not significant, in times of severe economic downturn in the credit markets, it is possible that one or more sources of external financing may be unable or unwilling to provide funding to the Company.
The impact of tariffs recognized by the Company in Cost of sales was approximately $44.9 million during 2025. Significant changes in trade policy announced by the U.S. government could adversely impact our forward-looking financial results, including the timing and extent of cash flows based upon timing in customer buying patterns and changes in our supply chain sourcing strategies.
Indebtedness and Credit Facilities
As of December 28, 2025, the Company had $3,281.9 million of debt due at varying times from 2026 through 2044. The Company's third amended and restated revolving credit agreement with Bank of America, N.A. maturing September 5, 2028 (the "Amended Revolving Credit Agreement"), provides the Company with a maximum aggregate principal amount of $1.25 billion and also provides for a potential additional incremental commitment increase of up to $500.0 million subject to agreement of the lenders. The Amended Revolving Credit Agreement contains certain financial covenants setting forth leverage and coverage requirements, and certain other limitations typical of an investment grade facility, including with respect to liens, mergers and incurrence of indebtedness. The Company was in compliance with all covenants as of December 28, 2025. The Company had no borrowings outstanding under its committed revolving credit facility as of December 28, 2025. However, letters of credit outstanding under this facility were approximately $3.3 million. Amounts available and unused under the committed line, as of December 28, 2025 were approximately $1.25 billion, inclusive of borrowings under the Company’s commercial paper program. On February 20, 2026, the Company amended and restated the Amended Revolving Credit Agreement which extended the maturity date through February 2031 and reduced the aggregate principal amount to $1.1 billion, with the potential for an incremental commitment increase of up to $550.0 million. The Company also has other uncommitted lines from various banks, of which approximately $8.4 million was utilized in the form of letters of credit, on December 28, 2025.
In June 2025, the Company entered into a money market line of credit agreement (the “Money Market Credit Facility”) to provide the Company with access to uncommitted, short-term cash advances with an aggregate principal amount of up to $100.0 million. The Money Market Credit Facility is intended to support the Company’s short-term liquidity needs, including working capital and general corporate purposes. As of December 28, 2025, the Company did not have any outstanding credit under the Money Market Credit Facility. Refer to Note 12, Long-Term Debt and Other Financing, to the consolidated financial statements for further information.
The Company has a supplier finance program which provides participating suppliers the option of receiving payment in advance of an invoice due date, to be paid by certain administering banks, on the basis of invoices that the Company has confirmed as valid and approved. The Company’s obligation is to make payment in the invoice amount negotiated with participating suppliers, to the administering banks on the invoice due date. The Company’s suppliers are not required to participate in the supplier finance program. The early payment transactions between the Company’s supplier and the administering bank are subject to an agreement between those parties, and the Company does not participate in any financial aspect of the agreements between the Company’s suppliers and the administering banks. The Company has not pledged any assets to the administering bank under the supplier
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financing program. The Company or the administering bank may terminate the agreement upon at least 30 days’ written notice. The amount of obligations confirmed under the supplier finance program that remain unpaid were $45.7 million, and $66.2 million as of December 28, 2025 and December 29, 2024, respectively. These obligations are presented within Accounts payable in the Company's Consolidated Balance Sheets. The activity related to this program is reflected within the operating activities section of the Consolidated Statements of Cash Flows.
From time to time, the Company or its affiliates may seek to retire or purchase outstanding debt through cash purchases, in open-market purchases, privately negotiated transactions or otherwise. Such repurchases, if any, will be upon such terms and at such prices as we may determine, and will depend on prevailing market conditions, our liquidity requirements, contractual restrictions and other factors. During 2025, the Company repurchased $119.9 million in aggregate principal of its 2026 and 2027 Notes.
Refer to Note 12, Long-Term Debt and Other Financing, in our notes to consolidated financial statements for additional information on outstanding long-term debt and credit facilities.

Cash Flow
The following table presents the cash flow activities for 2025 and 2024:

Net cash provided (utilized) by:
2025 2024
Operating activities
$ 893.2  $ 847.4 
Investing activities
(284.4) (203.7)
Financing activities
(531.3) (497.5)
Effect of exchange rate changes on cash 4.1  3.4 
Increase in cash, cash equivalents and restricted cash $ 81.6  $ 149.6 

Operating Activities:
Cash flows provided by operating activities were $893.2 million in 2025 as compared to $847.4 million in 2024. The net earnings after adjusting for non-cash items increased to $1,213.5 million in 2025 compared to $787.9 million in 2024. The changes in operating assets and liabilities yielded a net outflow of $320.3 million compared to an inflow of $59.5 million primarily attributable to an increase in Accounts receivable in 2025 compared to a decrease in Accounts Receivable in 2024, which is primarily the result of an overall net revenue increase. The change in Accounts Receivable is coupled with a change in inventory purchases, which have increased period over period as the result of a strategic decision to build increased flexibility to better match product demand during higher seasonal periods, along with the impact of tariffs. Operating cash flow was also impacted by the timing and magnitude of tax payments, including the payment of the net deemed repatriation tax, in 2025 when compared to 2024.
Investing Activities:
Net cash flows utilized by investing activities were $284.4 million in 2025 as compared to $203.7 million in 2024. Investing activities in 2025 primarily reflects $105.4 million of purchases of U.S. Treasury bill investments, $63.3 million of additions of property, plant, and equipment, and $135.0 million of additions attributable to software development. Investing activities in 2024 primarily reflects $87.2 million of additions of property, plant, and equipment and $110.3 million of additions attributable to software development. Purchases of U.S. Treasury bills of $571.0 million in the prior year were offset by maturities of those investments in the amount of $583.0 million within the same year. Overall additions to software development increased in 2025 due to the timing of digital gaming projects.
We expect total cash capital expenditures in fiscal year 2026 to be approximately $250 million. We expect to fund our capital expenditures with available cash or cash generated from operations.
Financing Activities:
Net cash utilized by financing activities was $531.3 million and $497.5 million in 2025 and 2024, respectively. Financing activities in 2025 primarily include dividends paid of $392.5 million, aggregate repayments of long-term debt of $118.2 million related to the repurchase of a portion of its Notes due in 2026 and 2027, and $23.7 million of payments related to tax withholdings for stock compensation coinciding with equity award vesting activity.
Financing activities in 2024 primarily include repayments of long-term debt of $581.3 million related to the 3% Notes due 2024 of $500 million and the repurchase of $83.1 million of its Notes due 2026, net proceeds of $498.6 million from the issuance of the 2034 Notes, dividends paid of $389.9 million, and $14.4 million of payments related to tax withholdings for stock compensation coinciding with equity award vesting activity.
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Contractual Obligations and Commitments
The Company’s cash requirements within the next twelve months include accounts payable and accrued liabilities, other current liabilities, and purchase commitments and other obligations. We expect the cash required to meet these obligations to be primarily generated through a combination of cash from operations and access to capital from financial markets. Our long-term cash requirements under our various contractual obligations and commitments include:
• Debt – Refer to Note 12, Long-Term Debt and Other Financing, in our notes to consolidated financial statements for further detail of our debt, including letters of credit, and the timing of expected future principal payments.
• Operating lease obligations – Refer to Note 18, Leases, in our notes to consolidated financial statements for further detail of our obligations and the timing of expected future payments.
• Pension plans and other postretirement benefit contributions – We sponsor a defined benefit plan that pays benefits to eligible employees at retirement. In addition, we provide certain postretirement health and welfare benefits to eligible retirees and their dependents. Refer to Note 17, Retirement Plans, in our consolidated financial statements for further detail of our obligations and the timing of expected future payments.
• Minimum Guarantee Payments – The Company enters into license agreements with strategic partners, inventors, designers and others for the use of intellectual properties in its products. Certain of these agreements contain provisions for the payment of guaranteed or minimum royalty amounts. Refer to Note 21, Commitments and Contingencies, in our notes to consolidated financial statements for further detail of our obligations and the expected timing of expected future payments.
• Purchase and Other Obligations – The Company also has various third-party, inventory and tooling purchase commitments in the ordinary course of business. Refer to Note 21, Commitments and Contingencies, in our notes to consolidated financial statements for further detail of our obligations and the expected timing of expected future payments.
• Uncertain Tax Positions – As of December 28, 2025, the Company has a liability of $49.0 million of potential tax, interest and penalties for uncertain tax positions that have been taken or are expected to be taken in various income tax returns. The Company does not know the ultimate resolution of these uncertain tax positions and as such, does not know the ultimate amount or timing of payments related to this liability.
We believe the following sources will be sufficient to meet our anticipated cash requirements for at least the next twelve months, while maintaining sufficient liquidity for normal operating purposes:
• Our cash flow from operations;
• The availability of additional capital under our commercial paper program or lines of credit; and
• Our availability to access capital from financial markets.

Financial Risk Management
The Company is exposed to market risks attributable to fluctuations in foreign currency exchange rates primarily as the result of sourcing products priced in U.S. dollars, Hong Kong dollars and Euros while marketing and selling those products in more than twenty currencies. Results of operations may be affected primarily by changes in the value of the U.S. dollar, Euro, British pound sterling, Canadian dollar, Brazilian real, and Mexican peso and, to a lesser extent, other currencies in Latin American and Asia Pacific countries.
To manage this exposure, the Company has hedged a portion of its forecasted foreign currency transactions using foreign exchange forward contracts and foreign exchange option contracts. As of December 28, 2025, the Company estimates that a hypothetical immediate 10% depreciation of the U.S. dollar against all foreign currencies included in these foreign exchange forward contracts could result in an approximate $23.3 million decrease in the fair value of these instruments. A decrease in the fair value of these instruments would be offset by increases in the value of the forecasted foreign currency transactions.
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The Company is also exposed to foreign currency risk with respect to its net cash and cash equivalents or short-term borrowing positions in currencies other than the U.S. dollar. The Company believes, however, that the ongoing risk on the net exposure should not be material to its financial condition. In addition, the Company’s revenues and costs have been and will likely continue to be affected by changes in foreign currency rates. A significant change in foreign exchange rates can materially impact the Company’s revenues and earnings due to translation of foreign-denominated revenues and expenses. The Company does not hedge against translation impacts of foreign exchange. From time to time, affiliates of the Company may make or receive intercompany loans in currencies other than their functional currency. The Company manages this exposure at the time the loan is made by using foreign exchange contracts.
The Company reflects all derivative financial instruments at their fair value as an asset or liability on the Consolidated Balance Sheets. The Company does not speculate in foreign currency exchange contracts. As of December 28, 2025, these contracts had net unrealized losses of $7.1 million, of which $0.7 million of unrealized gains recorded in Prepaid expenses and other current assets, $0.9 million of unrealized gains are recorded in Other assets, $8.0 million of unrealized losses are recorded in Accrued liabilities, and $0.7 million of unrealized losses are recorded in Other liabilities. Included in Accumulated other comprehensive loss at December 28, 2025 are deferred losses of $8.3 million, net of tax, related to these derivative financial instruments.
As of December 28, 2025, the Company had fixed rate long-term debt of $3,281.9 million.

Industry Trends, the Economy and Inflation
The principal market for the Company’s toys and games and licensed consumer products is the retail sector. Revenues from the Company’s top five retail customers, accounted for approximately 35% of its consolidated net revenues in 2025. The Company monitors the creditworthiness of its customers and adjusts credit policies and limits as it deems appropriate.
The Company’s revenue pattern continues to show the second half of the year to be more significant to its overall business for the full year. In 2025 approximately 60% of the Company’s full year net revenues were recognized in the second half of the year. The Company expects that this concentration will continue. The concentration of sales in the second half of the year increases the risk of (a) underproduction of popular items, (b) overproduction of less popular items, and (c) failure to achieve tight and compressed shipping schedules. The business of the Company is characterized by customer order patterns which vary from year to year largely because of differences in the degree of consumer acceptance of a product line, product availability, marketing strategies, inventory levels, policies of retailers and differences in overall economic conditions. Larger retailers generally maintain lower inventories throughout the year and purchase a greater percentage of product within or close to the fourth quarter holiday consumer buying season, which includes Christmas. Quick response inventory management practices being used by retailers as well as growth in ecommerce result in orders increasingly placed for immediate delivery and fewer orders placed well in advance of shipment. Retailers are timing their orders so that they are filled by suppliers closer to the time of purchase by consumers. To the extent that retailers do not sell as much of their year-end inventory purchases during this holiday selling season as they had anticipated, their demand for additional product earlier in the following fiscal year may be curtailed, thus negatively impacting the Company’s future revenues. The Company is continuing to manage inventory levels and by monitoring consumer purchase patterns to ensure adequate supply of new product while clearing excess supply to mitigate the risk of inventory obsolescence.
In addition to these inventory management challenges, the bankruptcy or other lack of success of one of the Company’s significant retailers could negatively impact the Company’s future revenues.
Unlike the Company's retail sales patterns, revenue patterns from the Company's entertainment businesses fluctuate based on the timing and popularity of content releases. In addition, entertainment business operating results fluctuate due to expenses recorded in relation to productions and content such as program amortization costs and advertising expenses, which are incurred and recognized, beginning prior to initial releases and then continue throughout the related distribution windows.
Inflation
The Company monitors the impact of inflation to its business operations on an ongoing basis and may need to implement actions such as price adjustments to mitigate the impact of changes to the rate of inflation in future periods. However, future volatility of general price inflation could affect consumer spending. Additionally, the impact of inflation on costs and availability of materials, costs for shipping and warehousing and other operational overhead, could adversely affect the Company's financial results.
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Item 7A.     Quantitative and Qualitative Disclosures About Market Risk.
The information required by this item is included in Part II, Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operation, of this Form 10-K and is incorporated herein by reference.
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Item 8.     Financial Statements and Supplementary Data.
Hasbro, Inc.
Form 10-K
For the Year Ended December 28, 2025

Report of Independent Registered Public Accounting Fir m
49

Consolidated Balance Sheets
52

Consolidated Statements of Operations
53

Consolidated Statements of Comprehensive Earnings (Loss)
54

Consolidated Statements of Cash Flows
55

Consolidated Statements of Shareholders’ Equity
56

Notes to Consolidated Financial Statements
57

1. Summary of Significant Accounting Policies
57

2. Revenue Recognition
64

3. Sale of Entertainment One Film and TV Business
67

4. Earnings Per Common Share
67

5. Other Comprehensive Earnings (Loss)
68

6. Property, Plant and Equipment
70

7. Software Development Costs
70

8. Goodwill and Intangible Assets
70

9. Equity Method Investment
72

10. Investments in Productions
73

1 1 . Additional Balance Sheet Information
74

1 2 . Long-Term Debt and Other Financing
74

1 3 . Income Taxes
77

1 4 . Capital Stock
83

1 5 . Fair Value of Financial Instruments
83

1 6 . Share-Based Awards
84

1 7 . Retirement Plans
87

1 8 . Leases
90

1 9 . Derivative Financial Instruments
91

20. Restructuring Actions
93

2 1 . Commitments and Contingencies
93

2 2 . Segment Reporting
94

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Report of Independent Registered Public Accounting Firm

To the Shareholders and Board of Directors
Hasbro, Inc.:
Opinion on the Consolidated Financial Statements
We have audited the accompanying consolidated balance sheets of Hasbro, Inc. and subsidiaries (the Company) as of December 28, 2025 and December 29, 2024, the related consolidated statements of operations, comprehensive earnings (loss), shareholders’ equity, and cash flows for each of the years in the three-year period ended December 28, 2025, and the related notes (collectively, the consolidated financial statements). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company as of December 28, 2025 and December 29, 2024, and the results of its operations and its cash flows for each of the years in the three-year period ended December 28, 2025, in conformity with U.S. generally accepted accounting principles.
We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company’s internal control over financial reporting as of December 28, 2025, based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission, and our report dated February 25, 2026 expressed an unqualified opinion on the effectiveness of the Company’s internal control over financial reporting.
Basis for Opinion
These consolidated financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these consolidated financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audits provide a reasonable basis for our opinion.
Critical Audit Matters
The critical audit matters communicated below are matters arising from the current period audit of the consolidated financial statements that were communicated or required to be communicated to the audit committee and that: (1) relate to accounts or disclosures that are material to the consolidated financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating these critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate.
Evaluation of the sufficiency of audit evidence over royalty revenues and related contract assets and liabilities
As discussed in Note 1 to the consolidated financial statements, the Company enters into contracts to license its intellectual property wherein the licensees generally pay a sales-based royalty, usage-based royalty, or a combination of both, for use of the intellectual property. The Company records the sales-based or usage-based royalty revenues at the occurrence of the licensees’ subsequent sale or usage. As discussed in Note 2 to the consolidated financial statements, the Company records contract assets related to minimum guarantees being recorded in advance of the contractual invoicing, which are recognized ratably over the terms of the respective license periods. The Company may receive advanced royalty payments from licensees in advance of a licensees’ subsequent sale or usage, or prior to the completion of the Company's performance obligation, for which the Company records the deferred revenues as contract liabilities. As of December 28, 2025, the Company recognized $ 4,701.3 million of net revenues, a portion of which related to royalty revenues. At
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December 28, 2025, the Company recorded contract assets and liabilities balances of $ 282.9 million and $ 190.5 million, respectively, a portion of each which related to licenses.
We identified the evaluation of the sufficiency of audit evidence over royalty revenues and the related contract assets and liabilities as a critical audit matter. Subjective auditor judgment was required to evaluate the nature and extent of procedures performed over royalty revenues and the related contract assets and liabilities because the Company uses a combination of manual and automated procedures to initiate, process, and record these transactions, including multiple information technology (IT) applications. IT professionals with specialized skills and knowledge were also required to evaluate the IT environment in the royalty revenue process.
The following are the primary procedures we performed to address this critical audit matter. We applied auditor judgment to determine the nature and extent of procedures to be performed over royalty revenues and the related contract assets and liabilities. We evaluated the design and tested the operating effectiveness of certain internal controls over the Company’s royalty revenues and related contract assets and liabilities process, including certain manual and automated controls related to initiating, processing, and recording of these transactions. We involved IT professionals with specialized skills and knowledge, who assisted in testing certain general IT controls and application controls used by the Company to process and record royalty revenues. On a sample basis, we tested royalty revenue transactions, contract assets, and contract liabilities by comparing the recorded amounts to underlying documentation and third-party evidence, including customer contracts, sales and usage statements, invoices, and cash receipts. We evaluated the overall sufficiency of audit evidence obtained by assessing the results of procedures performed, including the appropriateness of the nature and extent of such evidence.
Valuation of the North America Consumer Products reporting unit
As discussed in Notes 1 and 8 to the consolidated financial statements, the Company assesses goodwill and other intangible assets with indefinite lives at least annually, or more frequently if an event occurs or circumstances change that indicate the carrying value of a reporting unit may not be recoverable. During the second quarter of 2025, the Company noted downward revisions to operating income and cash flow forecasts for certain reporting units, including North America, within the Consumer Products segment and performed an interim quantitative impairment test. The fair value of the North America Consumer Products reporting unit was determined considering a discounted cash flow model which is primarily based on management's future revenue and cost estimates, which included the estimated impact of tariff policies in effect and the related macroeconomic environment, and a discount rate. As such, the Company recognized an impairment charge of $ 1,021.9 million, a portion of which related to the North America Consumer Products reporting unit.
We identified the evaluation of the fair value of the North America Consumer Products reporting unit as a critical audit matter. A high degree of subjective auditor judgment was required to evaluate the key assumptions, including the projected net revenue, projected product cost, discount rate, tariff percentage, and tariff percentage probability assumptions, used to estimate fair value for the reporting unit. The assessment of these key assumptions was subjective as they are based largely on the outcome of uncertain future events and changes could have a significant impact on the fair value of the reporting unit. In addition, specialized skills and knowledge were required to assess the discount rate, tariff percentage, and tariff percentage probability assumptions.
The following are the primary procedures we performed to address this critical audit matter. We evaluated the design and tested the operating effectiveness of certain internal controls related to the Company’s goodwill impairment process. This included controls related to the development of the key assumptions used to estimate fair value of the North America Consumer Products reporting unit. We evaluated the reasonableness of projected net revenue and projected product cost for the reporting unit by comparing them to the Company's historical performance, available external industry data, and other internal information. We evaluated the reasonableness of the tariff percentage and tariff percentage probability for the reporting unit by comparing them to available external industry data. We involved a trade and customs professional with specialized skills and knowledge who assisted in evaluating the tariff percentage and tariff percentage probability by informing our understanding of tariff-related executive orders, the timelines of tariff-related events, and the likelihood of each tariff percentage, including providing external information on the key assumptions. We involved valuation professionals with specialized skills and knowledge, who assisted in:
• evaluating the discount rate by comparing it to a discount rate range that was independently developed using publicly available market data for guideline public companies
• evaluating the appropriateness of the selected guideline public companies by researching the selected guideline public companies and their business description
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• developing an independent estimate of the fair value of the reporting unit using the income approach, which was then compared to the Company’s fair value estimate
/s/ KPMG LLP
We have not been able to determine the specific year that we began serving as the Company’s auditor, however, we are aware that we have served as the Company’s auditor since at least 1968.
Providence, Rhode Island
February 25, 2026
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HASBRO, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
December 28, 2025 and December 29, 2024
(Millions of Dollars Except Share Data)

2025 2024
ASSETS
Current assets
Cash and cash equivalents, including restricted cash of $ 0.4 and $ 0.3
$ 776.6   $ 695.0  
Short-term investments 105.4   —  
Accounts receivable, net of allowance for credit losses of $ 61.3 and $ 25.8
1,059.8   919.8  
Inventories 259.8   274.2  
Prepaid expenses and other current assets 382.1   353.5  
Total current assets 2,583.7   2,242.5  
Property, plant and equipment, net 247.8   302.6  
Goodwill
1,256.7   2,278.2  
Other intangible assets, net
456.7   518.4  
Other assets 1,007.1   998.6  
Total assets $ 5,552.0   $ 6,340.3  
LIABILITIES, NONCONTROLLING INTERESTS AND SHAREHOLDERS’ EQUITY
Current liabilities
Current portion of long-term debt $ 497.0   $ —  
Accounts payable 335.4   341.5  
Accrued liabilities 1,038.7   1,059.8  
Total current liabilities 1,871.1   1,401.3  
Long-term debt 2,767.9   3,380.8  
Other liabilities 347.5   373.2  
Total liabilities 4,986.5   5,155.3  
Commitments and contingencies (Note 21)

Shareholders’ equity
Preference stock of $ 2.50 par value. Authorized 5,000,000 shares; none issued
—   —  
Common stock of $ 0.50 par value. Authorized 600,000,000 shares; issued 220,286,736 shares as of 2025 and 2024
110.1   110.1  
Additional paid-in capital 2,695.4   2,632.2  
Retained earnings 1,554.1   2,274.2  
Accumulated other comprehensive loss ( 217.5 ) ( 246.4 )
Treasury stock, at cost, 79,901,615 shares in 2025 and 80,758,045 shares in 2024
( 3,603.6 ) ( 3,612.5 )
Noncontrolling interests 27.0   27.4  
Total shareholders’ equity 565.5   1,185.0  
Total liabilities, noncontrolling interests and shareholders’ equity $ 5,552.0   $ 6,340.3  

See accompanying notes to consolidated financial statements.
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HASBRO, INC. AND SUBSIDIARIES
Consolidated Statements of Operations
Fiscal Years Ended in December
(Millions of Dollars Except Per Share Data)
2025 2024 2023
Net revenues $ 4,701.3   $ 4,135.5   $ 5,003.3  
Costs and expenses
Cost of sales 1,296.2   1,179.5   1,706.0  
Program cost amortization 35.8   49.3   448.9  
Royalties 368.9   284.2   428.3  
Product development 385.6   294.1   306.9  
Advertising 316.9   319.5   358.4  
Amortization of intangible assets 66.0   68.3   83.0  
Impairment of goodwill (Note 8) 1,021.9   —   1,191.2  
Loss on disposal of business 25.0   37.4   539.0  
Selling, distribution and administration 1,173.9   1,213.2   1,480.4  
Total costs and expenses 4,690.2   3,445.5   6,542.1  
Operating profit (loss) 11.1   690.0   ( 1,538.8 )
Non-operating expense
Interest expense 163.4   171.2   186.3  
Interest income ( 28.6 ) ( 47.3 ) ( 23.0 )
Other (income) expense, net ( 21.7 ) 69.1   7.0  
Total non-operating expense, net 113.1   193.0   170.3  
(Loss) earnings before income taxes ( 102.0 ) 497.0   ( 1,709.1 )
Income tax expense (benefit) 216.2   102.6   ( 221.3 )
Net (loss) earnings ( 318.2 ) 394.4   ( 1,487.8 )
Net earnings attributable to noncontrolling interests 4.2   8.8   1.5  
Net (loss) earnings attributable to Hasbro, Inc. $ ( 322.4 ) $ 385.6   $ ( 1,489.3 )

Net (loss) earnings per common share:
Basic $ ( 2.30 ) $ 2.77   $ ( 10.73 )
Diluted $ ( 2.30 ) $ 2.75   $ ( 10.73 )

Cash dividends declared $ 2.80   $ 2.10   $ 2.80  

See accompanying notes to consolidated financial statements.
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HASBRO, INC. AND SUBSIDIARIES
Consolidated Statements of Comprehensive Earnings (Loss)
Fiscal Years Ended in December
(Millions of Dollars)

2025 2024 2023
Net (loss) earnings
$ ( 318.2 ) $ 394.4   $ ( 1,487.8 )
Other comprehensive earnings (loss):

Foreign currency translation adjustments 40.1   ( 48.8 ) 59.4  

Net (losses) gains on hedging activities, net of tax
( 12.5 ) 7.3   ( 8.6 )
Changes in unrecognized pension amounts, net of tax 0.6   ( 2.9 ) ( 0.9 )
Reclassifications to earnings, net of tax:
Net losses on hedging activities
0.5   0.4   3.8  
Amortization of unrecognized pension and postretirement amounts 0.2   ( 0.9 ) ( 0.3 )
Other comprehensive earnings (loss), net of tax
28.9   ( 44.9 ) 53.4  
Total comprehensive (loss) earnings, net of tax
( 289.3 ) 349.5   ( 1,434.4 )
Total comprehensive earnings attributable to noncontrolling interests
4.2   8.8   1.5  
Total comprehensive (loss) earnings attributable to Hasbro, Inc.
$ ( 293.5 ) $ 340.7   $ ( 1,435.9 )

See accompanying notes to consolidated financial statements.
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HASBRO, INC. AND SUBSIDIARIES
Consolidated Statements of Cash Flows
Fiscal Years Ended in December
(Millions of Dollars)

2025 2024 2023
Cash flows from operating activities:

Net (loss) earnings
$ ( 318.2 ) $ 394.4   $ ( 1,487.8 )
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation of property, plant and equipment 69.5   94.7   127.7  
Loss on disposal of business 25.0   37.4   539.0  
Impairment of goodwill
1,021.9   —   1,191.2  
Impairment of intangibles and production assets —   —   116.0  
Loss on Discovery Family Channel investment —   78.2   —  
Inventory obsolescence
49.3   22.4   91.2  
Amortization of intangible assets 66.0   68.3   83.0  
Program cost amortization 35.8   49.3   448.9  
Deferred income taxes 158.3   ( 20.6 ) ( 243.5 )
Share-based compensation 80.4   50.8   72.4  
Other non-cash items 25.5   13.0   ( 6.1 )
Changes in operating assets and liabilities, net of acquired and disposed balances:
Net change in accounts receivable ( 150.2 ) 77.3   15.5  
Net change in inventories ( 25.4 ) 22.1   257.1  
Net change in prepaid expenses and other current assets ( 40.7 ) 58.9   34.7  
Program production costs ( 10.2 ) ( 25.3 ) ( 408.0 )
Net change in accounts payable and accrued liabilities ( 35.1 ) ( 78.8 ) ( 109.7 )
Change in net deemed repatriation tax ( 57.4 ) ( 45.9 ) ( 34.4 )
Other ( 1.3 ) 51.2   38.4  
Net cash provided by operating activities 893.2   847.4   725.6  
Cash flows from investing activities:

Additions to property, plant and equipment ( 63.3 ) ( 87.2 ) ( 135.5 )
Additions to software development ( 135.0 ) ( 110.3 ) ( 73.8 )

Net (settlement) proceeds from sale of business, net of cash transferred —   ( 12.0 ) 329.6  
Purchase of investments ( 105.4 ) ( 571.0 ) —  
Maturity of investments —   583.0   —  
Other 19.3   ( 6.2 ) ( 2.7 )
Net cash (utilized) provided by investing activities ( 284.4 ) ( 203.7 ) 117.6  
Cash flows from financing activities:

Proceeds from borrowings —   498.6   2.6  
Repayments of borrowings ( 118.2 ) ( 581.3 ) ( 359.6 )
Net repayments of other short-term borrowings
—   —   ( 41.6 )

Share-based compensation transactions 9.6   7.6   —  
Dividends paid ( 392.5 ) ( 389.9 ) ( 388.0 )
Payments related to tax withholding for share-based compensation ( 23.7 ) ( 14.4 ) ( 16.8 )
Payment of financing costs —   ( 5.3 ) —  
Other ( 6.5 ) ( 12.8 ) ( 14.7 )
Net cash utilized by financing activities ( 531.3 ) ( 497.5 ) ( 818.1 )
Effect of exchange rate changes on cash 4.1   3.4   7.2  
Net increase in cash, cash equivalents and restricted cash
81.6   149.6   32.3  
Cash, cash equivalents and restricted cash, beginning of year
695.0   545.4   513.1  
Cash, cash equivalents and restricted cash, end of year
$ 776.6   $ 695.0   $ 545.4  
Supplemental information
Interest paid $ 158.4   $ 162.2   $ 179.0  
Income taxes paid, net
$ 196.8   $ 92.7   $ 119.8  

See accompanying notes to consolidated financial statements.
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Consolidated Statements of Shareholders’ Equity
(Millions of Dollars)
Common
Stock Additional
Paid-in
Capital Retained
Earnings Accumulated
Other
Comprehensive
Loss Treasury
Stock Non-controlling Interests Total
Shareholders’
Equity
Balance, December 25, 2022 $ 110.1   $ 2,540.6   $ 4,071.4   $ ( 254.9 ) $ ( 3,634.4 ) $ 29.1   $ 2,861.9  
Net (loss) earnings
—  —  ( 1,489.3 ) —  —  1.5   ( 1,487.8 )

Other comprehensive earnings —  —  —  53.4   —  —  53.4  
Share-based compensation transactions —  ( 23.1 ) —  —  6.2   —  ( 16.9 )

Share-based compensation expense —  69.9   —  —  2.5   —  72.4  
Dividends declared —  5.3   ( 393.7 ) —  —  —  ( 388.4 )
Distribution paid to noncontrolling owners and other foreign exchange —  —  —  —  —  ( 5.5 ) ( 5.5 )
Buyout of redeemable noncontrolling interest —  ( 2.1 ) —  —  —  —  ( 2.1 )
Balance, December 31, 2023 110.1   2,590.6   2,188.4   ( 201.5 ) ( 3,625.7 ) 25.1   1,087.0  
Net earnings
—  —  385.6   —  —  8.8   394.4  
Other comprehensive loss —  —  —  ( 44.9 ) —  —  ( 44.9 )
Share-based compensation transactions —  ( 14.7 ) —  —  11.6   —  ( 3.1 )
Share-based compensation expense —  49.2   —  —  1.6   —  50.8  
Dividends declared —  7.1   ( 299.8 ) —  —  —  ( 292.7 )
Distributions paid to noncontrolling owners and other foreign exchange —  —  —  —  —  ( 6.5 ) ( 6.5 )

Balance, December 29, 2024 110.1   2,632.2   2,274.2   ( 246.4 ) ( 3,612.5 ) 27.4   1,185.0  
Net (loss) earnings
—  —  ( 322.4 ) —  —  4.2   ( 318.2 )
Other comprehensive earnings
—  —  —  28.9   —  —  28.9  
Share-based compensation transactions —  ( 22.0 ) —  —  8.5   —  ( 13.5 )
Share-based compensation expense —  80.0   —  —  0.4   —  80.4  
Dividends declared —  5.2   ( 397.7 ) —  —  —  ( 392.5 )
Distributions paid to noncontrolling owners and other foreign exchange —  —  —  —  —  ( 4.6 ) ( 4.6 )
Balance, December 28, 2025 $ 110.1   $ 2,695.4   $ 1,554.1   $ ( 217.5 ) $ ( 3,603.6 ) $ 27.0   $ 565.5  

See accompanying notes to consolidated financial statements.

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Notes to Consolidated Financial Statements

(1)     Summary of Significant Accounting Policies
Overview: Hasbro, Inc., a Rhode Island corporation, and its consolidated subsidiaries are referred to in these consolidated financial statements and notes as “we,” “our,” “us,” the “Company” or “Hasbro.”
The Company's three reportable segments consist of: Consumer Products, Wizards of the Coast and Digital Gaming, and Entertainment. Corporate and Other, which does not meet the criteria to be an operating segment, provides management and administrative services to the Company's principal reporting segments.
Principles of Consolidation: The consolidated financial statements include the accounts of Hasbro, Inc. and all majority-owned subsidiaries. Investments representing 20% to 50% ownership interests in other companies are accounted for using the equity method. For those majority-owned subsidiaries that are not 100% owned by Hasbro, the interests of the minority owners are accounted for as noncontrolling interests. All intercompany balances and transactions have been eliminated.
Basis of Presentation: Hasbro’s fiscal year ends on the last Sunday in December. The fiscal years ended December 28, 2025 and December 29, 2024 were fifty-two week periods. The fiscal year ended December 31, 2023 was a fifty-three week period. Certain amounts have been reclassified to conform to current year presentation.
Use of Estimates: The consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles ("GAAP") and necessarily include amounts based on estimates and assumptions by management. Actual results could differ from those amounts. Significant estimates include amounts for income taxes, litigation, valuation of goodwill and other long-term assets, and inventory and accounts receivable exposures.
Sale of Non-core Entertainment One Film and TV Business: On December 27, 2023, the Company completed the sale of its Entertainment One film and television business ("eOne Film and TV") to Lions Gate Entertainment Corp., Lions Gate Entertainment Inc. and Lions Gate International Motion Pictures S.à.r.l (collectively "Lionsgate"), pursuant to the terms of an Equity Purchase Agreement dated August 3, 2023. Refer to Note 3, Sale of Entertainment One Film and TV Business, for additional information.
Other Adjustments: During 2024, the Company corrected prior period errors associated with an $ 18.1  million benefit related to the reversal of share-based compensation expense for the Company's stock performance awards that should have been recorded during fiscal year 2023 (recorded in Selling, distribution and administration on the Consolidated Statements of Operations), a $ 31.1  million expense and associated liability related to historical environmental liabilities in accordance with the Financial Accounting Standards Board ("FASB") Accounting Standard Codification ("ASC") Topic 410, Asset Retirement and Environmental Obligations (recorded in Selling, distribution and administration on the Consolidated Statements of Operations), and a $ 26.7  million benefit related to an over-accrual of vendor commitment liabilities (recorded in Cost of sales on the Consolidated Statements of Operations). The recording of these items was not considered to be material, individually or in the aggregate, to the Company's prior year consolidated financial statements.
Cash, Cash Equivalents and Restricted Cash: Cash and cash equivalents, including restricted cash, include all cash balances and highly liquid investments purchased with an initial maturity to the Company of three months or less.
Accounts Receivable and Allowance for Credit Losses: Accounts receivable represent amounts due from customers in the ordinary course of business and are recorded at the invoiced amount and do not bear interest. Receivables are presented net of allowances for credit losses in the Company’s accompanying Consolidated Balance Sheets. Credit is granted to customers predominantly on an unsecured basis. Credit limits and payment terms are established based on extensive evaluations made on an ongoing basis throughout the fiscal year with regard to the financial performance, cash generation, financing availability and liquidity status of each customer. The Company evaluates the collectability of its accounts receivable and determines the appropriate allowance for credit losses based on a combination of factors such as assessment of the business environment, customers’ financial condition, historical collection experience, accounts receivable aging, customer disputes and future expected losses. Refer to Note 2, Revenue Recognition, for additional information related to the allowance for credit losses.
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Notes to Consolidated Financial Statements — (Continued)

Inventories: Inventories are valued at the lower of cost or net realizable value using the first-in, first-out method. Based upon a consideration of quantities on hand, actual and projected sales volume, anticipated product selling price and product lines planned to be discontinued, slow-moving and obsolete inventory is written down to its estimated net realizable value. As of December 28, 2025 and December 29, 2024, substantially all inventory is comprised of finished goods.
Equity Method Investment: For the Company’s equity method investments, only the Company’s investment in and amounts due to and from the equity method investment are included in the Consolidated Balance Sheets. The Company’s share of the equity method investment’s earnings (losses) are included in Other (income) expense, net in the Consolidated Statements of Operations, along with any cash distributions received in excess of the carrying value of the investment. Dividends, cash distributions, loans or other cash received from the equity method investment, additional cash investments or other cash paid to the investee are included in the Consolidated Statements of Cash Flows. The Company reviews its equity method investments for impairment on a periodic basis. If it has been determined that the fair value of the equity investment is less than its related carrying value and that this decline is other-than-temporary, the carrying value of the investment is adjusted downward to reflect these declines in value. Refer to Note 9, Equity Method Investment, for additional information.
Noncontrolling Interests: The financial results and position of noncontrolling interests in entities that meet the criteria for consolidation are included in their entirety in the Company’s Consolidated Statements of Operations and Consolidated Balance Sheets. The Company's remaining non-redeemable noncontrolling interests as of December 28, 2025 and December 29, 2024 includes the following:

Name Country of Incorporation Ownership Interest Proportion Held Principal Activity
Astley Baker Davies Limited England and Wales Nonredeemable 70 % Ownership of intellectual property

Property, Plant and Equipment, Net: Property, plant and equipment, net are stated at cost less accumulated depreciation. Depreciation is computed using accelerated and straight-line methods to depreciate the cost of property, plant and equipment over their estimated useful lives. The principal lives, in years, used in determining depreciation rates of various assets are: land improvements 15 to 19 , buildings and improvements 14 to 25 and machinery and equipment (including computer hardware and software) 3 to 12 . Depreciation expense is classified in the Consolidated Statements of Operations based on the nature of the property and equipment being depreciated. Tools, dies and molds are depreciated over their useful lives, which is generally 3 years, using an accelerated method. The Company generally owns all tools, dies and molds related to its products. Refer to Note 6, Property, Plant and Equipment, for additional information.
Property, plant and equipment, net is reviewed for impairment whenever events or circumstances indicate the carrying value may not be recoverable. Recoverability is measured by a comparison of the carrying amount of the asset or related asset group to future undiscounted cash flows expected to be generated by the asset or asset group. If such assets are considered to be impaired, the impairment to be recognized would be measured by the amount by which the carrying value of the assets exceeds their fair value wherein the fair value is the appraised value. Furthermore, assets to be disposed of are carried at the lower of the net book value or their estimated fair value less disposal costs.
Software as a Service Arrangements: The Company incurs costs to implement software as a service arrangements that are hosted by third party vendors. Implementation costs associated with software as a service arrangements are capitalized when incurred during the application development phase. Amortization is calculated on a straight-line basis over the contractual term of the arrangement. Capitalized amounts related to such arrangements are recorded within Prepaid expense and other current assets and Other assets in the Consolidated Balance Sheets.
Software Development Costs: Capitalized software development costs include direct costs incurred for both internally developed titles as well as payments to third-party software developers under development agreements. Software development costs are capitalized within Other assets in the Company’s accompanying Consolidated Balance Sheets. Cash outflows associated with the capitalization of software development costs are presented as an investing activity in the Company's accompanying Consolidated Statement of Cash Flows. Substantially all of our capitalized software development costs are included within the Wizards of the Coast and Digital Gaming segment.
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Notes to Consolidated Financial Statements — (Continued)

We capitalize internal software development costs (including specifically identifiable payroll expense and incentive compensation costs, as well as third-party production and other content costs), subsequent to establishing technological feasibility of a software title. Technological feasibility of a product includes the completion of both technical design documentation and game design documentation. Management exercises judgment to assess when technological feasibility has been established. For titles where proven technology exists, this may occur early in the development cycle. Technological feasibility is evaluated on a title-by-title basis. Prior to establishing technological feasibility of a title, any costs incurred by third-party developers are recorded as product development expenses.
We enter into agreements with third-party developers that require us to make payments for game development and production services. In exchange for our payments, we receive the exclusive publishing and distribution rights to the finished game title. Subsequent to establishing technological feasibility of a product, we capitalize all development and production service payments to third-party developers as software development costs. When we contract with third-party developers, we generally select those that have proven technology and experience in the genre of the software being developed, which often allows for the establishment of technological feasibility early in the development cycle.
The development of certain software titles qualify for government grants and tax incentives that are earned on qualified production spend. These grants and incentives either reduce the cost basis of our capitalized software development costs or product development expense, depending on if the associated titles have met the technological feasibility criteria.
Amortization of capitalized software development costs and licenses commence when a title is available for general release and is recorded on a title-by-title basis in Cost of sales in the Consolidated Statements of Operations. For capitalized software development costs, annual amortization is calculated using (1) the proportion of current year revenue to the total revenue expected to be recorded over the life of the title or (2) the straight-line method over the remaining estimated life of the title, whichever is greater. As of December 28, 2025, none of the titles for which we have capitalized software development costs have begun amortization.
We evaluate the future recoverability of capitalized software development costs on a quarterly basis. For titles that have been released to the general public, recoverability is primarily assessed based on the title's actual performance. For titles that are scheduled to be released in the future, recoverability is evaluated based on the expected performance of the specific titles to which the cost relates. We use a number of criteria in the evaluation of expected performance, including historical performance of comparable titles developed with comparable technology, market performance of comparable titles, orders for the title prior to its release, general market conditions, and past performance of the franchise. When we determine that capitalized costs of the title are unlikely to be recovered by product sales, an impairment of software development costs capitalized is charged in the period in which such determination is made. Refer to Note 7, Software Development Costs, for additional information.
Goodwill and Other Intangible Assets, Net: Goodwill results from acquisitions the Company has made over time. Substantially all of the Company's other intangible assets consist of the cost of acquired product rights. In establishing the value of such rights, the Company considers existing trademarks, copyrights, patents, license agreements and other product-related rights. These rights were valued on their acquisition dates based on the anticipated future cash flows from the underlying product lines. The Company also has certain intangible assets related to the Tonka and Milton Bradley acquisitions that have indefinite lives.
Goodwill and intangible assets deemed to have indefinite lives are not amortized and are tested for impairment at least annually. The annual goodwill test begins with a qualitative assessment, where qualitative factors and their impact on critical inputs are assessed to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value. If the Company determines that a reporting unit has an indication of impairment based on the qualitative assessment, a quantitative impairment assessment is performed.
The Company's intangible assets having definite lives are being amortized over remaining periods ranging from 2 to 12 years using the straight-line method. The Company reviews intangible assets with definite lives for impairment whenever events or changes in circumstances indicate the carrying value may not be recoverable. Recoverability is measured by a comparison of the carrying amount of the asset to future undiscounted cash flows expected to be generated by the asset or asset group. If such assets were considered to be impaired, the impairment to be recognized would be measured by the amount by which the carrying value of the assets exceeds their fair value wherein that fair value is determined based on discounted cash flows.
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Notes to Consolidated Financial Statements — (Continued)

The Company's reporting units are determined in accordance with the provisions of ASC Topic 350, Intangibles - Goodwill and Other. The Company performs its annual impairment testing of goodwill and definite-lived intangible assets during the fourth quarter of each year. Refer to Note 8, Goodwill and Intangible Assets, for additional information on the results of the Company’s impairment tests.
Financial Instruments: Hasbro’s financial instruments include cash and cash equivalents, accounts receivable, short-term borrowings, accounts payable and certain accrued liabilities. As of December 28, 2025, the carrying cost of these instruments approximated their fair value. The Company’s financial instruments as of December 28, 2025 also include long-term borrowings (refer to Note 12, Long-Term Debt and Other Financing, for carrying cost and related fair values) as well as certain assets and liabilities measured at fair value (refer to Note 15, Fair Value of Financial Instruments and Note 19, Derivative Financial Instruments).
Revenue Recognition: Revenue is recognized when control of the promised goods is transferred to the customers or licensees, in an amount that reflects the consideration the Company expects to be entitled to in exchange for transferring those goods. The Company accounts for a contract when it has approval and commitment from both parties, the rights of the parties are identified, payment terms are identified, the contract has commercial substance, and collectability of consideration is probable.
The majority of the Company’s revenues are derived from sales of finished products to customers. Revenues from sales of finished products to customers accounted for 81 % , 79 % and 75 % of the Company’s revenues for the fiscal years ended 2025 , 2024 and 2023, respectively. When determining whether control of the finished products has transferred to the customer, the Company considers any future performance obligations. Generally, the Company has no post-shipment obligation on sales of finished products to customers and revenues from product sales are recognized upon passing of title to the customer, which is generally at the time of shipment but can vary based on international commerce terms ("incoterms"). Any shipping and handling activities that are performed by the Company, whether before or after a customer has obtained control of the products, are considered activities to fulfill our obligation to transfer the products, and are recorded as incurred within Selling, distribution, and administration expenses. The Company offers various discounts, rebates, allowances, returns, and markdowns to its customers (collectively, “allowances”), all of which are considered when determining the transaction price. Certain allowances are fixed and determinable at the time of sale and are recorded at the time of sale as a reduction to revenues. Other allowances can vary depending on future outcomes such as customer sales volume (“variable consideration”). The Company estimates the amount of variable consideration using the expected value method. In estimating the amount of variable consideration using the expected value method, the Company considers various factors including but not limited to: customer terms, historical experience, any expected deviations from historical experience, and existing or expected market conditions. The Company then records an estimate of variable consideration as a reduction to revenues at the time of sale. The Company adjusts its estimate of variable consideration at least quarterly or when facts and circumstances used in the estimation process may change. Historically, adjustments to estimated variable consideration have not been material.
The Company enters into contracts to license its intellectual property, which consists of its brands, in various channels including but not limited to: consumer products such as apparel or home goods, within formats such as online and digital games, within venues such as theme parks, or within formats such as television and film. The licensees generally pay the Company a sales-based royalty, usage-based royalty, or a combination of both, for use of the brands, in some cases subject to minimum guaranteed amounts or fixed fees. The license of the Company’s brands provide access to the intellectual property over the term of the license, generally without any other performance obligation of the Company other than keeping the intellectual property active, and is therefore considered a right-to-access license of symbolic intellectual property. The Company records sales-based or usage-based royalty revenues for right-to-access licenses at the occurrence of the licensees’ subsequent sale or usage. When the arrangement includes a minimum guarantee, the Company records the minimum guarantee on a ratable basis over the term of the license period and does not record the sales-based or usage-based royalty revenues until they exceed the minimum guarantee.
The Company also produces, sells and licenses television and film content for distribution to third parties in formats that include broadcast, digital streaming, transactional and theatrical. These are intellectual property licenses where the licensees pay either a fixed fee for the content license or a variable fee in the form of a sales-based royalty. The content that the Company delivers to its licensees typically has stand-alone functionality, generally without any other performance obligation of the Company, and is therefore considered a right-to-use license of functional intellectual property. The Company records revenues for right-to-use licenses once the license period has commenced and the
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Notes to Consolidated Financial Statements — (Continued)

licensee has the ability to use the delivered content. In arrangements where the licensee pays the Company a fixed fee for multiple seasons or multiple series of programming, arrangement fees are recorded as revenues based upon their relative fair values. The Company also earns advertising revenues from certain content made available on free to consumer, streaming video on demand platforms where the Company earns a portion of the advertising revenues earned by the service provider. The performance obligation is met and revenue is recorded when the user accesses the Company’s content through the streaming platform.
The Company develops and hosts digital games featuring its brands within the games, such as Magic: The Gathering Arena and D&D Beyond . The Company does not charge a fee to the end users for the download of the games or the ability to play the games. The end users make in-application purchases of virtual currencies, with such purchased virtual currencies to be used in the games. In addition, the Company offers a subscription service that provides access to a variety of added benefits, typically for a recurring monthly, semi-annual, or annual fee. The Company records revenues from in-application purchases based on either the usage patterns of the players or the player’s estimated life, depending on the nature of the game item purchased in exchange for virtual currency. For items recognized over the player's estimated life, the Company currently recognizes digital game's revenues ratably within six months of purchase, while revenue received from subscription services is recognized ratably over the subscription term. The Company controls all aspects of the digital goods delivered to the consumer.
Costs of Sales: Cost of sales primarily consists of purchased materials, labor, tooling, manufacturing overheads and other inventory-related costs such as obsolescence.
Investment in Productions and Program Cost Amortization: The Company incurs costs in connection with the production of digital content, television programming and live action movies. The majority of these costs are capitalized by the Company as they are incurred and amortized using the individual-film-forecast method, whereby these costs are amortized in the proportion that the current year’s revenues bear to management’s estimate of total ultimate revenues as of the beginning of such period related to the program. Ultimate revenue estimates are periodically reviewed and adjustments, if any, will result in changes to amortization rates and estimated accruals for residuals and participations. Ultimate revenue includes estimates over a period not to exceed ten years following the date of release of the production. These capitalized costs are reported at the lower of cost, less accumulated amortization, or fair value, and reviewed for impairment when an event or change in circumstances occurs that indicates that impairment may exist. The fair value is determined using a discounted cash flow model which is primarily based on management’s future revenue and cost estimates. Certain of these agreements require the Company to pay minimum guaranteed advances ("MGs") for participations and residuals. MGs are recognized in the Consolidated Balance Sheets when a liability arises, usually on delivery of the television or film program to the Company. The current portion of MGs are recorded as Accounts payable and Accrued liabilities and the long-term portion are recorded as Other liabilities.
Royalties: The Company enters into license agreements with strategic partners, inventors, designers and others for the use of intellectual properties in its products. In addition, the Company enters into minimum guaranteed royalty arrangements related to the purchase of film and television rights for content to be delivered in the future. These agreements may call for payment in advance or future payment of minimum guaranteed amounts. Amounts paid in advance are recorded in Prepaid expenses and other current assets and charged to expense when the related revenue is recognized in the Consolidated Statements of Operations. If all or a portion of the minimum guaranteed amounts appear not to be recoverable through future use of the rights obtained under the license, the non-recoverable portion of the guaranty is charged to expense at that time.
Advertising: Production costs of commercials are expensed in the fiscal year during which the production is first aired. The costs of other advertising and promotion programs are expensed in the fiscal year incurred.
Shipping and Handling: The Company expenses costs related to the shipment and handling of goods to customers as incurred. In 2025, 2024 and 2023, these costs were $ 207.8 million, $ 199.2 million and $ 225.6 million, respectively, and are included in Selling, distribution and administration expenses in the Company’s Consolidated Statements of Operations.
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Notes to Consolidated Financial Statements — (Continued)

Operating Leases: The Company leases certain property, vehicles and other equipment through operating leases. Operating lease right-of-use assets are recorded within Property, plant and equipment and the related liabilities recorded within Accrued liabilities and Other liabilities on the Company’s Consolidated Balance Sheets. The Company has no material finance leases.
Operating lease assets represent the Company’s right-to-use the underlying asset for the lease term and lease liabilities represent an obligation to make lease payments according to the terms of the lease. Operating lease assets and liabilities are recognized at the inception of the lease agreement based on the estimated present value of lease payments over the lease term, using our incremental borrowing rate based on information available on the lease commencement date. The Company capitalizes non-lease components for equipment leases, but expenses non-lease components as incurred for real estate leases. Leases with an expected term of 12 months or less are not capitalized. Lease expense under such leases is recorded straight-line over the life of the lease. Refer to Note 18, Leases, for further details on the Company's operating leases.
Income Taxes: Hasbro uses the asset and liability approach for financial accounting and reporting of income taxes. Deferred income taxes reflect the net tax effect of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Deferred taxes are measured using rates expected to apply to taxable income in years in which those temporary differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date.
The Company recognizes deferred tax assets to the extent it believes that these assets are more likely than not to be realized. In making such a determination, all available positive and negative evidence is considered, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, and results of recent operations. The assumptions utilized in determining future taxable income require significant judgment and are consistent with the plans and estimates used to manage the underlying businesses. Actual operating results in future years could differ from current assumptions, judgments and estimates. However, the Company believes that it is more likely than not that most of the deferred tax assets recorded on our Consolidated Balance Sheets will ultimately be realized. To the extent we consider it is more likely than not that a deferred tax asset will not be recovered, a valuation allowance is established. If it is determined that our deferred tax assets will be realizable in the future in excess of their net recorded amount, an adjustment would be made to the deferred tax asset valuation allowance, which would reduce the provision for income taxes.
The Company uses a two-step process for the measurement of uncertain tax positions that have been taken or are expected to be taken in a tax return. The first step is determination of whether the tax position should be recognized in the consolidated financial statements. The second step determines the measurement of the tax position. The Company records potential interest and penalties on uncertain tax positions as a component of Income tax expense.
Foreign Currency Translation: Foreign currency assets and liabilities are translated into U.S. dollars at period-end exchange rates, and revenues, costs and expenses are translated at weighted average exchange rates during each reporting period. Net earnings include gains or losses resulting from foreign currency transactions, totaling a net gain of $ 22.4  million in 2025, and, when required, translation gains and losses resulting from the use of the U.S. dollar as the functional currency in highly inflationary economies. Other gains and losses resulting from translation of financial statements are a component of Other comprehensive earnings (loss).
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Notes to Consolidated Financial Statements — (Continued)

Pension Plans, Postretirement and Postemployment Benefits: Pension expense and related amounts in the Consolidated Balance Sheets are based on actuarial computations of current and future benefits. The assumed discount rate for pension and postretirement benefit plans is determined by considering yield curves constructed of a large population of high-quality corporate bonds and reflects the matching of the plans' liability cash flows to the yield curves. Actual results that differ from the actuarial assumptions are accumulated and, if outside a certain corridor, amortized over future periods and therefore affect recognized expense in future periods. The corridor used for this purpose is equal to 10% of the greater of plan liabilities or market asset values, and future periods vary by plan, but generally equal the actuarial determined average expected future working lifetime of active plan participants. The Company’s policy is to fund amounts which are required by applicable regulations and which are tax deductible. The estimated amounts of future payments to be made under other retirement programs are being accrued currently over the period of active employment and are also included in pension expense. Hasbro also has a contributory postretirement health and life insurance plan covering substantially all employees who retired under any of its United States defined benefit pension plans prior to January 1, 2020, and meet certain age and length of service requirements.
Share-Based Compensation: The Company has a share-based employee compensation plan for employees and non-employee members of the Company’s Board of Directors. Under this plan the Company may grant stock options at or above the fair market value of the Company’s stock, as well as restricted stock, restricted stock units and contingent stock performance awards. All awards are measured at fair value at the date of the grant and amortized as expense on a straight-line basis over the requisite service period of the award. For awards contingent upon Company performance, the measurement of the expense for these awards is based on the Company’s current estimate of its performance over the performance period. The Company recognizes forfeitures as incurred. Refer to Note 16, Share-Based Awards, for further discussion.
Dividend Equivalent Units: Beginning with employee stock incentive awards granted in 2022, the payment of cash dividends to shareholders also results in the crediting of dividend equivalent units (“DEUs”) to holders of restricted stock units ("RSUs") and contingent stock performance awards ("PSUs") granted under the Company's Restated 2003 Stock Incentive Plan, as amended, for employees as defined and described in Note 16, Share-Based Awards. The DEUs are credited as additional RSUs or PSUs and settled concurrently with the vesting of associated awards. DEUs are forfeited in the event the underlying RSUs or PSU's do not vest. The dividend equivalent value of forfeitable DEUs is treated as a reduction of Retained earnings or, if the Company is in a retained deficit position, as a reduction of Additional paid-in capital.
Risk Management Contracts: Hasbro uses foreign currency forward and option contracts to mitigate the impact of currency rate fluctuations on firmly committed and projected future foreign currency transactions. These over-the-counter contracts, which hedge future purchases of inventory, product sales, as well as other cross-border currency requirements not denominated in the functional currency of the business unit, are primarily denominated in United States, Canadian and Hong Kong dollars as well as Euros and British pound sterling. All contracts are entered into with a number of counterparties, all of which are major financial institutions. The Company believes that a default by a counterparty would not have a material adverse effect on the financial condition of the Company. Hasbro does not enter into derivative financial instruments for speculative purposes.
At the inception of the contracts, Hasbro designates its derivative financial instruments as either cash flow or fair value hedges. The Company formally documents all relationships between hedging instruments and hedged items as well as its risk management objectives and strategies for undertaking various hedge transactions. All hedges designated as cash flow hedges are linked to forecasted transactions and the Company assesses, both at the inception of the hedge and on an ongoing basis, the effectiveness of the derivative financial instruments used in hedging transactions in offsetting changes in the cash flows of the forecasted transaction.
The Company records all derivative financial instruments, such as foreign currency exchange contracts, on the Consolidated Balance Sheets at fair value. Changes in the fair values that are designated as cash flow hedges are deferred and recorded as a component of Accumulated other comprehensive loss (“AOCL”) until the hedged transactions occur and are then recognized in the Consolidated Statements of Operations. The Company’s foreign currency contracts hedging anticipated cash flows are designated as cash flow hedges. When it is determined that a derivative financial instrument is not highly effective as a hedge, the Company discontinues hedge accounting prospectively. Any gain or loss deferred through that date remains in AOCL until the forecasted transaction occurs, at which time it is reclassified to the Consolidated Statements of Operations. To the extent the transaction is no longer deemed probable of occurring, hedge accounting treatment is discontinued and amounts deferred would be
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reclassified to the Consolidated Statements of Operations. In the event hedge accounting requirements are not met, gains and losses on such instruments are included in the Consolidated Statements of Operations. The Company uses derivative financial instruments to economically hedge intercompany loans denominated in foreign currencies. The Company does not use hedge accounting for these contracts as changes in the fair value of these contracts are substantially offset by changes in the fair value of the intercompany loans.
Recent Accounting Pronouncements
Recently Adopted Accounting Pronouncements
In December 2023, the FASB issued Accounting Standard Update ("ASU") 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures . The amendments in this update enhance the transparency and decision usefulness of income tax disclosures. This amendment requires public companies to disclose specific categories in the rate reconciliation and provide additional information for reconciling items that meet a quantitative threshold. Additionally, under the amendment, entities are required to disclose the amount of income taxes paid disaggregated by federal, state and foreign taxes, as well as disaggregated by material individual jurisdictions. Finally, the amendment requires entities to disclose income from continuing operations before income tax expense disaggregated between domestic and foreign and income tax expense from continuing operations disaggregated by federal, state and foreign. The new standard is effective for fiscal years beginning after December 15, 2024. The Company adopted this standard as part of this Annual Report. Refer to Note 13, Income Taxes, for the revised disclosures consistent with the new standard.
Accounting Standards Issued But Not Yet Adopted
In November 2024, the FASB issued ASU 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures . The new standard requires enhanced additional disclosures related to certain expense categories. The new standard is effective for fiscal years beginning after December 15, 2026. We are assessing the effect on our 2027 annual consolidated financial statement disclosures; however, adoption will not impact our consolidated balance sheets or income statements.
In September 2025, the FASB issued ASU 2025-06, Intangibles—Goodwill and Other—
Internal-Use Software (Subtopic 350-40) . The standard removes all references to the previously existing software development project stages and require entities to start capitalizing software costs when management has authorized and committed funding to a software project and it is probable that the project will be completed with its intended functionality. The new standard is effective for fiscal years beginning after December 15, 2027. Early adoption is permitted and can be applied prospectively, retrospectively, or utilizing a modified transition approach. We are currently assessing the impact of this ASU on our consolidated financial statements.
All other ASUs issued but not yet adopted were assessed and determined to be not applicable or are not expected to have a material impact on our consolidated financial statements or financial statement disclosures.

(2)     Revenue Recognition
Contract Assets and Liabilities
In the ordinary course of business, the Company enters into contracts to license certain of the Company’s intellectual property, providing licensees right-to-use or access such intellectual property for use in the production and sale of consumer products and digital game development, location-based entertainment, and for use within content for distribution over streaming platforms and for television and film. The Company also licenses owned television and film content for distribution to third parties in formats that include broadcast, digital streaming and theatrical. Through these arrangements, the Company may receive advanced royalty payments from licensees, either in advance of a licensees’ subsequent sales to customers or prior to the completion of the Company’s performance obligation. In addition, the Wizards of the Coast and Digital Gaming segment may receive advanced payments from end users of its digital games at the time of the initial purchase, through in-application purchases or through subscription services. The Company defers revenues on all licensee and digital gaming advanced payments until the respective performance obligations are satisfied.
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The Company records the aggregate deferred revenues as contract liabilities, with the current portion recorded within Accrued liabilities and the long-term portion recorded within Other liabilities in the Company’s Consolidated Balance Sheets. The Company records contract assets, primarily related to (1) minimum guarantees being recognized in advance of contractual invoicing, which are recognized ratably over the terms of the respective license periods, and (2) film and television distribution revenues recorded for content delivered, where payment will occur over the license term. The current portion of contract assets is recorded in Prepaid expenses and other current assets and the long-term portion is recorded within Other assets.
The opening and closing balances of contract assets and contract liabilities are as follows:

(In millions) 2025 2024
Contract Assets:

Balance, beginning of period $ 241.4   $ 213.3  
Balance, end of period $ 282.9   $ 241.4  

Contract Liabilities:

Balance, beginning of period $ 236.8   $ 230.8  
Balance, end of period $ 190.5   $ 236.8  

The increase in contract assets during 2025 and 2024 is primarily the result of an increase in the amount of revenues recognized in advance of contractual invoicing, offset by the impact of previously unbilled revenues that were invoiced throughout the period within the ordinary course of business.
The change in contract liabilities during 2025 and 2024 is primarily the result of an increase in the amount of advanced payments received from customers relating to performance obligations that had not yet been satisfied, offset by $ 218.0 million and $ 134.2 million of revenues recognized that were included in the beginning contract liabilities balance as of December 29, 2024 and December 31, 2023, respectively.
Unsatisfied Performance Obligations
As of December 28, 2025, revenue for unsatisfied performance obligations expected to be recognized in the future is $ 965.4 million, primarily for intellectual property to be made available in the future under existing agreements with merchandise and co-branding licensees and television station affiliates. Of this amount, we expect to recognize approximately $ 223.5 million in 2026, $ 164.5 million in 2027, $ 128.9 million in 2028, and $ 448.5 million thereafter. These amounts include only fixed consideration or minimum guarantees and do not include amounts related to (i) contracts with an original expected term of one year or less or (ii) licenses of intellectual property that are solely based on the sales of the licensee.
Accounts Receivable and Allowance for Credit Losses
The Company’s balance for Accounts receivable on the Consolidated Balance Sheets as of December 28, 2025 and December 29, 2024 are primarily derived from contracts with customers. A summary of the related allowance for credit losses activity is as follows:

(In millions) 2025 2024
Balance, beginning of period
$ 25.8   $ 12.7  
Provisions/charges to income 43.8   18.9  
Amounts charged off and other ( 9.3 ) ( 4.6 )
Foreign currency impact 1.0   ( 1.2 )
Balance, end of period
$ 61.3   $ 25.8  

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Notes to Consolidated Financial Statements — (Continued)

Disaggregation of revenues
The Company disaggregates its revenues from contracts with customers by reportable segment: Wizards of the Coast and Digital Gaming, Consumer Products, and Entertainment. The Company further disaggregates revenues within its Wizards of the Coast and Digital Gaming segment by category: Tabletop Gaming and Digital and Licensed Gaming; within its Consumer Products segment by major geographic region: North America, Europe, Latin America, and Asia Pacific; and within its Entertainment segment by category: Family Brands and Film and TV. Finally, the Company disaggregates its revenues into three brand portfolios: Grow Brands, Optimize Brands, and Reinvent Brands. We believe these collectively depict how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors.
In 2025, 2024, and 2023 the Company’s largest customers were Amazon.com, Inc. and Wal-Mart, Inc. with sales to each of these customers amounting to 11 % and 9 % of consolidated net revenues in 2025, respectively. In 2024, sales to these customers amounted to 11 % and 12 %, respectively, of consolidated net revenues. In 2023, sales to each of these customers amounted to 11 % of consolidated net revenues. Net revenues from the Company’s major customers are reported within the Wizards of the Coast and Digital Gaming segment, Consumer Products segment, and the Entertainment segment.
The following table represents consolidated Wizards of the Coast and Digital Gaming segment net revenues by category:

(In millions) 2025 2024 2023
Tabletop Gaming $ 1,686.6   $ 1,039.6   $ 1,072.5  
Digital and Licensed Gaming 500.3   471.7   385.1  
Net revenues $ 2,186.9   $ 1,511.3   $ 1,457.6  

The following table represents consolidated Consumer Products segment net revenues by major geographic region:

(In millions) 2025 2024 2023
North America $ 1,421.7   $ 1,493.0   $ 1,649.1  
Europe 566.0   519.7   669.5  
Asia Pacific 249.4   286.7   256.3  
Latin America 200.5   244.5   311.5  
Net revenues $ 2,437.6   $ 2,543.9   $ 2,886.4  

The following table represents consolidated Entertainment segment net revenues by category:

(In millions) 2025 2024 2023
Family Brands $ 66.7   $ 73.7   $ 83.8  
Film and TV (1)
10.1   6.6   575.5  

Net revenues $ 76.8   $ 80.3   $ 659.3  

(1) Net revenues for Film and TV in 2023 include amounts associated with the Company's eOne Film and TV business that was sold to Lionsgate during 2023, as discussed in Note 3, Sale of Entertainment One Film and TV Business.
The following table represents consolidated net revenues by brand portfolio:

(In millions) 2025 2024 2023
Grow Brands $ 3,479.1   $ 2,797.1   $ 2,857.5  
Optimize Brands 698.2   731.5   840.6  
Reinvent Brands 524.0   606.9   768.0  
Non-Hasbro Branded Film and TV
—   —   537.2  
Net revenues $ 4,701.3   $ 4,135.5   $ 5,003.3  

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(3)     Sale of Entertainment One Film and TV Business
On December 27, 2023, the Company completed the sale of eOne Film and TV to Lionsgate, pursuant to the terms of an Equity Purchase Agreement dated August 3, 2023, among Hasbro and Lionsgate for a purchase price of $ 375.0  million in cash, subject to certain purchase price adjustments plus the assumption by Lionsgate of production financing loans. The Equity Purchase Agreement also included a holdback amount that was retained by Lionsgate upon the execution of the sale but remained recoverable by Hasbro if certain terms were not satisfied by Lionsgate within 30 days of the first anniversary of the agreement.
During the year ended December 28, 2025, the Company was informed by Lionsgate of the satisfaction of the requirements under the agreement and the final holdback amount was settled, resulting in a $ 25.0 million Loss on disposal of business on the Consolidated Statements of Operations.
During the year ended December 29, 2024, the Company recorded a $ 37.4 million Loss on disposal of business on the Consolidated Statements of Operations associated with certain purchase price and related adjustments.
During the year ended December 31, 2023, the Company recorded a $ 539.0 million Loss on disposal of business on the Consolidated Statements of Operations based on the value of the net assets held by eOne Film and TV, which included goodwill and intangible assets. The Company also recorded pre-tax cash transaction expenses of $ 35.1  million within Selling, distribution and administration expense on the Consolidated Statements of Operations for the year ended December 31, 2023.
Prior to the sale of eOne Film and TV in 2023, the operations of eOne Film and TV did not meet the criteria to be presented as discontinued operations in accordance with GAAP and eOne Film and TV did not represent an individually significant component of the Company’s business. As a result, income from operations before income taxes, attributable to eOne Film and TV, was recorded in the Company's Consolidated Statements of Operations, within the Entertainment segment, through the sale transaction closing date. The Loss before income taxes attributable to eOne Film and TV through the date of the transaction was $ 371.6  million for fiscal year 2023.

(4)     Earnings Per Common Share
The Company computes earnings per share ("EPS") in accordance with ASC Topic 260, Earnings per Share . Basic net earnings per share is computed by dividing net earnings by the weighted average number of shares outstanding for the year as well as awards that have not been issued but all contingencies have been met.
Diluted net earnings per share is similar except that the weighted average number of shares outstanding is increased by dilutive securities, and net earnings are adjusted, if necessary, for certain amounts related to dilutive securities. Dilutive securities include shares issuable upon exercise of stock options for which the market price exceeds the exercise price, less shares which could have been purchased by the Company with the related proceeds. Dilutive securities also include shares issuable under restricted stock unit award agreements. Options and restricted stock unit awards totaling 4.2 million, 1.6 million and 2.5 million for 2025, 2024, and 2023, respectively, were excluded from the calculation of diluted earnings per share because to include them would have been antidilutive. Of the fiscal 2025 and 2023 amounts, 3.6 million and 1.6  million shares would have been included in the calculation of diluted shares had the Company not had a net loss for the years ended December 28, 2025 and December 31, 2023, respectively. Assuming that these awards and options were included, under the treasury stock method, they would have resulted in an additional 1.5 million and 0.2  million shares being included in the diluted earnings per share calculation for the years ended December 28, 2025 and December 31, 2023, respectively .
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Notes to Consolidated Financial Statements — (Continued)

The following table sets forth the reconciliation of basic and diluted earnings per share:

(In millions, except per share data) 2025 2024 2023
Net (loss) earnings attributable to Hasbro, Inc.
$ ( 322.4 ) $ 385.6   $ ( 1,489.3 )

Average shares outstanding 140.2   139.4   138.8  
Effect of dilutive securities - Options and other share-based awards
—   0.9   —  
Equivalent shares 140.2   140.3   138.8  

Net (loss) earnings attributable to Hasbro, Inc. per common share

Basic $ ( 2.30 ) $ 2.77   $ ( 10.73 )
Diluted $ ( 2.30 ) $ 2.75   $ ( 10.73 )

(5)     Other Comprehensive Earnings (Loss)
Components of other comprehensive earnings (loss) are presented within the Consolidated Statements of Comprehensive Earnings (Loss), net of tax. Income tax effects are released from Accumulated other comprehensive loss ("AOCL") at the effective tax rate during the period in which the components are released.
Changes in the components of AOCL are as follows:

(In millions) Pension and
Postretirement
Amounts Derivative
Instruments
Available
for-Sale
Securities Foreign
Currency
Translation
Adjustments Total
AOCL

Balance, December 25, 2022 $ ( 3.0 ) $ ( 12.0 ) $ ( 0.1 ) $ ( 239.8 ) $ ( 254.9 )
Other comprehensive earnings (loss) before reclassifications, before tax ( 0.9 ) ( 11.4 ) —   59.4   47.1  
Income tax benefit —   2.8   —   —   2.8  
Other comprehensive earnings (loss), before reclassifications ( 0.9 ) ( 8.6 ) —   59.4   49.9  

Reclassifications from AOCL to earnings, before tax ( 0.4 ) 5.7   —   —   5.3  
Income tax (expense) benefit 0.1   ( 1.9 ) —   —   ( 1.8 )
Reclassifications from AOCL to earnings ( 0.3 ) 3.8   —   —   3.5  
Other comprehensive earnings (loss)
( 1.2 ) ( 4.8 ) —   59.4   53.4  
Balance, December 31, 2023 $ ( 4.2 ) $ ( 16.8 ) $ ( 0.1 ) $ ( 180.4 ) $ ( 201.5 )

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Notes to Consolidated Financial Statements — (Continued)

(In millions) Pension and
Postretirement
Amounts Derivative
Instruments
Available
for-Sale
Securities Foreign
Currency
Translation
Adjustments Total
AOCL

Other comprehensive (loss) earnings before reclassifications, before tax ( 3.4 ) 11.1   —   ( 48.8 ) ( 41.1 )
Income tax (expense) benefit 0.5   ( 3.8 ) —   —   ( 3.3 )
Other comprehensive (loss) earnings, before reclassifications ( 2.9 ) 7.3   —   ( 48.8 ) ( 44.4 )

Reclassifications from AOCL to earnings, before tax ( 1.0 ) 0.7   —   —   ( 0.3 )
Income tax (expense) benefit 0.1   ( 0.3 ) —   —   ( 0.2 )
Reclassifications from AOCL to earnings ( 0.9 ) 0.4   —   —   ( 0.5 )
Other comprehensive (loss) earnings ( 3.8 ) 7.7   —   ( 48.8 ) ( 44.9 )
Balance, December 29, 2024 $ ( 8.0 ) $ ( 9.1 ) $ ( 0.1 ) $ ( 229.2 ) $ ( 246.4 )

Other comprehensive earnings (loss) before reclassifications, before tax 0.9   ( 16.0 ) —   40.1   25.0  
Income tax benefit (expense) ( 0.3 ) 3.5   —   —   3.2  
Other comprehensive earnings (loss), before reclassifications 0.6   ( 12.5 ) —   40.1   28.2  

Reclassifications from AOCL to earnings, before tax 0.4   0.5   —   —   0.9  
Income tax expense ( 0.2 ) —   —   —   ( 0.2 )
Reclassifications from AOCL to earnings 0.2   0.5   —   —   0.7  
Other comprehensive earnings (loss)
0.8   ( 12.0 ) —   40.1   28.9  
Balance, December 28, 2025 $ ( 7.2 ) $ ( 21.1 ) $ ( 0.1 ) $ ( 189.1 ) $ ( 217.5 )

Gains (Losses) on Derivative Instruments
As of December 28, 2025, the Company had remaining net deferred losses on foreign currency forward contracts, net of tax, of $ 8.3 million in AOCL. These instruments hedge payments related to inventory purchased in the fourth quarter of 2025 or forecasted to be purchased in 2026, intercompany expenses expected to be paid or received during 2026 and cash receipts for sales made at the end of the fourth quarter of 2025 or forecasted to be made in 2026. These amounts will be reclassified into the Consolidated Statements of Operations upon the sale of the related inventory or recognition of the related sales or expenses.
In addition to foreign currency forward contracts, the Company entered into hedging contracts on future interest payments related to the 5.10 % Notes due 2044 (refer to Note 12, Long-Term Debt and Other Financing). At the date of debt issuance, these contracts were terminated and the fair value on the date of settlement was deferred in AOCL and is being amortized to interest expense over the life of the related notes using the effective interest rate method. As of December 28, 2025, deferred losses, net of tax, of $ 12.8 million related to these instruments remained in AOCL. For each of the years ending December 28, 2025, December 29, 2024, and December 31, 2023, losses, net of tax, of $ 0.7 million related to these hedging instruments were reclassified from AOCL to net earnings.
Of the amounts included in AOCL as of December 28, 2025, the Company expects net losses of approximately $ 7.2 million to be reclassified to the Consolidated Statements of Operations within the next 12 months. However, the amount ultimately realized in earnings is dependent on the fair value of the hedging instruments on the settlement dates.
Refer to Note 19, Derivative Financial Instruments, to the consolidated financial statements for additional discussion on reclassifications from AOCL to earnings.
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(6)     Property, Plant and Equipment

(In millions) 2025 2024
Land and improvements $ 3.6   $ 3.4  
Buildings and improvements 213.8   201.0  
Machinery, equipment and software 508.8   554.9  
Tools, dies and molds 377.3   365.3  
Right-of-use assets 204.3   204.7  
Total property, plant and equipment, gross 1,307.8   1,329.3  
Less: accumulated depreciation and right-of-use asset amortization ( 1,060.0 ) ( 1,026.7 )
Total property, plant and equipment, net $ 247.8   $ 302.6  

Expenditures for maintenance and repairs which do not materially extend the life of the assets are charged to operations as incurred. In 2025, 2024 and 2023 the Company recorded $ 69.5 million, $ 94.7 million and $ 127.7 million, respectively, of depreciation expense. Refer to Note 18, Leases, for additional discussion on right-of-use assets.

(7)     Software Development Costs
Capitalized software development costs include both direct costs for internally developed titles and payments to third-party software developers under development agreements that have been incurred by the Company subsequent to establishing the technological feasibility of a software title. Prior to establishing technological feasibility of a software title, any costs incurred are recorded as product development expenses.
As of December 28, 2025 and December 29, 2024, $ 385.6 million and $ 264.4 million, of software development costs were capitalized within Other assets in the Consolidated Balance Sheets, respectively.
Amortization and impairments of software titles that have been released are recorded within Cost of sales within the Consolidated Statements of Operations. The Company did not release any software titles during 2025, 2024 or 2023 that were previously capitalized on the Consolidated Balance Sheets, and therefore there was no amortization or impairments recognized in the Consolidated Statement of Operations. Write-offs of unreleased titles are recorded within Selling, distribution and administration. The Company did not write-off any unreleased titles in 2025 or 2023. Approximately $ 24.4 million of write-offs occurred during 2024, relating to the cancellation of two unreleased titles.

(8)     Goodwill and Intangible Assets
Goodwill
Changes in the carrying amount of goodwill, by operating segment are as follows:

(In millions) Wizards of the Coast and Digital Gaming Consumer Products Entertainment Total
Balance, December 31, 2023 $ 371.7   $ 1,582.3   $ 325.2   $ 2,279.2  

Foreign exchange translation ( 0.7 ) ( 0.3 ) —   ( 1.0 )
Balance, December 29, 2024 371.0   1,582.0   325.2   2,278.2  
Impairment —   ( 1,021.9 ) —   ( 1,021.9 )
Foreign exchange translation ( 0.5 ) 0.9   —   0.4  
Balance, December 28, 2025 $ 370.5   $ 561.0   $ 325.2   $ 1,256.7  

The Company performs an annual impairment assessment on goodwill. This annual impairment assessment is performed in the fourth quarter of the Company’s fiscal year. During the fourth quarter of 2025, the Company performed a qualitative goodwill assessment with respect to each of its reporting units. Based on its qualitative assessments, the Company determined it is not more likely than not that the carrying values exceed the fair values for any of its reporting units. As a result, the Company concluded it was not necessary to perform a quantitative test for impairment of goodwill for any reporting unit.
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In addition to the annual test, if an event occurs or circumstances change that indicate that the carrying value of a reporting unit may not be recoverable, the Company will perform an interim impairment test. Due to increased tariffs, including reciprocal tariffs announced by the U.S. government in April 2025, the escalation of ongoing trade policy disputes between international governments, the financial performance of certain reporting units being lower than previously forecasted, and other macroeconomic headwinds, during the second quarter of 2025, the Company noted downward revisions to operating income and cash flow forecasts for certain of its reporting units within the Consumer Products and Entertainment segments. As a result, during the second quarter of 2025, the Company performed an interim quantitative impairment test for the North America, Europe, Asia Pacific, and Latin America Consumer Products reporting units, as well as the Family Brands reporting unit within the Entertainment segment. Additionally, due to our ongoing transformation, we concluded that, as of the second quarter of 2025, the North America, Europe, Asia Pacific, and Latin America reporting units had similar economic characteristics and should be aggregated for purposes of testing goodwill for impairment. Our conclusion was based on a detailed analysis of the aggregation criteria set forth in ASC Topic 280, Segment Reporting , and in ASC Topic 350, Intangibles - Goodwill and Other . These reporting units serve similar clients and have similar products, and as of the second quarter of 2025 had similar sourcing and distribution methods that along with our ongoing transformation has resulted in similar economic characteristics.
As a result of the quantitative tests performed prior to and following the aggregation, the Company determined that the carrying values of our regional Consumer Products reporting units exceeded their expected fair values and recorded pre-tax non-cash impairment charges of $ 1,021.9 million within the Consolidated Statements of Operations for the fiscal year ended 2025. The fair values of North America and Europe were determined considering a discounted cash flow model which is primarily based on management’s future revenue and cost estimates, which included the estimated impact of tariff policies in effect and the related macroeconomic environment, and a discount rate. The fair values of the Asia Pacific and Latin America reporting units were determined considering a discounted cash flow model weighted equally with the market approach, which is primarily based on multiples of comparable public companies. No impairments were recorded related to the Family Brands reporting unit.
As of December 28, 2025, $ 325.2 million of goodwill is allocated to the Family Brands reporting unit. As of the date of the most recent quantitative test, which occurred during the second quarter of 2025, the fair value of our Family Brands reporting unit, within the Entertainment segment, exceeded the carrying value of that reporting unit by approximately 15 %. The fair value of the Family Brands reporting unit was determined considering a discounted cash flow model weighted equally with the market approach, which is primarily based on multiples of comparable public companies. For the Family Brands reporting unit, critical assumptions included a discount rate approximating 9.5 %, a terminal value revenue growth rate of 3.0 %, and a terminal operating profit margin consistent with levels achieved in recent historical periods when excluding one-time impairment and disposal charges. Although we believe the assumptions and estimates made were reasonable and appropriate, these estimates are based on a number of factors including historical experience and information obtained from reporting unit management. Actual results could differ from these estimates, especially given uncertainty related to tariffs, global trade policy, and global macroeconomic conditions.
The Company did not record a goodwill impairment charge in 2024. In 2023, the Company recorded $ 1,191.2 million of non-cash goodwill impairment charges related to the Family Brands and Film and TV reporting units within the Company's Entertainment segment, as the carrying value of the reporting units exceeded their expected fair value, as determined using a discounted cash flow model which was primarily based on management’s future revenue and cost estimates.
Other Intangible Assets, Net
The following table represents a summary of the Company’s other intangible assets:

(In millions) 2025
2024
Acquired product rights $ 793.2   $ 863.9  

Accumulated amortization ( 412.2 ) ( 421.2 )
Amortizable intangible assets 381.0   442.7  
Product rights with indefinite lives 75.7   75.7  
Total other intangibles assets, net $ 456.7   $ 518.4  

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Notes to Consolidated Financial Statements — (Continued)

Certain intangible assets relating to rights obtained in the Company’s acquisition of Milton Bradley in 1984 and Tonka in 1991 are not amortized. These rights were determined to have indefinite lives and are included as product rights with indefinite lives in the table above. The Company tests these assets for impairment on an annual basis in the fourth quarter of each year or when an event occurs or circumstances change that indicate that the carrying value may not be recoverable. The Company completed its annual impairment tests of indefinite-lived intangible assets in the fourth quarter of 2025, concluding that there was no impairment of these assets. The Company did no t record any impairments of its indefinite-lived intangible assets in 2025, 2024, or 2023.
The Company’s other intangible assets are amortized over their remaining useful lives, and accumulated amortization of these other intangibles is reflected in Other intangible assets, net in the accompanying Consolidated Balance Sheets. Other intangible assets are reviewed for indications of impairment whenever events or changes in circumstances indicate the carrying value may not be recoverable. The Company did not record any impairments of its definite-lived intangible assets in 2025 or 2024.
In 2023, the Company recorded a non-cash intangible asset impairment charge of $ 65.0  million related to the eOne Trademark associated with the Film and TV reporting unit. Additionally, during 2023, the Company recorded a $ 51.0  million impairment charge related to the PJ MASKS definite-lived intangible asset based upon lower revenue forecasts for this intangible asset. Both charges were recorded in Selling, distribution and administration expense within the Consolidated Statements of Operations in the Entertainment segment.
The Company currently estimates amortization expense related to the above intangible assets for the next five years to be approximately:

(In millions)
2026 $ 58.4  
2027 58.4  
2028 57.3  
2029 56.6  
2030 56.6  
Thereafter 93.7  
Total $ 381.0  

(9)     Equity Method Investment
The Company owns an interest in a joint venture, Discovery Family Channel (“DFC”), with Warner Bros. Discovery, Inc. ("WBD"). The Company has determined that it does not meet the control requirements to consolidate DFC and accounts for the investment using the equity method of accounting. DFC was established to create a cable television network in the United States dedicated to high-quality children’s and family entertainment. In October 2009, the Company purchased an initial 50 % share in DFC for a payment of $ 300.0 million and certain future tax payments based on the value of certain tax benefits expected to be received by the Company. On September 23, 2014, the Company and WBD amended their relationship with respect to DFC and WBD increased its equity interest in DFC to 60 % while the Company retained a 40 % equity interest in DFC.
During the fourth quarter of 2024 and 2023, the Company reviewed its investment in DFC for an other than temporary decline in value of the investment due to decreases in forecasted revenues. The Company determined that the fair value of the Company's interest in the joint venture was less than its carrying value, and as such, recorded an impairment loss of $ 80.0  million and $ 1.3  million, respectively, which is included in Other (income) expense, net in the Consolidated Statements of Operations. The Company utilized the discounted cash flow method under the income approach to estimate the fair value of DFC, which requires assumptions and estimates that include: future annual cash flows, income tax rates, discount rates, estimated growth rates, and other market factors. Accelerating changes in the cable distribution industry, including technological changes and expanding options for digital content offerings, have resulted in the fragmentation of viewership, declines in subscribers to the traditional cable bundle, and pricing pressures. These factors led to the lower valuation of DFC as compared to its carrying value. As of December 28, 2025, the Company had no remaining investment balance for DFC. As of December 29, 2024, the Company’s investment in DFC had a balance of $ 5.6 million.
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The Company’s share in the earnings of DFC for the years ended 2025, 2024 and 2023 totaled $ 1.8 million, $ 9.4 million and $ 10.9 million, respectively, and is included as a component of Other (income) expense, net in the Consolidated Statements of Operations. The Company did not enter into any other material transactions with DFC during 2025, 2024 and 2023.
The Company also has a related liability due to WBD under the existing tax sharing agreement. The balance of the associated liability, including imputed interest, was $ 0.3 million and $ 3.0 million as of December 28, 2025 and December 29, 2024, respectively, and is included as a component of Other liabilities in the accompanying Consolidated Balance Sheets. During 2025, 2024 and 2023, the Company made payments to WBD under this tax sharing agreement in the amount of $ 2.8 million, $ 6.7 million and $ 5.7 million, respectively.

(10)     Investments in Productions
Investments in productions are predominantly monetized on a title-by-title basis and are recorded within Other assets in the Company's Consolidated Balance Sheets, to the extent they are considered recoverable against future revenues. These amounts are being amortized to program cost amortization using a model that reflects the consumption of the asset as it is released through various channels including broadcast licenses, theatrical release and home entertainment. Amounts capitalized are reviewed periodically on an individual title basis and any portion of the unamortized amount that appears not to be recoverable from future net revenues is expensed as part of program cost amortization during the period the loss becomes evident.
The Company's unamortized investments in productions consisted of the following:

(In millions) 2025 2024
Investment in Films and Television Programs:
Individual monetization:

Released, net of amortization $ 63.2   $ 68.4  

In production 0.4   11.5  
Pre-production 4.0   7.4  
Total individual monetization 67.6   87.3  
Film/TV group monetization:

Released, net of amortization 29.8   37.5  
In production 0.3   —  
Total film/TV group monetization 30.1   37.5  
Total program investments $ 97.7   $ 124.8  

The Company's program cost amortization consisted of the following:

(In millions) 2025 2024 2023
Individual monetization $ 32.4   $ 40.4   $ 431.8  
Film/TV group monetization 3.4   8.9   17.1  
Total program cost amortization $ 35.8   $ 49.3   $ 448.9  

Based on management’s total revenue estimates as of December 28, 2025, the Company's expected future amortization expenses for capitalized programming costs over the next three years are as follows:

(In millions) 2026 2027 2028

Released - Individual monetization $ 19.3   $ 14.5   $ 13.7  
Released - Film/TV group monetization 6.7   7.2   7.7  
Total future amortization expense $ 26.0   $ 21.7   $ 21.4  

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(11)     Additional Balance Sheet Information
Components of accrued liabilities are as follows:

(In millions) 2025 2024
Accrued royalties expense $ 207.7   $ 160.5  
Contract liabilities - current 190.5   236.5  
Payroll and management incentives 158.2   121.1  
Advertising 88.2   58.7  
Other taxes 67.4   60.9  
General vendor accruals 46.8   46.1  
Freight 44.2   27.0  
Supplier cancellation charges 32.9   48.9  
Lease liability - current 30.6   29.8  
Interest 29.6   31.3  
Defined contribution plans 27.6   21.4  
Restructuring 19.3   46.9  
Professional fees 17.3   18.2  
Accrued income taxes 14.4   93.3  
Insurance 9.0   11.3  
Participation and residuals 6.8   8.8  
Accrued expenses - productions 0.7   0.7  

Other 47.5   38.4  
Total accrued liabilities $ 1,038.7   $ 1,059.8  

Prepaid expenses and other current assets include the current contract assets of $ 142.4 million and $ 179.5 million as of December 28, 2025 and December 29, 2024 , respectively.

Other assets include deferred tax assets of $ 286.8 million and $ 424.6 million as of December 28, 2025 and December 29, 2024 , respectively.

(12)     Long-Term Debt and Other Financing
Components of Long-term debt are as follows:

(In millions) 2025 2024
Carrying
Cost Fair Value Carrying
Cost Fair Value
3.90 % Notes Due 2029
$ 900.0   $ 885.2   $ 900.0   $ 845.6  
6.05 % Notes Due 2034
500.0   530.7   500.0   502.2  
6.35 % Notes Due 2040
500.0   526.1   500.0   507.5  
3.55 % Notes Due 2026
497.0   495.3   591.9   578.0  
3.50 % Notes Due 2027
475.0   470.3   500.0   481.5  
5.10 % Notes Due 2044
300.0   267.5   300.0   261.3  
6.60 % Debentures Due 2028
109.9   116.4   109.9   114.4  
Total long-term debt 3,281.9   3,291.5   3,401.8   3,290.5  
Less: Deferred debt expenses 17.0   —  21.0   — 
Less: Current portion of long-term debt 497.0   495.3   —   — 
Long-term debt $ 2,767.9   $ 2,796.2   $ 3,380.8   $ 3,290.5  

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Notes to Consolidated Financial Statements — (Continued)

In November 2019, in conjunction with the Company's acquisition of eOne, the Company issued an aggregate of $ 2.4 billion of senior unsecured debt securities (the "Notes") consisting of the following tranches: $ 300.0 million of notes due 2022 (the "2022 Notes") that bear interest at a fixed rate of 2.60 %, $ 500.0 million of notes due 2024 (the "2024 Notes") that bear interest at a fixed rate of 3.00 %, $ 675.0 million of notes due 2026 (the "2026 Notes") that bear interest at a fixed rate of 3.55 %, and $ 900.0 million of notes due 2029 (the "2029 Notes") that bear interest at a fixed rate of 3.90 %. Net proceeds from the issuance of the Notes, after deduction of $ 20.0 million of underwriting discount and fees, totaled $ 2.4 billion. These costs are being amortized over the life of the Notes outstanding, which range from five years to ten years from the date of issuance. During fiscal year 2021 and fiscal year 2024, the Company repaid in full its 2022 Notes and 2024 Notes, respectively.
The Notes bear interest at the stated rates but may be subject to upward adjustment if the credit rating of the Company is reduced by Moody's or Standard & Poor's. The adjustment can be from 0.25 % to 2.00 % based on the extent of the ratings decrease. The Company may redeem the Notes at its option at the greater of the principal amount of the Notes or the present value of the remaining scheduled payments discounted using the effective interest rate on applicable U.S. Treasury bills at the time of repurchase, plus 30 basis points (in the case of the 2026 Notes) or 35 basis points (in the case of the 2029 Notes). In addition, on and after August 19, 2029 for the 2029 Notes, such series of Notes will be redeemable, in whole at any time or in part from time to time, at the Company's option at a redemption price equal to 100 % of the principal amount of the Notes to be redeemed plus any accrued and unpaid interest.
In May 2024, the Company issued an aggregate $ 500.0  million of senior unsecured debt securities that bear a fixed interest rate of 6.05 % due 2034 (the "2034 Notes"). In connection with the issuance of the 2034 Notes, the 2034 Notes were issued with an original issuance discount of $ 1.4  million and the Company capitalized $ 5.3  million of debt issuance costs. The original issuance discount and debt issuance costs are amortized over the term of the 2034 Notes.
During 2025, the Company repurchased $ 94.9 million of its 2026 Notes and $ 25.0 million of its 2027 Notes, recording a total gain on extinguishment of $ 1.7 million, which was recorded in Other (income) expense, net in the Consolidated Statements of Operations. During 2024, the Company repurchased $ 83.1 million of its 2026 Notes and recorded a gain on extinguishment of $ 1.8 million, which was recorded in Other (income) expense, net in the Consolidated Statements of Operations.
The Company's borrowings have the following future contractual maturities:

(In millions)
2026 $ 497.0  
2027 475.0  
2028 109.9  
2029 900.0  
2030 —  
Thereafter 1,300.0  
Total $ 3,281.9  

The fair values of the Company’s long-term debt are considered Level 2 fair values (refer to Note 15, Fair Value of Financial Instruments, for further discussion of the fair value hierarchy) and are measured based on quoted prices at the end of the reporting periods in markets that are not active. The Company believes that this is the best information available for use in the fair value measurement.
Other Financing Arrangements
As of December 28, 2025, Hasbro had available an unsecured revolving credit agreement (see Amended Revolving Credit Agreement below) in the amount of $ 1.25 billion and unsecured uncommitted lines of credit from various banks approximating $ 186.8 million. The Company had no outstanding short-term borrowings under, or supported by, these lines of credit as of December 28, 2025 and December 29, 2024. During 2025 and 2024, Hasbro’s working capital needs were primarily fulfilled by cash available and cash generated from operations.
The Company's third amended and restated revolving credit agreement with Bank of America, as administrative agent, swing line lender, a letter of credit issuer and a lender and certain other financial institutions, as lenders
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thereto (the "Amended Revolving Credit Agreement") provides the Company with commitments having a maximum aggregate principal amount of $ 1.25 billion. The Amended Revolving Credit Agreement contains certain financial covenants setting forth leverage and coverage requirements, and certain other limitations typical of an investment grade facility, including with respect to liens, mergers and incurrence of indebtedness. It also provides for a potential additional incremental commitment increase of up to $ 500.0 million subject to agreement of the lenders.
Loans under the revolving credit facility bear interest, at the Company’s option, at either the Adjusted Term Benchmark Rate, the Base Rate, or the Daily Benchmark Rate (each determined in accordance with the Amended Revolving Credit Agreement). In each case there is also a spread added to the rate, which fluctuates based upon the more favorable of the Company’s long-term debt ratings and the Company’s leverage. The Company is also required to pay a commitment fee in respect to the unused commitments under the facility, the rate for which is also determined based upon the more favorable of the Company's long-term debt ratings and leverage. The Amended Revolving Credit Agreement has a maturity date of September 20, 2028.
The Amended Revolving Credit Agreement contains affirmative and negative covenants typical of this type of facility, including: (a) restrictions on the Company’s and its domestic subsidiaries’ ability to allow liens on their assets, (b) restrictions on the incurrence of indebtedness, (c) restrictions on the Company’s and certain of its subsidiaries’ ability to engage in certain mergers, (d) the requirement that the Company maintain a Consolidated Interest Coverage Ratio of no less than 3.00 :1.00 as of the end of any fiscal quarter and (e) the requirement that the Company maintain: a Consolidated Total Leverage Ratio of no more than (i) 3.50 :1.00 for the quarter ended December 31, 2023, (ii) 4.00 :1.00 for each of the quarters ended September 30, 2023 and December 31, 2023, (iii) 3.75 :1.00 for each of the first, second and fourth fiscal quarters of each year (other than 2023) and (iv) 4.00 :1:00 for the third fiscal quarter of each year (other than 2023).
On February 20, 2026, the Company amended and restated the Amended Revolving Credit Agreement which extended the maturity date through February 2031 and revised the aggregate principal amount to $ 1.1  billion. Substantially all of the other terms of the Amended Revolving Credit Agreement remain the same. The February 2026 Amended Revolving Credit Agreement contains affirmative and negative covenants typical of this type of facility, including: (a) restrictions on the Company’s and its domestic subsidiaries’ ability to allow liens on their assets, (b) restrictions on the incurrence of indebtedness, (c) restrictions on the Company’s and certain of its subsidiaries’ ability to engage in certain mergers, (d) the requirement that the Company maintain a Consolidated Interest Coverage Ratio of no less than 3.00 :1.00 as of the end of any fiscal quarter and (e) the requirement that the Company maintain: a Consolidated Total Leverage Ratio of no more than (i) 3.75 :1.00 for each of the first, second and fourth fiscal quarters of each year and (ii) 4.00 :1:00 for the third fiscal quarter of each year.
The Company was in compliance with all covenants under the Amended Revolving Credit Agreement as of and for the year ended December 28, 2025. The Company had no borrowings outstanding under this credit facility as of December 28, 2025.
In June 2025, the Company entered into an uncommitted money market line of credit agreement (the “Money Market Credit Facility”) to provide the Company with access to short-term cash advances with an aggregate principal amount of up to $ 100.0 million. The Money Market Credit Facility is intended to support the Company’s short-term liquidity needs, including working capital and general corporate purposes.
Under the terms of the Money Market Credit Facility, each loan borrowing is subject to the lender’s sole and absolute discretion with no obligation to fund and bears interest at a variable rate agreed upon at the time of each borrowing. The Money Market Credit Facility has no commitment fee or termination fee. Each advance under the Money Market Credit Facility has a maturity date of less than 90 days from the borrowing date, and the Company may voluntarily prepay any outstanding advances without premium or penalty, subject to reimbursement of actual breakage costs, if any. The Money Market Credit Facility may be terminated by the lender at any time upon written notice and is subject to customary representations, warranties, and covenants. There was no outstanding balance as of December 28, 2025.
The Company also has an agreement with a group of banks providing a commercial paper program (the “Program”). Under the Program, at the Company’s request and subject to market conditions, the banks may either purchase from the Company, or arrange for the sale by the Company of, unsecured commercial paper notes. Borrowings under the Program are supported by the aforementioned unsecured committed line of credit and the Company may issue notes from time to time up to an aggregate principal amount outstanding at any given time of $ 1.0 billion. The maturities of the notes may vary but may not exceed 397 days. The notes are sold under customary terms in the
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Notes to Consolidated Financial Statements — (Continued)

commercial paper market and will be issued at a discount to par, or alternatively, will be sold at par and will bear varying interest rates based on a fixed or floating rate basis. The interest rates will vary based on market conditions and the ratings assigned to the notes by the credit rating agencies at the time of issuance. Subject to market conditions, the Company intends to utilize the Program as its primary short-term borrowing facility and does not intend to sell unsecured commercial paper notes in excess of the available amount under the revolving credit agreement. If, for any reason, the Company is unable to access the commercial paper market, the Company intends to use the revolving credit agreement to meet the Company's short-term liquidity needs. As of December 28, 2025 and December 29, 2024, the Company did not have any notes outstanding under the Program.
Hasbro had unused open letters of credit and related instruments of approximately $ 11.7 million and $ 11.3 million at December 28, 2025 and December 29, 2024, respectively.
Supplier Finance Program
The Company also has a supplier finance program which provides participating suppliers the option of receiving payment in advance of an invoice due date, to be paid by certain administering banks, on the basis of invoices that the Company has confirmed as valid and approved. The Company’s obligation is to make payment in the invoice amount negotiated with participating suppliers, to the administering banks on the invoice due date. The Company’s suppliers are not required to participate in the supplier finance program. The early payment transactions between the Company’s supplier and the administering bank are subject to an agreement between those parties, and the Company does not participate in any financial aspect of the agreements between the Company’s suppliers and the administering banks. The Company has not pledged any assets to the administering bank under the supplier financing program. The Company or the administering bank may terminate the agreement upon at least 30 days’ written notice.
The amount of obligations confirmed under the program that remain unpaid by the Company were $ 45.7 million, and $ 66.2 million as of December 28, 2025 and December 29, 2024, respectively. These obligations are presented within Accounts payable in our Consolidated Balance Sheets and the activity related to this program is reflected within the operating activities section of the Consolidated Statements of Cash Flows. A summary of the activity related to the obligations are as follows:

(In millions) 2025 2024
Balance, beginning of period $ 66.2   $ 43.3  
Additions 335.4   387.7  
Settlements ( 355.9 ) ( 364.8 )
Balance, ending of period $ 45.7   $ 66.2  

(13)     Income Taxes
The components of (Loss) earnings before income taxes, determined by tax jurisdiction, are as follows:

(In millions) 2025 2024 2023
United States $ ( 160.8 ) $ 325.2   $ ( 356.9 )
International 58.8   171.8   ( 1,352.2 )
Total (loss) earnings before income taxes
$ ( 102.0 ) $ 497.0   $ ( 1,709.1 )

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Income taxes attributable to (Loss) earnings before income taxes are:

(In millions) 2025 2024 2023
Current:

United States $ 2.2   $ 47.0   $ ( 29.0 )
State and local ( 0.6 ) 11.0   ( 6.4 )
International 56.0   65.2   57.6  
57.6   123.2   22.2  
Deferred:

United States 125.9   ( 2.2 ) ( 36.3 )
State and local 21.3   ( 9.7 ) ( 3.0 )
International 11.4   ( 8.7 ) ( 204.2 )
158.6   ( 20.6 ) ( 243.5 )
Total tax expense (benefit) $ 216.2   $ 102.6   $ ( 221.3 )

The following table presents the 2025 rate reconciliation between Income tax expense and statutory expectations, after the adoption of ASU 2023-09:

2025
(In millions) Amount Percent
U.S. federal statutory tax rate
$ ( 21.4 ) 21.0   %
State and local income taxes, net of federal income tax effect (1)
16.3   ( 16.0 )
Foreign tax effects

Canada

Difference in statutory tax rate
( 0.3 ) 0.3  

Quebec income taxes
1.7   ( 1.7 )
Other
0.6   ( 0.6 )
Switzerland

Difference in statutory tax rate
( 22.7 ) 22.3  
Canton income taxes
10.2   ( 10.0 )

Swiss deferred tax asset translation
( 4.0 ) 3.9  

Nontaxable income
( 2.1 ) 2.0  
Other
( 0.7 ) 0.7  
China

Difference in statutory tax rate
0.5   ( 0.5 )
Withholding tax
8.0   ( 7.8 )
Other
0.3   ( 0.3 )
Germany

Difference in statutory tax rate
( 0.1 ) 0.1  
Pension adjustment
( 1.3 ) 1.3  
Other
( 0.6 ) 0.6  
United Kingdom

Difference in statutory tax rate
1.9   ( 1.9 )
Change in valuation allowance
3.9   ( 3.8 )
Tax credits
( 13.4 ) 13.1  
Write-off of intangibles
4.5   ( 4.4 )
Nondeductible expenses
7.0   ( 6.8 )
Share-based compensation
( 0.4 ) 0.4  
Other
0.6   ( 0.6 )

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2025
(In millions) Amount Percent
Mexico

Difference in statutory tax rate
3.3   ( 3.2 )
Nondeductible Items
2.2   ( 2.2 )
Withholding tax
2.0   ( 2.0 )
Other
0.1   ( 0.1 )
Netherlands

Difference in statutory tax rate
0.1   ( 0.1 )
Nondeductible Items
1.3   ( 1.3 )
Other Foreign Jurisdictions
1.9   ( 1.9 )

Effect of cross-border tax laws

Subpart F inclusion
9.5   ( 9.3 )
Global Intangible Low-Taxed Income (GILTI), net of Sec. 250 deduction
5.7   ( 5.6 )
Foreign-derived intangible income (FDII) deduction
( 4.2 ) 4.2  
Withholding tax
1.6   ( 1.6 )
Tax credits

Foreign tax credits
( 14.2 ) 13.9  
Research & development tax credits ( 6.4 ) 6.3  
Change in valuation allowance
5.4   ( 5.3 )
Changes in unrecognized tax benefits
2.9   ( 2.8 )
Nontaxable or nondeductible items

Goodwill impairment
209.8   ( 205.8 )
Officer's compensation
9.8   ( 9.6 )
Share-based compensation
1.7   ( 1.7 )
Other
( 1.9 ) 1.8  
Other adjustments

Post-disposition tax refund
( 2.3 ) 2.3  
Other
( 0.6 ) 0.6  
Effective tax rate $ 216.2   ( 212.1 ) %

(1) State taxes in California , New York and Tennessee made up the majority (greater than 50%) of the tax effect in this category.
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Notes to Consolidated Financial Statements — (Continued)

The following table presents the reconciliation of the statutory United States federal income tax rate to Hasbro’s effective income tax rate during 2024 and 2023, prior to the adoption of ASU 2023-09:

2024 2023
Statutory income tax rate 21.0   % 21.0   %
State and local income taxes, net 0.2   0.5  
Tax on international earnings 1.3   6.7  
Domestic tax on foreign earnings ( 4.0 ) 1.3  
Change in unrecognized tax benefits —   ( 0.3 )
U.S. capital loss 6.6   22.0  
Change in valuation allowance ( 4.5 ) ( 23.3 )
Share-based compensation 0.5   ( 0.3 )
Research and development tax credits ( 1.5 ) 0.3  

Officers' compensation 0.9   ( 0.3 )
Loss on disposal of business 1.0   ( 3.4 )
Goodwill impairment
—   ( 11.8 )
Other, net ( 0.8 ) 0.5  
Effective tax rate 20.7   % 12.9   %

The effective income tax rate for 2025 was ( 212.1 )% compared to 20.7 % for 2024. The change in the effective income tax rate was primarily driven by a non-cash impairment of goodwill recorded in 2025 with no material tax benefit. The increase in the provision for income taxes was primarily due to U.S. Global Intangible Low-Taxed Income ("GILTI") and Subpart F inclusions, as well as additional valuation allowances generated in 2025.
Components of deferred income tax expense (benefit) arise from various temporary differences and relate to items included in the Consolidated Statements of Operations as well as items recognized in Other comprehensive earnings (loss).
The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities as of December 28, 2025 and December 29, 2024 are as follows:

(In millions) 2025 2024
Deferred tax assets:
Loss and credit carryforwards $ 451.5   $ 426.6  
Depreciation and amortization of long-lived assets 186.1   183.1  
Other compensation 46.4   51.9  
Accounts receivable 32.2   31.0  
Accrued expenses
16.9   18.8  
Inventories 13.8   17.4  
Royalty expense
10.1   3.8  
Operating leases 9.8   7.2  
Pension 7.3   7.3  
Postretirement benefits 5.8   5.7  
Interest rate hedge 4.2   4.4  
Tax sharing agreement 0.5   0.3  
Deferred revenue —   0.3  
Capitalized research and experimentation —   116.5  
Interest expense limitation —   15.6  

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(In millions) 2025 2024
Other 3.1   0.8  
Deferred tax assets, gross
787.7   890.7  
Deferred tax liabilities:
Depreciation and amortization of long-lived assets 76.5   94.8  
Capitalized research and experimentation
33.4   —  
Operating leases 6.4   4.9  
Prepaid expenses 5.5   4.1  
Equity method investment —   1.9  
Other 12.0   14.6  
Deferred tax liabilities, gross
133.8   120.3  
Valuation allowance ( 426.4 ) ( 412.5 )
Deferred income taxes, net
$ 227.5   $ 357.9  

As of December 28, 2025, the Company has loss and credit carryforwards of $ 451.5 million, compared to $ 426.6 million at December 29, 2024. The most significant amount of the loss and credit carryforwards as of December 28, 2025 and December 29, 2024 relates to U.S. capital losses of $ 338.4 million resulting from the sale of the eOne Film and TV business during 2023. Other significant loss and credit carryforwards relate to tax attributes of entities that have historically operated at losses in certain jurisdictions, as well as certain state tax attributes. The U.S. capital loss has a carryforward period of five years and will expire if not utilized before 2029. Some U.S. federal, state and international loss and credit carryforwards expire at various dates throughout 2026 while others have an indefinite carryforward period.
The recoverability of these future tax deductions and credits is evaluated by assessing the adequacy of future expected taxable income, of the appropriate character, from all sources, including taxable income in prior carryback years, reversal of taxable temporary differences, forecasted operating earnings and available tax planning strategies. To the extent the Company does not consider it more likely than not that a deferred tax asset will be recovered, a valuation allowance is generally established. To the extent that a valuation allowance was established and it is subsequently determined that it is more likely than not that the deferred tax assets will be recovered, the change in the valuation allowance is recognized in the Consolidated Statements of Operations.
The Company has a valuation allowance for certain net deferred tax assets at December 28, 2025 of $ 426.4 million, compared to $ 412.5 million at December 29, 2024. The change primarily pertains to adjustments to the U.S. capital loss resulting from the sale of the Company's eOne Film and TV business, for which the Company recorded a full valuation allowance as of December 28, 2025.
The movement in the deferred tax valuation allowance is as follows:

(In millions) 2025 2024
Balance, beginning of period
$ ( 412.5 ) $ ( 432.0 )
Provisions/charges to income ( 11.6 ) 19.8  
Amounts charged to other accounts
0.2   ( 2.5 )
Foreign currency impact ( 2.5 ) 2.2  
Balance, end of period
$ ( 426.4 ) $ ( 412.5 )

The Company’s net deferred income taxes are recorded in the Consolidated Balance Sheets as follows:

(In millions) 2025 2024
Other assets $ 286.8   $ 424.6  
Other liabilities ( 59.3 ) ( 66.7 )
Net deferred income taxes $ 227.5   $ 357.9  

The Company has significant cash needs outside the U.S. and continues to consistently monitor and analyze its global working capital and cash requirements. However, we intend to repatriate substantially all of our accumulated
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foreign earnings when appropriate. As of December 28, 2025, we have recorded $ 5.3  million of foreign withholding and U.S. state income tax liability. The Company has not finalized the timing of any actual cash distributions or the specific amounts and therefore we could still be subject to some additional foreign withholding taxes and U.S. state income taxes. We will record these additional tax effects, if any, in the period that we complete our analysis and are able to make a reasonable estimate.
A reconciliation of unrecognized tax benefits, excluding potential interest and penalties is as follows:

(In millions) 2025 2024 2023
Balance, beginning of period $ 36.1   $ 39.9   $ 77.8  
Gross increases in current period tax positions 2.9   3.6   3.8  
Gross increases in prior period tax positions 0.3   0.1   11.9  
Gross decrease from disposition —   —   ( 10.4 )
Gross decreases in prior period tax positions —   ( 1.6 ) ( 23.4 )
Decreases related to settlements with tax authorities —   ( 1.5 ) ( 8.4 )
Decreases from the expiration of statutes of limitations ( 1.6 ) ( 4.4 ) ( 11.4 )
Balance, end of period $ 37.7   $ 36.1   $ 39.9  

Unrecognized tax benefits are recorded within Other liabilities, Prepaid expenses and Other current assets, and Other assets in the Company's Consolidated Balance Sheets. If recognized, these tax benefits may have affected our income tax provision for fiscal years 2025, 2024, and 2023 by approximately $ 47.0 million, $ 44.0 million, and $ 46.0 million, respectively.
During 2025, 2024, and 2023, the Company recognized $ 1.8 million, $ 2.9 million, and $ 5.8 million, respectively, of potential interest and penalties, which are included as a component of Income tax expense (benefit) on the Consolidated Statements of Operations. As of December 28, 2025, December 29, 2024, and December 31, 2023, the Company had accrued potential interest and penalties of $ 9.1 million, $ 7.7 million, and $ 6.2 million, respectively.
The Company and its subsidiaries file income tax returns in the U.S. and various state and international jurisdictions. In the normal course of business, the Company is regularly audited by U.S. federal, state and local and international tax authorities in various tax jurisdictions. The Company is no longer subject to U.S. federal income tax examinations for years before 2017. With few exceptions, the Company is no longer subject to U.S. state or local and non-U.S. income tax examinations by tax authorities in its major jurisdictions for years before 2016. The Company is currently under income tax examination by the Internal Revenue Service for the tax years 2017 and 2018 and in several U.S. state and local and non-U.S. jurisdictions.
The amount of cash taxes paid, net of refunds, by the Company during 2025 is as follows:

(In millions) 2025
U.S. federal
$ 105.8  
U.S. state and local (1)
7.1  
Foreign
United Kingdom 35.3  
Mexico 17.7  
China 11.0  
Other foreign jurisdictions
19.9  
Total cash taxes paid, net of refunds $ 196.8  

(1) No single state or local jurisdiction accounts for more than 5% of the total income taxes paid.
We are subject to income and other taxes in the U.S. (federal and state) and foreign jurisdictions. Changes to these laws or regulations may impact our tax liabilities. On July 4, 2025, the One Big Beautiful Bill Act ("OBBBA") was signed into law with certain provisions effective in 2025 and other provisions becoming effective in 2026. The OBBBA provisions include the restoration of full expensing for domestic research and development expenses, reinstatement of accelerated depreciation on qualified capital expenditures, and modifications to the international tax framework, among other items. The OBBBA also provides for an election to accelerate the deduction of the remaining unamortized domestic research and development expenses capitalized previously. For fiscal year 2025,
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Notes to Consolidated Financial Statements — (Continued)

the primary impact of the OBBBA to the Company was the accelerated expensing of domestic research and development costs which decreased our income eligible for foreign-derived intangible income ("FDII"), reduced our deferred tax assets, and reduced our current income tax liability. Other OBBBA changes did not have a material impact on the Company's consolidated financial statements in the current year, we are currently assessing the impact of OBBBA on the consolidated financial statements for future periods.
Tax laws are regularly being re-examined and evaluated globally. The Organisation for Economic Co-operation and Development ("OECD") has a framework to implement a global minimum corporate tax of 15% for companies with global revenues and profits above certain thresholds (referred to as "Pillar 2"), effective for tax years beginning in 2024. Many non-U.S. jurisdictions have enacted legislation into their domestic laws to align with the OECD's Pillar 2 framework. On January 5, 2026, the OECD introduced new guidance including a "Side-by-Side Safe Harbor" for U.S. and other multinational companies where domestic and international tax systems meet certain requirements to coexist with Pillar 2. Under the new guidance, US-parented companies would be exempt from certain aspects of the global minimum tax regime. The package includes a permanent simplified effective tax rate safe harbor and a substance-based tax incentive safe harbor. Additionally, the package extends the transitional country-by-country reporting safe harbor through to 2027. The updated model rules will need to be incorporated into local tax legislation to become effective. We will continue to evaluate the impacts of Pillar 2 in our non-U.S. tax jurisdictions. The Pillar 2 rules did not have a material impact on the Company's financial statements for 2024 and 2025.

(14)     Capital Stock
The Company has a long history of increasing shareholder value through its share repurchase program. As part of this initiative, the Company's Board of Directors adopted numerous shares repurchase authorizations. In February 2026, the Company announced that its Board of Directors authorized the repurchase of up to $ 1.0  billion in Common Stock. This authorization replaces and supersedes all prior approved share repurchase authorization and has no expiration date. The Company has no obligation to repurchase shares under the authorization and the time, actual number, and the value of the shares which are repurchased will depend on a number of factors, including the price of the Company’s common stock. No shares were repurchased during 2025 and 2024.

(15)     Fair Value of Financial Instruments
The Company measures certain financial instruments at fair value. The fair value hierarchy consists of three levels:
• Level 1 fair values are based on quoted market prices in active markets for identical assets or liabilities that the entity has the ability to access;
• Level 2 fair values are those based on quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable data for substantially the full term of the assets or liabilities;
• Level 3 fair values are based on inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.
There have been no transfers between levels within the fair value hierarchy.
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Notes to Consolidated Financial Statements — (Continued)

As of December 28, 2025 and December 29, 2024, the Company had the following assets and liabilities measured at fair value in its Consolidated Balance Sheets:

Fair
Value Fair Value Measurements Using:
(In millions) Level 1 Level 2 Level 3
December 28, 2025
Assets:
Available-for-sale securities $ 106.0   $ 106.0   $ —   $ —  
Derivative financial instruments
2.0   —   2.0   —  
$ 108.0   $ 106.0   $ 2.0   $ —  
Liabilities:
Derivative financial instruments
$ 8.7   $ —   $ 8.7   $ —  

December 29, 2024
Assets:
Available-for-sale securities $ 0.6   $ 0.6   $ —   $ —  
Derivative financial instruments
9.7   —   9.7   —  
$ 10.3   $ 0.6   $ 9.7   $ —  
Liabilities:
Derivative financial instruments
$ 1.7   $ —   $ 1.7   $ —  

As of December 28, 2025, the Company held $ 106.0 million of available-for-sale securities, of which $ 105.4 million consisted of U.S. Treasury Bills. These investments are recorded at fair value within Short-term investments and Prepaid expenses and other current assets in the Company's Consolidated Balance Sheet, with an insignificant amount of unrealized gains and losses excluded from net income and deferred as components of Other comprehensive earnings (loss), net of related tax effects, until realized.
The Company’s derivatives primarily consist of foreign currency forward and option contracts. The Company uses current forward rates of the respective foreign currencies to measure the fair value of these contracts. There were no changes in these valuation techniques during 2025.