SEC Filing | Hasbro, Inc.

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has-20210627

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D. C. 20549

__________________

FORM 10-Q

__________________

(Mark One)


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 27, 2021


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission File Number 1-6682

__________________

HASBRO, INC.

(Exact name of registrant as specified in its charter)


Rhode Island		05-0155090
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

1027 Newport Avenue
Pawtucket,	Rhode Island	02861
(Address of Principal Executive Offices)		(Zip Code)

(401) 431-8697

Registrant's telephone number, including area code

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $0.50 par value per share	HAS	The NASDAQ Global Select Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes [x] No [ ]

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes [x] No [ ]

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.


Large accelerated filer	x	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [ ]

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No [x]

The number of shares of Common Stock, par value $.50 per share, outstanding as of July 26, 2021 was 137,683,075.

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements.

HASBRO, INC. AND SUBSIDIARIES

Consolidated Balance Sheets

(Millions of Dollars Except Share Data)

(Unaudited)


	June 27, 2021		June 28, 2020		December 27, 2020
ASSETS
Current assets
Cash and cash equivalents including restricted cash of $83.1 million, $71.9 million and $73.2 million	$	1,228.2	$	1,038.0	$	1,449.7
Accounts receivable, less allowance for doubtful accounts of $30.5 million, $28.0 million and $28.1 million	865.9		911.3		1,391.7
Inventories	499.6		564.2		395.6
Prepaid expenses and other current assets	543.2		672.2		609.6
Assets held for sale	479.5		—		—
Total current assets	3,616.4		3,185.7		3,846.6
Property, plant and equipment, less accumulated depreciation of $589.1 million, $528.2 million and $553.0 million	466.2		482.2		489.0
Other assets
Goodwill	3,420.8		3,666.0		3,691.7
Other intangible assets, net of accumulated amortization of $1,002.5 million, $855.0 million and $964.6 million	1,248.3		1,559.1		1,530.8
Other	1,350.5		1,329.1		1,260.2
Total other assets	6,019.6		6,554.2		6,482.7
Total assets	$	10,102.2	$	10,222.1	$	10,818.3
LIABILITIES, NONCONTROLLING INTERESTS AND SHAREHOLDERS' EQUITY
Current liabilities
Short-term borrowings	$	0.8	$	6.4	$	6.6
Current portion of long-term debt	189.6		378.6		432.6
Accounts payable	382.4		335.2		425.5
Accrued liabilities	1,396.5		1,261.4		1,538.6
Liabilities held for sale	76.3		—		—
Total current liabilities	2,045.6		1,981.6		2,403.3
Long-term debt	4,388.7		4,802.5		4,660.0
Other liabilities	753.0		771.7		793.9
Total liabilities	$	7,187.3	$	7,555.8	$	7,857.2
Redeemable noncontrolling interests	24.5		24.1		24.4
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 at June 27, 2021, June 28, 2020, and December 27, 2020	110.1		110.1		110.1
Additional paid-in capital	2,361.2		2,297.3		2,329.1
Retained earnings	4,110.3		4,064.8		4,204.2
Accumulated other comprehensive loss	(183.5)		(308.1)		(195.0)
Treasury stock, at cost; 82,617,426 shares at June 27, 2021; 83,264,365 shares at June 28, 2020; and 82,979,403 shares at December 27, 2020	(3,547.6)		(3,560.0)		(3,551.7)
Noncontrolling interests	39.9		38.1		40.0
Total shareholders' equity	2,890.4		2,642.2		2,936.7
Total liabilities, noncontrolling interests and shareholders' equity	$	10,102.2	$	10,222.1	$	10,818.3

See accompanying condensed notes to consolidated financial statements.

HASBRO, INC. AND SUBSIDIARIES

Consolidated Statements of Operations

(Millions of Dollars Except Per Share Data)

(Unaudited)


	Quarter Ended				Six Months Ended
	June 27, 2021		June 28, 2020		June 27, 2021		June 28, 2020
Net revenues	$	1,322.2	$	860.3	$	2,437.0	$	1,965.9
Costs and expenses:
Cost of sales	345.0		253.2		634.9		515.9
Program cost amortization	110.7		50.6		208.2		182.8
Royalties	111.5		97.4		220.4		210.2
Product development	87.2		58.4		149.0		112.2
Advertising	105.4		72.3		193.3		174.0
Amortization of intangibles	29.7		34.7		62.6		71.5
Loss on assets held for sale	101.8		—		101.8		—
Selling, distribution and administration	354.3		281.2		642.9		560.3
Acquisition and related costs	—		10.3		—		160.1
Total costs and expenses	1,245.6		858.1		2,213.1		1,987.0
Operating profit (loss)	76.6		2.2		223.9		(21.1)
Non-operating expense (income):
Interest expense	46.1		49.6		94.0		104.3
Interest income	(1.2)		(0.9)		(2.4)		(5.6)
Other income, net	(9.4)		(2.8)		(38.3)		(4.1)
Total non-operating expense, net	35.5		45.9		53.3		94.6
Earnings (loss) before income taxes	41.1		(43.7)		170.6		(115.7)
Income tax expense (benefit)	63.0		(10.8)		75.0		(14.9)
Net earnings (loss)	(21.9)		(32.9)		95.6		(100.8)
Net earnings attributable to noncontrolling interests	1.0		1.0		2.3		2.8
Net earnings (loss) attributable to Hasbro, Inc.	$	(22.9)	$	(33.9)	$	93.3	$	(103.6)

Net earnings (loss) per common share:
Basic	$	(0.17)	$	(0.25)	$	0.68	$	(0.75)
Diluted	$	(0.17)	$	(0.25)	$	0.68	$	(0.75)
Cash dividends declared per common share	$	0.68	$	0.68	$	1.36	$	1.36

See accompanying condensed notes to consolidated financial statements.

HASBRO, INC. AND SUBSIDIARIES

Consolidated Statements of Comprehensive Earnings (Loss)

(Millions of Dollars)

(Unaudited)


	Quarter Ended				Six Months Ended
	June 27, 2021		June 28, 2020		June 27, 2021		June 28, 2020
Net earnings (loss)	$	(21.9)	$	(32.9)	$	95.6	$	(100.8)
Other comprehensive earnings (losses):
Foreign currency translation adjustments, net of tax	24.0		(7.1)		7.9		(139.0)
Unrealized holding gains on available-for-sale securities, net of tax	0.1		2.5		0.2		2.1
Net (losses) gains on cash flow hedging activities, net of tax	(3.2)		(3.7)		2.4		21.3

Reclassifications to earnings, net of tax:
Net gains (losses) on cash flow hedging activities	1.8		(5.3)		0.6		(8.9)
Amortization of unrecognized pension and postretirement amounts	0.2		0.3		0.4		0.6

Total other comprehensive earnings (loss), net of tax	$	22.9	$	(13.3)	$	11.5	$	(123.9)
Total comprehensive earnings attributable to noncontrolling interests	1.0		1.0		2.3		2.8
Total comprehensive earnings (loss) attributable to Hasbro, Inc.	$	—	$	(47.2)	$	104.8	$	(227.5)

See accompanying condensed notes to consolidated financial statements.

HASBRO, INC. AND SUBSIDIARIES

Consolidated Statements of Cash Flows

(Millions of Dollars)

(Unaudited)


	Six Months Ended
	June 27, 2021		June 28, 2020
Cash flows from operating activities:
Net earnings (loss)	$	95.6	$	(100.8)
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation of plant and equipment	67.6		56.6
Amortization of intangibles	62.6		71.5
Asset impairments	—		40.9
Loss on assets held for sale	101.8		—
Program cost amortization	208.2		182.8
Deferred income taxes	43.6		(11.1)
Stock-based compensation	37.1		26.1

Other non-cash items	0.2		—
Change in operating assets and liabilities net of acquired balances:
Decrease in accounts receivable	533.9		722.0
Increase in inventories	(109.5)		(125.4)
Decrease (increase) in prepaid expenses and other current assets	38.8		(40.2)
Program spend, net	(308.3)		(220.4)
Decrease in accounts payable and accrued liabilities	(169.3)		(344.4)
Change in net deemed repatriation tax	(18.4)		—
Other	(6.8)		0.6
Net cash provided by operating activities	577.1		258.2
Cash flows from investing activities:
Additions to property, plant and equipment	(63.1)		(64.0)
Acquisitions, net of cash acquired	—		(4,403.9)
Other	(3.2)		13.1
Net cash utilized by investing activities	(66.3)		(4,454.8)
Cash flows from financing activities:
Proceeds from borrowings with maturity greater than three months	114.7		1,023.5
Repayments of borrowings with maturity greater than three months	(635.0)		(98.2)
Net repayments of other short-term borrowings	(6.3)		(4.5)

Stock-based compensation transactions	9.4		1.8
Dividends paid	(187.5)		(186.2)
Payments related to tax withholding for share-based compensation	(9.5)		(5.7)
Redemption of equity instruments	—		(47.4)


Other	(4.2)		(4.8)
Net cash (utilized) provided by financing activities	(718.4)		678.5
Effect of exchange rate changes on cash	4.3		(24.4)
Net decrease in cash, cash equivalents and restricted cash	(203.3)		(3,542.5)
Net change due to cash classified as held for sale	(18.2)		—
Net decrease in cash, cash equivalents and restricted cash	(221.5)		(3,542.5)
Cash, cash equivalents and restricted cash at beginning of year	1,449.7		4,580.4
Cash, cash equivalents and restricted cash at end of period	$	1,228.2	$	1,037.9

Supplemental information
Cash paid during the period for:
Interest	$	90.2	$	81.5
Income taxes	$	70.8	$	30.4

See accompanying condensed notes to consolidated financial statements.

HASBRO, INC. AND SUBSIDIARIES

Consolidated Statements of Shareholders' Equity and Redeemable Noncontrolling Interests

(Millions of Dollars)

(Unaudited)


	Three Months Ended June 27, 2021
	Common Stock		Additional Paid-in Capital	Retained Earnings	Accumulated Other Comprehensive Loss	Treasury Stock	Noncontrolling Interests	Total Shareholders' Equity		Redeemable Noncontrolling Interests
Balance, March 28, 2021	$	110.1	2,339.6	4,226.8	(206.4)	(3,550.6)	40.4	$	2,959.9	$	24.0

Net earnings (loss) attributable to Hasbro, Inc.	—		—	(22.9)	—	—	—	(22.9)		—
Net earnings attributable to noncontrolling interests	—		—	—	—	—	0.7	0.7		0.3

Other comprehensive earnings	—		—	—	22.9	—	—	22.9		—
Stock-based compensation transactions	—		2.6	—	—	1.9	—	4.5		—

Stock-based compensation expense	—		19.3	—	—	1.1	—	20.4		—
Dividends declared	—		—	(93.6)	—	—	—	(93.6)		—
Distributions paid to noncontrolling owners and other foreign exchange	—		(0.3)	—	—	—	(1.2)	(1.5)		0.2
Balance, June 27, 2021	$	110.1	2,361.2	4,110.3	(183.5)	(3,547.6)	39.9	$	2,890.4	$	24.5

	Three Months Ended June 28, 2020
	Common Stock		Additional Paid-in Capital	Retained Earnings	Accumulated Other Comprehensive Loss	Treasury Stock	Noncontrolling Interests	Total Shareholders' Equity		Redeemable Noncontrolling Interests
Balance, March 29, 2020	$	110.1	2,282.4	4,191.8	(294.8)	(3,560.3)	35.3	$	2,764.5	$	26.0
Noncontrolling interests related to acquisition of Entertainment One Ltd.	—		—	—	—	—	(1.4)	(1.4)		2.6
Net loss attributable to Hasbro, Inc.	—		—	(33.9)	—	—	—	(33.9)		—
Net earnings (loss) attributable to noncontrolling interests	—		—	—	—	—	1.0	1.0		—
Other comprehensive loss	—		—	—	(13.3)	—	—	(13.3)		—
Stock-based compensation transactions	—		(0.3)	—	—	—	—	(0.3)		—

Stock-based compensation expense	—		15.2	—	—	0.3	—	15.5		—
Dividends declared	—		—	(93.1)	—	—	—	(93.1)		—
Distributions paid to noncontrolling owners and other foreign exchange	—		—	—	—	—	3.2	3.2		(4.5)
Balance, June 28, 2020	$	110.1	2,297.3	4,064.8	(308.1)	(3,560.0)	38.1	$	2,642.2	$	24.1

HASBRO, INC. AND SUBSIDIARIES

Consolidated Statements of Shareholders' Equity and Redeemable Noncontrolling Interests

(Millions of Dollars)

(Unaudited)


	Six Months Ended June 27, 2021
	Common Stock		Additional Paid-in Capital	Retained Earnings	Accumulated Other Comprehensive Loss	Treasury Stock	Noncontrolling Interests	Total Shareholders' Equity		Redeemable Noncontrolling Interests
Balance, December 27, 2020	$	110.1	2,329.1	4,204.2	(195.0)	(3,551.7)	40.0	$	2,936.7	$	24.4

Net earnings attributable to Hasbro, Inc.	—		—	93.3	—	—	—	93.3
Net earnings attributable to noncontrolling interests	—		—	—	—	—	2.0	2.0		0.3

Other comprehensive earnings	—		—	—	11.5	—	—	11.5		—
Stock-based compensation transactions	—		(3.2)	—	—	3.0	—	(0.2)		—

Stock-based compensation expense	—		36.0	—	—	1.1	—	37.1		—
Dividends declared	—		—	(187.2)	—	—	—	(187.2)		—
Distributions paid to noncontrolling owners and other foreign exchange	—		(0.7)	—	—	—	(2.1)	(2.8)		(0.2)
Balance, June 27, 2021	$	110.1	2,361.2	4,110.3	(183.5)	(3,547.6)	39.9	$	2,890.4	$	24.5

	Six Months Ended June 28, 2020
	Common Stock		Additional Paid-in Capital	Retained Earnings	Accumulated Other Comprehensive Loss	Treasury Stock	Noncontrolling Interests	Total Shareholders' Equity		Redeemable Noncontrolling Interests
Balance, December 29, 2019	$	110.1	2,275.7	4,354.6	(184.2)	(3,560.7)	—	$	2,995.5	$	—
Noncontrolling interests related to acquisition of Entertainment One Ltd.	—		—	—	—	—	38.6	38.6		26.2
Net earnings (loss) attributable to Hasbro, Inc.	—		—	(103.6)	—	—	—	(103.6)		—
Net earnings (loss) attributable to noncontrolling interests	—		—	—	—	—	3.0	3.0		(0.1)
Other comprehensive loss	—		—	—	(123.9)	—	—	(123.9)		—
Stock-based compensation transactions	—		(4.2)	—	—	0.4	—	(3.8)		—
Stock-based compensation expense	—		25.8	—	—	0.3	—	26.1		—
Dividends declared	—		—	(186.2)	—	—	—	(186.2)		—
Distributions paid to noncontrolling owners and other foreign exchange	—		—	—	—	—	(3.5)	(3.5)		(2.0)
Balance, June 28, 2020	$	110.1	2,297.3	4,064.8	(308.1)	(3,560.0)	38.1	$	2,642.2	$	24.1

See accompanying condensed notes to consolidated financial statements.

HASBRO, INC. AND SUBSIDIARIES

Condensed Notes to Consolidated Financial Statements

(Millions of Dollars and Shares Except Per Share Data)

(Unaudited)

(1) Basis of Presentation

In the opinion of management, the accompanying unaudited interim consolidated financial statements contain all normal and recurring adjustments necessary to present fairly the consolidated financial position of Hasbro, Inc. and all majority-owned subsidiaries ("Hasbro" or the "Company") as of June 27, 2021 and June 28, 2020, and the results of its operations and cash flows and shareholders' equity for the periods then ended in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP"). The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and notes thereto. Actual results could differ from those estimates.

The quarters ended June 27, 2021 and June 28, 2020 were each 13-week periods. The six-month periods ended June 27, 2021 and June 28, 2020 were each 26-week periods.

The results of operations for the quarter ended June 27, 2021 are not necessarily indicative of results to be expected for the full year 2021, nor were those of the comparable 2020 period representative of those actually experienced for the full year 2020.

Segment Realignment

Beginning with the first quarter of 2021, the Company realigned its financial reporting segments and business units, in order to align its reportable segments more closely with its current business structure. Reclassifications of certain prior year financial information has been made to conform to the current-year presentation. None of the changes impact the Company's previously reported consolidated net revenue, operating profits (losses), net earnings (losses) or net earnings (losses) per share. See Note 14 for more information on the Company’s 2021 segment realignment.

Legal Settlement

During the first quarter of 2021, the Company realized a gain of $25.6 million from a legal settlement related to a dispute associated with historical Entertainment One Ltd. ("eOne") foreign exchange hedging activities. The gain is included in other income, net within the Company's consolidated financial statements, included in Part I of this Form 10-Q.

Significant Accounting Policies

The Company's significant accounting policies are summarized in Note 1 to the consolidated financial statements included in the Company's Form 10-K for the year ended December 27, 2020.

These consolidated financial statements have been prepared without audit, pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC"). Certain information and disclosures normally included in the consolidated financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations. The Company filed with the SEC audited consolidated financial statements for the fiscal year ended December 27, 2020 in its Annual Report on Form 10-K ("2020 Form 10-K"), which includes all such information and disclosures and, accordingly, should be read in conjunction with the financial information included herein.

Recently Adopted Accounting Standards

In August 2018, the FASB issued Accounting Standards Update No. 2018-14 (ASU 2018-14) Compensation – Retirement Benefits – Defined Benefit Plans – General (Subtopic 715-20)- Disclosure Framework – Changes to the Disclosure Requirements for Defined Benefit Plans. The amendments in this update modify the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. For public companies, this standard is effective for annual reporting periods beginning after December 15, 2020, and early adoption is permitted. The Company adopted the standard in the first quarter of 2021 and the adoption of the standard did not have a material impact on its consolidated financial statements.

In December 2019, the FASB issued Accounting Standards Update No. 2019-12 (ASU 2019-12), Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. The amendments in this update remove certain exceptions for performing intra-period tax allocations, recognizing deferred taxes for investments, and calculating income taxes in interim periods. The guidance also simplifies the accounting for franchise taxes, transactions that result in a step-up in the tax basis of goodwill, and the effect of enacted changes in tax laws or rates in interim periods. ASU 2019-12 is effective for fiscal years beginning after

Condensed Notes to Consolidated Financial Statements

(Millions of Dollars and Shares Except Per Share Data)

December 15, 2020 and early adoption is permitted. The Company adopted the standard in the first quarter of 2021 and the adoption of the standard did not have a material impact on its consolidated financial statements.

Issued Accounting Pronouncements

In March of 2020, the FASB issued Accounting Standards Update No. 2020-04 (ASU 2020-04) Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. The amendments in this update provide optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships, and other transactions, for a limited period of time, to ease the potential burden of recognizing the effects of reference rate reform on financial reporting. The amendments in this update apply to contracts, hedging relationships and other transactions that reference the London Inter-Bank Offered Rate ("LIBOR") or another reference rate expected to be discontinued due to the global transition away from LIBOR and certain other interbank offered rates. An entity may elect to apply the amendments provided by this update beginning March 12, 2020 through December 31, 2022. The Company does not currently expect the change from LIBOR to an alternate rate to have a material impact on its consolidated financial statements, and is continuing to evaluate the standard's potential impact to its consolidated financial statements.

(2) Revenue Recognition

Revenue Recognition

Revenue is recognized when control of the promised goods or content is transferred to the customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for transferring those goods or content. 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.

Contract Assets and Liabilities

Within our Consumer Products and Entertainment segments the Company may receive royalty payments from licensees in advance of the licensees’ subsequent sales to their customers, or in advance of the Company’s performance obligation being satisfied. In addition, the Company may receive payments from its digital gaming business in advance of the recognition of the revenues. The Company defers revenues on these advanced payments until its performance obligation is satisfied and records the aggregate deferred revenues as contract liabilities. The current portion of contract liabilities was recorded within Accrued Liabilities and the long-term portion was recorded as Other Non-current Liabilities in the Company’s consolidated balance sheets. The Company records contract assets in the case of (1) minimum guarantees, which are recognized ratably over the term of the respective license period, being recognized in advance of contractual invoicing, and (2) film and television distribution revenue recorded for content delivered but for which payment will occur over the license term. The current portion of contract assets was recorded in Prepaid Expenses and Other Current Assets, respectively, and the long-term portion was recorded as Other Long-Term Assets.

At June 27, 2021, June 28, 2020 and December 27, 2020 the Company had the following contract assets and liabilities in its consolidated balance sheets:


	June 27, 2021		June 28, 2020		December 27, 2020
Assets
Contract assets - current	$	257.9	$	252.9	$	284.4
Contract assets - long term	72.6		108.5		77.0
Total (1)	$	330.5	$	361.4	$	361.4

Liabilities
Contract liabilities - current	$	174.7	$	141.7	$	161.0
Contract liabilities - long term	21.3		23.5		18.2
Total (1)	$	196.0	$	165.2	$	179.2

(1) For the six-month period ended June 27, 2021, contract assets of the eOne Music business in the amount of $29.0 million, which were previously classified under Prepaid Expenses and Other Current Assets and Other Long-Term Assets, have been transferred to Assets Held for Sale. Contract liabilities of the eOne Music business in the amount of $4.0 million, which were previously classified under Accrued Liabilities and Other Non-current Liabilities, have been transferred to Liabilities Held for Sale. For additional information, see Note 15.

For the six months ended June 27, 2021, the Company collected $80.8 million of the contract assets and recognized $77.6 million of contract liabilities that were included in the December 27, 2020 balances.

Condensed Notes to Consolidated Financial Statements

(Millions of Dollars and Shares Except Per Share Data)

Unsatisfied performance obligations relate primarily to in-production television content to be delivered in the future under existing agreements with partnering content providers such as broadcasters, distributors, television networks and subscription video on demand services. As of June 27, 2021, unrecognized revenue attributable to unsatisfied performance obligations expected to be recognized in the future was $512.2 million. Of this amount, we expect to recognize approximately $363.5 million in the remainder of 2021, $122.9 million in 2022, and $19.8 million in 2023. These amounts include only fixed consideration.

Disaggregation of revenues

The Company disaggregates its revenues from contracts with customers by reportable segment: Consumer Products, Entertainment, and Wizards of the Coast & Digital Gaming. The Company further disaggregates revenues within its Consumer Products segment by major geographic region: North America, Europe, Latin America, and Asia Pacific; and within its Entertainment segment by category: Film & TV, Family Brands, and Music. Finally, the Company disaggregates its revenues by brand portfolio into five brand categories: Franchise Brands, Partner Brands, Hasbro Gaming, Emerging Brands, and Entertainment. We believe these collectively depict how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors. See Note 14 for further information.

(3) Business Combination

On December 30, 2019, the Company completed its acquisition of Entertainment One Ltd. ("eOne"), a global independent studio that specializes in the development, acquisition, production, financing, distribution and sales of entertainment content. The aggregate purchase price of $4.6 billion was comprised of $3.8 billion of cash consideration for shares outstanding and $0.8 billion related to the redemption of eOne's outstanding senior secured notes and the payoff of eOne's revolving credit facility. The Company financed the acquisition with proceeds from the following debt and equity financings: (1) the issuance of senior unsecured notes in an aggregate principal amount of $2.4 billion in November 2019, (2) the issuance of 10.6 million shares of common stock at a public offering price of $95.00 per share in November 2019 (resulting in net proceeds of $975.2 million) and (3) $1.0 billion in term loans provided by a term loan agreement, which were borrowed on the date of closing. See Note 8 for further discussion of the issuance of the senior unsecured notes and term loan agreement.

The addition of eOne accelerates the Company's brand blueprint strategy by expanding our brand portfolio with eOne's global preschool brands, adding proven TV and film expertise and executive leadership as well as by enhancing brand building capabilities and our storytelling capabilities to strengthen Hasbro brands.

eOne's results of operations and financial position have been included in the Company's consolidated financial statements and accompanying condensed footnotes since the date of the acquisition.

The acquisition was accounted for as a business combination under FASB Accounting Standards Codification Topic 805, Business Combinations (“Topic 805”). Pursuant to Topic 805, the Company allocated the eOne purchase price to tangible and identifiable intangible assets acquired and liabilities assumed based on their estimated fair values as of the acquisition date, December 30, 2019. The excess of the purchase price over those fair values was recorded to goodwill.

The following table summarizes the intangible assets acquired as part of the eOne Acquisition:


	Weighted Average
Intangible assets acquired	Amortization Period	Fair Value
Established brands	10 years	$	615.0
Trade names	15 years	100.0
Artist relationships	14 years	100.0
Music catalogs	12 years	120.0
Other	8 years	121.0
Total intangible assets acquired	11 years	$	1,056.0

Condensed Notes to Consolidated Financial Statements

(Millions of Dollars and Shares Except Per Share Data)

Intangible assets consist of intellectual property associated with established brands, eOne artist relationships, eOne music catalogs and trademarks and tradenames with estimated useful lives ranging from 7 to 15 years, determined based on when the related cash flows are expected to be realized. The fair value of the intangible assets acquired was determined based on the estimated future cash flows to be generated from the acquired assets, considering assumptions related to contract renewal rates and estimated brand franchise revenue growth. eOne acquired intangible asset amortization expense for the quarter and six months ended June 27, 2021 were $21.8 million and $46.7 million, respectively. For the quarter and six months ended June 28, 2020, eOne acquired intangible asset amortization expense was $22.6 million and $47.6 million, respectively.

Deferred tax liabilities within other liabilities were adjusted to record the deferred tax impact of purchase price accounting adjustments, primarily related to intangible assets.

Investments in productions and content, or IIP and IIC, were valued at $564.8 million on the acquisition date, and include the fair value of completed films and television programs which have been produced by eOne or for which eOne has acquired distribution rights, as well as the fair value of films and television programs in production, pre-production and development. For films and television programs, fair values were estimated based on forecasted cash flows, discounted to present value. For titles less than 3 years old and titles in development, the content assets will be amortized using the individual film forecast method, wherein the amortization will phase to the revenues incurred. For titles over 3 years old, the estimated useful life is 10 years, and will be amortized straight-line over that period.

Goodwill of $3.2 billion represents the excess of the purchase price over the fair value of the underlying tangible and identifiable intangible assets acquired and liabilities assumed. The acquisition goodwill represents the value placed on the combined company’s brand building capabilities, our storytelling capabilities and franchise economics in TV, film and other mediums to strengthen Hasbro brands. In addition, the acquisition goodwill depicts added benefits of long-term profitable growth through in-sourcing toy and game production for the acquired preschool brands and cost-synergies, as well as future revenue growth opportunities. The goodwill recorded as part of this acquisition was included within the Entertainment and Consumer Products segments for the year ended December 27, 2020. The goodwill associated with the acquisition will not be amortized for financial reporting purposes and will not be deductible for federal tax purposes. See Note 5 for information on the Company's goodwill reallocation during the first quarter of 2021 and the goodwill impairment charge due to the assets held for sale relating to the eOne music business during the second quarter of 2021.

For the quarter and six months ended June 28, 2020, the Company incurred $10.3 million and $160.1 million, respectively, of charges related to the eOne Acquisition, which were recorded in acquisition and related costs within the Company’s Consolidated Statement of Operations. Included within the Entertainment segment results for the six months ended June 28, 2020 were $98.5 million of acquisition and related charges. The remaining charges were included in Corporate and Other.

The acquisition and related costs for the quarter and six months ended June 28, 2020 consisted of the following:

•Acquisition and integration costs of $4.0 million and $99.7 million for the quarter and six months ended June 28, 2020, respectively, including, for the six months ended June 28, 2020, $47.4 million of expense associated with the acceleration of eOne stock-based compensation and $38.2 million of advisor fees settled at the closing of the acquisition, as well as integration costs; and

•Restructuring and related costs of $6.3 million and $60.4 million for the quarter and six months ended June 28, 2020, respectively, including severance and retention costs for the quarter and six months ended June 28, 2020 of $6.3 million and $19.5 million, respectively, as well as $40.9 million in impairment charges for certain definite-lived intangible and production assets for the six months ended June 28, 2020. The impairment charges of $40.9 million were driven by the change in strategy for the combined company’s entertainment assets.

Condensed Notes to Consolidated Financial Statements

(Millions of Dollars and Shares Except Per Share Data)

(4) Earnings Per Share

Net earnings (loss) per share data for the quarters and six months ended June 27, 2021 and June 28, 2020 were computed as follows:


	2021			2020
Quarter	Basic		Diluted	Basic		Diluted
Net loss attributable to Hasbro, Inc.	$	(22.9)	(22.9)	$	(33.9)	(33.9)

Average shares outstanding	137.8		137.8	137.2		137.2
Effect of dilutive securities:
Options and other share-based awards	—		—	—		—
Equivalent Shares	137.8		137.8	137.2		137.2

Net earnings loss attributable to Hasbro, Inc. per common share	$	(0.17)	(0.17)	$	(0.25)	(0.25)


	2021			2020
Six Months	Basic		Diluted	Basic		Diluted
Net earnings (loss) attributable to Hasbro, Inc.	$	93.3	93.3	$	(103.6)	(103.6)

Average shares outstanding	137.8		137.8	137.2		137.2
Effect of dilutive securities:
Options and other share-based awards	—		0.4	—		—
Equivalent Shares